Hi-Crush Partners LP (HCLP)

[dan_s]

I have updated my forecast model for HCLP and posted it to the EPG website. My valuation is $8.25/unit, compared to First Call's price target of $7.69 (which should increase after analysts digest their good Q4 results). Distributable cash flow attributable to the limited partners for the fourth quarter of 2015 was $15.7 million. No distributions to unitholders were declared for the fourth quarter as the Partnership continued its distribution suspension to conserve cash.

Hi-Crush had a good 4th quarter, considering the sharp decline in well completion activity. They've done a great job of controlling their expenses, so they should be able to generate more than enough cash flow from operations to cover their capital program for this year.

Business will be tough in the first half of 2016, but should improve in the 2nd half. HCLP continues to gain market share and should be well positioned when oil & gas price rebound.

If you own HCLP you should take the time to carefully review their Q4 earnings presentation and listen to their conference call if you have time.