Replies to post #50187 on Savvy Trades and Investments

[researcher59]

HCLP +2.25 to 13.10 in premarket after boosting distribution by 233% to $3 annualized, citing strong fundamentals -

Hi-Crush Partners LP (NYSE:HCLP), or "Hi-Crush" or the "Partnership", announced today that the Board of Directors of its general partner has declared a quarterly cash distribution of $0.75 per unit on all common units, or $3.00 on an annualized basis, for the second quarter of 2018, up from a previous quarterly cash distribution of $0.225 per unit. The distribution will be paid on August 14, 2018, to all common unitholders of record on August 3, 2018.

“We resumed our capital return program in the fourth quarter of 2017 with the announcement of our quarterly distribution and implementation of our unit repurchase program,” said Robert E. Rasmus, Chief Executive Officer of Hi-Crush. “This two-pronged approach was intended to maximize unitholder value, while also providing financial flexibility in how we execute our return initiatives going forward. Our capital return announcement for the second quarter evidences the benefits of this flexibility, significantly increasing our quarterly distribution and allocating capital to execute on a series of exciting and unique, high-return growth opportunities. As we announced earlier today, we are pleased to enter into an agreement to purchase FB Industries, execute an amendment to an existing supply agreement with a supermajor E&P customer operating in the Permian, and announce the related, contract-backed expansion of our Northern White and in-basin Permian capacity.”

The Partnership repurchased no common units in the second quarter of 2018. Since the announcement of the $100 million authorized program in October 2017, Hi-Crush has completed repurchases of 2,783,253 common units, totaling $29.4 million. The repurchase program, which remains in place, does not obligate the Partnership to repurchase any specific dollar amount or number of units, and may be suspended, modified or discontinued by the Board of Directors at any time, in its sole discretion and without notice.

“The strong underlying market fundamentals in the frac sand and logistics market and our outlook for further growth, fueled by the transactions we have announced, support the confidence we have in the future of Hi-Crush,” said Laura C. Fulton, Chief Financial Officer of Hi-Crush. “To enable our unitholders to more fully and directly participate in the strength of our business and the cash flow we are generating, our Board of Directors elected to increase our quarterly distribution to $0.75 per unit for the second quarter of 2018. This distribution meaningfully increases the cash paid directly to unitholders, while also improving our organizational flexibility by allowing for the potential conversion of the Partnership from an MLP to a C-Corporation at some point in the future. Our partnership agreement includes an IDR reset provision, which requires four consecutive quarters of distributions above $0.7125 per unit, and provides one path of many to a potential conversion to a C-Corporation. The Board maintains significant flexibility with respect to future capital return decisions, and is committed to delivering value to unitholders over the near- and long-term.”