ENERCOM 22 ND OIL & GAS CONFERENCE OILFIELD TECH & INNOVATION DAY AUGUST 17, 2017

Transcription

1 ENERCOM 22 ND OIL & GAS CONFERENCE OILFIELD TECH & INNOVATION DAY AUGUST 17, 2017

2 Premier Provider of Proppant and Logistics Solutions Mine Move Manage Third largest frac sand production capacity in the world at 13.4MM TPY 1 Largest owned and operated terminal and distribution network in the industry Most vertically integrated frac sand company with PropStream TM logistics service 1) Total production capacity across all grades and facilities 2

3 The Evolution of Hi-Crush 13.4MM TPY Frac sand production capacity Owned and operated terminals PropStream crews MM TPY MM TPY 10.4MM TPY MM TPY 3.2MM TPY 3.5MM TPY E June 2011 Wyeville facility commences operations July 2012 Augusta facility commences operations September 2014 Whitehall facility commences operations March 2016 Blair facility commences operations July 2017 First in-basin mine, Kermit facility, commences operations August 2012 Completed IPO (NYSE: HCLP) June 2013 Acquired D&I Silica, LLC October 2016 First PropStream crew commences operations December 2017 Expanding PropStream service to 9 crews 3

4 Hi-Crush Business Model Provides Surety and Flexibility Sand delivered to terminal via rail Sold at mine direct to customer Sold at wellsite to customer via PropStream Sold at terminal to customer Class-1 and short-line rail Terminal locations Customer truck delivers to the well site 4

5 MINE Innovation: In-Basin Sand

6 The Permian s First In-Basin Mine Facility Overview Commenced operations in July 2017 First-mover for in-basin facility development provides clear competitive advantage Purpose-built 3MM TPY production facility, 55+MM tons of high-quality fine mesh reserves Located within 75 mile radius of significant Delaware and Midland Basin activity Opportunity to leverage PropStream capabilities and mitigate logistical bottlenecks 6

7 MOVE Innovation: Owned and Operated Terminals

8 Network Ownership Establishes Logistics Flexibility Wisconsin Logistics Network Augusta Bakken Reduces potential for logistics bottlenecks Whitehall Blair Wyeville Marcellus / Utica Priority at owned and operated terminals ensures quality customer service DJ Basin Unit train capabilities at majority of 100+ origination / destination pairings Kermit facility Permian SCOOP / STACK Eagle Ford Haynesville Rail-served Sand Facility Mine-to-Well Sand Facility Existing Terminal (HCLP owned) Pecos Terminal (HCLP owned) Existing Terminal (Third party) 64% of volumes delivered in-basin in Q % of Q in-basin volumes delivered through Hi-Crush owned and operated terminals Access to multiple third party terminals Note: Map does not reflect all third party terminals utilized by Hi-Crush to deliver sand to customers 8

9 Pecos Terminal Further Enhances Permian Position Terminal Overview On schedule for October 2017 completion Complements Kermit facility as additional source point to mitigate logistical bottlenecks and meet customer needs for various mesh sizes First-mover advantage with unit train capable terminal facility located directly on class-1 rail with 20,000 tons of vertical storage in the Southern Delaware; manifest capable with rail-to-truck operations Furthers Hi-Crush strategy of owning and operating key logistics infrastructure to provide frac sand from the mine to the well site Ensures service priority, and creates critical launching point for last-mile operations, including PropStream integrated logistics solution Dedicated rail park terminal for proppant, strategically located in the Delaware Basin 9

10 Hi-Crush Logistics in the Permian Our Advantage Hi-Crush owned and operated network reduces trucking distance and costs; optimal trucking distance is less than 75 miles Hi-Crush s Permian Service Footprint More than 80% 1 of Permian proppant consumption within 50 miles 90% 1 within 60 miles More than 95% 1 within 75 miles Ability to source from multiple locations to mitigate trucking bottlenecks and meet customers need for various mesh sizes Owned and operated network represents annual throughput of 6.0MM tons, 53,000 tons of silo storage and 600+ railcar spots Ensures efficiency and quality of customer service Greater PropStream expansion to further improve logistics flexibility Delaware Basin counties Midland Basin counties Proppant consumption heat map 50-mile radius of Pecos terminal 50-mile radius of Kermit facility 50-mile radius of Odessa terminal 50-mile radius of Big Spring terminal 1) Estimate based on NavPort 2017 YTD reported proppant volumes as of 7/25/17. 10

11 MANAGE Innovation: PropStream Last Mile Solution

12 PropStream Last Mile Solution PropStream integrates every aspect of frac sand supply management to reduce your well completion logistics and costs Our fully integrated supply chain simplifies proppant procurement, eliminating the need for you to manage proppant logistics and securing the high-quality sand you need, all in one efficient process We handle the full spectrum of logistics management, from railcar fleet management to truck dispatching and dedicated wellsite operation, structurally reducing costs in the well completion process 12

13 PropStream vs. Pneumatics Pneumatic Delivery PropStream Service Reduced Environmental Impact PropStream significantly reduces sand dust compared to pneumatic and other techniques PropStream significantly reduces noise compared to pneumatic trailers 13

14 Greater Efficiency and Effectiveness PropStream Advantage Wellsite Footprint Comparison More frac stages per day with faster sand delivery into blender Reduced NPT through redundancy of equipment Minimized wellsite congestion as trucks are on and off the wellsite in less than five minutes Smaller wellsite footprint with compact equipment smaller than pneumatics or bins Existing Footprint Mover / King Mover / King Mover / King Pneumatic trailers (average 60 minutes unload time) PropStream Footprint Flatbed trailers (average 6 minutes unload time) 14

15 Superior Quality and Reliability PropStream Advantage Wellsite Delivery Highly precise sand delivery into blenders as measurements accurate to more than 99.75% Consistent quality as sealed system eliminate the risk of accidental sand mixing/contamination Surety of supply as integrated terminal network and in-basin mines and facilities provides reliable and efficient sand supply of all grades and mesh sizes 15

16 Success in the Market Performance and Strategy No lost-time incidents; greater than 98% uptime performance Currently operating four crews in the Permian and one crew in the Northeast; four crews active at the end of Q2 2017, up from two crews at the end of Q Deploying fifth Permian crew and hiring sixth Permian crew in Q Expect nine or more PropStream crews to be operating by the end of

17 Simplify your sand supply HiCrush.com