Hi-Crush Partners LP Announces Long-Term Frac Sand Purchase Agreement
Houston, Texas - Hi-Crush Partners LP, or Hi-Crush, announced the entry into a new long-term frac sand purchase agreement between Hi-Crush Operating LLC, a subsidiary of Hi-Crush, and Halliburton Energy Services, Inc., or Halliburton, which amends and restates the existing supply agreements between Hi-Crush and its affiliates and Halliburton. The new agreement increases the annual minimum committed volumes under the previous agreements, extends the term through December 31, 2018 and requires Halliburton to pay a specified price for a specified minimum volume of frac sand each month. In addition, the new agreement provides for further significant increases in annual volumes dependent on Halliburton's aggregate annual demand for Northern White frac sand.
"Halliburton has been an important partner with Hi-Crush since the inception of our operations. We are excited to further strengthen our relationship with Halliburton by entering into this new agreement," said James M. Whipkey, Co-Chief Executive Officer of Hi-Crush. "Halliburton's commitment for these new volumes further underscores the demand for Hi-Crush sand as we bring on new production capacity this year."