Dan,
I'm interested in your assessment on Hi-Crush. My general sense from quarter is that they are losing propstream container crews (possibly to self-perform). Given their move to acquire software-based logistics solutions, I suspect that Solaris offering may be eroding their mine, move, manage strategy. Just really a very poor quarter overall. I'm not sure whether to just take the loss and move on. Thoughts?
Dave
Hi Crush Results
Re: Hi Crush Results
Dave: I am looking at Hi-Crush now. Very busy these days since all of the companies I follow are releasing Q1 results faster than I can keep up.
I believe the "Big Thing" for HCLP is the conversion to a C-Corp. Very few buyers today of the MLP units because buying HCLP while it is still an MLP with get you a K-1 to mess with but no dividend. I do expect Hi-Crush to go up when it is a C-Corp. and the outlook for more well completions improves.
On February 20, 2019, the Partnership filed a definitive proxy statement with the Securities and Exchange Commission ("SEC"). The proxy statement related to a special meeting of unitholders on April 11, 2019 that was adjourned and will reconvene on May 22, 2019, at which time unitholders will be asked to consider and vote on the proposed conversion of the Partnership from a Delaware limited partnership to a Delaware corporation (the "Conversion") and related proposals, including to approve the Hi-Crush Inc. Long-Term Incentive Plan to be in effect following the consummation of the Conversion (the "LTIP Proposal").
"We appreciate all of the unitholders who have cast their votes to date, and we are pleased with the result so far, which is overwhelmingly in favor of the Conversion and the LTIP Proposal," said Mr. Rasmus. "The timing remains on track to effect the Conversion by the end of the second quarter of 2019."
I believe the "Big Thing" for HCLP is the conversion to a C-Corp. Very few buyers today of the MLP units because buying HCLP while it is still an MLP with get you a K-1 to mess with but no dividend. I do expect Hi-Crush to go up when it is a C-Corp. and the outlook for more well completions improves.
On February 20, 2019, the Partnership filed a definitive proxy statement with the Securities and Exchange Commission ("SEC"). The proxy statement related to a special meeting of unitholders on April 11, 2019 that was adjourned and will reconvene on May 22, 2019, at which time unitholders will be asked to consider and vote on the proposed conversion of the Partnership from a Delaware limited partnership to a Delaware corporation (the "Conversion") and related proposals, including to approve the Hi-Crush Inc. Long-Term Incentive Plan to be in effect following the consummation of the Conversion (the "LTIP Proposal").
"We appreciate all of the unitholders who have cast their votes to date, and we are pleased with the result so far, which is overwhelmingly in favor of the Conversion and the LTIP Proposal," said Mr. Rasmus. "The timing remains on track to effect the Conversion by the end of the second quarter of 2019."
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Hi Crush Results
I have updated my forecast/valuation model for Hi-Crush and posted it to the EPG website.
Q1 should be the low point for the year. Bad weather and general slow down in well completions s/b behind them now.
Balance sheet is in good shape with no liquidity problems.
Conversion to C-Corp is on-track to happen in Q2
Company should return to profitability in Q3
Company should be generating plenty of DCF in 2H 2019; enough to begin paying dividends again.
Q1 should be the low point for the year. Bad weather and general slow down in well completions s/b behind them now.
Balance sheet is in good shape with no liquidity problems.
Conversion to C-Corp is on-track to happen in Q2
Company should return to profitability in Q3
Company should be generating plenty of DCF in 2H 2019; enough to begin paying dividends again.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group