Emerge Energy Services LP announced third quarter 2017 financial and operating results. The company is reporting net income of $5.0 million and diluted earnings per unit of $0.16 for the third quarter. Total volumes sold increased 6.3 percent sequentially to 1,480 thousand tons in the third quarter.
“The business performed at a high level during the third quarter, and we are proud of our many accomplishments,” noted Ted W. Beneski, chairman of the board of directors of the general partner of Emerge Energy. “During the third quarter, we achieved positive net income from continuing operations for the first quarter in more than two years, and our revenue and profitability grew substantially over the second quarter. Pricing increased at a faster rate than we had expected three months ago, and both our total and frac sand volumes increased by 6 percent in the quarter compared to the second quarter of 2017. Total cost per ton sold also declined due to operational improvements and higher utilization of our production and logistics assets. As a result, net income (loss) from continuing operations and Adjusted EBITDA increased by nearly 260 percent and 150 percent sequentially to $5.5 million and $18.7 million, respectively, for the third quarter. We are well on track to meet or exceed our previously announced guidance of $40 million in Adjusted EBITDA for 2017. Additionally, we are continuing to make progress on our debt capital raise that will refinance our revolving credit facility and provide growth capital for the build-out of our San Antonio operation. We broke ground on construction of the phase three expansion last week, and we remain on track to have the expansion operational by early second quarter next year. As we look out to the rest of 2017 and into 2018, we believe that the business will continue to post strong results based on sustained high demand for frac sand and continued execution of our strategic initiatives.”