Hi-Crush Partners LP Reports Unaudited Consolidated Earnings and Production Results for the First Quarter Ended March 31, 2018; Provides Sales Volume Guidance for the Second Quarter of 2018; Revises Capital Expenditure Guidance for the Year 2018
For the quarter, the company's sand produced and delivered was 2,527,037 tons compared to 1,366,812 tons a year ago.
The company continues to expect total capital expenditures for 2018 to be in the range of $35 to $45 million. With an accelerated deployment of PropStream crews and greater market adoption of the company's containerized solution forecasted, the company expects full year 2018 capital expenditures to be towards the upper end of previously provided range of $35 to $45 million.
For the second quarter of 2018, the Partnership expects total sales volumes to increase to a range of 2.9 to 3.1 million tons. The sequential increase in forecasted volumes sold reflects the expectation of continued temporary impacts from ongoing Class-1 railroad service issues. The Partnership currently expects rail service to improve gradually through the remainder of the second quarter of 2018. Pricing has continued to improve in the second quarter of 2018 and is expected to further increase over the coming months, driven by ongoing tightness in frac sand supply and demand, particularly for fine mesh sand. As such, Hi-Crush expects continued improvement in contribution margin during the second quarter of 2018. The company expects depreciation, depletion and including amortization of intangibles to be in the range of $8 million to $9 million per quarter.