sand
sand
So EMES has taken it on the nose after their announcement of no distribution. Do you think now would be a good time to nibble, or should we wait another quarter? It looks to me like distributions are history until we have $70 oil, and HCLP may have to cut or eliminate distributions as well.
Re: sand
Based on my forecast models, HCLP is in better shape than EMES but they should both survive and (IMO) the long-term outlook for both of them is quite good.
If WTI goes above $60/bbl, there will be a bit of a spike in demand for frac sand as the upstream companies will move to complete a bunch of wells they have already drilled. However, steady demand for sand will not happen until we see the active rig count move higher. It may be mid-2016 before that occurs.
The boards of both EMES and HCLP should do whatever it takes to survive this downturn in demand. By gaining market share, they will be much stronger during the next up-cycle.
If WTI goes above $60/bbl, there will be a bit of a spike in demand for frac sand as the upstream companies will move to complete a bunch of wells they have already drilled. However, steady demand for sand will not happen until we see the active rig count move higher. It may be mid-2016 before that occurs.
The boards of both EMES and HCLP should do whatever it takes to survive this downturn in demand. By gaining market share, they will be much stronger during the next up-cycle.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: sand
Revenues of $81 million compare to my forecast of $75 million. DCF about what I expected. - Dan
Hi-Crush Partners LP Reports Third Quarter 2015 Results, Announces Temporary Distribution Suspension
· 3Q 2015 Revenues of $81 million vs. $102 million in 3Q 2014
· 3Q 2015 Adjusted EBITDA of $13 million vs. $44 million in 3Q 2014
· 3Q 2015 $0.15 basic and diluted adjusted earnings per limited partner unit
· 3Q 2015 $0.49 basic and diluted loss per limited partner unit after impairments and other charges
Houston, Texas, October 26, 2015 - Hi-Crush Partners LP (HCLP), "Hi-Crush" or the "Partnership", today reported third quarter 2015 results. The limited partners` interest in adjusted net income, adjusted to exclude the impact of one-time expenses, was $5.6 million and the basic and diluted adjusted earnings were $0.15 per limited partner unit. The basic and diluted loss per unit during the quarter was negatively impacted by $23.7 million of one-time expenses associated with the write-down of assets acquired from D&I Silica, LLC in June 2013, as well as the costs associated with reducing headcount. Including the impact of these charges, the limited partners` interest in net loss was $18.1 million for the third quarter of 2015, resulting in basic and diluted loss of $0.49 per limited partner unit.
Of the $23.7 million of one-time charges taken during the third quarter of 2015, $23.1 million were non-cash, while the remaining charges were related to severance, and costs associated with the realignment of development and operational priorities. Excluding the non-cash portion of the impairments and other expenses, the Partnership reported adjusted earnings before interest, taxes and depreciation and amortization ("Adjusted EBITDA") of $13.4 million for the third quarter of 2015. Distributable cash flow attributable to the limited partners for the third quarter of 2015 was $10.3 million.
Hi-Crush Partners LP Reports Third Quarter 2015 Results, Announces Temporary Distribution Suspension
· 3Q 2015 Revenues of $81 million vs. $102 million in 3Q 2014
· 3Q 2015 Adjusted EBITDA of $13 million vs. $44 million in 3Q 2014
· 3Q 2015 $0.15 basic and diluted adjusted earnings per limited partner unit
· 3Q 2015 $0.49 basic and diluted loss per limited partner unit after impairments and other charges
Houston, Texas, October 26, 2015 - Hi-Crush Partners LP (HCLP), "Hi-Crush" or the "Partnership", today reported third quarter 2015 results. The limited partners` interest in adjusted net income, adjusted to exclude the impact of one-time expenses, was $5.6 million and the basic and diluted adjusted earnings were $0.15 per limited partner unit. The basic and diluted loss per unit during the quarter was negatively impacted by $23.7 million of one-time expenses associated with the write-down of assets acquired from D&I Silica, LLC in June 2013, as well as the costs associated with reducing headcount. Including the impact of these charges, the limited partners` interest in net loss was $18.1 million for the third quarter of 2015, resulting in basic and diluted loss of $0.49 per limited partner unit.
Of the $23.7 million of one-time charges taken during the third quarter of 2015, $23.1 million were non-cash, while the remaining charges were related to severance, and costs associated with the realignment of development and operational priorities. Excluding the non-cash portion of the impairments and other expenses, the Partnership reported adjusted earnings before interest, taxes and depreciation and amortization ("Adjusted EBITDA") of $13.4 million for the third quarter of 2015. Distributable cash flow attributable to the limited partners for the third quarter of 2015 was $10.3 million.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group