We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Hi-Crush Partners LP incurred net loss of $9.9 million or 8 cents per share in fourth-quarter 2018, against net income of $41.9 million or 47 cents in the year-ago quarter. The figure was wider than the Zacks Consensus Estimate of a loss of 6 cents.
Revenues plunged roughly 25% year over year to $162.2 million. Nevertheless, the figure surpassed the Zacks Consensus Estimate of $149.3 million. Lower pricing and reduced volumes are attributable to decline in revenues.
Notably, lower pricing was the result of the slowdown in demand for frac sand that started during the third quarter and continued into the fourth quarter, due to reduced well completion activity.
Total frac sand sold during the quarter was 1,976,805 tons, down 33.8% year over year. Contribution margin per ton sold was down 38.8% year over year to $14.35. Average sales price was $58 per ton, down 18.3% year over year.
Sales volumes to E&Ps contributed 51% to total sales, compared with 40% in the third quarter of 2018. Also, 36% of the total sales volumes were sold at the wellsite through PropStream compared with 24% in the third quarter.
2018 Highlights
In 2018, revenues jumped around 39.9% year over year to $842.8 million. The partnership generated a net income of $137.6 million or $1.42 per share, up from $76.2 million or 96 cents a year ago.
Total frac sand sold in 2018 was 10,407,296 tons, up 16.4% year over year. Contribution margin per ton sold rose 38.5% on a year-over-year basis to $25.45.
Hi-Crush Partners LP Price, Consensus and EPS Surprise
As of Dec 31, 2018, the partnership had 16 PropStream container crews in the Permian Basin and Marcellus/Utica. Also, it had 8 FB silo systems operating in the Permian. During the fourth quarter, the deployment of PropStream crews was affected by delays in contract start-ups due to budget timing considerations of customers. Hi-Crush successfully completed field testing for the new FB Atlas top-fill conveyor system with an existing E&P customer in the Permian.
Construction of the second Kermit facility was completed during the quarter, marking an increase in capacity to 6 million tons per annum. The partnership expects to reach full run-rate on the second Kermit facility in March 2019.
Financial Position
As of Dec 31, 2018, the partnership had $114.3 million in cash and $58.2 million in available capacity under the revolving credit facility.
Hi-Crush had outstanding long-term debt of roughly $445.5 million as of Dec 31, up from $197.4 million a year ago.
Distribution
On Jan 7, the partnership’s board decided to suspend quarterly distribution considering the challenging environment.
Outlook
The partnership expects total sales volumes for the first quarter in the range of 2.4-2.6 million tons. Notably, the projections reflect a sequential increase driven by additional volumes sold from the second Kermit facility along with increasing Northern White volumes associated with the new E&P contracts.
Moreover, the partnership expects average sand pricing to remain unchanged in the first quarter, irrespective of higher activity levels.
Price Performance
Hi-Crush’s shares have plunged 63.4% in the past year compared with the industry’s 4.4% decline.
Zacks Rank & Stocks to Consider
Hi-Crush currently carries a Zacks Rank #5 (Strong Sell).
Rio Tinto has an expected earnings growth rate of 8.4% for 2019. The company’s shares have moved up 1.9% in the past year.
Israel Chemicals has an expected earnings growth rate of 11.1% for 2019. Its shares have rallied 45.5% in a year’s time.
Cameco has an expected earnings growth rate of 18.5% for 2019. Its shares have surged 39.7% in a year’s time.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research. It's not the one you think.
Image: Bigstock
Hi-Crush (HCLP) Q4 Earnings Miss, Revenues Beat Estimates
Hi-Crush Partners LP incurred net loss of $9.9 million or 8 cents per share in fourth-quarter 2018, against net income of $41.9 million or 47 cents in the year-ago quarter. The figure was wider than the Zacks Consensus Estimate of a loss of 6 cents.
Revenues plunged roughly 25% year over year to $162.2 million. Nevertheless, the figure surpassed the Zacks Consensus Estimate of $149.3 million. Lower pricing and reduced volumes are attributable to decline in revenues.
Notably, lower pricing was the result of the slowdown in demand for frac sand that started during the third quarter and continued into the fourth quarter, due to reduced well completion activity.
Total frac sand sold during the quarter was 1,976,805 tons, down 33.8% year over year. Contribution margin per ton sold was down 38.8% year over year to $14.35. Average sales price was $58 per ton, down 18.3% year over year.
Sales volumes to E&Ps contributed 51% to total sales, compared with 40% in the third quarter of 2018. Also, 36% of the total sales volumes were sold at the wellsite through PropStream compared with 24% in the third quarter.
2018 Highlights
In 2018, revenues jumped around 39.9% year over year to $842.8 million. The partnership generated a net income of $137.6 million or $1.42 per share, up from $76.2 million or 96 cents a year ago.
Total frac sand sold in 2018 was 10,407,296 tons, up 16.4% year over year. Contribution margin per ton sold rose 38.5% on a year-over-year basis to $25.45.
Hi-Crush Partners LP Price, Consensus and EPS Surprise
Hi-Crush Partners LP Price, Consensus and EPS Surprise | Hi-Crush Partners LP Quote
Operational Update
As of Dec 31, 2018, the partnership had 16 PropStream container crews in the Permian Basin and Marcellus/Utica. Also, it had 8 FB silo systems operating in the Permian. During the fourth quarter, the deployment of PropStream crews was affected by delays in contract start-ups due to budget timing considerations of customers. Hi-Crush successfully completed field testing for the new FB Atlas top-fill conveyor system with an existing E&P customer in the Permian.
Construction of the second Kermit facility was completed during the quarter, marking an increase in capacity to 6 million tons per annum. The partnership expects to reach full run-rate on the second Kermit facility in March 2019.
Financial Position
As of Dec 31, 2018, the partnership had $114.3 million in cash and $58.2 million in available capacity under the revolving credit facility.
Hi-Crush had outstanding long-term debt of roughly $445.5 million as of Dec 31, up from $197.4 million a year ago.
Distribution
On Jan 7, the partnership’s board decided to suspend quarterly distribution considering the challenging environment.
Outlook
The partnership expects total sales volumes for the first quarter in the range of 2.4-2.6 million tons. Notably, the projections reflect a sequential increase driven by additional volumes sold from the second Kermit facility along with increasing Northern White volumes associated with the new E&P contracts.
Moreover, the partnership expects average sand pricing to remain unchanged in the first quarter, irrespective of higher activity levels.
Price Performance
Hi-Crush’s shares have plunged 63.4% in the past year compared with the industry’s 4.4% decline.
Zacks Rank & Stocks to Consider
Hi-Crush currently carries a Zacks Rank #5 (Strong Sell).
A few better-ranked stocks in the basic materials space include Rio Tinto plc (RIO - Free Report) , Cameco Corporation (CCJ - Free Report) and Israel Chemicals Ltd (ICL - Free Report) . While Rio Tinto currently sports a Zacks Rank #1 (Strong Buy), Cameco and Israel Chemicals carry Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Rio Tinto has an expected earnings growth rate of 8.4% for 2019. The company’s shares have moved up 1.9% in the past year.
Israel Chemicals has an expected earnings growth rate of 11.1% for 2019. Its shares have rallied 45.5% in a year’s time.
Cameco has an expected earnings growth rate of 18.5% for 2019. Its shares have surged 39.7% in a year’s time.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research. It's not the one you think.
See This Ticker Free >>