Energy Prospectus

It was reported here earlier that some railroad cars owned or leased by Hi-Crush were involved in a railroad accident in Iowa. The post was FALSE, but an honest error.

I contacted Hi-Crush and this is what I found out:
> The railroad cars involved (shown in a news report and video) were owned by Halliburton (HAL). The railroad cars had a marking of "HWCX" which is registered to Halliburton.
> The train was travelling on a route coming from Minnesota, not Wisconsin. All of Hi-Crush's Northern White sand mines are in Southern Wisconsin. They never ship sand on that route.
> Some of the railroad cars that did derail were carrying frac sand of a Hi-Crush competitor.

Regardless, the derailment was a minor accident. No one was hurt and only ~20 railroad cars were damaged.

Conclusion: NO IMPACT ON HCLP

Dan - thanks for clarifying. My mistake. The coding on the cars is the same as coding shown in one of HCLP’s presentations, so I assumed they were HCLP’s cars. Thanks for pointing out the mistake. Apologies to the EP community for my error.

No problem.

Just remember that Hi-Crush now has close to $1Billion/year of annual revenues. Although the railroad accident was serious, it would have had an insignificant impact on Hi-Crush net income even if all of the railroad cars would have been theirs. Plus, I think the railroad company would be responsible for the damages.