A Challenging Market with Partial Offsets Lower completion activity as Increasing sand intensity as E&Ps reduce capex budgets and companies pump more sand to delay well completions generate best well economics in a stressed price…
Taking Steps to Effectively Manage the Downturn Focusing on Internal Cost Partnering with Long Maintaining Liquidity & Reductions Term Customers Capital Flexibility Temporarily idled Augusta Extend previous pricing Temporarily…
Leveraging Our Competitive Advantages Factor Our Position The Hi-Crush Advantage 4 facilities, 2 Class-1 rail Operational flexibility and ability to meet Size & Scale origins, 10.4 mm1 tons capacity increasingly dynamic customer…
Credit Facility Amendment Adds Flexibility Trailing 6 Month EBITDA Minimum Annualized Leverage Ratio Maximum 16.0 6.0x 14.0 5.0x 12.0 12.0 4.5x 5.0x 12.0 4.0x Multiple X (gray bar) 3.5x 4.0x mm (blue bars) 10.0 8.0 8.0…
Raw Frac Sand Market Share Frac Sand 92% of Proppant…
Strong Frac Sand Fundamentals Unchanged Factors Supporting an Eventual Targeting of Increased Recovery Shale & Horizontal Unconventional Drilling Longer Laterals More Stages per Lengths Foot Supply reduced as producers idle or…
Rig / Completion Rate Impact on Sand Demand1 Company XYZ Before After Rig Count 10 rigs -50% 5 rigs of rigs Rig Efficiency 20 days +20% 16 days Days/Well Drilled Rig Productivity 18 wells Calculated 22 wells Wells…
Hi-Crush Operations
Our Model Q4 and FY 2015 Operating Results Q4 2015 FY 2015 Sold FOB plant 48% direct to customer 49% 52% 51% FOB Plant In-Basin FOB Plant In-Basin Sold at terminal to Tons Sold Q415: 1,209,171 customer Sand delivered to Tons…
Hi-Crush Ranks Among Largest in Industry 1 10.4 million1 tons capacity in Wisconsin Largest production capacity of frac sand in Wisconsin 2 in World Second largest production capacity of frac sand in the world 1)…
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 Marcellus and Utica Sandstone shales and one…
Railcar Storage Railcar Fleet 12/31/14 3/31/15 6/30/15 9/30/15 12/31/15 Leased and owned 2,721 2,880 2,898 3,542 3,947 Customer or system 4,500 3,502 2,452 2,191 2,104 Total 7,221 6,382 5,350 5,733 6,051 In Storage - - - 250…
Incentivized Management Team Avista Capital Partners 58% 42% Management and Co-Investors Hi-Crush Proppants LLC (Sponsor) 100% 100% Hi-Crush GP LLC Operating Public (General Partner) Subsidiaries Unitholders 100% 100%…
Financial Results
Comparison to Prior Quarters and Prior Year in 000s Q4 2015 Q3 2015 Q2 2015 FY 2015 FY 2014 Revenues 72,077 81,494 83,958 339,640 386,547 Adjusted EBITDA1 19,699 13,426 19,195 81,901 148,015 Adjusted EPU (basic)1 0.36 0.15 0.31 1.42…
4th Quarter 2015 Summary 19
4th Quarter 2015 Summary EBITDA & DCF 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…
Full-Year 2015 Summary a) Financial information has been recast to include the financial position and results attributable to Hi-Crush Augusta LLC. 21
Full-Year 2015 Summary EBITDA & DCF 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…
Reconciliation of Adjusted Net Income & EPU 23
Strong Liquidity and Financial Flexibility in 000s As of December 31, 2015 Cash 10,414 Revolver1 52,500 Term loan2 194,971 Other notes payable 6,924 Total debt 254,395 Net debt 243,981 Net debt / LTM Adj. EBITDA 2.98x…
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