Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 14, 2020 | Jun. 30, 2019 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-35630 | ||
Entity Registrant Name | Hi-Crush Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 90-0840530 | ||
Entity Address, Address Line One | 1330 Post Oak Blvd | ||
Entity Address, Address Line Two | Suite 600 | ||
Entity Address, City or Town | Houston | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 77056 | ||
City Area Code | 713 | ||
Local Phone Number | 980-6200 | ||
Title of 12(b) Security | Common stock, par value $0.01 per share | ||
Trading Symbol | HCR | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 234,862,084 | ||
Entity Common Stock, Shares Outstanding | 100,870,221 | ||
Entity Central Index Key | 0001549848 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash | $ 57,559 | $ 114,256 |
Accounts receivable, net | 71,824 | 101,029 |
Inventories | 39,974 | 57,089 |
Prepaid expenses and other current assets | 9,818 | 13,239 |
Total current assets | 179,175 | 285,613 |
Property, plant and equipment, net | 810,906 | 1,031,188 |
Operating lease right-of-use assets | 44,086 | |
Goodwill and intangible assets, net | 38,141 | 71,575 |
Equity method investments | 37,173 | 37,354 |
Other assets | 1,656 | 8,108 |
Total assets | 1,111,137 | 1,433,838 |
Current liabilities: | ||
Accounts payable | 40,592 | 71,039 |
Accrued and other current liabilities | 42,818 | 61,337 |
Current portion of deferred revenues | 10,598 | 19,940 |
Current portion of long-term debt | 2,628 | 2,194 |
Current portion of operating lease liabilities | 30,191 | |
Total current liabilities | 126,827 | 154,510 |
Deferred revenues | 15,430 | 9,845 |
Long-term debt | 445,339 | 443,283 |
Operating lease liabilities | 79,924 | |
Asset retirement obligations | 10,964 | 10,677 |
Deferred tax liabilities | 29,997 | 0 |
Other liabilities | 1,532 | 8,276 |
Total liabilities | 710,013 | 626,591 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Limited partners interest, 100,874,988 units issued and outstanding at December 31, 2018 | 0 | 811,477 |
Preferred stock, $0.01 par value, 100,000,000 shares authorized; zero issued and outstanding at December 31, 2019 | 0 | |
Common stock, $0.01 par value, 500,000,000 shares authorized; 100,711,015 issued and outstanding at December 31, 2019 | 1,007 | |
Additional paid-in-capital | 804,218 | |
Retained deficit | (403,401) | |
Accumulated other comprehensive loss | (700) | (4,230) |
Total stockholders' equity | 401,124 | 807,247 |
Total liabilities and stockholders' equity | $ 1,111,137 | $ 1,433,838 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value per share (in usd per share) | $ 0.01 | |
Preferred stock, shares authorized (shares) | 100,000,000 | |
Preferred stock, shares issued | 0 | |
Preferred stock, shares outstanding | 0 | |
Common stock, par value per share (in usd per share) | $ 0.01 | |
Common stock, shares authorized (shares) | 500,000,000 | |
Common stock, shares, issued | 100,711,015 | |
Common stock, shares outstanding (in shares) | 100,711,015 | |
Limited partners interest, units outstanding | 0 | 100,874,988 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Income Statement [Abstract] | ||||
Revenues | $ 636,370 | $ 842,840 | $ 602,623 | [1] |
Cost of goods sold (excluding depreciation, depletion and amortization) | 521,746 | 577,974 | 438,348 | [1] |
Depreciation, depletion and amortization | 51,316 | 38,284 | 29,449 | [1] |
Gross profit | 63,308 | 226,582 | 134,826 | [1] |
Operating costs and expenses: | ||||
General and administrative expenses | 51,584 | 55,032 | 41,471 | [1] |
Depreciation and amortization | 6,755 | 3,865 | 2,104 | [1] |
Accretion of asset retirement obligations | 494 | 498 | 458 | [1] |
Asset impairments | 357,494 | 0 | 0 | [1] |
Change in estimated fair value of contingent consideration | (8,027) | 0 | 0 | [1] |
Other operating (income) expenses, net | 1,793 | 3,196 | (2,597) | [1] |
Income (loss) from operations | (346,785) | 163,991 | 93,390 | [1] |
Other income (expense): | ||||
Earnings from equity method investments | 6,013 | 5,184 | 75 | [1] |
Gain on remeasurement of equity method investment | 3,612 | 0 | 0 | [1] |
Interest expense | (45,774) | (25,347) | (12,971) | [1] |
Loss on extinguishment of debt | 0 | (6,233) | (4,332) | [1] |
Income (loss) before income tax | (382,934) | 137,595 | 76,162 | [1] |
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest [Abstract] | ||||
Current tax expense | 1,057 | 0 | 0 | [1] |
Deferred tax benefit | (85,920) | 0 | 0 | [1] |
Deferred tax resulting from conversion to a corporation | 115,488 | 0 | 0 | [1] |
Income tax expense (benefit) | 30,625 | 0 | 0 | [1] |
Net income (loss) | $ (413,559) | $ 137,595 | $ 76,162 | [1] |
Earnings (loss) per common share: | ||||
Earnings (loss) per share - basic (usd per share) | $ (4.10) | $ 1.46 | $ 0.97 | [1] |
Earnings (loss) per share - diluted (usd per share) | $ (4.10) | $ 1.42 | $ 0.96 | [1] |
Weighted average number of shares outstanding, basic (in shares) | 100,974,770 | 91,248,042 | 86,518,249 | |
Weighted average number of shares outstanding, diluted (in shares) | 100,974,770 | 93,638,180 | 87,900,982 | |
[1] | Financial information has been recast to include the results attributable to the sponsor and general partner. See Note 3 . |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | [1] | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (413,559) | $ 137,595 | $ 76,162 | |
Foreign currency translation adjustment | 3,530 | (4,230) | 0 | |
Comprehensive income (loss) | $ (410,029) | $ 133,365 | $ 76,162 | |
[1] | Financial information has been recast to include the results attributable to the sponsor and general partner. See Note 3 . |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Operating activities: | |||||
Net income (loss) | $ (413,559) | $ 137,595 | $ 76,162 | [1] | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||
Depreciation, depletion and amortization | 58,071 | 42,149 | 31,553 | [1] | |
Deferred income taxes | 29,568 | 0 | 0 | [1] | |
Stock-based compensation to directors and employees | 4,626 | 7,439 | 5,714 | [1] | |
Amortization of loan origination costs into interest expense | 1,631 | 1,164 | 2,022 | [1] | |
Accretion of asset retirement obligations | 494 | 498 | 458 | [1] | |
Asset impairments | 357,494 | 0 | 0 | [1] | |
Accrued interest converted to debt | 0 | 0 | 528 | [1] | |
(Gain) loss on disposal of property, plant and equipment | (68) | 369 | 92 | [1] | |
Amortization of right-of-use assets | 893 | 0 | 0 | [1] | |
Change in estimated fair value of contingent consideration | (8,027) | 0 | 0 | [1] | |
Earnings from equity method investments | (6,013) | (5,184) | (75) | [1] | |
Gain on remeasurement of equity method investment | (3,612) | 0 | 0 | [1] | |
Loss on extinguishment of debt | 0 | 6,233 | 4,332 | [1] | |
Changes in operating assets and liabilities: | |||||
Accounts receivable | 36,183 | 41,237 | (86,652) | [1] | |
Inventories | 10,204 | 1,556 | (14,529) | [1] | |
Prepaid expenses and other current assets | 2,268 | (6,670) | (542) | [1] | |
Accounts payable and accrued liabilities | (32,848) | 5,873 | 51,070 | [1] | |
Other noncurrent assets and liabilities | (7,427) | 5,044 | 13,842 | [1] | |
Net cash provided by operating activities | 29,878 | 237,303 | 83,975 | [1] | |
Investing activities: | |||||
Capital expenditures for property, plant and equipment | (71,696) | (141,546) | (122,246) | [1] | |
Proceeds from sale of property, plant and equipment | 1,764 | 3,064 | 8 | [1] | |
Business acquisitions, net of cash acquired | (4,229) | (34,960) | 0 | [1] | |
Asset acquisition | 0 | 0 | (200,830) | [1] | |
Equity method investments | (495) | (14,695) | (7,168) | [1] | |
Restricted cash, net | 0 | 0 | 5,116 | [1] | |
Net cash used in investing activities | (74,656) | (188,137) | (325,120) | [1] | |
Financing activities: | |||||
Proceeds from equity issuances, net | 0 | 0 | 412,577 | [1] | |
Proceeds from issuance of long-term debt | 0 | 450,000 | 198,000 | [1] | |
Repayment of long-term debt | (4,288) | (203,378) | (259,791) | [1] | |
Repayment of acquired credit facility | (3,237) | 0 | 0 | [1] | |
Proceeds from insurance premium notes | 4,277 | 4,153 | 3,156 | [1] | |
Repayment of premium financing notes | (4,222) | (3,836) | (2,713) | [1] | |
Payments on financing lease liabilities | (329) | 0 | 0 | [1] | |
Refund (payment) of loan origination costs | 146 | ||||
Refund (payment) of loan origination costs | (12,067) | (4,731) | [1] | ||
Contributions (withdrawals) from unit purchase program participants | 0 | (438) | 438 | [1] | |
Repurchase of common stock | (3,400) | (9,426) | (20,000) | [1] | |
Common stock tendered for tax withholding obligations | (21) | (70) | 0 | [1] | |
Payment of accrued distribution equivalent rights | (860) | (410) | (39) | [1] | |
Distributions paid to members of Hi-Crush Proppants LLC | 0 | (39,516) | (69,215) | [1] | |
Distributions paid to limited partner unitholders | 0 | (127,645) | (13,656) | [1] | |
Net cash provided by (used in) financing activities | (11,934) | 57,367 | 244,026 | [1] | |
Effects of exchange rate on cash | 15 | (1) | 0 | [1] | |
Net increase (decrease) in cash | (56,697) | 106,532 | 2,881 | [1] | |
Cash at beginning of period | 114,256 | 7,724 | [1] | 4,843 | [1] |
Cash at end of period | 57,559 | 114,256 | 7,724 | [1] | |
Non-cash investing and financing activities: | |||||
Increase (decrease) in accounts payable and accrued liabilities for additions to property, plant and equipment | (24,270) | 26,333 | 2,253 | [1] | |
Increase (decrease) in property, plant and equipment for asset retirement obligations | (207) | 0 | 207 | ||
Debt financed capital expenditures | 5,487 | 3,676 | 0 | [1] | |
Change in original fair value of contingent consideration | 276 | 8,147 | 0 | [1] | |
Issuance of common units for acquisitions | 2,504 | 19,190 | 62,242 | [1] | |
Issuance of common units under unit purchase programs | 0 | 0 | 1,576 | [1] | |
Increase (decrease) in accrued distribution equivalent rights | (197) | 1,860 | 45 | [1] | |
Cash paid for: | |||||
Interest, net of capitalized interest | 44,419 | 6,224 | 10,950 | [1] | |
Income taxes, net | $ 558 | $ 0 | $ 0 | [1] | |
[1] | Financial information has been recast to include the results attributable to the sponsor and general partner. See Note 3 . |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Limited Partner Capital | Noncontrolling Interest | Accumulated Other Comprehensive Income (Loss) | Common Stock | Additional Paid-in Capital | Retained Earnings (Deficit) | Accumulated Other Comprehensive Income (Loss) | |
Partners' Capital, beginning balance at Dec. 31, 2016 | $ 370,346 | $ 439,418 | $ (69,072) | ||||||
Increase (Decrease) in Partners' Capital | |||||||||
Issuance of common units, net | 412,577 | 412,577 | |||||||
Issuance of common units for asset acquisition | 62,242 | 62,242 | |||||||
Issuance of common units to directors and employees | $ 2,144 | 2,144 | |||||||
Repurchase of common stock (in shares) | (2,030,163) | ||||||||
Repurchase of common stock | $ (20,000) | (20,000) | |||||||
Stock-based compensation expense | 5,215 | 5,215 | |||||||
Distribution of common units to members of Hi-Crush Proppants LLC | (275,225) | (275,225) | |||||||
Distributions to members of Hi-Crush Proppants LLC | (69,215) | (69,215) | |||||||
Distributions, including distribution equivalent rights | (13,701) | (13,701) | |||||||
Net income (loss) | 76,162 | [1] | 76,162 | 0 | |||||
Partners' Capital, ending balance at Dec. 31, 2017 | 825,770 | 1,239,282 | (413,512) | ||||||
Increase (Decrease) in Partners' Capital | |||||||||
Issuance of common units to directors and employees | 474 | 474 | |||||||
Issuance of common units for business acquisition | $ 19,190 | 19,190 | |||||||
Repurchase of common stock (in shares) | (753,090) | ||||||||
Repurchase of common stock | $ (9,426) | (9,426) | |||||||
Stock-based compensation expense | $ 6,965 | 6,965 | |||||||
Shares tendered for tax withholding obligations (in shares) | (5,799) | ||||||||
Shares tendered for tax withholding obligations | $ (70) | (70) | |||||||
Distributions to members of Hi-Crush Proppants LLC | (39,516) | (39,516) | |||||||
Distributions, including distribution equivalent rights | (129,505) | (129,505) | |||||||
Acquisition of Hi-Crush Proppants LLC and Hi-Crush GP LLC | 0 | (453,028) | 453,028 | ||||||
Other comprehensive income (loss) | (4,230) | $ (4,230) | |||||||
Net income (loss) | 137,595 | 137,595 | 0 | ||||||
Partners' Capital, ending balance at Dec. 31, 2018 | 807,247 | 811,477 | $ 0 | (4,230) | |||||
Increase (Decrease) in Partners' Capital | |||||||||
Stockholders' Equity, ending balance | 807,247 | ||||||||
Issuance of common units to directors and employees | 246 | 246 | |||||||
Issuance of common units for business acquisition | 2,504 | 2,504 | |||||||
Repurchase of common stock (in shares) | (1,526,384) | ||||||||
Repurchase of common stock | (3,400) | 0 | $ (15) | $ (3,385) | |||||
Stock-based compensation expense | 2,741 | ||||||||
Stock-based compensation expense | 4,376 | 1,635 | |||||||
Shares vested under stock-based compensation plan (in shares) | 454,367 | ||||||||
Shares vested under stock-based compensation plan | 4 | $ 4 | |||||||
Shares tendered for tax withholding obligations (in shares) | (18,340) | ||||||||
Shares tendered for tax withholding obligations | (21) | (21) | |||||||
Forfeiture of distribution equivalent rights | 197 | 94 | 103 | ||||||
Reclassification of equity resulting from conversion to a corporation (in shares) | 101,801,372 | ||||||||
Reclassification of equity resulting from conversion to a corporation | (806,904) | $ 1,018 | 805,886 | ||||||
Other comprehensive income (loss) | 3,530 | $ 3,530 | |||||||
Net income (loss) | $ (413,559) | $ (10,158) | $ (403,401) | ||||||
Common stock, shares outstanding (in shares) | 100,711,015 | 100,711,015 | |||||||
Stockholders' Equity, ending balance | $ 401,124 | $ 1,007 | $ 804,218 | $ (403,401) | $ (700) | ||||
[1] | Financial information has been recast to include the results attributable to the sponsor and general partner. See Note 3 . |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Partners' Capital [Abstract] | |||
Number of common units issued (in units) | 23,575,000 | ||
Number of common units issued for an asset acquisition (in units) | 3,438,789 | ||
Number of common units issued to directors and employees (in units) | 62,184 | 36,109 | 329,238 |
Number of common units issued for a business acquisition (in units) | 695,606 | 1,279,328 | |
Repurchase of common stock (in shares) | 753,090 | 2,030,163 | |
Shares tendered for tax withholding obligations (in shares) | 5,799 | ||
Number of common units distributed to members of Hi-Crush Proppants LLC (in units) | 20,693,643 | ||
Distribution declared per limited partner unit (usd per unit) | $ 1.40 | $ 0.15 |
Business and Organization
Business and Organization | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Organization | Business and Organization Description of Business and Organization Hi-Crush Inc. (together with its subsidiaries, the "Company," "we," "us" or "our") is a fully-integrated provider of proppant and logistics services for hydraulic fracturing operations, offering frac sand production, advanced wellsite storage systems, flexible last mile services, and innovative software for real-time visibility and management across the entire supply chain. Our strategic suite of solutions provides operators and service companies in all major U.S. oil and gas basins with the ability to build safety, reliability and efficiency into every completion. The Company and the chief operating decision maker view the Company’s operations and manage its business as one operating segment. The segment of the Company is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. On May 31, 2019, the Company completed its conversion (the "Conversion") from a Delaware limited partnership named Hi-Crush Partners LP to a Delaware corporation named Hi-Crush Inc. As a result of and at the effective date of the Conversion, each common unit representing limited partnership interests in Hi-Crush Partners LP ("common units") issued and outstanding immediately prior to the Conversion was automatically converted into one share of common stock, par value $0.01 per share, of Hi-Crush Inc. ("common stock"). Because the Conversion became effective on May 31, 2019, the current year through May 31, 2019 and prior period amounts in the accompanying Consolidated Financial Statements as of December 31, 2018 and for the year ended December 31, 2018 and 2017, reflect Hi-Crush as a limited partnership, not a corporation. In this report, references to "Hi-Crush," the "Company," "we," "us" or "our" refer to (i) Hi-Crush Inc. and its subsidiaries for periods following the Conversion and (ii) Hi-Crush Partners LP and its subsidiaries for periods prior to the Conversion, in each case, except where the context otherwise requires. References to common units for periods prior to the Conversion refer to common units of Hi-Crush Partners LP, and references to common stock for periods following the Conversion refer to shares of common stock of Hi-Crush Inc. As a result of the Conversion, the financial impact to the Consolidated Financial Statements contained herein consisted of (i) reclassification of partnership equity accounts to equity accounts reflective of a corporation and (ii) income tax effects. Refer to Note 2 - Significant Accounting Policies and Note 19 - Income Taxes for the income tax effects of the Conversion and refer to Note 13 - Equity for the impact of the Conversion on Hi-Crush's equity. On May 7, 2019, the Company completed the acquisition of Proppant Logistics LLC ("Proppant Logistics"), which owns Pronghorn Logistics, LLC ("Pronghorn"), a provider of end-to-end proppant logistics services. On January 18, 2019, the Company completed the acquisition of BulkTracer Holdings LLC ("BulkTracer"), the owner of a logistics software system, PropDispatch. On October 21, 2018, the Company acquired all of the then outstanding membership interests in our former sponsor, Hi-Crush Proppants LLC (the "sponsor") and the non-economic general partner interest of Hi-Crush GP LLC (the "general partner") in the Company (the "Sponsor Contribution"). In connection with the acquisition, all of the outstanding incentive distribution rights representing limited partnership interests in the Company were canceled and extinguished and the sponsor waived any and all rights to receive contingent consideration payments from the Company or our subsidiaries pursuant to certain previously entered into contribution agreements to which it was a party. On August 1, 2018, the Company completed the acquisition of FB Industries Inc. ("FB Industries"), a company engaged in the engineering, design and marketing of silo-based frac sand management systems. On March 15, 2017, the Company acquired from its sponsor all of the outstanding membership interests in Hi-Crush Whitehall LLC ("Whitehall"), the entity that owned our sponsor’s Whitehall facility, the remaining 2.0% equity interest in Hi-Crush Augusta LLC ("Augusta"), and all of the outstanding membership interests in PDQ Properties LLC (together, the "Other Assets") (the "Whitehall Contribution"). On March 3, 2017, the Company completed an acquisition of Permian Basin Sand Company, LLC ("Permian Basin Sand"). With the acquisition of Permian Basin Sand, we acquired a 1,226 -acre frac sand reserve, located near Kermit, Texas, strategically positioned in the Permian Basin. Refer to Note 3 - Acquisitions for additional disclosure regarding recent acquisitions. Basis of Presentation The accompanying Consolidated Financial Statements ("financial statements") of the Company have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and with the instructions to Form 10-K of Regulation S-X, Article 3 issued by the Securities and Exchange Commission ("SEC"). In the opinion of management, all normal and recurring adjustments and disclosures necessary for a fair statement are reflected in the periods presented. Certain amounts in the prior period financial statements have been reclassified to conform to the presentation of the current period financial statements as it relates to the reclassification of depreciation and amortization separately from general and administrative expenses on the Consolidated Statements of Operations. These reclassifications had no effect on the previously reported results of operations. The Sponsor Contribution and Whitehall Contribution were accounted for as transactions between entities under common control whereby the net assets of the sponsor and general partner, Whitehall and Other Assets were recorded at their historical cost. Therefore, the Company's historical financial information has been recast to combine the sponsor and general partner, Whitehall and Other Assets with the Company as if the combination had been in effect since inception of the common control. Refer to Note 3 - Acquisitions for additional disclosure regarding the Sponsor Contribution and Whitehall Contribution. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Use of Estimates The preparation of the financial statements in conformity with 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 their impact on calculating our depreciation and depletion expense under the units-of-production depreciation method, estimates of fair value for reporting units and asset impairments (including impairments of goodwill and other long-lived assets), estimating potential loss contingencies, inventory valuation, valuation of stock-based compensation, valuation of right-of-use assets (including potential impairments) and lease liabilities, estimated fair value of contingent consideration in the future, the determination of income tax provisions 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, which relate to sales of frac sand, related services and the sale of logistics equipment for which credit is extended based on the customer’s credit history, are recorded at the invoiced amount and do not bear interest. The Company regularly reviews the collectability of accounts receivable. When it is probable that all or part of an outstanding balance will not be collected, the Company establishes or adjusts an allowance as necessary, generally 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 each of December 31, 2019 and 2018 , the Company maintained an allowance for doubtful accounts of $1,060 . Revenues recognized in advance of invoice issuance create assets referred to as "unbilled receivables." Any portion of our unbilled receivables for which our right to consideration is conditional on a factor other than the passage of time is considered a contract asset. Unbilled receivables are presented on a combined basis with accounts receivable and are converted to trade receivables once billed. Debt Issuance Costs 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 $1,631 , $1,164 and $2,022 for the years ended December 31, 2019 , 2018 and 2017 , respectively. Debt issuance costs related to a recognized debt liability are presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. Debt issuance costs associated with a revolving credit facility are maintained in other assets. During 2018, in connection with the private placement of $450,000 aggregate principal amount of its 9.50% senior unsecured notes due 2026 (the "Senior Notes") and a senior secured revolving credit facility (the "ABL Credit Facility"), the Company incurred debt issuance costs of $12,067 that were capitalized. As of December 31, 2019 and 2018 , the Company maintained unamortized debt issuance costs of $8,138 and $9,375 within long-term debt, respectively and $1,412 and $1,953 within other assets, respectively. Refer to Note 10 - Long-Term Debt for additional disclosure on our debt. Inventories Sand inventory is stated at the lower of cost or net realizable value using the average cost method. Inventory manufactured at our production 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 net realizable value. 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. Payments to third parties for silo systems and other equipment manufactured for sale to third parties is included in inventory as work-in-process until completed and ready for delivery to the customer, at which time it is classified as finished goods inventory. Silo systems and equipment for sale to third parties is stated at the lower of cost or net realizable value using the average cost method. 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 on the Consolidated 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: Rail spurs and asset retirement obligations 17-35 years Rail and rail equipment 7-20 years Equipment 5-10 years Computer equipment 3-5 years Furniture and fixtures 7 years Vehicles 5-7 years Transload facilities and equipment 5-25 years Last mile equipment 5-10 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 long-lived assets, including property, plant and equipment is evaluated if events or circumstances indicate the impairment of an asset may exist, based on reporting units, which management has defined as the mine and terminal operations and the logistics and wellsite operations. Estimated future undiscounted net cash flows are calculated using estimates, including but not limited to estimates of proven and probable sand reserves, estimated future sales prices (considering historical and current prices, price trends and related factors), operating costs and anticipated capital expenditures. Reductions in the carrying value of our long-lived assets 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 to which the remaining carrying value of our long-lived assets 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 other long-lived assets. Management’s estimates of future sales prices, recoverable proven and probable reserves, asset utilization and operating and capital costs, among other estimates, are subject to certain risks and uncertainties which may affect the recoverability of our investments in long-lived assets. 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 assets. During 2019, we saw a significant decrease in the price of our common stock resulting in an overall reduction in our market capitalization, and our recorded net book value exceeded our market capitalization. We therefore updated our internal business outlook for the Company to consider the current economic environment that affects our operations. We allocated the enterprise fair value to the reporting units and determined that the fair value of our net assets in the logistics and wellsite operations reporting unit exceeded its carrying value and therefore there was no impairment of long-lived assets in the logistics and wellsite operations reporting unit. Utilizing the allocation of the enterprise fair value to the mine and terminal operations reporting unit, we assessed qualitative factors and determined that we could not conclude that it was more likely than not that the fair value of our net assets exceeded its carrying value. In turn, we prepared a quantitative analysis of the fair value of the mine and terminal operations assets, and determined there was not sufficient undiscounted cash flows to recover the value of the long-lived assets. Upon completion of the valuation exercise, it was determined that there were impairments of certain long-lived assets. Refer to Note 5 - Property, Plant and Equipment and Note 18 - Asset Impairments for additional disclosure regarding long-lived asset impairments. Leases On January 1, 2019, we adopted Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842) using the modified retrospective transition method, utilizing the simplified transition option available, which allows entities to continue to apply the legacy guidance in Topic 840 , Leases , including its disclosure requirements, in the comparative periods presented in the year of adoption. We have elected to apply certain practical expedients, whereby we will not reassess (i) whether any expired or existing contracts are or contain leases, (ii) the lease classification for any expired or existing leases and (iii) initial direct costs for any existing leases. Upon adoption of the new leasing standard on January 1, 2019, we recognized $135,480 of operating lease right-of-use assets, including any lease prepayments made, initial direct costs incurred and excludes lease incentives received, and $127,018 of related operating lease liabilities on the Consolidated Balance Sheet. The impact of adoption of the new leasing standard had no impact to the opening balance of retained earnings on the Consolidated Balance Sheet or to the Consolidated Statements of Operations. At inception of a contract, the Company determines if it includes a lease. The Company evaluates the lease against the lease classification criteria within Topic 842. If the direct financing or sales-type classification criteria are met, then the lease is accounted for as a finance lease. All other leases are accounted for as operating leases. When a lease is identified, a right-of-use asset and the corresponding lease liability are recorded on the Consolidated Balance Sheet. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. In the event a lease does not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease right-of-use assets also include any lease prepayments made, initial direct costs incurred and excludes lease incentives received. We generally do not include renewal or termination options in our assessment of the leases unless extension or termination for certain assets is deemed to be reasonably certain. For all leases with a term of 12 months or less, we elected the practical expedient to not recognize lease assets and liabilities. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Right-of-use assets are assessed periodically for impairment if events or circumstances occur that indicate the carrying amount of the asset may not be recovered. We monitor events and modifications of existing lease agreements that would require reassessment of the lease. When a reassessment results in the remeasurement of a lease liability, a corresponding adjustment is made to the carrying amount of the corresponding right-of-use asset. As a result of the allocation of the enterprise fair value to the mine and terminal operations reporting unit, we assessed qualitative factors and determined that we could not conclude that it was more likely than not that the fair value of our net assets exceeded its carrying value. In turn, we prepared a quantitative analysis of the fair value of the right-of-use assets during 2019, and determined there was not sufficient undiscounted cash flows to recover the value of certain right-of-use assets. Upon completion of the valuation exercise, it was determined that there were impairments of certain right-of-use assets. Refer to Note 6 - Leases and Note 18 - Asset Impairments for additional disclosure regarding leases and right-of-use asset impairments. Goodwill and Intangible Assets Goodwill represents the excess of purchase price over the fair value of net assets acquired. The Company performs an assessment of the recoverability of goodwill as of September 30th 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. Our annual assessment of goodwill performed as of September 30, 2019 was prepared in accordance with ASU 2017-14, Simplifying the Test for Goodwill Impairment , which eliminates step two from the goodwill impairment test . The Company amortizes the cost of other intangible assets on a straight line basis over their estimated useful lives, ranging from 1 to 15 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 2019, we completed an impairment assessment of the intangible assets associated with the customer relationships, the trade name and trademarks acquired with the FB Industries acquisition. Upon completion of the annual assessment of goodwill and impairment assessment of intangible assets in 2019, it was determined that there were impairments. Refer to Note 7 - Goodwill and Intangible Assets and Note 18 - Asset Impairments for additional disclosure regarding our goodwill and intangible asset impairment assessments. Equity Method Investments The Company accounts for investments that 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 Company's net income and contributions made, and decreased by any allocated share of the Company's net losses and distributions received. The Company's allocated share of income and losses are based on the rights and priorities outlined in the equity investment agreement. Contingent Consideration Accounting standards require that contingent consideration be recorded at fair value at the date of acquisition and revalued during subsequent reporting dates under the acquisition method of accounting. The estimated fair value of contingent consideration is recorded as other liabilities on the Consolidated Balance Sheet. The estimate of fair value of a contingent consideration obligation requires subjective assumptions to be made regarding future business results, discount rates and probabilities assigned to various potential business result scenarios. Any adjustments to fair value are recognized in earnings in the period identified. Refer to Note 12 - Commitments and Contingencies for additional disclosure regarding contingent consideration. Contingent consideration arrangements entered into in connection with acquisitions between entities under common control are valued at fair value at the date of acquisition and any differences between the original estimated fair value, and the actual resulting payments in the future are reflected as an equity adjustment to the deemed distributions associated with the acquisitions. 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 We generate frac sand revenues from the sale of raw frac sand that our customers purchase for use in the oil and natural gas industry. 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 2020 and 2024 . The agreements define, among other commitments, the volume of product that the Company must provide and the volume that the customer must purchase by the end of the defined periods. Pricing structures under our agreements are in many cases subject to certain contractual adjustments and consist of a combination of negotiated pricing and fixed pricing. These arrangements may undergo negotiations regarding pricing and volume requirements, which may occur in volatile market conditions. We also sell sand through individual purchase orders executed on the spot market, at prices and other terms determined by the existing market conditions as well as the specific requirements of the customer. We typically invoice our frac sand customers as the product is delivered and title transfers to the customer, with standard collection terms of net 30 days. Frac sand sales revenues are recognized at the point in time following the transfer of control to the customer when legal title passes, which may occur at the production facility, rail origin, terminal or wellsite. Revenue recognition is driven by the execution and delivery of frac sand by the Company to the customer, which is initiated by the customer placing an order for frac sand, the Company accepting and processing the order, and the physical delivery of sand at the location specified by the customer. At that point in time, 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 as other revenue at the end of the defined period when collectability is certain. Customer prepayments in excess of customer obligations remaining on account upon the expiration or termination of a contract are recognized as other operating income during the period in which the expiration or termination occurs. During the year ended December 31, 2017, the Company recognized $3,554 related to a contract dispute that was subsequently resolved, which is included in other operating expenses, net on our Consolidated Statements of Operations. We generate other revenues primarily through the performance of our logistics and wellsite operations and services, which includes transportation, equipment rental, and labor services, as well as through activities performed at our in-basin terminals, including transloading sand for counterparties, and lease of storage space. Transportation services typically consist of transporting proppant from storage facilities to the wellsite and are contracted through work orders executed under established pricing agreements. The amount invoiced reflects the transportation services rendered. Equipment rental services provide customers with use of our fleet equipment for either contractual periods defined through formal agreements or for work orders under established pricing agreements. The amounts invoiced reflect either the contractual monthly minimum, or the length of time the equipment was utilized in the billing period. Labor services provide customers with supervisory, logistics, or field personnel through formal agreements or work orders executed under established pricing agreements. The amounts invoiced reflect either the contractual monthly minimum, or the amount of time our labor services were utilized in the billing period. We typically invoice our customers as product is delivered and services are rendered, with standard collection terms of net 30 days. We recognize revenue for our logistics and wellsite operations and services and other revenues as title of the product transfers and the services have been rendered and completed. At that point in time, delivery of service has occurred, evidence of a contractual arrangement exists and collectability is reasonably assured. Deferred Revenues We occasionally receive prepayments from customers for future deliveries of frac sand or equipment. These prepayments represent consideration that is unconditional for which we have yet to transfer title to the sand or equipment. Amounts received from customers in advance of product deliveries are recorded as contract liabilities referred to as deferred revenues and recognized as revenue upon delivery of the product. Fair Value Measurements 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 Company's financial assets and liabilities are measured using inputs from the three levels of the fair value hierarchy, which are as follows: • Level 1 - observable inputs such as quoted prices in active markets; • Level 2 - inputs other than quoted prices in active markets that we can directly or indirectly observe to the extent that the markets are liquid for the relevant settlement periods; and • Level 3 - unobservable inputs in which little or no market data exists, therefore inputs reflect the Company's assumptions. The fair value of the Senior Notes approximated $209,250 as of December 31, 2019 , based on the market price quoted from external sources, compared with a carrying value of $450,000 . If the Senior Notes were measured at fair value in the financial statements, it would be classified as Level 2 in the fair value hierarchy. We measure the contingent consideration liability recognized in connection with the acquisition of FB Industries at fair value on a recurring basis using unobservable inputs and it would be classified as Level 3 in the fair value hierarchy. Refer to Note 12 - Commitments and Contingencies for additional disclosure regarding contingent consideration. Goodwill, other intangible assets and long-lived assets, including right-of-use assets, are subject to nonrecurring fair value measurement for the assessment of impairment or as part of the purchase price allocation process for business acquisitions. During the third quarter of 2019, the long-lived assets, including right-of-use assets, goodwill and other intangible assets were measured at fair value on a nonrecurring basis using unobservable inputs, which are categorized as Level 3 in the fair value hierarchy. Refer to Note 18 - Asset Impairments for additional disclosure regarding asset impairments. Income Taxes As a result of the Conversion completed on May 31, 2019, the Company converted from an entity treated as a partnership for U.S. federal income tax purposes to an entity treated as a corporation for U.S. federal income tax purposes and is therefore subject to U.S. federal, foreign and state and local corporate income tax. The Conversion resulted in the Company recording a partial step-down in the tax basis of certain assets. On the date of the Conversion, we recorded an estimated net tax expense and estimated net deferred tax liability of $115,488 relating to the Conversion as well as this partial step-down in tax basis. Our overall tax provision is based on, among other things, an estimate of the amount of such partial step-down in tax basis that is derived from an analysis of the basis of our unitholders in their ownership of Hi-Crush common units at December 31, 2018, and estimated asset values at the time of the Conversion. While this information does not completely reflect the actual basis of our unitholders at May 31, 2019, our estimate is based on our best estimate of the individual asset valuations and the most recent unitholder basis information available to us. The amount of partial step-down in tax basis cannot be finally determined until complete trading information with respect to Hi-Crush common units for the five months ended May 31, 2019 becomes available. The Company does not currently expect such information to become available until the first quarter of 2020 and the timing and the availability of this information is not within the Company’s control. Since the unitholder basis information currently available to us does not completely reflect the actual basis of our unitholders at May 31, 2019, the amount of the partial step-down in tax basis as finally determined is expected to differ, possibly materially, from the current estimate, which in turn is expected to cause the Company’s income tax provision and effective tax rate under GAAP to differ, possibly to a material extent, from the current estimate described herein. If the amount of the partial step-down in tax basis as finally determined is lower than the current estimate, the Company would record a lower net tax expense and an incrementally lower deferred tax liability, which would have the effect of decreasing the amount of taxes payable by the Company in the future. If the amount of partial step-down in tax basis as finally determined is higher than the current estimate, the Company would record a higher net tax expense and an incrementally higher deferred tax liability, which would have the effect of increasing the amount of taxes payable by the Company in the future. Excluding day one deferred taxes related to the Conversion and the Company's pre-tax loss for the five months ended May 31, 2019, the Canadian operations income for the five months ended May 31, 2019 and the consolidated income for the months of June through December 2019 were subject to corporate tax at an estimated effective tax rate of approximately 22.2% . The effective tax rate differs from the statutory rate primarily due to the following: (i) the tax expense recognized as a result of the partial step-down in tax basis of certain assets as a result of the Conversion as described above, (ii) the tax expense recognized that relates to the post-conversion book income, (iii) state income taxes, (iv) the impact of current year acquisitions, (v) certain compensation charges attributable to the Company that are not deductible for tax purposes, and (vi) certain book expenses that are not deductible for tax purposes. Prior to the Conversion, the Company was a pass-through entity and was not considered a taxable entity for federal tax purposes. Therefore, there is not a provision for income taxes for U.S. federal or certain other state jurisdictions in the accompanying Consolidated Financial Statements prior to May 31, 2019. Deferred Income Taxes Income taxes are accounted for using the asset and liability method of accounting. Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences of differences between the carrying amounts of assets and liabilities and their respective tax basis, using tax rates in effect for the year in which the differences are expected to reverse. The effect on deferred assets and liabilities of a change in tax rates is recognized in the Consolidated Statements of Operations in the period when the change is enacted. Deferred tax assets are reduced by a valuation allowance when, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. When evaluating the realizability of the deferred tax assets, all evidence, both positive and negative, is considered. Items considered when evaluating the need for a valuation allowance include the ability to carry back losses, future reversals of existing temporary differences, tax planning strategies, and expectations of future earnings. For a particular tax‑paying component of an entity and within a particular tax jurisdiction, deferred tax assets and liabilities are offset and presented as a single amount, as applicable, in the accompanying statements of financial condition. Foreign Currency Translation The Company records foreign currency translation adjustments from the process of translating the functional currency of the financial statements of its foreign subsidiary into the U.S. dollar reporting currency. The Canadian dollar is the functional currency of the Company's foreign subsidiary as it is the primary currency within the economic environment in which the subsidiary operates. Assets and liabilities of the subsidiary's operations are translated into U.S. dollars at the rate of exchange in effect on the balance sheet date and income and expenses are translated at the average exchange rate in effect during the reporting period. Adjustments resulting from the translation of the subsidiary's financial statements are reported in other comprehensive income. Recent Accounting Pronouncement s In December 2019, the Financial Accounting Standards Board ("FASB") issued ASU 2019-12, Income Taxes (Topic 740) , which affects general principles within Topic 740, and are meant to simplify and reduce the cost of accounting for income taxes. It removes certain exceptions to the general principles in Topic 740 and simplifies areas including franchise taxes that are partially based on income, transactions with a government that re |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Acquisition of Proppant Logistics LLC On May 7, 2019, the Company acquired the remaining 34% ownership interest in Proppant Logistics, which owns Pronghorn, a provider of end-to-end proppant logistics services, for $2,951 in cash and 695,606 newly issued common units. The Company previously held a 66% ownership interest in Proppant Logistics, which was accounted for using the equity method. We remeasured our previously held equity interest in Proppant Logistics at fair value as of the date we obtained control in accordance with the accounting guidance for acquisitions achieved in stages in ASC 805, Business Combinations . As a result, we recognized a gain of $3,612 on the remeasurement of our equity method investment during the second quarter of 2019. The final purchase price of $16,045 was allocated to the net assets acquired as follows: Net assets of Proppant Logistics as of May 7, 2019: Cash $ 1,841 Accounts receivable 7,951 Prepaid expenses and other current assets 782 Property, plant and equipment 205 Other assets 247 Goodwill and intangible assets 15,662 Accounts payable (7,047 ) Accrued and other current liabilities (359 ) Credit facility (3,237 ) Fair value of net assets acquired $ 16,045 The excess of the purchase consideration over the fair value of net assets acquired was recorded as goodwill. The recognition of goodwill is attributable to strategic benefits and expected synergies of our combined operations. Through the completion of acquiring 100% of the ownership interests in Proppant Logistics, the Company began to consolidate the operations of Proppant Logistics prospectively from May 7, 2019. In connection with this acquisition, the Company incurred $312 of acquisition related costs during the year ended December 31, 2019, included in general and administrative expenses. Pro forma results of operations for Proppant Logistics have not been presented because the acquisition was not material to the consolidated results of operations. Acquisition of BulkTracer Holdings LLC On January 18, 2019, the Company completed the acquisition of BulkTracer, the owner of a logistics software system, PropDispatch, for $3,134 in cash. The acquisition was accounted for under the acquisition method of accounting whereby management assessed the net assets acquired and recognized amounts for the identified assets acquired and liabilities assumed. The final purchase price of $3,134 was allocated to the net assets acquired as follows: Net assets of BulkTracer as of January 18, 2019: Cash $ 15 Accounts receivable 53 Property, plant and equipment 3,129 Equity method investment in Proppant Express Investments, LLC 289 Accounts payable (86 ) Accrued and other current liabilities (166 ) Deferred revenues (100 ) Fair value of net assets acquired $ 3,134 The operations of BulkTracer have been included in the statements prospectively from January 18, 2019. In connection with this acquisition, the Company incurred $100 of acquisition related costs during the year ended December 31, 2019, included in general and administrative expenses. Pro forma results of operations for BulkTracer have not been presented because the acquisition was not material to the consolidated results of operations. Acquisition of Hi-Crush Proppants LLC and Hi-Crush GP LLC On October 21, 2018, the Company entered into a contribution agreement with the sponsor pursuant to which the Company acquired all of the then outstanding membership interests in the sponsor and the non-economic general partner interest in the Company, in exchange for 11,000,000 newly issued common units. In connection with the acquisition, all of the outstanding incentive distribution rights representing limited partnership interests in the Company were canceled and extinguished and the sponsor waived any and all rights to receive contingent consideration payments from the Company or our subsidiaries pursuant to certain previously entered into contribution agreements to which it was a party. In connection with this acquisition, the Company incurred $3,810 of acquisition related costs during the year ended December 31, 2018, included in general and administrative expenses. As a result of this transaction, the Company's historical financial information has been recast to combine the Consolidated Statements of Operations and the Consolidated Balance Sheets of the Company with those of the sponsor and general partner as if the combination had been in effect since inception of common control on October 28, 2010. All transactions between the Company, the sponsor and general partner have been eliminated. Except for the combination of the Consolidated Statements of Operations and the respective allocation of recast net income (loss), distributions paid by the sponsor to its members prior to October 21, 2018 have not been allocated on a recast basis to the Company’s unitholders. Such transactions were presented within the non-controlling interest column in the Consolidated Statement of Changes in Equity as the Company and its unitholders would not have participated in these transactions. The following table summarizes the carrying value of the sponsor and general partner's net assets as of October 21, 2018, and the allocation of the purchase price: Net assets of the sponsor and general partner as of October 21, 2018: Cash $ 1,314 Accounts receivable 29 Due from Hi-Crush Partners LP 1,446 Prepaid expenses and other current assets 3,132 Property, plant and equipment 2,087 Accounts payable (2,236 ) Accrued and other current liabilities (2,562 ) Current portion of long-term debt (2,259 ) Other liabilities (86 ) Total carrying value of sponsor and general partner net assets $ 865 Allocation of purchase price Carrying value of sponsor's non-controlling interest prior to Sponsor Contribution $ (453,028 ) Excess purchase price over the acquired interest 453,028 Common control cost of sponsor and general partner acquisition $ — Acquisition of FB Industries Inc. On August 1, 2018, the Company acquired FB Industries, a company engaged in the engineering, design and marketing of silo-based frac sand management systems for $45,000 in cash and 1,279,328 of newly issued common units valued at $19,190 . The final purchase price is $74,292 and is comprised of cash consideration of $55,102 which includes valuation of cash acquired, a working capital adjustment of $10,102 and the value of common units issued. The terms also include the potential for additional future consideration payments based on the achievement of established performance benchmarks through 2021. The acquisition was accounted for under the acquisition method of accounting whereby management assessed the net assets acquired and recognized amounts for the identified assets acquired and liabilities assumed. Refer to Note 12 - Commitments and Contingencies for additional disclosure regarding contingent consideration. The final purchase price of $74,292 was allocated to the net assets acquired as follows: Net assets of FB Industries as of August 1, 2018: Cash $ 20,015 Accounts receivable 2,540 Inventories 13,416 Goodwill and intangible assets 71,723 Prepaid expenses and other current assets 2,202 Property, plant and equipment 1,868 Accounts payable (1,628 ) Deferred revenues (13,004 ) Accrued and other current liabilities (13,988 ) Deferred tax liabilities (429 ) Contingent consideration (8,423 ) Fair value of net assets acquired $ 74,292 The excess of the purchase consideration over the fair value of net assets acquired was recorded as goodwill. The recognition of goodwill is attributable to the future growth opportunities and synergies of our combined operations. The operations of FB Industries have been included in the statements prospectively from August 1, 2018. In connection with this acquisition, the Company incurred $639 of acquisition related costs during the year ended December 31, 2018, included in general and administrative expenses. Pro forma results of operations for FB Industries have not been presented because the acquisition was not material to the consolidated results of operations. Asset Acquisition of Permian Basin Sand Reserves On March 3, 2017, the Company completed an acquisition of Permian Basin Sand for total consideration of $200,000 in cash and 3,438,789 newly issued common units to the sellers, valued at $62,242 based on the closing price as of March 3, 2017. Permian Basin Sand owns a 1,226 -acre frac sand reserve strategically positioned in the Permian Basin, located within 75 miles of significant Delaware and Midland Basin activity. The acquisition of Permian Basin Sand was accounted for as an asset acquisition as the acquired assets did not constitute a business. The total purchase consideration of $263,072 is reflected as property, plant and equipment on the Consolidated Balance Sheet. The following table summarizes the total purchase consideration: Cash paid to sellers $ 200,000 Issuance of common units to sellers 62,242 Transactions costs associated with the acquisition 830 Cost of Permian Basin Sand acquisition $ 263,072 Acquisition of Hi-Crush Whitehall LLC and Other Assets On February 23, 2017, the Company entered into a contribution agreement with the sponsor to acquire all of the outstanding membership interests in Whitehall and Other Assets, for $140,000 in cash and up to $65,000 of contingent consideration. The Company completed this acquisition on March 15, 2017. In connection with this acquisition, the Company incurred $588 of acquisition related costs during the year ended December 31, 2017, included in general and administrative expenses. The contingent consideration was based on the Company'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. As of March 15, 2017, the estimated fair value of the contingent consideration liability based on available information at the time of the acquisition was $14,000 . During the first quarter of 2018, the Company paid $20,000 of contingent consideration with respect to the 2017 measurement period. In October 2018, the Company completed the acquisition of its sponsor and general partner and the remaining contingent consideration arrangements were terminated. As a result of this transaction, the Company's historical financial information has been recast to combine the Consolidated Statements of Operations and the Consolidated Balance Sheets of the Company with those of Whitehall and Other Assets as if the combination had been in effect since inception of common control on August 16, 2012. All transactions between the Company, Whitehall and Other Assets have been eliminated. The following table summarizes the carrying value of the Whitehall and Other Assets net assets as of March 15, 2017, and the allocation of the purchase price: Net assets of Hi-Crush Whitehall LLC and Other Assets as of March 15, 2017: Cash $ 198 Inventories 4,941 Prepaid expenses and other current assets 3 Property, plant and equipment 124,811 Accounts payable (938 ) Accrued and other current liabilities (386 ) Due to Hi-Crush Partners LP (2,615 ) Asset retirement obligation (1,716 ) Total carrying value of Whitehall and Other Assets net assets $ 124,298 Allocation of purchase price Carrying value of sponsor's non-controlling interest prior to Whitehall Contribution $ 119,108 Excess purchase price over the acquired interest (a) 34,892 Cost of Whitehall and Other Assets acquisition $ 154,000 (a) The deemed distribution attributable to the purchase price was allocated to the common unitholders and excludes the $14,000 estimated fair value of contingent consideration. Recast Financial Results The following tables present, on a supplemental basis, our recast revenues, net income, net income attributable to Hi-Crush and net income per limited partner unit giving effect to the Sponsor Contribution and Whitehall Contribution, as reconciled to the revenues, net income, net income attributable to Hi-Crush and net income per limited partner unit of the Company. Year Ended December 31, 2018 Company Historical Sponsor and General Partner through Eliminations Company Recast (Supplemental) Revenues $ 842,840 $ — $ — $ 842,840 Net income (loss) $ 140,790 $ (3,195 ) $ — $ 137,595 Net income (loss) attributable to Hi-Crush $ 140,790 $ (3,195 ) $ — $ 137,595 Net income per limited partner unit - basic $ 1.46 $ 1.42 Year Ended December 31, 2017 Company Historical Sponsor and General Partner Whitehall and Other Assets through Eliminations Company Recast (Supplemental) Revenues $ 602,623 $ — $ — $ — $ 602,623 Net income (loss) $ 83,979 $ (6,372 ) $ (1,366 ) $ (79 ) $ 76,162 Net income (loss) attributable to Hi-Crush $ 84,005 $ (6,372 ) $ (1,392 ) $ (79 ) $ 76,162 Net income per limited partner unit - basic $ 0.97 $ 0.88 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following: December 31, 2019 2018 Raw material $ 273 $ 512 Work-in-process 17,541 29,180 Finished goods 18,341 24,872 Spare parts 3,819 2,525 Inventories $ 39,974 $ 57,089 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment consisted of the following: December 31, 2019 2018 Buildings $ 28,178 $ 32,751 Mining property and mine development 352,661 390,296 Plant and equipment 325,625 472,892 Rail and rail equipment 31,886 55,913 Transload facilities and equipment 101,395 118,982 Last mile equipment (a) 86,922 66,083 Construction-in-progress 13,590 21,796 Property, plant and equipment 940,257 1,158,713 Less: Accumulated depreciation and depletion (129,351 ) (127,525 ) Property, plant and equipment, net $ 810,906 $ 1,031,188 (a) Includes finance lease right-of-use assets. Depreciation and depletion expense was $52,415 , $38,775 and $29,872 for the years ended December 31, 2019 , 2018 and 2017 , respectively. The Company recognized a (gain) loss on the disposal of fixed assets of $(68) , $369 and $92 during the years ended December 31, 2019 , 2018 and 2017 , respectively, which is included in other operating expenses, net on our Consolidated Statements of Operations. As a result of the current demand for frac sand and related logistics services and continued pricing pressure for both Northern White and in-basin sand, the Augusta facility was idled in January 2019. The Company temporarily idled dry plant operations at the Whitehall facility in September 2018 and resumed production in January 2019. Beginning in August 2019, the Company reduced the hours of operations at the Whitehall facility. During the year ended December 31, 2019, we completed impairment assessments of our long-lived assets, including property, plant and equipment, based on current market conditions and the current and expected utilization of the assets. As a result, the Company recognized impairments of $109,747 and $105,727 related to the write-down of the Augusta facility, including $6,858 of work-in-process inventory, and the Whitehall facility, respectively, to their estimated fair value. We recognized impairments of $15,943 related to the remaining book value of certain assets associated with idled terminal facilities. These expenses are included in asset impairments on the Consolidated Statement of Operations. Refer to Note 18 - Asset Impairments for additional disclosure regarding long-lived asset impairments. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases As described in Note 2 - Significant Accounting Policies , on January 1, 2019, we adopted ASU 2016-02, Leases (Topic 842) . Prior periods presented have not been adjusted and continue to be reported in accordance with the legacy guidance in Topic 840. Lessee The Company has long-term operating and finance leases, comprised primarily of railcars and container lease arrangements, equipment, office space and terminals. Our operating leases have remaining lease terms of 0.3 years to 8.6 years , and our finance leases have remaining lease terms of 4.7 years , some of which include automatic renewal options, options to extend the leases and options to terminate the leases. During the year ended December 31, 2019, we completed impairment assessments of the right-of-use assets based on current market conditions and the current and expected utilization of the assets. As a result, the Company recognized impairments of $77,447 related to the write-down of value of certain operating lease right-of-use assets, primarily the railcars, to their estimated fair value. Refer to Note 18 - Asset Impairments for additional disclosure regarding asset impairments. As of December 31, 2019 , the balance sheet information related to leases are as follows: Classification December 31, 2019 Right-of-use assets Operating leases Operating lease right-of-use assets $ 44,086 Finance leases Property, plant and equipment, net 2,090 Total right-of-use assets $ 46,176 Lease liabilities Current Operating leases Current portion of operating lease liabilities $ 30,191 Finance leases Accrued and other current liabilities 339 Non-current Operating leases Operating lease liabilities 79,924 Finance leases Other liabilities 1,532 Total lease liabilities $ 111,986 Operating lease liabilities are based on the net present value of the remaining lease payments over the remaining lease term. In determining the lease liability and the present value of lease payments, we used our incremental borrowing rate based on the information available at the lease commencement date. The weighted average remaining lease term and discount rate as of December 31, 2019 related to leases are as follows: Operating leases Finance leases Weighted average remaining lease term 4.6 years 4.7 years Weighted average discount rate 9.50 % 7.75 % The lease cost components on our Consolidated Statement of Operations for the year ended December 31, 2019 are as follows: Year Ended Classification December 31, 2019 Operating leases Operating lease cost Cost of goods sold $ 38,831 Short-term lease cost Cost of goods sold 2,614 Operating lease cost General and administrative expenses 515 Short-term lease cost General and administrative expenses 510 Right-of-use asset impairments Asset impairments 77,447 Total operating lease costs $ 119,917 Finance leases Amortization of finance lease assets Cost of goods sold 110 Interest on lease liabilities Interest expense 39 Total finance lease costs $ 149 Supplemental cash flow information related to our leases for the year ended December 31, 2019 is as follows: Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows used for operating leases $ 40,609 Financing cash flow used for finance leases $ 329 Right-of-use assets obtained in exchange for operating lease liabilities (a) $ 151,853 Right-of-use assets obtained in exchange for finance lease liabilities $ 2,200 (a) Excludes the $77,447 of impairments on operating right-of-use assets incurred during 2019. As of December 31, 2019 , the maturities of lease liabilities are as follows: Fiscal Year Operating Leases Finance Leases Total 2020 $ 39,022 $ 472 $ 39,494 2021 33,239 472 33,711 2022 25,072 472 25,544 2023 12,027 472 12,499 2024 7,719 354 8,073 Thereafter 18,651 — 18,651 Total lease payments 135,730 2,242 137,972 Less: interest (25,615 ) (371 ) (25,986 ) Total lease liabilities $ 110,115 $ 1,871 $ 111,986 As of December 31, 2018, future minimum operating lease payments are as follows: Fiscal Year Operating Leases 2019 $ 36,019 2020 36,282 2021 29,272 2022 20,890 2023 10,280 Thereafter 31,066 $ 163,809 Lessor The Company has operating lease arrangements as the lessor associated for the use of logistics and wellsite operations equipment. These leases are classified as operating leases and result in the recognition of lease income on a straight-line basis, while the underlying leased asset remains on our balance sheet and continues to depreciate. Lease income associated with these leases is not material. |
Leases | Leases As described in Note 2 - Significant Accounting Policies , on January 1, 2019, we adopted ASU 2016-02, Leases (Topic 842) . Prior periods presented have not been adjusted and continue to be reported in accordance with the legacy guidance in Topic 840. Lessee The Company has long-term operating and finance leases, comprised primarily of railcars and container lease arrangements, equipment, office space and terminals. Our operating leases have remaining lease terms of 0.3 years to 8.6 years , and our finance leases have remaining lease terms of 4.7 years , some of which include automatic renewal options, options to extend the leases and options to terminate the leases. During the year ended December 31, 2019, we completed impairment assessments of the right-of-use assets based on current market conditions and the current and expected utilization of the assets. As a result, the Company recognized impairments of $77,447 related to the write-down of value of certain operating lease right-of-use assets, primarily the railcars, to their estimated fair value. Refer to Note 18 - Asset Impairments for additional disclosure regarding asset impairments. As of December 31, 2019 , the balance sheet information related to leases are as follows: Classification December 31, 2019 Right-of-use assets Operating leases Operating lease right-of-use assets $ 44,086 Finance leases Property, plant and equipment, net 2,090 Total right-of-use assets $ 46,176 Lease liabilities Current Operating leases Current portion of operating lease liabilities $ 30,191 Finance leases Accrued and other current liabilities 339 Non-current Operating leases Operating lease liabilities 79,924 Finance leases Other liabilities 1,532 Total lease liabilities $ 111,986 Operating lease liabilities are based on the net present value of the remaining lease payments over the remaining lease term. In determining the lease liability and the present value of lease payments, we used our incremental borrowing rate based on the information available at the lease commencement date. The weighted average remaining lease term and discount rate as of December 31, 2019 related to leases are as follows: Operating leases Finance leases Weighted average remaining lease term 4.6 years 4.7 years Weighted average discount rate 9.50 % 7.75 % The lease cost components on our Consolidated Statement of Operations for the year ended December 31, 2019 are as follows: Year Ended Classification December 31, 2019 Operating leases Operating lease cost Cost of goods sold $ 38,831 Short-term lease cost Cost of goods sold 2,614 Operating lease cost General and administrative expenses 515 Short-term lease cost General and administrative expenses 510 Right-of-use asset impairments Asset impairments 77,447 Total operating lease costs $ 119,917 Finance leases Amortization of finance lease assets Cost of goods sold 110 Interest on lease liabilities Interest expense 39 Total finance lease costs $ 149 Supplemental cash flow information related to our leases for the year ended December 31, 2019 is as follows: Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows used for operating leases $ 40,609 Financing cash flow used for finance leases $ 329 Right-of-use assets obtained in exchange for operating lease liabilities (a) $ 151,853 Right-of-use assets obtained in exchange for finance lease liabilities $ 2,200 (a) Excludes the $77,447 of impairments on operating right-of-use assets incurred during 2019. As of December 31, 2019 , the maturities of lease liabilities are as follows: Fiscal Year Operating Leases Finance Leases Total 2020 $ 39,022 $ 472 $ 39,494 2021 33,239 472 33,711 2022 25,072 472 25,544 2023 12,027 472 12,499 2024 7,719 354 8,073 Thereafter 18,651 — 18,651 Total lease payments 135,730 2,242 137,972 Less: interest (25,615 ) (371 ) (25,986 ) Total lease liabilities $ 110,115 $ 1,871 $ 111,986 As of December 31, 2018, future minimum operating lease payments are as follows: Fiscal Year Operating Leases 2019 $ 36,019 2020 36,282 2021 29,272 2022 20,890 2023 10,280 Thereafter 31,066 $ 163,809 Lessor The Company has operating lease arrangements as the lessor associated for the use of logistics and wellsite operations equipment. These leases are classified as operating leases and result in the recognition of lease income on a straight-line basis, while the underlying leased asset remains on our balance sheet and continues to depreciate. Lease income associated with these leases is not material. |
Leases | Leases As described in Note 2 - Significant Accounting Policies , on January 1, 2019, we adopted ASU 2016-02, Leases (Topic 842) . Prior periods presented have not been adjusted and continue to be reported in accordance with the legacy guidance in Topic 840. Lessee The Company has long-term operating and finance leases, comprised primarily of railcars and container lease arrangements, equipment, office space and terminals. Our operating leases have remaining lease terms of 0.3 years to 8.6 years , and our finance leases have remaining lease terms of 4.7 years , some of which include automatic renewal options, options to extend the leases and options to terminate the leases. During the year ended December 31, 2019, we completed impairment assessments of the right-of-use assets based on current market conditions and the current and expected utilization of the assets. As a result, the Company recognized impairments of $77,447 related to the write-down of value of certain operating lease right-of-use assets, primarily the railcars, to their estimated fair value. Refer to Note 18 - Asset Impairments for additional disclosure regarding asset impairments. As of December 31, 2019 , the balance sheet information related to leases are as follows: Classification December 31, 2019 Right-of-use assets Operating leases Operating lease right-of-use assets $ 44,086 Finance leases Property, plant and equipment, net 2,090 Total right-of-use assets $ 46,176 Lease liabilities Current Operating leases Current portion of operating lease liabilities $ 30,191 Finance leases Accrued and other current liabilities 339 Non-current Operating leases Operating lease liabilities 79,924 Finance leases Other liabilities 1,532 Total lease liabilities $ 111,986 Operating lease liabilities are based on the net present value of the remaining lease payments over the remaining lease term. In determining the lease liability and the present value of lease payments, we used our incremental borrowing rate based on the information available at the lease commencement date. The weighted average remaining lease term and discount rate as of December 31, 2019 related to leases are as follows: Operating leases Finance leases Weighted average remaining lease term 4.6 years 4.7 years Weighted average discount rate 9.50 % 7.75 % The lease cost components on our Consolidated Statement of Operations for the year ended December 31, 2019 are as follows: Year Ended Classification December 31, 2019 Operating leases Operating lease cost Cost of goods sold $ 38,831 Short-term lease cost Cost of goods sold 2,614 Operating lease cost General and administrative expenses 515 Short-term lease cost General and administrative expenses 510 Right-of-use asset impairments Asset impairments 77,447 Total operating lease costs $ 119,917 Finance leases Amortization of finance lease assets Cost of goods sold 110 Interest on lease liabilities Interest expense 39 Total finance lease costs $ 149 Supplemental cash flow information related to our leases for the year ended December 31, 2019 is as follows: Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows used for operating leases $ 40,609 Financing cash flow used for finance leases $ 329 Right-of-use assets obtained in exchange for operating lease liabilities (a) $ 151,853 Right-of-use assets obtained in exchange for finance lease liabilities $ 2,200 (a) Excludes the $77,447 of impairments on operating right-of-use assets incurred during 2019. As of December 31, 2019 , the maturities of lease liabilities are as follows: Fiscal Year Operating Leases Finance Leases Total 2020 $ 39,022 $ 472 $ 39,494 2021 33,239 472 33,711 2022 25,072 472 25,544 2023 12,027 472 12,499 2024 7,719 354 8,073 Thereafter 18,651 — 18,651 Total lease payments 135,730 2,242 137,972 Less: interest (25,615 ) (371 ) (25,986 ) Total lease liabilities $ 110,115 $ 1,871 $ 111,986 As of December 31, 2018, future minimum operating lease payments are as follows: Fiscal Year Operating Leases 2019 $ 36,019 2020 36,282 2021 29,272 2022 20,890 2023 10,280 Thereafter 31,066 $ 163,809 Lessor The Company has operating lease arrangements as the lessor associated for the use of logistics and wellsite operations equipment. These leases are classified as operating leases and result in the recognition of lease income on a straight-line basis, while the underlying leased asset remains on our balance sheet and continues to depreciate. Lease income associated with these leases is not material. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
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, 2017 $ — $ 8,416 FB Industries acquisition additions 22,876 46,767 Impact of foreign currency translation (995 ) (2,115 ) Amortization expense — (3,374 ) Balance at December 31, 2018 21,881 49,694 FB Industries acquisition measurement period adjustment 2,080 — Proppant Logistics acquisition additions 10,701 4,961 Impact of foreign currency translation 995 2,115 Asset impairments (Note 18) (35,657 ) (12,973 ) Amortization expense — (5,656 ) Balance at December 31, 2019 $ — $ 38,141 Goodwill Goodwill represented the excess purchase over the fair value of net assets acquired in the acquisitions of FB Industries and Proppant Logistics and is allocated to the logistics and wellsite operations reporting unit. During the third quarter of 2019, the Company performed its annual assessment of goodwill and as a result recognized an impairment of $35,657 included in asset impairments on the Consolidated Statement of Operations. Refer to Note 18 - Asset Impairments for additional disclosure regarding our goodwill impairment assessment. Intangible Assets Intangible assets arising from the acquisitions of Proppant Logistics in 2019, FB Industries in 2018 and D&I Silica, LLC in 2013 consisted of the following: December 31, Useful life 2019 2018 Patents 15 years $ 31,042 $ 29,620 Customer contracts and relationships 1-10 years 23,093 28,724 Supplier agreements 1 year 784 784 Other intangible assets 1-5 years 1,961 5,888 Intangible assets 56,880 65,016 Less: Accumulated amortization (18,739 ) (15,322 ) Intangible assets, net $ 38,141 $ 49,694 Amortization expense was $5,656 and $3,374 for the years ended December 31, 2019 and 2018 , respectively. The weighted average remaining life of intangible assets was 11.6 years as of December 31, 2019 . During the year ended December 31, 2019, we completed an impairment assessment of the intangible assets associated with the customer relationships, the trade name and trademarks acquired with the FB Industries acquisition. As a result, we determined that the fair value of the intangibles was less than their carrying value, resulting in an impairment of $12,973 , included in asset impairments on the Consolidated Statement of Operations. Refer to Note 18 - Asset Impairments for additional disclosure regarding intangible asset impairments. As of December 31, 2019 , future amortization is as follows: Fiscal Year Amortization 2020 $ 4,345 2021 4,345 2022 4,345 2023 2,628 2024 2,566 Thereafter 19,912 $ 38,141 |
Equity Method Investments
Equity Method Investments | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Equity Method Investments The following table provides our net investments and the proportionate share of our equity method investments operating results: Investment Earnings (loss) from Equity Method Investments December 31, Year Ended December 31, 2019 2018 2019 2018 2017 Proppant Express Investments, LLC $ 37,173 $ 30,870 $ 6,014 $ 5,300 $ 75 Proppant Logistics LLC (through May 6, 2019) — 6,484 (1 ) (116 ) — Total $ 37,173 $ 37,354 $ 6,013 $ 5,184 $ 75 Investment in Proppant Express Investments, LLC On September 8, 2016, the Company entered into an agreement to become a member of Proppant Express Investments, LLC ("PropX"), which was established to develop 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 wellsite. During the year ended December 31, 2019 , the Company made no capital contribution to PropX. During the years ended December 31, 2018 and 2017 , the Company made capital contributions of $8,095 and $7,168 to PropX, respectively. During the year ended December 31, 2019 , the Company acquired additional ownership interests in PropX through the BulkTracer acquisition valued at $289 . Investment in Proppant Logistics LLC On October 31, 2018, the Company invested $6,600 for an equity interest in Proppant Logistics, which owns Pronghorn, a logistics company which provides frac sand services in North America. During the year ended December 31, 2019 , the Company made capital contributions of $495 to Proppant Logistics. The Company acquired the remaining 34% ownership interest in Proppant Logistics and therefore began to consolidate the operations of Proppant Logistics prospectively from May 7, 2019. Refer to Note 3 - Acquisitions for additional disclosure. |
Accrued and Other Current Liabi
Accrued and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accrued and Other Current Liabilities | Accrued and Other Current Liabilities Accrued and other current liabilities consisted of the following: December 31, 2019 2018 Accrued royalty payments $ 2,358 $ 6,429 Accrued logistics costs 8,478 10,422 Accrued compensation and benefits 6,529 12,144 Accrued taxes payable 3,915 10,917 Accrued interest payable 18,188 18,464 Current portion of contingent consideration 400 — Other current liabilities 2,950 2,961 Accrued and other current liabilities $ 42,818 $ 61,337 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consisted of the following: December 31, 2019 2018 Senior Notes due 2026 $ 450,000 $ 450,000 ABL Credit Facility — — Other notes payable 6,105 4,852 Less: Unamortized debt issuance costs (8,138 ) (9,375 ) Total debt 447,967 445,477 Less: Current portion of long-term debt (2,628 ) (2,194 ) Long-term debt $ 445,339 $ 443,283 Senior Notes due 2026 On August 1, 2018, the Company completed the private placement of $450,000 aggregate principal amount of its 9.50% senior unsecured notes due 2026 (the "Senior Notes"). The Senior Notes were issued under and are governed by an indenture, dated as of August 1, 2018 (the "Indenture"), by and among the Company, the guarantors named therein (the "Guarantors"), and U.S. Bank National Association, as trustee. The Senior Notes are fully and unconditionally guaranteed (the "Guarantees"), jointly and severally, on a senior unsecured basis by the Guarantors. The Indenture contains customary terms, events of default and covenants relating to, among other things, the incurrence of debt, the payment of dividends or similar restricted payments, undertaking transactions with the Company's unrestricted affiliates, and limitations on asset sales. The Senior Notes bear interest at an annual rate of 9.50% payable semi-annually. At any time prior to August 1, 2021, the Company may redeem up to 35% of the aggregate principal amount of the Senior Notes at a redemption price equal to 109.50% of the principal amount, plus accrued and unpaid interest, if any, to the redemption date, with an amount of cash not greater than the net proceeds from certain equity offerings. At any time prior to August 1, 2021, the Company may redeem the Senior Notes, in whole or in part, at a redemption price equal to 100% of the principal amount of the Senior Notes plus a "make-whole" premium plus accrued and unpaid interest, if any, to the redemption date. The Company may also redeem all or a part of the Senior Notes at any time on or after August 1, 2021, at the redemption prices set forth in the Indenture, plus accrued and unpaid interest, if any, to the redemption date. If the Company experiences a change of control, the Company may be required to offer to purchase the Senior Notes at a purchase price equal to 101% of the principal amount, plus accrued and unpaid interest, if any, to the purchase date. The Senior Notes and the Guarantees rank equally in right of payment with all of the Company’s and the Guarantors’ existing and future senior indebtedness, effectively junior to all of the Company’s existing and future secured indebtedness, including borrowings under the ABL Credit Facility, to the extent of the value of the assets securing such indebtedness, structurally junior to any indebtedness of the Company’s subsidiaries that do not guarantee the Senior Notes (including trade payables), and senior to all of the Company’s and the Guarantors’ future subordinated indebtedness. As of December 31, 2019 , we had $441,862 of indebtedness ( $450,000 , net of $8,138 of debt issuance costs) under our Senior Notes. ABL Credit Facility On August 1, 2018, the Company, entered into a senior secured revolving credit facility (the "ABL Credit Facility"), which matures on August 1, 2023 , among the Company, as borrower, the lenders party thereto from time to time, and JP Morgan Chase Bank, N.A., as administrative agent and an issuing lender, and each other issuing lender party thereto. The ABL Credit Facility permits aggregate borrowings of up to $200,000 , including a $50,000 sublimit for letters of credit, with the ability to increase the amount of permitted aggregate borrowings up to $300,000 subject to certain conditions. As of December 31, 2019 , we had $43,903 of available borrowing capacity ( $64,917 , net of $21,014 letter of credit commitments) and no indebtedness under our ABL Credit Facility. The obligations of the Company under the ABL Credit Facility are secured by substantially all assets of the Company (other than real estate and other customary exclusions). In addition, the Company’s subsidiaries guarantee the Company’s obligations under the ABL Credit Facility and grant to the administrative agent security interests in substantially all of their respective assets (other than real estate and other customary exclusions). Borrowings under the ABL Credit Facility bear interest at a rate equal to, at the Company’s option, either (1) a base rate plus an applicable margin ranging between 0.75% per annum and 1.50% per annum, based upon the Company’s leverage ratio, or (2) a LIBOR rate plus an applicable margin ranging between 1.75% per annum and 2.50% per annum, based upon the Company’s leverage ratio. The ABL Credit Facility contains customary representations and warranties and customary affirmative and negative covenants, including limits or restrictions on the Company’s ability to incur liens, incur indebtedness, make certain restricted payments, merge or consolidate and dispose of assets. In certain limited circumstances, the ABL Credit Facility requires compliance with a fixed charge coverage ratio. In addition, it contains customary events of default that entitle the lenders to cause any or all of the Company’s indebtedness under the ABL Credit Facility 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, 2019 , the Company was in compliance with all covenants in the ABL Credit Facility. Other Notes Payable In 2014, the Company entered into a purchase and sales agreement to acquire land and underlying frac sand deposits. In connection with this agreement, during the years ended December 31, 2018 and 2016, the Company issued three-year promissory notes each in the amount of $3,676 due in August 2021 and December 2019, respectively, with interest rates of 2.42% and 0.74% , respectively. During the year ended December 31, 2019, the Company issued a three-year promissory note in the amount of $4,595 due in August 2022 with an interest rate of 1.91% . 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. However, the promissory notes are prepaid on a quarterly basis during the three-year terms as sand is extracted, delivered, sold and paid for from the properties. During the years ended December 31, 2019 and 2018 , the Company made prepayments of $4,288 and $3,378 , respectively, based on the accumulated volume of sand extracted, delivered, sold and paid for. In January 2020, the Company made a prepayment of $917 based on the volume of sand extracted, delivered, sold and paid for through the fourth quarter of 2019 . As of December 31, 2019 , the Company had repaid in full the promissory notes due in December 2019 and August 2021 and had $3,658 outstanding on its remaining promissory note due in August 2022. Other notes payable also includes short-term obligations, arising from insurance premium financing programs bearing interest ranging from approximately 5.54% to 6.29% , with outstanding balances of $1,555 as of December 31, 2019 . Additionally, other notes payables includes equipment financing agreements with outstanding balances of $892 as of December 31, 2019 . Maturities As of December 31, 2019 , future minimum debt repayments, excluding debt issuance costs, are as follows: Fiscal Year Amount 2020 $ 2,628 2021 168 2022 2,922 2023 195 2024 192 Thereafter 450,000 $ 456,105 Debt Refinancing and Extinguishment On December 22, 2017, the Company replaced our amended and restated credit agreement and our senior secured term loan credit facility by entering into the second amended and restated credit agreement (the "Revolving Credit Agreement") and an amended and restated credit agreement providing for a senior secured term loan credit facility (the "Term Loan Credit Facility"). During 2017, in connection with the refinancing, the Company recognized a $4,332 loss on extinguishment of debt, which represents the write-off of all remaining unamortized debt issuance costs and unamortized original issuance discount. On August 1, 2018, the Company completed the private placement of $450,000 aggregate principal amount of its 9.50% Senior Notes and entered into the ABL Credit Facility. Upon closing on the Senior Notes the Company repaid its outstanding debt, including accrued interest, under the Term Loan Credit Facility. The payment was made prior to the maturity date and no early payment penalties were incurred by the Company. Upon execution of the ABL Credit Facility, the Revolving Lenders commitments under the Revolving Credit Agreement were terminated and the outstanding liabilities of the Company with respect to its obligations under the Revolving Credit Agreement were released and discharged. During 2018, in connection with the terminations, the Company recognized a $6,233 |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2019 | |
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 Company maintained a post-closure reclamation and site restoration obligation as follows: December 31, 2019 2018 Beginning balance $ 10,677 $ 10,179 Additions and revisions to liabilities (207 ) — Accretion expense 494 498 Ending balance $ 10,964 $ 10,677 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Customer Contracts The Company enters into sales contracts with customers. These contracts establish minimum annual sand volumes that the Company is required to make available to such customers under initial terms ranging from one to seven years. Through December 31, 2019 , no payments for non-delivery of minimum annual sand volumes have been made by the Company to customers under these contracts. Royalty Agreements The Company has entered into royalty agreements under which it is committed to pay royalties on sand sold from its production facilities for which the Company 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 $7,360 , $15,478 and $19,091 for the years ended December 31, 2019 , 2018 and 2017 , 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. Property Value Guarantees The Company entered into mining agreements and land use agreements with the Wisconsin municipalities of Bridge Creek, Lincoln, Springfield and Preston that contain property value guarantees ("PVG") for certain property owners in proximity to each mine. The respective PVGs establish a process whereby we guarantee 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 additional acreage in certain instances. Upon such notice, the PVGs establish 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 days ' time frame, we are obligated to purchase the property for fair market value. As of December 31, 2019 , we have not accrued a liability related to the PVGs because it is not possible to estimate 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. As of December 31, 2019 , the Company has paid $3,085 under these guarantees since inception. Purchase Commitments 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 require us to pay shortfall fees. We have also entered into purchase commitments for the construction of certain equipment. As of December 31, 2019 , future minimum purchase commitments are as follows: Fiscal Year 2020 $ 14,240 2021 14,740 2022 3,425 2023 3,295 2024 979 Thereafter 271 $ 36,950 Contingent Consideration In connection with the acquisition of FB Industries, the agreement contained certain contingent consideration arrangements from the date of closing to December 31, 2021, dependent upon leases or sales of certain silo equipment to be paid quarterly. As of December 31, 2019 , the total estimated fair value of the contingent consideration is $400 and is recorded in accrued and other current liabilities on the Consolidated Balance Sheet. Changes in fair value of the contingent consideration, for facts and circumstances that existed at the time of the acquisition, prior to finalizing the purchase price allocation were accounted for as an adjustment to goodwill. Subsequent changes in fair value of the contingent consideration after the measurement period are recognized in earnings in the period identified. The estimated fair value assumes primarily leases are entered into during this period with minimal sales of silo equipment. A 10% increase in the assumed quantity of leases would result in an increase to $567 in the fair value of the contingent consideration. Conversely, a 50% shift in the assumed quantity of leases to sales of silo systems and conveyors would increase the contingent consideration to $895 . The following table provides a summary of changes in the fair value of the contingent consideration: Balance at December 31, 2018 $ 8,147 Changes in estimated fair value of contingent consideration liability (7,747 ) Balance at December 31, 2019 $ 400 Litigation From time to time the Company may be subject to various claims and legal proceedings which arise in the normal course of business, including claims involving various governmental agencies, including but not limited to the Texas Commission on Environmental Quality, Wisconsin Department of Natural Resources and U.S. Environmental Protection Agency, among others. Management is not aware of any legal matters that are likely to have a material adverse effect on the Company’s financial position, results of operations or cash flows. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Equity | Equity On May 31, 2019, at the effective time of the Conversion, the outstanding common units were each exchanged for one issued and outstanding share of common stock. Holders of common units immediately prior to the Conversion collectively received, in exchange for their common units, 100% of the shares of common stock issued and outstanding immediately following the Conversion. As of the open of business on June 3, 2019, the common stock commenced trading on the NYSE under the ticker symbol "HCR." Under the certificate of incorporation of the Company that was entered into at the effective time of Conversion, the Company has authority to issue a total of 600,000,000 shares, of which 500,000,000 are designated as common stock, par value $0.01 per share and 100,000,000 are designated as preferred stock, par value $0.01 per share. Equity Issuances On May 7, 2019, the Company issued 695,606 common units as additional consideration for the Proppant Logistics acquisition. On August 1, 2018, the Company issued 1,279,328 of common units as additional consideration for the FB Industries acquisition. During the year ended December 31, 2017 , the Company completed a public offering for a total of 23,575,000 common units representing limited partnership interests in the Company for aggregate net proceeds of approximately $412,577 . The net proceeds from this offering were used to fund the cash portion of the Whitehall Contribution, the cash portion of the Permian Basin Sand asset acquisition and for general partnership purposes. In addition, the Company issued 3,438,789 common units as additional consideration for the Permian Basin Sand asset acquisition on March 3, 2017. Stock Repurchase Program On June 8, 2019, the Company's board of directors approved a new stock repurchase program of up to $25,000 , effective immediately and authorized through June 30, 2020. The new stock repurchase program superseded our previous unit buyback program, which was terminated upon the Conversion on May 31, 2019. The stock repurchase program does not obligate the Company to repurchase any specific dollar amount or number of shares and may be suspended, modified or discontinued by the board of directors at any time, in its sole discretion and without notice. The following table presents information with respect to repurchases of common shares made by the Company during the periods presented, which were retired upon repurchase: Year Ended December 31, 2019 2018 2017 Number of shares purchased 1,526,384 753,090 2,030,163 Average price paid per share including commission $ 2.23 $ 12.52 $ 9.85 Total cost $ 3,400 $ 9,426 $ 20,000 As of December 31, 2019 , the Company has repurchased a total of 1,526,384 common shares under the new stock repurchase program for a total cost of $3,400 , with $21,600 remaining under its approved stock repurchase program. Allocations of Net Income Prior to the Sponsor Contribution, the partnership agreement that governed Hi-Crush prior to the Conversion (the "partnership agreement") contained provisions for the allocation of net income and loss to the unitholders and the general partner. For purposes of maintaining partner capital accounts, the partnership agreement specified 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 were made after giving effect, if any, to priority income allocations in an amount equal to incentive cash distributions allocated 100% to the sponsor for the periods applicable prior to the Sponsor Contribution. Upon the Conversion on May 31, 2019, the partnership agreement was terminated. During the year ended December 31, 2018 , $7,664 was allocated to the holder of our incentive distribution rights prior to the Sponsor Contribution. During the year ended December 31, 2017 , no income was allocated to the holder of our incentive distribution rights. Distributions, Incentive Distribution Rights and Dividends Prior to the Conversion, the partnership agreement set forth the calculation to be used to determine the amount of cash distributions that our limited partner unitholders and the holder of our incentive distribution rights received prior to the Sponsor Contribution. The incentive distribution rights were held by the sponsor and were canceled and extinguished on October 21, 2018 in connection with the Sponsor Contribution. Upon the Conversion on May 31, 2019, the partnership agreement was terminated. On January 7, 2019 , we announced the decision of the board of directors to suspend the quarterly distribution to common unitholders. The Company has not adopted a policy regarding payment of dividends. Dividends may be declared from time to time by the board of directors out of funds legally available for dividend payments. Any dividend policy adopted may be amended, revoked or suspended at any time, and while any dividend policy is in place, the actual amount of dividends on the common stock will depend on many factors, including the Company’s financial condition and results of operations, liquidity requirements, market opportunities, capital requirements, legal, regulatory and contractual constraints, tax laws and other factors. Our most recent distributions, prior to the Conversion, were as follows: Declaration Date Amount Declared Per Unit Record Date Payment Date Payment to Limited Partner Units Payment to the Holder of Incentive Distribution Rights October 16, 2017 $ 0.1500 October 31, 2017 November 14, 2017 $ 13,656 $ — January 17, 2018 $ 0.2000 February 1, 2018 February 13, 2018 $ 17,809 $ — April 18, 2018 $ 0.2250 May 1, 2018 May 15, 2018 $ 19,888 $ — July 20, 2018 $ 0.7500 August 3, 2018 August 14, 2018 $ 67,253 $ 7,664 October 21, 2018 $ 0.2250 November 1, 2018 November 14, 2018 $ 22,695 $ — Recast Equity Transactions During the years ended December 31, 2018 and 2017, the sponsor paid cash distributions of $39,516 and $69,215 , respectively, to its members. Such transactions are reflected within the non-controlling interest section of the Consolidated Statement of Changes in Equity. During the year ended December 31, 2017, the sponsor distributed its 20,693,643 common units in the Company to its members. On October 21, 2018, in connection with the closing on the Sponsor Contribution, $453,028 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share of common stock is computed by dividing net income or loss by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share of common stock is computed by dividing the net income or loss by the sum of the weighted average number of shares of common stock outstanding during the period, plus the potential dilutive effects of stock awards outstanding during the period calculated in accordance with the treasury stock method. Diluted earnings per share excludes any dilutive stock awards granted (see Note 15 - Stock-Based Compensation ) if their effect is anti-dilutive. During year ended December 31, 2019 , the Company incurred a net loss and, as a result, all 1,786,966 stock awards granted and outstanding were excluded from the diluted earnings per share calculation. Diluted earnings per unit for the years ended December 31, 2018 and 2017 includes the dilutive effect of all 2,390,138 and 1,382,733 , respectively of stock awards granted and outstanding at the assumed number of shares which would have vested if the performance period had ended at the end of the respective periods. The following table provides a reconciliation of net loss and the basic and diluted weighted average common shares outstanding for purposes of computing loss per share for the year ended December 31, 2019 : December 31, 2019 Net loss $ (413,559 ) Basic weighted average common shares outstanding 100,974,770 Potentially dilutive common shares — Diluted weighted average common shares outstanding 100,974,770 Loss per share - basic $ (4.10 ) Loss per share - diluted $ (4.10 ) Prior to the Sponsor Contribution, for purposes of calculating the Company’s earnings per unit under the two-class method, common units were treated as participating preferred units and the incentive distribution rights were treated as participating securities. Each period, the Company determined 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 holder was subject to the distribution waterfall in the partnership agreement for the periods applicable prior to the Sponsor Contribution. Net earnings or loss for the period were allocated to each class of partnership interest based on the distributions to be made. As described in Note 1 - Business and Organization , the Company's historical financial information has been recast to combine the sponsor and general partner and Whitehall and Other Assets for all periods presented. The amounts of incremental losses recast to periods prior to the Sponsor Contribution and Whitehall Contribution were excluded from the calculation of earnings per limited partner unit. The following tables provide a reconciliation of net income, the assumed allocation of net income and the basic and diluted, weighted average limited partner units outstanding under the two-class method for purposes of computing earnings per limited partner unit for the years ended December 31, 2018 and 2017 : Year Ended December 31, 2018 General Partner and IDRs Limited Partner Units Total Declared distribution $ 7,664 $ 109,836 $ 117,500 Assumed allocation of earnings in excess of distributions — 20,095 20,095 Add back recast losses attributable to the sponsor and general partner through October 21, 2018 — 3,195 3,195 Assumed allocation of net income $ 7,664 $ 133,126 $ 140,790 Basic weighted average common units outstanding 91,248,042 Potentially dilutive common units 2,390,138 Diluted weighted average common units outstanding 93,638,180 Earnings per limited partner unit - basic $ 1.46 Earnings per limited partner unit - diluted $ 1.42 Year Ended December 31, 2017 General Partner and IDRs Limited Partner Units Total Declared distribution $ — $ 31,457 $ 31,457 Assumed allocation of earnings in excess of distributions — 44,705 44,705 Add back recast losses attributable to the sponsor and general partner — 6,372 6,372 Add back recast losses attributable to Whitehall and Other Assets through March 15, 2017 — 1,471 1,471 Assumed allocation of net income $ — $ 84,005 $ 84,005 Basic weighted average common units outstanding 86,518,249 Potentially dilutive common units 1,382,733 Diluted weighted average common units outstanding 87,900,982 Earnings per limited partner unit - basic $ 0.97 Earnings per limited partner unit - diluted $ 0.96 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Hi-Crush Inc. Long Term Incentive Plan On May 31, 2019, in connection with the Conversion, the board of directors approved the Hi-Crush Inc. Long Term Incentive Plan (the "Plan") for the benefit of employees, directors and other service providers of the Company and its affiliates. The Plan provides for the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, stock awards, dividend equivalents, other stock-based awards, cash awards and substitute awards. Under the Plan, 8,731,053 shares of common stock are reserved for issuance pursuant to awards under the Plan, which includes shares allocable to the phantom unit awards that were outstanding under the Hi-Crush Partners LP First Amended and Restated Long-Term Incentive Plan (the "HCLP Plan") immediately prior to the Conversion and were converted into awards of Performance Share Units ("PSUs") and Restricted Stock Units ("RSUs"), as applicable, under the Plan, effective at the time of the Conversion. The Plan is administered by the board of directors or a committee thereof. The HCLP Plan was terminated effective at the time of the Conversion, and all common units previously registered by the Company with respect to the HCLP Plan have been deregistered with the SEC. Performance Share Units Pursuant to the Plan, the Company awards PSUs to certain employees. The number of PSUs that will vest will range from 0% to 200% of the number of target PSUs and is dependent on the Company's total shareholder return over a three -year performance period compared to the total shareholder return of a designated peer group. Each PSU represents the right to receive, upon vesting, one share of common stock in the Company. Each PSU is entitled to dividend equivalent rights ("DERs"), which accumulate during the performance period and are either paid in cash on the date of settlement or forfeited in the event the underlying PSU is forfeited. The fair value of each PSU 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 PSUs: Units Grant Date Weighted-Average Fair Value per Unit Outstanding at December 31, 2018 747,920 $ 5.93 Vested (97,865 ) $ 16.63 Forfeited (82,801 ) $ 4.97 Outstanding at December 31, 2019 567,254 $ 4.56 As of December 31, 2019 , total compensation expense not yet recognized related to unvested PSUs was $927 , with a weighted average remaining service period of 1.4 years . The weighted average grant date fair value per unit for PSUs granted during the years ended December 31, 2018 and 2017 was $3.40 and $6.85 , respectively. During the year ended December 31, 2019 there were no PSUs granted. The total fair value of units vested during the years ended December 31, 2019 and 2018 was $1,627 and $1,964 , respectively. During the year ended December 31, 2017 no units vested. Restricted Stock Units Pursuant to the Plan, the Company awards RSUs to certain employees which automatically vest if the employee remains employed through the applicable vesting date. Vesting generally occurs over a three -year period subject to either cliff or graded vesting. Each RSU represents the right to receive, upon vesting, one share of common stock in the Company. Each RSU is entitled to DERs, which accumulate during the vesting period and are either paid in cash on the date of settlement or forfeited in the event the underlying RSU is forfeited. The fair value of each RSU is calculated based on the grant-date stock 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 RSUs: Units Grant Date Weighted-Average Fair Value per Unit Outstanding at December 31, 2018 1,642,218 $ 8.07 Vested (525,096 ) $ 10.93 Granted 538,968 $ 3.63 Forfeited (436,378 ) $ 6.45 Outstanding at December 31, 2019 1,219,712 $ 6.47 As of December 31, 2019 , total compensation expense not yet recognized related to unvested RSUs was $3,222 , with a weighted average remaining service period of 1.7 years . The weighted average grant date fair value per unit for RSUs granted during the years ended December 31, 2019 , 2018 and 2017 was $3.63 , $6.91 and $8.94 , respectively. The total fair value of units vested during the years ended December 31, 2019 , 2018 and 2017 was $5,742 , $3,651 and $714 , respectively. Director Stock Grants The Company issued 62,184 , 36,109 and 29,148 shares of common stock to certain of its directors during the years ended December 31, 2019 , 2018 and 2017 , respectively. Unit Purchase Programs The Company previously offered unit purchase programs (each, a "UPP") under the HCLP Plan. The UPPs provided participating employees and members of our general partner's board of directors the opportunity to purchase common units representing limited partner interests of the Company at a discount. If the closing price of the Company's common units on the purchase date was greater than or equal to the discount applied to the closing market price of our common units on a participant's applicable election date (the "Election Price"), then the participant would 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 a specified number of common units. If the purchase date price was less than the Election Price, then the participant’s Contribution would be returned to the participant. On the date of election, the Company calculated the fair value of the discount, which was recognized as unit compensation expense on a straight-line basis during the period from election date through the date of purchase. The offering period under the Company's UPP adopted in 2015 (the "2015 UPP") ended on February 28, 2017 with a 10% discount of the fair value of our common units on the applicable election date. The participants under the 2015 UPP purchased 300,090 common units at an average price of $5.49 on February 28, 2017 . On September 14, 2017, the offering period under the Second 2017 Unit Purchase Program (the "Second 2017 UPP") commenced, with a 15% discount of the fair value of our common units on the applicable election date and a purchase date of November 15, 2018 . On September 14, 2017, the Company calculated the fair value of the discount, which was recognized as unit compensation expense on a straight-line basis during the offering period. The offering period under the Second 2017 UPP ended on November 15, 2018, at which time the purchase date price was less than the Election Price. As a result, all contributions were returned to the participants and no common units were purchased under the Second 2017 UPP. Compensation Expense The following table presents total stock-based compensation expense: Year Ended December 31, 2019 2018 2017 Performance Share Units $ 976 $ 1,371 $ 1,549 Restricted Stock Units 3,404 5,261 3,149 Director stock grants 246 474 499 Unit Purchase Programs — 333 517 Total compensation expense $ 4,626 $ 7,439 $ 5,714 |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues The Company recognizes revenue at the point in time control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account. A contract's transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The majority of our contracts are frac sand contracts that have a single performance obligation as the promise to transfer individual goods or services is not separately identifiable from other promises in the contracts and, therefore, not distinct. For the portion of our contracts that contain multiple performance obligations, such as work orders containing a combination of product, transportation, equipment rentals, and labor services, we allocate the transaction price to each performance obligation identified in the contract based on relative stand-alone selling prices, or estimates of such prices, and recognize the related revenue as control of each individual product or service is transferred to the customer, in satisfaction of the corresponding performance obligations. Disaggregation of Revenues The following table presents our revenues disaggregated by contractual relationships: Year Ended December 31, 2019 2018 2017 Sales to contract customers $ 310,374 $ 607,898 $ 438,547 Spot sales 122,092 88,705 159,808 Frac sand sales revenues 432,466 696,603 598,355 Other revenues 203,904 146,237 4,268 Total revenues $ 636,370 $ 842,840 $ 602,623 Practical Expedients and Exemptions We have elected to use the practical expedients, pursuant to which we have excluded disclosures of transaction prices allocated to remaining performance obligations and when we expect to recognize such revenue. We have various long-term contracts with minimum purchase and supply requirements with terms expiring between 2020 and 2024 . The remaining performance obligations are primarily comprised of unfulfilled product, transportation service, and labor service orders, some of which hold a remaining duration of less than one year. Our transaction price for volumes and services under these contracts is based on timing of customer orders, points of sale, mix of products sold, impact of market conditions and potential contract negotiations, which have not yet been determined and therefore the price is variable in nature. The long-term portion of deferred revenues represents customer prepayments for which related current performance obligations do not yet exist, but are expected to arise, before the expiration of the term. Deferred Revenues As of December 31, 2019 , the Company has recorded a total liability of $26,028 for prepayments of future deliveries of frac sand and silo equipment. Some prepayments are refundable in the event that the Company is unable to meet the minimum requirements under certain contracts. We expect to recognize these revenues over the next 3.0 years . The following table reflects the changes in our contract liabilities, which we classify as deferred revenues: Balance at December 31, 2018 $ 29,785 Collection of prepayments 8,750 Revenues recognized (12,651 ) Customer prepayments acquired in business acquisitions 90 Impact of foreign currency translation 54 Balance at December 31, 2019 $ 26,028 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The following table summarizes our related party transactions from our equity method investment (see Note 8 - Equity Method Investments ) for the periods indicated: Year Ended December 31, 2019 2018 2017 Revenues - related parties $ 220 $ — $ — Cost of goods sold - related parties (a) $ 9,183 $ 5,306 $ 1,577 Equipment purchases - related parties (b) $ 1,432 $ 4,646 $ 5,033 (a) The Company incurs lease expense for the use of PropX equipment. (b) The Company purchases equipment from PropX, which is reflected in property, plant and equipment on our Consolidated Balance Sheet. The following table summarizes our related party balance sheet components from our equity method investments as of the dates indicated: December 31, 2019 2018 Accounts payable - related parties $ 1,164 $ 1,070 Current portion of operating lease liabilities - related parties (a) $ 8,273 $ — Operating lease liabilities - related parties (a) 11,130 — $ 19,403 $ — (a) During the first quarter of 2019, the Company made a lease prepayment of $3,739 for the use of PropX equipment during the first half of 2019. |
Asset Impairments
Asset Impairments | 12 Months Ended |
Dec. 31, 2019 | |
Asset Impairments [Abstract] | |
Asset Impairments | Asset Impairments As a result of the current demand for frac sand and related logistics services and continued pricing pressure for both Northern White and in-basin sand during 2019, we completed an impairment assessment of certain long-lived assets, including right-of-use assets, based on current market conditions and the current and expected utilization of the assets. Asset impairments for the year December 31, 2019 totaled $357,494 and was comprised of the following assets: Augusta facility, including work-in-process inventory $ 109,747 Whitehall facility 105,727 Terminal facilities 15,943 Operating lease right-of-use assets 77,447 Goodwill 35,657 Intangible assets associated with FB Industries acquisition 12,973 Asset impairments $ 357,494 Long-lived Assets During the year ended December 31, 2019, we completed an impairment assessment of the Augusta and Whitehall facilities based on current market conditions and the current and expected utilization of the facilities. The fair value was determined utilizing the income approach and utilizing inputs that are primarily based upon internally developed cash flow models discounted at an appropriate weighted average cost of capital. As a result, the Company recognized impairments of $109,747 and $105,727 related to the write-down of the Augusta facility, including $6,858 of work-in-process inventory, and the Whitehall facility, respectively, to their estimated fair value. During the year ended December 31, 2019, we evaluated our terminal facilities for impairment and as a result we recognized impairments of $15,943 related to the remaining book value of certain assets associated with idled terminal facilities. Leases During the year ended December 31, 2019, we completed an impairment assessment of the right-of-use assets based on current market conditions and the current and expected utilization of the assets. The fair value was determined utilizing the income approach and utilizing inputs that are primarily based upon internally developed cash flow models and quoted market prices, discounted at an appropriate weighted average cost of capital. As a result, the Company recognized impairments of $77,447 related to the write-down of value of certain operating lease right-of-use assets, primarily the railcars, to their estimated fair value. Goodwill As of September 30, 2019, we performed our annual assessment of the recoverability of goodwill. As part of the Company's annual assessment of goodwill, we updated our internal business outlook for the Company, including the logistics and wellsite operations reporting unit, to consider the current economic environment that affects our operations. As part of the first step of goodwill impairment testing, we prepared a quantitative analysis of the fair value of the goodwill, based on the weighted average valuation of the reporting unit across several income valuation approaches. The underlying results of the valuation were driven by our actual results since the acquisition dates, and the pricing, cost structures and market conditions existing as of September 30, 2019. Other key estimates, assumptions and inputs used in the valuation included long-term growth rates, discount rates, terminal values, valuation multiples and relative valuations when comparing the reporting unit to similar businesses or asset bases. Specific uncertainties affecting our estimated fair value include the impact of competition, pricing for logistics and wellsite operations, future overall activity levels and demand for frac sand and related logistics services, activity levels of our significant customers and other factors affecting the rate of our future growth. As a result, we determined that the carrying value of goodwill exceeded its fair value and therefore we recognized an impairment of $35,657 associated with the goodwill that was allocated in the acquisitions of FB Industries and Proppant Logistics. Intangible Assets During the year ended December 31, 2019, we completed an impairment assessment of the intangible assets associated with the customer relationships, the trade name and trademarks acquired with the FB Industries acquisition. As a result, we determined that the fair value of the intangibles was less than their carrying value, resulting in an impairment of $12,973 |
(Note)
(Note) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes As a result of the Conversion completed on May 31, 2019, the Company converted from an entity treated as a partnership for U.S. federal income tax purposes to an entity treated as a corporation for U.S. federal income tax purposes and is therefore subject to U.S. federal, foreign and state and local corporate income tax. The Conversion resulted in the Company recording a partial step-down in the tax basis of certain assets. On the date of the Conversion, we recorded an estimated net tax expense and estimated net deferred tax liability of $115,488 relating to the Conversion as well as this partial step-down in tax basis. Our overall tax provision is based on, among other things, an estimate of the amount of such partial step-down in tax basis that is derived from an analysis of the basis of our unitholders in their ownership of Hi-Crush common units at December 31, 2018. Income (loss) before income taxes consists of the following: 2019 U.S. $ (376,163 ) Foreign 5,374 Net loss not subject to federal income tax (12,145 ) Income (loss) before income tax $ (382,934 ) Income tax expense (benefit) consists of the following: 2019 Current tax expense (benefit) Foreign $ 1,057 Total current tax expense 1,057 Deferred tax expense (benefit) Federal (77,932 ) State (8,514 ) Foreign 526 Total deferred tax benefit (85,920 ) Deferred tax resulting from conversion to a corporation 115,488 Income tax expense (benefit) $ 30,625 Reconciliation of the U.S. federal statutory income tax rate to the Company's effective tax rate (excluding deferred taxes from conversion to a corporation) is as follows: 2019 Statutory federal rate 21.0 % Benefit on loss not subject to federal income tax (0.6 )% State taxes (net) 2.2 % Other (0.4 )% Effective tax rate 22.2 % Significant components of deferred tax assets and liabilities as of December 31, 2019 are as follows: 2019 Deferred tax assets Federal NOL carryforward $ 10,384 Disallowed business interest carryforward 6,235 Operating lease liabilities 25,783 Asset retirement obligations 2,615 Other 1,619 46,636 Deferred tax liabilities Property, plant and equipment 63,651 Operating lease right-of-use assets 10,835 Other 2,147 76,633 Net deferred tax liabilities $ 29,997 At December 31, 2019, we had federal net operating loss ("NOL") carryforwards of approximately $45,000 . The associated deferred tax assets related to these NOL carryforwards were $10,384 . As a result of the Tax Act, the 2019 federal NOL carryforward has no expiration and are limited to offset 80% of taxable income per year. Management believes it is more likely than not that the deferred tax asset will be fully utilized. As of December 31, 2019, the Company does no t have any unrecognized tax benefits and does no t anticipate any unrecognized tax benefits during the next twelve months. |
Concentration of Credit Risk
Concentration of Credit Risk | 12 Months Ended |
Dec. 31, 2019 | |
Risks and Uncertainties [Abstract] | |
Concentration of Credit Risk | Concentration of Credit Risk The Company is a fully-integrated provider of proppant and logistics services for hydraulic fracturing operations, offering frac sand production, advanced wellsite storage systems, flexible last mile services, and innovative software for real-time visibility and management mainly used by the oil and natural gas industry. The Company’s business is, therefore, dependent upon economic activity within this market. The following table provides our significant customers that had sales greater than 10% for the years ended December 31, 2019 , 2018 and 2017 : Year Ended December 31, 2019 2018 2017 Customer A 23 % 22 % * Customer B * 16 % 26 % Customer C * * 11 % Customer D 13 % * * Customer E 11 % * * * Less than 10% Throughout 2019 , the Company 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, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) As discussed in Note 1 - Business and Organization , the Sponsor Contribution was accounted for as a transaction between entities under common control. Therefore, the Company's historical financial information has been recast to include the sponsor and general partner for all periods presented. 2019 First Quarter Second Quarter Third Quarter (a) Fourth Quarter (a) Total Revenues $ 159,910 $ 178,001 $ 172,972 $ 125,487 $ 636,370 Gross profit 18,116 22,667 15,192 7,333 63,308 Income (loss) from operations 3,267 5,833 (340,569 ) (15,316 ) (346,785 ) Net loss (6,207 ) (117,484 ) (268,497 ) (21,371 ) (413,559 ) Loss per common share: Basic $ (0.06 ) $ (1.16 ) $ (2.67 ) $ (0.21 ) $ (4.10 ) 2018 Revenues $ 218,113 $ 248,520 $ 213,972 $ 162,235 $ 842,840 Gross profit 68,331 83,507 56,148 18,596 226,582 Income (loss) from operations 55,738 69,534 39,759 (1,040 ) 163,991 Net income (loss) 53,431 66,956 27,138 (9,930 ) 137,595 Earnings (loss) per limited partner unit: Basic $ 0.60 $ 0.68 $ 0.30 $ (0.08 ) $ 1.46 (a) The third and fourth quarter of 2019 includes $346,384 and $11,110 of asset impairments, respectively. Refer to Note 18 - Asset Impairments for additional disclosure. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, 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, 2019 $ 1,060 $ — $ — $ 1,060 Year Ended December 31, 2018 $ 1,060 $ — $ — $ 1,060 Year Ended December 31, 2017 $ 1,549 $ — $ (489 ) $ 1,060 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of the financial statements in conformity with 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 their impact on calculating our depreciation and depletion expense under the units-of-production depreciation method, estimates of fair value for reporting units and asset impairments (including impairments of goodwill and other long-lived assets), estimating potential loss contingencies, inventory valuation, valuation of stock-based compensation, valuation of right-of-use assets (including potential impairments) and lease liabilities, estimated fair value of contingent consideration in the future, the determination of income tax provisions 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, which relate to sales of frac sand, related services and the sale of logistics equipment for which credit is extended based on the customer’s credit history, are recorded at the invoiced amount and do not bear interest. The Company regularly reviews the collectability of accounts receivable. When it is probable that all or part of an outstanding balance will not be collected, the Company establishes or adjusts an allowance as necessary, generally 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 each of December 31, 2019 and 2018 , the Company maintained an allowance for doubtful accounts of $1,060 . Revenues recognized in advance of invoice issuance create assets referred to as "unbilled receivables." Any portion of our unbilled receivables for which our right to consideration is conditional on a factor other than the passage of time is considered a contract asset. Unbilled receivables are presented on a combined basis with accounts receivable and are converted to trade receivables once billed. |
Debt Issuance Costs | Debt Issuance Costs 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 $1,631 , $1,164 and $2,022 for the years ended December 31, 2019 , 2018 and 2017 , respectively. Debt issuance costs related to a recognized debt liability are presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. Debt issuance costs associated with a revolving credit facility are maintained in other assets. During 2018, in connection with the private placement of $450,000 aggregate principal amount of its 9.50% senior unsecured notes due 2026 (the "Senior Notes") and a senior secured revolving credit facility (the "ABL Credit Facility"), the Company incurred debt issuance costs of $12,067 that were capitalized. As of December 31, 2019 and 2018 , the Company maintained unamortized debt issuance costs of $8,138 and $9,375 within long-term debt, respectively and $1,412 and $1,953 |
Inventories | Inventories Sand inventory is stated at the lower of cost or net realizable value using the average cost method. Inventory manufactured at our production 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 net realizable value. 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. Payments to third parties for silo systems and other equipment manufactured for sale to third parties is included in inventory as work-in-process until completed and ready for delivery to the customer, at which time it is classified as finished goods inventory. Silo systems and equipment for sale to third parties is stated at the lower of cost or net realizable value using the average cost method. |
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 on the Consolidated 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: Rail spurs and asset retirement obligations 17-35 years Rail and rail equipment 7-20 years Equipment 5-10 years Computer equipment 3-5 years Furniture and fixtures 7 years Vehicles 5-7 years Transload facilities and equipment 5-25 years Last mile equipment 5-10 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 long-lived assets, including property, plant and equipment is evaluated if events or circumstances indicate the impairment of an asset may exist, based on reporting units, which management has defined as the mine and terminal operations and the logistics and wellsite operations. Estimated future undiscounted net cash flows are calculated using estimates, including but not limited to estimates of proven and probable sand reserves, estimated future sales prices (considering historical and current prices, price trends and related factors), operating costs and anticipated capital expenditures. Reductions in the carrying value of our long-lived assets 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 to which the remaining carrying value of our long-lived assets 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 other long-lived assets. Management’s estimates of future sales prices, recoverable proven and probable reserves, asset utilization and operating and capital costs, among other estimates, are subject to certain risks and uncertainties which may affect the recoverability of our investments in long-lived assets. 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 assets. |
Leases | Leases On January 1, 2019, we adopted Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842) using the modified retrospective transition method, utilizing the simplified transition option available, which allows entities to continue to apply the legacy guidance in Topic 840 , Leases , including its disclosure requirements, in the comparative periods presented in the year of adoption. We have elected to apply certain practical expedients, whereby we will not reassess (i) whether any expired or existing contracts are or contain leases, (ii) the lease classification for any expired or existing leases and (iii) initial direct costs for any existing leases. Upon adoption of the new leasing standard on January 1, 2019, we recognized $135,480 of operating lease right-of-use assets, including any lease prepayments made, initial direct costs incurred and excludes lease incentives received, and $127,018 of related operating lease liabilities on the Consolidated Balance Sheet. The impact of adoption of the new leasing standard had no impact to the opening balance of retained earnings on the Consolidated Balance Sheet or to the Consolidated Statements of Operations. At inception of a contract, the Company determines if it includes a lease. The Company evaluates the lease against the lease classification criteria within Topic 842. If the direct financing or sales-type classification criteria are met, then the lease is accounted for as a finance lease. All other leases are accounted for as operating leases. When a lease is identified, a right-of-use asset and the corresponding lease liability are recorded on the Consolidated Balance Sheet. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. In the event a lease does not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease right-of-use assets also include any lease prepayments made, initial direct costs incurred and excludes lease incentives received. We generally do not include renewal or termination options in our assessment of the leases unless extension or termination for certain assets is deemed to be reasonably certain. For all leases with a term of 12 months or less, we elected the practical expedient to not recognize lease assets and liabilities. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Right-of-use assets are assessed periodically for impairment if events or circumstances occur that indicate the carrying amount of the asset may not be recovered. We monitor events and modifications of existing lease agreements that would require reassessment of the lease. When a reassessment results in the remeasurement of a lease liability, a corresponding adjustment is made to the carrying amount of the corresponding right-of-use asset. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill represents the excess of purchase price over the fair value of net assets acquired. The Company performs an assessment of the recoverability of goodwill as of September 30th 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. Our annual assessment of goodwill performed as of September 30, 2019 was prepared in accordance with ASU 2017-14, Simplifying the Test for Goodwill Impairment , which eliminates step two from the goodwill impairment test . The Company amortizes the cost of other intangible assets on a straight line basis over their estimated useful lives, ranging from 1 to 15 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 2019, we completed an impairment assessment of the intangible assets associated with the customer relationships, the trade name and trademarks acquired with the FB Industries acquisition. |
Equity Method Investments | Equity Method Investments The Company accounts for investments that 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 Company's net income and contributions made, and decreased by any allocated share of the Company's net losses and distributions received. The Company's allocated share of income and losses are based on the rights and priorities outlined in the equity investment agreement. |
Contingent Consideration | Contingent Consideration Accounting standards require that contingent consideration be recorded at fair value at the date of acquisition and revalued during subsequent reporting dates under the acquisition method of accounting. The estimated fair value of contingent consideration is recorded as other liabilities on the Consolidated Balance Sheet. The estimate of fair value of a contingent consideration obligation requires subjective assumptions to be made regarding future business results, discount rates and probabilities assigned to various potential business result scenarios. Any adjustments to fair value are recognized in earnings in the period identified. Refer to Note 12 - Commitments and Contingencies for additional disclosure regarding contingent consideration. Contingent consideration arrangements entered into in connection with acquisitions between entities under common control are valued at fair value at the date of acquisition and any differences between the original estimated fair value, and the actual resulting payments in the future are reflected as an equity adjustment to the deemed distributions associated with the acquisitions. |
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 We generate frac sand revenues from the sale of raw frac sand that our customers purchase for use in the oil and natural gas industry. 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 2020 and 2024 . The agreements define, among other commitments, the volume of product that the Company must provide and the volume that the customer must purchase by the end of the defined periods. Pricing structures under our agreements are in many cases subject to certain contractual adjustments and consist of a combination of negotiated pricing and fixed pricing. These arrangements may undergo negotiations regarding pricing and volume requirements, which may occur in volatile market conditions. We also sell sand through individual purchase orders executed on the spot market, at prices and other terms determined by the existing market conditions as well as the specific requirements of the customer. We typically invoice our frac sand customers as the product is delivered and title transfers to the customer, with standard collection terms of net 30 days. Frac sand sales revenues are recognized at the point in time following the transfer of control to the customer when legal title passes, which may occur at the production facility, rail origin, terminal or wellsite. Revenue recognition is driven by the execution and delivery of frac sand by the Company to the customer, which is initiated by the customer placing an order for frac sand, the Company accepting and processing the order, and the physical delivery of sand at the location specified by the customer. At that point in time, 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 as other revenue at the end of the defined period when collectability is certain. Customer prepayments in excess of customer obligations remaining on account upon the expiration or termination of a contract are recognized as other operating income during the period in which the expiration or termination occurs. During the year ended December 31, 2017, the Company recognized $3,554 related to a contract dispute that was subsequently resolved, which is included in other operating expenses, net on our Consolidated Statements of Operations. We generate other revenues primarily through the performance of our logistics and wellsite operations and services, which includes transportation, equipment rental, and labor services, as well as through activities performed at our in-basin terminals, including transloading sand for counterparties, and lease of storage space. Transportation services typically consist of transporting proppant from storage facilities to the wellsite and are contracted through work orders executed under established pricing agreements. The amount invoiced reflects the transportation services rendered. Equipment rental services provide customers with use of our fleet equipment for either contractual periods defined through formal agreements or for work orders under established pricing agreements. The amounts invoiced reflect either the contractual monthly minimum, or the length of time the equipment was utilized in the billing period. Labor services provide customers with supervisory, logistics, or field personnel through formal agreements or work orders executed under established pricing agreements. The amounts invoiced reflect either the contractual monthly minimum, or the amount of time our labor services were utilized in the billing period. We typically invoice our customers as product is delivered and services are rendered, with standard collection terms of net 30 days. We recognize revenue for our logistics and wellsite operations and services and other revenues as title of the product transfers and the services have been rendered and completed. At that point in time, delivery of service has occurred, evidence of a contractual arrangement exists and collectability is reasonably assured. Deferred Revenues |
Fair Value Measurements | Fair Value Measurements 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 Company's financial assets and liabilities are measured using inputs from the three levels of the fair value hierarchy, which are as follows: • Level 1 - observable inputs such as quoted prices in active markets; • Level 2 - inputs other than quoted prices in active markets that we can directly or indirectly observe to the extent that the markets are liquid for the relevant settlement periods; and • Level 3 - unobservable inputs in which little or no market data exists, therefore inputs reflect the Company's assumptions. The fair value of the Senior Notes approximated $209,250 as of December 31, 2019 , based on the market price quoted from external sources, compared with a carrying value of $450,000 . If the Senior Notes were measured at fair value in the financial statements, it would be classified as Level 2 in the fair value hierarchy. We measure the contingent consideration liability recognized in connection with the acquisition of FB Industries at fair value on a recurring basis using unobservable inputs and it would be classified as Level 3 in the fair value hierarchy. Refer to Note 12 - Commitments and Contingencies for additional disclosure regarding contingent consideration. |
Income Taxes | Income Taxes As a result of the Conversion completed on May 31, 2019, the Company converted from an entity treated as a partnership for U.S. federal income tax purposes to an entity treated as a corporation for U.S. federal income tax purposes and is therefore subject to U.S. federal, foreign and state and local corporate income tax. The Conversion resulted in the Company recording a partial step-down in the tax basis of certain assets. On the date of the Conversion, we recorded an estimated net tax expense and estimated net deferred tax liability of $115,488 relating to the Conversion as well as this partial step-down in tax basis. Our overall tax provision is based on, among other things, an estimate of the amount of such partial step-down in tax basis that is derived from an analysis of the basis of our unitholders in their ownership of Hi-Crush common units at December 31, 2018, and estimated asset values at the time of the Conversion. While this information does not completely reflect the actual basis of our unitholders at May 31, 2019, our estimate is based on our best estimate of the individual asset valuations and the most recent unitholder basis information available to us. The amount of partial step-down in tax basis cannot be finally determined until complete trading information with respect to Hi-Crush common units for the five months ended May 31, 2019 becomes available. The Company does not currently expect such information to become available until the first quarter of 2020 and the timing and the availability of this information is not within the Company’s control. Since the unitholder basis information currently available to us does not completely reflect the actual basis of our unitholders at May 31, 2019, the amount of the partial step-down in tax basis as finally determined is expected to differ, possibly materially, from the current estimate, which in turn is expected to cause the Company’s income tax provision and effective tax rate under GAAP to differ, possibly to a material extent, from the current estimate described herein. If the amount of the partial step-down in tax basis as finally determined is lower than the current estimate, the Company would record a lower net tax expense and an incrementally lower deferred tax liability, which would have the effect of decreasing the amount of taxes payable by the Company in the future. If the amount of partial step-down in tax basis as finally determined is higher than the current estimate, the Company would record a higher net tax expense and an incrementally higher deferred tax liability, which would have the effect of increasing the amount of taxes payable by the Company in the future. Excluding day one deferred taxes related to the Conversion and the Company's pre-tax loss for the five months ended May 31, 2019, the Canadian operations income for the five months ended May 31, 2019 and the consolidated income for the months of June through December 2019 were subject to corporate tax at an estimated effective tax rate of approximately 22.2% . The effective tax rate differs from the statutory rate primarily due to the following: (i) the tax expense recognized as a result of the partial step-down in tax basis of certain assets as a result of the Conversion as described above, (ii) the tax expense recognized that relates to the post-conversion book income, (iii) state income taxes, (iv) the impact of current year acquisitions, (v) certain compensation charges attributable to the Company that are not deductible for tax purposes, and (vi) certain book expenses that are not deductible for tax purposes. Prior to the Conversion, the Company was a pass-through entity and was not considered a taxable entity for federal tax purposes. Therefore, there is not a provision for income taxes for U.S. federal or certain other state jurisdictions in the accompanying Consolidated Financial Statements prior to May 31, 2019. Deferred Income Taxes Income taxes are accounted for using the asset and liability method of accounting. Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences of differences between the carrying amounts of assets and liabilities and their respective tax basis, using tax rates in effect for the year in which the differences are expected to reverse. The effect on deferred assets and liabilities of a change in tax rates is recognized in the Consolidated Statements of Operations in the period when the change is enacted. Deferred tax assets are reduced by a valuation allowance when, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. When evaluating the realizability of the deferred tax assets, all evidence, both positive and negative, is considered. Items considered when evaluating the need for a valuation allowance include the ability to carry back losses, future reversals of existing temporary differences, tax planning strategies, and expectations of future earnings. For a particular tax‑paying component of an entity and within a particular tax jurisdiction, deferred tax assets and liabilities are offset and presented as a single amount, as applicable, in the accompanying statements of financial condition. |
Foreign Currency Translation | Foreign Currency Translation The Company records foreign currency translation adjustments from the process of translating the functional currency of the financial statements of its foreign subsidiary into the U.S. dollar reporting currency. The Canadian dollar is the functional currency of the Company's foreign subsidiary as it is the primary currency within the economic environment in which the subsidiary operates. Assets and liabilities of the subsidiary's operations are translated into U.S. dollars at the rate of exchange in effect on the balance sheet date and income and expenses are translated at the average exchange rate in effect during the reporting period. Adjustments resulting from the translation of the subsidiary's financial statements are reported in other comprehensive income. |
Recent Accounting Pronouncements | Recent Accounting Pronouncement s In December 2019, the Financial Accounting Standards Board ("FASB") issued ASU 2019-12, Income Taxes (Topic 740) , which affects general principles within Topic 740, and are meant to simplify and reduce the cost of accounting for income taxes. It removes certain exceptions to the general principles in Topic 740 and simplifies areas including franchise taxes that are partially based on income, transactions with a government that result in a step up in the tax basis of goodwill, the incremental approach for intraperiod tax allocation, interim period income tax accounting for year-to-date losses that exceed anticipated losses and enacted changes in tax laws in interim periods. The changes are effective for annual periods beginning after December 15, 2020. The Company is currently assessing the impact that adopting this new accounting guidance will have on its Consolidated Financial Statements and footnote disclosures. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) , which modifies disclosure requirements for fair value measurements by removing the disclosure of the valuation process for Level 3 fair value measurements, among other disclosure modifications. The guidance is effective for the Company beginning after December 15, 2019, although early adoption is permitted. Companies are permitted to remove or modify disclosures upon issuance while delaying adoption of the additional disclosures. The Company adopted ASU 2018-13 on January 1, 2020 and it did not have a material impact on our Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350) , which simplifies the test for goodwill impairment. To simplify the subsequent measurement of goodwill, the Board eliminated Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The Company adopted this standard on July 1, 2019 and has applied the new accounting standard to its annual goodwill impairment test as of September 30, 2019. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments . This ASU requires entities to measure all expected credit losses for most financial assets held at the reporting date based on an expected loss model which includes historical experience, current conditions, and reasonable and supportable forecasts. Entities will now use forward-looking information to better form their credit loss estimates. This ASU also requires enhanced disclosures to help financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity’s portfolio. ASU 2016-13 is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal periods. The Company adopted ASU 2016-13 on January 1, 2020 and it did not have a material impact on our Consolidated Financial Statements. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
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: Rail spurs and asset retirement obligations 17-35 years Rail and rail equipment 7-20 years Equipment 5-10 years Computer equipment 3-5 years Furniture and fixtures 7 years Vehicles 5-7 years Transload facilities and equipment 5-25 years Last mile equipment 5-10 years |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The final purchase price of $3,134 was allocated to the net assets acquired as follows: Net assets of BulkTracer as of January 18, 2019: Cash $ 15 Accounts receivable 53 Property, plant and equipment 3,129 Equity method investment in Proppant Express Investments, LLC 289 Accounts payable (86 ) Accrued and other current liabilities (166 ) Deferred revenues (100 ) Fair value of net assets acquired $ 3,134 The following table summarizes the carrying value of the Whitehall and Other Assets net assets as of March 15, 2017, and the allocation of the purchase price: Net assets of Hi-Crush Whitehall LLC and Other Assets as of March 15, 2017: Cash $ 198 Inventories 4,941 Prepaid expenses and other current assets 3 Property, plant and equipment 124,811 Accounts payable (938 ) Accrued and other current liabilities (386 ) Due to Hi-Crush Partners LP (2,615 ) Asset retirement obligation (1,716 ) Total carrying value of Whitehall and Other Assets net assets $ 124,298 Allocation of purchase price Carrying value of sponsor's non-controlling interest prior to Whitehall Contribution $ 119,108 Excess purchase price over the acquired interest (a) 34,892 Cost of Whitehall and Other Assets acquisition $ 154,000 (a) The deemed distribution attributable to the purchase price was allocated to the common unitholders and excludes the $14,000 estimated fair value of contingent consideration. The final purchase price of $74,292 was allocated to the net assets acquired as follows: Net assets of FB Industries as of August 1, 2018: Cash $ 20,015 Accounts receivable 2,540 Inventories 13,416 Goodwill and intangible assets 71,723 Prepaid expenses and other current assets 2,202 Property, plant and equipment 1,868 Accounts payable (1,628 ) Deferred revenues (13,004 ) Accrued and other current liabilities (13,988 ) Deferred tax liabilities (429 ) Contingent consideration (8,423 ) Fair value of net assets acquired $ 74,292 The final purchase price of $16,045 was allocated to the net assets acquired as follows: Net assets of Proppant Logistics as of May 7, 2019: Cash $ 1,841 Accounts receivable 7,951 Prepaid expenses and other current assets 782 Property, plant and equipment 205 Other assets 247 Goodwill and intangible assets 15,662 Accounts payable (7,047 ) Accrued and other current liabilities (359 ) Credit facility (3,237 ) Fair value of net assets acquired $ 16,045 The following table summarizes the carrying value of the sponsor and general partner's net assets as of October 21, 2018, and the allocation of the purchase price: Net assets of the sponsor and general partner as of October 21, 2018: Cash $ 1,314 Accounts receivable 29 Due from Hi-Crush Partners LP 1,446 Prepaid expenses and other current assets 3,132 Property, plant and equipment 2,087 Accounts payable (2,236 ) Accrued and other current liabilities (2,562 ) Current portion of long-term debt (2,259 ) Other liabilities (86 ) Total carrying value of sponsor and general partner net assets $ 865 Allocation of purchase price Carrying value of sponsor's non-controlling interest prior to Sponsor Contribution $ (453,028 ) Excess purchase price over the acquired interest 453,028 Common control cost of sponsor and general partner acquisition $ — |
Schedule Of Total Purchase Consideration, Asset Acquisition | The following table summarizes the total purchase consideration: Cash paid to sellers $ 200,000 Issuance of common units to sellers 62,242 Transactions costs associated with the acquisition 830 Cost of Permian Basin Sand acquisition $ 263,072 |
Business Acquisition, Recast Financial Information | The following tables present, on a supplemental basis, our recast revenues, net income, net income attributable to Hi-Crush and net income per limited partner unit giving effect to the Sponsor Contribution and Whitehall Contribution, as reconciled to the revenues, net income, net income attributable to Hi-Crush and net income per limited partner unit of the Company. Year Ended December 31, 2018 Company Historical Sponsor and General Partner through Eliminations Company Recast (Supplemental) Revenues $ 842,840 $ — $ — $ 842,840 Net income (loss) $ 140,790 $ (3,195 ) $ — $ 137,595 Net income (loss) attributable to Hi-Crush $ 140,790 $ (3,195 ) $ — $ 137,595 Net income per limited partner unit - basic $ 1.46 $ 1.42 Year Ended December 31, 2017 Company Historical Sponsor and General Partner Whitehall and Other Assets through Eliminations Company Recast (Supplemental) Revenues $ 602,623 $ — $ — $ — $ 602,623 Net income (loss) $ 83,979 $ (6,372 ) $ (1,366 ) $ (79 ) $ 76,162 Net income (loss) attributable to Hi-Crush $ 84,005 $ (6,372 ) $ (1,392 ) $ (79 ) $ 76,162 Net income per limited partner unit - basic $ 0.97 $ 0.88 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | Inventories consisted of the following: December 31, 2019 2018 Raw material $ 273 $ 512 Work-in-process 17,541 29,180 Finished goods 18,341 24,872 Spare parts 3,819 2,525 Inventories $ 39,974 $ 57,089 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Components of Property, Plant and Equipment | Property, plant and equipment consisted of the following: December 31, 2019 2018 Buildings $ 28,178 $ 32,751 Mining property and mine development 352,661 390,296 Plant and equipment 325,625 472,892 Rail and rail equipment 31,886 55,913 Transload facilities and equipment 101,395 118,982 Last mile equipment (a) 86,922 66,083 Construction-in-progress 13,590 21,796 Property, plant and equipment 940,257 1,158,713 Less: Accumulated depreciation and depletion (129,351 ) (127,525 ) Property, plant and equipment, net $ 810,906 $ 1,031,188 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Supplemental Balance Sheet Information Related to Leases | As of December 31, 2019 , the balance sheet information related to leases are as follows: Classification December 31, 2019 Right-of-use assets Operating leases Operating lease right-of-use assets $ 44,086 Finance leases Property, plant and equipment, net 2,090 Total right-of-use assets $ 46,176 Lease liabilities Current Operating leases Current portion of operating lease liabilities $ 30,191 Finance leases Accrued and other current liabilities 339 Non-current Operating leases Operating lease liabilities 79,924 Finance leases Other liabilities 1,532 Total lease liabilities $ 111,986 |
Schedule of the Weighted Average Remaining Lease Term | The weighted average remaining lease term and discount rate as of December 31, 2019 related to leases are as follows: Operating leases Finance leases Weighted average remaining lease term 4.6 years 4.7 years Weighted average discount rate 9.50 % 7.75 % |
Schedule of Components of Lease Costs | The lease cost components on our Consolidated Statement of Operations for the year ended December 31, 2019 are as follows: Year Ended Classification December 31, 2019 Operating leases Operating lease cost Cost of goods sold $ 38,831 Short-term lease cost Cost of goods sold 2,614 Operating lease cost General and administrative expenses 515 Short-term lease cost General and administrative expenses 510 Right-of-use asset impairments Asset impairments 77,447 Total operating lease costs $ 119,917 Finance leases Amortization of finance lease assets Cost of goods sold 110 Interest on lease liabilities Interest expense 39 Total finance lease costs $ 149 |
Schedule Of Supplemental Cash Flow Information Related To Leases | Supplemental cash flow information related to our leases for the year ended December 31, 2019 is as follows: Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows used for operating leases $ 40,609 Financing cash flow used for finance leases $ 329 Right-of-use assets obtained in exchange for operating lease liabilities (a) $ 151,853 Right-of-use assets obtained in exchange for finance lease liabilities $ 2,200 (a) Excludes the $77,447 of impairments on operating right-of-use assets incurred during 2019. |
Schedule of Lease Liabilities Maturity | As of December 31, 2019 , the maturities of lease liabilities are as follows: Fiscal Year Operating Leases Finance Leases Total 2020 $ 39,022 $ 472 $ 39,494 2021 33,239 472 33,711 2022 25,072 472 25,544 2023 12,027 472 12,499 2024 7,719 354 8,073 Thereafter 18,651 — 18,651 Total lease payments 135,730 2,242 137,972 Less: interest (25,615 ) (371 ) (25,986 ) Total lease liabilities $ 110,115 $ 1,871 $ 111,986 |
Schedule of Lease Liabilities Maturity | As of December 31, 2019 , the maturities of lease liabilities are as follows: Fiscal Year Operating Leases Finance Leases Total 2020 $ 39,022 $ 472 $ 39,494 2021 33,239 472 33,711 2022 25,072 472 25,544 2023 12,027 472 12,499 2024 7,719 354 8,073 Thereafter 18,651 — 18,651 Total lease payments 135,730 2,242 137,972 Less: interest (25,615 ) (371 ) (25,986 ) Total lease liabilities $ 110,115 $ 1,871 $ 111,986 |
Schedule of Future Minimum Operating Lease Payments | As of December 31, 2018, future minimum operating lease payments are as follows: Fiscal Year Operating Leases 2019 $ 36,019 2020 36,282 2021 29,272 2022 20,890 2023 10,280 Thereafter 31,066 $ 163,809 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2017 $ — $ 8,416 FB Industries acquisition additions 22,876 46,767 Impact of foreign currency translation (995 ) (2,115 ) Amortization expense — (3,374 ) Balance at December 31, 2018 21,881 49,694 FB Industries acquisition measurement period adjustment 2,080 — Proppant Logistics acquisition additions 10,701 4,961 Impact of foreign currency translation 995 2,115 Asset impairments (Note 18) (35,657 ) (12,973 ) Amortization expense — (5,656 ) Balance at December 31, 2019 $ — $ 38,141 |
Intangible Assets, Arising from Acquisitions | Intangible assets arising from the acquisitions of Proppant Logistics in 2019, FB Industries in 2018 and D&I Silica, LLC in 2013 consisted of the following: December 31, Useful life 2019 2018 Patents 15 years $ 31,042 $ 29,620 Customer contracts and relationships 1-10 years 23,093 28,724 Supplier agreements 1 year 784 784 Other intangible assets 1-5 years 1,961 5,888 Intangible assets 56,880 65,016 Less: Accumulated amortization (18,739 ) (15,322 ) Intangible assets, net $ 38,141 $ 49,694 |
Future Amortization Expense of Intangible Assets | As of December 31, 2019 , future amortization is as follows: Fiscal Year Amortization 2020 $ 4,345 2021 4,345 2022 4,345 2023 2,628 2024 2,566 Thereafter 19,912 $ 38,141 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investments | The following table provides our net investments and the proportionate share of our equity method investments operating results: Investment Earnings (loss) from Equity Method Investments December 31, Year Ended December 31, 2019 2018 2019 2018 2017 Proppant Express Investments, LLC $ 37,173 $ 30,870 $ 6,014 $ 5,300 $ 75 Proppant Logistics LLC (through May 6, 2019) — 6,484 (1 ) (116 ) — Total $ 37,173 $ 37,354 $ 6,013 $ 5,184 $ 75 |
Accrued and Other Current Lia_2
Accrued and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Components of Accrued and Other Current Liabilities | Accrued and other current liabilities consisted of the following: December 31, 2019 2018 Accrued royalty payments $ 2,358 $ 6,429 Accrued logistics costs 8,478 10,422 Accrued compensation and benefits 6,529 12,144 Accrued taxes payable 3,915 10,917 Accrued interest payable 18,188 18,464 Current portion of contingent consideration 400 — Other current liabilities 2,950 2,961 Accrued and other current liabilities $ 42,818 $ 61,337 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Components of Long-Term Debt | Long-term debt consisted of the following: December 31, 2019 2018 Senior Notes due 2026 $ 450,000 $ 450,000 ABL Credit Facility — — Other notes payable 6,105 4,852 Less: Unamortized debt issuance costs (8,138 ) (9,375 ) Total debt 447,967 445,477 Less: Current portion of long-term debt (2,628 ) (2,194 ) Long-term debt $ 445,339 $ 443,283 |
Schedule of Maturities of Long-term Debt | As of December 31, 2019 , future minimum debt repayments, excluding debt issuance costs, are as follows: Fiscal Year Amount 2020 $ 2,628 2021 168 2022 2,922 2023 195 2024 192 Thereafter 450,000 $ 456,105 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 Company maintained a post-closure reclamation and site restoration obligation as follows: December 31, 2019 2018 Beginning balance $ 10,677 $ 10,179 Additions and revisions to liabilities (207 ) — Accretion expense 494 498 Ending balance $ 10,964 $ 10,677 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Contractual Obligations | As of December 31, 2019 , future minimum purchase commitments are as follows: Fiscal Year 2020 $ 14,240 2021 14,740 2022 3,425 2023 3,295 2024 979 Thereafter 271 $ 36,950 |
Schedule of Changes in Fair Value of Contingent Consideration | The following table provides a summary of changes in the fair value of the contingent consideration: Balance at December 31, 2018 $ 8,147 Changes in estimated fair value of contingent consideration liability (7,747 ) Balance at December 31, 2019 $ 400 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule Of Common Stock Repurchases | The following table presents information with respect to repurchases of common shares made by the Company during the periods presented, which were retired upon repurchase: Year Ended December 31, 2019 2018 2017 Number of shares purchased 1,526,384 753,090 2,030,163 Average price paid per share including commission $ 2.23 $ 12.52 $ 9.85 Total cost $ 3,400 $ 9,426 $ 20,000 |
Schedule of Distributions | Our most recent distributions, prior to the Conversion, were as follows: Declaration Date Amount Declared Per Unit Record Date Payment Date Payment to Limited Partner Units Payment to the Holder of Incentive Distribution Rights October 16, 2017 $ 0.1500 October 31, 2017 November 14, 2017 $ 13,656 $ — January 17, 2018 $ 0.2000 February 1, 2018 February 13, 2018 $ 17,809 $ — April 18, 2018 $ 0.2250 May 1, 2018 May 15, 2018 $ 19,888 $ — July 20, 2018 $ 0.7500 August 3, 2018 August 14, 2018 $ 67,253 $ 7,664 October 21, 2018 $ 0.2250 November 1, 2018 November 14, 2018 $ 22,695 $ — |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table provides a reconciliation of net loss and the basic and diluted weighted average common shares outstanding for purposes of computing loss per share for the year ended December 31, 2019 : December 31, 2019 Net loss $ (413,559 ) Basic weighted average common shares outstanding 100,974,770 Potentially dilutive common shares — Diluted weighted average common shares outstanding 100,974,770 Loss per share - basic $ (4.10 ) Loss per share - diluted $ (4.10 ) |
Schedule of Net Income Attributable to Limited Partners | The following tables provide a reconciliation of net income, the assumed allocation of net income and the basic and diluted, weighted average limited partner units outstanding under the two-class method for purposes of computing earnings per limited partner unit for the years ended December 31, 2018 and 2017 : Year Ended December 31, 2018 General Partner and IDRs Limited Partner Units Total Declared distribution $ 7,664 $ 109,836 $ 117,500 Assumed allocation of earnings in excess of distributions — 20,095 20,095 Add back recast losses attributable to the sponsor and general partner through October 21, 2018 — 3,195 3,195 Assumed allocation of net income $ 7,664 $ 133,126 $ 140,790 Basic weighted average common units outstanding 91,248,042 Potentially dilutive common units 2,390,138 Diluted weighted average common units outstanding 93,638,180 Earnings per limited partner unit - basic $ 1.46 Earnings per limited partner unit - diluted $ 1.42 Year Ended December 31, 2017 General Partner and IDRs Limited Partner Units Total Declared distribution $ — $ 31,457 $ 31,457 Assumed allocation of earnings in excess of distributions — 44,705 44,705 Add back recast losses attributable to the sponsor and general partner — 6,372 6,372 Add back recast losses attributable to Whitehall and Other Assets through March 15, 2017 — 1,471 1,471 Assumed allocation of net income $ — $ 84,005 $ 84,005 Basic weighted average common units outstanding 86,518,249 Potentially dilutive common units 1,382,733 Diluted weighted average common units outstanding 87,900,982 Earnings per limited partner unit - basic $ 0.97 Earnings per limited partner unit - diluted $ 0.96 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Performance Share Units Activity | Units Grant Date Weighted-Average Fair Value per Unit Outstanding at December 31, 2018 747,920 $ 5.93 Vested (97,865 ) $ 16.63 Forfeited (82,801 ) $ 4.97 Outstanding at December 31, 2019 567,254 $ 4.56 |
Schedule of Restricted Stock Units Activity | The following table presents information relative to our RSUs: Units Grant Date Weighted-Average Fair Value per Unit Outstanding at December 31, 2018 1,642,218 $ 8.07 Vested (525,096 ) $ 10.93 Granted 538,968 $ 3.63 Forfeited (436,378 ) $ 6.45 Outstanding at December 31, 2019 1,219,712 $ 6.47 |
Schedule of Stock-Based Compensation Expense | The following table presents total stock-based compensation expense: Year Ended December 31, 2019 2018 2017 Performance Share Units $ 976 $ 1,371 $ 1,549 Restricted Stock Units 3,404 5,261 3,149 Director stock grants 246 474 499 Unit Purchase Programs — 333 517 Total compensation expense $ 4,626 $ 7,439 $ 5,714 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenues | The following table presents our revenues disaggregated by contractual relationships: Year Ended December 31, 2019 2018 2017 Sales to contract customers $ 310,374 $ 607,898 $ 438,547 Spot sales 122,092 88,705 159,808 Frac sand sales revenues 432,466 696,603 598,355 Other revenues 203,904 146,237 4,268 Total revenues $ 636,370 $ 842,840 $ 602,623 |
Changes in Deferred Revenues | The following table reflects the changes in our contract liabilities, which we classify as deferred revenues: Balance at December 31, 2018 $ 29,785 Collection of prepayments 8,750 Revenues recognized (12,651 ) Customer prepayments acquired in business acquisitions 90 Impact of foreign currency translation 54 Balance at December 31, 2019 $ 26,028 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedules of Related Party Transactions | The following table summarizes our related party transactions from our equity method investment (see Note 8 - Equity Method Investments ) for the periods indicated: Year Ended December 31, 2019 2018 2017 Revenues - related parties $ 220 $ — $ — Cost of goods sold - related parties (a) $ 9,183 $ 5,306 $ 1,577 Equipment purchases - related parties (b) $ 1,432 $ 4,646 $ 5,033 (a) The Company incurs lease expense for the use of PropX equipment. (b) The Company purchases equipment from PropX, which is reflected in property, plant and equipment on our Consolidated Balance Sheet. The following table summarizes our related party balance sheet components from our equity method investments as of the dates indicated: December 31, 2019 2018 Accounts payable - related parties $ 1,164 $ 1,070 Current portion of operating lease liabilities - related parties (a) $ 8,273 $ — Operating lease liabilities - related parties (a) 11,130 — $ 19,403 $ — (a) During the first quarter of 2019, the Company made a lease prepayment of $3,739 for the use of PropX equipment during the first half of 2019. |
Asset Impairments (Tables)
Asset Impairments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Asset Impairments [Abstract] | |
Schedule of Asset Impairments | Asset impairments for the year December 31, 2019 totaled $357,494 and was comprised of the following assets: Augusta facility, including work-in-process inventory $ 109,747 Whitehall facility 105,727 Terminal facilities 15,943 Operating lease right-of-use assets 77,447 Goodwill 35,657 Intangible assets associated with FB Industries acquisition 12,973 Asset impairments $ 357,494 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income (Loss) Before Income Taxes | Income (loss) before income taxes consists of the following: 2019 U.S. $ (376,163 ) Foreign 5,374 Net loss not subject to federal income tax (12,145 ) Income (loss) before income tax $ (382,934 ) |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense (benefit) consists of the following: 2019 Current tax expense (benefit) Foreign $ 1,057 Total current tax expense 1,057 Deferred tax expense (benefit) Federal (77,932 ) State (8,514 ) Foreign 526 Total deferred tax benefit (85,920 ) Deferred tax resulting from conversion to a corporation 115,488 Income tax expense (benefit) $ 30,625 |
Schedule of Effective Income Tax Rate Reconciliation | Reconciliation of the U.S. federal statutory income tax rate to the Company's effective tax rate (excluding deferred taxes from conversion to a corporation) is as follows: 2019 Statutory federal rate 21.0 % Benefit on loss not subject to federal income tax (0.6 )% State taxes (net) 2.2 % Other (0.4 )% Effective tax rate 22.2 % |
Schedule of Components of Deferred Tax Assets and Liabilities | Significant components of deferred tax assets and liabilities as of December 31, 2019 are as follows: 2019 Deferred tax assets Federal NOL carryforward $ 10,384 Disallowed business interest carryforward 6,235 Operating lease liabilities 25,783 Asset retirement obligations 2,615 Other 1,619 46,636 Deferred tax liabilities Property, plant and equipment 63,651 Operating lease right-of-use assets 10,835 Other 2,147 76,633 Net deferred tax liabilities $ 29,997 |
Concentration of Credit Risk (T
Concentration of Credit Risk (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Risks and Uncertainties [Abstract] | |
Schedule of Concentration of Credit Risk | The following table provides our significant customers that had sales greater than 10% for the years ended December 31, 2019 , 2018 and 2017 : Year Ended December 31, 2019 2018 2017 Customer A 23 % 22 % * Customer B * 16 % 26 % Customer C * * 11 % Customer D 13 % * * Customer E 11 % * * * Less than 10% |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Financial Data | As discussed in Note 1 - Business and Organization , the Sponsor Contribution was accounted for as a transaction between entities under common control. Therefore, the Company's historical financial information has been recast to include the sponsor and general partner for all periods presented. 2019 First Quarter Second Quarter Third Quarter (a) Fourth Quarter (a) Total Revenues $ 159,910 $ 178,001 $ 172,972 $ 125,487 $ 636,370 Gross profit 18,116 22,667 15,192 7,333 63,308 Income (loss) from operations 3,267 5,833 (340,569 ) (15,316 ) (346,785 ) Net loss (6,207 ) (117,484 ) (268,497 ) (21,371 ) (413,559 ) Loss per common share: Basic $ (0.06 ) $ (1.16 ) $ (2.67 ) $ (0.21 ) $ (4.10 ) 2018 Revenues $ 218,113 $ 248,520 $ 213,972 $ 162,235 $ 842,840 Gross profit 68,331 83,507 56,148 18,596 226,582 Income (loss) from operations 55,738 69,534 39,759 (1,040 ) 163,991 Net income (loss) 53,431 66,956 27,138 (9,930 ) 137,595 Earnings (loss) per limited partner unit: Basic $ 0.60 $ 0.68 $ 0.30 $ (0.08 ) $ 1.46 (a) The third and fourth quarter of 2019 includes $346,384 and $11,110 of asset impairments, respectively. Refer to Note 18 - Asset Impairments for additional disclosure. |
Business and Organization - Nar
Business and Organization - Narrative (Details) | May 31, 2019$ / sharesshares | Dec. 31, 2019segment$ / shares | Mar. 15, 2017 | Mar. 03, 2017a |
Business Acquisition [Line Items] | ||||
Number of operating segments | segment | 1 | |||
Number of common stock converted from common unit (shares) | shares | 1 | |||
Common stock, par value per share (in usd per share) | $ / shares | $ 0.01 | $ 0.01 | ||
Hi Crush Augusta LLC | ||||
Business Acquisition [Line Items] | ||||
Ownership interest acquired (percent) | 2.00% | |||
Permian Basin Sand Company, LLC | ||||
Business Acquisition [Line Items] | ||||
Acres of frac sand reserves acquired | a | 1,226 |
Significant Accounting Polici_4
Significant Accounting Policies - Narrative (Details) - USD ($) | May 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | Aug. 01, 2018 | |
Accounting Policies [Abstract] | |||||||
Allowance for doubtful accounts | $ 1,060,000 | $ 1,060,000 | |||||
Operating lease right-of-use assets | 44,086,000 | $ 135,480,000 | |||||
Operating lease liabilities | 110,115,000 | $ 127,018,000 | |||||
Other operating income | $ 3,554,000 | ||||||
Deferred tax resulting from conversion to a corporation | $ 115,488,000 | $ 115,488,000 | |||||
Estimated effective income tax rate (percent) | 22.20% | ||||||
Line of Credit Facility [Line Items] | |||||||
Amortization of debt issuance costs | $ 1,631,000 | 1,164,000 | 2,022,000 | [1] | |||
Capitalized loan origination costs | 12,067,000 | $ 4,731,000 | [1] | ||||
Carrying value of long-term debt | 456,105,000 | ||||||
Revolving Credit Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Unamortized debt issuance costs in other assets | $ 1,412,000 | 1,953,000 | |||||
Minimum | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Estimated useful life of intangible assets | 1 year | ||||||
Long-term Supply Agreements, expiration year | 2020 | ||||||
Maximum | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Estimated useful life of intangible assets | 15 years | ||||||
Long-term Supply Agreements, expiration year | 2024 | ||||||
Unsecured Debt | Senior Unsecured Notes Due 2026 | |||||||
Line of Credit Facility [Line Items] | |||||||
Senior unsecured notes due 2026 | $ 450,000,000 | ||||||
Interest rate under Senior Unsecured Notes (percent) | 9.50% | ||||||
Unamortized debt issuance costs in long-term debt | $ 8,138,000 | 9,375,000 | |||||
Fair value of the Senior Notes | 209,250,000 | ||||||
Carrying value of long-term debt | $ 450,000,000 | $ 450,000,000 | |||||
[1] | Financial information has been recast to include the results attributable to the sponsor and general partner. See Note 3 . |
Significant Accounting Polici_5
Significant Accounting Policies - Estimated Useful Lives of Property, Plant and Equipment (Details) | 12 Months Ended |
Dec. 31, 2019 | |
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 | 35 years |
Rail and rail equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property, plant and equipment | 7 years |
Rail and rail equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property, plant and equipment | 20 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 | 10 years |
Computer equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property, plant and equipment | 3 years |
Computer equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property, plant and equipment | 5 years |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property, plant and equipment | 7 years |
Vehicles | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property, plant and equipment | 5 years |
Vehicles | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property, plant and equipment | 7 years |
Transload facilities and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property, plant and equipment | 5 years |
Transload facilities and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property, plant and equipment | 25 years |
Last mile equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property, plant and equipment | 5 years |
Last mile equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property, plant and equipment | 10 years |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) $ in Thousands | May 07, 2019USD ($)shares | Jan. 18, 2019USD ($) | Oct. 21, 2018USD ($)shares | Aug. 01, 2018USD ($)shares | Mar. 15, 2017USD ($) | Mar. 03, 2017USD ($)ashares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | |
Business Acquisition [Line Items] | ||||||||||
Issuance of common units for a business acquisition (in units) | shares | 695,606 | 1,279,328 | ||||||||
Gain on remeasurement of equity method investment | $ 3,612 | $ 0 | $ 0 | [1] | ||||||
Percentage of total ownership acquired (percent) | 100.00% | |||||||||
Issuance of common units for business acquisition | 2,504 | 19,190 | ||||||||
Cash consideration net of cash and working capital adjustment for acquisition | 4,229 | 34,960 | $ 0 | [1] | ||||||
Issuance of common units for an asset acquisition (in units) | shares | 3,438,789 | |||||||||
Issuance of common units for asset acquisition | $ 62,242 | |||||||||
Proppant Logistics LLC | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Ownership interest acquired (percent) | 34.00% | |||||||||
Payments to acquire business, step two | $ 2,951 | |||||||||
Previous ownership percentage (percent) | 66.00% | |||||||||
Gain on remeasurement of equity method investment | 3,612 | |||||||||
Fair value of net assets acquired | $ 16,045 | |||||||||
Acquisition related costs | 312 | |||||||||
Proppant Logistics LLC | Common Units | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Issuance of common units for a business acquisition (in units) | shares | 695,606 | |||||||||
BulkTracer Holdings LLC | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Fair value of net assets acquired | $ 3,134 | |||||||||
Payments to acquire business | $ 3,134 | |||||||||
Acquisition related costs | $ 100 | |||||||||
Hi-Crush Proppants LLC | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Fair value of net assets acquired | $ 865 | |||||||||
Acquisition related costs | 3,810 | |||||||||
Hi-Crush Proppants LLC | Common Units | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Issuance of common units for a business acquisition (in units) | shares | 11,000,000 | |||||||||
FB Industries Inc. | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Fair value of net assets acquired | $ 74,292 | |||||||||
Payments to acquire business | 45,000 | |||||||||
Issuance of common units for business acquisition | 19,190 | |||||||||
Cash consideration net of cash and working capital adjustment for acquisition | 55,102 | |||||||||
Cash and working capital adjustment for acquisition | $ 10,102 | |||||||||
Acquisition related costs | 639 | |||||||||
FB Industries Inc. | Common Units | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Issuance of common units for a business acquisition (in units) | shares | 1,279,328 | |||||||||
Hi-Crush Whitehall LLC and Other Assets | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Fair value of net assets acquired | $ 124,298 | |||||||||
Payments to acquire business | 140,000 | |||||||||
Acquisition related costs | $ 588 | |||||||||
Business acquisition, maximum contingent consideration to pay | 65,000 | |||||||||
Estimated fair value of contingent consideration liability | $ 14,000 | |||||||||
Contingent consideration liability paid | $ 20,000 | |||||||||
Permian Basin Sand Company, LLC | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash paid to sellers | $ 200,000 | |||||||||
Issuance of common units for asset acquisition | $ 62,242 | |||||||||
Acres of frac sand reserves acquired | a | 1,226 | |||||||||
Cost of Permian Basin Sand acquisition | $ 263,072 | |||||||||
Permian Basin Sand Company, LLC | Common Units | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Issuance of common units for an asset acquisition (in units) | shares | 3,438,789 | |||||||||
[1] | Financial information has been recast to include the results attributable to the sponsor and general partner. See Note 3 . |
Acquisitions - Fair value of Pr
Acquisitions - Fair value of Proppant Logistics net assets acquired (Details) - Proppant Logistics LLC $ in Thousands | May 07, 2019USD ($) |
Business Acquisition [Line Items] | |
Cash | $ 1,841 |
Accounts receivable | 7,951 |
Prepaid expenses and other current assets | 782 |
Property, plant and equipment | 205 |
Other assets | 247 |
Goodwill and intangible assets | 15,662 |
Accounts payable | (7,047) |
Accrued and other current liabilities | (359) |
Credit facility | (3,237) |
Fair value of net assets acquired | $ 16,045 |
Acquisitions - Fair value of Bu
Acquisitions - Fair value of BulkTracer net assets acquired (Details) - BulkTracer Holdings LLC $ in Thousands | Jan. 18, 2019USD ($) |
Business Acquisition [Line Items] | |
Cash | $ 15 |
Accounts receivable | 53 |
Property, plant and equipment | 3,129 |
Equity method investment in Proppant Express Investments, LLC | 289 |
Accounts payable | (86) |
Accrued and other current liabilities | (166) |
Deferred revenues | (100) |
Fair value of net assets acquired | $ 3,134 |
Acquisitions - Carrying value o
Acquisitions - Carrying value of sponsor and general partner's assets and allocation of purchase price (Details) - Hi-Crush Proppants LLC $ in Thousands | Oct. 21, 2018USD ($) |
Business Acquisition [Line Items] | |
Cash | $ 1,314 |
Accounts receivable | 29 |
Due from Hi-Crush Partners LP | 1,446 |
Prepaid expenses and other current assets | 3,132 |
Property, plant and equipment | 2,087 |
Accounts payable | (2,236) |
Accrued and other current liabilities | (2,562) |
Current portion of long-term debt | (2,259) |
Other liabilities | (86) |
Total carrying value of net assets | (865) |
Carrying value of sponsor's non-controlling interest prior to the acquiree contribution | (453,028) |
Excess purchase price over the acquired interest | 453,028 |
Cost of acquisition | $ 0 |
Acquisitions - Fair value of FB
Acquisitions - Fair value of FB Industries Net Assets Acquired (Details) - FB Industries Inc. - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Aug. 01, 2018 |
Business Acquisition [Line Items] | |||
Cash | $ 20,015 | ||
Accounts receivable | 2,540 | ||
Inventories | 13,416 | ||
Goodwill and intangible assets | 71,723 | ||
Prepaid expenses and other current assets | 2,202 | ||
Property, plant and equipment | 1,868 | ||
Accounts payable | (1,628) | ||
Deferred revenues | (13,004) | ||
Accrued and other current liabilities | (13,988) | ||
Deferred tax liabilities | (429) | ||
Contingent consideration | $ (400) | $ (8,147) | (8,423) |
Fair value of net assets acquired | $ 74,292 |
Acquisitions - Summary of total
Acquisitions - Summary of total purchase consideration for Permian Basin Sand Acquisition (Details) - USD ($) $ in Thousands | Mar. 03, 2017 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||
Issuance of common units for asset acquisition | $ 62,242 | |
Permian Basin Sand Company, LLC | ||
Business Acquisition [Line Items] | ||
Cash paid to sellers | $ 200,000 | |
Issuance of common units for asset acquisition | 62,242 | |
Transaction costs associated with the acquisition | 830 | |
Cost of Permian Basin Sand acquisition | $ 263,072 |
Acquisitions - Carrying value_2
Acquisitions - Carrying value of Whitehall and Other Asset's assets and allocation of purchase price (Details) - Hi-Crush Whitehall LLC and Other Assets $ in Thousands | Mar. 15, 2017USD ($) | |
Business Acquisition [Line Items] | ||
Cash | $ 198 | |
Inventories | 4,941 | |
Prepaid expenses and other current assets | 3 | |
Property, plant and equipment | 124,811 | |
Accounts payable | (938) | |
Accrued and other current liabilities | (386) | |
Due to Hi-Crush Partners LP | (2,615) | |
Asset retirement obligation | (1,716) | |
Total carrying value of net assets | (124,298) | |
Carrying value of sponsor's non-controlling interest prior to the acquiree contribution | 119,108 | |
Excess purchase price over the acquired interest | 34,892 | [1] |
Cost of acquisition | $ 154,000 | |
[1] | The deemed distribution attributable to the purchase price was allocated to the common unitholders and excludes the $14,000 estimated fair value of contingent consideration. |
Acquisitions - Recast Financial
Acquisitions - Recast Financial Results (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | [1] | Sep. 30, 2019 | [1] | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | [1] | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Business Acquisition [Line Items] | |||||||||||||||
Revenues | $ 125,487 | $ 172,972 | $ 178,001 | $ 159,910 | $ 162,235 | $ 213,972 | $ 248,520 | $ 218,113 | $ 636,370 | $ 842,840 | $ 602,623 | [2] | |||
Net income (loss) | 137,595 | 76,162 | |||||||||||||
Net income (loss) attributable to Hi-Crush | $ (21,371) | $ (268,497) | $ (117,484) | $ (6,207) | $ (9,930) | $ 27,138 | $ 66,956 | $ 53,431 | $ (413,559) | $ 137,595 | $ 76,162 | [2] | |||
Earnings (loss) per share - basic (usd per share) | $ (0.21) | $ (2.67) | $ (1.16) | $ (0.06) | $ (0.08) | $ 0.30 | $ 0.68 | $ 0.60 | $ (4.10) | $ 1.46 | $ 0.97 | [2] | |||
Net income per limited partner unit - basic, pro forma (usd per unit) | $ 1.42 | $ 0.88 | |||||||||||||
Adjustment | Hi-Crush Proppants LLC | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Revenues | $ 0 | $ 0 | |||||||||||||
Net income (loss) | (3,195) | (6,372) | |||||||||||||
Net income (loss) attributable to Hi-Crush | (3,195) | (6,372) | |||||||||||||
Adjustment | Hi-Crush Whitehall LLC and Other Assets | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Revenues | 0 | ||||||||||||||
Net income (loss) | (1,366) | ||||||||||||||
Net income (loss) attributable to Hi-Crush | (1,392) | ||||||||||||||
Adjustment | Eliminations | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Revenues | 0 | 0 | |||||||||||||
Net income (loss) | 0 | (79) | |||||||||||||
Net income (loss) attributable to Hi-Crush | 0 | (79) | |||||||||||||
Previously Reported | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Revenues | 842,840 | 602,623 | |||||||||||||
Net income (loss) | 140,790 | 83,979 | |||||||||||||
Net income (loss) attributable to Hi-Crush | $ 140,790 | $ 84,005 | |||||||||||||
[1] | The third and fourth quarter of 2019 includes $346,384 and $11,110 of asset impairments, respectively. Refer to Note 18 - Asset Impairments for additional disclosure. | ||||||||||||||
[2] | Financial information has been recast to include the results attributable to the sponsor and general partner. See Note 3 . |
Inventories - Components of Inv
Inventories - Components of Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw material | $ 273 | $ 512 |
Work-in-process | 17,541 | 29,180 |
Finished goods | 18,341 | 24,872 |
Spare parts | 3,819 | 2,525 |
Inventories | $ 39,974 | $ 57,089 |
Property, Plant and Equipment -
Property, Plant and Equipment - Components of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 940,257 | $ 1,158,713 |
Less: Accumulated depreciation and depletion | (129,351) | (127,525) |
Property, plant and equipment, net | 810,906 | 1,031,188 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 28,178 | 32,751 |
Mining property and mine development | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 352,661 | 390,296 |
Plant and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 325,625 | 472,892 |
Rail and rail equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 31,886 | 55,913 |
Transload facilities and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 101,395 | 118,982 |
Last mile equipment (a) | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 86,922 | 66,083 |
Construction-in-progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 13,590 | $ 21,796 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Depreciation and depletion | $ 52,415 | $ 38,775 | $ 29,872 | |
Gain (loss) on disposal of fixed assets | 68 | $ (369) | $ (92) | [1] |
Augusta facility | ||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Long-lived asset impairments | 109,747 | |||
Inventory asset impairment | 6,858 | |||
Whitehall facility | ||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Long-lived asset impairments | 105,727 | |||
Terminal facilities | ||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Long-lived asset impairments | $ 15,943 | |||
[1] | Financial information has been recast to include the results attributable to the sponsor and general partner. See Note 3 . |
Leases - Narritave (Details)
Leases - Narritave (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Operating Leased Assets [Line Items] | |
Finance leases remaining term of contract | 4 years 8 months 12 days |
Operating lease right-of-use assets impairments | $ 77,447 |
Minimum | |
Operating Leased Assets [Line Items] | |
Operating leases remaining term of contract | 3 months 18 days |
Maximum | |
Operating Leased Assets [Line Items] | |
Operating leases remaining term of contract | 8 years 7 months 6 days |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 44,086 | $ 135,480 |
Finance lease right-of-use assets | 2,090 | |
Total right-of-use assets | 46,176 | |
Current portion of operating lease liabilities | 30,191 | |
Current portion of finance lease liabilities | 339 | |
Operating lease liabilities | 79,924 | |
Finance lease liabilities | 1,532 | |
Total lease liabilities | $ 111,986 |
Leases - Schedule of Weighted A
Leases - Schedule of Weighted Average Remaining Lease Term (Details) | Dec. 31, 2019 |
Leases [Abstract] | |
Operating leases, weighted average remaining lease term | 4 years 7 months 6 days |
Operating leases, weighted average discount rate | 9.50% |
Finance leases, weighted average remaining lease term | 4 years 8 months 12 days |
Finance leases, weighted average discount rate | 7.75% |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Costs (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Operating Leased Assets [Line Items] | |
Right-of-use asset impairments | $ 77,447 |
Total operating lease costs | 119,917 |
Total finance lease costs | 149 |
Cost of goods sold | |
Operating Leased Assets [Line Items] | |
Operating lease cost | 38,831 |
Short-term lease cost | 2,614 |
Amortization of finance lease assets | 110 |
General and administrative expenses | |
Operating Leased Assets [Line Items] | |
Operating lease cost | 515 |
Short-term lease cost | 510 |
Asset impairments | |
Operating Leased Assets [Line Items] | |
Right-of-use asset impairments | 77,447 |
Interest expense | |
Operating Leased Assets [Line Items] | |
Interest on lease liabilities | $ 39 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | [1] | ||
Leases [Abstract] | |||||
Operating cash flows used for operating leases | $ 40,609 | ||||
Financing cash flow used for finance leases | 329 | $ 0 | $ 0 | ||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | [2] | 151,853 | |||
Right-of-use assets obtained in exchange for finance lease liabilities | 2,200 | ||||
Operating lease right-of-use assets impairments | $ 77,447 | ||||
[1] | Financial information has been recast to include the results attributable to the sponsor and general partner. See Note 3 . | ||||
[2] | Excludes the $77,447 of impairments on operating right-of-use assets incurred during 2019. |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Operating and Financing Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
Operating Lease Liabilities, Payments Due [Abstract] | ||
Operating lease liability, future maturities, due next twelve months | $ 39,022 | |
Operating lease liability, future maturities, due in second year | 33,239 | |
Operating lease liability, future maturities, due in third year | 25,072 | |
Operating lease liability, future maturities, due in fourth year | 12,027 | |
Operating lease liability, future maturities, due in fifth year | 7,719 | |
Operating lease liability, future maturities, due thereafter | 18,651 | |
Operating lease liability, future maturities | 135,730 | |
Less: interest | (25,615) | |
Operating lease liabilities | 110,115 | $ 127,018 |
Finance Lease Liabilities, Payments, Due [Abstract] | ||
Finance lease liability, future maturities, due next twelve months | 472 | |
Finance lease liability, future maturities, due in second year | 472 | |
Finance lease liability, future maturities, due in third year | 472 | |
Finance lease liability, future maturities, due in fourth year | 472 | |
Finance lease liability, future maturities, due in fifth year | 354 | |
Finance lease liability, future maturities, due thereafter | 0 | |
Finance lease liability, future maturities | 2,242 | |
Less: interest | (371) | |
Finance lease liabilities | 1,871 | |
Lessee Operating And Finance Lease Liability Payments Due [Abstract] | ||
Operating and Finance lease liability, future maturities, due next twelve months | 39,494 | |
Operating and Finance lease liability, future maturities, due in second year | 33,711 | |
Operating and Finance lease liability, future maturities, due in third year | 25,544 | |
Operating and Finance lease liability, future maturities, due in fourth year | 12,499 | |
Operating and Finance lease liability, future maturities, due in fifth year | 8,073 | |
Operating and Finance lease liability, future maturities, due thereafter | 18,651 | |
Operating and Finance lease liability, future maturities | 137,972 | |
Less: interest | (25,986) | |
Total lease liabilities | $ 111,986 |
Leases - Schedule of Contractua
Leases - Schedule of Contractual Obligations (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
Operating leases, future minimum payments, due next twelve months | $ 36,019 |
Operating leases, future minimum payments, due in two years | 36,282 |
Operating leases, future minimum payments, due in three years | 29,272 |
Operating leases, future minimum payments, due in four years | 20,890 |
Operating leases, future minimum payments, due in five years | 10,280 |
Operating leases, future minimum payments, due thereafter | 31,066 |
Operating leases | $ 163,809 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill impairment | $ 35,657 | |
Amortization of intangible assets | $ 5,656 | $ 3,374 |
Weighted average remaining life of intangible assets | 11 years 7 months 6 days | |
Intangible assets impairments | $ 12,973 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Changes in Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill | ||
Goodwill, beginning balance | $ 21,881 | $ 0 |
Goodwill, additions from acquisitions | 10,701 | 22,876 |
Goodwill, acquisition measurement period adjustment | 2,080 | |
Goodwill, impact of foreign currency translation | 995 | (995) |
Goodwill, impairment | (35,657) | |
Goodwill, ending balance | 0 | 21,881 |
Intangible Assets | ||
Intangible assets, beginning balance | 49,694 | 8,416 |
Intangible assets, additions from acquisitions | 4,961 | 46,767 |
Intangible assets, impact of foreign currency translation | 2,115 | (2,115) |
Intangible assets, impairment | (12,973) | |
Intangible assets, amortization expense | (5,656) | (3,374) |
Intangible assets, ending balance | $ 38,141 | $ 49,694 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Intangible Assets Arising from Acquisition (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets And Liabilities [Line Items] | |||
Intangible assets | $ 56,880 | $ 65,016 | |
Less: Accumulated amortization | (18,739) | (15,322) | |
Intangible assets, net | $ 38,141 | 49,694 | $ 8,416 |
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 | 15 years | ||
Patents | |||
Finite-Lived Intangible Assets And Liabilities [Line Items] | |||
Estimated useful life of intangible assets | 15 years | ||
Intangible assets | $ 31,042 | 29,620 | |
Customer contracts and relationships | |||
Finite-Lived Intangible Assets And Liabilities [Line Items] | |||
Intangible assets | $ 23,093 | 28,724 | |
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 | ||
Supplier agreements | |||
Finite-Lived Intangible Assets And Liabilities [Line Items] | |||
Estimated useful life of intangible assets | 1 year | ||
Intangible assets | $ 784 | 784 | |
Other intangible assets | |||
Finite-Lived Intangible Assets And Liabilities [Line Items] | |||
Intangible assets | $ 1,961 | $ 5,888 | |
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 | 5 years |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Future Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Intangible assets, future amortization expense, next twelve months | $ 4,345 | ||
Intangible assets, future amortization expense, year two | 4,345 | ||
Intangible assets, future amortization expense, year three | 4,345 | ||
Intangible assets, future amortization expense, year four | 2,628 | ||
Intangible assets, future amortization expense, year five | 2,566 | ||
Intangible assets, future amortization expense, after year five | 19,912 | ||
Intangible assets, net | $ 38,141 | $ 49,694 | $ 8,416 |
Equity Method Investments - Sch
Equity Method Investments - Schedule of Equity Method Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Schedule of Equity Method Investments [Line Items] | ||||
Investment in equity method investments | $ 37,173 | $ 37,354 | ||
Earnings (loss) from equity method investments | 6,013 | 5,184 | $ 75 | [1] |
Proppant Express Investments, LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investment in equity method investments | 37,173 | 30,870 | ||
Earnings (loss) from equity method investments | 6,014 | 5,300 | 75 | |
Proppant Logistics LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investment in equity method investments | 0 | 6,484 | ||
Earnings (loss) from equity method investments | $ (1) | $ (116) | $ 0 | |
[1] | Financial information has been recast to include the results attributable to the sponsor and general partner. See Note 3 . |
Equity Method Investments - Nar
Equity Method Investments - Narrative (Details) - USD ($) $ in Thousands | Oct. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | May 07, 2019 | |
Schedule of Equity Method Investments [Line Items] | ||||||
Payments to acquire equity method investments | $ 495 | $ 14,695 | $ 7,168 | [1] | ||
Proppant Express Investments, LLC | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Payments to acquire equity method investments | 0 | $ 8,095 | $ 7,168 | |||
Equity method investment ownership interest acquired in business acquisition | 289 | |||||
Proppant Logistics LLC | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Payments to acquire equity method investments | $ 6,600 | $ 495 | ||||
Proppant Logistics LLC | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership interest acquired (percent) | 34.00% | |||||
[1] | Financial information has been recast to include the results attributable to the sponsor and general partner. See Note 3 . |
Accrued and Other Current Lia_3
Accrued and Other Current Liabilities - Components of Accrued and Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Accrued royalty payments | $ 2,358 | $ 6,429 |
Accrued logistics costs | 8,478 | 10,422 |
Accrued compensation and benefits | 6,529 | 12,144 |
Accrued taxes payable | 3,915 | 10,917 |
Accrued interest payable | 18,188 | 18,464 |
Current portion of contingent consideration | 400 | 0 |
Other current liabilities | 2,950 | 2,961 |
Accrued and other current liabilities | $ 42,818 | $ 61,337 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) | Aug. 01, 2018 | Jan. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Line of Credit Facility [Line Items] | |||||||
Total debt | $ 447,967,000 | $ 447,967,000 | $ 445,477,000 | ||||
Carrying value of long-term debt | 456,105,000 | 456,105,000 | |||||
Letter of credit commitments | 21,014,000 | 21,014,000 | |||||
Loss on extinguishment of debt | 0 | (6,233,000) | $ (4,332,000) | [1] | |||
Other notes payable | |||||||
Line of Credit Facility [Line Items] | |||||||
Carrying value of long-term debt | 6,105,000 | 6,105,000 | 4,852,000 | ||||
Prepayments made on promissory notes | 4,288,000 | 3,378,000 | |||||
Senior Unsecured Notes Due 2026 | Unsecured Debt | |||||||
Line of Credit Facility [Line Items] | |||||||
Senior unsecured notes due 2026 | $ 450,000,000 | ||||||
Interest rate under Senior Unsecured Notes (percent) | 9.50% | ||||||
Debt instrument redemption percentage upon change of control (percent) | 101.00% | ||||||
Total debt | 441,862,000 | 441,862,000 | |||||
Carrying value of long-term debt | 450,000,000 | 450,000,000 | 450,000,000 | ||||
Unamortized debt issuance costs in long-term debt | 8,138,000 | 8,138,000 | 9,375,000 | ||||
Promissory Note Due in December 2019 | Other notes payable | |||||||
Line of Credit Facility [Line Items] | |||||||
Total debt | $ 3,676,000 | ||||||
Effective interest rate (percent) | 0.74% | ||||||
Terms of promissory note issued | 3 years | ||||||
Promissory Note Due In August 2021 | Other notes payable | |||||||
Line of Credit Facility [Line Items] | |||||||
Total debt | $ 3,676,000 | ||||||
Effective interest rate (percent) | 2.42% | ||||||
Terms of promissory note issued | 3 years | ||||||
Promissory Note Due In August 2022 | Other notes payable | |||||||
Line of Credit Facility [Line Items] | |||||||
Total debt | 4,595,000 | 4,595,000 | |||||
Carrying value of long-term debt | $ 3,658,000 | $ 3,658,000 | |||||
Effective interest rate (percent) | 1.91% | 1.91% | |||||
Terms of promissory note issued | 3 years | ||||||
Insurance premium financing | Other notes payable | |||||||
Line of Credit Facility [Line Items] | |||||||
Carrying value of long-term debt | $ 1,555,000 | $ 1,555,000 | |||||
Insurance premium financing | Other notes payable | Minimum | |||||||
Line of Credit Facility [Line Items] | |||||||
Effective interest rate (percent) | 5.54% | 5.54% | |||||
Insurance premium financing | Other notes payable | Maximum | |||||||
Line of Credit Facility [Line Items] | |||||||
Effective interest rate (percent) | 6.29% | 6.29% | |||||
Equipment Financing Agreements | Other notes payable | |||||||
Line of Credit Facility [Line Items] | |||||||
Carrying value of long-term debt | $ 892,000 | $ 892,000 | |||||
ABL Credit Facility | $200M ABL Credit Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Carrying value of long-term debt | 0 | 0 | $ 0 | ||||
Line of credit facility, maximum borrowing capacity | $ 200,000,000 | 64,917,000 | 64,917,000 | ||||
Line of credit facility, increase in commitment amount | 300,000,000 | ||||||
Undrawn borrowing capacity | $ 43,903,000 | $ 43,903,000 | |||||
ABL Credit Facility | $200M ABL Credit Facility | Base Rate | Minimum | |||||||
Line of Credit Facility [Line Items] | |||||||
Interest rate basis points of credit facility (percent) | 0.75% | ||||||
ABL Credit Facility | $200M ABL Credit Facility | Base Rate | Maximum | |||||||
Line of Credit Facility [Line Items] | |||||||
Interest rate basis points of credit facility (percent) | 1.50% | ||||||
ABL Credit Facility | $200M ABL Credit Facility | Eurodollar | Minimum | |||||||
Line of Credit Facility [Line Items] | |||||||
Interest rate basis points of credit facility (percent) | 1.75% | ||||||
ABL Credit Facility | $200M ABL Credit Facility | Eurodollar | Maximum | |||||||
Line of Credit Facility [Line Items] | |||||||
Interest rate basis points of credit facility (percent) | 2.50% | ||||||
Letter of Credit | $200M ABL Credit Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 50,000,000 | ||||||
Prior to August 1, 2021 | Senior Unsecured Notes Due 2026 | Unsecured Debt | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument redemption percentage (percent) | 109.50% | ||||||
Debt instrument redemption percentage with payment of premium and interest (percent) | 100.00% | ||||||
Prior to August 1, 2021 | Senior Unsecured Notes Due 2026 | Unsecured Debt | Maximum | |||||||
Line of Credit Facility [Line Items] | |||||||
Percentage of aggregate principal amount that can be redeemed (percent) | 35.00% | ||||||
On or after August 1, 2021 | Senior Unsecured Notes Due 2026 | Unsecured Debt | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument redemption percentage with payment of premium and interest (percent) | 100.00% | ||||||
Subsequent Event | Other notes payable | |||||||
Line of Credit Facility [Line Items] | |||||||
Prepayments made on promissory notes | $ 917,000 | ||||||
[1] | Financial information has been recast to include the results attributable to the sponsor and general partner. See Note 3 . |
Long-Term Debt - Components of
Long-Term Debt - Components of Long-Term Debt (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Line of Credit Facility [Line Items] | ||
Long-term debt, gross | $ 456,105,000 | |
Total debt | 447,967,000 | $ 445,477,000 |
Less: Current portion of long-term debt | (2,628,000) | (2,194,000) |
Long-term debt | 445,339,000 | 443,283,000 |
$200M ABL Credit Facility | ABL Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Long-term debt, gross | 0 | 0 |
Unsecured Debt | Senior Unsecured Notes Due 2026 | ||
Line of Credit Facility [Line Items] | ||
Long-term debt, gross | 450,000,000 | 450,000,000 |
Less: Unamortized debt issuance costs | (8,138,000) | (9,375,000) |
Total debt | 441,862,000 | |
Other notes payable | ||
Line of Credit Facility [Line Items] | ||
Long-term debt, gross | $ 6,105,000 | $ 4,852,000 |
Long-Term Debt - Schedule of Ma
Long-Term Debt - Schedule of Maturities of Long-term Debt (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Debt Disclosure [Abstract] | |
Debt maturities, repayment of principal in next twelve months | $ 2,628 |
Debt maturities, repayment of principal in year two | 168 |
Debt maturities, repayment of principal in year three | 2,922 |
Debt maturities, repayment of principal in year four | 195 |
Debt maturities, repayment of principal in year five | 192 |
Debt maturities, repayment of principal after year five | 450,000 |
Long-term debt | $ 456,105 |
Asset Retirement Obligations -
Asset Retirement Obligations - Reconciliation of Total Reclamation Liability (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||||
Asset retirement obligations at beginning of period | $ 10,677 | $ 10,179 | ||
Additions and revisions to liabilities | (207) | 0 | ||
Accretion expense | 494 | 498 | $ 458 | [1] |
Asset retirement obligations at end of period | $ 10,964 | $ 10,677 | $ 10,179 | |
[1] | Financial information has been recast to include the results attributable to the sponsor and general partner. See Note 3 . |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Aug. 01, 2018 | |
Long-term Purchase Commitment [Line Items] | ||||
Payments for non-delivery of minimum annual sand volumes | $ 0 | |||
Royalty expense | $ 7,360 | $ 15,478 | $ 19,091 | |
Property value guarantees, sale period threshold | 180 days | |||
Property value guaranty purchases | $ 3,085 | |||
Minimum | ||||
Long-term Purchase Commitment [Line Items] | ||||
Initial term of contracted minimum sand volumes | 1 year | |||
Maximum | ||||
Long-term Purchase Commitment [Line Items] | ||||
Initial term of contracted minimum sand volumes | 7 years | |||
FB Industries Inc. | ||||
Long-term Purchase Commitment [Line Items] | ||||
Business acquisition, estimated fair value contingent consideration to pay | $ 400 | $ 8,147 | $ 8,423 | |
Sensitivity analysis of fair value of contingent consideration, impact of 50 percent change in assumptions | 895 | |||
FB Industries Inc. | Maximum | ||||
Long-term Purchase Commitment [Line Items] | ||||
Sensitivity analysis of fair value of contingent consideration, impact of 10 percent change in assumptions | $ 567 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Contractual Obligations (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Contractual Obligation, Fiscal Year Maturity Schedule [Abstract] | |
Minimum purchase commitments, due in next twelve months | $ 14,240 |
Minimum purchase commitments, due in second year | 14,740 |
Minimum purchase commitments, due in third year | 3,425 |
Minimum purchase commitments, due in fourth year | 3,295 |
Minimum purchase commitments, due in fifth year | 979 |
Minimum purchase commitments, due thereafter | 271 |
Minimum purchase commitments | $ 36,950 |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Contingent Consideration (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | [1] | |
Business Acquisition, Contingent Consideration [Line Items] | ||||
Change in estimated fair value of contingent consideration | $ (8,027) | $ 0 | $ 0 | |
FB Industries Inc. | ||||
Business Acquisition, Contingent Consideration [Line Items] | ||||
Estimated fair value contingent consideration to pay, beginning of period | 8,147 | |||
Change in estimated fair value of contingent consideration | (7,747) | |||
Estimated fair value contingent consideration to pay, end of period | $ 400 | $ 8,147 | ||
[1] | Financial information has been recast to include the results attributable to the sponsor and general partner. See Note 3 . |
Equity - Narrative (Details)
Equity - Narrative (Details) - USD ($) | May 31, 2019 | Oct. 21, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 08, 2019 | |
Class of Stock [Line Items] | |||||||
Number of common stock converted from common unit (shares) | 1 | ||||||
Percentage of common units converted to common stock (percent) | 100.00% | ||||||
Total stock, shares authorized (shares) | 600,000,000 | ||||||
Common stock, shares authorized (shares) | 500,000,000 | 500,000,000 | |||||
Common stock, par value per share (in usd per share) | $ 0.01 | $ 0.01 | |||||
Preferred stock, shares authorized (shares) | 100,000,000 | 100,000,000 | |||||
Preferred stock, par value per share (in usd per share) | $ 0.01 | $ 0.01 | |||||
Issuance of common units for a business acquisition (in units) | 695,606 | 1,279,328 | |||||
Number of common units issued (in units) | 23,575,000 | ||||||
Proceeds from equity issuances, net | $ 0 | $ 0 | $ 412,577,000 | [1] | |||
Issuance of common units for an asset acquisition (in units) | 3,438,789 | ||||||
Number of common stock repurchased (in shares) | 753,090 | 2,030,163 | |||||
Repurchase of common stock | $ 3,400,000 | $ 9,426,000 | $ 20,000,000 | ||||
Incentive cash distributions to General Partner | 100.00% | ||||||
Distributions to members of Hi-Crush Proppants LLC | 39,516,000 | $ 69,215,000 | |||||
Distribution of common units to members of Hi-Crush Proppants LLC (in units) | 20,693,643 | ||||||
Acquisition of sponsor and general partner | $ 453,028,000 | 0 | |||||
General Partner and IDRs | |||||||
Class of Stock [Line Items] | |||||||
Net income allocated to holder of incentive distribution rights | $ 7,664,000 | $ 0 | |||||
Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Number of common stock repurchased (in shares) | 1,526,384 | ||||||
Repurchase of common stock | $ 15,000 | ||||||
June 2019 Stock Repurchase Program | |||||||
Class of Stock [Line Items] | |||||||
Repurchase of common stock, authorized amount | $ 25,000,000 | ||||||
Number of common stock repurchased (in shares) | 1,526,384 | ||||||
Repurchase of common stock | $ 3,400,000 | ||||||
Repurchase of common stock, remaining authorized amount | $ 21,600,000 | ||||||
June 2019 Stock Repurchase Program | Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Number of common stock repurchased (in shares) | 1,526,384 | ||||||
Sponsor Owned Common Units | |||||||
Class of Stock [Line Items] | |||||||
Distribution of common units to members of Hi-Crush Proppants LLC (in units) | 20,693,643 | ||||||
[1] | Financial information has been recast to include the results attributable to the sponsor and general partner. See Note 3 . |
Equity - Stock Repurchase Progr
Equity - Stock Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Capital Unit [Line Items] | |||
Repurchase of common stock (in shares) | 753,090 | 2,030,163 | |
Repurchase of common stock | $ 3,400 | $ 9,426 | $ 20,000 |
June 2019 Stock Repurchase Program | |||
Capital Unit [Line Items] | |||
Repurchase of common stock (in shares) | 1,526,384 | ||
Repurchase of common stock, average price including commissions (usd per share) | $ 2.23 | ||
Repurchase of common stock | $ 3,400 | ||
October 2017 Unit Repurchase Plan | |||
Capital Unit [Line Items] | |||
Repurchase of common stock (in shares) | 753,090 | 2,030,163 | |
Repurchase of common stock, average price including commissions (usd per share) | $ 12.52 | $ 9.85 | |
Repurchase of common stock | $ 9,426 | $ 20,000 |
Equity - Distributions (Details
Equity - Distributions (Details) - USD ($) $ / shares in Units, $ in Thousands | Nov. 14, 2018 | Oct. 21, 2018 | Aug. 14, 2018 | Jul. 20, 2018 | May 15, 2018 | Apr. 18, 2018 | Feb. 13, 2018 | Jan. 17, 2018 | Nov. 14, 2017 | Oct. 16, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Distribution Made to Limited Partner [Line Items] | ||||||||||||
Amount Declared Per Unit (usd per unit) | $ 1.40 | $ 0.15 | ||||||||||
General Partner and IDRs | ||||||||||||
Distribution Made to Limited Partner [Line Items] | ||||||||||||
Payment to the Holder of Incentive Distribution Rights | $ 0 | $ 7,664 | $ 0 | $ 0 | $ 0 | $ 7,664 | $ 0 | |||||
Limited Partner | ||||||||||||
Distribution Made to Limited Partner [Line Items] | ||||||||||||
Amount Declared Per Unit (usd per unit) | $ 0.2250 | $ 0.7500 | $ 0.2250 | $ 0.2000 | $ 0.1500 | |||||||
Payment to Limited Partner Units | $ 22,695 | $ 67,253 | $ 19,888 | $ 17,809 | $ 13,656 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Weighted average potentially dilutive common shares outstanding (in shares) | 0 | 2,390,138 | 1,382,733 |
Hi-Crush Inc. Long Term Incentive Plan | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Awards granted and outstanding excluded from diluted earnings per share calculation (in shares) | 1,786,966 | ||
Weighted average potentially dilutive common shares outstanding (in shares) | 2,390,138 | 1,382,733 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | [1] | Sep. 30, 2019 | [1] | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | [1] | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Earnings Per Share [Abstract] | |||||||||||||||
Net income (loss) | $ (21,371) | $ (268,497) | $ (117,484) | $ (6,207) | $ (9,930) | $ 27,138 | $ 66,956 | $ 53,431 | $ (413,559) | $ 137,595 | $ 76,162 | [2] | |||
Weighted average number of shares outstanding, basic (in shares) | 100,974,770 | 91,248,042 | 86,518,249 | ||||||||||||
Weighted average potentially dilutive common shares outstanding (in shares) | 0 | 2,390,138 | 1,382,733 | ||||||||||||
Weighted average number of shares outstanding, diluted (in shares) | 100,974,770 | 93,638,180 | 87,900,982 | ||||||||||||
Earnings (loss) per share - basic (usd per share) | $ (0.21) | $ (2.67) | $ (1.16) | $ (0.06) | $ (0.08) | $ 0.30 | $ 0.68 | $ 0.60 | $ (4.10) | $ 1.46 | $ 0.97 | [2] | |||
Earnings (loss) per share - diluted (usd per share) | $ (4.10) | $ 1.42 | $ 0.96 | [2] | |||||||||||
[1] | The third and fourth quarter of 2019 includes $346,384 and $11,110 of asset impairments, respectively. Refer to Note 18 - Asset Impairments for additional disclosure. | ||||||||||||||
[2] | Financial information has been recast to include the results attributable to the sponsor and general partner. See Note 3 . |
Earnings Per Share - Schedule_2
Earnings Per Share - Schedule of Net Income Attributable to Limited Partners (Details) - USD ($) $ / shares in Units, $ in Thousands | Nov. 14, 2018 | Aug. 14, 2018 | May 15, 2018 | Feb. 13, 2018 | Nov. 14, 2017 | Dec. 31, 2019 | [1] | Sep. 30, 2019 | [1] | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | [1] | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||||||||
Declared distribution to Limited Partner units | $ 117,500 | $ 31,457 | ||||||||||||||||||
Assumed allocation of earnings in excess of distributions | 20,095 | 44,705 | ||||||||||||||||||
Assumed allocation of net income to Limited Partners | $ 140,790 | $ 84,005 | ||||||||||||||||||
Weighted average number of units outstanding, basic (in units) | 100,974,770 | 91,248,042 | 86,518,249 | |||||||||||||||||
Weighted average potentially dilutive common units outstanding (in units) | 0 | 2,390,138 | 1,382,733 | |||||||||||||||||
Weighted average number of units outstanding, diluted (in units) | (100,974,770) | (93,638,180) | (87,900,982) | |||||||||||||||||
Net income per limited partner unit - basic (usd per unit) | $ (0.21) | $ (2.67) | $ (1.16) | $ (0.06) | $ (0.08) | $ 0.30 | $ 0.68 | $ 0.60 | $ (4.10) | $ 1.46 | $ 0.97 | [2] | ||||||||
Net income per limited partner unit - diluted (usd per unit) | $ (4.10) | $ 1.42 | $ 0.96 | [2] | ||||||||||||||||
General Partner and IDRs | ||||||||||||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||||||||
Distributions made to holders of incentive distribution rights | $ 0 | $ 7,664 | $ 0 | $ 0 | $ 0 | $ 7,664 | $ 0 | |||||||||||||
Assumed allocation of earnings in excess of distributions | 0 | 0 | ||||||||||||||||||
Assumed allocation of net income to General Partner and IDRs | 7,664 | 0 | ||||||||||||||||||
Common Units | ||||||||||||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||||||||
Declared distribution to Limited Partner units | 109,836 | 31,457 | ||||||||||||||||||
Assumed allocation of earnings in excess of distributions | 20,095 | 44,705 | ||||||||||||||||||
Assumed allocation of net income to Limited Partners | 133,126 | 84,005 | ||||||||||||||||||
Hi-Crush Proppants LLC | ||||||||||||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||||||||
Add back recast (income) losses attributable to assets contributed by the sponsor | (3,195) | (6,372) | ||||||||||||||||||
Hi-Crush Proppants LLC | Common Units | ||||||||||||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||||||||
Add back recast (income) losses attributable to assets contributed by the sponsor | $ (3,195) | (6,372) | ||||||||||||||||||
Hi-Crush Whitehall LLC and Other Assets | ||||||||||||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||||||||
Add back recast (income) losses attributable to assets contributed by the sponsor | (1,471) | |||||||||||||||||||
Hi-Crush Whitehall LLC and Other Assets | Common Units | ||||||||||||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||||||||
Add back recast (income) losses attributable to assets contributed by the sponsor | $ (1,471) | |||||||||||||||||||
[1] | The third and fourth quarter of 2019 includes $346,384 and $11,110 of asset impairments, respectively. Refer to Note 18 - Asset Impairments for additional disclosure. | |||||||||||||||||||
[2] | Financial information has been recast to include the results attributable to the sponsor and general partner. See Note 3 . |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Sep. 14, 2017 | Feb. 28, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | May 31, 2019 |
Common Stock | Directors | ||||||
Class of Stock [Line Items] | ||||||
Number of common stock issued to directors | 62,184 | 36,109 | 29,148 | |||
Unit Purchase Programs | ||||||
Class of Stock [Line Items] | ||||||
Discount of fair value on common units from the applicable election date | 15.00% | 10.00% | ||||
Issuance of units under Unit Purchase Programs (in units) | 300,090 | |||||
Weighted average purchase price of common units purchased under Unit Purchase Programs (usd per unit) | $ 5.49 | |||||
Hi-Crush Inc. Long Term Incentive Plan | Performance Share Units | ||||||
Class of Stock [Line Items] | ||||||
Award vesting period | 3 years | |||||
Number of common stock of each award | 1 | |||||
Total compensation expense not yet recognized | $ 927 | |||||
Weighted average remaining service period | 1 year 4 months 24 days | |||||
Weighted average grant date fair value per unit | $ 3.40 | $ 6.85 | ||||
Granted units | 0 | |||||
Fair value of units vested | $ 1,627 | $ 1,964 | ||||
Vested units | 97,865 | 0 | ||||
Hi-Crush Inc. Long Term Incentive Plan | Performance Share Units | Minimum | ||||||
Class of Stock [Line Items] | ||||||
Vesting percentage | 0.00% | |||||
Hi-Crush Inc. Long Term Incentive Plan | Performance Share Units | Maximum | ||||||
Class of Stock [Line Items] | ||||||
Vesting percentage | 200.00% | |||||
Hi-Crush Inc. Long Term Incentive Plan | Restricted Stock Units | ||||||
Class of Stock [Line Items] | ||||||
Award vesting period | 3 years | |||||
Number of common stock of each award | 1 | |||||
Total compensation expense not yet recognized | $ 3,222 | |||||
Weighted average remaining service period | 1 year 8 months 12 days | |||||
Weighted average grant date fair value per unit | $ 3.63 | $ 6.91 | $ 8.94 | |||
Granted units | 538,968 | |||||
Fair value of units vested | $ 5,742 | $ 3,651 | $ 714 | |||
Vested units | 525,096 | |||||
Hi-Crush Inc. Long Term Incentive Plan | Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Number of common stock authorized under the Plan | 8,731,053 |
Stock-Based Compensation - Perf
Stock-Based Compensation - Performance Share Units (Details) - Hi-Crush Inc. Long Term Incentive Plan - Performance Share Units - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2017 | |
Performance Share Units | ||
Outstanding units at beginning of period | 747,920 | |
Vested units | (97,865) | 0 |
Forfeited units | (82,801) | |
Outstanding units at end of period | 567,254 | |
Grant Date Weighted-Average Fair Value per Unit | ||
Outstanding units at beginning of period (usd per unit) | $ 5.93 | |
Vested (usd per unit) | 16.63 | |
Forfeited (usd per unit) | 4.97 | |
Outstanding units at end of period (usd per unit) | $ 4.56 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricked Stock Units (Details) - Hi-Crush Inc. Long Term Incentive Plan - Restricted Stock Units - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restricted Stock Units | |||
Outstanding units at beginning of period | 1,642,218 | ||
Vested units | (525,096) | ||
Granted units | 538,968 | ||
Forfeited units | (436,378) | ||
Outstanding units at end of period | 1,219,712 | 1,642,218 | |
Grant Date Weighted-Average Fair Value per Unit | |||
Outstanding units at beginning of period (usd per unit) | $ 8.07 | ||
Vested (usd per unit) | 10.93 | ||
Granted (usd per unit) | 3.63 | $ 6.91 | $ 8.94 |
Forfeited (usd per unit) | 6.45 | ||
Outstanding units at end of period (usd per unit) | $ 6.47 | $ 8.07 |
Stock-Based Compensation - Tota
Stock-Based Compensation - Total Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Compensation Expense [Line Items] | |||
Total compensation expense | $ 4,626 | $ 7,439 | $ 5,714 |
Performance Share Units | |||
Compensation Expense [Line Items] | |||
Total compensation expense | 976 | 1,371 | 1,549 |
Restricted Stock Units | |||
Compensation Expense [Line Items] | |||
Total compensation expense | 3,404 | 5,261 | 3,149 |
Director stock grants | |||
Compensation Expense [Line Items] | |||
Total compensation expense | 246 | 474 | 499 |
Unit Purchase Programs | |||
Compensation Expense [Line Items] | |||
Total compensation expense | $ 0 | $ 333 | $ 517 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Deferred revenues | $ 26,028 | $ 29,785 |
Expected period to recognize deferred revenues over | 3 years | |
Minimum | ||
Disaggregation of Revenue [Line Items] | ||
Long-term Supply Agreements, expiration year | 2020 | |
Maximum | ||
Disaggregation of Revenue [Line Items] | ||
Long-term Supply Agreements, expiration year | 2024 |
Revenues - Revenues Disaggregat
Revenues - Revenues Disaggregated by Contractual Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 636,370 | $ 842,840 | $ 602,623 |
Frac sand sales revenues | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 432,466 | 696,603 | 598,355 |
Sales to contract customers | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 310,374 | 607,898 | 438,547 |
Spot sales | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 122,092 | 88,705 | 159,808 |
Other revenues | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 203,904 | $ 146,237 | $ 4,268 |
Revenues - Deferred Revenues (D
Revenues - Deferred Revenues (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Deferred Revenues | |
Deferred revenues, at beginning of period | $ 29,785 |
Collection of prepayments | 8,750 |
Revenues recognized | (12,651) |
Customer prepayments acquired in business acquisitions | 90 |
Impact of foreign currency translation | 54 |
Deferred revenues, at end of period | $ 26,028 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Equity Method Investee | ||||
Related Party Transaction [Line Items] | ||||
Revenue - related parties | $ 220 | $ 0 | $ 0 | |
Proppant Express Investments, LLC | ||||
Related Party Transaction [Line Items] | ||||
Cost of goods sold - related parties | [1] | 9,183 | 5,306 | 1,577 |
Equipment purchases - related parties | [2] | $ 1,432 | $ 4,646 | $ 5,033 |
[1] | The Company incurs lease expense for the use of PropX equipment. | |||
[2] | The Company purchases equipment from PropX, which is reflected in property, plant and equipment on our Consolidated Balance Sheet. |
Related Party Transactions - _2
Related Party Transactions - Schedule of Related Party Balance Sheet Components (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | ||
Related Party Transaction [Line Items] | ||||
Current portion of operating lease liabilities - related parties | $ 30,191 | |||
Operating lease liabilities - related parties | 79,924 | |||
Total operating lease liabilities - related parties | 110,115 | $ 127,018 | ||
Lease expense prepayment, related party | 3,739 | |||
Equity Method Investee | ||||
Related Party Transaction [Line Items] | ||||
Accounts payable - related parties | 1,164 | $ 1,070 | ||
Proppant Express Investments, LLC | ||||
Related Party Transaction [Line Items] | ||||
Current portion of operating lease liabilities - related parties | 8,273 | [1] | 0 | |
Operating lease liabilities - related parties | 11,130 | [1] | 0 | |
Total operating lease liabilities - related parties | $ 19,403 | [1] | $ 0 | |
[1] | During the first quarter of 2019, the Company made a lease prepayment of $3,739 for the use of PropX equipment during the first half of 2019. |
Asset Impairments - Narrative (
Asset Impairments - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | [1] | |
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||
Asset impairments | $ 11,110 | $ 346,384 | $ 357,494 | $ 0 | $ 0 | |
Operating lease right-of-use assets impairments | 77,447 | |||||
Goodwill impairment | 35,657 | |||||
Intangible assets impairments | 12,973 | |||||
Augusta facility | ||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||
Long-lived asset impairments | 109,747 | |||||
Inventory asset impairment | 6,858 | |||||
Whitehall facility | ||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||
Long-lived asset impairments | 105,727 | |||||
Terminal facilities | ||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||
Long-lived asset impairments | $ 15,943 | |||||
[1] | Financial information has been recast to include the results attributable to the sponsor and general partner. See Note 3 . |
Asset Impairments - Schedule of
Asset Impairments - Schedule of Asset Impairments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | [1] | |
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||
Operating lease right-of-use assets impairments | $ 77,447 | |||||
Goodwill impairment | 35,657 | |||||
Intangible assets impairments | 12,973 | |||||
Asset impairments | $ 11,110 | $ 346,384 | 357,494 | $ 0 | $ 0 | |
Augusta facility | ||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||
Long-lived asset impairments | 109,747 | |||||
Whitehall facility | ||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||
Long-lived asset impairments | 105,727 | |||||
Terminal facilities | ||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||
Long-lived asset impairments | $ 15,943 | |||||
[1] | Financial information has been recast to include the results attributable to the sponsor and general partner. See Note 3 . |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | May 31, 2019 | Dec. 31, 2019 |
Operating Loss Carryforwards [Line Items] | ||
Deferred tax resulting from conversion to a corporation | $ 115,488,000 | $ 115,488,000 |
Deferred tax assets related to the NOL carryforwards | 10,384,000 | |
Unrecognized tax benefits | 0 | |
Anticipated change in unrecognized tax benefits | 0 | |
Domestic Tax Authority | Internal Revenue Service (IRS) | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | $ 45,000,000 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income (Loss) Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | [1] | |
Income Tax Disclosure [Abstract] | ||||
U.S. | $ (376,163) | |||
Foreign | 5,374 | |||
Net loss not subject to federal income tax | (12,145) | |||
Income (loss) before income tax | $ (382,934) | $ 137,595 | $ 76,162 | |
[1] | Financial information has been recast to include the results attributable to the sponsor and general partner. See Note 3 . |
Income Taxes - Schedule of Co_2
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | May 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | [1] |
Current tax expense (benefit) | |||||
Foreign | $ 1,057 | ||||
Total current tax expense | 1,057 | $ 0 | $ 0 | ||
Deferred tax expense (benefit) | |||||
Federal | (77,932) | ||||
State | (8,514) | ||||
Foreign | 526 | ||||
Total deferred tax benefit | (85,920) | 0 | 0 | ||
Deferred tax resulting from conversion to a corporation | $ 115,488 | 115,488 | |||
Income tax expense (benefit) | $ 30,625 | $ 0 | $ 0 | ||
[1] | Financial information has been recast to include the results attributable to the sponsor and general partner. See Note 3 . |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Statutory federal rate (percent) | 21.00% |
Benefit on loss not subject to federal income tax (percent) | (0.60%) |
State taxes (net) (percent) | 2.20% |
Other (percent) | (0.40%) |
Effective tax rate (percent) | 22.20% |
Income Taxes - Schedule of Co_3
Income Taxes - Schedule of Components of Deferred Tax Assets and Liabilities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Deferred tax assets | |
Federal NOL carryforward | $ 10,384 |
Disallowed business interest carryforward | 6,235 |
Operating lease liabilities | 25,783 |
Asset retirement obligations | 2,615 |
Other | 1,619 |
Deferred tax assets | 46,636 |
Deferred tax liabilities | |
Property, plant and equipment | 63,651 |
Operating lease right-of-use assets | 10,835 |
Other | 2,147 |
Deferred tax liabilities | 76,633 |
Net deferred tax liabilities | $ 29,997 |
Concentration of Credit Risk -
Concentration of Credit Risk - Significant Customers Concentration Risk (Details) - Customer Concentration Risk - Sales Revenue, Net | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Customer A | |||
Concentration Risk [Line Items] | |||
Percentage of revenue accounted by customers | 23.00% | 22.00% | |
Customer B | |||
Concentration Risk [Line Items] | |||
Percentage of revenue accounted by customers | 16.00% | 26.00% | |
Customer C | |||
Concentration Risk [Line Items] | |||
Percentage of revenue accounted by customers | 11.00% | ||
Customer D | |||
Concentration Risk [Line Items] | |||
Percentage of revenue accounted by customers | 13.00% | ||
Customer E | |||
Concentration Risk [Line Items] | |||
Percentage of revenue accounted by customers | 11.00% |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) - Summary of Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | [1] | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | [2] | |||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||
Revenues | $ 125,487 | [1] | $ 172,972 | [1] | $ 178,001 | $ 159,910 | $ 162,235 | $ 213,972 | $ 248,520 | $ 218,113 | $ 636,370 | $ 842,840 | $ 602,623 | ||
Gross profit | 7,333 | [1] | 15,192 | [1] | 22,667 | 18,116 | 18,596 | 56,148 | 83,507 | 68,331 | 63,308 | 226,582 | 134,826 | ||
Income (loss) from operations | (15,316) | [1] | (340,569) | [1] | 5,833 | 3,267 | (1,040) | 39,759 | 69,534 | 55,738 | (346,785) | 163,991 | 93,390 | ||
Net income (loss) | $ (21,371) | [1] | $ (268,497) | [1] | $ (117,484) | $ (6,207) | $ (9,930) | $ 27,138 | $ 66,956 | $ 53,431 | $ (413,559) | $ 137,595 | $ 76,162 | ||
Earnings (loss) per share - basic (usd per share) | $ (0.21) | [1] | $ (2.67) | [1] | $ (1.16) | $ (0.06) | $ (0.08) | $ 0.30 | $ 0.68 | $ 0.60 | $ (4.10) | $ 1.46 | $ 0.97 | ||
Asset impairments | $ 11,110 | $ 346,384 | $ 357,494 | $ 0 | $ 0 | ||||||||||
[1] | The third and fourth quarter of 2019 includes $346,384 and $11,110 of asset impairments, respectively. Refer to Note 18 - Asset Impairments for additional disclosure. | ||||||||||||||
[2] | Financial information has been recast to include the results attributable to the sponsor and general partner. See Note 3 . |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts - (Details) - Allowance for doubtful accounts - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Allowance for doubtful accounts, beginning balance | $ 1,060 | $ 1,060 | $ 1,549 |
Charged to costs and expenses | 0 | 0 | 0 |
Deductions | 0 | 0 | (489) |
Allowance for doubtful accounts, ending balance | $ 1,060 | $ 1,060 | $ 1,060 |