Hi-Crush Partners LP

[dan_s]

HCLP is one of my Top Picks in our High Yield Income Portfolio. Ms. Laura Fulton, CFO will be our speaker at Wednesday's luncheon in Dallas. We still have a few seats left, but you must register on the website if you want to attend. Click on the Calendar Tab. I will be opening with an overview of "Energy Sector MLPs for Dummies" - Dan

If you like growth + high dividend yield (and who doesn't) then I suggest you take a hard look at HCLP.
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Houston, Texas, November 6, 2013 - Hi-Crush Partners LP (NYSE: HCLP), "Hi-Crush" or the "Partnership", today reported third quarter results. Net income was $15.0 million, or $0.52 per limited partner unit, for the third quarter of 2013 and $40.5 million, or $1.45 per limited partner unit, for the nine months ended September 30, 2013.

The Partnership reported earnings before interest, taxes and depreciation and amortization ("EBITDA") of $19.2 million for the third quarter of 2013 and $47.0 million for the nine months ended September 30, 2013. EBITDA was impacted by an estimated $1.5 million due to delays in volumes taken by contract customers at the end of the quarter, as well as $1.1 million of litigation costs and non-cash inventory costs related to the D&I acquisition that are not expected to reoccur in the fourth quarter.

The Partnership's distributable cash flow for the third quarter of 2013 of $17.6 million corresponds to distribution coverage of 1.24 times the total $14.1 million in total distributions to be paid on November 15, 2013.

"We are seeing the benefits of the D&I acquisition flow through our results as we sold over 530,000 tons of frac sand in the third quarter and increased the number of customers we are serving to more than 25. We were also excited to announce the amicable settlement of the Baker Hughes litigation in early October and, in connection with the settlement, the entry into a six-year supply agreement with Baker Hughes." said James M. Whipkey, Co-Chief Executive Officer of Hi-Crush. "During the quarter, our Wyeville plant operated at close to nameplate capacity and began producing 100-mesh sand. With our distribution network, we see many opportunities ahead to increase volumes across our consolidated company."

Revenues for the quarter ended September 30, 2013 totaled $43.5 million on sales of 533,239 tons of frac sand and transload services. The average selling price of frac sand, reflecting the mix between pricing for delivery at the production facility and at the destination, was $73 per ton.

"New technology continues to drive demand for high quality proppant ever higher." said Robert E. Rasmus, Co-Chief Executive Officer of Hi-Crush. "With our low-cost operations, strategic niche in the Marcellus and Utica, and broad logistics capabilities, we are well-positioned to continue to increase our market share." Production cost for sand produced and delivered from the Wyeville facility was $13.10 per ton during the quarter.

On October 17, 2013, Hi-Crush declared its third quarter cash distribution of $0.49 per unit for all common and subordinated units, or $1.96 on an annualized basis. This amount corresponds to a 3% increase from the minimum quarterly cash distribution of $0.475 per unit, and will be paid on November 15, 2013 to all common and subordinated unitholders of record on November 1, 2013.

[dan_s]

Headlines like this kill me. The author must be trying to get price down, so he can get in on the cheap. Hi-Crush had a good quarter and Q4 should be even better. - Dan

Hi-Crush Partners Has Big Bottom-Line Miss (on Motley Fool)

By Rich Duprey
November 6, 2013

Fracking sand producer Hi-Crush Partners (NYSE: HCLP ) reported third-quarter results today before the markets opened, showing that it posted net revenues of $43.5 million, a big 73% increase from the same period in the previous year, and just ahead of the $40.36 million Capital IQ consensus estimate.

While net income came in at $15 million, or $0.52 per share, down from the $16.17 million, or $0.33 per share, in the same period in 2012, it was $0.14-per-share worse than the CapIQ estimates of $0.66 per share.

Hi-Crush had its IPO on Aug. 16, 2012, so the above results include the period from then through Sept. 30, 2012, as well as from the predecessor company period of July 1 through Aug. 31, 2012, which is why the results may seem skewed.

However, Hi-Crush says results were hurt by an estimated $1.5 million due to delays in volumes taken by contract customers as well as litigation and inventory costs related to D&I Silica that it acquired in June for $95 million cash, though they're not expected to recur in the fourth quarter.

The fracking sand producer didn't provide guidance for the coming quarter, but analysts anticipate Hi-Crush Partners will post earnings of $0.68 per share in the fourth quarter on revenues of $40.25 million.