4TH QUARTER & FULL-YEAR 2014 RESULTS FEBRUARY 3, 2015
2014: A Record Year 2014 2013 Q4 2014 Q4 2013 ( in 000s) Revenues 386,547 178,970 130,929 63,975 EBITDA 148,015 73,534 44,567 24,418 Sales volumes 4,584,811 2,520,119 1,481,914 814,094 Production costs per ton 15.78 18.74 15.72…
Balance Sheet is Strong Leverage (as of December 31, 2014) ( in 000s) Cash 4,646 1 Revolver - 2 Term loan 196,688 Other notes payable 3,676 Total debt 200,364 Net debt 195,718 Net debt / EBITDA 1.32x (1) Revolving…
Committed to Growing Distribution Long-Term Pattern of raising distribution with quarterly increases 32% increase from distribution paid Q1 2014 vs paid Q1 2015 Delivered on guidance of 2.30-2.50 per unit distribution range in 2014…
Strong Coverage Provides Flexibility for Growth Strong coverage ratio averaging above target coverage of 1.20x Average since Q1 2013 of 1.26x Coverage provides flexibility in volatile market conditions and supports organic growth 35…
Frac Sand Demand Commentary E&P operators are using fracture stimulation techniques, such as longer laterals, increased frac stages per well, and increased proppant per stage to drive well performance These activities are driving…
Hi-Crush Operations
Hi-Crushs Competitive Advantages Long-Term Contracted Cash Flow 6.6 mm Take-or-Pay Tons in 2015, 4.2 yrs Remaining Low-Cost Producer 88% of Production Capacity Contracted Long-Lived, High Quality Reserves Strong Northern White…
Hi-Crush Ranks Among Largest in Industry With 7.5 million tons current capacity, Hi-Crush is estimated to have: The largest production capacity of frac sand in Wisconsin. The fourth largest production capacity of frac sand…
Frac Sand Capacity Frac Sand Market Structure (1) Top 10 Producers Hold 75% of Tier-One Capacity (1) (2) 20% 19% 14% 8% 8% 3% 7% 3% 11% 27% 73% 7% 3% 29% 5% 11% 5% 10% 10% Company A Hi-Crush Company B Non tier…
Contracts Indicative of Partnership with Customers 8 Contract Customers 4.2 Year Nearest maturity is 12/31/16 Average Life Remainder mature at the end of 2018 through 2019 2.8 Year Average Life 2.5 Year Average Life 1.2…
Low Cost Structure Essential Hi-Crush Partners Production Costs per Ton Produced and Delivered 25.00 1,200,000 1,000,000 20.00 800,000 15.00 600,000 10.00 400,000 5.00 200,000 0.00 1Q 2013 2Q 2013 3Q 2013 4Q…
Logistics Flexibility Critical Access to all major U.S. oil and gas basins Sponsors Whitehall Facility Direct loading and unloading of unit trains Sandstone Formations Multiple in-basin terminals across Marcellus and Utica…
Positioned to Meet Challenges & Opportunities Northern White in highest demand relative to other proppant types 6.6 million contracted take-or-pay tons in 2015: 88% of production capacity All contracts held by HCLP Lowest cost…
Levers for Further Performance 20
Financial Results
4th Quarter 2014 Summary Three Months Ended December 31, (in thousands, except per unit) 2014 2013(a) Revenues 130,929 63,975 Cost of goods sold (including depreciation, depletion and amortization) 82,319 37,271 Gross profit…
Full-Year 2014 Summary Year Ended December 31, (in thousands, except per unit) 2014(a) 2013(a) Revenues 386,547 178,970 Cost of goods sold (including depreciation, depletion and amortization) 225,984 95,884 Gross profit 160,563…
4th Quarter 2014 Summary Three Months Ended December 31, (in thousands) 2014 2013 Reconciliation of distributable cash flow to net income: Net income 38,379 19,513 Depreciation and depletion expense 2,277 1,873 Amortization…
Full-Year 2014 Summary Year Ended December 31, (in thousands) 2014 2013 Reconciliation of distributable cash flow to net income: Net income 124,025 60,044 Depreciation and depletion expense 8,858 6,132 Amortization expense 5,186…
Production Costs per Ton Produced and Sold Hi-Crush Partners LP (Wyeville & Augusta)(1) Production Cost per Ton Fiscal Quarter 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 Tons produced and delivered 382,607…
Appendix
A Portfolio of Opportunity Wisconsin 7.5 million tons of annual production Sponsors Whitehall Facility capacity, including 100 mesh Over 30 years of reserves Marcellus & Utica Sandstone Formations Exclusive rail access Largest…
Our Business Model Q4 2014 Operating Results Tons produced and delivered 1,005,492 Tons sold 1,481,914 Production cost/ton 15.72 Hi-Crush plants Sold FOB plant direct to customer (67%) Sold at the Sand delivered terminal…
Tons Sold FOB Mine During the Quarter Q4 2014 FOB Mine Sales (1) (3) (2) 33% 67% 51% 22% Permian / Eagle Ford Volume FOB Mine Marcellus / Utica Sold at Volume Colorado Terminals Oklahoma Other 13% 11% 3% (1)…
Hi-Crush Terminals Addressing Customer Needs 1 2 Q4 2014 Sand transported by Sand sourced from rail to destination mine terminal Ability to source from Hi-Crush On-site rail access is significant mines, the Sponsors Whitehall…
Rail Access Provides Direct Link from Mine to Basin Class-1 rail lines provide efficient and cost effective access to drilling activity Majority of sand sold into leading areas of activity 2014 Projected Capex by Play (1) ( in…
Proven Production Execution 7.5 MM tons/yr Nameplate capacity of 20/70 sand 6.8 MM 100 mesh tons/yr 4.6 MM tons/yr 3.6 MM tons/yr 4.2 MM tons/yr 3.2 MM tons/yr Wyeville + Wyeville Augusta + + 1.6 MM Augusta Augusta…
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