by dan_s » Sat Dec 08, 2018 1:55 pm
A takeover at this unit price would not be approved by the board.
Go look at the forecast/valuation model for HCLP, which you can find under the High Yield tab on our website.
Q4 should be about a break even quarter, but demand for frac sand is going way up in 2019.
Hi-Crush will be fine.
"Activity across the shale patch has also started to slow down. According to the world’s largest oilfield services provider Schlumberger, fracking in Q2 soared, especially in the Permian, then it leveled off in Q3, and is declining in Q4, “which will show up in the first half production numbers for 2019." Schlumberger expects U.S. activity and investment to recover during the first half next year and continues to see the weakening in fracking as temporary. “However, depending on the financial markets, the recovery will likely be measured initially and more closely aligned with cash flow, with the activity surge we experienced in the first half of 2018 unlikely to repeat,” Schlumberger Executive Vice President, Wells, Patrick Schorn said at an energy conference in New York on Wednesday." - cut from the article below.
Read more here: https://oilprice.com/Energy/Energy-General/Oil-Price-Slide-Puts-The-Brakes-On-US-Shale-Growth.html
Dan Steffens
Energy Prospectus Group