Hi-Crush reported third quarter results. Net income for the quarter was $37.3 million. The partnership reported earnings before interest, taxes and depreciation and amortization (EBITDA) of $43.9 million for the third quarter of 2014.
"The third quarter was filled with important milestones, as we set records for revenues, sales volumes, EBITDA, earnings and we added production capacity, contracted more committed volumes and expanded silo storage in our distribution network," said Robert E. Rasmus, co-chief executive officer of Hi-Crush. "Our premium raw white sand, coupled with our extensive logistics offering, continues to drive customers to Hi-Crush as we have positioned ourselves to capture the growth in demand through our Sponsor's Whitehall facility and its development of a fourth production facility."
Revenues for the quarter ended Sept. 30, 2014, totaled $102 million on sales of 1.2 million tons of frac sand, which includes volumes sold at production facilities and distribution facilities. Approximately 91 percent of the volumes sold were under long-term fixed price contracts.
"The third quarter was another quarter of strong operational performance," said James M. Whipkey, co-chief executive officer of Hi-Crush. "We shipped the first unit train of sand from our Sponsor's Whitehall facility and announced that our Sponsor is in the permitting process for the development of a fourth Northern White frac sand production facility. We have 6.6 million tons of sand already contracted for 2015, and our operating costs remain the lowest in the sector. Demand for our Northern White sand remains robust and we continue to position ourselves to fulfill the growing needs of our customers."
Production cost for sand produced and delivered from the Wyeville and Augusta facilities was $13.89 per ton during the quarter. Of the 1.2 million tons sold, approximately 1.0 million tons were produced and delivered from the Partnership's facilities, with the remainder being purchased from the Sponsor's Whitehall facility or from third parties.