News Release


Hi-Crush Partners LP Reports Second Quarter 2015 Results

Exhibit 99.1

News Release

Hi-Crush Partners LP Reports Second Quarter 2015 Results

·         2Q15 Revenues of $84 million vs. $83 million in 2Q14
·         2Q15 EBITDA of $19 million vs. $36 million in 2Q14
·         $0.31 basic and diluted earnings per unit

Houston, Texas, August 6, 2015 - Hi-Crush Partners LP (NYSE: HCLP), "Hi-Crush" or the "Partnership", today reported second quarter 2015 results. The limited partners' interest in net income was $11.5 million for the second quarter of 2015, resulting in basic and diluted earnings per unit of $0.31 per common and subordinated units. 

The Partnership reported earnings before interest, taxes and depreciation and amortization ("EBITDA") of $19.2 million for the second quarter of 2015.  Distributable cash flow of $16.7 million attributable to the common and subordinated unitholders for the second quarter of 2015 corresponds to distribution coverage of 0.95 times the $17.6 million in distributions to be paid to common and subordinated unitholders on August 14, 2015.

"Our results reflect reduced drilling and completion activity and its impact on pricing, which deteriorated further in the second quarter. As our volumes remained steady with first quarter levels, however, we believe we captured market share from the competition," said James M. Whipkey, Co-Chief Executive Officer of Hi-Crush. "We believe our proactive approach to managing the business through this downturn has contributed to our market share gain and will continue to be beneficial to us when the market recovers."

Revenues for the quarter ended June 30, 2015 totaled $84.0 million on sales of 1.2 million tons of frac sand, and transload services.  Revenues in the first quarter 2015 totaled $102.1 million on sales of 1.2 million tons of frac sand, and transload services. Approximately 58% of volumes were sold in-basin for the second quarter of 2015, an increase from 44% in the first quarter of 2015 and 33% in the fourth quarter of 2014.   Average sales price per ton sold decreased to $67 per ton in the second quarter from $73 per ton in the first quarter reflecting the higher average price for volumes sold in-basin, more than offset by declines in pricing with the slowdown in well completions activity.

"The increasingly negative impacts of rig count and sand price declines in the second quarter more than offset positive trends of increased frac intensity," said Robert E. Rasmus, Co-Chief Executive Officer. "We now believe low levels of completion activity and sand demand will persist in the third quarter, pushing a recovery of demand and price increases further into the future. We believe in the long-term fundamentals driving increased sand demand, and are taking steps to further improve our competitive position."

Production cost for sand produced and delivered from the Wyeville and Augusta facilities was $13.45 per ton during the quarter.    Of the 1.2 million tons sold, approximately 70% were produced and delivered from the Partnership's facilities, with the remainder being purchased from the sponsor's Whitehall facility.

On July 21, 2015, Hi-Crush declared its second quarter cash distribution of $0.475 per unit for all common and subordinated units, or $1.90 on an annualized basis. The distribution will be paid on August 14, 2015 to all common and subordinated unitholders of record on August 5, 2015.

Conference Call
A conference call for investors will be held on Thursday August 6, 2015 at 8:00 a.m. Central Time (9:00 a.m. Eastern Time) to discuss Hi-Crush's second quarter results. Hosting the call will be Robert E. Rasmus, Co-Chief Executive Officer, James M. Whipkey, Co-Chief Executive Officer and Laura C. Fulton, Chief Financial Officer.  The call can be accessed live over the telephone by dialing (866) 952-1907, or for international callers, (785) 424-1826. A replay will be available shortly after the call and can be accessed by dialing (877) 870-5176, or for international callers (858) 384-5517.  The passcode for the replay is 115670. The replay will be available until August 20, 2015. 

Interested parties may also listen to a simultaneous webcast of the conference call by logging onto Hi-Crush's website at www.hicrushpartners.com in the Investors-Event Calendar and Presentations section. A replay of the webcast will also be available for approximately 30 days following the call.  The slide presentation to be referenced on the call will also be on Hi-Crush's website at www.hicrushpartners.com in the Investors-Event Calendar and Presentations section.

Non-GAAP Financial Measures
This news release and the accompanying schedules include the non-GAAP financial measure of EBITDA, Distributable Cash Flow and Production Costs, which may be used periodically by management when discussing our financial results with investors and analysts. The accompanying schedules of this news release provide reconciliations of these non-GAAP financial measures to their most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles in the United States of America ("GAAP"). EBITDA, Distributable Cash Flow and Production Costs are presented as management believes the data provides a measure of operating performance that is unaffected by historical cost basis and provides additional information and metrics relative to the performance of our business.

About Hi-Crush
Hi-Crush 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. Our 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 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.

Forward-Looking Statements
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's reports filed with the Securities and Exchange Commission ("SEC"), including those described under 1A of Hi-Crush'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 litigation, claims or assessments, including unasserted claims; 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's forward-looking statements speak only as of the date made and Hi-Crush undertakes no obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.

Investor contact:
Investor Relations
ir@hicrushpartners.com
(713) 960-4811


Unaudited Condensed Consolidated Statements of Operations
(Amounts in thousands, except per unit amounts)

  Three Months Ended
  June 30,
  2015   2014
Revenues $ 83,958     $ 82,724  
Cost of goods sold (including depreciation, depletion and amortization) 63,698     43,859  
Gross profit 20,260     38,865  
Operating costs and expenses:      
General and administrative expenses 5,749     6,679  
Accretion of asset retirement obligation 84     66  
Income from operations 14,427     32,120  
Other income (expense):      
Interest expense (2,979 )   (2,315 )
Net income 11,448     29,805  
Loss (income) attributable to non-controlling interest 2     (264 )
Net income attributable to Hi-Crush Partners LP $ 11,450     $ 29,541  
Earnings per unit:      
Common units - basic $ 0.31     $ 0.77  
Subordinated units - basic $ 0.31     $ 0.77  
Common units - diluted $ 0.31     $ 0.75  
Subordinated units - diluted $ 0.31     $ 0.75  


Unaudited Condensed Consolidated Statements of Operations
(Amounts in thousands, except per unit amounts)

  Six Months Ended
  June 30,
  2015   2014 (a)
Revenues $ 186,069     $ 153,302  
Cost of goods sold (including depreciation, depletion and amortization) 132,337     88,025  
Gross profit 53,732     65,277  
Operating costs and expenses:      
General and administrative expenses 11,967     13,104  
Accretion of asset retirement obligation 167     123  
Income from operations 41,598     52,050  
Other income (expense):      
Interest expense (6,296 )   (3,725 )
Net income 35,302     48,325  
Income attributable to non-controlling interest (167 )   (412 )
Net income attributable to Hi-Crush Partners LP $ 35,135     $ 47,913  
Earnings per unit:      
Common units - basic $ 0.92     $ 1.32  
Subordinated units - basic $ 0.92     $ 1.32  
Common units - diluted $ 0.91     $ 1.25  
Subordinated units - diluted $ 0.91     $ 1.25  

(a) Financial information has been recast to include the financial position and results attributable to Hi-Crush Augusta LLC.


Unaudited EBITDA and Distributable Cash Flow
(in thousands)

  Three Months Ended
  June 30,
  2015   2014
Reconciliation of distributable cash flow to net income:      
Net income $ 11,448     $ 29,805  
Depreciation and depletion expense 4,035     2,428  
Amortization expense 733     1,067  
Interest expense 2,979     2,315  
EBITDA $ 19,195     $ 35,615  
Less: Cash interest paid (2,564 )   (2,010 )
Less: Loss (income) attributable to non-controlling interest 2     (264 )
Less: Maintenance and replacement capital expenditures, including accrual for reserve replacement (a) (1,120 )   (1,288 )
Add: Accretion of asset retirement obligation 84     66  
Add: Unit based compensation 1,053     353  
Distributable cash flow $ 16,650     $ 32,472  
Adjusted for:  Distributable cash flow attributable to Hi-Crush Augusta LLC, net of intercompany eliminations, prior to the Augusta Contribution (b) -     (3,010 )
Distributable cash flow attributable to Hi-Crush Partners LP 16,650     29,462  
Less:  Distributable cash flow attributable to holders of incentive distribution rights -     (2,453 )
Distributable cash flow attributable to common and subordinated unitholders $ 16,650     $ 27,009  

(a)              Maintenance and replacement capital expenditures, including accrual for reserve replacement, were determined based on an estimated reserve replacement cost of $1.35 per ton produced and delivered during the period. Such expenditures include those associated with the replacement of equipment and sand reserves, to the extent that such expenditures are made to maintain our long-term operating capacity. The amount presented does not represent an actual reserve account or requirement to spend the capital.

(b)              The Partnership's historical financial information has been recast to consolidate Augusta for all periods presented. For purposes of calculating distributable cash flow attributable to Hi-Crush Partners LP, the Partnership excludes the incremental amount of recasted distributable cash flow earned during the periods prior to the acquisition by the Partnership on April 28, 2014 of substantially all of the remaining equity interests in Hi-Crush Augusta LLC (the "Augusta Contribution").


Unaudited EBITDA and Distributable Cash Flow
(in thousands)

  Six Months Ended
  June 30,
  2015   2014
Reconciliation of distributable cash flow to net income:      
Net income $ 35,302     $ 48,325  
Depreciation and depletion expense 5,712     3,904  
Amortization expense 1,466     3,604  
Interest expense 6,296     3,725  
EBITDA $ 48,776     $ 59,558  
Less: Cash interest paid (5,469 )   (3,282 )
Less: Income attributable to non-controlling interest (167 )   (412 )
Less: Maintenance and replacement capital expenditures, including accrual for reserve replacement (a) (2,379 )   (2,257 )
Add: Accretion of asset retirement obligation 167     123  
Add: Unit based compensation 1,937     353  
Distributable cash flow $ 42,865     $ 54,083  
Adjusted for:  Distributable cash flow attributable to Hi-Crush Augusta LLC, net of intercompany eliminations, prior to the Augusta Contribution (b) -     (7,199 )
Distributable cash flow attributable to Hi-Crush Partners LP 42,865     46,884  
Less:  Distributable cash flow attributable to holders of incentive distribution rights (1,311 )   (2,453 )
Distributable cash flow attributable to common and subordinated unitholders $ 41,554     $ 44,431  

(a)              Maintenance and replacement capital expenditures, including accrual for reserve replacement, were determined based on an estimated reserve replacement cost of $1.35 per ton produced and delivered during the period. Such expenditures include those associated with the replacement of equipment and sand reserves, to the extent that such expenditures are made to maintain our long-term operating capacity. The amount presented does not represent an actual reserve account or requirement to spend the capital.

(b)              The Partnership's historical financial information has been recast to consolidate Augusta for all periods presented. For purposes of calculating distributable cash flow attributable to Hi-Crush Partners LP, the Partnership excludes the incremental amount of recasted distributable cash flow earned during the periods prior to the acquisition by the Partnership on April 28, 2014 of substantially all of the remaining equity interests in Hi-Crush Augusta LLC (the "Augusta Contribution").


Unaudited Condensed Consolidated Cash Flow Information
(Amounts in thousands)

  Six Months Ended
  June 30,
  2015   2014 (a)
Operating activities $ 58,027     $ 53,679  
Investing activities (39,633 )   (234,311 )
Financing activities (16,117 )   191,152  
Net increase in cash $ 2,277     $ 10,520  

(a) Financial information has been recast to include the financial position and results attributable to Hi-Crush Augusta LLC.


Unaudited Condensed Consolidated Balance Sheets
(Amounts in thousands, except unit amounts)

  June 30,   December 31,
  2015   2014
Assets      
Current assets:      
Cash $ 6,923     $ 4,646  
Restricted cash 691     691  
Accounts receivable, net 53,140     82,117  
Inventories 28,142     23,684  
Prepaid expenses and other current assets 3,971     4,081  
Total current assets 92,867     115,219  
Property, plant and equipment, net 266,529     241,325  
Goodwill and intangible assets, net 65,284     66,750  
Other assets 11,681     12,826  
Total assets $ 436,361     $ 436,120  
Liabilities, Equity and Partners' Capital      
Current liabilities:      
Accounts payable $ 11,766     $ 24,878  
Accrued and other current liabilities 9,951     12,248  
Due to sponsor 7,739     13,459  
Current portion of long-term debt 2,000     2,000  
Total current liabilities 31,456     52,585  
Long-term debt 235,006     198,364  
Asset retirement obligation 6,897     6,730  
Total liabilities 273,359     257,679  
Commitments and contingencies      
Equity and partners' capital:      
General partner interest -     -  
Limited partner interests, 36,958,770 and 36,952,426 units outstanding, respectively 160,356     175,962  
Total partners' capital 160,356     175,962  
Non-controlling interest 2,646     2,479  
Total equity and partners' capital 163,002     178,441  
Total liabilities, equity and partners' capital $ 436,361     $ 436,120  


Unaudited Per Ton Operating Activity

  Three Months Ended   Six Months Ended
  June 30,   June 30,
  2015   2014   2015   2014
Sand sold (in tons) 1,190,156     1,024,052     2,385,499     1,922,295  
Sand produced and delivered (in tons) 829,813     953,361     1,762,568     1,671,527  
Production costs ($ in thousands) $ 11,159     $ 13,534     $ 26,347     $ 28,370  
Production costs per ton $ 13.45     $ 14.20     $ 14.95     $ 16.97  


Unaudited Net Income per Limited Partner Unit
(Amounts in thousands, except units and per unit amounts)

  Three Months Ended   Six Months Ended
  June 30,   June 30,
Weighted average limited partner units outstanding: 2015   2014   2015   2014
Common units - basic 23,318,419     18,828,359     23,318,174     17,040,874  
Subordinated units - basic 13,640,351     13,640,351     13,640,351     13,640,351  
Common units - diluted 23,560,423     22,721,490     23,560,178     20,934,005  
Subordinated units - diluted 13,640,351     13,640,351     13,640,351     13,640,351  

Reconciliation of net income and the assumed allocation of net income under the two-class method for purposes of computing earnings per unit:

  For the Three Months Ended June 30, 2015
  General Partner and IDRs   Common Units   Subordinated Units   Total
Declared distribution $ -     $ 11,076     $ 6,479     $ 17,555  
Assumed allocation of distributions in excess of earnings -     (3,852 )   (2,253 )   (6,105 )
Limited partners' interest in net income $ -     $ 7,224     $ 4,226     $ 11,450  
               
Earnings per unit - basic     $ 0.31     $ 0.31      
Earnings per unit - diluted     $ 0.31     $ 0.31      

  For the Six Months Ended June 30, 2015
  General Partner and IDRs   Common Units   Subordinated Units   Total
Declared distribution $ 1,311     $ 26,816     $ 15,686     $ 43,813  
Assumed allocation of distributions in excess of earnings -     (5,475 )   (3,203 )   (8,678 )
Limited partners' interest in net income $ 1,311     $ 21,341     $ 12,483     $ 35,135  
               
Earnings per unit - basic     $ 0.92     $ 0.92      
Earnings per unit - diluted     $ 0.91     $ 0.91      

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