Hi-Crush Partners announced that it resumed operations at its Northern White frac sand production facility in Whitehall, Wis. Concurrently, the partnership announced that it has idled operations at its Northern White frac sand production facility in Augusta, Wis. “The dedicated and experienced workforce at the Augusta facility is in the process of transitioning to the operation of the Whitehall facility,” the company said.
“Our decision to resume operations at Whitehall and temporarily idle dry plant operations at our Augusta facility is a direct result of the evolving needs of our expanded E&P customer base,” said Robert E. Rasmus, chairman and chief executive officer of Hi-Crush. “Since temporarily idling Whitehall dry plant operations last fall, our success in contracting with E&Ps has increased customer demand in basins better served by that facility. This increase in demand, predominantly in the Northeast, is more directly and efficiently served from our Blair and Whitehall facilities located on the Canadian National Railway. Our decision to resume operations at Whitehall will allow us to maintain optimal, cost-efficient service to our Northern White sand customers. Our ability to quickly adapt to these changes is driven by our flexible portfolio of production facilities and agile workforce.”
“We believe that we operate the lowest cost production assets in the industry, and we constantly examine cost structures across all of our capabilities, including production, in-basin terminals, and last mile,” said Laura C. Fulton, chief financial officer of Hi-Crush. “Given our expanded existing relationships and recent success in establishing new contract relationships with E&P customers, the Northern White sand needs of those customers will be most efficiently served from combined production at our Whitehall, Blair and Wyeville facilities. We’re committed to maintaining a constant and dynamic focus on our cost structure and operations, and will remain nimble and responsive to any further market changes.”