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Hi-Crush Has Successful Test of Integrated Delivery Solution

Hi-Crush Partners LP announced the successful pilot test of its PropStream integrated delivery solution, which is designed to structurally enhance the efficiency of sand delivery in the well completion process.

Working with a leading pressure pumper in the Permian Basin, PropStream delivered proppant for a 30-stage completion utilizing three grades of proppant per stage. PropStream coordinated the delivery of proppant from the mine site to the well site and was staffed by Hi-Crush employees responsible for the transfer of the proppant into the blender hopper using a proprietary conveyor system (PropBeast).

Hi-Crush also announced the formation, with other partners, and initial funding of Proppant Express Investments, LLC (PropX), which was established to develop critical last-mile logistics equipment for the proppant industry. PropX is responsible for manufacturing the containers, or pods, and the PropBeast conveyor systems used in Hi-Crush`s PropStream integrated delivery solution, designed to allow for safe and cost-efficient transportation of proppant from in-basin terminals to the well site while minimizing fugitive dust.

"The launch of PropStream and our investment in PropX mark critical next steps in Hi-Crush`s evolution as a leading provider of frac sand and logistics services to the oil and gas industry," said Robert E. Rasmus, chief executive officer of Hi-Crush. "We are excited to expand our service capabilities with our PropStream integrated delivery solution that is aligned with our goal of delivering frac sand from the mine to the well more efficiently. The design of this purpose-built equipment and delivery process has been in development over the past year. It is a result of in-depth discussions with our customers, intended to best understand and serve their needs, and looking ahead to the industry’s next phase of opportunity. Our ability to expand the reach and delivery of frac sand directly to our customers’ usage points elevates our value proposition, grows our potential customer base, and positions us deeper into the sand supply chain. It also complements our industry-leading transportation network and rounds out the logistics strategy we have been developing over the last several years. We are pleased to have completed our successful pilot test in one of the most demanding basins in the country and are excited to continue the development and build-out of this solution as we meaningfully extend our reach in the industry."

PropStream involves loading frac sand at Hi-Crush in-basin terminals into the PropX pods before being transported by truck. The pods utilize readily available intermodal container chassis or standard flatbeds for transportation, resulting in significant savings in up-front costs versus widely-used pneumatic equipment.

The pods also allow for increased transportation efficiency and a significant reduction in supply chain related congestion at well sites, lowering the number of trucks required per job and significantly reducing or eliminating demurrage costs.