Hi Crush : Investor Presentation January 2020

Hi-Crush Inc. (NYSE: HCR)

Investor Presentation

January 2020

Forward Looking Statements and Non-GAAP Measures

Forward-Looking Statements and Cautionary Statements

Some of the information in this presentation may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements give our current expectations, and contain projections of results of operations or of financial condition, or forecasts of future events. Words such as "may," "should," "assume," "forecast," "position," "predict," "strategy," "expect," "intend," "hope," "plan," "estimate," "anticipate," "could," "believe," "project," "budget," "potential," "likely," or "continue," and similar expressions are used to identify forward- looking statements. They can be affected by assumptions used or by known or unknown risks or uncertainties. Consequently, no forward- looking statements can be guaranteed. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in Hi-Crush Inc.'s reports filed with the SEC, including those described under Item 1A of Hi-Crush Inc.'s Form 10-K for the year ended December 31, 2018 and any subsequently filed 10-Q. Actual results may vary materially. You are cautioned not to place undue reliance on any forward-looking statements. You should also understand that it is not possible to predict or identify all such factors and should not consider the risk factors in our reports filed with the SEC or the following list to be a complete statement of all potential risks and uncertainties. Factors that could cause our actual results to differ materially from the results contemplated by such forward looking statements include: the volume of frac sand we are able to sell; the price at which we are able to sell frac sand; the outcome of any pending litigation, claims or assessments, including unasserted claims; changes in the price and availability of natural gas or electricity; changes in prevailing economic conditions; and difficulty collecting receivables. All forward-looking statements are expressly qualified in their entirety by the foregoing cautionary statements. Hi-Crush Inc.'s forward-looking statements speak only as of the date made and Hi-Crush Inc. undertakes no obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.

Use of Non-GAAP Information

This presentation may include non-GAAP financial measures. Such non-GAAP measures are not alternatives to GAAP measures, and you should not consider these non-GAAP measures in isolation or as a substitute for analysis of our results as reported under GAAP. For additional disclosure regarding such non-GAAP measures, including reconciliations to their most directly comparable GAAP measure, please refer to Hi-Crush Inc.'s most recent earnings release at www.hicrushinc.com.

Investor Presentation	January 2020 | 2

Business Updates

Current Priorities:

• Leveraging integrated portfolio to deliver high quality customer service
• Improving profitability through operational optimization and cost reduction
• Maintaining liquidity and reducing debt

4Q19 frac sand market

projections holding

• 4Q19 activity slowed as guided during 3Q19 conference call
• Pace of activity expected to increase throughout 1Q20

Cash balance increased

into YE 2019

• Approximately $57mm in cash available
• Remain undrawn under ABL facility; availability of $44.3mm
• Total liquidity of approximately $101mm1

Last mile business continues to grow

• Pronghorn Energy Services awarded work with additional customer in December; will begin work for three new customers in early 2020

1. Cash balance as of December 31, 2019; ABL availability as of November 30, 2019

Investor Presentation

January 2020 | 3

The Hi-Crush Value Proposition

Investor value creation

Leading customer service delivering reliability, safety and efficiency

Financial discipline focused on flexibility and efficient capital allocation

Fully-integrated platform to most efficiently service customers

Supplier of essential products and services for well completions and development of U.S. shale

Investor Presentation	January 2020 | 4

Corporate Values Evidence Commitment to ESG

Our values guide everything we do. We are constantly looking for ways to ensure the protection and promotion of human health, safety and quality of life. This includes our employees as well as the people in the communities where we live and operate.

Evidence of Our Commitment

			Behavior-based safety program
			ingrained in all aspects of our culture
			Our Wisconsin production facilities
			participate in the Wisconsin Department
			of Natural Resources Green Tier
			Program as a Tier 1 participant
			>90% reduction of particulate matter
	>90%		emissions from wellsite sand operations
		from Pronghorn, meeting OSHA PEL
			regulations

Investor Presentation	January 2020 | 5

Inaugural Corporate Responsibility Report

Hi-Crush Inc. published its first Corporate Responsibility Report

in December 2019

Lowest greenhouse gas emissions

per ton of sand sold among reporting companies1

Lost Time Incident Rate 35% lower than industry

average2

Publication of the 2018 Corporate Responsibility Report evidences the

company's commitment to the communities in which we operate,

and to safe, efficient operations

1. Reported 0.022 MT of CO2 produced per ton of sand sold during 2018
2. Based on 0.78 Lost Time Incident Rate (LTIR) for total company during 2018; mining industry average LTIR during 2018 of 1.2

Investor Presentation	January 2020 | 6

Our Financial Priorities

What We're Focused On

Strong Liquidity and Balance Sheet

 Maintaining strong liquidity including cash and ABL availability; balance sheet supports financial flexibility

Free Cash Flow Generation

 Strong platform for cash flow generation, supported by operational diversity and disciplined capital program

Efficient Capital Allocation

 Commitment to prioritizing liquidity and balance sheet

strength to help manage through market cycles

Maximizing Investment Returns

• Executing strategy through quality service delivery, leveraging our unique platform of assets and capabilities; share repurchase program remains authorized

~$101mm million of liquidity1; no covenants or near-term debt maturities

Significantly reducing capex in 2020 to $25mm; forecasting positive free cash flow for FY20

Ended 2019 with strong

liquidity, including cash balance

of approximately $57mm

Generating value through focus

on execution and

asset utilization

1. Cash balance as of December 31, 2019; ABL availability as of November 30, 2019

Investor Presentation	January 2020 | 7

Balance Sheet & Liquidity Update

No near-term	Highly flexible	Prioritizing
maturities
balance sheet	balance sheet
or covenant
position	& liquidity
restrictions

Liquidity Update1			Debt Structure1
				Senior Notes	ABL Facility
~$57mm	No borrowings
		$450mm	$200mm
Cash	+ on ABL Facility
		$393mm net of	$44.3mm of
	~$101mm			cash	availability
			No maturities
Total Liquidity			No borrowings
				until Aug 2026

1. Cash balance as of December 31, 2019; ABL availability as of November 30, 2019

Investor Presentation	January 2020 | 8

Q3 2019 Results

3Q19 progress aligned with our new organizational structure

Achieved 3Q19 quarterly sales volume of 2.7mm tons; slight increase over 2Q19 volumes and at the high-end of the guidance range

Continue to deploy enhanced measurement and other upgrades on last-mile silo equipment

Increased last mile truckloads delivered by 7% in 3Q19 versus loads delivered in 2Q19

Latest release improves integration with silo inventory systems and terminal assets, and improves data integrity to enable more accurate analysis

63%
of quarterly sales volumes in 3Q19
sold to E&P customers
	63%	66%	63%
	51%
	40%
33%	31%
25%
14%
7%
0% 1%

% of total quarterly sales volumes

Investor Presentation	January 2020 | 9

Operational Strategy

Committed to Our Strategy

Focused on delivering value and driving long-term success

Focusing on	Deploying	Innovating	Delivering
Proppant
Serving	Proprietary	Low-cost
Logistics
Customers	Technology	Production
Solutions

Investor Presentation	January 2020 | 11

Our Fully-Integrated Platform

Customer Solutions

Logistics	Equipment
Flexible solutions	Silos & containers

Real-time logistics and inventory management

Terminal Network

Owned & operated

In-Basin	Northern White
Production facilities	Production facilities

Fully-IntegratedPlatform

Investor Presentation	January 2020 | 12

Our Operational Reach

Bakken	Marcellus / Utica
Wisconsin

All Basins

Powder River

MidCon

Permian

Eagle Ford

Highlights

• Pronghorn last mile solutions operating in all

majorbasins

• Hi-Crushsand production facilities and terminal network meet customers demand for efficient sand supply
• NexStage deploying innovative equipment supporting efficient last mile delivery and wellsite management
• PropDispatch utilized for major market share of trucking logistics

Investor Presentation	January 2020 | 13

Mutually Beneficial E&P Partnership Strategy

E&P Benefits of Aligning with Hi-Crush

Dedicatedfrac sand provider with sand, silos and containers

Reliablesupply from multiple frac sand production facilities

Diversifiedacross regions from operations in multiple basins

Optionalityin last mile and in-basin delivery points

Integratedproduction and delivery process meet long planning cycles

Safetycentric culture with a track-record among the best in industry

HCR Benefits of Aligning with E&Ps

Relationships:Long project lead times and significant capital requirements drive E&Ps to value strategic relationships with suppliers who offer differentiated solutions

Better Visibility:Closer relationships provide greater visibility into evolving activity, demand trends and market fundamentals

Growth Opportunity:Addressing E&Ps'

need for a direct-sourced, preferred provider of flexible, full-scope proppant and logistics solutions

Reduces Volatility:Partnering with the right E&Ps enhances stability as drilling and completion "manufacturing" programs are more consistent through commodity cycles

Investor Presentation	January 2020 | 14

PropDispatch: Real-Time Logistics Management

Advancing our last mile platform with best in class technology

PropDispatch Software

• Manages and displays on-pad inventory, in containers or silos, to accurately provide volume delivered downhole and minimize or eliminate trucking demurrage
• Enables dispatching and real-time monitoring of truck loads between the transload and pad
• Simplifies back office truck load reconciliation process
• Comprehensive dashboards and real-time KPIs
• Ability to integrate seamlessly to virtually any application

Last mile simplified		Real-time visibility		Central dispatch
Simplifies ordering, dispatching,		Enables real-time decision making		Efficiently dispatch drivers based
hauling, tracking, reconciling and		utilizing constant data flow of truck		on location and proximity to supply
invoicing of trucks and sand		loads vs. inventory		points

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Driving Efficiency Through Technology & Equipment

Meaningful opportunities exist to capture efficiencies that lead to

lowest cost at the blender

Dispatch to	Load Time at
Load Time	Origin

• Creates significant logistics efficiencies with effectiveness of dispatch team
• PropDispatch technology employs systematic approach to the load, dispatch and monitoring process
• Enhances ability to make informed real-time decisions

Travel Time to	Unload Time at
Destination	Destination

• Flexible selection of equipment solutions maximizes wellsite efficiency
• Proprietary conveyor and hopper bottom equipment meaningfully reduces offload times and maximizes truck turns
• Precise measurement of sand into the blender results in better inventory management

Investor Presentation	January 2020 | 16

Financial Update

Key Financial Metrics

$ in 000s, except per ton	Q3 2018	Q4 2018	Q1 2019	Q2 2019	Q3 2019
Revenues	$ 213,972	$ 162,235	$ 159,910	$ 178,001	$ 172,972
Adjusted EBITDA1	$ 52,048	$ 14,889	$ 17,574	$ 24,701	$ 17,900
Average selling price ($/ton)	$ 64	$ 58	$ 48	$ 47	$ 43
Sales volumes (tons)	2,775,360	1,976,805	2,411,262	2,662,086	2,685,736
Contribution margin ($/ton)2	$ 23.92	$ 14.35	$ 12.19	$ 13.80	$ 10.99

• Revenues remained relatively flat, driven by increased logistics and wellsite operations services and steady frac sand volumes, offset by decreased frac sand pricing
• Adjusted EBITDA decreased to $17.9mm, and contribution margin per ton was $10.99, a sequential decrease of 20%, driven by pricing pressure on spot volumes
• Recorded $346.4mm of non-cash asset impairments, principally related to the Augusta and Whitehall facilities, goodwill, and railcar right-of-use assets

1. EBITDA is defined as net income, plus: (i) depreciation, depletion and amortization, (ii) interest expense, net of interest income, and (iii) income tax expense
   (benefit). We define Adjusted EBITDA as EBITDA, plus: (i) non-cash impairments of goodwill and assets, (ii) change in estimated fair value of contingent consideration, (iii) earnings (loss) from equity method investments, (iv) gain on remeasurement of equity method investments, (v) loss on extinguishment of debt, and (vi) non-recurring business development costs and other items.
2. Contribution margin is defined as total revenues less costs of goods sold excluding depreciation, depletion and amortization.

Investor Presentation	January 2020 | 18

Q3 2019: Summary - Statements of Operations

Unaudited Quarterly Consolidated Statements of Operations (Amounts in thousands, except per share amounts)

				Q3 2018 (1)				Q4 2018				Q1 2019				Q2 2019					Q3 2019
Revenues	$	213,972		$	162,235		$	159,910		$	178,001	$	172,972
Cost of goods sold (excluding depreciation, depletion and amortization)			147,583					133,877					130,522					141,272					143,460
Depreciation, depletion and amortization			10,241					9,762					11,272					14,062					14,320
Gross profit			56,148					18,596					18,116					22,667					15,192
Operating costs and expenses:
General and administrative expenses			14,164					16,982					12,613					15,210					12,020
Depreciation and amortization			1,347					1,457					1,676					1,697					1,773
Accretion of asset retirement obligations			124					125					129					130					107
Asset impairments			-				-				-				-					346,384
Change in estimated fair value of contingent consideration			-				-				-				(672)					(5,181)
Other operating expenses, net			754					1,072					431					469					658
Income (loss) from operations			39,759					(1,040)					3,267					5,833					(340,569)
Other income (expense):
Earnings from equity method investments			1,624					1,250					1,116					1,284					1,880
Gain on remeasurement of equity method investment			-				-				-				3,612					-
Interest expense			(8,012)					(10,140)					(10,590)					(11,806)					(11,790)
Loss on extinguishment of debt			(6,233)					-				-				-					-
Income (loss) before income tax			27,138					(9,930)					(6,207)					(1,077)					(350,479)
Income tax expense (benefit):
Current tax expense			-				-				-				259					1,087
Deferred tax expense (benefit)			-				-				-				660					(83,069)
Deferred tax resulting from conversion to a corporation			-				-				-				115,488					-
Income tax expense (benefit)			-				-				-				116,407					(81,982)
Net income (loss)	$	27,138		$	(9,930)		$	(6,207)		$	(117,484)	$	(268,497)
Earnings (loss) per common share:
Basic		$	0.30			$	(0.08)			$	(0.06)			$	(1.16)		$	(2.67)
Diluted
	$	0.29			$	(0.08)			$	(0.06)			$	(1.16)		$	(2.67)
	1) Financial information has been recast to include the financial position and results attributable to the sponsor and general partner.
	Investor Presentation																		January 2020 | 19

Q3 2019: EBITDA, Adjusted EBITDA and Free Cash Flow

Unaudited EBITDA and Adjusted EBITDA (Amounts in thousands)

		Q3 2018		Q4 2018		Q1 2019		Q2 2019		Q3 2019
Reconciliation of Adjusted EBITDA to net income (loss):
Net income (loss)	$	27,138	$	(9,930)	$	(6,207)	$	(117,484)	$	(268,497)
Depreciation, depletion and amortization expense		11,588		11,219		12,948		15,759		16,093
Interest expense		8,012		10,140		10,590		11,806		11,790
Income tax expense (benefit)		-		-		-		116,407		(81,982)
EBITDA		46,738		11,429		17,331		26,488		(322,596)
Non-cash impairments of assets		-		-		-		-		346,384
Change in estimated fair value of contingent consideration		-		-		-		(672)		(5,181)
Earnings from equity method investments		(1,624)		(1,250)		(1,116)		(1,284)		(1,880)
Gain on remeasurement of equity method investment		-		-		-		(3,612)		-
Loss on extinguishment of debt		6,233		-		-		-		-
Non-recurring business development costs and other items (1)		701		4,710		1,359		3,781		1,173
Adjusted EBITDA	$	52,048	$	14,889	$	17,574	$	24,701	$	17,900

Free Cash Flow

		Q2 2019			Q3 2019			Q3 2019 YTD
Net cash provided by operating activities	$	17,582	$	3,123	$	12,098
Less: Maintenance capital expenditures		(3,717)			(3,328)			(11,051)
Less: Growth capital expenditures (2)		(8,089)			(4,893)			(24,060)
Free cash flow	$	5,776		$	(5,098)		$	(23,013)

1. Non-recurringbusiness development costs and other items for Q3 2018 costs are associated with legal fees related to our Senior Notes offering and
   business development costs, Q4 2018 costs are associated with the acquisition of the sponsor and general partner, as well as severance costs. Q1 2019, Q2 2019 and Q3 2019 costs are primarily associated with the Conversion, business acquisitions, and severance costs.
2. We have excluded growth capital expenditures of $5,840, $174, and $31,219 spent during the three months ended June 30, 2019, and three and nine months ended September 30, 2019, respectively, related to construction projects associated with completion of our second Kermit facility and expansion at our Wyeville facility, both of which were fully-funded in 2018. All other growth capital expenditures related to investments in our logistics and wellsite operations are included in the above.

Investor Presentation	January 2020 | 20

Investor Contacts

Caldwell Bailey

Manager, Investor Relations

Marc Silverberg

Managing Director (ICR, Inc.)

Phone: [phone]

E-mail: [e-mail]

Investor Presentation	January 2020 | 21