Hi-Crush Partners (HCLP) Rating Increased to Hold at Zacks Investment Research

Hi-Crush Partners (NYSE:HCLP) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report released on Thursday.

According to Zacks, “Hi-Crush Partners LP engages in the production of monocrystalline sand, a specialized mineral that is used as a proppant to enhance the recovery rates of hydrocarbons from oil and natural gas wells. The Company reserves consist of Northern White sand, a resource existing in Wisconsin and limited portions of the upper Midwest region of the United States. It owns, operates and develops sand reserves and related excavation and processing facilities. Hi-Crush Partners LP is based in Houston, Texas. “

Other analysts also recently issued reports about the company. UBS Group reiterated a “buy” rating and set a $17.00 target price on shares of Hi-Crush Partners in a research report on Saturday, October 21st. The outlook for HCLP has turned more favourable, it reported a 3Q beat, recently announced the reinstatement of its distribution as well as a share buyback, and completed its Kermit facility and Pecos Terminal. Additionally mgmnt guided to 4Q sales volumes in the range of 2.7-2.9MM tons vs. UBSe of 2.6MM tons as it should benefit from the continued ramp of the Kermit facility. We expect HCLPs Propsteam business to continue to be a positive and it noted plans to grow the total number of crews to nine or more from seven by year end. On the pricing front, HCLP noted its expectation for modest improvements through the end of the year. With a 2018 total capex in the range of $35-$45MM and UBSe of more than $100MM of retained DCF, HCLP is 100% self-funded. We look for color on tomorrows call around the features on its credit facility, and hurdles that HCLP needs to pass to allow for the full $100MM of its buyback to be authorized, as well as how we should be thinking about the timing of the buyback. Credit Suisse Group restated an “outperform” rating and issued a $15.00 price objective on shares of Hi-Crush Partners in a report on Tuesday, October 17th. We think HCLP’s decision to return capital to shareholders ($0.15/unit distribution and $100M buyback) is a critical first step in making the frac sand space investable again. After a euphoric start to 2017, capacity addition concerns (generally and specific to Permian basin sand mines) drove significant underperformance in the frac sand space. Investors look out to 2018 and see the significant cash flow generation potential in the sector, but have worried that cash flow would be used to build new capacity, exacerbating current investor concerns. Our view is that similar moves by other leading frac sand companies (with healthy balance sheets and strong free cash flow profiles into 2018) would go a long way toward re-establishing the sector. Piper Jaffray Companies set a $12.00 price objective on Hi-Crush Partners and gave the company a “buy” rating in a report on Tuesday, October 31st. BidaskClub downgraded Hi-Crush Partners from a “buy” rating to a “hold” rating in a report on Tuesday, October 17th. Finally, Seaport Global Securities initiated coverage on Hi-Crush Partners in a report on Friday, December 8th. They issued a “buy” rating and a $17.00 price objective for the company. Four analysts have rated the stock with a hold rating and thirteen have assigned a buy rating to the stock. The stock presently has an average rating of “Buy” and a consensus price target of $16.62.

Shares of Hi-Crush Partners (NYSE HCLP) opened at $11.70 on Thursday. Hi-Crush Partners has a 52-week low of $7.25 and a 52-week high of $23.30. The firm has a market capitalization of $1,115.13, a price-to-earnings ratio of 36.56 and a beta of 1.04. The company has a debt-to-equity ratio of 0.24, a quick ratio of 1.29 and a current ratio of 1.77.

Hi-Crush Partners declared that its board has initiated a stock repurchase plan on Tuesday, October 17th that authorizes the company to repurchase $100.00 million in outstanding shares. This repurchase authorization authorizes the basic materials company to buy shares of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s board of directors believes its shares are undervalued.

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Principal Financial Group Inc. grew its stake in Hi-Crush Partners by 11.0% in the second quarter. Principal Financial Group Inc. now owns 30,720 shares of the basic materials company’s stock valued at $333,000 after purchasing an additional 3,053 shares during the last quarter. Malaga Cove Capital LLC grew its stake in Hi-Crush Partners by 5.2% in the fourth quarter. Malaga Cove Capital LLC now owns 87,364 shares of the basic materials company’s stock valued at $935,000 after purchasing an additional 4,345 shares during the last quarter. Advisor Group Inc. grew its stake in Hi-Crush Partners by 80.5% in the third quarter. Advisor Group Inc. now owns 15,780 shares of the basic materials company’s stock valued at $151,000 after purchasing an additional 7,036 shares during the last quarter. Valicenti Advisory Services Inc. grew its stake in Hi-Crush Partners by 6.1% in the third quarter. Valicenti Advisory Services Inc. now owns 131,425 shares of the basic materials company’s stock valued at $1,249,000 after purchasing an additional 7,500 shares during the last quarter. Finally, Barnett & Company Inc. grew its stake in Hi-Crush Partners by 20.8% in the fourth quarter. Barnett & Company Inc. now owns 43,895 shares of the basic materials company’s stock valued at $470,000 after purchasing an additional 7,550 shares during the last quarter. Institutional investors own 43.02% of the company’s stock.

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Hi-Crush Partners Company Profile

Hi-Crush Partners LP is an integrated producer, transporter, marketer and distributor of monocrystalline sand, a specialized mineral that is used as a proppant to manage the recovery rates of hydrocarbons from oil and natural gas wells. Its reserves consist of northern white sand, a resource in Wisconsin and limited portions of the upper Midwest region of the United States.

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Analyst Recommendations for Hi-Crush Partners (NYSE:HCLP)

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