HCLP

[dan_s]

Hi-Crush Partners LP Reports Second Quarter 2014 Results [Everything beat my forecast.]

· 2Q14 Revenues of $83 million vs. $38 million in 2Q13
· 2Q14 EBITDA of $36 million vs. $17 million in 2Q13
· $0.94 earnings per unit before allocations of income to IDRs and Class B units; $0.77 basic earnings per unit
· Completed acquisition of substantially all of the remaining equity interests in Hi-Crush Augusta LLC

[dan_s]

"Distributable cash flow attributable to the Partnership for the second quarter of 2014 of $29.5 million corresponds to distribution coverage of 1.54 times the $19.1 million in distributions to be paid to common and subordinated unitholders on August 15, 2014."

Look for a lot more increases in cash distributions.

[dan_s]

"The conditions precedent to conversion of the Class B units will be satisfied upon payment of the distribution on August 15, 2014 and, upon such payment, the sponsor, who is the sole owner of the Class B units, has elected to convert all of the 3,750,000 Class B units into common units on a one-for-one basis. The sponsor will be entitled to receive a per unit distribution on the newly converted common units for the second quarter of 2014 in an amount equal to the per unit distribution to be paid to all the common and subordinated units for the same period, totaling $2.2 million to be paid on August 15, 2014."

[dan_s]

Hi-Crush Partners LP (HCLP): An updated Net Income & Cash Flow Forecast model has been posted under the MLP Tab.

The forecast looks fantastic and it is probably too conservative. Demand for their sand is red hot.

I will update the forecast again in a couple weeks when we update the profile.

My FVE is $58.47 but it is not much more than a SWAG. Cash flow is growing so fast it is tough to come up with an appropriate multiple for this one. They should be in position to raise distributions by a SIGNIFICANT amount quarter-after-quarter.