Creating a Stable and Diverse Platform for Growth We provide our customers with the high-quality, cost-effective proppant and logistics services they desire and require, when and where they are needed MINE. MOVE. MANAGE. 13.4mm…
2017 Execution Builds Strong Platform for 2018 Execution results in stable and more diverse platform for accelerated profitability and growth in 2018 March: October: March: July: October: Completed purchase of Kermit facility…
Network Ownership Provides Logistics Advantage Wisconsin Logistics Network Bakken Owned and operated logistics Augusta network provides flexibility to address changing demand Blair dynamics; proactively mitigates Whitehall impacts…
Destination and Sales Channel Optionality Our Operational Landscape Operational Track Record Long-Term Contracted Volumes 80% 90% Both our Wisconsin and Kermit (TX) Northern White capacity Kermit capacity contracted; facilities are…
Best-in-Class Logistics Platform Our Logistics Platform Today Development Track Record 80% 12 Opportunistic Development Permian and Northeast Owned and operated Strategically invested in our owned proppant demand within 50 and…
Basin Diversity Drives Consistent Sales Volumes Bakken Diverse Hi-Crush Sand Sales Destinations 5-10%+ Hi-Crush Northern White Facilities 60% of Hi-Crush Northern White volumes sold outside Marcellus the Permian / Utica Owned…
Permian Footprint Provides Multiple Delivery Points Permian Service Footprint Hi-Crush operates multiple types of facilities, in diverse locations strategically positioned to serve the Midland and Delaware Basins 80% of activity in…
Permian Sand Complements Northern White Demand Permian supply will likely erode regional sand share to a greater degree due to lower cost and comparable mesh sizes Total U.S. Frac Sand Permian Effective Demand by Basin Supply…
Well-Positioned in Dynamic Demand Environment Strong base of Northern White (NW) Majority of 2018 demand from regions A B demand in Permian due to mesh preferences only economically supplied by NW Demand (Future) Mesh Split…
Marcellus/Utica Footprint Provides Demand Resiliency Northeast Service Footprint Hi-Crush owns and operates eight terminals in the Marcellus/Utica region, with direct access to our Northern White mines via the Canadian National…
PropStream Integrated Logistics Service Safe. Efficient. Effective. Unique last mile proppant logistics solution reduces costs and environmental impact by simplifying the proppant delivery process through a fully flexible service…
Strategy & Outlook
Volumes and Utilization Increasing to Meet Demand HCLP Quarterly Volumes Sold Q4 2017 volumes of 2.985mm tons Q1 2018 volumes expected to be represents 22% sequential growth 2.7-2.9mm tons 000s tons 3,500 Quarterly Volumes Sold…
Our Outlook 2018 and Beyond We see the evolution of the frac sand industry in 2018 and beyond building on three themes: Sand Market Forces of Change self sourcing, logistics excellence, and site- specific last mile solutions Direct…
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…
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…
2018 Forecasts & Guidance Metric Guidance Value Period Quarterly sales volumes 2.7-2.9 million tons Q1 2018 % of capacity contracted 90% Kermit, 80% Northern White mines 2018 PropStream crews 18-20 crews 2018 exit Total capital…
Financial Results
Resuming and Increasing Capital Return to Unitholders Board authorized for up to 100mm of HCLP unit repurchases in October 2017 Completed 20mm of repurchases in Q4 2017 (2,030,163 common units) Unit Repurchase Received approvals in…
Extended Maturity Profile and Enhanced Flexibility Term Loan Refinancing Revolver Refinancing In December 2017, entered into new 7-year In December 2017, entered into new 5-year 200mm Term Loan Credit Facility 125mm Revolving Credit…
Strong Liquidity and Financial Flexibility in 000s December 31, 2016 September 30, 2017 December 31, 2017 Cash 4,521 23,906 5,662 Revolver - - - Term loan1 189,715 189,039 194,365 Other notes payable 6,705 4,191 3,054 Total debt…
Q4 2017 Summary Statements of Operations Unaudited Quarterly Consolidated Statements of Operations (Amounts in thousands, except per unit amounts) 1) Financial information has been recast to include the financial position and…
Q4 2017 Summary EBITDA, Adjusted EBITDA, DCF Unaudited EBITDA, Adjusted EBITDA and Distributable Cash Flow (Amounts in thousands) 1) Maintenance and replacement capital expenditures, including accrual for reserve replacement, were…
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 Permian Type White White White White Pearl Reserve Life1…
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 63% of railcars…
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