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Hi-Crush Partners Has Outperformed Peers in 2018 So Far

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Nov. 20 2020, Updated 1:22 p.m. ET

HCLP’s price performance

Hi-Crush Partners (HCLP) stock is up nearly 2% in 2018. Though that’s a small rise, it becomes significant when compared to the fall in stock prices of its peers. Emerge Energy Services (EMES), Fairmount Santrol Holdings (FMSA), and U.S. Silica Holdings (SLCA) are down 12%, 19%, and 27%, respectively, year-to-date. The Alerian MLP ETF (AMLP) is down 16%. Crude oil prices are up 9% so far in 2018. For the latest on oil prices, read Does Saudi Arabia Support the Production Cut Extension?

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The above graph compares the stock performance of HCLP with its peers in 2018. Higher sales volumes and improved pricing contributed to Hi-Crush Partners’ earnings growth in 4Q17. HCLP’s distributable cash flow for 4Q17 rose 40% over 3Q17. To learn more, read Hi-Crush Partners’ 4Q17 Earnings Rose: Higher Volumes and Prices.

Expected expansion in gas and liquids takeaway capacity, stable natural gas prices, and increased proppant usage per well are expected to drive increased sand demand in the Northeast. Hi-Crush Partners owns eight terminals in the Marcellus and Utica regions with direct access to Northern White mines. Hi-Crush Partners expects that its Northern White sand will continue to have a strong demand base in the Permian due to mesh preferences.

HCLP’s moving averages

Hi-Crush Partners is trading 10% below its 50-day moving average and 8% above its 200-day moving average. HCLP’s 200-day average may act as a support for the stock in the near term. Hi-Crush Partners’ 50-day moving average crossed above its 200-day average—a bullish indicator—in January 2018.

HCLP’s yield

After eight quarters of no distributions, Hi-Crush Partners resumed distribution payments in 3Q17. It increased distributions to $0.2 per unit in 4Q17 from $0.15 per unit in 3Q17. HCLP currently yields ~6.5%. Emerge Energy Services has not paid distributions since the second quarter of 2015.

Let’s take a look at the short interest in Hi-Crush Partners next.

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