Q4 2019 Earnings Presentation February 2020 Hi-Crush, Inc. (NYSE: HCR)
Forward Looking Statements and Non-GAAP Measures Forward-Looking Statements and Cautionary Statements Some of the information in this presentation 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," "should," "assume," "forecast," "position," "predict," "strategy," "expect," "intend," "hope," "plan," "estimate," "anticipate," "could," "believe," "project," "budget," "potential," "likely," 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 Inc.’s reports filed with the SEC, including those described under Item 1A of Hi-Crush Inc.’s Form 10-K for the year ended December 31, 2019. 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, 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 Inc.’s forward-looking statements speak only as of the date made and Hi-Crush Inc. undertakes no obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise. Use of Non-GAAP Information This presentation may include non-GAAP financial measures. Such non-GAAP measures are not alternatives to GAAP measures, and you should not consider these non-GAAP measures in isolation or as a substitute for analysis of our results as reported under GAAP. For additional disclosure regarding such non-GAAP measures, including reconciliations to their most directly comparable GAAP measure, please refer to Hi-Crush Inc.’s most recent earnings release at www.hicrushinc.com. Investor Presentation | February 2020 2
Operational Update & Strategy
Fully-Integrated Solutions Offering Benefits of our efficient, reliable, high- quality, technology-enabled solutions: Increased drilling & completion efficiency Lower cost for us and our customers Ability to remain responsive to customer needs Differentiated sustainability & safety benefits Investor Presentation | February 2020 4
Differentiation in a Fragmented Industry We are the only full-service solutions provider in highly-fragmented industry Fully-integrated Generates sustainable, platform reduces costs long-term value for all for us and customers stakeholders Partners closely Delivers higher with E&P margin via increased customers operational efficiency Uses technology to drive Enhances operational productivity & deepen leverage across customer integration basins Investor Presentation | February 2020 5
4Q and FY19 Results 4Q19 and FY19 Current Updates • Last mile truckloads delivered were steady • Achieved record monthly truckloads of for much of 4Q19; seasonal decline in the ~30,700 in January 2020 last two weeks of December • Commencing work throughout 1Q20 • FY19 total truckloads of ~264,000 for new logistics services customers • Deployed additional NexStage silos • Deployed next generation NexStage silos with existing customer during 1Q20 to major Permian E&P • Scheduled additional deployments of silos with other E&Ps • Reported 4Q19 frac sand sales volumes of • Highest January frac sand sales 2.1mm tons, including 70% to E&Ps volumes in company history realized in January 2020 • Realized FY19 frac sand sales volumes of 9.9mm tons • Latest release improves integration with • Continued expansion of software silo inventory systems and terminal assets, capabilities and further integration with and improves data integrity to enable more Hi-Crush logistics solutions accurate analysis Investor Presentation | February 2020 6
Fully-Integrated Platform Customer Solutions Logistics Mobile Solution Equipment Flexible solutions Mobile processing units Silos & container Real-time logistics and inventory management software In-Basin Terminal Network Northern White Production facilities Owned & operated Production facilities Fully-Integrated Platform Investor Presentation | February 2020 7
Integrated Platform Tailored to Serve E&Ps E&P Benefits Hi-Crush Benefits Expansion of sales to E&P customers driven by of Aligning with Hi-Crush of Aligning with E&Ps accelerating adoption of last-mile services Dedicated frac sand provider E&Ps value strategic with sand, silos, containers relationships with suppliers and integrated technology offering differentiated, reliable, 70% fully-integrated solutions Optionality in last mile and of 4Q19 volumes sold to E&P customers in-basin delivery points Greater visibility into evolving activity, demand trends and Diversified operations 66% 70% market fundamentals across all major basins Addressing E&Ps’ need for a Integrated production and 51% direct-sourced, preferred delivery process aligned with provider of flexible, full-scope dynamic planning cycles 33% proppant logistics solutions Reliable supply from multiple Partnering with the right E&Ps frac sand production 14% facilities enhances stability as drilling & 0% completion “manufacturing” Safety centric culture with a programs are more consistent track-record among the best through commodity cycles in industry % of total quarterly sales volumes Investor Presentation | February 2020 8
Our Operational Reach All Basins Highlights Bakken Wisconsin Marcellus / Utica • Pronghorn last mile solutions operating in all major basins Powder River • NexStage deploying innovative equipment supporting efficient last mile delivery and wellsite management DJ / Niobrara • Hi-Crush sand MidCon production facilities and terminal network meet customers demand for efficient sand supply Permian • PropDispatch utilized for major market share of trucking logistics Eagle Ford Investor Presentation | February 2020 9
PropDispatch: Real-Time Logistics Management Key Benefits Increased efficiency: Reduce landed sand Real-time monitoring of truckloads cost with real-time data on turn times, driver between transload & well pad performance, congestion and demurrage Enhanced stage reporting: Delivers Manages and displays well pad enhanced inventory management capabilities inventory to plan for future stages and ordering Weight surety: Assists drivers to ensure Delivers real-time comprehensive maximum weight per load customer dashboards ELD connectivity: Integrates with electronic logging device platforms to capture driver Efficiently dispatches drivers based availability and assist in dispatch process on location and proximity to supply Investor Presentation | February 2020 10
Corporate Values Evidence Commitment to ESG Inaugural Corporate Responsibility Report Evidence of Our Commitment (published December 2019) Hi-Crush Total Recordable Incident Rate (TRIR) 46% below industry average 1 Lowest greenhouse gas emissions per ton of sand sold among reporting companies 2 >90% reduction of particulate matter emissions >90% from wellsite sand operations from Pronghorn, meeting OSHA PEL regulations Our Wisconsin production facilities participate in the Wisconsin Department of Natural Resources Green Tier Program as a Tier 1 participant To access our Responsibility materials: 1)Based on 1.3 Total Recordable Incident Rate (TRIR) for total company during 2019; sand https://www.hicrushinc.com/responsibility mining industry average TRIR during 2019 of 1.9. 2)Reported 0.022 MT of CO2 produced per ton of sand sold during 2018 Investor Presentation | February 2020 11
Last Mile Innovation
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