Hi-Crush Partners LP — Q3 2019 Earnings Presentation
19 slides from Hi-Crush Partners LP's earnings presentation, Nov 5, 2019
Slide 1: Hi-Crush Inc. Investor Presentation November 2019
Hi-Crush Inc. (NYSE: HCR) Investor Presentation November 2019
Slide 2: Forward Looking Statements and Non-GAAP Measures
Forward Looking Statements and Non-GAAP Measures Forward-Looking Statements and Cautionary Statements Some of the information in this presentation may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exc
Slide 3: The Hi-Crush Value Proposition
The Hi-Crush Value Proposition Investor value creation Leading customer service delivering reliability, safety and efficiency Financial discipline focused on flexibility and efficient capital allocation Fully-integrated platform to most efficiently service customers Supplier of essential products an
Slide 4: Corporate Values Evidence Commitment to ESG
Corporate Values Evidence Commitment to ESG Evidence of Our Commitment Behavior-based safety program Our values guide everything ingrained in all aspects of our culture; we do. We are constantly LTIR1 for 2018 (0.78) 35% better than mining industry average (1.2) looking for ways to ensure the protec
Slide 5: Our Financial Priorities
Our Financial Priorities What We’re Focused On Strong Liquidity and Balance Sheet $95.9mm million of liquidity1; no Maintaining strong liquidity including cash and ABL covenants or near-term debt availability; balance sheet supports financial flexibility maturities Free Cash Flow Generation Signif
Slide 6: Balance Sheet & Liquidity Update
Balance Sheet & Liquidity Update No near-term Highly flexible Prioritizing maturities balance sheet balance sheet or covenant position & liquidity restrictions Liquidity Update1 Debt Structure1 Senior Notes ABL Facility $48.4mm No borrowings $450mm $200mm Cash + on ABL Facility $401.6mm net $47.5mm
Slide 7: Quarterly Update
Quarterly Update 3Q19 progress aligned with our new organizational structure Achieved 3Q19 quarterly sales volume of 2.7mm tons; slight 63% increase over 2Q19 volumes of quarterly sales volumes in 3Q19 and at the high-end of the sold to E&P customers guidance range 66% 63% 63% Continue to deploy enh
Slide 8: Operational Strategy
Operational Strategy 8
Slide 9: Committed to Our Strategy
Committed to Our Strategy Strategy built on delivering value and driving long-term success Innovating Focusing on Deploying Delivering Proppant Serving Proprietary Low-cost Logistics Customers Technology Production Solutions Investor Presentation November 2019 | 9
Slide 10: Our Fully-Integrated Platform
Our Fully-Integrated Platform Customer Solutions Logistics Equipment Flexible solutions Silos & containers Real-time logistics and inventory management Terminal Network Owned & operated In-Basin Northern White Production facilities Production facilities Fully-Integrated Platform Investor Presentatio
Slide 11: Our Operational Reach
Our Operational Reach Bakken Marcellus / Utica Wisconsin Highlights • Pronghorn last mile solutions operating in all major basins All Basins • Hi-Crush sand production facilities and Powder River terminal network meet customers demand for flexible, efficient sand Mid-Con supply • NexStage innovative
Slide 12: Mutually Beneficial E&P Partnership Strategy
Mutually Beneficial E&P Partnership Strategy E&P Benefits of Aligning with Hi-Crush HCR Benefits of Aligning with E&Ps Dedicated frac sand provider with sand, Relationships: Long project lead times and silos and containers significant capital requirements drive E&Ps to value strategic relationships
Slide 13: PropDispatch: Real-Time Logistics Management
PropDispatch: Real-Time Logistics Management Advancing our last mile platform with best in class technology PropDispatch Software • Manages and displays on-pad inventory, in containers or silos, to accurately provide volume delivered downhole and minimize or eliminate trucking demurrage • Enables di
Slide 14: Driving Efficiency Through Technology & Equipment
Driving Efficiency Through Technology & Equipment Meaningful opportunities exist to capture efficiencies that lead to lowest cost at the blender Dispatch to Load Time at Travel Time to Unload Time at Load Time Origin Destination Destination Creates significant logistics Flexible selection of equ
Slide 15: Financial Update
Financial Update 15
Slide 16: Key Financial Metrics
Key Financial Metrics $ in 000s, except per ton Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Revenues $ 213,972 $ 162,235 $ 159,910 $178,001 $172,972 Adjusted EBITDA1 $ 52,048 $ 14,889 $ 17,574 $24,701 $17,900 Average selling price ($/ton) $ 64 $ 58 $ 48 $47 $43 Sales volumes (tons) 2,775,360 1,976,805 2
Slide 17: Q3 2019: Summary – Statements of Operations
Q3 2019: Summary – Statements of Operations Unaudited Quarterly Consolidated Statements of Operations (Amounts in thousands, except per share amounts) Q3 2018 (1) Q4 2018 Q1 2019 Q2 2019 Q3 2019 Revenues $ 213,972 $ 162,235 $ 159,910 $ 178,001 $ 172,972 Cost of goods sold (excluding depreciation, de
Slide 18: Q3 2019: EBITDA, Adjusted EBITDA and Free Cash Flow
Q3 2019: EBITDA, Adjusted EBITDA and Free Cash Flow Unaudited EBITDA and Adjusted EBITDA (Amounts in thousands) Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Reconciliation of Adjusted EBITDA to net income (loss): Net income (loss) $ 27,138 $ (9,930) $ (6,207) $ (117,484) $ (268,497) Depreciation, depleti
Slide 19: Investor Contacts
Investor Contacts Caldwell Bailey Manager, Investor Relations Marc Silverberg Managing Director (ICR, Inc.) Phone: (713) 980-6270 E-mail: ir@hicrushinc.com Investor Presentation November 2019 | 19