Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 10, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | Hi-Crush Partners LP | ||
Trading Symbol | HCLP | ||
Entity Central Index Key | 1,549,848 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 63,697,392 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 459,499,010 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | [1] |
Current assets: | |||
Cash | $ 4,314 | $ 11,054 | |
Accounts receivable, net | 52,834 | 41,477 | |
Inventories | 24,338 | 27,971 | |
Prepaid expenses and other current assets | 2,714 | 4,840 | |
Total current assets | 84,200 | 85,342 | |
Property, plant and equipment, net | 416,950 | 393,512 | |
Goodwill and intangible assets, net | 10,097 | 45,524 | |
Equity method investments | 10,232 | 0 | |
Other assets | 7,831 | 9,830 | |
Total assets | 529,310 | 534,208 | |
Current liabilities: | |||
Accounts payable | 18,223 | 24,237 | |
Accrued and other current liabilities | 7,877 | 6,429 | |
Due to sponsor | 1,100 | 106,746 | |
Current portion of long-term debt | 2,962 | 3,258 | |
Total current liabilities | 30,162 | 140,670 | |
Long-term debt | 193,458 | 246,783 | |
Asset retirement obligations | 7,808 | 7,066 | |
Other liabilities | 5,000 | 0 | |
Total liabilities | 236,428 | 394,519 | |
Commitments and contingencies | |||
Equity and partners' capital: | |||
General partner interest | 0 | 0 | |
Limited partners interest, 63,668,244 and 36,959,970 units outstanding, respectively | 290,357 | 134,096 | |
Total partners' capital | 290,357 | 134,096 | |
Non-controlling interest | 2,525 | 5,593 | |
Total equity and partners' capital | 292,882 | 139,689 | |
Total liabilities, equity and partners' capital | $ 529,310 | $ 534,208 | |
[1] | Financial information has been recast to include the financial position and results attributable to Hi-Crush Blair LLC. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Limited partners interest, units outstanding | 63,668,244 | 36,959,970 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | [1] | Dec. 31, 2014 | [1],[2] | |
Income Statement [Abstract] | |||||
Revenues | $ 204,430 | $ 339,640 | $ 386,547 | ||
Cost of goods sold (excluding depreciation, depletion and amortization) | 189,193 | 248,172 | 215,356 | ||
Depreciation, depletion and amortization | 15,437 | 13,199 | 10,628 | ||
Gross profit (loss) | (200) | 78,269 | 160,563 | ||
Operating costs and expenses: | |||||
General and administrative expenses | 33,198 | 24,890 | 26,451 | ||
Impairments and other expenses (Note 14) | 34,025 | 25,659 | 0 | ||
Accretion of asset retirement obligations | 369 | 336 | 246 | ||
Other operating income | 0 | (12,310) | 0 | ||
Income (loss) from operations | (67,792) | 39,694 | 133,866 | ||
Other income (expense): | |||||
Interest expense | (13,341) | (13,903) | (9,946) | ||
Net income (loss) | (81,133) | 25,791 | 123,920 | ||
(Income) loss attributable to non-controlling interest | 99 | (145) | (955) | ||
Net income (loss) attributable to Hi-Crush Partners LP | $ (81,034) | $ 25,646 | $ 122,965 | ||
Earnings (loss) per limited partner unit: | |||||
Earnings (loss) per limited partner unit - basic (usd per unit) | $ (1.64) | $ 0.73 | $ 3.09 | ||
Earnings (loss) per limited partner unit - diluted (usd per unit) | $ (1.64) | $ 0.73 | $ 3 | ||
[1] | Financial information has been recast to include the financial position and results attributable to Hi-Crush Blair LLC. | ||||
[2] | Financial information has been recast to include the financial position and results attributable to Hi-Crush Augusta LLC. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | [2] | |||
Operating activities: | ||||||
Net income (loss) | $ (81,133) | $ 25,791 | [1] | $ 123,920 | [1] | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||
Depreciation and depletion | 15,444 | 12,270 | [1] | 8,858 | [1] | |
Amortization of intangible assets | 1,682 | 2,620 | [1] | 5,186 | [1] | |
Loss on impairments of goodwill and intangible assets | 33,745 | 18,606 | [1] | 0 | [1] | |
Provision for doubtful accounts | 8,236 | 0 | [1] | 0 | [1] | |
Unit-based compensation to directors and employees | 2,620 | 2,983 | [1] | 1,470 | [1] | |
Amortization of loan origination costs into interest expense | 1,866 | 2,293 | [1] | 1,264 | [1] | |
Accretion of asset retirement obligations | 369 | 336 | [1] | 246 | [1] | |
(Gain) loss on disposal or impairments of property, plant and equipment | (357) | 6,514 | [1] | 0 | [1] | |
Management fees paid by Member on behalf of Hi-Crush Augusta LLC | 0 | 0 | [1] | 492 | [1] | |
Changes in operating assets and liabilities: | ||||||
Accounts receivable | (19,593) | 40,640 | [1] | (44,675) | [1] | |
Inventories | 3,946 | (2,406) | [1] | (1,738) | [1] | |
Prepaid expenses and other current assets | 2,105 | 1,645 | [1] | (4,837) | [1] | |
Other assets | 1,360 | (2,962) | [1] | (2,974) | [1] | |
Accounts payable | 2,037 | (3,773) | [1] | 6,889 | [1] | |
Accrued and other current liabilities | 1,425 | (6,468) | [1] | 4,580 | [1] | |
Due to sponsor | (396) | (14,440) | [1] | 5,584 | [1] | |
Net cash provided by (used in) operating activities | (26,644) | 83,649 | [1] | 104,265 | [1] | |
Investing activities: | ||||||
Capital expenditures for property, plant and equipment | (42,591) | (121,358) | [1] | (82,181) | [1] | |
Proceeds from sale of property, plant and equipment | 1,403 | 0 | [1] | 0 | [1] | |
Cash used for business combinations | (75,000) | 0 | [1] | (224,250) | [1] | |
Equity method investments | (10,232) | 0 | [1] | 0 | [1] | |
Restricted cash, net | 0 | 691 | [1] | 0 | [1] | |
Net cash used in investing activities | (126,420) | (120,667) | [1] | (306,431) | [1] | |
Financing activities: | ||||||
Proceeds from equity issuances, net | 189,037 | 0 | [1] | 170,693 | [1] | |
Proceeds from issuance of long-term debt | 0 | 65,000 | [1] | 198,000 | [1] | |
Repayment of long-term debt | (58,396) | (14,928) | [1] | (139,750) | [1] | |
Loan origination costs | (128) | (406) | [1] | (7,120) | [1] | |
Affiliate financing, net | 15,700 | 63,266 | [1] | 41,984 | [1] | |
Proceeds from unit purchase program participants | 111 | 403 | [1] | 0 | [1] | |
Redemption of common units | 0 | 0 | [1] | (19) | [1] | |
Distributions paid | 0 | (70,072) | [1] | (77,421) | [1] | |
Net cash provided by financing activities | 146,324 | 43,263 | [1] | 186,367 | [1] | |
Net increase (decrease) in cash | (6,740) | 6,245 | [1] | (15,799) | [1] | |
Cash at beginning of period | [1] | 11,054 | 4,809 | [2] | 20,608 | |
Cash at end of period | 4,314 | 11,054 | [1] | 4,809 | [1] | |
Non-cash investing and financing activities: | ||||||
Increase (decrease) in accounts payable and accrued liabilities for additions to property, plant and equipment | (8,051) | 1,962 | [1] | 9,051 | [1] | |
Increase in property, plant and equipment for asset retirement obligations | 373 | 0 | [1] | 1,857 | [1] | |
Debt financed capital expenditures | 3,676 | 3,676 | [1] | 3,676 | [1] | |
Estimated fair value of contingent consideration liability | 5,000 | 0 | [1] | 0 | [1] | |
Increase (decrease) in accrued distribution equivalent rights | (88) | 245 | [1] | 0 | [1] | |
Due to sponsor balance converted into non-controlling interest | 120,950 | 0 | [1] | 0 | [1] | |
Expense paid by Member on behalf of Hi-Crush Blair LLC | 1,652 | 2,787 | [1] | 182 | [1] | |
Cash paid for interest | $ 11,475 | $ 11,610 | [1] | $ 8,682 | [1] | |
[1] | Financial information has been recast to include the financial position and results attributable to Hi-Crush Blair LLC. | |||||
[2] | Financial information has been recast to include the financial position and results attributable to Hi-Crush Augusta LLC. |
Consolidated Statements of Part
Consolidated Statements of Partners' Capital - USD ($) $ in Thousands | Total | General Partner Capital | Preferred PartnerClass B Units | Limited Partner Capital | Limited Partner CapitalCommon Units | Limited Partner CapitalSponsor Subordinated Units | Total Partner Capital | Noncontrolling Interest | ||
Partners' Capital, beginning balance at Dec. 31, 2013 | $ 183,354 | $ 9,543 | $ 138,580 | $ 88,321 | $ 50,259 | $ 148,123 | $ 35,231 | |||
Increase (Decrease) in Partners' Capital | ||||||||||
Issuance of common units to directors and employees | 458 | 458 | 458 | 458 | ||||||
Unit-based compensation expense | 1,109 | 1,109 | 1,109 | 1,109 | ||||||
Management Fees paid by sponsor on behalf of the Partnership | [1] | 492 | 492 | |||||||
Issuance of common units, net | 170,693 | 170,693 | 170,693 | 170,693 | ||||||
Acquisition of business | (224,250) | (190,051) | (111,794) | (78,257) | (190,051) | (34,199) | ||||
Redemption of common units | (19) | (19) | (19) | (19) | ||||||
Conversion into common units | 0 | (9,543) | 9,543 | 9,543 | ||||||
Distributions, including distribution equivalent rights | [1] | (77,421) | $ (863) | (76,558) | (46,073) | (30,485) | (77,421) | |||
Non-cash contributions by sponsor | [2] | 182 | [1] | 182 | ||||||
Net income (loss) | [1],[2] | 123,920 | 863 | 122,102 | 72,342 | 49,760 | 122,965 | 955 | ||
Partners' Capital, ending balance at Dec. 31, 2014 | 178,518 | 0 | $ 0 | 175,857 | 184,580 | (8,723) | 175,857 | 2,661 | ||
Increase (Decrease) in Partners' Capital | ||||||||||
Issuance of common units to directors and employees | 200 | 200 | 200 | 200 | ||||||
Unit-based compensation expense | 2,710 | 2,710 | 2,710 | 2,710 | ||||||
Conversion into common units | [2] | 0 | (21,393) | 21,393 | ||||||
Distributions, including distribution equivalent rights | (70,317) | (2,622) | (67,695) | (42,802) | (24,893) | (70,317) | ||||
Non-cash contributions by sponsor | [2] | 2,787 | 2,787 | |||||||
Net income (loss) | [2] | 25,791 | 2,622 | 23,024 | 10,801 | 12,223 | 25,646 | 145 | ||
Partners' Capital, ending balance at Dec. 31, 2015 | 139,689 | [2] | 0 | 134,096 | 134,096 | 0 | 134,096 | 5,593 | ||
Increase (Decrease) in Partners' Capital | ||||||||||
Issuance of common units to directors and employees | 453 | 453 | 453 | 453 | ||||||
Unit-based compensation expense | 2,146 | 2,146 | 2,146 | 2,146 | ||||||
Issuance of common units, net | 189,037 | 189,037 | 189,037 | 189,037 | ||||||
Acquisition of business | (80,000) | 45,571 | 45,571 | 45,571 | (125,571) | |||||
Forfeiture of distribution equivalent rights | 88 | 88 | 88 | 88 | ||||||
Non-cash contributions by sponsor | 1,652 | 1,652 | ||||||||
Conversion of advances to Hi-Crush Proppants LLC | 120,950 | 120,950 | ||||||||
Net income (loss) | (81,133) | 0 | (81,034) | (81,034) | 0 | (81,034) | (99) | |||
Partners' Capital, ending balance at Dec. 31, 2016 | $ 292,882 | $ 0 | $ 290,357 | $ 290,357 | $ 0 | $ 290,357 | $ 2,525 | |||
[1] | Financial information has been recast to include the financial position and results attributable to Hi-Crush Augusta LLC. | |||||||||
[2] | Financial information has been recast to include the financial position and results attributable to Hi-Crush Blair LLC. |
Consolidated Statements of Par7
Consolidated Statements of Partners' Capital (Parenthetical) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Number of common units issued to directors and employees (in units) | 103,377 | 6,344 | 12,554 |
Number of common units issued (in units) | 19,550,000 | 4,325,000 | |
Number of common units acquired in acquisition (in units) | 390,000 | ||
Number of common units redeemed (in units) | 299 | ||
Class B Units | |||
Class B units converted into common units (in units) | 3,750,000 |
Business and Organization
Business and Organization | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Organization | Business and Organization Hi-Crush Partners LP (together with its subsidiaries, the “Partnership”, "we", "us" or "our") is a Delaware limited partnership formed on May 8, 2012. In connection with its formation, the Partnership issued a non-economic general partner interest to Hi-Crush GP LLC (the “General Partner”), and a 100% limited partner interest to Hi-Crush Proppants LLC (the “sponsor”), its organizational limited partner. The Partnership 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. The Partnership owns and operates a portfolio of sand facilities with on-site wet and dry plant assets, including direct access to major U.S. railroads for distribution to in-basin terminals. We own and operate a network of strategically located terminals and an integrated distribution system throughout North America, including our PropStream TM integrated logistics solution, which delivers proppant into the blender at the well site. On January 31, 2013, the Partnership entered into an agreement with the sponsor to acquire a preferred interest in Hi-Crush Augusta LLC ("Augusta"), the entity that owned the sponsor’s Augusta raw frac sand processing facility, for $37,500 in cash and 3,750,000 newly issued convertible Class B units in the Partnership (See Augusta Contribution below). Subsequently on August 15, 2014, our sponsor, who was the sole owner of our Class B units, elected to convert all of the 3,750,000 Class B units into common units on a one-for-one basis. The 3,750,000 converted common units were sold to the public on August 15, 2014. On June 10, 2013, the Partnership acquired an independent frac sand supplier, D & I Silica, LLC (“D&I”), transforming the Partnership into an integrated Northern White frac sand producer, transporter, marketer and distributor. Founded in 2006, D&I was the largest independent frac sand supplier to the oil and gas industry drilling in the Marcellus and Utica shales. On April 8, 2014, the Partnership entered into a contribution agreement with the sponsor to acquire substantially all of the remaining equity interests in the sponsor’s Augusta facility for cash consideration of $224,250 (the “Augusta Contribution”). To finance the Augusta Contribution and refinance the Partnership’s revolving credit agreement, the Partnership sold 4,325,000 newly issued common units in the Partnership and entered into a $200,000 senior secured term loan facility with certain lenders. The Augusta Contribution closed on April 28, 2014, and at closing, the Partnership’s preferred equity interest in Augusta was converted into common equity interests of Augusta. Following the Augusta Contribution, the Partnership owned 98.0% of Augusta’s common equity interests. On August 9, 2016, the Partnership entered into a contribution agreement with the sponsor to acquire all of the outstanding membership interests in Hi-Crush Blair LLC ("Blair"), the entity that owned our sponsor's Blair facility, for $75,000 in cash, 7,053,292 of newly issued common units in the Partnership, and payment of up to $10,000 of contingent earnout consideration (the "Blair Contribution"). The Partnership completed the acquisition of the Blair facility on August 31, 2016. |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The Augusta Contribution and Blair Contribution were accounted for as transactions between entities under common control whereby Augusta and Blair's net assets were recorded at their historical cost. Therefore, the Partnership's historical financial information has been recast to combine Augusta and Blair with the Partnership as if the combination had been in effect since inception of the common control. Refer to Note 4 - Business Combinations for additional disclosure regarding the Augusta Contribution and Blair Contribution. These financial statements have been prepared assuming the Partnership will continue to operate as a going concern. On a quarterly basis, the Partnership assesses whether conditions have emerged which may cast substantial doubt about the Partnership's ability to continue as a going concern for the next twelve months following the issuance of these financial statements. Refer to Note 8 - Long-Term Debt for additional disclosure regarding our assessment of events and conditions and our ability to comply with covenants under our senior secured revolving credit agreement (the "Revolving Credit Agreement"). |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Use of Estimates The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. The more significant estimates relate to purchase accounting allocations and valuations, estimates and assumptions for our mineral reserves and its impact on calculating our depreciation and depletion expense under the units-of-production depreciation method, assessing potential impairment of long-lived assets, estimating potential loss contingencies, inventory valuation, valuation of unit-based compensation, estimated fair value of contingent consideration in the future and the estimated cost of future asset retirement obligations. Actual results could differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents consist of all cash balances and highly liquid investments with an original maturity of three months or less. Accounts Receivable Trade receivables relate to sales of raw frac sand and related services for which credit is extended based on the customer’s credit history and are recorded at the invoiced amount and do not bear interest. The Partnership regularly reviews the collectability of accounts receivable. When it is probable that all or part of an outstanding balance will not be collected, the Partnership establishes or adjusts an allowance as necessary using the specific identification method. Account balances are charged against the allowance after all means of collection have been exhausted and potential recovery is considered remote. As of December 31, 2016 and 2015 , the Partnership maintained an allowance for doubtful accounts of $1,549 and $663 , respectively. During the first quarter of 2016, the Partnership incurred bad debt expense of $8,236 which was primarily the result of a spot customer filing for bankruptcy. Deferred Charges Certain direct costs incurred in connection with debt financing have been capitalized and are being amortized using the straight-line method, which approximates the effective interest method, over the life of the debt. Amortization expense is included in interest expense and was $1,866 , $2,293 and $1,264 for the years ended December 31, 2016 , 2015 and 2014 , respectively. On April 28, 2016 and November 5, 2015, we amended our Revolving Credit Agreement. As a result of these modifications, we accelerated amortization of $349 and $662 , respectively, representing a portion of the remaining unamortized balance of debt issuance costs. Refer to Note 8 - Long-Term Debt for additional disclosure on our Revolver Credit Agreement. In the first quarter of 2016, we adopted and applied on a retrospective basis Accounting Standards Update No. 2015-03, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. As of December 31, 2016 and 2015 , the Partnership maintained unamortized debt issuance costs of $3,538 and $4,354 within long-term debt, respectively (See Note 8 - Long-Term Debt ) and $913 and $1,541 within other assets, respectively. Balances maintained in other assets represent costs associated with our revolving credit facility. The following is a summary of future amortization expense associated with deferred charges: For the years ending December 31, 2017 $ 1,208 2018 1,208 2019 947 2020 816 2021 272 Total $ 4,451 Inventories Sand inventory is stated at the lower of cost or market using the average cost method. Inventory manufactured at our plant facilities includes direct excavation costs, processing costs, overhead allocation, depreciation and depletion. Stockpile tonnages are calculated by measuring the number of tons added and removed from the stockpile. Tonnages are verified periodically by an independent surveyor. Costs are calculated on a per ton basis and are applied to the stockpile based on the number of tons in the stockpile. Inventory transported for sale at our terminal facilities or at the blender includes the cost of purchased or manufactured sand, plus transportation and handling related charges. Spare parts inventory includes critical spares, materials and supplies. We account for spare parts on a first-in, first-out basis, and value the inventory at the lower of cost or market. Detail reviews are performed related to the net realizable value of the spare parts inventory, giving consideration to quality, excessive levels, obsolescence and other factors. Property, Plant and Equipment Additions and improvements occurring through the normal course of business are capitalized at cost. When assets are retired or disposed of, the cost and the accumulated depreciation and depletion are eliminated from the accounts and any gain or loss is reflected in the Consolidated Statements of Operations. Expenditures for normal repairs and maintenance are expensed as incurred. Construction-in-progress is primarily comprised of machinery and equipment which has not been placed in service. Mine development costs include engineering, mineralogical studies, drilling and other related costs to develop the mine, the removal of overburden to initially expose the mineral and building access ways. Exploration costs are expensed as incurred and classified as exploration expense. Capitalization of mine development project costs begins once the deposit is classified as proven and probable reserves. Drilling and related costs are capitalized for deposits where proven and probable reserves exist and the activities are directed at obtaining additional information on the deposit or converting non-reserve minerals to proven and probable reserves and the benefit is to be realized over a period greater than one year. Mining property and development costs are amortized using the units-of-production method on estimated measured tons in in-place reserves. The impact of revisions to reserve estimates is recognized on a prospective basis. Capitalized costs incurred during the year for major improvement and capital projects that are not placed in service are recorded as construction-in-progress. Construction-in-progress is not depreciated until the related assets or improvements are ready to be placed in service. We capitalize interest cost as part of the historical cost of constructing an asset and preparing it for its intended use. These interest costs are included in the property, plant and equipment line in the balance sheet. Fixed assets other than plant facilities and buildings associated with productive, depletable properties are carried at historical cost and are depreciated using the straight-line method over the estimated useful lives of the assets, as follows: Computer equipment 3 years Furniture and fixtures 7 years Vehicles 5 years Equipment 5-15 years Rail spurs and asset retirement obligations 17-33 years Rail and rail equipment 15-20 years Transload facilities and equipment 15-25 years Plant facilities and buildings associated with productive, depletable properties that contain frac sand reserves are carried at historical cost and are depreciated using the units-of-production method. Units-of-production rates are based on the amount of proved developed frac sand reserves that are estimated to be recoverable from existing facilities using current operating methods. Impairment of Long-lived Assets Recoverability of investments in property, plant and equipment, and mineral rights is evaluated annually. Estimated future undiscounted net cash flows are calculated using estimates of proven and probable sand reserves, estimated future sales prices (considering historical and current prices, price trends and related factors) and operating costs and anticipated capital expenditures. Reductions in the carrying value of our investment are only recorded if the undiscounted cash flows are less than our book basis in the applicable assets. Impairment losses are recognized based on the extent that the remaining investment exceeds the fair value, which is determined based upon the estimated future discounted net cash flows to be generated by the property, plant and equipment and mineral rights. Management’s estimates of prices, recoverable proven and probable reserves and operating and capital costs are subject to certain risks and uncertainties which may affect the recoverability of our investments in property, plant and equipment. Although management has made its best estimate of these factors based on current conditions, it is reasonably possible that changes could occur in the near term, which could adversely affect management’s estimate of the net cash flows expected to be generated from its operating property. During the year ended December 31, 2015, we elected to idle five destination transload facilities and three rail origin transload facilities. In addition, to consolidate our administrative functions, we closed down a regional office facility. As a result of these actions, we recognized an impairment of $6,186 related to the write-down of transload and office facilities assets to their net realizable value. No impairment charges were recorded during the years ended December 31, 2016 and 2014 . Refer to Note 14 - Impairments and Other Expenses for additional disclosure regarding impairments. Goodwill and Intangible Assets Goodwill represents the excess of purchase price over the fair value of net assets acquired. The Partnership performs an assessment of the recoverability of goodwill during the third quarter of each fiscal year, or more often if events or circumstances indicate the impairment of an asset may exist. Our assessment of goodwill is based on qualitative factors to determine whether the fair value of the reporting unit is more likely than not less than the carrying value. An additional quantitative impairment analysis is completed if the qualitative analysis indicates that the fair value is not substantially in excess of the carrying value. The quantitative analysis determines the fair value of the reporting unit based on the discounted cash flow method and relative market-based approaches. During the year ended December 31, 2016 , we recognized a $33,745 impairment loss of all goodwill. Refer to Note 14 - Impairments and Other Expenses for additional disclosure regarding our goodwill impairment assessment. The Partnership amortizes the cost of other intangible assets on a straight line basis over their estimated useful lives, ranging from 1 to 20 years. An impairment assessment is performed if events or circumstances occur and may result in the change of the useful lives of the intangible assets. During the year ended December 31, 2015 , we completed an impairment assessment of the intangible asset associated with a third party supply agreement (the "Sand Supply Agreement"). Given market conditions, coupled with our ability to source sand from our sponsor on more favorable terms, we determined that the fair value of the agreement was less than its carrying value, resulting in an impairment of $18,606 . The Partnership did not recognize any impairments for intangible assets during the year ended December 31, 2016 . Refer to Note 14 - Impairments and Other Expenses for additional disclosure regarding impairments. Equity Method Investments The Partnership accounts for investments, which it does not control but has the ability to exercise significant influence, using the equity method of accounting. Under this method, the investment is carried originally at cost, increased by any allocated share of the Partnership's net income and contributions made, and decreased by any allocated share of the Partnership's net losses and distributions received. The Partnership's allocated share of income and losses are based on the rights and priorities outlined in the equity investment agreement. On September 8, 2016, the Partnership entered into an agreement to form Proppant Express Investments, LLC ("PropX"), which was established to develop critical last-mile logistics equipment for the proppant industry. PropX is responsible for manufacturing containers and conveyor systems that allow for transportation of frac sand from in-basin terminals to the well site. Through December 31, 2016 , the Partnership has invested $10,232 into PropX, which is accounted for as an equity method investment as the Partnership has a non-controlling interest in PropX, but has the ability to exercise significant influence. Asset Retirement Obligations In accordance with Accounting Standards Codification (“ASC”) 410-20, Asset Retirement Obligations , we recognize reclamation obligations when incurred and record them as liabilities at fair value. In addition, a corresponding increase in the carrying amount of the related asset is recorded and depreciated over such asset’s useful life. The reclamation liability is accreted to expense over the estimated productive life of the related asset and is subject to adjustments to reflect changes in value resulting from the passage of time and revisions to the estimates of either the timing or amount of the reclamation costs. Revenue Recognition Frac sand sales revenues are recognized when legal title passes to the customer, which may occur at the production facility, rail origin, terminal or well site. At that point, delivery has occurred, evidence of a contractual arrangement exists and collectability is reasonably assured. Revenue from make-whole provisions in our customer contracts is recognized at the end of the defined cure period when collectability is certain. A substantial portion of our frac sand is sold to customers with whom we have long-term supply agreements, the current terms of which expire between 2017 and 2021 . The agreements define, among other commitments, the volume of product that the Partnership must provide, the price that will be charged to the customer, and the volume that the customer must purchase by the end of the defined cure periods, which can range from three months to the end of a contract year. Transportation services revenues are recognized as the services have been completed, meaning the related services have been rendered. At that point, delivery of service has occurred, evidence of a contractual arrangement exists and collectability is reasonably assured. Fair Value of Financial Instruments The amounts reported in the balance sheet as current assets or liabilities, including cash, accounts receivable, accounts payable, accrued and other current liabilities approximate fair value due to the short-term maturities of these instruments. The fair value of the senior secured term loan approximated $191,531 as of December 31, 2016 , based on the market price quoted from external sources, compared with a carrying value of $194,500 . If the senior secured term loan was measured at fair value in the financial statements, it would be classified as Level 2 in the fair value hierarchy. Net Income per Limited Partner Unit We have identified the sponsor’s incentive distribution rights as participating securities and compute income per unit using the two-class method under which any excess of distributions declared over net income shall be allocated to the partners based on their respective sharing of income specified in the partnership agreement. Net income per unit applicable to limited partners is computed by dividing limited partners’ interest in net income, after deducting any sponsor incentive distributions, by the weighted-average number of outstanding limited partner units. Through March 31, 2014, basic and diluted net income per unit were the same as there were no potentially dilutive common or subordinated units outstanding. Through August 15, 2014, the 3,750,000 Class B units outstanding did not have voting rights or rights to share in the Partnership’s periodic earnings, either through participation in its distributions or through an allocation of its undistributed earnings or losses, and so were not deemed to be participating securities in their form as Class B units. In addition, the conversion of the Class B units into common units was fully contingent upon the satisfaction of defined criteria pertaining to the cumulative payment of distributions and earnings per unit of the Partnership as described in Note 11 . As such, until all of the defined payment and earnings criteria were satisfied, the Class B units were not included in our calculation of either basic or diluted earnings per unit. As such, for the quarter ended June 30, 2014, the Class B units were included in our calculation of diluted earnings per unit. On August 15, 2014, the Class B units converted into common units, at which time income allocations commenced on such units and the common units were included in our calculation of basic and diluted earnings per unit. As described in Note 2 , the Partnership's historical financial information has been recast to consolidate Augusta and Blair for all periods presented. The amounts of incremental income or losses recast to periods prior to the Augusta Contribution and Blair Contribution are excluded from the calculation of net income per limited partner unit. Income Taxes The Partnership is a pass-through entity and is not considered a taxing entity for federal tax purposes. Therefore, there is not a provision for income taxes in the accompanying Consolidated Financial Statements. The Partnership’s net income or loss is allocated to its partners in accordance with the partnership agreement. The partners are taxed individually on their share of the Partnership’s earnings. At December 31, 2016 and 2015 , the Partnership did not have any liabilities for uncertain tax positions or gross unrecognized tax benefit. Recent Accounting Pronouncements In November 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2016-18, which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendment will be effective for the Partnership beginning January 1, 2018, with early adoption permitted, and should be applied retrospectively. The Partnership is currently assessing the impact that adopting this new accounting guidance will have on its Consolidated Financial Statements. In August 2016, the FASB issued Accounting Standards Update No. 2016-15, which provides guidance that is intended to reduce diversity in practice in how certain cash receipts and cash payments are classified in the statement of cash flows. The amendment will be effective for the Partnership beginning January 1, 2018, with early adoption permitted. The Partnership is currently assessing the impact that adopting this new accounting guidance will have on its Consolidated Financial Statements and footnote disclosures. In March 2016, the FASB issued Accounting Standards Update No. 2016-09, which identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. The new accounting guidance is effective for the Partnership beginning in the first quarter of 2017. The Partnership is currently assessing the impact that adopting this new accounting guidance will have on its Consolidated Financial Statements and footnote disclosures, but does not anticipate that adoption will have a material impact on its financial position, results of operations or cash flows. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, which will impact all leases with durations greater than twelve months. In general, such arrangements will be recognized as assets and liabilities on the balance sheet of the lessee. Under the new accounting guidance a right-of-use asset and lease obligation will be recorded for all leases, whether operating or financing, while the statement of operations will reflect lease expense for operating leases and amortization/interest expense for financing leases. The balance sheet amount recorded for existing leases at the date of adoption will be calculated using the applicable incremental borrowing rate at the date of adoption. The new accounting guidance is effective for the Partnership beginning in the first quarter of 2019, and should be applied retrospectively. The Partnership is currently assessing the impact that adopting this new accounting guidance will have on its Consolidated Financial Statements and footnote disclosures. In May 2014, the FASB issued Accounting Standards Update No. 2014-09 ("ASU 2014-09"), an update that supersedes the most current revenue recognition guidance, as well as some cost recognition guidance. The update requires that an entity recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This update also requires new qualitative and quantitative disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments, information about contract balances and performance obligations, and assets recognized from costs incurred to obtain or fulfill a contract. The authoritative guidance, which may be applied on a full retrospective or modified retrospective basis whereby the entity records a cumulative effect of initially applying this update at the date of initial application, will be effective for the Partnership beginning January 1, 2018. Early adoption is not permitted. The FASB has also issued the following standards which clarify ASU 2014-09 and have the same effective date as the original standard: ASU 2016-12, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients and ASU 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing . The Partnership is still assessing the adoption method it will elect upon implementation and related disclosure requirements. Although we are still in the process of assessing the impact of the adoption of ASU 2014-09, the Partnership does not currently anticipate a material impact on its revenue recognition practices. |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations Acquisition of Hi-Crush Blair LLC On August 9, 2016, the Partnership entered into a contribution agreement with our sponsor to acquire all of the outstanding membership interests in Blair, the entity that owned our sponsor’s Blair facility, for $75,000 in cash, 7,053,292 of newly issued common units in the Partnership, and payment of up to $10,000 of contingent earnout consideration (the "Blair Contribution"). The Partnership completed the acquisition of the Blair facility on August 31, 2016. In connection with this acquisition, the Partnership incurred $850 of acquisition related costs during the year ended December 31, 2016, included in general and administrative expenses. The contingent earnout consideration is based on the Partnership's adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") exceeding certain thresholds for each of the fiscal years ending December 31, 2017 and 2018. If the Partnership exceeds either or both of the respective thresholds, then it will pay an additional $5,000 for each threshold met or exceeded, for an undiscounted total of up to $10,000 . As of December 31, 2016 , the estimated fair value of the contingent consideration liability based on available information was $5,000 , as reflected in other liabilities on our Condensed Consolidated Balance Sheet. As a result of this transaction, the Partnership's historical financial information has been recast to combine the Consolidated Statements of Operations and the Consolidated Balance Sheets of the Partnership with those of Blair as if the combination had been in effect since inception of common control on July 31, 2014. Any material transactions between the Partnership and Blair have been eliminated. The balance of non-controlling interest as of December 31, 2016 includes the sponsor's interest in Blair prior to the combination. Except for the combination of the Consolidated Statements of Operations and the respective allocation of recast net income (loss), capital transactions between the sponsor and Blair prior to August 31, 2016 have not been allocated on a recast basis to the Partnership’s unitholders. Such transactions are presented within the non-controlling interest column in the Consolidated Statement of Partners' Capital as the Partnership and its unitholders would not have participated in these transactions. The following table summarizes the carrying value of Blair's assets as of August 31, 2016, and the allocation of the cash consideration payable: Net assets of Hi-Crush Blair LLC as of August 31, 2016: Cash $ 75 Inventories 6,310 Prepaid expenses and other current assets 360 Due from Hi-Crush Partners LP 406 Property, plant and equipment 125,565 Other assets 700 Accounts payable (5,653 ) Accrued liabilities and other current liabilities (2,269 ) Due to sponsor (311 ) Due to Hi-Crush Partners LP (1,240 ) Asset retirement obligation (380 ) Total carrying value of Blair's net assets $ 123,563 Allocation of purchase price Carrying value of sponsor's non-controlling interest prior to Blair Contribution $ 125,571 Excess purchase price over the acquired interest (a) (45,571 ) Cost of Blair acquisition $ 80,000 (a) The deemed contribution attributable to the purchase price was allocated to the common unitholders and excludes the $5,000 estimated fair value of contingent consideration payable in the future. Acquisition of Hi-Crush Augusta LLC On January 31, 2013, the Partnership entered into an agreement with our sponsor to acquire 100,000 preferred units in Augusta, the entity that owned our sponsor’s Augusta facility, for $37,500 in cash and 3,750,000 newly issued convertible Class B units in the Partnership. On April 28, 2014, the Partnership acquired 390,000 common units in Augusta for cash consideration of $224,250 . In connection with this acquisition, the Partnership’s preferred equity interest in Augusta was converted into 100,000 common units of Augusta. Following this transaction, the Partnership maintains a 98.0% controlling interest in Augusta’s common units, with the sponsor owning the remaining 2.0% of common units. In connection with this acquisition, the Partnership incurred $768 of acquisition related costs during the year ended December 31, 2014, included in general and administrative expenses. The Augusta Contribution was accounted for as a transaction between entities under common control whereby Augusta's net assets were recorded at their historical cost. The difference between the consideration paid and the recast historical cost of the net assets acquired was allocated in accordance with the partnership agreement to the common and subordinated unitholders based on their respective number of units outstanding as of April 28, 2014. However, this deemed distribution did not affect the tax basis capital accounts of the common and subordinated unitholders. The Partnership's historical financial information was recast to combine the Consolidated Statements of Operations and the Consolidated Balance Sheets of the Partnership with those of Augusta as if the combination had been in effect since inception of common control. Any material transactions between the Partnership and Augusta have been eliminated. The balance of non-controlling interest as of December 31, 2013 includes the sponsor's interest in Augusta prior to the combination. Except for the combination of the Consolidated Statements of Operations and the respective allocation of recast net income between the controlling and non-controlling interest, capital transactions between the sponsor and Augusta prior to April 28, 2014 have not been allocated on a recast basis to the common and subordinated unitholders. Such transactions are presented within the non-controlling interest column in the Consolidated Statement of Partners' Capital as the Partnership and its unitholders would not have participated in these transactions. The following table summarizes the carrying value of Augusta's assets as of April 28, 2014, and the allocation of the cash consideration paid: Net assets of Hi-Crush Augusta LLC as of April 28, 2014: Cash $ 1,035 Accounts receivable 9,816 Inventories 4,012 Prepaid expenses and other current assets 114 Due from Hi-Crush Partners LP 1,756 Property, plant and equipment 84,900 Accounts payable (3,379 ) Accrued liabilities and other current liabilities (2,926 ) Due to sponsor (4,721 ) Asset retirement obligation (2,993 ) Total carrying value of Augusta's net assets $ 87,614 Allocation of purchase price Carrying value of sponsor's non-controlling interest prior to Augusta Contribution $ 35,951 Less: Carrying value of 2% of non-controlling interest retained by sponsor (1,752 ) Purchase price allocated to non-controlling interest acquired 34,199 Excess purchase price over the historical cost of the acquired non-controlling interest (a) 190,051 Cost of Augusta acquisition $ 224,250 (a) The deemed distribution attributable to the excess purchase price was allocated to the common and subordinated unitholders based on the respective number of units outstanding as of April 28, 2014. Recast Financial Results The following tables present our recast revenues, net income (loss) and net income (loss) attributable to Hi-Crush Partners LP per limited partner unit giving effect to the Augusta Contribution and Blair Contribution, as reconciled to the revenues, net income (loss) and net income (loss) attributable to Hi-Crush Partners LP per limited partner unit. Year Ended December 31, 2016 Partnership Historical Blair through August 31, 2016 Eliminations Partnership Recast Revenues $ 204,430 $ 13,761 $ (13,761 ) $ 204,430 Net income (loss) $ (81,412 ) $ 716 $ (437 ) $ (81,133 ) Net loss attributable to Hi-Crush Partners LP per limited partner unit - basic $ (1.64 ) $ (1.63 ) Year Ended December 31, 2015 Partnership Blair Eliminations Partnership Revenues $ 339,640 $ — $ — $ 339,640 Net income (loss) $ 28,410 $ (2,619 ) $ — $ 25,791 Net income attributable to Hi-Crush Partners LP per limited partner unit - basic $ 0.73 $ 0.66 Year Ended December 31, 2014 Partnership Augusta Blair Eliminations Partnership Revenues $ 365,347 $ 25,356 $ — $ (4,156 ) $ 386,547 Net income (loss) $ 120,484 $ 11,398 $ (105 ) $ (7,857 ) $ 123,920 Net income attributable to Hi-Crush Partners LP per limited partner unit - basic $ 3.09 $ 3.14 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following: December 31, 2016 2015 Raw material $ — $ — Work-in-process 13,018 11,827 Finished goods 9,304 13,960 Spare parts 2,016 2,184 Inventories $ 24,338 $ 27,971 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment consisted of the following: December 31, 2016 2015 Buildings $ 9,696 $ 5,519 Mining property and mine development 93,694 79,244 Plant and equipment 237,870 151,582 Rail and rail equipment 44,935 29,300 Transload facilities and equipment 78,105 62,557 Construction-in-progress 1,695 102,464 Property, plant and equipment 465,995 430,666 Less: Accumulated depreciation and depletion (49,045 ) (37,154 ) Property, plant and equipment, net $ 416,950 $ 393,512 Depreciation and depletion expense was $15,444 , $12,270 and $8,858 for the years ended December 31, 2016 , 2015 and 2014 , respectively. The Partnership recognized a (gain) loss on the disposal of fixed assets of $(357) , $72 and $(15) during the years ended December 31, 2016 , 2015 and 2014 , respectively, which are included in general and administrative expenses on our Consolidated Statements of Operations. During the year ended December 31, 2016 , the Partnership completed construction and commenced operations of our Blair facility, sold two of its idled transload facilities and the leases for two of the idled transload facilities terminated. The Augusta facility was temporarily idled from October 2015 through August 2016. No impairment was recorded related to the Augusta facility. During the year ended December 31, 2015 , the Partnership recognized an impairment of $6,186 related to the write-down of transload and office facilities assets to their net realizable value and recognized expense of $256 related to the abandonment of certain transload construction projects. These expenses are included in impairments and other expenses in our Consolidated Statements of Operations. Refer to Note 14 - Impairments and Other Expenses for additional disclosure regarding impairments. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Changes in goodwill and intangible assets consisted of the following: Goodwill Intangible Assets Balance at December 31, 2014 $ 33,745 $ 33,005 Loss on impairment (Note 14) — (18,606 ) Amortization expense — (2,620 ) Balance at December 31, 2015 33,745 11,779 Loss on impairment (Note 14) (33,745 ) — Amortization expense — (1,682 ) Balance at December 31, 2016 $ — $ 10,097 Goodwill During the year ended December 31, 2016 , the Partnership recognized a $33,745 impairment loss of all goodwill that was allocated from the purchase price of its acquisition of D&I in 2013. Refer to Note 14 - Impairments and Other Expenses for additional disclosure regarding our goodwill impairment assessment. Intangible Assets Intangible assets arising from the acquisition of D&I consisted of the following: December 31, Useful life 2016 2015 Supplier agreements 1-20 Years $ 21,997 $ 21,997 Customer contracts and relationships 1-10 Years 18,132 18,132 Other intangible assets 1-3 Years 1,749 1,749 Intangible assets 41,878 41,878 Less: Accumulated amortization and impairments (31,781 ) (30,099 ) Intangible assets, net $ 10,097 $ 11,779 Amortization expense was $1,682 and $2,620 for the years ended December 31, 2016 and 2015 , respectively. As of December 31, 2016 , the unamortized balance of intangible assets is associated with our customer relationships. The weighted average remaining life of intangible assets was 6 years as of December 31, 2016 . During the year ended December 31, 2015 , we completed an impairment assessment of the intangible asset associated with the Sand Supply Agreement. Given current market conditions, coupled with our ability to source sand from our sponsor on more favorable terms, we determined that the fair value of the agreement was less than its carrying value, resulting in an impairment of $18,606 . The Partnership did not recognize any impairments for intangible assets during the year ended December 31, 2016 . Refer to Note 14 - Impairments and Other Expenses for additional disclosure regarding impairments. As of December 31, 2016 , future amortization is as follows: Fiscal Year Amortization 2017 $ 1,682 2018 1,682 2019 1,682 2020 1,682 2021 1,682 Thereafter 1,687 $ 10,097 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consisted of the following: December 31, 2016 2015 Revolving Credit Agreement $ — $ 52,500 Term Loan Credit Facility 194,500 196,500 Less: Unamortized original issue discount (1,247 ) (1,529 ) Less: Unamortized debt issuance costs (3,538 ) (4,354 ) Other notes payable 6,705 6,924 Total debt 196,420 250,041 Less: current portion of long-term debt (2,962 ) (3,258 ) Long-term debt $ 193,458 $ 246,783 Revolving Credit Facility On April 28, 2014, the Partnership entered into an amended and restated credit agreement (the "Revolving Credit Agreement"), which matures on April 28, 2019 . On November 5, 2015, the Partnership entered into a second amendment (the "Second Amendment") and on April 28, 2016, into a third amendment (the "Third Amendment"). On August 31, 2016, the Partnership entered into a fourth amendment to the Revolving Credit Agreement, which allowed for the Blair Contribution. As of December 31, 2016, the Revolving Credit Agreement, as amended, is a senior secured revolving credit facility that permits aggregate borrowings of up to $75,000 , including a $25,000 sublimit for letters of credit and a $10,000 sublimit for swing line loans. The outstanding balance of $52,500 under the Revolving Credit Agreement was paid in full as of June 30, 2016. As of December 31, 2016 , we had $66,368 of undrawn borrowing capacity ( $75,000 , net of $8,632 letter of credit commitments) and no indebtedness under our Revolving Credit Agreement. Borrowings under the Revolving Credit Agreement, as amended, bear interest at a rate equal to a Eurodollar rate plus an applicable margin of 4.50% per annum through June 30, 2017. Subsequent to June 30, 2017, borrowings under the Revolving Credit Agreement bear interest at a rate equal to, at the Partnership's option, either (1) a base rate plus an applicable margin ranging between 1.25% per annum and 2.50% per annum, based upon the Partnership's leverage ratio, or (2) a Eurodollar rate plus an applicable margin ranging between 2.25% per annum and 3.50% per annum, based upon the Partnership's leverage ratio. The Revolving Credit Agreement contains customary representations and warranties and customary affirmative and negative covenants, including limits or restrictions on the Partnership’s ability to incur liens, incur indebtedness, make certain restricted payments, merge or consolidate, and dispose of assets. Due to declining market conditions, on November 5, 2015, the Partnership entered into the Second Amendment, which waives the compliance of customary financial covenants through June 29, 2017 (the "Effective Period"), after which the maximum leverage ratio is 5.0 x for for the fiscal quarter ending June 30, 2017 annualized, 4.5 x for the six months ending September 30, 2017 annualized, 4.0 x for the nine months ending December 31, 2017 annualized, and 3.5 x for the twelve months ending March 31, 2018 and thereafter. After the Effective Period, the minimum interest coverage ratio, as defined, is 2.5 x for each fiscal quarter ending on or after June 30, 2017. In addition, the Second Amendment established certain minimum quarterly EBITDA covenants, allows distributions to unitholders up to 50% of quarterly distributable cash flow after quarterly debt payments on the term loan during the Effective Period, and required that capital expenditures during 2016 not exceed $28,000 . As a result, of further declines in volumes and pricing and their impact on earnings and cash flow, on April 28, 2016, the Partnership entered into the Third Amendment, which waives the minimum quarterly EBITDA covenants and establishes a maximum EBITDA loss for the six months ending March 31, 2017. As of December 31, 2016 , we were in compliance with the amended covenants contained in the Revolving Credit Agreement. However, the decline in volumes and pricing referred to above contributed to a net loss and negative cash flow from operations for the year ended December 31, 2016. Our ability to comply with such covenants in the future, and access our undrawn borrowing capacity under our Revolving Credit Agreement, is dependent primarily on achieving certain levels of EBITDA, as defined. We believe we will remain in compliance in 2017 with such covenants based on our forecasts for volumes, prices and EBITDA, which are above those experienced in the second half of 2016 and are consistent with the increasing sales volumes and prices we have experienced since the second half of 2016 through the first several weeks of 2017. The forecasted levels of EBITDA are therefore based on our expectation of future volumes and price increases which are subject to risk and uncertainty regarding market conditions for proppant. There can be no assurance that the Partnership will achieve the volumes and pricing included in the forecasts and therefore achieve the planned levels of EBITDA in future periods. If the levels of EBITDA are not sufficient to meet the minimum amounts required for covenant compliance, an event of default could occur. The Third Amendment also provides for an "equity cure" that can be applied to EBITDA covenant ratios for 2017 and all future periods. On January 4, 2017, the Partnership entered into an equity distribution program with certain financial institutions (each, a "Manager") under which we may sell, from time to time, through or to the Managers, common units representing limited partner interests in the Partnership up to an aggregate gross sales price of $50,000 (See Note 11 - Equity ). The Revolving Credit Agreement contains customary events of default (some of which are subject to applicable grace or cure periods), including among other things, non-payment defaults, covenant defaults, cross-defaults to other material indebtedness, bankruptcy and insolvency defaults, and material judgment defaults. Such events of default could entitle the lenders to cause any or all of the Partnership’s indebtedness under the Revolving Credit Agreement to become immediately due and payable. If such a default were to occur, and resulted in a cross default of the Term Loan Credit Agreement, as described below, all of our outstanding debt obligations could be accelerated which would have a material adverse impact on the Partnership. The Revolving Credit Agreement is secured by substantially all assets of the Partnership. In addition, the Partnership's subsidiaries have guaranteed the Partnership's obligations under the Revolving Credit Agreement and have granted to the revolving lenders security interests in substantially all of their respective assets. Term Loan Credit Facility On April 28, 2014, the Partnership entered into a credit agreement (the "Term Loan Credit Agreement") providing for a senior secured term loan credit facility (the “Term Loan Credit Facility”) that permits aggregate borrowings of up to $200,000 , which was fully drawn on April 28, 2014. The Term Loan Credit Agreement permits the Partnership, at its option, to add one or more incremental term loan facilities in an aggregate amount not to exceed $100,000 . Any incremental term loan facility would be on terms to be agreed among the Partnership, the administrative agent and the lenders who agree to participate in the incremental facility. The maturity date of the Term Loan Credit Facility is April 28, 2021 . The Term Loan Credit Agreement is secured by substantially all assets of the Partnership. In addition, the Partnership’s subsidiaries have guaranteed the Partnership’s obligations under the Term Loan Credit Agreement and have granted to the lenders security interests in substantially all of their respective assets. Borrowings under the Term Loan Credit Agreement bear interest at a rate equal to, at the Partnership’s option, either (1) a base rate plus an applicable margin of 2.75% per annum or (2) a Eurodollar rate plus an applicable margin of 3.75% per annum, subject to a LIBOR floor of 1.00% . The Term Loan Credit Agreement contains customary representations and warranties and customary affirmative and negative covenants, including limits or restrictions on the Partnership’s ability to incur liens, incur indebtedness, make certain restricted payments, merge or consolidate and dispose of assets. In addition, it contains customary events of default that entitle the lenders to cause any or all of the Partnership’s indebtedness under the Term Loan Credit Agreement to become immediately due and payable. The events of default (some of which are subject to applicable grace or cure periods), include, among other things, non-payment defaults, covenant defaults, cross-defaults to other material indebtedness, bankruptcy and insolvency defaults and material judgment defaults. As of December 31, 2016 , we were in compliance with the terms of the agreement. As of December 31, 2016 , we had $189,715 indebtedness ( $194,500 , net of $1,247 of discounts and $3,538 of debt issuance costs) under our Term Loan Credit Facility, which carried an interest rate of 4.75% . Other Notes Payable On October 24, 2014, the Partnership entered into a purchase and sales agreement to acquire land and underlying frac sand deposits. During the years ended December 31, 2016, 2015 and 2014, the Partnership paid cash consideration of $2,500 , and issued a three -year promissory note in the amount of $3,676 , respectively, in connection with this agreement. The promissory notes accrue interest at rates equal to the applicable short-term federal rates. All principal and accrued interest is due and payable at the end of the respective three-year promissory note terms in December 2019, December 2018 and October 2017. However, the promissory notes are prepaid on a quarterly basis during the three-year terms if sand is extracted, delivered, sold and paid for from the properties. During the years ended December 31, 2016 and 2015 , the Partnership made prepayments of $3,896 and $428 , respectively, based on the accumulated volume of sand extracted, delivered, sold and paid for. In January 2017, the Partnership made a prepayment of $962 based on the volume of sand extracted, delivered, sold and paid for through the fourth quarter of 2016 . As of December 31, 2016 , the Partnership had repaid in full the promissory note due in October 2017 and we had $6,705 outstanding on our remaining promissory notes, which carried interest rates ranging from 0.56% to 0.74% . Maturities As of December 31, 2016 , future minimum debt repayments are as follows: Fiscal Year Amount 2017 $ 2,962 2018 4,067 2019 5,676 2020 2,000 2021 186,500 $ 201,205 |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2016 | |
Asset Retirement Obligation [Abstract] | |
Asset Retirement Obligations | Asset Retirement Obligations Although the ultimate amount of reclamation and closure costs to be incurred is uncertain, the Partnership maintained a post-closure reclamation and site restoration obligation as follows: Balance at December 31, 2013 $ 4,627 Additions to liabilities 1,857 Accretion expense 246 Balance at December 31, 2014 6,730 Accretion expense 336 Balance at December 31, 2015 7,066 Additions to liabilities 373 Accretion expense 369 Balance at December 31, 2016 $ 7,808 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Customer Contracts The Partnership enters into sales contracts with customers. These contracts establish minimum annual sand volumes that the Partnership is required to make available to such customers under initial terms ranging from three to six years. Through December 31, 2016 , no payments for non-delivery of minimum annual sand volumes have been made by the Partnership to customers under these contracts. Supplier Contracts D&I has entered into a long-term supply agreement with a supplier (the "Sand Supply Agreement"), which includes a requirement to purchase certain volumes and grades of sands at specified prices. The quantities set forth in such agreement are not in excess of our current requirements. Equity Method Investments On September 8, 2016, the Partnership committed to investing up to $17,400 in PropX over the next year to 18 months for use in the manufacturing of containers and conveyor systems, among other things. Through December 31, 2016 , the Partnership funded $10,232 of its commitment, as reflected in equity method investments on the Consolidated Balance Sheet. Royalty Agreements The Partnership has entered into royalty agreements under which it is committed to pay royalties on sand sold from its production facilities for which the Partnership has received payment by the customer. Royalty expense is recorded as the sand is sold and is included in costs of goods sold. Royalty expense was $5,735 , $10,311 and $14,583 for the years ended December 31, 2016 , 2015 and 2014 , respectively. Certain acreage is subject to a minimum annual royalty payment. If not paid within 30 days after the annual period, the original landowner has the right to purchase the property for one dollar, subject to certain terms. If we have not made the minimum required royalty payments, we may satisfy our obligation by making a lump-sum cash make-whole payment. Accordingly, we believe there is no material risk that we will be required to sell back the subject property pursuant to this agreement. During the year ended December 31, 2016 , the Partnership entered into an agreement to terminate certain existing royalty obligations for $6,750 , of which $3,375 was paid in September 2016, with another payment scheduled for August 2017. As a result of this agreement, the Partnership reduced its ongoing future royalty payments to the applicable counterparties for each ton of frac sand that is excavated, processed and sold to the Partnership’s customers. As of part of this transaction, we recorded an asset of $6,750 , as reflected in property, plant and equipment on the Consolidated Balance Sheet. Property Value Guarantees On February 7, 2012, we entered into a mining agreement with the town of Bridge Creek, Wisconsin (“Bridge Creek”). The agreement imposes certain restrictions and conditions upon the operation of our Augusta facility inclusive of a property value guaranty (“PVG”). Our obligation is limited to the 24 properties identified on the effective date of the agreement. On January 15, 2015, we entered into a land use agreement with the town of Springfield, Wisconsin (“Springfield”). The agreement imposes certain restrictions and conditions upon the operation of our Blair facility inclusive of a PVG. Our obligation is limited to the 31 properties identified on the effective date of the agreement. On February 16, 2015, we entered into a land use agreement with the town of Preston, Wisconsin (“Preston”). The agreement imposes certain restrictions and conditions upon the operation of our Blair facility inclusive of a PVG. Our obligation is limited to the 11 properties identified on the effective date of the agreement. The respective PVGs establish a process whereby we guaranty fair market value to the owners of residential property specifically identified within the body of the PVG document. According to the terms of the PVGs, the property owner must notify us in the event they wish to sell the subject residence and up to 10 acres of land in the case of Bridge Creek and 20 acres of land in the agreements with Springfield and Preston. Upon such notice, the PVGs establishes a process by which an appraisal is conducted and the subject property is appraised to establish fair market value and is listed with a real estate broker. In the event the property is sold within 180 days of listing, we agree to pay the owner any shortfall between the sales price and the established fair market value. In the event the property is not sold within the 180 day time frame, we are obligated to purchase the property for fair market value. As of December 31, 2016, we have not accrued a liability related the PVGs noted above as these contingent liabilities are not estimable as it cannot be determined how many of the owners will elect to avail themselves of the provisions of the PVGs and it cannot be determined if shortfalls will exist in the event of a sale nor can the value of the subject property be ascertained until appraised. Through December 31, 2016 , the Partnership has paid $380 under these guarantees. Lease Obligations The Partnership has long-term leases for railcars, equipment and certain of its terminals. Railcar rental expense was $28,597 , $22,027 and $10,438 for the years ended December 31, 2016 , 2015 and 2014 , respectively. The Partnership entered into long-term operating leases with PropX for use of equipment manufactured and owned by PropX. During the year ended December 31, 2016 , the Partnership incurred $124 of lease expense from PropX. We have entered into service agreements with certain transload service providers which requires us to purchase minimum amounts of services over specific periods of time at specific locations. Our failure to purchase the minimum level of services would require us to pay shortfall fees. However, the minimum quantities set forth in the agreement are not in excess of our current forecasted requirements at these locations. As of December 31, 2016 , future minimum operating lease payments and minimum purchase commitments are as follows: Fiscal Year Operating Minimum Purchase 2017 $ 27,706 $ 1,576 2018 27,586 1,576 2019 30,133 1,866 2020 27,520 2,296 2021 22,682 2,296 Thereafter 36,996 4,168 $ 172,623 $ 13,778 In addition, the Partnership has placed orders for additional leased railcars. Such long-term operating leases commence upon the future delivery of the railcars. During 2016, we completed negotiations with a railcar lessor to defer the delivery of approximately 700 additional leased railcars until the second half of 2018 and reduced our annual minimum operating lease obligations by approximately $1,300 . From time to time the Partnership may be subject to various claims and legal proceedings which arise in the normal course of business. Management is not aware of any legal matters that are likely to have a material adverse effect on the Partnership’s financial position, results of operations or cash flows. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Equity | Equity As of December 31, 2016 , our sponsor owned 20,693,643 common units, representing a 32.5% ownership interest in the limited partner units. In addition, our sponsor is the owner of our General Partner. During the year ended December 31, 2016 , the Partnership completed three public offerings for a total of 19,550,000 common units, representing limited partnership interests in the Partnership for aggregate net proceeds of approximately $189,037 . The net proceeds from these offerings were used to pay off the outstanding balance under the Partnership's Revolving Credit Agreement, to fund the Blair Contribution and for general partnership purposes. During the year ended December 31, 2014, the Partnership completed a public offering for 4,325,000 common units, representing limited partnership interests in the Partnership for aggregate net proceeds of approximately $170,693 . The net proceeds from this offering was used to fund the Augusta Contribution, refinance the Partnership’s revolving credit agreement and for general partnership purposes. Equity Distribution Agreement On January 4, 2017, the Partnership entered into an equity distribution program with certain financial institutions (each, a "Manager") under which we may sell, from time to time, through or to the Managers, common units representing limited partner interests in the Partnership up to an aggregate gross sales price of $50,000 . The Partnership did not issue any common units under this equity distribution program through the date of this filing. Class B Units On January 31, 2013, the Partnership issued 3,750,000 subordinated Class B units and paid $37,500 in cash to our sponsor in return for 100,000 preferred equity units in our sponsor’s Augusta facility. The Class B units did not have voting rights or rights to share in the Partnership's periodic earnings, either through participation in its distributions or through an allocation of its undistributed earnings or losses. The Class B units were eligible for conversion into common units upon satisfaction of certain conditions. The conditions precedent to conversion of the Class B units were satisfied upon payment of our distribution on August 15, 2014 and, upon such payment, our sponsor, who was the sole owner of our Class B units, elected to convert all of the 3,750,000 Class B units into common units on a one-for-one basis. Incentive Distribution Rights Incentive distribution rights represent the right to receive increasing percentages (ranging from 15.0% to 50.0% ) of quarterly distributions from operating surplus after minimum quarterly distribution and target distribution levels exceed $0.54625 per unit, per quarter. Our sponsor currently holds the incentive distribution rights, but may transfer these rights at any time. Allocations of Net Income Our partnership agreement contains provisions for the allocation of net income and loss to the unitholders and our General Partner. For purposes of maintaining partner capital accounts, the partnership agreement specifies that items of income and loss shall be allocated among the partners in accordance with their respective percentage ownership interest. Normal allocations according to percentage interests are made after giving effect, if any, to priority income allocations in an amount equal to incentive cash distributions allocated 100% to our sponsor. During the year ended December 31, 2016 , no income was allocated to our holders of incentive distribution rights. During the years ended December 31, 2015 and 2014 , $2,622 and $863 was allocated to our holders of incentive distribution rights. During the year ended December 31, 2014, no net income was allocated to our Class B units. Distributions Our partnership agreement sets forth the calculation to be used to determine the amount of cash distributions that our limited partner unitholders and our holders of incentive distribution rights will receive. Our most recent distributions have been as follows: Declaration Date Amount Declared Per Unit Record Date Payment Date Payment to Limited Partner Units Payment to Holders of Incentive Distribution Rights January 15, 2014 $ 0.5100 January 31, 2014 February 14, 2014 $ 14,726 $ — April 16, 2014 $ 0.5250 May 1, 2014 May 15, 2014 $ 17,388 $ — July 16, 2014 $ 0.5750 August 1, 2014 August 15, 2014 $ 19,088 $ 168 October 15, 2014 $ 0.6250 October 31, 2014 November 14, 2014 $ 23,092 $ 695 January 15, 2015 $ 0.6750 January 30, 2015 February 13, 2015 $ 24,947 $ 1,311 April 16, 2015 $ 0.6750 May 1, 2015 May 15, 2015 $ 24,947 $ 1,311 July 21, 2015 $ 0.4750 August 5, 2015 August 14, 2015 $ 17,555 $ — On October 26, 2015, we announced the Board of Directors' decision to temporarily suspend the distribution payment to common unitholders. No quarterly distributions were declared for the third quarter of 2015 or thereafter, as the Partnership continued its distribution suspension to conserve cash. Net Income per Limited Partner Unit The following table outlines our basic and diluted, weighted average limited partner units outstanding during the relevant periods: Year ended December 31, 2016 2015 2014 Basic 49,567,268 36,958,988 33,370,020 Diluted 49,567,268 37,150,878 35,783,540 For purposes of calculating the Partnership’s earnings per unit under the two-class method, common units are treated as participating preferred units, and the previously outstanding subordinated units were treated as the residual equity interest, or common equity. Incentive distribution rights are treated as participating securities. As the Class B units did not have rights to share in the Partnership’s periodic earnings, whether through participation in its distributions or through an allocation of its undistributed earnings or losses, they were not participating securities. In addition, the conversion of the Class B units into common units was fully contingent upon the satisfaction of defined criteria. As such, until all of the defined payment and earnings criteria were satisfied, the Class B units were not included in our calculation of either basic or diluted earnings per unit. The Class B units were converted into common units on August 15, 2014, at which time income allocations commenced on such units. Diluted earnings per unit excludes any dilutive awards granted (see Note 12 - Unit-Based Compensation ) if their effect is anti-dilutive. During the year ended December 31, 2016 , the Partnership incurred a net loss and all 579,781 potentially dilutive awards granted and outstanding were excluded from the diluted earnings per unit calculation. Diluted earnings per unit for the years ended December 31, 2015 and 2014 , includes the dilutive effect of awards granted and outstanding at the assumed number of units which would have vested if the performance period had ended at the end of the respective periods. Distributions made in future periods based on the current period calculation of cash available for distribution are allocated to each class of equity that will receive such distributions. Any unpaid cumulative distributions are allocated to the appropriate class of equity. Each period the Partnership determines the amount of cash available for distributions in accordance with the partnership agreement. The amount to be distributed to limited partner unitholders and incentive distribution rights holders is subject to the distribution waterfall in the partnership agreement. Net earnings or loss for the period are allocated to each class of partnership interest based on the distributions to be made. The following table provides a reconciliation of net loss and the assumed allocation of net loss under the two-class method for purposes of computing net loss per limited partner unit for the year ended December 31, 2016 (in thousands, except per unit amounts): General Partner and IDRs Limited Partner Units Total Declared distribution $ — $ — $ — Assumed allocation of distributions in excess of loss — (81,034 ) (81,034 ) Add back recast income attributable to Blair through August 31, 2016 — (279 ) (279 ) Assumed allocation of net loss $ — $ (81,313 ) $ (81,313 ) Loss per limited partner unit - basic $ (1.64 ) Loss per limited partner unit - diluted $ (1.64 ) Recast Equity Transactions During the years ended December 31, 2016 , 2015 and 2014 , the sponsor paid $1,652 , $2,787 and $182 , respectively, of expenses on behalf of Blair. Such transactions are recognized within the non-controlling interest section of the accompanying Consolidated Statement of Partners' Capital. During the year ended December 31, 2014, the sponsor provided $492 of management services and other expenses paid on behalf of Augusta. Such costs are recognized as non-cash capital contributions by the non-controlling interest in the accompanying financial statements. |
Unit-Based Compensation
Unit-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Unit-Based Compensation | Unit-Based Compensation Long-Term Incentive Plan On August 21, 2012, Hi-Crush GP LLC adopted the Hi-Crush Partners LP Long Term Incentive Plan (the “Plan”) for employees, consultants and directors of Hi-Crush GP LLC and those of its affiliates, including our sponsor, who perform services for the Partnership. The Plan consists of restricted units, unit options, phantom units, unit payments, unit appreciation rights, other equity-based awards, distribution equivalent rights and performance awards. The Plan limits the number of common units that may be issued pursuant to awards under the Plan to 1,364,035 units. On January 9, 2017, the first amendment and restatement of the Plan was approved at a special meeting of our common unitholders and the number of common units that may be issued pursuant to awards under the Plan increased by an additional 2,700,000 common units. After giving effect to the first amendment and restatement of the Plan, to the extent that an award is forfeited, cancelled, exercised, settled in cash, or otherwise terminates or expires without the actual delivery of common units pursuant to such awards, the common units subject to the award will again be available for new awards granted under the Plan; provided, however, that any common units withheld to cover a tax withholding obligation will not again be available for new awards under the Plan. The Plan is administered by Hi-Crush GP LLC’s Board of Directors or a committee thereof. The cost of services received in exchange for an award of equity instruments is measured based on the grant-date fair value of the award and that cost is generally recognized over the vesting period of the award. Performance Phantom Units - Equity Settled The Partnership has awarded Performance Phantom Units ("PPUs") pursuant to the Plan to certain employees. The number of PPUs that will vest will range from 0% to 200% of the number of initially granted PPUs and is dependent on the Partnership's total unitholder return over a three -year performance period compared to the total unitholder return of a designated peer group. Each PPU represents the right to receive, upon vesting, one common unit representing limited partner interests in the Partnership. The PPUs are also entitled to forfeitable distribution equivalent rights ("DERs"), which accumulate during the performance period and are paid in cash on the date of settlement. The fair value of each PPU is estimated using a fair value approach and is amortized into compensation expense, reduced for an estimate of expected forfeitures, over the period of service corresponding with the vesting period. Expected volatility is based on the historical market performance of our peer group. The following table presents information relative to our PPUs. Units Grant Date Weighted-Average Fair Value per Unit Outstanding at December 31, 2015 136,570 $ 46.85 Granted 112,345 $ 15.94 Forfeited (47,394 ) $ 49.34 Outstanding at December 31, 2016 201,521 $ 29.03 As of December 31, 2016 , total compensation expense not yet recognized related to unvested PPUs was $2,263 , with a weighted average remaining service period of 1.4 years . The weighted average grant date fair value per unit for PPUs granted during December 31, 2016 , 2015 and 2014 was $15.94 , $37.52 and $65.57 , respectively. Time-Based Phantom Units - Equity Settled The Partnership has awarded Time-Based Phantom Units ("TPUs") pursuant to the Plan to certain employees which automatically vest if the employee remains employed at the end of the vesting period. Each TPU represents the right to receive, upon vesting, one common unit representing limited partner interests in the Partnership. The TPUs are also entitled to forfeitable DERs, which accumulate during the vesting period and are paid in cash on the date of settlement. The fair value of each TPU is calculated based on the grant-date unit price and is amortized into compensation expense, reduced for an estimate of expected forfeitures, over the period of service corresponding with the vesting period. The following table presents information relative to our TPUs. Units Grant Date Weighted-Average Fair Value per Unit Outstanding at December 31, 2015 55,320 $ 37.63 Vested (1,605 ) $ 38.80 Granted 325,470 $ 12.96 Forfeited (925 ) $ 38.48 Outstanding at December 31, 2016 378,260 $ 16.40 As of December 31, 2016 , total compensation expense not yet recognized related to unvested TPUs was $4,224 , with a weighted average remaining service period of 2.3 years . The weighted average grant date fair value per unit for TPUs granted during December 31, 2016 , 2015 and 2014 was $12.96 , $34.09 and $47.33 , respectively. The total fair value of units vested during December 31, 2016 and 2015 was $62 and $42 , respectively. Board and Other Unit Grants The Partnership issued 103,377 , 6,344 and 5,532 common units to certain of its directors during the years ended December 31, 2016 , 2015 and 2014 , respectively. During the year ended December 31, 2014, the Partnership issued 7,022 common units to certain employees which vest approximately over a two -year period. In January 2017 , the Partnership issued 29,148 common units to certain of its directors. Unit Purchase Program During 2015, the Partnership commenced a unit purchase program ("UPP") offered under the Plan. The UPP provides participating employees and members of our board of directors the opportunity to purchase common units representing limited partner interests of the Partnership at a discount. Non-director employees contribute through payroll deductions not to exceed 35% of the employees eligible compensation during the applicable offering period. Directors contribute through cash contributions not to exceed $150 in aggregate. If the closing price of the Partnership's common units on February 28, 2017 (the "Purchase Date Price") is greater than or equal to 90% of the closing market price of our common units on a participant's applicable election date (the "Election Price"), then the participant will receive a number of common units equal to the amount of accumulated payroll deductions or cash contributions, as applicable, (the “Contribution”) divided by the Election Price, capped at 20,000 common units. If the Purchase Date Price is less than the Election Price, then the participant’s Contribution will be returned to the participant. On the date of election, the Partnership calculates the fair value of the discount, which is recognized as unit compensation expense on a straight-line basis during the period from election date through the date of purchase. As of December 31, 2016 , total accumulated contributions of $514 from directors under the UPP is maintained within the accrued and other current liabilities line on our Consolidated Balance Sheet. The Contribution period for the UPP ended on February 10, 2017, and as such based on all participants' elected percentage of compensation or aggregate dollar contribution, as applicable, the participants will have the right to purchase an aggregate of up to 300,090 common units on February 28, 2017. Compensation Expense The following table presents total unit-based compensation expense: Year ended December 31, 2016 2015 2014 Performance Phantom Units $ 634 $ 1,973 $ 954 Time-Based Phantom Units 1,359 724 155 Director and other unit grants 474 273 361 Unit Purchase Program 153 13 — Total compensation expense $ 2,620 $ 2,983 $ 1,470 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Effective August 16, 2012, our sponsor entered into a services agreement (the “Services Agreement”) with our General Partner, Hi-Crush Services LLC (“Hi-Crush Services”) and the Partnership, pursuant to which Hi-Crush Services provides certain management and administrative services to the Partnership to assist in operating the Partnership’s business. Under the Services Agreement, the Partnership reimburses Hi-Crush Services and its affiliates, on a monthly basis, for the allocable expenses it incurs in its performance under the Services Agreement. These expenses include, among other things, administrative, rent and other expenses for individuals and entities that perform services for the Partnership. Hi-Crush Services and its affiliates will not be liable to the Partnership for its performance of services under the Services Agreement, except for liabilities resulting from gross negligence. During the years ended December 31, 2016 , 2015 and 2014 , the Partnership incurred $4,321 , $4,404 and $9,421 , respectively, of management and administrative service expenses from Hi-Crush Services. In the normal course of business, our sponsor and its affiliates, including Hi-Crush Services, and the Partnership may from time to time make payments on behalf of each other. As of December 31, 2016 and 2015 , an outstanding balance of $1,100 and $106,746 , respectively, payable to our sponsor is maintained as a current liability under the caption “Due to sponsor”. The December 31, 2015, balance was primarily related to construction advances made to Blair. On August 31, 2016, $120,950 of sponsor advances were converted into capital. During the years ended December 31, 2016 , 2015 and 2014 , the Partnership purchased $8,086 , $33,406 and $23,705 , respectively, of sand from Hi-Crush Whitehall LLC, a subsidiary of our sponsor and the entity that owns the sponsor's Whitehall facility, at a purchase price in excess of our production cost per ton, which is reflected in cost of goods sold. During the years ended December 31, 2015 and 2014 , the Partnership purchased $2,754 and $1,385 , respectively, of sand from Goose Landing, LLC, a wholly owned subsidiary of Northern Frac Proppants II, LLC, which is reflected in cost of goods sold. During the year ended December 31, 2016 , the Partnership did not purchase any sand from Goose Landing, LLC. The father of Mr. Alston, who is a director of our General Partner, owned a beneficial equity interest in Northern Frac Proppants II, LLC. On September 8, 2016, the Partnership entered into an agreement to form PropX, which is accounted for as an equity method investment. Through December 31, 2016 , the Partnership has invested $10,232 into PropX. During the year ended December 31, 2016 , the Partnership purchased $1,566 of equipment from PropX, which is reflected in property, plant and equipment. As of December 31, 2016 , the Partnership had accounts payable of $1,553 to PropX for equipment, which is reflected in accounts payable on our Consolidated Balance Sheet. In addition to equipment purchases, we incurred $124 of lease expenses for the use of PropX equipment, which is reflected in cost of goods. During the years ended December 31, 2016 , 2015 and 2014 , the Partnership engaged in multiple construction projects and purchased equipment, machinery and component parts from various vendors that were represented by Alston Environmental Company, Inc. or Alston Equipment Company (“Alston Companies”), which regularly represent vendors in such transactions. The vendors in question paid a commission to the Alston Companies in an amount that is unknown to the Partnership. The sister of Mr. Alston, who is a member of our Board of Directors and through October 28, 2016 was our general partner's Chief Operating Officer, has an ownership interest in the Alston Companies. The Partnership has not paid any sum directly to the Alston Companies and Mr. Alston has represented to the Partnership that he received no compensation from the Alston Companies related to these transactions. |
Impairments and Other Expenses
Impairments and Other Expenses | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Impairments and Other Expenses | Impairments and Other Expenses Our goodwill arose from the acquisition of D&I in 2013 and is therefore allocated to the D&I reporting unit. We performed our annual assessment of the recoverability of goodwill during the third quarter of 2015. Although we had seen a significant decrease in the price of our common units since August 2014, which had resulted in an overall reduction in our market capitalization, our market capitalization exceeded our recorded net book value as of September 30, 2015. At such time, we updated our internal business outlook of the D&I reporting unit to consider the current economic environment that affects our operations. As part of the first step of goodwill impairment testing, we updated our assessment of our future cash flows, applying expected long-term growth rates, discount rates, and terminal values that we considered reasonable. We calculated a present value of the cash flows to arrive at an estimate of fair value under the income approach, and then used the market approach to corroborate this value. As a result of these estimates, we determined that there was no impairment of goodwill as of our annual assessment date. Specific uncertainties affecting our estimated fair value include the impact of competition, the price of frac sand, future overall activity levels and demand for frac sand, activity levels of our significant customers, and other factors affecting the rate of our future growth. These factors were reviewed and assessed during the fourth quarter of 2015 and we determined that there was no impairment of goodwill as of December 31, 2015. However, uncertain market conditions for frac sand resulting from current oil and natural gas prices continued. During the three months ended March 31, 2016, volumes sold through the D&I reporting unit declined below previously forecasted levels and pricing deteriorated further. Industry demand for frac sand continued to decline as the reported Baker Hughes oil rig count in North America fell to 362 rigs as of March 31, 2016, marking a 2016 year-to-date decline of more than 30% . Our customers continued to face uncertainty related to activity levels and have reduced their active frac crews, resulting in further declines in well completion activity. Therefore, as of March 31, 2016, we determined that the state of market conditions and activity levels indicated that an impairment of goodwill may exist. As a result, we assessed qualitative factors and determined that we could not conclude it was more likely than not that the fair value of goodwill exceeded its carrying value. In turn, we prepared a quantitative analysis of the fair value of the goodwill as of March 31, 2016, based on the weighted average valuation across several income and market based valuation approaches. The underlying results of the valuation were driven by our actual results during the three months ended March 31, 2016 and the pricing, costs structures and market conditions existing as of March 31, 2016, which were below our forecasts at the time of the previous goodwill assessments. Other key estimates, assumptions and inputs used in the valuation included long-term growth rates, discounts rates, terminal values, valuation multiples and relative valuations when comparing the reporting unit to similar businesses or asset bases. Upon completion of the Step 1 and Step 2 valuation exercises, it was determined that an impairment loss of all goodwill was incurred, which was equal to the difference between the carrying value and estimated fair value of goodwill. During the year ended December 31, 2016 , the Partnership recognized a $33,745 impairment loss of all goodwill. The Partnership did not recognize any impairment losses for goodwill during the year ended December 31, 2015 . During the year ended December 31, 2015 , we completed an impairment assessment of the intangible asset associated with the Sand Supply Agreement. Given market conditions, coupled with our ability to source sand from our sponsor on more favorable terms, we determined that the fair value of the agreement was less than its carrying value, resulting in an impairment of $18,606 . The Partnership did not recognize any impairments for intangible assets during the year ended December 31, 2016 . During the year ended December 31, 2015 , we elected to temporarily idle five destination transload facilities and three rail origin transload facilities. In addition, to consolidate our administrative functions, we closed down a regional office facility. As a result of these actions, we recognized an impairment of $6,186 related to the write down of transload and office facilities’ assets to their net realizable value, and severance, retention and relocation costs of $571 for affected employees. No impairment charges were recorded for long-lived assets during the years ended December 31, 2016 and 2014 . We recognized impairments and other expenses as outlined in the following table: Year Ended December 31, 2016 2015 2014 Impairment of Goodwill $ 33,745 $ — $ — Impairment of Sand Supply Agreement — 18,606 — Impairment of idled administrative and transload facilities — 6,186 — Severance, retention and relocation 280 571 — Abandonment of construction projects — 256 — Expiration of exclusivity agreements — 40 — Impairments and other expenses $ 34,025 $ 25,659 $ — |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Partnership manages, operates and owns assets utilized to supply frac sand to its customers. It conducts operations through its one operating segment titled "Frac Sand Sales". This reporting segment of the Partnership is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. |
Concentration of Credit Risk
Concentration of Credit Risk | 12 Months Ended |
Dec. 31, 2016 | |
Risks and Uncertainties [Abstract] | |
Concentration of Credit Risk | Concentration of Credit Risk The Partnership is a producer of sand mainly used by the oil and natural gas industry for fracturing wells. The Partnership’s business is, therefore, dependent upon economic activity within this market. For the year ended December 31, 2016 , sales to four customers accounted for 78% of the Partnership's revenue. For the year ended December 31, 2015 , sales to four customers accounted for 68% of the Partnership’s revenue. For the year ended December 31, 2014 , sales to three customers accounted for 64% of the Partnership’s revenue. Throughout 2016 , the Partnership has maintained cash balances in excess of federally insured amounts on deposit with financial institutions. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) As discussed in Note 2 , the Blair Contribution was accounted for as a transaction between entities under common control. Therefore, the Partnership's historical financial information has been recast to include Hi-Crush Blair LLC for the first and second quarters of 2016 and all periods of 2015. First Quarter (a) Second Quarter Third Quarter (b) Fourth Quarter (b) Total 2016 Revenues $ 52,148 $ 38,429 $ 46,556 $ 67,297 $ 204,430 Gross profit (loss) (576 ) (539 ) 216 699 (200 ) Loss from operations (48,772 ) (6,786 ) (7,922 ) (4,312 ) (67,792 ) Net loss (52,353 ) (10,758 ) (10,767 ) (7,255 ) (81,133 ) Loss per limited partner unit: Basic $ (1.39 ) $ (0.26 ) $ (0.21 ) $ (0.11 ) $ (1.64 ) 2015 Revenues $ 102,111 $ 83,958 $ 81,494 $ 72,077 $ 339,640 Gross profit 33,472 20,260 15,094 9,443 78,269 Income (loss) from operations 26,793 13,341 (15,224 ) 14,784 39,694 Net income (loss) 23,476 10,357 (18,662 ) 10,620 25,791 Earnings (loss) per limited partner unit: Basic $ 0.61 $ 0.31 $ (0.49 ) $ 0.30 $ 0.73 (a) The first quarter of 2016 includes a $33,745 impairment of goodwill. Refer to Note 14 for additional disclosure. (b) The third and fourth quarters of 2015 include impairments and other expenses of $23,718 and $1,941 , respectively. Refer to Note 14 for additional disclosure. The fourth quarter of 2015 includes a gain of $12,310 on a contract settlement payment. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Schedule II - Valuation and Qualifying Accounts (In thousands) Balance at Beginning of Period Charged to Costs and Expenses Deductions Balance at End of Period Allowance for doubtful accounts Year Ended December 31, 2016 $ 663 $ 8,236 $ (7,350 ) $ 1,549 Year Ended December 31, 2015 $ 984 $ 101 $ (422 ) $ 663 Year Ended December 31, 2014 $ 300 $ 750 $ (66 ) $ 984 |
Significant Accounting Polici26
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. The more significant estimates relate to purchase accounting allocations and valuations, estimates and assumptions for our mineral reserves and its impact on calculating our depreciation and depletion expense under the units-of-production depreciation method, assessing potential impairment of long-lived assets, estimating potential loss contingencies, inventory valuation, valuation of unit-based compensation, estimated fair value of contingent consideration in the future and the estimated cost of future asset retirement obligations. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of all cash balances and highly liquid investments with an original maturity of three months or less. |
Accounts Receivable | Accounts Receivable Trade receivables relate to sales of raw frac sand and related services for which credit is extended based on the customer’s credit history and are recorded at the invoiced amount and do not bear interest. The Partnership regularly reviews the collectability of accounts receivable. When it is probable that all or part of an outstanding balance will not be collected, the Partnership establishes or adjusts an allowance as necessary using the specific identification method. Account balances are charged against the allowance after all means of collection have been exhausted and potential recovery is considered remote. |
Deferred Charges | Deferred Charges Certain direct costs incurred in connection with debt financing have been capitalized and are being amortized using the straight-line method, which approximates the effective interest method, over the life of the debt. Amortization expense is included in interest expense and was $1,866 , $2,293 and $1,264 for the years ended December 31, 2016 , 2015 and 2014 , respectively. On April 28, 2016 and November 5, 2015, we amended our Revolving Credit Agreement. As a result of these modifications, we accelerated amortization of $349 and $662 , respectively, representing a portion of the remaining unamortized balance of debt issuance costs. Refer to Note 8 - Long-Term Debt for additional disclosure on our Revolver Credit Agreement. In the first quarter of 2016, we adopted and applied on a retrospective basis Accounting Standards Update No. 2015-03, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. |
Inventories | Inventories Sand inventory is stated at the lower of cost or market using the average cost method. Inventory manufactured at our plant facilities includes direct excavation costs, processing costs, overhead allocation, depreciation and depletion. Stockpile tonnages are calculated by measuring the number of tons added and removed from the stockpile. Tonnages are verified periodically by an independent surveyor. Costs are calculated on a per ton basis and are applied to the stockpile based on the number of tons in the stockpile. Inventory transported for sale at our terminal facilities or at the blender includes the cost of purchased or manufactured sand, plus transportation and handling related charges. Spare parts inventory includes critical spares, materials and supplies. We account for spare parts on a first-in, first-out basis, and value the inventory at the lower of cost or market. Detail reviews are performed related to the net realizable value of the spare parts inventory, giving consideration to quality, excessive levels, obsolescence and other factors. |
Property, Plant and Equipment | Property, Plant and Equipment Additions and improvements occurring through the normal course of business are capitalized at cost. When assets are retired or disposed of, the cost and the accumulated depreciation and depletion are eliminated from the accounts and any gain or loss is reflected in the Consolidated Statements of Operations. Expenditures for normal repairs and maintenance are expensed as incurred. Construction-in-progress is primarily comprised of machinery and equipment which has not been placed in service. Mine development costs include engineering, mineralogical studies, drilling and other related costs to develop the mine, the removal of overburden to initially expose the mineral and building access ways. Exploration costs are expensed as incurred and classified as exploration expense. Capitalization of mine development project costs begins once the deposit is classified as proven and probable reserves. Drilling and related costs are capitalized for deposits where proven and probable reserves exist and the activities are directed at obtaining additional information on the deposit or converting non-reserve minerals to proven and probable reserves and the benefit is to be realized over a period greater than one year. Mining property and development costs are amortized using the units-of-production method on estimated measured tons in in-place reserves. The impact of revisions to reserve estimates is recognized on a prospective basis. Capitalized costs incurred during the year for major improvement and capital projects that are not placed in service are recorded as construction-in-progress. Construction-in-progress is not depreciated until the related assets or improvements are ready to be placed in service. We capitalize interest cost as part of the historical cost of constructing an asset and preparing it for its intended use. These interest costs are included in the property, plant and equipment line in the balance sheet. Fixed assets other than plant facilities and buildings associated with productive, depletable properties are carried at historical cost and are depreciated using the straight-line method over the estimated useful lives of the assets, as follows: Computer equipment 3 years Furniture and fixtures 7 years Vehicles 5 years Equipment 5-15 years Rail spurs and asset retirement obligations 17-33 years Rail and rail equipment 15-20 years Transload facilities and equipment 15-25 years Plant facilities and buildings associated with productive, depletable properties that contain frac sand reserves are carried at historical cost and are depreciated using the units-of-production method. Units-of-production rates are based on the amount of proved developed frac sand reserves that are estimated to be recoverable from existing facilities using current operating methods. |
Impairment of Long-lived Assets | Impairment of Long-lived Assets Recoverability of investments in property, plant and equipment, and mineral rights is evaluated annually. Estimated future undiscounted net cash flows are calculated using estimates of proven and probable sand reserves, estimated future sales prices (considering historical and current prices, price trends and related factors) and operating costs and anticipated capital expenditures. Reductions in the carrying value of our investment are only recorded if the undiscounted cash flows are less than our book basis in the applicable assets. Impairment losses are recognized based on the extent that the remaining investment exceeds the fair value, which is determined based upon the estimated future discounted net cash flows to be generated by the property, plant and equipment and mineral rights. Management’s estimates of prices, recoverable proven and probable reserves and operating and capital costs are subject to certain risks and uncertainties which may affect the recoverability of our investments in property, plant and equipment. Although management has made its best estimate of these factors based on current conditions, it is reasonably possible that changes could occur in the near term, which could adversely affect management’s estimate of the net cash flows expected to be generated from its operating property. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill represents the excess of purchase price over the fair value of net assets acquired. The Partnership performs an assessment of the recoverability of goodwill during the third quarter of each fiscal year, or more often if events or circumstances indicate the impairment of an asset may exist. Our assessment of goodwill is based on qualitative factors to determine whether the fair value of the reporting unit is more likely than not less than the carrying value. An additional quantitative impairment analysis is completed if the qualitative analysis indicates that the fair value is not substantially in excess of the carrying value. The quantitative analysis determines the fair value of the reporting unit based on the discounted cash flow method and relative market-based approaches. During the year ended December 31, 2016 , we recognized a $33,745 impairment loss of all goodwill. Refer to Note 14 - Impairments and Other Expenses for additional disclosure regarding our goodwill impairment assessment. The Partnership amortizes the cost of other intangible assets on a straight line basis over their estimated useful lives, ranging from 1 to 20 years. An impairment assessment is performed if events or circumstances occur and may result in the change of the useful lives of the intangible assets. |
Equity Method Investments | Equity Method Investments The Partnership accounts for investments, which it does not control but has the ability to exercise significant influence, using the equity method of accounting. Under this method, the investment is carried originally at cost, increased by any allocated share of the Partnership's net income and contributions made, and decreased by any allocated share of the Partnership's net losses and distributions received. The Partnership's allocated share of income and losses are based on the rights and priorities outlined in the equity investment agreement. |
Asset Retirement Obligations | Asset Retirement Obligations In accordance with Accounting Standards Codification (“ASC”) 410-20, Asset Retirement Obligations , we recognize reclamation obligations when incurred and record them as liabilities at fair value. In addition, a corresponding increase in the carrying amount of the related asset is recorded and depreciated over such asset’s useful life. The reclamation liability is accreted to expense over the estimated productive life of the related asset and is subject to adjustments to reflect changes in value resulting from the passage of time and revisions to the estimates of either the timing or amount of the reclamation costs. |
Revenue Recognition | Revenue Recognition Frac sand sales revenues are recognized when legal title passes to the customer, which may occur at the production facility, rail origin, terminal or well site. At that point, delivery has occurred, evidence of a contractual arrangement exists and collectability is reasonably assured. Revenue from make-whole provisions in our customer contracts is recognized at the end of the defined cure period when collectability is certain. A substantial portion of our frac sand is sold to customers with whom we have long-term supply agreements, the current terms of which expire between 2017 and 2021 . The agreements define, among other commitments, the volume of product that the Partnership must provide, the price that will be charged to the customer, and the volume that the customer must purchase by the end of the defined cure periods, which can range from three months to the end of a contract year. Transportation services revenues are recognized as the services have been completed, meaning the related services have been rendered. At that point, delivery of service has occurred, evidence of a contractual arrangement exists and collectability is reasonably assured. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The amounts reported in the balance sheet as current assets or liabilities, including cash, accounts receivable, accounts payable, accrued and other current liabilities approximate fair value due to the short-term maturities of these instruments. The fair value of the senior secured term loan approximated $191,531 as of December 31, 2016 , based on the market price quoted from external sources, compared with a carrying value of $194,500 . If the senior secured term loan was measured at fair value in the financial statements, it would be classified as Level 2 in the fair value hierarchy. |
Net Income per Limited Partner Unit | Net Income per Limited Partner Unit We have identified the sponsor’s incentive distribution rights as participating securities and compute income per unit using the two-class method under which any excess of distributions declared over net income shall be allocated to the partners based on their respective sharing of income specified in the partnership agreement. Net income per unit applicable to limited partners is computed by dividing limited partners’ interest in net income, after deducting any sponsor incentive distributions, by the weighted-average number of outstanding limited partner units. Through March 31, 2014, basic and diluted net income per unit were the same as there were no potentially dilutive common or subordinated units outstanding. Through August 15, 2014, the 3,750,000 Class B units outstanding did not have voting rights or rights to share in the Partnership’s periodic earnings, either through participation in its distributions or through an allocation of its undistributed earnings or losses, and so were not deemed to be participating securities in their form as Class B units. In addition, the conversion of the Class B units into common units was fully contingent upon the satisfaction of defined criteria pertaining to the cumulative payment of distributions and earnings per unit of the Partnership as described in Note 11 . As such, until all of the defined payment and earnings criteria were satisfied, the Class B units were not included in our calculation of either basic or diluted earnings per unit. As such, for the quarter ended June 30, 2014, the Class B units were included in our calculation of diluted earnings per unit. On August 15, 2014, the Class B units converted into common units, at which time income allocations commenced on such units and the common units were included in our calculation of basic and diluted earnings per unit. As described in Note 2 , the Partnership's historical financial information has been recast to consolidate Augusta and Blair for all periods presented. The amounts of incremental income or losses recast to periods prior to the Augusta Contribution and Blair Contribution are excluded from the calculation of net income per limited partner unit. |
Income Taxes | Income Taxes The Partnership is a pass-through entity and is not considered a taxing entity for federal tax purposes. Therefore, there is not a provision for income taxes in the accompanying Consolidated Financial Statements. The Partnership’s net income or loss is allocated to its partners in accordance with the partnership agreement. The partners are taxed individually on their share of the Partnership’s earnings. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In November 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2016-18, which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendment will be effective for the Partnership beginning January 1, 2018, with early adoption permitted, and should be applied retrospectively. The Partnership is currently assessing the impact that adopting this new accounting guidance will have on its Consolidated Financial Statements. In August 2016, the FASB issued Accounting Standards Update No. 2016-15, which provides guidance that is intended to reduce diversity in practice in how certain cash receipts and cash payments are classified in the statement of cash flows. The amendment will be effective for the Partnership beginning January 1, 2018, with early adoption permitted. The Partnership is currently assessing the impact that adopting this new accounting guidance will have on its Consolidated Financial Statements and footnote disclosures. In March 2016, the FASB issued Accounting Standards Update No. 2016-09, which identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. The new accounting guidance is effective for the Partnership beginning in the first quarter of 2017. The Partnership is currently assessing the impact that adopting this new accounting guidance will have on its Consolidated Financial Statements and footnote disclosures, but does not anticipate that adoption will have a material impact on its financial position, results of operations or cash flows. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, which will impact all leases with durations greater than twelve months. In general, such arrangements will be recognized as assets and liabilities on the balance sheet of the lessee. Under the new accounting guidance a right-of-use asset and lease obligation will be recorded for all leases, whether operating or financing, while the statement of operations will reflect lease expense for operating leases and amortization/interest expense for financing leases. The balance sheet amount recorded for existing leases at the date of adoption will be calculated using the applicable incremental borrowing rate at the date of adoption. The new accounting guidance is effective for the Partnership beginning in the first quarter of 2019, and should be applied retrospectively. The Partnership is currently assessing the impact that adopting this new accounting guidance will have on its Consolidated Financial Statements and footnote disclosures. In May 2014, the FASB issued Accounting Standards Update No. 2014-09 ("ASU 2014-09"), an update that supersedes the most current revenue recognition guidance, as well as some cost recognition guidance. The update requires that an entity recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This update also requires new qualitative and quantitative disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments, information about contract balances and performance obligations, and assets recognized from costs incurred to obtain or fulfill a contract. The authoritative guidance, which may be applied on a full retrospective or modified retrospective basis whereby the entity records a cumulative effect of initially applying this update at the date of initial application, will be effective for the Partnership beginning January 1, 2018. Early adoption is not permitted. The FASB has also issued the following standards which clarify ASU 2014-09 and have the same effective date as the original standard: ASU 2016-12, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients and ASU 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing . The Partnership is still assessing the adoption method it will elect upon implementation and related disclosure requirements. Although we are still in the process of assessing the impact of the adoption of ASU 2014-09, the Partnership does not currently anticipate a material impact on its revenue recognition practices. |
Significant Accounting Polici27
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Future Amortization Expense of Deferred Charges | The following is a summary of future amortization expense associated with deferred charges: For the years ending December 31, 2017 $ 1,208 2018 1,208 2019 947 2020 816 2021 272 Total $ 4,451 |
Estimated Useful Lives of Property, Plant and Equipment | Fixed assets other than plant facilities and buildings associated with productive, depletable properties are carried at historical cost and are depreciated using the straight-line method over the estimated useful lives of the assets, as follows: Computer equipment 3 years Furniture and fixtures 7 years Vehicles 5 years Equipment 5-15 years Rail spurs and asset retirement obligations 17-33 years Rail and rail equipment 15-20 years Transload facilities and equipment 15-25 years |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the carrying value of Blair's assets as of August 31, 2016, and the allocation of the cash consideration payable: Net assets of Hi-Crush Blair LLC as of August 31, 2016: Cash $ 75 Inventories 6,310 Prepaid expenses and other current assets 360 Due from Hi-Crush Partners LP 406 Property, plant and equipment 125,565 Other assets 700 Accounts payable (5,653 ) Accrued liabilities and other current liabilities (2,269 ) Due to sponsor (311 ) Due to Hi-Crush Partners LP (1,240 ) Asset retirement obligation (380 ) Total carrying value of Blair's net assets $ 123,563 Allocation of purchase price Carrying value of sponsor's non-controlling interest prior to Blair Contribution $ 125,571 Excess purchase price over the acquired interest (a) (45,571 ) Cost of Blair acquisition $ 80,000 (a) The deemed contribution attributable to the purchase price was allocated to the common unitholders and excludes the $5,000 estimated fair value of contingent consideration payable in the future. The following table summarizes the carrying value of Augusta's assets as of April 28, 2014, and the allocation of the cash consideration paid: Net assets of Hi-Crush Augusta LLC as of April 28, 2014: Cash $ 1,035 Accounts receivable 9,816 Inventories 4,012 Prepaid expenses and other current assets 114 Due from Hi-Crush Partners LP 1,756 Property, plant and equipment 84,900 Accounts payable (3,379 ) Accrued liabilities and other current liabilities (2,926 ) Due to sponsor (4,721 ) Asset retirement obligation (2,993 ) Total carrying value of Augusta's net assets $ 87,614 Allocation of purchase price Carrying value of sponsor's non-controlling interest prior to Augusta Contribution $ 35,951 Less: Carrying value of 2% of non-controlling interest retained by sponsor (1,752 ) Purchase price allocated to non-controlling interest acquired 34,199 Excess purchase price over the historical cost of the acquired non-controlling interest (a) 190,051 Cost of Augusta acquisition $ 224,250 (a) The deemed distribution attributable to the excess purchase price was allocated to the common and subordinated unitholders based on the respective number of units outstanding as of April 28, 2014. |
Business Acquisition, Recast Financial Information | The following tables present our recast revenues, net income (loss) and net income (loss) attributable to Hi-Crush Partners LP per limited partner unit giving effect to the Augusta Contribution and Blair Contribution, as reconciled to the revenues, net income (loss) and net income (loss) attributable to Hi-Crush Partners LP per limited partner unit. Year Ended December 31, 2016 Partnership Historical Blair through August 31, 2016 Eliminations Partnership Recast Revenues $ 204,430 $ 13,761 $ (13,761 ) $ 204,430 Net income (loss) $ (81,412 ) $ 716 $ (437 ) $ (81,133 ) Net loss attributable to Hi-Crush Partners LP per limited partner unit - basic $ (1.64 ) $ (1.63 ) Year Ended December 31, 2015 Partnership Blair Eliminations Partnership Revenues $ 339,640 $ — $ — $ 339,640 Net income (loss) $ 28,410 $ (2,619 ) $ — $ 25,791 Net income attributable to Hi-Crush Partners LP per limited partner unit - basic $ 0.73 $ 0.66 Year Ended December 31, 2014 Partnership Augusta Blair Eliminations Partnership Revenues $ 365,347 $ 25,356 $ — $ (4,156 ) $ 386,547 Net income (loss) $ 120,484 $ 11,398 $ (105 ) $ (7,857 ) $ 123,920 Net income attributable to Hi-Crush Partners LP per limited partner unit - basic $ 3.09 $ 3.14 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | Inventories consisted of the following: December 31, 2016 2015 Raw material $ — $ — Work-in-process 13,018 11,827 Finished goods 9,304 13,960 Spare parts 2,016 2,184 Inventories $ 24,338 $ 27,971 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Components of Property, Plant and Equipment | Property, plant and equipment consisted of the following: December 31, 2016 2015 Buildings $ 9,696 $ 5,519 Mining property and mine development 93,694 79,244 Plant and equipment 237,870 151,582 Rail and rail equipment 44,935 29,300 Transload facilities and equipment 78,105 62,557 Construction-in-progress 1,695 102,464 Property, plant and equipment 465,995 430,666 Less: Accumulated depreciation and depletion (49,045 ) (37,154 ) Property, plant and equipment, net $ 416,950 $ 393,512 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill and Intangible Assets | Changes in goodwill and intangible assets consisted of the following: Goodwill Intangible Assets Balance at December 31, 2014 $ 33,745 $ 33,005 Loss on impairment (Note 14) — (18,606 ) Amortization expense — (2,620 ) Balance at December 31, 2015 33,745 11,779 Loss on impairment (Note 14) (33,745 ) — Amortization expense — (1,682 ) Balance at December 31, 2016 $ — $ 10,097 |
Intangible Assets, Arising from Acquisition | Intangible assets arising from the acquisition of D&I consisted of the following: December 31, Useful life 2016 2015 Supplier agreements 1-20 Years $ 21,997 $ 21,997 Customer contracts and relationships 1-10 Years 18,132 18,132 Other intangible assets 1-3 Years 1,749 1,749 Intangible assets 41,878 41,878 Less: Accumulated amortization and impairments (31,781 ) (30,099 ) Intangible assets, net $ 10,097 $ 11,779 |
Future Amortization Expense of Intangible Assets | As of December 31, 2016 , future amortization is as follows: Fiscal Year Amortization 2017 $ 1,682 2018 1,682 2019 1,682 2020 1,682 2021 1,682 Thereafter 1,687 $ 10,097 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Components of Long-Term Debt | Long-term debt consisted of the following: December 31, 2016 2015 Revolving Credit Agreement $ — $ 52,500 Term Loan Credit Facility 194,500 196,500 Less: Unamortized original issue discount (1,247 ) (1,529 ) Less: Unamortized debt issuance costs (3,538 ) (4,354 ) Other notes payable 6,705 6,924 Total debt 196,420 250,041 Less: current portion of long-term debt (2,962 ) (3,258 ) Long-term debt $ 193,458 $ 246,783 |
Schedule of Maturities of Long-term Debt | As of December 31, 2016 , future minimum debt repayments are as follows: Fiscal Year Amount 2017 $ 2,962 2018 4,067 2019 5,676 2020 2,000 2021 186,500 $ 201,205 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Asset Retirement Obligation [Abstract] | |
Reconciliation of Total Reclamation Liability for Asset Retirement Obligations | Although the ultimate amount of reclamation and closure costs to be incurred is uncertain, the Partnership maintained a post-closure reclamation and site restoration obligation as follows: Balance at December 31, 2013 $ 4,627 Additions to liabilities 1,857 Accretion expense 246 Balance at December 31, 2014 6,730 Accretion expense 336 Balance at December 31, 2015 7,066 Additions to liabilities 373 Accretion expense 369 Balance at December 31, 2016 $ 7,808 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Contractual Obligations | As of December 31, 2016 , future minimum operating lease payments and minimum purchase commitments are as follows: Fiscal Year Operating Minimum Purchase 2017 $ 27,706 $ 1,576 2018 27,586 1,576 2019 30,133 1,866 2020 27,520 2,296 2021 22,682 2,296 Thereafter 36,996 4,168 $ 172,623 $ 13,778 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Schedule of Distributions Made to Limited Partner Unitholders | Our most recent distributions have been as follows: Declaration Date Amount Declared Per Unit Record Date Payment Date Payment to Limited Partner Units Payment to Holders of Incentive Distribution Rights January 15, 2014 $ 0.5100 January 31, 2014 February 14, 2014 $ 14,726 $ — April 16, 2014 $ 0.5250 May 1, 2014 May 15, 2014 $ 17,388 $ — July 16, 2014 $ 0.5750 August 1, 2014 August 15, 2014 $ 19,088 $ 168 October 15, 2014 $ 0.6250 October 31, 2014 November 14, 2014 $ 23,092 $ 695 January 15, 2015 $ 0.6750 January 30, 2015 February 13, 2015 $ 24,947 $ 1,311 April 16, 2015 $ 0.6750 May 1, 2015 May 15, 2015 $ 24,947 $ 1,311 July 21, 2015 $ 0.4750 August 5, 2015 August 14, 2015 $ 17,555 $ — On October 26, 2015, we announced the Board of Directors' decision to temporarily suspend the distribution payment to common unitholders. No quarterly distributions were declared for the third quarter of 2015 or thereafter, as the Partnership continued its distribution suspension to conserve cash. |
Schedule of Weighted Average Limited Partner Units Outstanding | The following table outlines our basic and diluted, weighted average limited partner units outstanding during the relevant periods: Year ended December 31, 2016 2015 2014 Basic 49,567,268 36,958,988 33,370,020 Diluted 49,567,268 37,150,878 35,783,540 |
Schedule of Net Income Attributable to Limited Partners | The following table provides a reconciliation of net loss and the assumed allocation of net loss under the two-class method for purposes of computing net loss per limited partner unit for the year ended December 31, 2016 (in thousands, except per unit amounts): General Partner and IDRs Limited Partner Units Total Declared distribution $ — $ — $ — Assumed allocation of distributions in excess of loss — (81,034 ) (81,034 ) Add back recast income attributable to Blair through August 31, 2016 — (279 ) (279 ) Assumed allocation of net loss $ — $ (81,313 ) $ (81,313 ) Loss per limited partner unit - basic $ (1.64 ) Loss per limited partner unit - diluted $ (1.64 ) |
Unit-Based Compensation (Tables
Unit-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Performance Phantom Units Activity | The following table presents information relative to our PPUs. Units Grant Date Weighted-Average Fair Value per Unit Outstanding at December 31, 2015 136,570 $ 46.85 Granted 112,345 $ 15.94 Forfeited (47,394 ) $ 49.34 Outstanding at December 31, 2016 201,521 $ 29.03 |
Schedule of Time-Based Phantom Units Activity | The following table presents information relative to our TPUs. Units Grant Date Weighted-Average Fair Value per Unit Outstanding at December 31, 2015 55,320 $ 37.63 Vested (1,605 ) $ 38.80 Granted 325,470 $ 12.96 Forfeited (925 ) $ 38.48 Outstanding at December 31, 2016 378,260 $ 16.40 |
Schedule of Unit-based Compensation Expense | The following table presents total unit-based compensation expense: Year ended December 31, 2016 2015 2014 Performance Phantom Units $ 634 $ 1,973 $ 954 Time-Based Phantom Units 1,359 724 155 Director and other unit grants 474 273 361 Unit Purchase Program 153 13 — Total compensation expense $ 2,620 $ 2,983 $ 1,470 |
Impairments and Other Expenses
Impairments and Other Expenses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Impairments and Other Expenses | We recognized impairments and other expenses as outlined in the following table: Year Ended December 31, 2016 2015 2014 Impairment of Goodwill $ 33,745 $ — $ — Impairment of Sand Supply Agreement — 18,606 — Impairment of idled administrative and transload facilities — 6,186 — Severance, retention and relocation 280 571 — Abandonment of construction projects — 256 — Expiration of exclusivity agreements — 40 — Impairments and other expenses $ 34,025 $ 25,659 $ — |
Quarterly Financial Data (Una38
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Financial Data | As discussed in Note 2 , the Blair Contribution was accounted for as a transaction between entities under common control. Therefore, the Partnership's historical financial information has been recast to include Hi-Crush Blair LLC for the first and second quarters of 2016 and all periods of 2015. First Quarter (a) Second Quarter Third Quarter (b) Fourth Quarter (b) Total 2016 Revenues $ 52,148 $ 38,429 $ 46,556 $ 67,297 $ 204,430 Gross profit (loss) (576 ) (539 ) 216 699 (200 ) Loss from operations (48,772 ) (6,786 ) (7,922 ) (4,312 ) (67,792 ) Net loss (52,353 ) (10,758 ) (10,767 ) (7,255 ) (81,133 ) Loss per limited partner unit: Basic $ (1.39 ) $ (0.26 ) $ (0.21 ) $ (0.11 ) $ (1.64 ) 2015 Revenues $ 102,111 $ 83,958 $ 81,494 $ 72,077 $ 339,640 Gross profit 33,472 20,260 15,094 9,443 78,269 Income (loss) from operations 26,793 13,341 (15,224 ) 14,784 39,694 Net income (loss) 23,476 10,357 (18,662 ) 10,620 25,791 Earnings (loss) per limited partner unit: Basic $ 0.61 $ 0.31 $ (0.49 ) $ 0.30 $ 0.73 (a) The first quarter of 2016 includes a $33,745 impairment of goodwill. Refer to Note 14 for additional disclosure. (b) The third and fourth quarters of 2015 include impairments and other expenses of $23,718 and $1,941 , respectively. Refer to Note 14 for additional disclosure. The fourth quarter of 2015 includes a gain of $12,310 on a contract settlement payment. |
Business and Organization - Nar
Business and Organization - Narrative (Details) - USD ($) | Aug. 31, 2016 | Aug. 15, 2014 | Apr. 28, 2014 | Apr. 08, 2014 | Jan. 31, 2013 | Dec. 31, 2016 | Dec. 31, 2015 | [1] | Dec. 31, 2014 | May 08, 2012 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||
Percentage of limited partner interest | 100.00% | ||||||||||
Business Acquisition [Line Items] | |||||||||||
Payments to acquire business | $ 75,000,000 | $ 0 | $ 224,250,000 | [1],[2] | |||||||
Number of common units issued (in units) | 19,550,000 | 4,325,000 | |||||||||
Term Loan Credit Facility | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Line of credit facility, maximum borrowing capacity | $ 200,000,000 | ||||||||||
Common Units | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Number of common units issued (in units) | 4,325,000 | ||||||||||
Class B Units | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Class B units converted into common units (in units) | 3,750,000 | 3,750,000 | |||||||||
Number of common units sold to public (in units) | 3,750,000 | ||||||||||
Hi-Crush Augusta LLC | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Payments to acquire business | $ 224,250,000 | $ 37,500,000 | |||||||||
Ownership percentage | 98.00% | ||||||||||
Hi-Crush Augusta LLC | Class B Units | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Business acquisition, number of shares issued (in units) | 3,750,000 | ||||||||||
Hi-Crush Blair LLC | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Payments to acquire business | $ 75,000,000 | ||||||||||
Business acquisition, maximum contingent earnout consideration to pay | $ 10,000,000 | ||||||||||
Hi-Crush Blair LLC | Common Units | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Business acquisition, number of shares issued (in units) | 7,053,292 | ||||||||||
[1] | Financial information has been recast to include the financial position and results attributable to Hi-Crush Blair LLC. | ||||||||||
[2] | Financial information has been recast to include the financial position and results attributable to Hi-Crush Augusta LLC. |
Significant Accounting Polici40
Significant Accounting Policies - Narrative (Details) | Jan. 31, 2013shares | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($)facility | Dec. 31, 2014USD ($) | |
Accounting Policies [Abstract] | ||||||
Allowance for doubtful accounts | $ 1,549,000 | $ 663,000 | ||||
Allowance for doubtful accounts, write-off | $ 8,236,000 | |||||
Line of Credit Facility [Line Items] | ||||||
Amortization of debt financing costs | 1,866,000 | 2,293,000 | $ 1,264,000 | |||
Accelerated amortization of financing costs | 349,000 | 662,000 | ||||
Equity method investment in PropX | 10,232,000 | 0 | [1] | |||
Carrying value of long-term debt | 201,205,000 | |||||
Property, Plant and Equipment [Line Items] | ||||||
Impairment of idled administrative and transload facilities | 0 | 6,186,000 | 0 | |||
Impairment of goodwill | $ 33,745,000 | 33,745,000 | 0 | 0 | ||
Impairment of intangible assets | 0 | $ 18,606,000 | $ 0 | |||
Proppant Express Investments, LLC | ||||||
Line of Credit Facility [Line Items] | ||||||
Equity method investment in PropX | $ 10,232,000 | |||||
Class B Units | Hi-Crush Augusta LLC | ||||||
Line of Credit Facility [Line Items] | ||||||
Business acquisition, number of shares issued (in units) | shares | 3,750,000 | |||||
Minimum | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Estimated useful life of intangible assets | 1 year | |||||
Long-term Supply Agreements, expiration year | 2,017 | |||||
Maximum | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Estimated useful life of intangible assets | 20 years | |||||
Long-term Supply Agreements, expiration year | 2,021 | |||||
Transload facilities and equipment | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Number of idled facilities | facility | 5 | |||||
Rail spurs and asset retirement obligations | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Number of idled facilities | facility | 3 | |||||
Term Loan Credit Facility | $200M Term Loan Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Unamortized debt issuance costs in long-term debt | $ 3,538,000 | $ 4,354,000 | ||||
Fair value of the senior secured term loan | 191,531,000 | |||||
Carrying value of long-term debt | 194,500,000 | 196,500,000 | ||||
Revolving Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Unamortized debt issuance costs in other assets | 913,000 | 1,541,000 | ||||
Carrying value of long-term debt | $ 0 | $ 52,500,000 | ||||
[1] | Financial information has been recast to include the financial position and results attributable to Hi-Crush Blair LLC. |
Significant Accounting Polici41
Significant Accounting Policies - Future Amortization Expense of Deferred Charges (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Accounting Policies [Abstract] | |
2,017 | $ 1,208 |
2,018 | 1,208 |
2,019 | 947 |
2,020 | 816 |
2,021 | 272 |
Total unamortized debt issuance costs | $ 4,451 |
Significant Accounting Polici42
Significant Accounting Policies - Estimated Useful Lives of Property, Plant and Equipment (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Computer equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property, plant and equipment | 3 years |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property, plant and equipment | 7 years |
Vehicles | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property, plant and equipment | 5 years |
Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property, plant and equipment | 5 years |
Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property, plant and equipment | 15 years |
Rail spurs and asset retirement obligations | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property, plant and equipment | 17 years |
Rail spurs and asset retirement obligations | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property, plant and equipment | 33 years |
Rail and rail equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property, plant and equipment | 15 years |
Rail and rail equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property, plant and equipment | 20 years |
Transload facilities and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property, plant and equipment | 15 years |
Transload facilities and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property, plant and equipment | 25 years |
Business Combinations - Narrati
Business Combinations - Narrative (Details) - USD ($) | Aug. 31, 2016 | Apr. 28, 2014 | Jan. 31, 2013 | Dec. 31, 2016 | Dec. 31, 2015 | [1] | Dec. 31, 2014 | |
Business Acquisition [Line Items] | ||||||||
Payments to acquire business | $ 75,000,000 | $ 0 | $ 224,250,000 | [1],[2] | ||||
Estimated fair value of contingent consideration liability | 5,000,000 | |||||||
Hi-Crush Blair LLC | ||||||||
Business Acquisition [Line Items] | ||||||||
Payments to acquire business | $ 75,000,000 | |||||||
Business acquisition, maximum contingent earnout consideration to pay | 10,000,000 | |||||||
Acquisition related costs | $ 850,000 | |||||||
Business acquisition, contingent consideration, value per each threshold | $ 5,000,000 | |||||||
Hi-Crush Blair LLC | Common Units | ||||||||
Business Acquisition [Line Items] | ||||||||
Business acquisition, number of shares issued (in units) | 7,053,292 | |||||||
Hi-Crush Augusta LLC | ||||||||
Business Acquisition [Line Items] | ||||||||
Payments to acquire business | $ 224,250,000 | $ 37,500,000 | ||||||
Acquisition related costs | $ 768,000 | |||||||
Number of units acquired | 390,000 | |||||||
Ownership percentage | 98.00% | |||||||
Sponsor's Noncontrolling Interest | 2.00% | |||||||
Hi-Crush Augusta LLC | Preferred Units | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of units acquired | 100,000 | |||||||
Hi-Crush Augusta LLC | Class B Units | ||||||||
Business Acquisition [Line Items] | ||||||||
Business acquisition, number of shares issued (in units) | 3,750,000 | |||||||
Hi-Crush Augusta LLC | Common Units | ||||||||
Business Acquisition [Line Items] | ||||||||
Preferred equity interest converted (in units) | 100,000 | |||||||
[1] | Financial information has been recast to include the financial position and results attributable to Hi-Crush Blair LLC. | |||||||
[2] | Financial information has been recast to include the financial position and results attributable to Hi-Crush Augusta LLC. |
Business Combinations - Carryin
Business Combinations - Carrying value of Blair's assets and allocation of cash consideration pad (Details) - Hi-Crush Blair LLC $ in Thousands | Aug. 31, 2016USD ($) | |
Business Acquisition [Line Items] | ||
Cash | $ 75 | |
Inventories | 6,310 | |
Prepaid expenses and other current assets | 360 | |
Due from Hi-Crush Partners LP | 406 | |
Property, plant and equipment | 125,565 | |
Other assets | 700 | |
Accounts payable | (5,653) | |
Accrued liabilities and other current liabilities | (2,269) | |
Due to sponsor | (311) | |
Due to Hi-Crush Partners LP | (1,240) | |
Asset retirement obligation | (380) | |
Total carrying value of net assets | 123,563 | |
Carrying value of sponsor's non-controlling interest prior to Blair Contribution | 125,571 | |
Excess purchase price over the acquired interest | (45,571) | [1] |
Cost of Blair acquisition | $ 80,000 | |
[1] | The deemed contribution attributable to the purchase price was allocated to the common unitholders and excludes the $5,000 estimated fair value of contingent consideration payable in the future. |
Business Combinations - Carry45
Business Combinations - Carrying Value of Augusta's assets and allocation of cash consideration paid (Details) - USD ($) $ in Thousands | Apr. 28, 2014 | Jan. 31, 2013 | Dec. 31, 2016 | Dec. 31, 2015 | [1] | Dec. 31, 2014 | [1],[2] | |
Business Acquisition [Line Items] | ||||||||
Cost of Augusta acquisition | $ 75,000 | $ 0 | $ 224,250 | |||||
Hi-Crush Augusta LLC | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash | $ 1,035 | |||||||
Accounts receivable | 9,816 | |||||||
Inventories | 4,012 | |||||||
Prepaid expenses and other current assets | 114 | |||||||
Due from Hi-Crush Partners LP | 1,756 | |||||||
Property, plant and equipment | 84,900 | |||||||
Accounts payable | (3,379) | |||||||
Accrued liabilities and other current liabilities | (2,926) | |||||||
Due to sponsor | (4,721) | |||||||
Asset retirement obligation | (2,993) | |||||||
Total carrying value of net assets | 87,614 | |||||||
Carrying value of sponsor's non-controlling interest prior to Augusta Contribution | 35,951 | |||||||
Less: Carrying value of 2% of non-controlling interest retained by sponsor | (1,752) | |||||||
Purchase price allocated to non-controlling interest acquired | 34,199 | |||||||
Excess purchase price over the historical cost of the acquired non-controlling interest | [3] | 190,051 | ||||||
Cost of Augusta acquisition | $ 224,250 | $ 37,500 | ||||||
[1] | Financial information has been recast to include the financial position and results attributable to Hi-Crush Blair LLC. | |||||||
[2] | Financial information has been recast to include the financial position and results attributable to Hi-Crush Augusta LLC. | |||||||
[3] | The deemed distribution attributable to the excess purchase price was allocated to the common and subordinated unitholders based on the respective number of units outstanding as of April 28, 2014. |
Business Combinations - Recast
Business Combinations - Recast Financial Results (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | [1] | Dec. 31, 2015 | [2] | Sep. 30, 2015 | [2] | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Business Acquisition [Line Items] | ||||||||||||||||
Revenues | $ 67,297 | $ 46,556 | $ 38,429 | $ 52,148 | $ 72,077 | $ 81,494 | $ 83,958 | $ 102,111 | $ 204,430 | $ 339,640 | [3] | $ 386,547 | [3],[4] | |||
Net income (loss) | $ (7,255) | $ (10,767) | $ (10,758) | $ (52,353) | $ 10,620 | $ (18,662) | $ 10,357 | $ 23,476 | $ (81,133) | $ 25,791 | [3] | $ 123,920 | [3],[4] | |||
Net income (loss) attributable to Hi-Crush Partners LP per limited partner unit - basic (usd per unit) | $ (0.11) | $ (0.21) | $ (0.26) | $ (1.39) | $ 0.30 | $ (0.49) | $ 0.31 | $ 0.61 | $ (1.64) | $ 0.73 | [3] | $ 3.09 | [3],[4] | |||
Net income (loss) attributable to Hi-Crush Partners LP per limited partner unit - basic, pro forma (usd per unit) | $ (1.63) | $ 0.66 | $ 3.14 | |||||||||||||
Historical | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Revenues | $ 204,430 | $ 339,640 | $ 365,347 | |||||||||||||
Net income (loss) | (81,412) | 28,410 | 120,484 | |||||||||||||
Adjustment | Hi-Crush Blair LLC | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Revenues | 13,761 | 0 | 0 | |||||||||||||
Net income (loss) | 716 | (2,619) | (105) | |||||||||||||
Adjustment | Hi-Crush Augusta LLC | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Revenues | 25,356 | |||||||||||||||
Net income (loss) | 11,398 | |||||||||||||||
Adjustment | Eliminations | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Revenues | (13,761) | 0 | (4,156) | |||||||||||||
Net income (loss) | $ (437) | $ 0 | $ (7,857) | |||||||||||||
[1] | The first quarter of 2016 includes a $33,745 impairment of goodwill. Refer to Note 14 for additional disclosure. | |||||||||||||||
[2] | The third and fourth quarters of 2015 include impairments and other expenses of $23,718 and $1,941, respectively. Refer to Note 14 for additional disclosure. The fourth quarter of 2015 includes a gain of $12,310 on a contract settlement payment. | |||||||||||||||
[3] | Financial information has been recast to include the financial position and results attributable to Hi-Crush Blair LLC. | |||||||||||||||
[4] | Financial information has been recast to include the financial position and results attributable to Hi-Crush Augusta LLC. |
Inventories - Components of Inv
Inventories - Components of Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |||
Raw material | $ 0 | $ 0 | |
Work-in-process | 13,018 | 11,827 | |
Finished goods | 9,304 | 13,960 | |
Spare parts | 2,016 | 2,184 | |
Inventories | $ 24,338 | $ 27,971 | [1] |
[1] | Financial information has been recast to include the financial position and results attributable to Hi-Crush Blair LLC. |
Property, Plant and Equipment -
Property, Plant and Equipment - Components of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 465,995 | $ 430,666 | |
Less: Accumulated depreciation and depletion | (49,045) | (37,154) | |
Property, plant and equipment, net | 416,950 | 393,512 | [1] |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 9,696 | 5,519 | |
Mining property and mine development | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 93,694 | 79,244 | |
Plant and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 237,870 | 151,582 | |
Rail and rail equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 44,935 | 29,300 | |
Transload facilities and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 78,105 | 62,557 | |
Construction-in-progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 1,695 | $ 102,464 | |
[1] | Financial information has been recast to include the financial position and results attributable to Hi-Crush Blair LLC. |
Property, Plant and Equipment49
Property, Plant and Equipment - Narrative (Details) | 12 Months Ended | ||||
Dec. 31, 2016USD ($)facility | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |||
Property, Plant and Equipment [Line Items] | |||||
Depreciation and depletion | $ 15,444,000 | $ 12,270,000 | [1] | $ 8,858,000 | [1],[2] |
Gain (loss) on disposal of fixed assets | 357,000 | (72,000) | 15,000 | ||
Impairment of idled administrative and transload facilities | 0 | 6,186,000 | 0 | ||
Abandonment of construction projects | $ 0 | $ 256,000 | $ 0 | ||
Transload facilities and equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Number of facilities sold | facility | 2 | ||||
Number of facilities terminated | facility | 2 | ||||
[1] | Financial information has been recast to include the financial position and results attributable to Hi-Crush Blair LLC. | ||||
[2] | Financial information has been recast to include the financial position and results attributable to Hi-Crush Augusta LLC. |
Goodwill and Intangible Asset50
Goodwill and Intangible Assets - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||
Impairment of goodwill | $ 33,745,000 | $ 33,745,000 | $ 0 | $ 0 | ||
Amortization of intangible assets | $ 1,682,000 | 2,620,000 | [1] | 5,186,000 | [1],[2] | |
Weighted average remaining life of intangible assets | 6 years | |||||
Impairment of intangible assets | $ 0 | $ 18,606,000 | $ 0 | |||
[1] | Financial information has been recast to include the financial position and results attributable to Hi-Crush Blair LLC. | |||||
[2] | Financial information has been recast to include the financial position and results attributable to Hi-Crush Augusta LLC. |
Goodwill and Intangible Asset51
Goodwill and Intangible Assets - Changes in Goodwill and Intangible Assets (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Goodwill | ||||||
Goodwill, beginning balance | $ 33,745,000 | $ 33,745,000 | $ 33,745,000 | |||
Loss on impairment of goodwill | (33,745,000) | (33,745,000) | 0 | $ 0 | ||
Goodwill, ending balance | 0 | 33,745,000 | 33,745,000 | |||
Intangible Assets | ||||||
Intangible assets, beginning balance | $ 11,779,000 | 11,779,000 | 33,005,000 | |||
Loss on impairment of intangible assets | 0 | (18,606,000) | 0 | |||
Amortization of intangible assets | (1,682,000) | (2,620,000) | [1] | (5,186,000) | [1],[2] | |
Intangible assets, ending balance | $ 10,097,000 | $ 11,779,000 | $ 33,005,000 | |||
[1] | Financial information has been recast to include the financial position and results attributable to Hi-Crush Blair LLC. | |||||
[2] | Financial information has been recast to include the financial position and results attributable to Hi-Crush Augusta LLC. |
Goodwill and Intangible Asset52
Goodwill and Intangible Assets - Intangible Assets Arising from Acquisition (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets And Liabilities [Line Items] | |||
Intangible assets | $ 41,878 | $ 41,878 | |
Less: Accumulated amortization and impairments | (31,781) | (30,099) | |
Intangible assets, net | $ 10,097 | 11,779 | $ 33,005 |
Minimum | |||
Finite-Lived Intangible Assets And Liabilities [Line Items] | |||
Estimated useful life of intangible assets | 1 year | ||
Maximum | |||
Finite-Lived Intangible Assets And Liabilities [Line Items] | |||
Estimated useful life of intangible assets | 20 years | ||
Supplier agreements | |||
Finite-Lived Intangible Assets And Liabilities [Line Items] | |||
Intangible assets | $ 21,997 | 21,997 | |
Supplier agreements | Minimum | |||
Finite-Lived Intangible Assets And Liabilities [Line Items] | |||
Estimated useful life of intangible assets | 1 year | ||
Supplier agreements | Maximum | |||
Finite-Lived Intangible Assets And Liabilities [Line Items] | |||
Estimated useful life of intangible assets | 20 years | ||
Customer contracts and relationships | |||
Finite-Lived Intangible Assets And Liabilities [Line Items] | |||
Intangible assets | $ 18,132 | 18,132 | |
Customer contracts and relationships | Minimum | |||
Finite-Lived Intangible Assets And Liabilities [Line Items] | |||
Estimated useful life of intangible assets | 1 year | ||
Customer contracts and relationships | Maximum | |||
Finite-Lived Intangible Assets And Liabilities [Line Items] | |||
Estimated useful life of intangible assets | 10 years | ||
Other intangible assets | |||
Finite-Lived Intangible Assets And Liabilities [Line Items] | |||
Intangible assets | $ 1,749 | $ 1,749 | |
Other intangible assets | Minimum | |||
Finite-Lived Intangible Assets And Liabilities [Line Items] | |||
Estimated useful life of intangible assets | 1 year | ||
Other intangible assets | Maximum | |||
Finite-Lived Intangible Assets And Liabilities [Line Items] | |||
Estimated useful life of intangible assets | 3 years |
Goodwill and Intangible Asset53
Goodwill and Intangible Assets - Future Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
2,017 | $ 1,682 | ||
2,018 | 1,682 | ||
2,019 | 1,682 | ||
2,020 | 1,682 | ||
2,021 | 1,682 | ||
Thereafter | 1,687 | ||
Intangible assets, net | $ 10,097 | $ 11,779 | $ 33,005 |
Long-Term Debt - Components of
Long-Term Debt - Components of Long-Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Line of Credit Facility [Line Items] | |||
Partnership debt | $ 201,205 | ||
Total debt | 196,420 | $ 250,041 | |
Less: current portion of long-term debt | (2,962) | (3,258) | [1] |
Long-term debt | 193,458 | 246,783 | [1] |
Other notes payable | |||
Line of Credit Facility [Line Items] | |||
Partnership debt | 6,705 | 6,924 | |
Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Partnership debt | 0 | 52,500 | |
Term Loan Credit Facility | $200M Term Loan Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Partnership debt | 194,500 | 196,500 | |
Less: Unamortized original issue discount | (1,247) | (1,529) | |
Less: Unamortized debt issuance costs | (3,538) | $ (4,354) | |
Total debt | $ 189,715 | ||
[1] | Financial information has been recast to include the financial position and results attributable to Hi-Crush Blair LLC. |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) | Jul. 02, 2017 | Jan. 04, 2017USD ($) | Apr. 28, 2014USD ($) | Jan. 31, 2017USD ($) | Jun. 30, 2017 | Jun. 30, 2016USD ($) | Sep. 30, 2017 | Dec. 31, 2017 | Mar. 31, 2018 | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | ||
Line of Credit Facility [Line Items] | ||||||||||||||
Repayment of long-term debt | $ 58,396,000 | $ 14,928,000 | [1] | $ 139,750,000 | [1],[2] | |||||||||
Letter of credit commitments | 8,632,000 | |||||||||||||
Partnership debt | 196,420,000 | 250,041,000 | ||||||||||||
Carrying value of long-term debt | 201,205,000 | |||||||||||||
Cash consideration paid to acquire land | 2,500,000 | 2,500,000 | 2,500,000 | |||||||||||
Subsequent Event | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Common unit aggregate offering price, maximum amount | $ 50,000,000 | |||||||||||||
Other notes payable | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Carrying value of long-term debt | 6,705,000 | 6,924,000 | ||||||||||||
Prepayments made by Partnership on promissory notes | $ 3,896,000 | 428,000 | ||||||||||||
Other notes payable | Subsequent Event | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Prepayments made by Partnership on promissory notes | $ 962,000 | |||||||||||||
Other notes payable | Minimum | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Effective interest rate | 0.56% | |||||||||||||
Other notes payable | Maximum | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Effective interest rate | 0.74% | |||||||||||||
Promissory Note Due in December 2019 | Other notes payable | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Partnership debt | $ 3,676,000 | |||||||||||||
Terms of promissory note issued | 3 years | |||||||||||||
Promissory Note Due In December 2018 | Other notes payable | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Partnership debt | $ 3,676,000 | |||||||||||||
Terms of promissory note issued | 3 years | |||||||||||||
Promissory Note Due In October 2017 | Other notes payable | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Partnership debt | $ 3,676,000 | |||||||||||||
Terms of promissory note issued | 3 years | |||||||||||||
Revolving Credit Facility | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Repayment of long-term debt | $ 52,500,000 | |||||||||||||
Carrying value of long-term debt | $ 0 | $ 52,500,000 | ||||||||||||
Revolving Credit Facility | $75M Revolving Credit Agreement | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Maturity date | Apr. 28, 2019 | |||||||||||||
Line of credit facility, maximum borrowing capacity | 75,000,000 | |||||||||||||
Undrawn borrowing capacity | $ 66,368,000 | |||||||||||||
Restriction to distribution of quarterly distributable cash flow | 50.00% | |||||||||||||
Restrictive covenant, maximum capital expenditures | $ 28,000,000 | |||||||||||||
Revolving Credit Facility | $75M Revolving Credit Agreement | Eurodollar | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Interest rate basis points of credit facility | 4.50% | |||||||||||||
Letter of Credit | $75M Revolving Credit Agreement | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 25,000,000 | |||||||||||||
Swing line loan | $75M Revolving Credit Agreement | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Line of credit facility, maximum borrowing capacity | 10,000,000 | |||||||||||||
Term Loan Credit Facility | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 200,000,000 | |||||||||||||
Term Loan Credit Facility | $200M Term Loan Credit Facility | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Maturity date | Apr. 28, 2021 | |||||||||||||
Line of credit facility, maximum borrowing capacity | $ 200,000,000 | |||||||||||||
Line of credit facility, increase in commitment amount | $ 100,000,000 | |||||||||||||
Partnership debt | 189,715,000 | |||||||||||||
Carrying value of long-term debt | 194,500,000 | 196,500,000 | ||||||||||||
Debt instrument, discount | 1,247,000 | 1,529,000 | ||||||||||||
Unamortized debt issuance costs in long-term debt | $ 3,538,000 | $ 4,354,000 | ||||||||||||
Interest rate under Term Loan Credit Facility | 4.75% | |||||||||||||
Term Loan Credit Facility | $200M Term Loan Credit Facility | Base Rate | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Interest rate basis points of credit facility | 2.75% | |||||||||||||
Term Loan Credit Facility | $200M Term Loan Credit Facility | LIBOR Rate | Minimum | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Interest rate basis points of credit facility | 1.00% | |||||||||||||
Term Loan Credit Facility | $200M Term Loan Credit Facility | Eurodollar | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Interest rate basis points of credit facility | 3.75% | |||||||||||||
Forecast | Revolving Credit Facility | $75M Revolving Credit Agreement | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Maximum leverage ratio | 5 | 4.5 | 4 | 3.5 | ||||||||||
Minimum interest coverage ratio | 2.5 | |||||||||||||
Forecast | Revolving Credit Facility | $75M Revolving Credit Agreement | Base Rate | Minimum | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Interest rate basis points of credit facility | 1.25% | |||||||||||||
Forecast | Revolving Credit Facility | $75M Revolving Credit Agreement | Base Rate | Maximum | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Interest rate basis points of credit facility | 2.50% | |||||||||||||
Forecast | Revolving Credit Facility | $75M Revolving Credit Agreement | Eurodollar | Minimum | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Interest rate basis points of credit facility | 2.25% | |||||||||||||
Forecast | Revolving Credit Facility | $75M Revolving Credit Agreement | Eurodollar | Maximum | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Interest rate basis points of credit facility | 3.50% | |||||||||||||
[1] | Financial information has been recast to include the financial position and results attributable to Hi-Crush Blair LLC. | |||||||||||||
[2] | Financial information has been recast to include the financial position and results attributable to Hi-Crush Augusta LLC. |
Long-Term Debt - Schedule of Ma
Long-Term Debt - Schedule of Maturities of Long-term Debt (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Debt Disclosure [Abstract] | |
2,017 | $ 2,962 |
2,018 | 4,067 |
2,019 | 5,676 |
2,020 | 2,000 |
2,021 | 186,500 |
Partnership debt | $ 201,205 |
Asset Retirement Obligations -
Asset Retirement Obligations - Reconciliation of Total Reclamation Liability (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||||
Asset retirement obligations at beginning of period | $ 7,066 | $ 6,730 | $ 4,627 | ||
Additions to liabilities | 373 | 1,857 | |||
Accretion expense | 369 | 336 | [1] | 246 | [1],[2] |
Asset retirement obligations at end of period | $ 7,808 | $ 7,066 | $ 6,730 | ||
[1] | Financial information has been recast to include the financial position and results attributable to Hi-Crush Blair LLC. | ||||
[2] | Financial information has been recast to include the financial position and results attributable to Hi-Crush Augusta LLC. |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) | 12 Months Ended | |||||||
Dec. 31, 2016USD ($)arailcar | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Feb. 16, 2015 | Jan. 15, 2015 | Feb. 07, 2012 | |||
Long-term Purchase Commitment [Line Items] | ||||||||
Payments for non-delivery of minimum annual sand volumes | $ 0 | |||||||
Payments to fund PropX | 10,232,000 | $ 0 | [1] | $ 0 | [1],[2] | |||
Royalty expense | 5,735,000 | 10,311,000 | 14,583,000 | |||||
Synthetic mineral rights acquired | $ 465,995,000 | 430,666,000 | ||||||
Number of properties under property value guaranty | 11 | 31 | 24 | |||||
Property value guarantees, sale period threshold | 180 days | |||||||
Property value guaranty purchases | $ 380,000 | |||||||
Rail car rental expense | $ 28,597,000 | $ 22,027,000 | $ 10,438,000 | |||||
Expected number of additional leased railcars | railcar | 700 | |||||||
Reduced annual minimum operating lease payments | $ 1,300,000 | |||||||
Proppant Express Investments, LLC | ||||||||
Long-term Purchase Commitment [Line Items] | ||||||||
Lease expense, related party | $ 124,000 | |||||||
Bridge Creek Mining Agreement | ||||||||
Long-term Purchase Commitment [Line Items] | ||||||||
Property value guarantees, number of acres threshold | a | 10 | |||||||
Springfield and Preston Land Use Agreements | ||||||||
Long-term Purchase Commitment [Line Items] | ||||||||
Property value guarantees, number of acres threshold | a | 20 | |||||||
Mining Properties and Mineral Rights | ||||||||
Long-term Purchase Commitment [Line Items] | ||||||||
Total amount to terminate royalty agreements | $ 6,750,000 | |||||||
First payment to acquire mineral rights | 3,375,000 | |||||||
Synthetic mineral rights acquired | 6,750,000 | |||||||
Proppant Express Investments, LLC | ||||||||
Long-term Purchase Commitment [Line Items] | ||||||||
Maximum amount committed to equity method investment | $ 17,400,000 | |||||||
Maximum term to provide additional funds to equity method investment | 18 months | |||||||
Payments to fund PropX | $ 10,232,000 | |||||||
Minimum | ||||||||
Long-term Purchase Commitment [Line Items] | ||||||||
Initial term of contracted minimum sand volumes | 3 years | |||||||
Maximum | ||||||||
Long-term Purchase Commitment [Line Items] | ||||||||
Initial term of contracted minimum sand volumes | 6 years | |||||||
[1] | Financial information has been recast to include the financial position and results attributable to Hi-Crush Blair LLC. | |||||||
[2] | Financial information has been recast to include the financial position and results attributable to Hi-Crush Augusta LLC. |
Commitments and Contingencies59
Commitments and Contingencies - Schedule of Contractual Obligations (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,017 | $ 27,706 |
2,018 | 27,586 |
2,019 | 30,133 |
2,020 | 27,520 |
2,021 | 22,682 |
Thereafter | 36,996 |
Operating leases | 172,623 |
Contractual Obligation, Fiscal Year Maturity Schedule [Abstract] | |
2,017 | 1,576 |
2,018 | 1,576 |
2,019 | 1,866 |
2,020 | 2,296 |
2,021 | 2,296 |
Thereafter | 4,168 |
Minimum purchase commitments | $ 13,778 |
Equity - Narrative (Details)
Equity - Narrative (Details) - USD ($) | Jan. 04, 2017 | Aug. 31, 2016 | Aug. 15, 2014 | Apr. 28, 2014 | Jan. 31, 2013 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | [3] | Dec. 31, 2015 | Sep. 30, 2015 | [4] | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Class of Stock [Line Items] | |||||||||||||||||||||
Limited partners interest, units outstanding (in units) | 63,668,244 | 36,959,970 | 63,668,244 | 36,959,970 | |||||||||||||||||
Number of common units issued (in units) | 19,550,000 | 4,325,000 | |||||||||||||||||||
Proceeds from equity issuances, net | $ 189,037,000 | $ 0 | [1] | $ 170,693,000 | [1],[2] | ||||||||||||||||
Payments to acquire business | $ 75,000,000 | 0 | [1] | 224,250,000 | [1],[2] | ||||||||||||||||
Target incentive distribution levels per unit, per quarter (usd per unit) | $ 0.54625 | ||||||||||||||||||||
Incentive cash distributions to General Partner | 100.00% | ||||||||||||||||||||
Net income allocated to holders of incentive distribution rights | $ (7,255,000) | $ (10,767,000) | $ (10,758,000) | $ (52,353,000) | $ 10,620,000 | [4] | $ (18,662,000) | $ 10,357,000 | $ 23,476,000 | $ (81,133,000) | 25,791,000 | [1] | 123,920,000 | [1],[2] | |||||||
Quarterly distributions declared to common unitholders | $ 0 | ||||||||||||||||||||
Potentially dilutive awards granted and outstanding excluded from diluted earnings per unit calculation (in units) | 579,781 | ||||||||||||||||||||
Expense paid by Member on behalf of Hi-Crush Blair LLC | $ 1,652,000 | 2,787,000 | [1] | 182,000 | [1],[2] | ||||||||||||||||
Limited Partner | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Net income allocated to holders of incentive distribution rights | (81,034,000) | 23,024,000 | [1] | 122,102,000 | [1],[2] | ||||||||||||||||
Quarterly distributions declared to common unitholders | 0 | ||||||||||||||||||||
General Partner and IDRs | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Net income allocated to holders of incentive distribution rights | $ 0 | 2,622,000 | $ 863,000 | ||||||||||||||||||
Minimum | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Incentive distribution rights, distribution levels in percentage | 15.00% | ||||||||||||||||||||
Maximum | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Incentive distribution rights, distribution levels in percentage | 50.00% | ||||||||||||||||||||
Class B Units | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Class B units converted into common units (in units) | 3,750,000 | 3,750,000 | |||||||||||||||||||
Hi-Crush Augusta LLC | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Payments to acquire business | $ 224,250,000 | $ 37,500,000 | |||||||||||||||||||
Number of preferred equity units acquired | 390,000 | ||||||||||||||||||||
Management fees paid | $ 492,000 | ||||||||||||||||||||
Hi-Crush Augusta LLC | Class B Units | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Issued convertible Class B units (in units) | 3,750,000 | ||||||||||||||||||||
Hi-Crush Augusta LLC | Preferred Units | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Number of preferred equity units acquired | 100,000 | ||||||||||||||||||||
Hi-Crush Blair LLC | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Payments to acquire business | $ 75,000,000 | ||||||||||||||||||||
Expense paid by Member on behalf of Hi-Crush Blair LLC | $ 1,652,000 | $ 2,787,000 | $ 182,000 | ||||||||||||||||||
Subsequent Event | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Common unit aggregate offering price, maximum amount | $ 50,000,000 | ||||||||||||||||||||
Sponsor Owned Common Units | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Limited partners interest, units outstanding (in units) | 20,693,643 | 20,693,643 | |||||||||||||||||||
Ownership interest in Partnership | 32.50% | ||||||||||||||||||||
[1] | Financial information has been recast to include the financial position and results attributable to Hi-Crush Blair LLC. | ||||||||||||||||||||
[2] | Financial information has been recast to include the financial position and results attributable to Hi-Crush Augusta LLC. | ||||||||||||||||||||
[3] | The first quarter of 2016 includes a $33,745 impairment of goodwill. Refer to Note 14 for additional disclosure. | ||||||||||||||||||||
[4] | The third and fourth quarters of 2015 include impairments and other expenses of $23,718 and $1,941, respectively. Refer to Note 14 for additional disclosure. The fourth quarter of 2015 includes a gain of $12,310 on a contract settlement payment. |
Equity - Distributions (Details
Equity - Distributions (Details) - USD ($) $ / shares in Units, $ in Thousands | Aug. 14, 2015 | Aug. 05, 2015 | Jul. 21, 2015 | May 15, 2015 | May 01, 2015 | Apr. 16, 2015 | Feb. 13, 2015 | Jan. 30, 2015 | Jan. 15, 2015 | Nov. 14, 2014 | Oct. 31, 2014 | Oct. 15, 2014 | Aug. 15, 2014 | Aug. 01, 2014 | Jul. 16, 2014 | May 15, 2014 | May 01, 2014 | Apr. 16, 2014 | Feb. 14, 2014 | Jan. 31, 2014 | Jan. 15, 2014 | Dec. 31, 2016 |
Distribution Made to Limited Partner [Line Items] | ||||||||||||||||||||||
Declaration Date | Jul. 21, 2015 | Apr. 16, 2015 | Jan. 15, 2015 | Oct. 15, 2014 | Jul. 16, 2014 | Apr. 16, 2014 | Jan. 15, 2014 | |||||||||||||||
Record Date | Aug. 5, 2015 | May 1, 2015 | Jan. 30, 2015 | Oct. 31, 2014 | Aug. 1, 2014 | May 1, 2014 | Jan. 31, 2014 | |||||||||||||||
Payment Date | Aug. 14, 2015 | May 15, 2015 | Feb. 13, 2015 | Nov. 14, 2014 | Aug. 15, 2014 | May 15, 2014 | Feb. 14, 2014 | |||||||||||||||
General Partner and IDRs | ||||||||||||||||||||||
Distribution Made to Limited Partner [Line Items] | ||||||||||||||||||||||
Payment to Holders of Incentive Distribution Rights | $ 0 | $ 1,311 | $ 1,311 | $ 695 | $ 168 | $ 0 | ||||||||||||||||
Limited Partner | ||||||||||||||||||||||
Distribution Made to Limited Partner [Line Items] | ||||||||||||||||||||||
Amount Declared Per Unit (usd per unit) | $ 0.475 | $ 0.675 | $ 0.6750 | $ 0.6250 | $ 0.5750 | $ 0.5250 | $ 0.51 | |||||||||||||||
Payment to Limited Partner Units | $ 17,555 | $ 24,947 | $ 24,947 | $ 23,092 | $ 19,088 | $ 17,388 | $ 14,726 | |||||||||||||||
Payment to Holders of Incentive Distribution Rights | $ 0 | $ 0 |
Equity - Weighted Average Limit
Equity - Weighted Average Limited Partner Units Outstanding (Details) - Common Units - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Weighted average limited partner units outstanding, basic | 49,567,268 | 36,958,988 | 33,370,020 |
Weighted average limited partner units outstanding, diluted | 49,567,268 | 37,150,878 | 35,783,540 |
Equity - Schedule of Net Income
Equity - Schedule of Net Income Attributable to Limited Partners (Details) - USD ($) $ / shares in Units, $ in Thousands | Aug. 14, 2015 | May 15, 2015 | Feb. 13, 2015 | Nov. 14, 2014 | Aug. 15, 2014 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | [1] | Dec. 31, 2015 | [2] | Sep. 30, 2015 | [2] | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | [3] | Dec. 31, 2014 | [3],[4] |
Distribution Made to Limited Partner [Line Items] | |||||||||||||||||||||
Declared distributions to Limited Partner | $ 0 | ||||||||||||||||||||
Assumed allocation of distributions in excess of loss | (81,034) | ||||||||||||||||||||
Assumed allocation of net loss to Limited Partners | $ (81,313) | ||||||||||||||||||||
Earnings (loss) per limited partner unit - basic (usd per unit) | $ (0.11) | $ (0.21) | $ (0.26) | $ (1.39) | $ 0.30 | $ (0.49) | $ 0.31 | $ 0.61 | $ (1.64) | $ 0.73 | $ 3.09 | ||||||||||
Earnings (loss) per limited partner unit - diluted (usd per unit) | $ (1.64) | $ 0.73 | $ 3 | ||||||||||||||||||
Hi-Crush Blair LLC | |||||||||||||||||||||
Distribution Made to Limited Partner [Line Items] | |||||||||||||||||||||
Add back recast income attributable to Blair through August 31, 2016 | $ (279) | ||||||||||||||||||||
Common Units | |||||||||||||||||||||
Distribution Made to Limited Partner [Line Items] | |||||||||||||||||||||
Declared distributions to Limited Partner | 0 | ||||||||||||||||||||
Assumed allocation of distributions in excess of loss | (81,034) | ||||||||||||||||||||
Assumed allocation of net loss to Limited Partners | (81,313) | ||||||||||||||||||||
Common Units | Hi-Crush Blair LLC | |||||||||||||||||||||
Distribution Made to Limited Partner [Line Items] | |||||||||||||||||||||
Add back recast income attributable to Blair through August 31, 2016 | (279) | ||||||||||||||||||||
General Partner and IDRs | |||||||||||||||||||||
Distribution Made to Limited Partner [Line Items] | |||||||||||||||||||||
Distributions made to holders of incentive distribution rights | $ 0 | $ 1,311 | $ 1,311 | $ 695 | $ 168 | 0 | |||||||||||||||
Assumed allocation of distributions in excess of loss | 0 | ||||||||||||||||||||
Assumed allocation of net loss to General Partner and IDRs | $ 0 | ||||||||||||||||||||
[1] | The first quarter of 2016 includes a $33,745 impairment of goodwill. Refer to Note 14 for additional disclosure. | ||||||||||||||||||||
[2] | The third and fourth quarters of 2015 include impairments and other expenses of $23,718 and $1,941, respectively. Refer to Note 14 for additional disclosure. The fourth quarter of 2015 includes a gain of $12,310 on a contract settlement payment. | ||||||||||||||||||||
[3] | Financial information has been recast to include the financial position and results attributable to Hi-Crush Blair LLC. | ||||||||||||||||||||
[4] | Financial information has been recast to include the financial position and results attributable to Hi-Crush Augusta LLC. |
Unit-Based Compensation - Narra
Unit-Based Compensation - Narrative (Details) - USD ($) | Jan. 09, 2017 | Jan. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Feb. 10, 2017 | Aug. 21, 2012 |
Common Units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 2 years | ||||||
Number of common units issued in period | 7,022 | ||||||
Common Units | Directors | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of common units issued in period | 103,377 | 6,344 | 5,532 | ||||
Common Units | Subsequent Event | Directors | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of common units issued in period | 29,148 | ||||||
Unit Purchase Program | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Maximum employee contributions, as percentage of eligible compensation | 35.00% | ||||||
Unit Purchase Program purchase date | Feb. 28, 2017 | ||||||
Percentage of closing market price, common units, minimum threshold percentage trigger for contribution | 90.00% | ||||||
Maximum number of issuable common units per employee (in units) | 20,000 | ||||||
Unit Purchase Program | Directors | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Maximum director cash contribution in aggregate | $ 150,000 | ||||||
Accumulated contributions to Unit Purchase Program from directors | $ 514,000 | ||||||
Unit Purchase Program | Subsequent Event | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of common units committed to be issued (in units) | 300,090 | ||||||
Hi-Crush Partners LP Long Term Incentive Plan | Performance Phantom Units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 3 years | ||||||
Number of common unit of each award | 1 | ||||||
Total compensation expense not yet recognized | $ 2,263,000 | ||||||
Weighted average remaining service period | 1 year 5 months | ||||||
Weighted average grant date fair value (in usd per unit) | $ 15.94 | $ 37.52 | $ 65.57 | ||||
Hi-Crush Partners LP Long Term Incentive Plan | Performance Phantom Units | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 0.00% | ||||||
Hi-Crush Partners LP Long Term Incentive Plan | Performance Phantom Units | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 200.00% | ||||||
Hi-Crush Partners LP Long Term Incentive Plan | Time-Based Phantom Units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of common unit of each award | 1 | ||||||
Total compensation expense not yet recognized | $ 4,224,000 | ||||||
Weighted average remaining service period | 2 years 4 months | ||||||
Weighted average grant date fair value (in usd per unit) | $ 12.96 | $ 34.09 | $ 47.33 | ||||
Fair value of units vested | $ 62,000 | $ 42,000 | |||||
Hi-Crush Partners LP Long Term Incentive Plan | Common Units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Original number of common units authorized under the Plan | 1,364,035 | ||||||
Hi-Crush Partners LP Long Term Incentive Plan | Common Units | Subsequent Event | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Additional common units authorized under the amended Plan | 2,700,000 |
Unit-Based Compensation - Perfo
Unit-Based Compensation - Performance Phantom Units (Details) - Hi-Crush Partners LP Long Term Incentive Plan - Performance Phantom Units - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Performance Phantom Units | |||
Outstanding units at beginning of period | 136,570 | ||
Granted units | 112,345 | ||
Forfeited units | (47,394) | ||
Outstanding units at end of period | 201,521 | 136,570 | |
Grant Date Weighted-Average Fair Value per Unit | |||
Outstanding units at beginning of period (usd per unit) | $ 46.85 | ||
Granted (usd per unit) | 15.94 | $ 37.52 | $ 65.57 |
Forfeited (usd per unit) | 49.34 | ||
Outstanding units at end of period (usd per unit) | $ 29.03 | $ 46.85 |
Unit-Based Compensation - Time-
Unit-Based Compensation - Time-based Phantom Units (Details) - Hi-Crush Partners LP Long Term Incentive Plan - Time-Based Phantom Units - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Time-Based Phantom Units | |||
Outstanding units at beginning of period | 55,320 | ||
Vested units | (1,605) | ||
Granted units | 325,470 | ||
Forfeited units | (925) | ||
Outstanding units at end of period | 378,260 | 55,320 | |
Grant Date Weighted-Average Fair Value per Unit | |||
Outstanding units at beginning of period (usd per unit) | $ 37.63 | ||
Vested (usd per unit) | 38.80 | ||
Granted (usd per unit) | 12.96 | $ 34.09 | $ 47.33 |
Forfeited (usd per unit) | 38.48 | ||
Outstanding units at end of period (usd per unit) | $ 16.40 | $ 37.63 |
Unit-Based Compensation - Total
Unit-Based Compensation - Total Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation expense | $ 2,620 | $ 2,983 | $ 1,470 |
Performance Phantom Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation expense | 634 | 1,973 | 954 |
Time-Based Phantom Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation expense | 1,359 | 724 | 155 |
Director and other unit grants | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation expense | 474 | 273 | 361 |
Unit Purchase Program | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation expense | $ 153 | $ 13 | $ 0 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - USD ($) $ in Thousands | Aug. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | |||||
Due to sponsor | $ 1,100 | $ 106,746 | [1] | ||
Conversion of advances to Hi-Crush Proppants LLC | $ 120,950 | 120,950 | |||
Equity method investment in PropX | 10,232 | 0 | [1] | ||
Proppant Express Investments, LLC | |||||
Related Party Transaction [Line Items] | |||||
Equity method investment in PropX | 10,232 | ||||
Hi-Crush Services LLC | |||||
Related Party Transaction [Line Items] | |||||
Management and administrative services | 4,321 | 4,404 | $ 9,421 | ||
Hi-Crush Whitehall LLC | |||||
Related Party Transaction [Line Items] | |||||
Purchases from related parties | 8,086 | 33,406 | 23,705 | ||
Goose Landing, LLC | |||||
Related Party Transaction [Line Items] | |||||
Purchases from related parties | 0 | $ 2,754 | $ 1,385 | ||
Proppant Express Investments, LLC | |||||
Related Party Transaction [Line Items] | |||||
Purchases from related parties | 1,566 | ||||
Accounts payable, related party | 1,553 | ||||
Lease expense, related party | $ 124 | ||||
[1] | Financial information has been recast to include the financial position and results attributable to Hi-Crush Blair LLC. |
Impairments and Other Expense69
Impairments and Other Expenses - Narrative (Details) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016USD ($)rig | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($)facility | Dec. 31, 2014USD ($) | |
Restructuring and Related Activities [Abstract] | ||||
Number of oil rigs | rig | 362 | |||
Oil rig count as a percentage | 30.00% | |||
Impairment of goodwill | $ 33,745,000 | $ 33,745,000 | $ 0 | $ 0 |
Impairment of intangible assets | 0 | 18,606,000 | 0 | |
Property, Plant and Equipment [Line Items] | ||||
Impairment of idled administrative and transload facilities | 0 | 6,186,000 | 0 | |
Severance, retention and relocation | $ 280,000 | $ 571,000 | $ 0 | |
Transload facilities and equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Number of idled facilities | facility | 5 | |||
Rail and rail equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Number of idled facilities | facility | 3 |
Impairments and Other Expense70
Impairments and Other Expenses - Components of Impairments and Other Expenses (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Restructuring and Related Activities [Abstract] | ||||||||
Impairment of Goodwill | $ 33,745,000 | $ 33,745,000 | $ 0 | $ 0 | ||||
Impairment of Sand Supply Agreement | 0 | 18,606,000 | 0 | |||||
Impairment of idled administrative and transload facilities | 0 | 6,186,000 | 0 | |||||
Severance, retention and relocation | 280,000 | 571,000 | 0 | |||||
Abandonment of construction projects | 0 | 256,000 | 0 | |||||
Expiration of exclusivity agreements | 0 | 40,000 | 0 | |||||
Impairments and other expenses | $ 1,941,000 | $ 23,718,000 | $ 34,025,000 | $ 25,659,000 | [1] | $ 0 | [1],[2] | |
[1] | Financial information has been recast to include the financial position and results attributable to Hi-Crush Blair LLC. | |||||||
[2] | Financial information has been recast to include the financial position and results attributable to Hi-Crush Augusta LLC. |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) | 12 Months Ended |
Dec. 31, 2016segment | |
Segment Reporting [Abstract] | |
Number of operating segment | 1 |
Concentration of Credit Risk -
Concentration of Credit Risk - Narrative (Details) - Customer Concentration Risk - customer | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Concentration Risk [Line Items] | |||
Number of customers | 4 | 4 | 3 |
Sales Revenue, Net | |||
Concentration Risk [Line Items] | |||
Percentage of revenue accounted by customers | 78.00% | 68.00% | 64.00% |
Quarterly Financial Data (Una73
Quarterly Financial Data (Unaudited) - Summary of Quarterly Financial Data (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Revenues | $ 67,297,000 | $ 46,556,000 | $ 38,429,000 | $ 52,148,000 | [1] | $ 72,077,000 | [2] | $ 81,494,000 | [2] | $ 83,958,000 | $ 102,111,000 | $ 204,430,000 | $ 339,640,000 | [3] | $ 386,547,000 | [3],[4] |
Gross profit (loss) | 699,000 | 216,000 | (539,000) | (576,000) | [1] | 9,443,000 | [2] | 15,094,000 | [2] | 20,260,000 | 33,472,000 | (200,000) | 78,269,000 | [3] | 160,563,000 | [3],[4] |
Income (loss) from operations | (4,312,000) | (7,922,000) | (6,786,000) | (48,772,000) | [1] | 14,784,000 | [2] | (15,224,000) | [2] | 13,341,000 | 26,793,000 | (67,792,000) | 39,694,000 | [3] | 133,866,000 | [3],[4] |
Net income (loss) | $ (7,255,000) | $ (10,767,000) | $ (10,758,000) | $ (52,353,000) | [1] | $ 10,620,000 | [2] | $ (18,662,000) | [2] | $ 10,357,000 | $ 23,476,000 | $ (81,133,000) | $ 25,791,000 | [3] | $ 123,920,000 | [3],[4] |
Earnings (loss) per limited partner unit - basic (usd per unit) | $ (0.11) | $ (0.21) | $ (0.26) | $ (1.39) | [1] | $ 0.30 | [2] | $ (0.49) | [2] | $ 0.31 | $ 0.61 | $ (1.64) | $ 0.73 | [3] | $ 3.09 | [3],[4] |
Impairment of goodwill | $ 33,745,000 | $ 33,745,000 | $ 0 | $ 0 | ||||||||||||
Impairments and other expenses | $ 1,941,000 | $ 23,718,000 | 34,025,000 | 25,659,000 | [3] | 0 | [3],[4] | |||||||||
Other operating income | $ 12,310,000 | $ 0 | $ 12,310,000 | [3] | $ 0 | [3],[4] | ||||||||||
[1] | The first quarter of 2016 includes a $33,745 impairment of goodwill. Refer to Note 14 for additional disclosure. | |||||||||||||||
[2] | The third and fourth quarters of 2015 include impairments and other expenses of $23,718 and $1,941, respectively. Refer to Note 14 for additional disclosure. The fourth quarter of 2015 includes a gain of $12,310 on a contract settlement payment. | |||||||||||||||
[3] | Financial information has been recast to include the financial position and results attributable to Hi-Crush Blair LLC. | |||||||||||||||
[4] | Financial information has been recast to include the financial position and results attributable to Hi-Crush Augusta LLC. |
Schedule II - Valuation and Q74
Schedule II - Valuation and Qualifying Accounts - (Details) - Allowance for doubtful accounts - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Allowance for doubtful accounts, beginning balance | $ 663 | $ 984 | $ 300 |
Charged to costs and expenses | 8,236 | 101 | 750 |
Deductions | (7,350) | (422) | (66) |
Allowance for doubtful accounts, ending balance | $ 1,549 | $ 663 | $ 984 |