A Portfolio of Opportunity Wisconsin 4.2 million tons of annual 20/70 capacity* Over 30 years of reserves Marcellus & Utica Exclusive rail access Largest distribution network Niche position in strongest drilling area…
Hi-Crushs Competitive Advantages Long-term Contracted Cash Flow Visible Avenues to Growth Low-Cost Producer Long-Lived, High Quality Reserves Prime Portfolio of Assets Focused Strategy Focused Priorities Meeting Our Returns…
Delivering Outstanding Results 3.7 million tons of frac sand contracted in 2014; increasing to 5.6 million tons Predictable Cash Flow in 2015 Long-term double-digit annual distribution growth Completed 2.6 million ton per year…
Our Business Model Q2 2014 Operating Results Tons produced and delivered 953,361 Tons sold(1) 1,024,052 Production cost/ton 14.20 Hi-Crush plants Sold FOB plant direct to customer (67%) Sold at the Sand delivered terminal…
Logistics Flexibility Critical Access to all major U.S. oil and gas basins Augusta Facility Sponsors Whitehall Facility Direct loading and unloading of unit trains Sandstone Formations In-basin terminals across Marcellus…
Rail Access Provides Direct Link from Mine to Basin Class-1 rail lines provide efficient and cost effective access to drilling activity Majority of sand sold into leading areas of activity 2014 Projected Capex by Play (1) ( in…
Tons Sold FOB Mine During the Quarter Q2 2014 FOB Mine Sales (3) Permian / Eagle Ford (1) (2) 11% 33% 67% Marcellus / Utica Volume FOB Mine Sold at Volume 7% Oklahoma 66% Terminals Colorado 6% Louisiana 7% Other…
Hi-Crush Terminals Addressing Customer Needs 1 2 Q2 2014 Sand transported by Sand sourced from rail to destination mine terminal Ability to source from Hi-Crush On-site rail access is significant mines, the Sponsors Whitehall…
Committed to Growing Distribution Long-Term Pattern of raising distribution with quarterly increases Long-term double-digit annual distribution growth Guidance 2.30 2.50 2.30 2.10 2.04 1.96 1.90 * Q3 '13 Q4 '13…
Strong Coverage Provides Flexibility for Growth Strong coverage ratio averaging above target coverage of 1.20x Coverage supports step-change in distribution growth and organic expansion 35 1.80x (2) 1.54x 1.60x 30 1.38x (1)…
Positioned to Meet Demand Growth 3.7 million contracted take-or-pay tons in 2014 Signed eight new contracts or amendments to contracts in 2014 5.6 million contracted take-or-pay tons in 2015 Sponsors new Whitehall production…
Industry Backdrop
Operator Activity Driving Frac Sand Demand Growth E&P operators are using fracture stimulation techniques, such as increased proppant per stage and increased frac stages per well, to drive well performance These activities are driving…
Proven Production Execution 7.5 MM tons/yr Nameplate capacity of 20/70 sand 6.8 MM 100 mesh tons/yr 4.6 MM tons/yr 3.6 MM tons/yr 4.2 MM tons/yr 3.2 MM tons/yr Wyeville + Wyeville Augusta + + 1.6 MM Augusta Augusta…
Capacity Increases Driven by Customer Demand 4.2 Year Average 4.5 Year Life Average Life 2.8 Year Average Life 2.5 Year Average Life 1.2 MM 2.4 MM 3.7 MM 5.6 MM Tons Tons Tons Tons Under Under Under Under Contract…
Low Cost Structure Essential Hi-Crush Partners Production Costs per Ton Produced and Delivered 25.00 1,200,000 1,000,000 20.00 800,000 15.00 600,000 10.00 400,000 5.00 200,000 0.00 1Q 2013 2Q 2013 3Q 2013 4Q…
Levers for Further Performance 20
Appendix
Second Quarter 2014 Summary Three Months Three Months Ended Ended June 30, 2014 June 30, 2013 Recasted Revenues 82,724 37,560 Cost of goods sold (including depreciation, depletion, and amort.) 43,859 17,824 Gross profit 38,865…
First Half 2014 Summary Six Months Six Months Ended Ended June 30, 2014 June 30, 2013 Recasted Recasted Revenues 153,302 61,837 Cost of goods sold (including depreciation, depletion, and amort.) 88,025 26,744 Gross profit 65,277…
Second Quarter 2014 Summary Three Months Three Months Ended Ended June 30, 2014 June 30, 2013 Recasted Reconciliation of distributable cash flow to net income: Net income 29,805 14,437 Depreciation and depletion 2,428 1,505…
First Half 2014 Summary Six Months Six Months Ended Ended June 30, 2014 June 30, 2013 Recasted Recasted Reconciliation of distributable cash flow to net income: Net income 48,325 26,114 Depreciation and depletion 3,904 2,070…
Production Costs per Ton Produced and Sold Hi-Crush Partners LP (Wyeville & Augusta)(1) Production Cost per Ton Fiscal Quarter 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 Tons produced and delivered 382,607 557,457 597,659…
Balance Sheet is Strong As of June 30, 2014: ( in 000s) Cash 31,128 1 Revolver - 2 Term loan 197,547 Total debt 197,547 Net debt 166,419 3 Net debt / EBITDA 1.40x (1) Revolving credit facility: 143.8mm available at…
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