Hi-Crush Inc. Initiates $25 Million Stock Repurchase Program
10 Juni 2019 - 12:02PM
Hi-Crush Inc. (NYSE: HCR), "Hi-Crush" or the "Company", today
announced that the Board of Directors has approved a stock
repurchase program of up to $25 million, effective immediately and
authorized through June 30, 2020.
“The Board authorized repurchase program and the
recent purchases of shares by management reflect ongoing confidence
in our strategy and strength of our balance sheet, and represents
nearly 15% of our outstanding shares at last week’s closing price,"
said Robert E. Rasmus, Chairman and Chief Executive Officer of
Hi-Crush. "We are committed to executing the program, and current
prices and valuations provide an attractive basis for
repurchase.”
The Company has no restrictions with regard to
stock repurchases under its senior secured revolving credit
facility (the "ABL Facility") and Senior Notes due 2026. The
repurchase program does not obligate the Company to repurchase any
specific dollar amount or number of shares, and may be suspended,
modified or discontinued by the Board of Directors at any time, in
its sole discretion and without notice.
Liquidity
As of June 7, 2019, Hi-Crush had $53.7 million
of cash and $55.0 million in available borrowing capacity under the
ABL Facility, resulting in total liquidity of $108.7 million.
As of June 7, 2019, the Company had no borrowings under the ABL
Facility, and was in compliance with the terms and conditions under
all credit agreements.
"Our balance sheet remains very well-positioned
to support ongoing strategic and accretive initiatives, including
returning capital to our shareholders through the stock repurchase
program, while maintaining strong liquidity and financial
flexibility," said Laura C. Fulton, Chief Financial Officer of
Hi-Crush. "We continue to benefit from the proactive actions we
took last year to further strengthen our balance sheet, including
having no maintenance covenants in our debt agreements and no
maturities until 2026. The repurchase program will be funded
from existing cash generated from the business, potential
reductions in our capex spending and future free cash flow."
Outlook and Operational
Update
The Company reiterated its guidance for
quarterly sales volumes in the range of 2.5 to 2.7 million tons in
the second quarter of 2019. The Company currently has 15
PropStream® and Pronghorn Logistics container crews operating
throughout major U.S. basins and 8 silo systems and top-fill
conveyor systems deployed in the Permian and Marcellus/Utica shale
basins.
About Hi-Crush
Hi-Crush is a fully integrated, strategic
provider of technology and logistics solutions in the proppant
market to the North American petroleum industry. Our integrated
suite of offerings, including PropDispatch trucking software, range
of equipment solutions for wellsite storage and delivery, and owned
and operated terminals and frac sand mining facilities, as well as
third party sources for proppant, provides customers with
mine-to-wellsite logistics solutions in all major oil and gas
basins in the United States. Our PropStream and Pronghorn Logistics
service brands, offering both silo- and container-based wellsite
delivery and storage systems, provide the highest level of
flexibility, safety and efficiency in managing the full scope and
value of the proppant supply chain. Visit HiCrush.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,"
"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’s reports filed
with the SEC, including those described under Item 1A of Hi-Crush’s
Form 10-K for the year ended December 31, 2018 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, 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:Caldwell Bailey, Lead Investor
Relations AnalystMarc Silverberg, ICRir@hicrush.com(713)
980-6270
Source: Hi-Crush Inc.
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