Hi-Crush Partners (HCLP) Declares $0.15 Quarterly Dividend; Approves $100M Buyback

Hi-Crush Partners (NYSE: HCLP) declared a quarterly dividend of $0.15 per share, or $0.6 annualized.

The dividend will be payable on November 14, 2017, to stockholders of record on October 31, 2017, with an ex-dividend date of October 30, 2017.

The annual yield on the dividend is 6.7 percent.

Separately, the Board of Directors also approved a unit buyback program of up to $100 million.

"The stabilization of market conditions, combined with strong demand for frac sand and logistics services has benefited our business," said Laura Fulton, Chief Financial Officer of Hi-Crush. "We prudently expanded our geographic reach and operational capabilities in response to continued strong customer demand, and our volumes and cash flow have improved markedly. With this in mind, our management, along with the Board of Directors, determined that the timing was appropriate to resume capital return to unitholders and to do so in two distinct ways. First, by reinstating cash quarterly distributions to unitholders, effective beginning the third quarter, payable in the fourth quarter of 2017. And second, by pursuing an opportunistic unit buyback on the open market of up to $100 million as authorized by our Board."

The buyback authorization is effective immediately, and the program will continue until otherwise modified or terminated by the Board of Directors in its sole discretion and without notice. The Partnership has authority at this time under its Term Loan and Revolving Credit Agreement for repurchases of up to $20 million which, over the near-term and combined with the initial quarterly distribution and its expected growth, is well-aligned with Hi-Crush's capital return intentions. The Partnership will seek consent allowing for the authorized amount of up to $100 million. The buyback program does not obligate the Partnership to repurchase any specific dollar amount or number of units and may be suspended or discontinued at any time.

"The third quarter cash distribution, augmented by the buyback program, reflects a thoughtful balance for our long-term capital return program and furthers our goal of maximizing value to our unitholders," said Robert E. Rasmus, Chief Executive Officer of Hi-Crush. "The proactive and prudent actions we took over the course of the industry downturn during the last two years, and the subsequent upturn in activity, have resulted in our ability to generate strong cash flow and positioned Hi-Crush to begin returning capital to unitholders. With this initial distribution, we are setting the foundation for sustainable and meaningful growth over the near and long term. We continue to see fundamentals for the frac sand industry improving and believe we are uniquely positioned to take advantage as we execute on our operational strategy of Mine. Move. Manage."

For a dividend history and other dividend-related data on Hi-Crush Partners (HCLP) click here.

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