What Opportunities Await CARBO Ceramics Inc. (CRR) Investors?

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The company should also benefit from the boatloads, err, carrier-loads, of liquefied natural gas, or LNG, that is slated for export in the coming years. Cheniere Energy, Inc. (NYSEMKT:LNG) currently wields the one of the only approved export terminal and expects to export up to 15 million metric tons of LNG per year. Its Sabine Pass facility can also accommodate additional infrastructure, allowing a 50% increase in production. Determining what America should do with its abundant natural gas will not be easy, but expect several more nods for export facilities in the next few years. A steady stream of exports will significantly boost the need for production, thus increasing the need for CARBO’s products.

Foolish bottom line

There are plenty of examples of successful piggyback investments throughout history, such as Levi jeans during the gold rush and New York City textiles during the immigration waves of the 19th and 20th centuries. Proppants may not be as grandiose as those great investments, but investors may want to take notice of the massive amounts of cash pouring into the coffers of manufacturers. Soaring profits should help speed up diversification into new businesses for companies such as CARBO, which are still very dependent on drilling activity.

The article What Opportunities Await CARBO Ceramics Investors? originally appeared on Fool.com and is written by Maxx Chatsko.

Fool contributor Maxx Chatsko has no position in any stocks mentioned. Check out his personal portfolio, his CAPS page, or follow him on Twitter @BlacknGoldFool to keep up with his writing on energy, bioprocessing, and emerging technologies.The Motley Fool recommends Seadrill. The Motley Fool owns shares of HI-CRUSH PARTNERS LP (NYSE:HCLP) UNIT LTD PARTNER INTS, Seadrill, and U S SILICA HLDGS INC COM USD0.01.

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