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Hi-Crush Reports Year-End Results


Hi-Crush Partners reported fourth quarter results. Net income was $18.1 million, or $0.63 per limited partner unit, for the fourth quarter of 2013 and $58.6 million, or $2.08 per limited partner unit, for the year ended Dec. 31, 2013.

The partnership reported earnings before interest, taxes and depreciation and amortization of $22.1 million for the fourth quarter of 2013 and $69.2 million for the year ended Dec. 31, 2013. The Partnership’s distributable cash flow for the fourth quarter of 2013 of $20.4 million corresponds to distribution coverage of 1.38x the total $14.7 million in distributions to be paid on Feb. 14, 2014.

“Hi-Crush generated exceptional results for the fourth quarter and full year 2013,” said Robert E. Rasmus, co-chief executive officer of Hi-Crush. “Our distribution network delivered strong results through the second half of the year as demand for Hi-Crush sand and related services accelerated. Our Wyeville plant operated above nameplate capacity and we continue to be the low-cost leader in the sector. We see demand continuing to grow in 2014 with increased usage of sand and are ready to capitalize on opportunities with our integrated services business model.”

Revenues for the quarter ended Dec. 31, 2013, totaled $51.5 million on sales of 588,471 tons of frac sand and transload services, compared to $16.2 million on sales of 248,158 of frac sand for the quarter ended Dec. 31, 2012. Revenues for the year ended Dec. 31, 2013, were $141.7 million comprised of 1,849,075 tons of frac sand sold, and transload services, compared to $75.6 million on 1,165,818 tons of frac sand sold for the year ended Dec. 31, 2012 (predecessor and successor periods combined).

The average selling price of frac sand, reflecting the mix between pricing for delivery at the production facility and at the destination, was $74 per ton in the fourth quarter of 2013 compared to $65 per ton for delivery at the production facility only in the same period in 2012. The production cost for sand produced and delivered from the Wyeville facility was $12.50 and $15.49 per ton during the quarters ended Dec. 31, 2013, and 2012, respectively.

“In 2013, we successfully expanded and diversified the Hi-Crush business model from a pure proppant producer to an integrated producer, transporter, marketer and distributor of high-quality sand,” said James M. Whipkey, co-chief executive officer of Hi-Crush. “As a result, we were able to significantly increase our services offering, expand our volumes and our revenues, and we continue to expect to deliver on our guidance for low double-digit annual distribution growth. We are well-positioned to execute on our growth objectives for 2014.”

On Jan. 16, 2014, Hi-Crush declared its fourth quarter cash distribution of $0.51 per unit for all common and subordinated units, or $2.04 on an annualized basis. This amount corresponds to a 7 percent increase from the minimum quarterly cash distribution of $0.475 per unit, and will be paid on Feb. 14, 2014 to all common and subordinated unit holders of record on Jan. 31, 2014.