Emerge Energy Services LP announced fourth quarter 2016 financial and operating results. The company reported net loss of $20.8 million, or $0.77 per diluted unit, for the three months ended Dec. 31, 2016.
“The results of operations of the fuel business have been classified as discontinued operations for all periods presented and we now operate our continuing business in a single sand segment,” the company said.
“The recovery in the oil and gas markets gained momentum in the fourth quarter and has accelerated in the early parts of the first quarter,” said Ted W. Beneski, chairman of the board of directors of the general partner of Emerge Energy. “The fourth quarter was our first full quarter without the fuel business, so we are now a pure-play frac sand company. Our sand volumes increased by 68 percent sequentially to 825,699 tons, and our continuing operations Adjusted EBITDA improved by $0.3 million sequentially. Small price increases started to take effect near the end of the quarter, but we are now realizing significant upward pricing movements to start 2017. We further strengthened our balance sheet with a $36.9 million net equity raise, which lowered our bank loan balance to approximately $141 million at Dec. 31, 2016, and we are now well positioned to take advantage of the current upswing in the North American shale markets as frac sand demand has rebounded significantly with higher drilling and completion activity.”