Hi-Crush Partners LP — Q4 2019 Earnings Presentation
21 slides from Hi-Crush Partners LP's earnings presentation, Feb 19, 2020
Slide 1: Q4 2019 Earnings Presentation
Q4 2019 Earnings Presentation February 2020 Hi-Crush, Inc. (NYSE: HCR)
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: Operational Update & Strategy
Operational Update & Strategy
Slide 4: Fully-Integrated Solutions Offering
Fully-Integrated Solutions Offering Benefits of our efficient, reliable, high- quality, technology-enabled solutions: Increased drilling & completion efficiency Lower cost for us and our customers Ability to remain responsive to customer needs Differentiated sustainability & safety benefits Investor
Slide 5: Differentiation in a Fragmented Industry
Differentiation in a Fragmented Industry We are the only full-service solutions provider in highly-fragmented industry Fully-integrated Generates sustainable, platform reduces costs long-term value for all for us and customers stakeholders Partners closely Delivers higher with E&P margin via increas
Slide 6: 4Q and FY19 Results
4Q and FY19 Results 4Q19 and FY19 Current Updates • Last mile truckloads delivered were steady • Achieved record monthly truckloads of for much of 4Q19; seasonal decline in the ~30,700 in January 2020 last two weeks of December • Commencing work throughout 1Q20 • FY19 total truckloads of ~264,000 fo
Slide 7: Fully-Integrated Platform
Fully-Integrated Platform Customer Solutions Logistics Mobile Solution Equipment Flexible solutions Mobile processing units Silos & container Real-time logistics and inventory management software In-Basin Terminal Network Northern White Production facilities Owned & operated Production facilities Fu
Slide 8: Integrated Platform Tailored to Serve E&Ps
Integrated Platform Tailored to Serve E&Ps E&P Benefits Expansion of sales to E&P Hi-Crush Benefits of Aligning with Hi-Crush customers driven by of Aligning with E&Ps accelerating adoption of Dedicated frac sand provider last-mile services E&Ps value strategic with sand, silos, containers relat
Slide 9: Our Operational Reach
Our Operational Reach All Basins Bakken Highlights Wisconsin Marcellus / Utica • Pronghorn last mile solutions operating in all major basins Powder River • NexStage deploying innovative equipment supporting efficient last mile delivery and wellsite management DJ / Niobrara MidCon • Hi-Crush sand pro
Slide 10: PropDispatch: Real-Time Logistics Management
PropDispatch: Real-Time Logistics Management Key Benefits Increased efficiency: Reduce landed sand Real-time monitoring of truckloads cost with real-time data on turn times, driver between transload & well pad performance, congestion and demurrage Enhanced stage reporting: Delivers Manages and d
Slide 11: Corporate Values Evidence Commitment to ESG
Corporate Values Evidence Commitment to ESG Evidence of Our Commitment Inaugural Corporate Responsibility Report (published December 2019) Hi-Crush Total Recordable Incident Rate (TRIR) 46% below industry average1 Lowest greenhouse gas emissions per ton of sand sold among reporting companies2 >90% r
Slide 12: Last Mile Innovation
=. Last Mile Innovation
Slide 13: OnCore Processing – Mobile Unit Overview
OnCore ProcessingTM – Mobile Unit Overview OnCore Processing Units Overview . Hi-Crush designed, engineered and commenced manufacturing of its first mobile processing unit . Units comprised of portable wet and dry plant equipment mounted on trailer chassis . Specialized equipment that allows for mob
Slide 14: OnCore Processing – Benefits & Impacts
OnCore Processing – Benefits & Impacts Further supports our strategy to provide significant value to customers by lowering costs and simplifying their supply chain Benefits of OnCore Solution ESG Benefits Easy mobilization and onsite setup Closer proximity to wellsite reduces trucking costs Redu
Slide 15: OnCore Processing Schematic
OnCore Processing Schematic Pronghorn truck load-out Dry plant NexStage silos WIP pile Finished sand conveyed into silos Wet plant Footprint Comparison “Fixed Plant” Mining Complex 10 1,000+ acres1 acres PATENT PENDING U.S. PAT. APP. NO. 62/901,848 1) 5 acre equipment footprint plus 5 acre reserve m
Slide 16: Financial Update
Financial Update
Slide 17: Balance Sheet & Liquidity Update
Balance Sheet & Liquidity Update Liquidity Update1 Debt Structure1 No ABL $57.6mm + Senior Notes ABL Facility Cash Borrowings ($43.9mm availability) • $450mm • $43.9mm of availability • No maturities until August • $200mm total $101.5mm 2026 capacity Total Liquidity • No ABL borrowings Liquidity No
Slide 18: Key Financial Metrics
Key Financial Metrics $ in 000s, except per ton 4Q 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 Revenues $ 162,235 $ 159,910 $ 178,001 $ 172,972 $ 125,487 Adjusted EBITDA1 $ 14,889 $ 17,574 $ 24,701 $ 17,900 $ 7,205 Average selling price ($/ton) $ 58 $ 48 $ 47 $ 43 $ 37 Sales volumes (tons) 1,976,805 2,411,
Slide 19: 4Q 2019: Summary – Statements of Operations
4Q 2019: Summary – Statements of Operations Unaudited Quarterly Consolidated Statements of Operations (Amounts in thousands, except per share amounts) 4Q 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 Revenues $ 162,235 $ 159,910 $ 178,001 $ 172,972 $ 125,487 Cost of goods sold (excluding depreciation, deplet
Slide 20: 4Q 2019: EBITDA, Adjusted EBITDA and Free Cash Flow
4Q 2019: EBITDA, Adjusted EBITDA and Free Cash Flow Unaudited EBITDA and Adjusted EBITDA (Amounts in thousands) 4Q 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 Reconciliation of Adjusted EBITDA to net loss: Net loss $ (9,930) $ (6,207) $ (117,484) $ (268,497) $ (21,371) Depreciation, depletion and amortizat
Slide 21: 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 | February 2020 21