Investor Presentation February 2019 NYSE: HCLP hicrush.com
Business Update 3
Hi-Crushs Unique Service Offering U.S. Smart Covia Emerge Solaris Silica Sand Northern White MINE. Sand Facilities In-Basin Sand Facilities Owned & Operated Terminal Network MOVE. Containerized Last Mile Solution…
Latest Business Updates Strategic Development: New Contracts: Completed construction of the second Executed contracts with several new Kermit facility on time and under budget. E&P customers for additional Customer-driven expansion…
Remaining Proactive in Our Evolution STRATEGIC FINANCIAL STRUCTURAL Expanding our fully- Strong 172 million Process for conversion integrated last mile liquidity position; from MLP to a C-Corp offering; the only includes 114…
Q4 2018 Operational Highlights Quarterly Highlights 51% Success in Direct Sales to E&Ps Volumes sold direct to E&P customers 51% of sales volumes in Q4 2018 sold to E&Ps, up from 40% in Q3 2018 60% of currently operating capacity…
Continued Focus on Logistics Expansion Hi-Crush continues to execute on its Mine. Move. Manage. operating strategy through the expansion of its industry-leading proppant logistics platform Platform Evolution FB Atlas top-fill…
The Premier Last Mile Service with Unrivaled Flexibility PropStream is the industrys most flexible and only fully-integrated last mile service offering both containers and silos Containers Silo System Flexible wellsite footprint Easy…
Growing Relationships with E&Ps PropStreams integrated proppant logistics service complements Hi-Crushs focus on serving E&P customers 1 Container Crews 51% of Q4 2018 volumes sold direct 1 Silo Systems 51% to E&Ps % E&P Sales…
Hi-Crush Benefits of Aligning with E&P Customers Relationship Driven: Better Visibility: Long project lead times and Closer relationships provide significant capital greater visibility into requirements drive E&Ps to…
E&P Customer Benefits of Aligning with Hi-Crush Aligning with Hi-Crush supports enhanced operations and efficiency Dedicated frac sand Optionality in last mile Diversification across provider with sand, and in-basin delivery regions…
Maintaining Capital Discipline Cash balance at the end of 2018 exceeds expected 2019 carryover growth Maintaining capex and maintenance capex by 50 million Capex Flexibility Discretionary growth capex in 2019 is flexible based on…
Sustainable Capital Position Balance sheet flexibility enables Hi-Crush to respond to changing market dynamics and opportunities Strong Flexible Conservative Cash & liquidity Capital position Leverage 114mm1 No 445mm / 331mm1…
Liquidity Position Alone Covers Obligations More than ample liquidity to meet 2019 capital uses 2019 EBITDA ABL Facility Discretionary availability1 growth capex Maintenance capex 2018 carryover growth capex Cash2 Debt…
Corporate Conversion Process Update Simplify Current Corporate Structure Remove structural hurdles to conversion and align interests of management and the unitholders Determine Optimal Conversion Structure Due diligence to…
Business Overview
A Differentiated Platform for Growth We provide our customers with the high-quality, cost-effective proppant and logistics services they require, when and where needed MINE. MOVE. MANAGE. 17.3mm TPY pro-forma Largest owned and…
MINE: Capacity to Meet Customer Needs Kermit Wyeville Blair Whitehall Augusta3 Capacity1 6.00mm TPY 2.70mm TPY 2.86mm TPY 2.86mm TPY 2.86mm TPY Permian Northern Northern Northern Northern Type Pearl White White White White…
MOVE: Owned and Operated Logistics Network Wisconsin Logistics Network Bakken Augusta Ensures customer service priority and quality, and Blair lowers cost to deliver Whitehall volumes in basin by Marcellus / avoiding transload…
MANAGE: Flexible Solutions for Our Customers E&P MINE. MOVE. MANAGE. Customer Priorities Our ability to offer customers the option of container- and silo-based last mile Surety of solution enables optimization of logistics for each…
Financial Results & Outlook 22
Financial & Operating Outlook Metric Guidance Value Period Quarterly sales volumes 2.4 2.6 million tons Q1 2019 Capital expenditures: 2018 carryover growth capex 30 35 million 1H 2019 Maintenance capex 25 30 million FY 2019…
Key Financial Metrics in 000s, except per ton Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Revenues 216,456 218,113 248,520 213,972 162,235 Adjusted EBITDA1 57,924 64,062 80,552 51,347 10,179 Average selling price (/ton) 71 73 70 64 58…
Q4 2018 Summary Statements of Operations Unaudited Quarterly Consolidated Statements of Operations (Amounts in thousands, except per unit amounts) Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Revenues 216,456 218,113 248,520 213,972…
Q4 2018 Summary EBITDA, Adjusted EBITDA, DCF Unaudited EBITDA, Adjusted EBITDA and Distributable Cash Flow (Amounts in thousands) Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Reconciliation of distributable cash flow to net income: Net…
Fortress Balance Sheet Strong liquidity and financial flexibility, no maturities before 2023 and no maintenance covenants in 000s December 31, 2017 December 31, 2018 Cash 7,724 114,256 Revolver/ABL Facility - - Term loan1 194,365…
Investor Contacts Caldwell Bailey Lead Analyst, Investor Relations Marc Silverberg Managing Director (ICR, Inc.) Phone: (713) 980-6270 E-mail: irhicrush.com 29
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