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Hi-Crush Reports Record 2014 Results


Hi-Crush Partners reported record fourth quarter and full year 2014 results. Net income for the quarter was $38.4 million. The company reported earnings before interest, taxes and depreciation and amortization of $44.6 million for the fourth quarter of 2014.

“2014 was an exceptional year for Hi-Crush,” said James M. Whipkey, co-chief executive officer of Hi-Crush. “We nearly doubled our produced volumes. We further reduced our already low production cost per ton, and we increased our distributable cash flow by over 60 percent. All of these factors allowed Hi-Crush to increase its distribution by more than 32 percent during the year, placing us near the top of the entire MLP universe in this parameter. In addition, over the course of 2014 we solidified our top-tier position in the industry by providing our customers with premier white sand, delivering a full suite of services and best-in-class logistics.”

Revenues for the quarter ended Dec. 31, 2014, totaled $130.9 million on sales of 1.5 million tons of frac sand sold, and transload services. Approximately 90 percent of the volumes sold were under long-term fixed price contracts.

Revenues for the year ended Dec. 31, 2014, totaled $386.5 million on 4.6 million tons of frac sand sold, and transload services, compared to revenues of $179.0 million on 2.5 million tons of frac sand sold for the year ended Dec. 31, 2013.

“While there are headwinds entering 2015, the industry remains focused on efficiency, quality and execution,” said Robert E. Rasmus, co-chief executive officer of Hi-Crush. “Over 88 percent of our and our sponsor's 2015 production, or 6.6 million tons, is committed under long term take-or-pay contracts. While the volatility in the market continues, we are confident in the strength of our balance sheet, the quality of our assets and the solid foundation of our relationships. We continue to be the low-cost leader in the sector and we are prepared for the challenges and looking forward to the opportunities in 2015.”

Production cost for sand produced and delivered from the Wyeville and Augusta facilities was $15.72 per ton during the quarter. Of the 1.5 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.