Hi-Crush Rolls Along in Third Quarter
- Published: Friday, 15 November 2013 17:26
Hi-Crush reported net income of $15.0 million, or $0.52 per limited partner unit, for the third quarter of 2013 and $40.5 million, or $1.45 per limited partner unit, for the nine months ended Sept. 30, 2013.
Reported earnings before interest, taxes and depreciation and amortization of $19.2 million for the third quarter of 2013 and $47.0 million for the nine months ended Sept. 30, 2013. EBITDA was impacted by an estimated $1.5 million due to delays in volumes taken by contract customers at the end of the quarter, as well as $1.1 million of litigation costs and non-cash inventory costs related to the D&I acquisition that are not expected to reoccur in the fourth quarter.
“We are seeing the benefits of the D&I acquisition flow through our results as we sold more than 530,000 tons of frac sand in the third quarter and increased the number of customers we are serving to more than 25. We were also excited to announce the amicable settlement of the Baker Hughes litigation in early October and, in connection with the settlement, the entry into a six-year supply agreement with Baker Hughes," said James M. Whipkey, co-chief executive officer of Hi-Crush. “During the quarter, our Wyeville plant operated at close to nameplate capacity and began producing 100-mesh sand. With our distribution network, we see many opportunities ahead to increase volumes across our consolidated company.”
Revenues for the quarter ended Sept. 30, 2013, totaled $43.5 million on sales of 533,239 tons of frac sand and transload services. The average selling price of frac sand, reflecting the mix between pricing for delivery at the production facility and at the destination, was $73 per ton.
“New technology continues to drive demand for high-quality proppant even higher,” said Robert E. Rasmus, co-chief executive officer of Hi-Crush. “With our low-cost operations, strategic niche in the Marcellus and Utica, and broad logistics capabilities, we are well-positioned to continue to increase our market share.”