Drop in Rig Count Felt in Q1 2015 in 000s Q1 2015 Q4 2014 Q1 2014 Revenues 102,111 130,929 70,578 EBITDA 29,581 44,567 23,942 Earnings per unit (basic) 0.61 0.85 0.49 Earnings per unit (diluted) 0.60 0.85 0.49 Sales volumes 1,195,343…
Balance Sheet Remains Strong Low leverage Strong liquidity Financial flexibility in 000s As of March 31, 2015 Cash 4,913 Revolver1 12,500 Term loan2 196,259 Other notes payable 3,676 Total debt 212,435 Net debt 207,522…
Coverage Maintained During Tough Quarter Strong coverage position with a growing cash distribution base Maintaining and prudently growing distributions to unitholders are key priorities Coverage ratio averaging 1.23x since Q1 2013,…
Committed to Long-Term Distribution Growth Declared Distributions Declared Distributions Distribution declared for Q1 2015 19% CAGR held flat sequentially Q2 13 Q2 15 2.70 2.70 Represents a +12.5% increase 2.50 vs. 2.40 paid for…
Industry Backdrop
Recent Stability in Oil Prices Following Steep Drop 120.00 100.00 80.00 60.00 40.00 20.00 0.00 Source: EIA Rapid industry response to WTI price decline is slowing production growth Decline in domestic production…
Timing & Magnitude of Recovery Remain Unclear From peak to May 2015, U.S. land rig count had dropped for 23 consecutive weeks Vertical rig count decreased by 60%+ Directional rig count declined by 50%+ Horizontal rig count fallen…
Frac Sand Demand Commentary We also continue to make As operators drop horizontal But for the most part, youre progress on our frac rigs, they drill longer and really just not getting the optimization learnings, where longer…
Fundamentals Still Support Long-Term Demand Targeting of shale & unconventional reservoirs Increased use of horizontal drilling More wells per rig Longer laterals More stages per lateral foot More proppant per stage…
Current Environment Consolidation, Efficiencies & Pricing Coordination Continued supply chain improvements and market share consolidation Oilfield service providers still seeking efficiencies through supply chain enhancements Sand…
Managing the Downturn Temporary Measures to Address Contract Customer Market Factors Gave pricing discounts to contract customers, in certain circumstances in exchange for additional term and/or volume Price discounts through 2015;…
Hi-Crush Operations
Hi-Crushs Competitive Advantages Long-Term Contracted Cash Flow 8 long-term contracts, 4.21 average years remaining Low-Cost Producer 7.5 million tons of 20/100 capacity Long-Lived High Quality Reserves Long Term Northern White…
Hi-Crush Ranks Among Largest in Industry 1 7.5 million tons current capacity1 in Wisconsin Largest production capacity of frac sand in Wisconsin 4 in World Fourth largest production capacity of frac sand in the…
Logistics Flexibility Critical Access to all major U.S. oil and gas basins Sponsors Whitehall Facility Direct loading and unloading of unit trains Multiple in-basin terminals across Sandstone Marcellus and Utica Formations…
Our Business Model Q1 2015 Operating Results 44% Sold FOB plant 56% direct to customer FOB Plant Terminal Tons produced & delivered: 932,755 Sold at terminal to Production cost/ton: 16.28 customer Sand delivered to Hi- Tons…
A Strategy for the Current Market Northern White in highest demand relative to other proppant types Migration to in-basin sales as a way for customers to lower supply chain costs Organic growth of distribution network Dropdown of…
Levers for Further Performance 20
Financial Results
1st Quarter 2015 Summary 22
1st Quarter 2015 Summary (1) 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…
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