Hi-Crush Partners LP and Liberty Oilfield Services Partner to Increase Completion Efficiencies in Colorado's DJ Basin
Houston, Texas - January 25, 2016 - Hi-Crush Partners LP ("Hi-Crush") and Liberty Oilfield Services ("Liberty") jointly announced today the achievement of operational milestones for sand volumes, unit train deliveries, and efficiency gains during the fourth quarter of 2015.
"Working closely with our contract customers is essential in navigating the current market environment," said Robert E. Rasmus, CEO of Hi-Crush. "This collaboration has been a key part of the Hi-Crush strategy since our inception and has become even more important in the current operating environment which remains highly competitive and extremely cost-conscious. Building and maintaining strong relationships and working with the right partners have long been core tenets of the energy industry. This collaborative approach has led to these recent achievements with Liberty in the DJ Basin. We continue to look for more ways to reliably serve our customers, lower costs and help them to achieve operational success in a safe manner."
During the fourth quarter of 2015, Liberty pumped more than 326 million pounds of Northern White sand in the DJ Basin, a record quarterly volume. This record sand volume in the DJ Basin represents an increase of nearly 40 percent over the same period of the prior year. Matt Owens, President of Extraction Oil & Gas, a customer of Liberty, said, "In early-November, Liberty achieved record daily volume of throughput in their completion operations on one of our wells, with a single crew pumping a total of 41 frac stages for a total of 8.2 million pounds of proppant."
Chris Wright, CEO of Liberty, said, "We are constantly striving to lower the cost of producing a barrel of oil. Increasing our throughput rate of sand pumped downhole on each hydraulic fracturing job is a major part of that effort and Hi-Crush has been a terrific partner enabling that improvement."
During the fourth quarter, Hi-Crush delivered two 96-car unit trains to Liberty totaling 42.9 million pounds of 40/70 Northern White frac sand. The unit trains were received at a third party transload terminal located in Hudson, CO, where Liberty focuses on completion activity in Weld County. Ron Gusek, VP of Technology for Liberty, commented, "Strong partnerships are the key to success in any business environment, but are absolutely critical in challenging markets like those we are in today. Through collaboration, our ability to successfully load and receive unit trains resulted in significant logistics and cost efficiencies to our operation. Thanks to the support of our supplier and customer partners, Liberty has been able to drive significant achievements in the fourth quarter of 2015, including record proppant volumes for a 24-hour period on a pad, record quarterly proppant volumes for the district, and the receipt of our first two unit trains. Achieving these efficiencies are clear examples of how we help our customers accomplish their goal to make every completion as cost-effective as possible."
About Hi-Crush Partners LP
Hi-Crush Partners LP, a publicly traded partnership (NYSE: HCLP), is an integrated producer, transporter, marketer and distributor of high-quality monocrystalline sand, a specialized mineral that is used as a proppant to enhance the recovery rates of hydrocarbons from oil and natural gas wells. Hi-Crush's reserves, which are located in Wisconsin, consist of "Northern White" sand, a resource that exists predominately in Wisconsin and limited portions of the upper Midwest region of the United States. Hi-Crush Partners owns and operates the largest distribution network in the Marcellus and Utica shales, and has distribution capabilities throughout North America. For more information, visit www.hicrushpartners.com.
About Liberty Oilfield Services
Liberty Oilfield Services is an innovative oilfield service company providing specialized stimulation services to optimize well production. Liberty focuses on offering safe, efficient and high-quality hydraulic fracturing and engineering services in the Rocky Mountain basins. Liberty's experienced management team provides frac design and execution with a real-data focus to optimize field development and improve production enhancement strategies for its clients. For more information about Liberty, please visit our website at www.libertyfrac.com.
Some of the information in this news release 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," "assume," "forecast," "position," "predict," "strategy," "expect," "intend," "plan," "estimate," "anticipate," "could," "believe," "project," "budget," "potential," 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 Partner's reports filed with the Securities and Exchange Commission ("SEC"), including those described under 1A of Hi-Crush Partner's Form 10-K for the year ended December 31, 2014 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; 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 Partner's forward-looking statements speak only as of the date made and Hi-Crush Partners undertakes no obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.
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