Hi-Crush Partners LP Announces an Amendment to a Customer Contract, the Restarting of the Augusta Facility and the Completion...
September 12 2016 - 6:00AM
News Release
Houston, Texas, September 12, 2016
- Hi-Crush Partners LP (NYSE: HCLP), "Hi-Crush" or the
"Partnership", announced today that it has entered into an
amendment to a material contract with a customer and, as a result,
has decided to restart production at its frac sand facility in
Augusta, Wisconsin in order to meet the growing demand. It was also
announced that the Partnership completed the previously announced
acquisition of the Blair facility on August 31, 2016.
"We're very excited to be
reopening the Augusta facility," said Bob Rasmus, Chief Executive
Officer of Hi-Crush. "Throughout the downturn, we have continued to
run our Wyeville plant near its full capacity as we match our
customer demand with our most efficient and lowest cost facilities.
While there has been demand for certain grades of sand that would
have fit the Augusta product mix and rail origin, order visibility
was low and demand was below levels needed to justify producing
from that facilty. The contract amendment we announced today
provides the visibility and sustainability of demand to enable us
to operate at the efficiencies and cost structure we require."
The Augusta facility is a 2.86
million ton per year facility located in Wisconsin directly on a
Union Pacific mainline. Its 41 million tons of reserves consist
solely of high quality Northern White frac sand. Augusta is 98
percent owned by the Partnership, with the remaining 2 percent held
by the Partnership's general partner, Hi-Crush Proppants LLC. The
Blair, Wisconsin facility is a 2.86 million ton per year facility
located directly on the Canadian National Railway. Construction of
the fully-integrated, unit-train capable Blair facility, with 8
miles of rail track, was completed in March 2016 and includes
approximately 120 million tons of 20/100 frac sand reserves located
on 1,285 acres.
"With the completion of the Blair
acquisition and restarting of Augusta, Hi-Crush is poised to
capture long-term, profitable market share as we move forward into
the recovery," said Laura Fulton, Chief Financial Officer of
Hi-Crush. "As of August 31, 2016, the Partnership had $111 million
of liquidity, giving us the flexibility and opportunity to capture
value in the recovery."
"We are proud of how our employees
have performed throughout this downturn," Mr. Rasmus added. "Their
commitment to service is a key element in maintaining the strong
relationships we have forged with our customers as they continue to
rely on Hi-Crush to meet their growing frac sand supply chain
needs. The contract amendment we announced today is a good example
of how these relationships have endured through the downturn and
how they will expand in the recovery."
About
Hi-Crush
Hi-Crush is an integrated producer, transporter, marketer and
distributor of high-quality monocrystalline sand, a specialized
mineral that is used as a proppant to enhance the recovery rates of
hydrocarbons from oil and natural gas wells. Hi-Crush's reserves,
which are located in Wisconsin, consist of "Northern White" sand, a
resource that exists predominately in Wisconsin and limited
portions of the upper Midwest region of the United States. Hi-Crush
owns and operates the largest distribution network in the Marcellus
and Utica shales, and has distribution capabilities throughout
North America. For more information, visit
www.hicrushpartners.com.
Forward-Looking
Statements
Some of the information in this news release may contain
forward-looking statements. Forward-looking statements give our
current expectations, and contain projections of results of
operations or of financial condition, or forecasts of future
events. Words such as "may," "assume," "forecast," "position,"
"predict," "strategy," "expect," "intend," "plan," "estimate,"
"anticipate," "could," "believe," "project," "budget," "potential,"
or "continue," and similar expressions are used to identify
forward-looking statements. They can be affected by assumptions
used or by known or unknown risks or uncertainties. Consequently,
no forward-looking statements can be guaranteed. When considering
these forward-looking statements, you should keep in mind the risk
factors and other cautionary statements in Hi-Crush's reports filed
with the SEC, including those described under 1A of Hi-Crush's Form
10-K for the year ended December 31, 2015 and any subsequently
filed 10-Q. Actual results may vary materially. You are cautioned
not to place undue reliance on any forward-looking statements. You
should also understand that it is not possible to predict or
identify all such factors and should not consider the risk factors
in our reports filed with the SEC or the following list to be a
complete statement of all potential risks and uncertainties.
Factors that could cause our actual results to differ materially
from the results contemplated by such forward looking statements
include: the volume of frac sand we are able to sell; the price at
which we are able to sell frac sand; the outcome of any litigation,
claims or assessments, including unasserted claims; changes in the
price and availability of natural gas or electricity; changes in
prevailing economic conditions; and difficulty collecting
receivables. All forward-looking statements are expressly qualified
in their entirety by the foregoing cautionary statements.
Hi-Crush's forward-looking statements speak only as of the date
made and Hi-Crush undertakes no obligation to update or revise its
forward-looking statements, whether as a result of new information,
future events or otherwise.
Investor Relations
ir@hicrushpartners.com
(713) 980-6270
Marc Silverberg, ICR Inc.
marc.silverberg@icrinc.com
(646) 277-1293
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Hi-Crush Partners LP via Globenewswire
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