Strategic Update Kermit Facility Initial wet plant production Photo dated July 17, 2017
Continued Execution & Strategically Positioned Kermit completion: Completed construction of purpose-built 3mm TPY in-basin Kermit facility two months ahead of schedule and under budget; first delivery in July 2017 Continued & Focused…
Hi-Crushs Production Portfolio Wyeville Blair Augusta Whitehall Kermit Capacity 1.85mm TPY 2.86mm TPY 2.86mm TPY 2.86mm TPY 3.00mm TPY Northern Northern Northern Northern Type In-basin White White White White Reserve Life1 41…
Leveraging Our Competitive Advantages Factor Our Position The Hi-Crush Advantage Size and Five facilities, 13.4mm Premier supplier with operational flexibility and Scale tons of annual capacity ability to meet dynamic customer needs…
Kermit Facility Completed Ahead of Schedule Facility Status Completed construction and commenced operations in July 2017; under budget and two months ahead of schedule Expect to ramp utilization during Q3 2017; estimate operating…
Pecos Terminal Further Enhances Permian Position Terminal Overview On schedule for October 2017 completion Complements Kermit facility as additional source point to mitigate logistical bottlenecks and meet customer needs for various…
PropStream: Success in the Market Performance and Strategy Strong adoption rate from current and new customers since roll-out No lost-time incidents; greater than 98% uptime performance Q2 2017 utilization of 91%; increased from Q1…
Outlook
Volumes Increasing with Utilization to Meet Demand HCLP Quarterly Volumes Sold Q3 2017 volumes expected to increase Q2 2017 volumes of 2.1mm tons to 2.4mm 2.6mm tons; sequential represents 53% sequential growth growth of 14-24%…
Strong Frac Sand Fundamentals Greater frac sand intensity driven by multiple factors Targeting of Increased Supportive Fundamentals Shale & Horizontal Unconventional Drilling Longer Laterals More Stages per Lengths Foot Sand…
Leverage to Current Upcycle vs. Prior Peak Old Model New Model Total U.S. Rig Count 2,000 rigs Assumed 900 rigs Days to Drill per Well 27 days Assumed 18 days Wells Drilled per Year per Rig 13 wells Calculated 20 wells Total…
PropX Systems On Track to Grow Market Share Systems Deployed Systems Hi-Crush Third Parties 10%+ Total 35 Market Share1 30 25 20 15 10 5 9 1 2 4 0 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q4 2017E Rapid market acceptance of…
Business Update
The Importance of Logistics in a Growing Market 100,000,000 500,000 4,440,000 Frac sand tons per year Railcars per year Truckloads per year Million tons of demand per year Thousand railcars per year Million truckloads per year…
Network Ownership Establishes Logistics Flexibility Wisconsin Logistics Network Bakken Reduces potential for Augusta logistics bottlenecks Blair Priority at owned and Whitehall operated terminals Marcellus / ensures quality…
Hi-Crush Logistics in the Permian Our Advantage Hi-Crushs Permian Service Footprint Hi-Crush owned and operated network reduces trucking distance and costs; optimal trucking distance is less than 75 miles More than 80%1 of Permian…
PropStream: Simplifying the Supply Chain Differentiated Last-Mile Capabilities Fully integrated delivery solution to provide proppant logistics services Fully enclosed system reduces particulate matter emissions by 90% versus…
Improved Liquidity and Financial Flexibility in 000s December 31, 2016 June 30, 2017 Cash 4,521 27,490 Revolver - - Term loan1 189,715 189,265 Other notes payable 6,705 5,223 Total debt 196,420 194,488 Net debt 191,899…
Credit Facility Provides Liquidity and Flexibility Credit Facility Terms Covenant Overview mm Leverage Ratio Maximum1 Capacity: Total revolver capacity of 75mm 6x 5.0x 2017 Covenants: Leverage ratio maximum 5x 4.5x and interest…
Q2 2017 Summary Statements of Operations Unaudited Quarterly Consolidated Statements of Operations (Amounts in thousands, except per unit amounts) Q2 2016 (1)(2) Q3 2016 (2) Q4 2016 (2) Q1 2017 Q2 2017 Revenues 38,429 46,556 67,297…
Q2 2017 Summary EBITDA, Adjusted EBITDA, DCF Unaudited EBITDA, Adjusted EBITDA and Distributable Cash Flow (Amounts in thousands) Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Reconciliation of distributable cash flow to net income (loss):…
APPENDIX
Efficient Railcar Management Efficiently managing our railcar fleet; well-positioned to service increased activity Railcar All railcars remobilized from storage during Q1 2017 due to increase activity Management 68% of railcars…
PropStream Partners with PropX PropStream Overview Joint Venture Partners PropStream is the last-mile delivery 100% solution that is 100% owned and operated by Hi-Crush Hi-Crush owns an interest in Proppant Express Investments,…
Simple Structure; Incentivized Management Team Avista Capital Parters 61% 39% Management and and Co-Investors Directors Hi-Crush Proppants LLC 13.2% LP (Sponsor) 10.0% LP 100% Public Hi-Crush GP LLC Unitholders 100% of…
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