Taking Steps to Capture Value During a Recovery Accretive acquisition of low-cost Blair facility completed at attractive price from our sponsor, Hi-Crush Proppants Focusing Optimizing origin / destination pairings to minimize freight…
Blair Facility Acquisition Overview Acquisition Overview Benefits to HCLP HCLP acquired 100% of the Blair Facility from Hi-Crush Proppants Adds a third, Tier 1 Northern White Total acquisition value of 175mm, funded processing plant…
Improved Liquidity & Flexibility to Create Opportunity and Capture Value Capture Value Third Primary Created Opportunity Common Unit Enhanced Flexibility Second Primary Offering Common Unit Offering In Aug 16, Credit Facility…
Leveraging Our Competitive Advantages Factor Our Position The Hi-Crush Advantage Four facilities, two Class- Top-tier supplier with operational Size & Scale 1 rail origins, 10.4 mm1 flexibility and ability to meet increasingly tons of…
Frac Sand Volumes in the Downturn Market share consolidation trend continues despite pressure on industry volumes Frac Sand Volumes by Quarter Frac Sand Volumes vs. Rigs 2Q15 2Q16 000s tons 2Q15 3Q15 4Q15 1Q16 2Q16 1,400 1,800…
Raw Frac Sand Market Share Northern White frac sand overwhelmingly largest component of the proppant market Frac Sand 92% of Proppant…
Strong Frac Sand Fundamentals Greater frac sand intensity driven by multiple unchanged factors Targeting of Increased Factors Supporting a Recovery Shale & Horizontal Unconventional Drilling Longer Laterals More Stages per…
Rig & Completion Rate Impact on Sand Demand1 Company XYZ Before Downturn Recovery Rig Count 10 rigs -50% 5 rigs +20% 6 rigs of rigs Rig Efficiency 20 days +18% 17 days - 17 days Days/well drilled Rig Productivity 18 wells Calculated…
Incentivized Management Team Avista Capital Parters 61% 39% Management & and Co-Investors Directors Hi-Crush Proppants LLC (Sponsor) 100% 100% Hi-Crush GP Operating LLC (General Subsidiaries Public Partner) Unitholders…
Hi-Crush Operations
Operating Model In-Basin & FOB Plant Sales Mine location FOB Plant In-Basin Sold FOB plant direct to customer Sand loaded to railcars at mine site In-Basin % FOB Plant % Sand Sold (000s tons) Freight Costs 2,000 42% 42% 48%…
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 Wisconsin Logistics Overview Bakken Access to all major Augusta U.S. oil and gas basins Blair Marcellus / Multiple owned and Whitehall Utica operated in-basin terminals Wyeville Major presence…
Efficient Railcar Management We continue to efficiently manage our railcar fleet Returned all system cars Railcar Pushed out new deliveries; 700 scheduled to be delivered in late 2018 & 2019 Management Update Lowered existing lease…
Second Quarter 2016 Summary Note: Amounts have been recast to include the financial position and results attributable to Hi-Crush Blair LLC. 20
Second Quarter 2016 Summary EBITDA & DCF Note: Amounts have been recast to include the financial position and results attributable to Hi-Crush Blair LLC. a) Maintenance and replacement capital expenditures, including accrual for…
Reconciliation of Adjusted Net Income & EPU a) Amounts have been recast to include the financial position and results attributable to Hi-Crush Blair LLC. 22
Improved Liquidity and Financial Flexibility As of As of in 000s June 30, 2016 August 31, 2016 Cash 39,657 44,088 Revolver 0 0 Term loan1 190,166 190,255 Other notes payable 4,991 4,074 Total debt 195,157 194,329 Net debt…
Credit Facility Amendment Adds Flexibility Executed third amendment to revolving credit facility in April 2016 Credit Facility Terms Trailing 6 Month Leverage Ratio EBITDA Minimum Capacity: Total revolver capacity of 75mm Maximum3…
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