Saturday, December 16, 2017

© Reuters.  Frac sand firms Hi-Crush, Emerge Energy diverge sharply on Q3 results© Reuters. Frac sand firms Hi-Crush, Emerge Energy diverge sharply on Q3 results

  • Action in frac sand providers Hi-Crush Partners (HCLP -6.4%) and Emerge Energy Services (EMES +13.2%) diverge sharply after posting Q3 earnings results.
  • HCLP’s Q3 earnings failed to meet analyst expectations despite a 260% Y/Y revenue increase and improved sales volumes to ~2.5M for the quarter, in-line with guidance.
  • HCLP expects Q4 sales volumes to rise to 2.7M-2.9M tons, with pricing seen improving modestly through year-end, driven by ongoing tightness in frac sand supply and demand, particularly for fine mesh sand; Q3 average sales price was $68/ton, compared to $64 in Q2.
  • At the same time, EMES surges following an easy Q3 earnings beat and 230% Y/Y revenue rise, adjusted EBITDA improved 149% to $18.7M, and total volumes sold increased 6.3% Q/Q to 1.48M tons.
  • EMES is up even after saying it will not make a distribution for the quarter.
  • Now read: Hi-Crush Partners: Supply Woes Continue To Persist

Original article

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