Emerge Energy Services LP announced second quarter 2017 financial and operating results:
• Total volumes sold increased 11.3 percent from 1,251 thousand tons in the first quarter of 2017 to 1,392 thousand tons in the second quarter of 2017.
• Net loss improved $5.3 million from $11.4 million for the first quarter of 2017 to $6.1 million for the second quarter of 2017.
• Adjusted EBITDA improved $7.4 million from $68 thousand for the first quarter of 2017 to $7.5 million for the second quarter of 2017.
Emerge Energy reported a net loss of $6.1 million, or $0.20 per unit, for the three months ended June 30, 2017, compared to a net loss of $22.9 million, or $0.95 per unit, for the three months ended June 30, 2016.
“During the second quarter, we built on our positive momentum that started earlier this year,” said Ted W. Beneski, chairman of the board of directors of the general partner of Emerge Energy. “The frac sand industry remains one of the strongest growth areas in oil and gas completions activity. We have approached full utilization at our Wisconsin plants, so we are excited about growing the business through the expansion of our newly acquired San Antonio in-basin operation. With industry demand still outstripping supply, especially on the finer grades, prices for sand have continued to rise as we begin the second half of the year. Our volumes increased by 11.3 percent sequentially to 1,392 thousand tons, which reflects another record quarter. Our northern white volumes in the second quarter were partially constrained by railroad congestion from the Class I carriers due to the high volume of shipments that have surpassed prior peak periods. We are working closely with our logistics partners to resolve the bottlenecks during this period of surging demand. We are also pleased to announce that our San Antonio plant commenced frac sand operations at the end of July. Our improved capabilities of producing in-basin frac sand and the market’s strong underlying fundamentals have Emerge Energy very well positioned for a successful second half of the year.”