More details from Seeking Alpha:
Hi-Crush Partners (NYSE:HCLP) +12% premarket after and hiking its quarterly distribution to $0.75/unit from $0.225/unit and agreeing to acquire FB Industries, a manufacturer and marketer of silo-based frac sand management systems, for ~$60M.
HCLP says the distribution increase will allow for the potential conversion of the partnership from an MLP to a C-Corporation "at some point in the future."
HCLP also signs an extended supply and PropStream services deal with a "supermajor E&P customer" supporting, through reservation commitments, an 850K tons/year expansion of its Wyeville facility for Northern White supply and anchoring the development of a second 3M tons/year Kermit facility for in-basin Permian supply.
The company also sees preliminary Q2 revenues of $247M-$249.5M vs. $247M analyst consensus estimate, and now expects total FY 2018 capex of $180M-$210M, up from a previous range of $35M-$45 M, driven by development and construction of Kermit 2, equipment builds to further expand market penetration of the FB Industries, the expansion of the Wyeville facility, and further growth in PropStream and other logistics initiatives.
To help fund the FB Industries acquisition, HCLP is launching a $450M offering of senior notes due 2026.
Bob
AI
