Hi-Crush Partners LP (NYSE:HCLP), "Hi-Crush" or the "Partnership",
today reported third quarter 2017 results. Revenues for the
third quarter of 2017 totaled $167.6 million on sales of 2,456,195
tons of frac sand. This compares to $135.2 million of
revenues on sales of 2,112,516 tons of frac sand in the second
quarter of 2017. The limited partners' interest in net income
was $29.8 million for the third quarter of 2017, resulting in $0.33
basic and $0.32 diluted earnings per limited partner unit.
Earnings before interest, taxes, depreciation
and amortization ("EBITDA") for the third quarter of 2017 was $41.8
million, compared to $26.8 million for the second quarter of
2017. EBITDA adjusted for earnings from equity method
investments ("Adjusted EBITDA") was $41.7 million in the third
quarter of 2017, compared to $26.5 million for the second quarter
of 2017. Distributable cash flow attributable to the limited
partners for the third quarter of 2017 was $37.5 million compared
to $22.9 million for the second quarter of 2017.
"The impressive third quarter performance we
announced today is a direct result of our Mine. Move. Manage.
operating strategy, and is underpinned by ongoing strength in oil
and gas completions activity in the U.S.," said Robert E. Rasmus,
Chief Executive Officer of Hi-Crush. "Over the last several months,
we completed several critical projects, including the construction
and commencement of operations at our Kermit facility and Pecos
terminal in the Permian Basin. These projects enhance and
extend our ability to service customers through our growing and
integrated production and logistics network. Our sales volumes
improved to approximately 2.5 million tons for the third quarter,
in-line with guidance, and marking the highest quarterly volumes
recorded in Hi-Crush history. We remain relentlessly focused
on execution, and our results are the outcome of our team’s efforts
and success. Our execution, combined with our capital return
strategy to our unitholders, is driving significant value for
Hi-Crush and its unitholders."
Third Quarter 2017 Results
Revenues for the third quarter of 2017 increased
due to the sequential increase in sales volumes, combined with
generally higher pricing. Approximately 61% of quarterly
volumes were sold in-basin for the third quarter of 2017, compared
to 64% in the second quarter of 2017 and 47% in the third quarter
of 2016. The slight sequential decrease of in-basin sales
percentage reflects the start of operations and volumes sold at the
mine gate from the Kermit facility, while the increase as compared
to the prior year reflects the change in mix of customer demand
delivery point. Average sales price was $68 per ton in the
third quarter of 2017, compared to $64 per ton in the second
quarter of 2017 and $43 per ton in the third quarter of 2016, as
sales prices generally improved due to continued increases in frac
sand demand in excess of available supply, particularly for fine
mesh sand.
Contribution margin was $19.39 per ton in the
third quarter of 2017, compared to $16.73 per ton in the second
quarter of 2017. The 16% increase in contribution margin per
ton was primarily the result of increased pricing, as well as fixed
cost absorption from higher sales volumes and increased asset
utilization. This increase in contribution margin per ton was
partially offset by the impact of a one-time, non-cash charge of
$2.3 million, or approximately $0.90 per ton, related to the use of
certain coarse material from inventory to augment the reclamation
process.
"Thanks to our team’s collective and relentless
focus on execution, as well as the continued improvement in demand
for frac sand, we realized significant growth across the entirety
of our operations, accentuated by a 57% sequential increase in
Adjusted EBITDA, 16% growth in volumes sold, and the generation of
attractive distributable cash flow," said Laura C. Fulton, Chief
Financial Officer of Hi-Crush. "This improvement in cash
generation, combined with our outlook for continued growth, has
allowed us to resume our capital return program. We believe
our balanced approach to capital return, comprised of quarterly
cash distributions as well as a unit buyback program of up to $100
million, maximizes value and growth to unitholders over the near
and long-term."
Kermit Facility
As announced previously, the Partnership
commenced operations at its Kermit facility in July 2017. The
facility is the first to produce and sell in-basin frac sand in the
Permian, and has an annual production capacity of 3.0 million
tons. Of this nameplate capacity, 90% is currently contracted
with customers, including several large, blue-chip E&P
companies under long-term, fixed-price arrangements. The
Kermit facility expands Hi-Crush’s industry-leading production and
logistics capabilities in West Texas and significantly improves
customer service while reducing delivered costs to the well
site.
"The opening of our Kermit facility is a
game-changer for our Permian Basin operations," said Ms. Fulton.
"The facility expands our product portfolio, while its proximity to
significant Permian Basin activity enables substantial efficiency
improvements in the delivery of sand to the well site.
Volumes sold from Kermit contributed 10% of total sales volumes for
the third quarter. As anticipated, we ramped operations to
achieve full utilization in mid-October and we expect to see a
significant increase in our financial performance from Kermit in
the fourth quarter of 2017. Having completed construction and
started operations two months ahead of schedule, Kermit is a clear
example of our experience and expertise in constructing and
operating large-scale, world-class frac sand production
facilities."
Pecos Terminal
The Partnership also previously announced the
commencement of operations at its new Pecos,
Texas terminal, the first unit train capable terminal with
silo storage in the Southern Delaware Basin.
Hi-Crush is actively delivering sand via rail to
the Pecos terminal, which includes 20,000 tons of vertical
silo storage on-site, from its two Union Pacific-connected
Northern White facilities in Wisconsin. On October 3,
2017, Hi-Crush began loading customer trucks for delivery
to support local completions activity.
"We are excited to have completed construction
on schedule and started operations at our third Permian Basin
terminal," said Mr. Rasmus. "The completion of Pecos augments our
existing capabilities in the Permian, which include our Odessa and
Big Spring terminals in the Midland Basin, and extends our
advantage in the region while complementing our leading network of
owned and operated logistics assets. Together with our
recently completed in-basin Kermit facility, these assets provide
our customers with flexibility and diversity across sand product,
and enhance surety of supply by mitigating potential logistical
bottlenecks in these highly active areas. In addition,
PropStream, our last-mile containerized delivery solution, allows
us to supply our sand directly into the blender hopper at the well
site reliably, efficiently, and safely. Controlling the
entire logistics chain is a differentiator for Hi-Crush,
particularly in an environment of significant growth, and will
allow us to profitably and sustainably grow our business over the
long-term."
PropStreamTM
Hi-Crush has seven PropStream crews currently
operating in the Permian Basin and Marcellus and Utica plays, with
the expectation to grow the total number of crews to nine or more
by the end of 2017.
Liquidity and Capital
Expenditures
As of September 30, 2017, the Partnership
had $193.2 million of long-term debt outstanding, and was in
compliance with the covenants defined in its Revolving Credit
Facility Agreement. As of September 30, 2017, Hi-Crush
had $82.1 million in cash and available capacity under its
revolving credit facility.
Capital expenditures for the nine months ended
September 30, 2017, totaled $108.1 million related to costs
associated with the construction of the Kermit facility, the
terminal facility in Pecos, Texas, equipment for PropStream and
overburden removal, among other projects. The Partnership
plans to spend in the range of $7 to $17 million on capital
expenditures during the fourth quarter of 2017.
The Partnership also announced that total
capital expenditures for 2018 are expected to be in the range of
$35 to $45 million, related to continued investment in equipment
for PropStream, normal maintenance capital expenditures, including
overburden removal, and discretionary investments in logistics
assets.
Distribution and Unit Buyback
Program
On October 16, 2017, Hi-Crush declared a
quarterly cash distribution of $0.15 per unit on all common units,
or $0.60 on an annualized basis, for the third quarter of
2017. The distribution will be paid on November 14, 2017
to unitholders of record on October 31, 2017.
On October 17, 2017, Hi-Crush announced that the
Board of Directors approved a unit buyback program of up to $100
million. The Partnership has authority at this time under its
Revolving Credit Agreement and Term Loan Credit Agreement for
repurchases of up to $20 million which, over the near-term and
combined with the initial quarterly distribution and its expected
growth, is well-aligned with Hi-Crush's capital return
intentions. The Partnership will seek consent under the
Revolving Credit Agreement and Term Loan Credit Agreement allowing
for the authorized amount of up to $100 million. The
repurchase program does not obligate the Partnership to repurchase
any specific dollar amount or number of units and may be suspended,
modified or discontinued by the Board of Directors at any time, in
its sole discretion and without notice.
Outlook
For the fourth quarter of 2017, the Partnership
expects sales volumes to increase to 2.7 to 2.9 million tons.
Pricing is also expected to improve modestly through the end of the
year, driven by ongoing tightness in frac sand supply and demand,
particularly for fine mesh sand.
"We have successfully ramped utilization at our
Kermit facility and expect to run all five production facilities at
an average utilization of 85% in the fourth quarter," said Mr.
Rasmus. "The strong existing customer relationships we have
maintained over the years, combined with increasing demand for
contracted and spot volumes from newly added customers, has led to
strong contracted commitments for Northern White volumes, in-basin
sand and sand delivered through PropStream contracted
services. Achieving our targeted level of commitments
decreases volume risk as we approach 2018, while retaining the
flexibility needed to serve our spot customers and our growing
PropStream crews. With the addition of our Pecos terminal and
continued expansion of our PropStream service across our operating
footprint, Hi-Crush is well-positioned to continue strong execution
and customer service going into 2018 and beyond."
Conference Call
On Wednesday, November 1, 2017, Hi-Crush
will hold a conference call for investors at 7:30 a.m. Central Time
(8:30 a.m. Eastern Time) to discuss Hi-Crush’s third quarter 2017
results. Hosting the call will be Robert E. Rasmus, Chief
Executive Officer and Laura C. Fulton, Chief Financial
Officer. The call can be accessed live over the telephone by
dialing (877) 407-0789, or for international callers, (201)
689-8563. A replay will be available shortly after the call
and can be accessed by dialing (844) 512-2921, or for international
callers (412) 317-6671. The passcode for the replay is
13671985. The replay will be available until
November 15, 2017.
Interested parties may also listen to a
simultaneous webcast of the conference call by logging onto
Hi-Crush’s website at www.hicrush.com under the Investors
Relations-Event Calendar and Presentations section. A replay
of the webcast will also be available for approximately 30 days
following the call. The slide presentation to be referenced
on the call will also be on Hi-Crush’s website at
www.hicrush.com under the Investors Relations-Event Calendar
and Presentations section.
Non-GAAP Financial Measures
This news release and the accompanying schedules
include the non-GAAP financial measure of EBITDA, Adjusted EBITDA,
distributable cash flow, adjusted earnings per limited partner unit
and contribution margin, which may be used periodically by
management when discussing our financial results with investors and
analysts. The accompanying schedules of this news release
provide reconciliations of these non-GAAP financial measures to
their most directly comparable financial measures calculated and
presented in accordance with generally accepted accounting
principles in the United States of America ("GAAP").
We define EBITDA as net income plus
depreciation, depletion and amortization and interest expense, net
of interest income. We define Adjusted EBITDA as EBITDA,
adjusted for earnings (loss) from equity method investments and any
non-cash impairments of goodwill and long-lived assets. We
define distributable cash flow as Adjusted EBITDA less cash paid
for interest expense and maintenance and replacement capital
expenditures, including accrual for reserve replacement, plus
accretion of asset retirement obligations and non-cash unit-based
compensation. We use distributable cash flow as a performance
metric to compare cash generating performance of the Partnership
from period to period and to compare the cash generating
performance for specific periods to the cash distributions (if any)
that are expected to be paid to our unitholders.
Distributable cash flow will not reflect changes in working capital
balances. We define adjusted earnings per limited partner
unit as earnings per limited partner unit, adjusted for the impact
of non-recurring items.
We use contribution margin, which we define as
total revenues less costs of goods sold excluding depreciation,
depletion and amortization, to measure our financial and operating
performance. Contribution margin excludes other operating
expenses and income, including costs not directly associated with
the operations of our business such as accounting, human resources,
information technology, legal, sales and other administrative
activities.
EBITDA, Adjusted EBITDA, distributable cash
flow, adjusted earnings per limited partner unit and contribution
margin are presented as management believes the data provides a
measure of operating performance that is unaffected by historical
cost basis and provides additional information and metrics relative
to the performance of our business.
About Hi-Crush
Hi-Crush is a premier provider of proppant and
logistics solutions to the North American energy industry.
Our portfolio of purpose-built production facilities are capable of
producing 13.4 million tons per year of high-quality
monocrystalline sand, a specialized mineral used as a proppant
during the well completion process, necessary to facilitate the
recovery of hydrocarbons from oil and natural gas wells. Our
production facilities' direct access to major U.S. railroads
enhance our delivery capabilities into consuming basins, while our
strategically located owned and operated in-basin terminals as well
as our in-basin production facility positions us within close
proximity to significant activity in all major oil and gas basins
for advantageous truck transportation. Our integrated
distribution system, enhanced by our innovative PropStreamTM
logistics solution, efficiently delivers proppant the "last mile"
into the blender, providing customers surety of supply from mine to
well site. For more information, visit www.hicrush.com.
Forward-Looking Statements
Some of the information in this news release may
contain forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended (the "Exchange
Act"). Forward-looking statements give our current expectations,
and contain projections of results of operations or of financial
condition, or forecasts of future events. Words such as "may,"
"assume," "forecast," "position," "predict," "strategy," "expect,"
"intend," "plan," "estimate," "anticipate," "could," "believe,"
"project," "budget," "potential," or "continue," and similar
expressions are used to identify forward-looking statements. They
can be affected by assumptions used or by known or unknown risks or
uncertainties. Consequently, no forward-looking statements can be
guaranteed. When considering these forward-looking statements, you
should keep in mind the risk factors and other cautionary
statements in Hi-Crush’s reports filed with the SEC, including
those described under 1A of Hi-Crush’s Form 10-K for the year ended
December 31, 2016 and any subsequently filed 10-Q.
Actual results may vary materially. You are cautioned not to place
undue reliance on any forward-looking statements. You should also
understand that it is not possible to predict or identify all such
factors and should not consider the risk factors in our reports
filed with the SEC or the following list to be a complete statement
of all potential risks and uncertainties. Factors that could cause
our actual results to differ materially from the results
contemplated by such forward looking statements include: the volume
of frac sand we are able to sell; the price at which we are able to
sell frac sand; the outcome of any pending litigation; changes in
the price and availability of natural gas or electricity; changes
in prevailing economic conditions; and difficulty collecting
receivables. All forward-looking statements are expressly qualified
in their entirety by the foregoing cautionary statements.
Hi-Crush’s forward-looking statements speak only as of the date
made and Hi-Crush undertakes no obligation to update or revise its
forward-looking statements, whether as a result of new information,
future events or otherwise.
Investor contact:Investor
Relationsir@hicrush.com(713) 980-6270
Marc Silverberg, ICRmarc.silverberg@icrinc.com(646) 277-1293
Unaudited Condensed Consolidated Statements of
Operations |
(Amounts
in thousands, except per unit amounts) |
|
|
Three Months Ended |
|
September 30, |
|
June 30, |
|
2017 |
|
2016 (a) |
|
2017 |
Revenues |
$ |
167,583 |
|
|
$ |
46,556 |
|
|
$ |
135,220 |
|
Cost of goods sold
(excluding depreciation, depletion and amortization) |
119,955 |
|
|
41,684 |
|
|
99,882 |
|
Depreciation, depletion
and amortization |
8,805 |
|
|
4,929 |
|
|
7,596 |
|
Gross
profit (loss) |
38,823 |
|
|
(57 |
) |
|
27,742 |
|
Operating costs and
expenses: |
|
|
|
|
|
General
and administrative expenses |
9,583 |
|
|
8,499 |
|
|
8,961 |
|
Impairments and other expenses |
200 |
|
|
148 |
|
|
143 |
|
Accretion
of asset retirement obligations |
115 |
|
|
109 |
|
|
114 |
|
Other
operating income |
(3,554 |
) |
|
— |
|
|
— |
|
Income
(loss) from operations |
32,479 |
|
|
(8,813 |
) |
|
18,524 |
|
Other income
(expense): |
|
|
|
|
|
Earnings
from equity method investments |
128 |
|
|
— |
|
|
296 |
|
Interest
expense |
(2,800 |
) |
|
(2,921 |
) |
|
(2,440 |
) |
Net
income (loss) |
$ |
29,807 |
|
|
$ |
(11,734 |
) |
|
$ |
16,380 |
|
Earnings (loss) per
limited partner unit: |
|
|
|
|
|
Basic |
$ |
0.33 |
|
|
$ |
(0.21 |
) |
|
$ |
0.18 |
|
Diluted |
$ |
0.32 |
|
|
$ |
(0.21 |
) |
|
$ |
0.18 |
|
|
Nine Months Ended |
|
September 30, |
|
2017 |
|
2016 (a) |
Revenues |
$ |
386,167 |
|
|
$ |
137,133 |
|
Cost of goods sold
(excluding depreciation, depletion and amortization) |
291,920 |
|
|
125,776 |
|
Depreciation, depletion
and amortization |
21,229 |
|
|
12,683 |
|
Gross
profit (loss) |
73,018 |
|
|
(1,326 |
) |
Operating costs and
expenses: |
|
|
|
General
and administrative expenses |
28,221 |
|
|
30,118 |
|
Impairments and other expenses |
343 |
|
|
33,998 |
|
Accretion
of asset retirement obligations |
343 |
|
|
319 |
|
Other
operating income |
(3,554 |
) |
|
— |
|
Income
(loss) from operations |
47,665 |
|
|
(65,761 |
) |
Other income
(expense): |
|
|
|
Loss from
equity method investments |
(142 |
) |
|
— |
|
Interest
expense |
(8,167 |
) |
|
(10,632 |
) |
Net
income (loss) |
$ |
39,356 |
|
|
$ |
(76,393 |
) |
Earnings (loss) per
limited partner unit: |
|
|
|
Basic |
$ |
0.48 |
|
|
$ |
(1.65 |
) |
Diluted |
$ |
0.47 |
|
|
$ |
(1.65 |
) |
(a) |
Financial information
has been recast to include the financial position and results
attributable to Hi-Crush Blair LLC, Hi-Crush Whitehall LLC, 2.0%
equity interest in Hi-Crush Augusta LLC and PDQ Properties LLC
(together the "Other Assets"). |
Unaudited EBITDA, Adjusted EBITDA and Distributable Cash
Flow |
(Amounts
in thousands) |
|
|
Three Months Ended |
|
September 30, |
|
June 30, |
|
2017 |
|
2016 |
|
2017 |
Reconciliation
of distributable cash flow to net income (loss): |
|
|
|
|
|
Net
income (loss) |
$ |
29,807 |
|
|
$ |
(11,734 |
) |
|
$ |
16,380 |
|
Depreciation and depletion expense |
8,806 |
|
|
4,932 |
|
|
7,599 |
|
Amortization expense |
421 |
|
|
420 |
|
|
421 |
|
Interest
expense |
2,800 |
|
|
2,921 |
|
|
2,440 |
|
EBITDA |
41,834 |
|
|
(3,461 |
) |
|
26,840 |
|
Earnings
from equity method investments |
(128 |
) |
|
— |
|
|
(296 |
) |
Adjusted EBITDA |
41,706 |
|
|
(3,461 |
) |
|
26,544 |
|
Less:
Cash interest paid |
(2,427 |
) |
|
(2,548 |
) |
|
(2,068 |
) |
Less:
Maintenance and replacement capital expenditures, including accrual
for reserve replacement (a) |
(3,399 |
) |
|
(1,554 |
) |
|
(2,945 |
) |
Add:
Accretion of asset retirement obligations |
115 |
|
|
109 |
|
|
114 |
|
Add:
Unit-based compensation |
1,509 |
|
|
1,155 |
|
|
1,219 |
|
Distributable cash
flow |
37,504 |
|
|
(6,299 |
) |
|
22,864 |
|
Adjusted
for: Distributable cash flow attributable to assets contributed by
the sponsor, prior to the period in which the contribution occurred
(b) |
— |
|
|
(400 |
) |
|
— |
|
Distributable cash flow
attributable to Hi-Crush Partners LP |
37,504 |
|
|
(6,699 |
) |
|
22,864 |
|
Less:
Distributable cash flow attributable to holders of incentive
distribution rights |
— |
|
|
— |
|
|
— |
|
Distributable cash flow attributable to limited partner
unitholders |
$ |
37,504 |
|
|
$ |
(6,699 |
) |
|
$ |
22,864 |
|
(a) |
Maintenance and
replacement capital expenditures, including accrual for reserve
replacement, were determined based on an estimated reserve
replacement cost of $1.35 per ton produced and delivered during the
period. Such expenditures include those associated with the
replacement of equipment and sand reserves, to the extent that such
expenditures are made to maintain our long-term operating capacity.
The amount presented does not represent an actual reserve account
or requirement to spend the capital. |
(b) |
The Partnership's
historical financial information has been recast to consolidate
Hi-Crush Blair LLC, Hi-Crush Whitehall LLC and Other Assets for the
periods leading up to their contribution into the
Partnership. For purposes of calculating distributable cash
flow attributable to Hi-Crush Partners LP, the Partnership excludes
the incremental amount of recast distributable cash flow earned
during the periods prior to the contributions. |
Unaudited EBITDA, Adjusted EBITDA and Distributable Cash
Flow |
(Amounts in
thousands) |
|
|
Nine Months Ended |
|
September 30, |
|
2017 |
|
2016 |
Reconciliation
of distributable cash flow to net income (loss): |
|
|
|
Net
income (loss) |
$ |
39,356 |
|
|
$ |
(76,393 |
) |
Depreciation and depletion expense |
21,234 |
|
|
12,689 |
|
Amortization expense |
1,262 |
|
|
1,261 |
|
Interest
expense |
8,167 |
|
|
10,632 |
|
EBITDA |
70,019 |
|
|
(51,811 |
) |
Loss from
equity method investments |
142 |
|
|
— |
|
Non-cash
impairments of goodwill |
— |
|
|
33,745 |
|
Adjusted EBITDA |
70,161 |
|
|
(18,066 |
) |
Less:
Cash interest paid |
(7,049 |
) |
|
(9,138 |
) |
Less:
Maintenance and replacement capital expenditures, including accrual
for reserve replacement (a) |
(8,189 |
) |
|
(3,963 |
) |
Add:
Accretion of asset retirement obligations |
343 |
|
|
319 |
|
Add:
Unit-based compensation |
3,906 |
|
|
3,015 |
|
Distributable cash
flow |
59,172 |
|
|
(27,833 |
) |
Adjusted
for: Distributable cash flow attributable to assets contributed by
the sponsor, prior to the period in which the contribution occurred
(b) |
1,247 |
|
|
1,062 |
|
Distributable cash flow
attributable to Hi-Crush Partners LP |
60,419 |
|
|
(26,771 |
) |
Less:
Distributable cash flow attributable to holders of incentive
distribution rights |
— |
|
|
— |
|
Distributable cash flow attributable to limited partner
unitholders |
$ |
60,419 |
|
|
$ |
(26,771 |
) |
(a) |
Maintenance and
replacement capital expenditures, including accrual for reserve
replacement, were determined based on an estimated reserve
replacement cost of $1.35 per ton produced and delivered during the
period. Such expenditures include those associated with the
replacement of equipment and sand reserves, to the extent that such
expenditures are made to maintain our long-term operating capacity.
The amount presented does not represent an actual reserve account
or requirement to spend the capital. |
(b) |
The Partnership's
historical financial information has been recast to consolidate
Hi-Crush Blair LLC, Hi-Crush Whitehall LLC and Other Assets for the
periods leading up to their contribution into the
Partnership. For purposes of calculating distributable cash
flow attributable to Hi-Crush Partners LP, the Partnership excludes
the incremental amount of recast distributable cash flow earned
during the periods prior to the contributions. |
Unaudited Condensed Consolidated Cash Flow
Information |
(Amounts in
thousands) |
|
|
Nine Months Ended |
|
September 30, |
|
2017 |
|
2016 (a) |
Operating
activities |
$ |
63,073 |
|
|
$ |
(18,596 |
) |
Investing
activities |
(453,106 |
) |
|
(117,817 |
) |
Financing
activities |
409,418 |
|
|
148,052 |
|
Net increase in
cash |
$ |
19,385 |
|
|
$ |
11,639 |
|
(a) |
Financial information
has been recast to include the financial position and results
attributable to Hi-Crush Blair LLC, Hi-Crush Whitehall LLC and
Other Assets. |
Unaudited Condensed Consolidated Balance
Sheets |
(Amounts in
thousands, except unit amounts) |
|
|
September 30, 2017 |
|
December 31, 2016 (a) |
Assets |
|
|
|
Current assets: |
|
|
|
Cash |
$ |
23,906 |
|
|
$ |
4,521 |
|
Accounts
receivable, net |
107,879 |
|
|
52,834 |
|
Inventories |
49,380 |
|
|
29,277 |
|
Prepaid
expenses and other current assets |
2,819 |
|
|
2,716 |
|
Total
current assets |
183,984 |
|
|
89,348 |
|
Property, plant and
equipment, net |
894,567 |
|
|
541,693 |
|
Goodwill and intangible
assets, net |
8,835 |
|
|
10,097 |
|
Equity method
investments |
14,258 |
|
|
10,232 |
|
Other assets |
6,002 |
|
|
7,831 |
|
Total
assets |
$ |
1,107,646 |
|
|
$ |
659,201 |
|
Liabilities, Equity and
Partners’ Capital |
|
|
|
Current
liabilities: |
|
|
|
Accounts
payable |
$ |
44,080 |
|
|
$ |
19,264 |
|
Accrued
and other current liabilities |
25,894 |
|
|
8,155 |
|
Deferred
revenues |
19,459 |
|
|
— |
|
Due to
sponsor |
11,546 |
|
|
118,641 |
|
Current
portion of long-term debt |
3,137 |
|
|
2,962 |
|
Total
current liabilities |
104,116 |
|
|
149,022 |
|
Long-term
debt |
190,093 |
|
|
193,458 |
|
Asset
retirement obligations |
9,857 |
|
|
9,514 |
|
Other
liabilities |
19,000 |
|
|
5,000 |
|
Total
liabilities |
323,066 |
|
|
356,994 |
|
Commitments and
contingencies |
|
|
|
Equity and partners'
capital: |
|
|
|
General
partner interest |
— |
|
|
— |
|
Limited
partners interest, 91,030,707 and 63,668,244 units outstanding,
respectively |
784,580 |
|
|
299,516 |
|
Total
partners’ capital |
784,580 |
|
|
299,516 |
|
Non-controlling interest |
— |
|
|
2,691 |
|
Total
equity and partners' capital |
784,580 |
|
|
302,207 |
|
Total
liabilities, equity and partners’ capital |
$ |
1,107,646 |
|
|
$ |
659,201 |
|
(a) |
Financial information
has been recast to include the financial position and results
attributable to Hi-Crush Whitehall LLC and Other Assets. |
Unaudited Per Ton Operating Activity |
|
|
Three Months Ended |
|
September 30, |
|
June 30, |
|
2017 |
|
2016 |
|
2017 |
Sand sold (in
tons) |
2,456,195 |
|
|
1,082,974 |
|
|
2,112,516 |
|
Sand produced and
delivered (in tons) |
2,517,752 |
|
|
1,150,341 |
|
|
2,181,276 |
|
Contribution margin ($
in thousands) |
$ |
47,628 |
|
|
$ |
4,872 |
|
|
$ |
35,338 |
|
Contribution margin per
ton sold |
$ |
19.39 |
|
|
$ |
4.50 |
|
|
$ |
16.73 |
|
|
Nine Months Ended |
|
September 30, |
|
2017 |
|
2016 |
Sand sold (in
tons) |
5,953,598 |
|
|
2,895,235 |
|
Sand produced and
delivered (in tons) |
6,065,840 |
|
|
2,935,281 |
|
Contribution margin ($
in thousands) |
$ |
94,247 |
|
|
$ |
11,357 |
|
Contribution margin per
ton sold |
$ |
15.83 |
|
|
$ |
3.92 |
|
Unaudited Net Income per Limited Partner Unit |
(Amounts
in thousands, except units and per unit amounts) |
|
|
Three Months Ended |
|
Nine Months Ended |
|
September 30, |
|
September 30, |
Weighted
average limited partner units outstanding: |
2017 |
|
2016 |
|
2017 |
|
2016 |
Basic
common units outstanding |
91,030,558 |
|
|
55,095,464 |
|
|
85,277,011 |
|
|
44,832,652 |
|
Potentially dilutive common units |
997,066 |
|
|
— |
|
|
997,066 |
|
|
— |
|
Diluted
common units outstanding |
92,027,624 |
|
|
55,095,464 |
|
|
86,274,077 |
|
|
44,832,652 |
|
|
Reconciliation of net income (loss) and the assumed allocation of
net income (loss) under the two-class method for purposes of
computing earnings (loss) per limited partner unit: |
|
Three Months Ended September 30,
2017 |
|
General Partner and IDRs |
|
Limited Partner Units |
|
Total |
Declared
distribution |
$ |
— |
|
|
$ |
13,655 |
|
|
$ |
13,655 |
|
Assumed allocation of
earnings in excess of distributions
|
— |
|
|
16,152 |
|
|
16,152 |
|
Assumed allocation of
net income |
$ |
— |
|
|
$ |
29,807 |
|
|
$ |
29,807 |
|
|
|
|
|
|
|
Earnings per limited
partner unit - basic |
|
|
$ |
0.33 |
|
|
|
Earnings per limited
partner unit - diluted |
|
|
$ |
0.32 |
|
|
|
|
Three Months Ended September 30,
2016 |
|
General Partner and IDRs |
|
Limited Partner Units |
|
Total |
Declared
distribution |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Assumed allocation of
distributions in excess of loss |
— |
|
|
(11,734 |
) |
|
(11,734 |
) |
Add back recast income
attributable to Blair through August 31, 2016 |
— |
|
|
(962 |
) |
|
(962 |
) |
Add back recast losses
attributable to Whitehall and Other Assets |
— |
|
|
992 |
|
|
992 |
|
Assumed allocation of
net loss |
$ |
— |
|
|
$ |
(11,704 |
) |
|
$ |
(11,704 |
) |
|
|
|
|
|
|
Loss per limited
partner unit - basic |
|
|
$ |
(0.21 |
) |
|
|
Loss per limited
partner unit - diluted |
|
|
$ |
(0.21 |
) |
|
|
|
Nine Months Ended September 30,
2017 |
|
General Partner and IDRs |
|
Limited Partner Units |
|
Total |
Declared
distribution |
$ |
— |
|
|
$ |
13,655 |
|
|
$ |
13,655 |
|
Assumed allocation of
earnings in excess of distributions |
— |
|
|
25,701 |
|
|
25,701 |
|
Add back recast losses
attributable to Whitehall and Other Assets through March 15,
2017 |
— |
|
|
1,471 |
|
|
1,471 |
|
Assumed allocation of
net income |
$ |
— |
|
|
$ |
40,827 |
|
|
$ |
40,827 |
|
|
|
|
|
|
|
Earnings per limited
partner unit - basic |
|
|
$ |
0.48 |
|
|
|
Earnings per limited
partner unit - diluted |
|
|
$ |
0.47 |
|
|
|
|
Nine Months Ended September 30,
2016 |
|
General Partner and IDRs |
|
Limited Partner Units |
|
Total |
Declared
distribution |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Assumed allocation of
distributions in excess of loss |
— |
|
|
(76,393 |
) |
|
(76,393 |
) |
Add back recast income
attributable to Blair through August 31, 2016 |
— |
|
|
(279 |
) |
|
(279 |
) |
Add back recast losses
attributable to Whitehall and Other Assets |
— |
|
|
2,583 |
|
|
2,583 |
|
Assumed allocation of
net loss |
$ |
— |
|
|
$ |
(74,089 |
) |
|
$ |
(74,089 |
) |
|
|
|
|
|
|
Loss per limited
partner unit - basic |
|
|
$ |
(1.65 |
) |
|
|
Loss per limited
partner unit - diluted |
|
|
$ |
(1.65 |
) |
|
|
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