Higher EBITDA

Hi-Crush Partners (HCLP) reported its 3Q17 results on October 31, 2017. The company’s EBITDA (earnings before interest, tax, depreciation, and amortization) rose 56% from 2Q17 to $41.8 million in 3Q17. Hi-Crush Partner’s distributable cash flow rose 64% to $37.5 million in 3Q17. The earnings growth during the quarter was driven by higher sand volumes sold and newer projects placed into service.

Hi-Crush Partners’ 3Q17 Earnings: Higher Volumes and New Projects

After several quarters of negative distributable cash flow, Hi-Crush Partners reported a very small positive distributable cash flow in 1Q17. Its distributable cash flow rose significantly in 2Q17 and 3Q17. A recovery in the drilling activity contributed to Hi-Crush Partners’ earnings in the last few quarters.

Hi-Crush Partners’ 3Q17 Earnings: Higher Volumes and New Projects

The above graph shows Hi-Crush Partners’ distributable cash flow and capital expenditures in the last seven quarters. The company’s capital expenditures in 3Q17 were $40.2 million.

Hi-Crush Partners’ capital expenditures for 3Q17 included the expenditure on its Kermit facility, Pecos terminal facility, and equipment for its PropStream solution. Hi-Crush Partners expects to spend $7 million–$17 million on capital expenditures during 4Q17. For 2018, Hi-Crush Partners expects to spend $35 million–$45 million on capital projects.

Distribution resumption

On October 17, 2017, Hi-Crush Partners announced a distribution of $0.15 per unit for 3Q17. It hadn’t paid any distributions for the last eight quarters. Hi-Crush Partners also announced a unit buyback program of up to $100 million.

“With this initial distribution, we are setting the foundation for sustainable and meaningful growth over the near and long term,” said Robert E. Rasmus, Hi-Crush Partners CEO.

Based on the 3Q17 distributions, Hi-Crush Partners is trading at a yield of ~5.7%. The SPDR S&P 500 ETF (SPY) (SPX-INDEX) yields nearly 2%.

Emerge Energy Services (EMES) is scheduled to report its 3Q17 results on November 1, 2017.

In the next part, we’ll analyze the growth in Hi-Crush Partners’ sand volumes sold.

Latest articles

Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.

The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.

Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.

Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.

14 Jun

IEA Again Slashes Its Oil Demand Growth Estimate

WRITTEN BY Rabindra Samanta

As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.

14 Jun

Why Kimberly-Clark Stock May Stop Rising

WRITTEN BY Amit Singh

Kimberly-Clark (KMB) stock has risen 20.5% this year, boosted by the company’s better-than-expected sales and earnings during its last reported quarter. However, its stock could stop climbing. Here's why.

172.31.38.64