Boston, MA 05/15/2014 (wallstreetpr) – Hi-Crush Partners LP (NYSE:HCLP) reported first quarter 2014 results with net income of $14.3 million and distribution per unit of $0.49 in the first quarter of 2014 (1Q2013: $10.8 million or $0.40 per unit).
1Q2014 highlights
Hi-Crush Partners LP (NYSE:HCLP)’s net income was affected due to severe weather conditions in January that reduced the volumes. In addition, higher transport costs further compressed the bottom line performance.
During 1Q2014, Hi-Crush signed long-term contracts with new customers and amended several contracts that increased the production volume, therefore, its revenue increased significantly. The Company sold ~633K tons of frac sand and transload services that increased the revenue to $55.8 million compared to $20 million a year’s ego (1Q2013). The average selling price of frac sand during the quarter was $76 per ton, including the pricing for delivery.
In 1Q2014, production cost for sand produced and delivered was $15.53 per ton lowers than the same quarter 2013 due to lower production volume from Wyeville facility. But, the associated costs related to processing, transportation and delivery to customers affect the overall gross profit considerably during the period. Higher natural gas prices improved the revenue, so, the gross profit rose by 26% year over year to $17.5 million (1Q2013: $13.9 million).
The increasing revenue and gross profit improved Hi-Crush Partners LP (NYSE:HCLP)’s EBITDA to $19.2 million in 1Q2014 (1Q2013: $11.4 million) and distributable cash flow to $17.4 million (1Q2013: $14.5 million). Distributable cash flow increased due to higher operating income and low maintenance and replacement capital costs.
Higher repayment of credit facility compressed the net cash balance of Hi-Crush to $7.3 million as of March 31, 2014.
Outlook
Hi-Crush acquired Augusta facility in 2013 to increase its production capacity. Acquisition of Augusta and expansion of Whitehall facility will be accretive to Hi-Crush profitability growth as it will increase the production capacity to 4.2 million tons by 3Q2014. As a result of current trends, Hi-Crush Partners LP (NYSE:HCLP) expects growth in EBITDA to $115-$135 million and distributable cash flow of $100-$130 million with distributions per unit of $2.30-$2.50 by FY2014.
