Continued Execution of Our Operating Strategy 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 MINE. Capacity ramp:…
Expanding Our Operating Capabilities Kermit Facility Purpose-built 3mm TPY production facility, completed two MINE. months ahead of schedule in July 2017 Updated reserve report proves 105mm tons of high-quality fine mesh reserves;…
Resuming Capital Return to Unitholders Capital return program represents thoughtful balance of return methods; maximizes value to unitholders Distributions Buyback Program Reinstituting our quarterly cash Board approval for a…
Our Unrivaled In-Basin Logistics Platform Advantage: Hi-Crush owned and operated network reduces trucking distance and costs Northeast Service Footprint Permian Service Footprint 1) Estimate based on NavPort 2017 YTD reported…
Best-in-Class Logistics Platform Our Logistics Platform Today Development Track Record 75% 12 Opportunistic Development Permian and Northeast Owned and operated Strategically invested in our proppant demand within 50 owned and…
Network Ownership Enhances Logistics Advantage Wisconsin Logistics Network Bakken Reduces potential for Augusta logistics bottlenecks Blair Priority at owned and Whitehall operated terminals Marcellus / ensures quality customer…
Pecos Terminal Operating in the Delaware Terminal Details Operational as of October 3, 2017 Complements Kermit facility as additional source point to mitigate logistical bottlenecks and meet customer needs for various mesh sizes…
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…
Outlook and Strategy
Volumes and Utilization Increasing to Meet Demand HCLP Quarterly Volumes Sold Q4 2017 volumes expected to increase Q3 2017 volumes of 2.5mm tons to 2.7mm 2.9mm tons; sequential represents 16% sequential growth growth of 8-16%…
Expected In-Basin Industry Capacity Additions 2018 Permian In-Basin Capacity Permit filings and company announcements suggest 60mm TPY 60mm TPY of Permian in-basin nameplate capacity additions We believe significantly less…
In-Basin Impact on Northern White Sand as a service Hi-Crush benefits from MINE. MOVE. MANAGE. strategy Total U.S. Proppant Permian Effective Demand by Basin Supply Other Rockies 2016 Future Bakken Regional Brown SCOOP &…
Strong Financial Outlook Using Modest Assumptions Northern Northern White White Contribution Contribution Margin Matrix Margin Kermit: 105mm ------------- Northern White Contribution Margin per Ton ---------- mm 5.0 10.0 15.0…
Leveraging Our Competitive Advantages Factor Our Position The Hi-Crush Advantage Size and Five facilities, 13.4mm tons Premier supplier with operational flexibility and ability Scale of annual capacity to meet dynamic customer needs…
Hi-Crush Customer Value Proposition We provide our customers with the high-quality, cost-effective proppant and logistics services they require and want, when and where they needed MINE. MOVE. MANAGE. 13.4mm TPY annual Largest…
Strong Liquidity and Financial Flexibility in 000s December 31, 2016 September 30, 2017 Cash 4,521 23,906 Revolver - - Term loan1 189,715 189,039 Other notes payable 6,705 4,191 Total debt 196,420 193,230 Net debt 191,899…
Credit Facility Provides Liquidity and Flexibility Credit Facility Terms Covenant Overview Leverage Ratio Maximum1 Capacity: Total revolver capacity of 75mm 5x 4.5x provides flexibility 4.0x 4x 3.5x 2017 Covenants: Conservative…
Q3 2017 Summary Statements of Operations Unaudited Quarterly Consolidated Statements of Operations (Amounts in thousands, except per unit amounts) Q3 2016 (1) Q4 2016 (1) Q1 2017 Q2 2017 Q3 2017 Revenues 46,556 67,297 83,364 135,220…
Q3 2017 Summary EBITDA, Adjusted EBITDA, DCF Unaudited EBITDA, Adjusted EBITDA and Distributable Cash Flow (Amounts in thousands) Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Reconciliation of distributable cash flow to net income: Net…
Appendix
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…
Dunes Sagebrush Lizard (DSL) Habitat Dunes Sagebrush Lizard Habitat in Texas1 Shinnery Oak Quercus havardii (Shinnery Oak) deciduous, low-growing, thicket-forming shrub Small portion of the overall shinnery oak community found…
Hi-Crush Poses No Threat to the DSL The Hi-Crush Kermit Site The development of the Kermit site does not pose a threat to the DSL or to DSL habitat Extensive diligence conducted by state certified wildlife biologists and renowned…
Efficient Railcar Management Efficiently managing our railcar fleet; well-positioned to service increased activity Railcar All railcars remobilized from storage in early 2017 to meet increasing demand Management 61% of railcars…
Simple Structure; Incentivized Management Team Avista Capital Parters 61% 39% Management and and Co-Investors Directors Hi-Crush Proppants LLC (Sponsor) 10.2% LP 100% Public Hi-Crush GP LLC Unitholders 100% of IDRs…
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