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Hi-Crush Sand Revenues up in Second Quarter


Hi-Crush Inc. is reporting revenues of $178.0 million in the second quarter of 2019 as compared to $159.9 million in the first quarter of 2019.

Revenues from sales of frac sand totaled $125.9 million in the second quarter of 2019, reflecting an increase of 9% compared to $115.1 million in the first quarter of 2019. Total volumes sold were 2.7 million tons, an increase of 10% compared to the first quarter of 2019, primarily driven by a 21% increase in Northern White volumes. Average sales price of $47 per ton for the second quarter of 2019 was largely unchanged compared to $48 per ton in the first quarter of 2019.

Volumes sold directly to E&Ps during the second quarter of 2019 increased to a company record of 66%, compared to 63% in the first quarter of 2019 and 31% in the second quarter of 2018. Volumes sold at the wellsite through our logistics and wellsite operations business increased by 28% over the first quarter of 2019, representing another company record, and resulting from improved utilization of last mile crews during the second quarter of 2019.

Volumes sold through its logistics and wellsite operations represented 28% of total volumes in the second quarter of 2019, up from 24% in the first quarter of 2019.

For the second quarter of 2019, last-mile delivered truckloads were up 36% over the first quarter of 2019, resulting in higher utilization of deployed crews. The delivered truckloads metric will be used going forward to better enable comparison of quarterly last mile services activity and utilization of last mile equipment, versus point-in-time deployment numbers of container or silo crews.

As of June 30, the company had 21 last-mile crews operating in the Permian, Eagle Ford, Marcellus / Utica, Powder River, Mid-Con and Bakken regions, an increase from 13 crews at the end of the first quarter of 2019.

“Our second quarter financial results surpassed expectations on revenue and Adjusted EBITDA, and reflected volumes on the high end of our guidance, primarily driven by services provided in our last mile business and Northern White sales," said Robert E. Rasmus, chairman and chief executive officer of Hi-Crush. "Our quarterly performance benefited from our intense focus on managing costs and delivering operating efficiencies, while also advancing our fully-integrated strategy with more last mile systems deployed, leading to positive free cash flow of $5.8 million during the second quarter. We are also pleased to achieve another record in quarterly sales to E&Ps, representing 66% of total second quarter volumes. I am proud of our team's continuous effort to best meet the needs of all of our customers with our improved equipment operations, advancements in technology, and in combination with further alignment of our business to focus on delivering the right services to the right customers within each service line. Also during the quarter, we achieved a major milestone with the completion of our conversion to a corporation structure, which enhances Hi-Crush’s ability to best succeed over the near and long-term."