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Emerge Energy Services LP Announces Suspension of Trading and Commencement of NYSE Delisting Procedures Due to Low Market Capitalization; Common Units Expected to Begin Trading Over-the-Counter

Posted on: May 31st, 2019 by Sabrina Henn No Comments

Fort Worth, Texas – May 31, 2019 – The New York Stock Exchange LLC (“NYSE”) announced today that the NYSE Regulation staff has determined to commence proceedings to delist the common units representing limited partner interests (the “common units”) of Emerge Energy Services LP (the “the Partnership”) (NYSE:  EMES) from the NYSE.  Trading in the Partnership’s common units will be suspended immediately.

NYSE Regulation reached its decision to delist the common units pursuant to Section 802.01B of the NYSE’s Listed Company Manual because the Partnership has not satisfied the NYSE’s continued listing standard requiring listed companies to maintain an average global market capitalization over a consecutive 30 trading day period of at least $15,000,000.

The NYSE will apply to the Securities and Exchange Commission to delist the common units upon completion of all applicable procedures, The Partnership does not intend to appeal the determination and, therefore, it is expected that the common units will be delisted.

The Partnership anticipates that effective June 3, 2019, the common units will commence trading over-the-counter under the symbol “EMESZ”.  The Partnership can provide no assurance that its common units will continue to trade on this market, whether broker-dealers will continue to provide public quotes of its common units on this market, or whether the trading volume of its common units will be sufficient to provide for an efficient trading market.

About Emerge Energy Services LP

Emerge Energy Services LP is a limited partnership engaged in the business of mining, producing, and distributing silica sand, a key input for the hydraulic fracturing of oil and natural gas wells, through its subsidiary Superior Silica Sands LLC.

PRESS CONTACT
Investor Relations
(817) 618-4020

Emerge Energy Services LP Receives Expected NYSE Notice Regarding Listing Standards

Posted on: May 23rd, 2019 by Sabrina Henn No Comments

Fort Worth, Texas – May 23, 2019 – Emerge Energy Services LP (NYSE: EMES) (the “Partnership”) today announced that it received an expected notification from the New York Stock Exchange (“NYSE”) on May 17, 2019 that the Partnership is no longer in compliance with NYSE continued listing criteria that require listed companies to maintain an average closing share price of at least $1.00 over a consecutive 30 trading-day period.

In accordance with NYSE rules, the Partnership has a period of six months from receipt of the notice to regain compliance with the NYSE’s minimum share price requirement, with the possibility of extension at the discretion of the NYSE. Under NYSE rules, the Partnership’s common units will continue to be listed and traded on the NYSE during this period, subject to the Partnership’s compliance with other NYSE continued listing requirements. Notwithstanding the foregoing, if the Partnership’s common units trade at an “abnormally low” price level under NYSE rules or the 30-day average market capitalization for the common units is below $15 million, the Partnership will be delisted and the six month cure period discussed above will not be available. The notice does not affect the Partnership’s ongoing business operations or its U.S. Securities and Exchange Commission reporting obligations.

About Emerge Energy Services LP

Emerge Energy Services LP (NYSE: EMES) is a limited partnership engaged in the business of mining, producing, and distributing silica sand, a key input for the hydraulic fracturing of oil and natural gas wells, through its subsidiary Superior Silica Sands LLC.

PRESS CONTACT
Investor Relations
(817) 618-4020

Emerge Energy Services LP Enters into Restructuring Support Agreement

Posted on: April 22nd, 2019 by Sabrina Henn No Comments

Fort Worth, Texas – April 22, 2019 – Emerge Energy Services LP (NYSE: EMES) (the “Partnership”) today announced that it has entered into a restructuring support agreement (the “RSA”) with its operating subsidiary Superior Silica Sands LLC (“SSS”) and the Partnership’s other subsidiaries (together with the Partnership and SSS, “Emerge Energy”), its general partner (“Emerge GP”), certain direct and indirect equity holders of Emerge GP, the lenders under Emerge Energy’s revolving credit facility, and the noteholders under Emerge Energy’s second lien note purchase agreement (the noteholders, together with the lenders under the revolving credit facility, the “Consenting Creditors”).

As set forth in the RSA, the parties thereto have agreed to the principal terms of a proposed financial restructuring of Emerge Energy (the “Transaction”), which will be implemented through an out-of-court restructuring or, in the event that the special restructuring committee of the board of directors of Emerge GP (the “Committee”) determines in good faith that the out-of-court restructuring is no longer reasonably possible or in the best interests of Emerge Energy and its stakeholders, an in-court reorganization implemented in one or more cases filed under Title 11 of the United States Code.

Under the out-of-court restructuring, Emerge Energy’s obligations under the revolving credit agreement will be paid in full.  Noteholders under the note purchase agreement will receive new second lien secured notes and pro rata ownership interests in new common units representing a 95% limited partner interest in the Partnership.  Existing common unitholders of the Partnership will receive new common units.

If it is determined that the out-of-court restructuring is no longer reasonably possible or in the best interests of Emerge Energy and its stakeholders, Emerge Energy will commence the in-court reorganization. Emerge Energy’s obligations under the revolving credit agreement will be paid in full and noteholders under the note purchase agreement will receive new second lien secured notes and pro rata ownership interests in new common units representing 100% limited partner interest in the Partnership; provided that, if and only if the class of holders of general unsecured claims vote to accept the chapter 11 plan, then the Noteholders have agreed to carve-out from their collateral and receipt of 100% of such limited partner interests, a settlement fund to be shared collectively by such holders and the existing equity holders in the Partnership consisting of (i) 5% of the new common units in the Partnership, subject to certain dilution; and (ii) out-of-the-money warrants for 15% of the new common units in the Partnership, subject to certain types of dilution.  However, in the event that the class of holders of general unsecured claims vote to reject the chapter 11 plan, then such holders and the existing equity holders in the Partnership shall not receive any distributions or property under the chapter 11 plan.

The RSA will terminate if the Transaction is not consummated in accordance with the RSA by December 31, 2019 (unless extended in writing by the parties) or if the parties otherwise agree in writing. A party may also terminate the RSA upon a material breach by another party of its obligations under the RSA.

Each holder of common units of the Partnership is urged to consult its own tax advisor with respect to the tax consequences of the Transaction based on its own particular circumstances.

A summary of the material terms and conditions of the RSA and a copy of the agreement will be included in the Partnership’s Current Report on Form 8-K being filed with the Securities and Exchange Commission today.

Advisors

Latham & Watkins LLP is acting as legal counsel, Houlihan Lokey is acting as investment banking debt restructuring advisor and Ankura Consulting Group, LLC is acting as financial advisor to Emerge Energy in connection with the restructuring.

Weil, Gosthal & Manges LLP is acting as legal counsel to the Consenting Creditors.

About Emerge Energy Services LP

Emerge Energy Services LP is a growth-oriented limited partnership engaged in the business of mining, producing, and distributing silica sand, a key input for the hydraulic fracturing of oil and natural gas wells, through its subsidiary Superior Silica Sands LLC.

Forward-Looking Statements

This release contains certain statements that are “forward-looking statements.” These statements can be identified by the use of forward-looking terminology including “may,” “believe,” “will,” “expect,” “anticipate,” or “estimate.” These forward-looking statements involve risks and uncertainties, and there can be no assurance that actual results will not differ materially from those expected by management of Emerge Energy. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in Emerge Energy’s periodic reports filed with the SEC. The risk factors and other factors noted in such periodic reports could cause actual results to differ materially from those contained in any forward-looking statement. Except as required by law, Emerge Energy does not undertake any obligation to update or revise such forward-looking statements to reflect events or circumstances that occur after the date hereof.

PRESS CONTACT
Investor Relations
(817) 618-4020

Emerge Energy Services LP Receives Expected NYSE Notice Regarding Late Form 10-K Filing

Posted on: April 9th, 2019 by Sabrina Henn No Comments

Fort Worth, Texas – April 9, 2019 – Emerge Energy Services LP (NYSE: EMES) (“Emerge Energy”) today announced that, as a result of its failure to timely file its Annual Report on Form 10-K for the fiscal year ended December 31, 2018 (the “2018 Form 10-K”), it has received an expected notice from the New York Stock Exchange (the “NYSE”) that Emerge Energy is not in compliance with the NYSE’s continued listing requirements under the timely filing criteria established in Section 802.01E of the NYSE Listed Company Manuel.

As reported by Emerge Energy in its Form 12b-25 filed with the Securities and Exchange Commission(the “SEC”) on March 19, 2019, Emerge Energy was unable to file its 2018 Form 10-K within the prescribed time period without unreasonable effort or expense. The extension period provided under Rule 12b-25 expired on April 2, 2019.

Emerge Energy continues to work diligently to complete the preparation of its consolidated financial statements in order to be in a position to file its 2018 Form 10-K with the SEC as promptly as possible after its independent registered public accounting firm completes its review.

In accordance with NYSE rules, Emerge Energy has contacted the NYSE to discuss the status of the late filing and is issuing this required press release. The NYSE informed Emerge Energy that, under NYSE rules, Emerge Energy will have six months from the Form 10-K due date of March 18, 2019 to file the 2018 Form 10-K with the SEC. Emerge Energy can regain compliance with the NYSE listing standards at any time prior to that date by filing its 2018 Form 10-K. If Emerge Energy fails to file the 2018 Form 10-K before the NYSE may grant, at its sole discretion, an extension of up to six additional months for Emerge Energy to regain compliance, depending on the specific circumstances.

About Emerge Energy Services LP

Emerge Energy Services LP (NYSE: EMES) is a growth-oriented limited partnership engaged in the business of mining, producing, and distributing silica sand, a key input for the hydraulic fracturing of oil and natural gas wells, through its subsidiary Superior Silica Sands LLC.

Forward-Looking Statements

This release contains certain statements that are “forward-looking statements.” These statements can be identified by the use of forward-looking terminology including “may,” “believe,” “will,” “expect,” “anticipate,” or “estimate.” These forward-looking statements involve risks and uncertainties, and there can be no assurance that actual results will not differ materially from those expected by management of Emerge Energy.  When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in Emerge Energy’s Annual Report on Form 10-K for the year ended December 31, 2017 filed with the SEC. The risk factors and other factors noted in the Annual Report could cause actual results to differ materially from those contained in any forward-looking statement.  Except as required by law, Emerge Energy does not undertake any obligation to update or revise such forward-looking statements to reflect events or circumstances that occur after the date hereof.

PRESS CONTACT
Investor Relations
(817) 618-4020

Emerge Energy Services LP Announces Availability of Schedule K-1s

Posted on: March 14th, 2019 by Sabrina Henn No Comments

Fort Worth, Texas – March 14, 2019 – Emerge Energy Services LP (“Emerge Energy”) today announced that it has completed the 2018 tax packages for its unitholders, including Schedule K-1s. These tax packages may be accessed online at www.emergelp.com in the Information on K-1’s section. Emerge Energy has mailed the tax packages to unitholders who have not chosen the paperless delivery option. For additional assistance, unitholders may contact the Emerge Energy K-1 Tax Package Support Line, toll free at (855) 521-8153 between 8 a.m. and 5 p.m. Central Standard Time, Monday through Friday, or by visiting https://taxpackagesupport.com/emerge.

About Emerge Energy Services LP

Emerge Energy Services LP (NYSE: EMES) is a growth-oriented limited partnership engaged in the business of mining, producing, and distributing silica sand, a key input for the hydraulic fracturing of oil and natural gas wells, through its subsidiary Superior Silica Sands LLC.

PRESS CONTACT

Investor Relations

(817) 618-4020

Emerge Energy Services LP Announces Sand Supply Agreement with Chesapeake Energy Corporation

Posted on: January 7th, 2019 by Sabrina Henn No Comments

Fort Worth, Texas – January 7, 2019 – Emerge Energy Services LP today announced that its subsidiary Superior Silica Sands LLC (“Superior”) has signed a new agreement with Chesapeake Energy Corporation (“Chesapeake”) covering frac sand supplied from Superior’s San Antonio mine in South Texas. Chesapeake will procure frac sand from Superior’s leading in-basin mine to support its growing completions program in South Texas.

“We are very pleased to partner with one of the leading onshore Exploration and Production companies in the U.S.,” noted Rick Shearer, Chief Executive Officer of the general partner of Emerge Energy. “Chesapeake is committed long-term to growing its position in the Eagle Ford basin, and as a leading producer of frac sand in South Texas, we are the perfect fit to supply Chesapeake with a large portion of its frac sand needs. Chesapeake has always been at the forefront of unconventional horizontal drilling, and we look forward to building our relationship with this new customer.”

“Also, our San Antonio plant is ramping up to full capacity as our new wet plant began production in December. We are excited about the opportunity ahead of us for our San Antonio plant and our other in-basin and northern white operations in 2019.”

About Emerge Energy Services LP

Emerge Energy Services LP (NYSE: EMES) is a growth-oriented limited partnership engaged in the business of mining, producing, and distributing silica sand, a key input for the hydraulic fracturing of oil and natural gas wells, through its subsidiary Superior Silica Sands LLC.

About Chesapeake Energy Corporation

Headquartered in Oklahoma City, Chesapeake Energy Corporation’s (NYSE: CHK) operations are focused on discovering and developing its large and geographically diverse resource base of unconventional oil and natural gas assets onshore in the United States. The company also owns an oil and natural gas marketing business.

 

Forward-Looking Statements

This release contains certain statements that are “forward-looking statements.” These statements can be identified by the use of forward-looking terminology including “may,” “believe,” “will,” “expect,” “anticipate,” or “estimate.” These forward-looking statements involve risks and uncertainties, and there can be no assurance that actual results will not differ materially from those expected by management of Emerge Energy Services LP.  When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in Emerge Energy’s Annual Report on Form 10-K filed with the SEC. The risk factors and other factors noted in the Annual Report could cause actual results to differ materially from those contained in any forward-looking statement.  Except as required by law, Emerge Energy Services LP does not undertake any obligation to update or revise such forward-looking statements to reflect events or circumstances that occur after the date hereof.

PRESS CONTACT

Investor Relations

(817) 618-4020

Emerge Energy Services Announces Third Quarter 2018 Results

Posted on: November 6th, 2018 by Sabrina Henn No Comments

Fort Worth, Texas –November 6, 2018 – Emerge Energy Services LP (“Emerge Energy”) today announced third quarter 2018 financial and operating results.

Highlights

·         Total volumes sold decreased 32% sequentially to 1,073 thousand tons in the third quarter.

·         Net loss of $3.9 million and diluted earnings per unit of $(0.12) for the third quarter.

·         Adjusted EBITDA decreased to $7.9 million for the third quarter.

Overview

Emerge Energy reported a net loss of $3.9 million, or $(0.12) per diluted unit, for the three months ended September 30, 2018, compared to net income of $5.0 million, or $0.16 per diluted unit for the three months ended September 30, 2017.  For the three months ended June 30, 2018, net income was $9.4 million, or $0.30 per diluted unit.

Net revenues were $63.0 million for the three months ended September 30, 2018, compared to $103.2 million for the three months ended September 30, 2017, and $101.8 million for the three months ended June 30, 2018.  Net revenues decreased due to lower northern white volumes sold, shift in mix away from higher priced terminal sales and a decline in northern white prices.  Volumes sold through our terminals totaled 23% of volume in the third quarter of 2018, compared to 45% in the third quarter of 2017, and 26% in the second quarter of 2018.

Adjusted EBITDA was $7.9 million for the three months ended September 30, 2018, compared to $18.7 million for the three months ended September 30, 2017, and $23.4 million for the three months ended June 30, 2018.

Emerge Energy generated Distributable Cash Flow of $1.7 million for the three months ended September 30, 2018.  Adjusted EBITDA and Distributable Cash Flow are non-GAAP financial measures that Emerge Energy uses to assess its performance on an ongoing basis.  Emerge Energy will not make a cash distribution on its common units for the three months ended September 30, 2018, as the board of directors of its general partner did not approve a cash distribution.

“We experienced disappointing results in the third quarter driven by the short-term challenging market conditions and a delay in ramping up our new San Antonio plant,” noted Ted W. Beneski, Chairman of the board of directors of the general partner of Emerge Energy.  “The slowdown in oil and gas completion activity has been well documented by notable industry participants.  Leading oilfield services companies were surprised by the speed in which many of their Exploration and Production customers began to pull back completion programs starting in August.  As a result, the market conditions for frac sand changed rapidly in the second half of the third quarter.  The market quickly turned from a state of short supply in the first half of the year to oversupply in the last two months as the demand pullback coincided with an increase in production from new in-basin mines across West Texas, South Texas, and the Mid-Continent regions.  Consequently, the entire industry has experienced pricing pressure, primarily on northern white product.  We are responding to these market conditions by reducing costs and idling over 50% of our northern white capacity.”

“Despite the limited visibility for fourth quarter activity, our customers are signaling that 2019 should be a high growth year as budgets are reset and the midstream issues in West Texas are resolved.  Customer sentiment for next year is upbeat, giving us confidence that the current demand softness is a temporary state.”

“We remain excited about our two new in-basin plants – San Antonio, Texas and Kingfisher, Oklahoma.  We made progress in the third quarter ramping up San Antonio, as sequential frac sand production doubled in the third quarter.  However, weather and contractor delays impacted the final portion of construction.  We now expect the plant to achieve the full four million tons per year run-rate at the end of November.  We also expect to significantly reduce our production costs in the coming months when our new wet plant phases out purchasing third party wet sand and our new permanent utilities displace higher cost temporary electricity and natural gas sources. We are over 60% contracted for the plant’s full capacity and are projecting to achieve 80% by year end.  For our Oklahoma project, we broke ground in September, and we expect to be producing sand as early as January next year if the permitting process goes smoothly.  We have worked hard to reposition Emerge Energy into a balanced producer of both northern white and in-basin frac sand, and we are confident that we will reap the benefits of this repositioning in 2019.”

“Due to the short-term market softness and lower in-basin production, we are lowering our full year 2018 Adjusted EBITDA guidance to a range of $50 million to $65 million.  We are currently engaged in negotiations with several customers to resolve contracted volume shortfalls on our take or pay contracts for northern white product.  Enforcing these minimum volume contracts will help to mitigate the anticipated market weakness in the fourth quarter.”

Conference Call

Emerge Energy will host its 2018 third quarter results conference call on Tuesday, November 6, 2018 at 3:00 p.m. CT. Callers may listen to the live presentation, which will be followed by a question and answer segment, by dialing (855) 850-4275 or (720) 634-2898 and entering pass code 1475479. An audio webcast of the call will be available at www.emergelp.com within the Investor Relations portion of the website under the Webcasts & Presentations section. A replay will be available by audio webcast and teleconference for seven days following the conclusion of the call. The replay teleconference will be available by dialing (855) 859-2056 or (404) 537-3406 and the reservation number 1475479.

 

Operating Results

The following table summarizes Emerge Energy’s operating results for the three and nine months ended September 30, 2018, and 2017, and three months ended June 30, 2018:

Three Months Ended Nine Months Ended September 30,
September 30, 2018 June 30, 2018 September 30, 2017 2018 2017
($ in thousands)
Revenues:
Frac sand revenues $ 61,597 $ 100,788 $ 101,795 $ 268,356 $ 258,055
Non-frac sand revenues 1,364 1,054 1,420 3,197 3,106
Total revenues 62,961 101,842 103,215 271,553 261,161
Operating expenses:
Cost of goods sold (excluding depreciation, depletion and amortization) 52,337 72,650 80,239 205,229 223,978
Depreciation, depletion and amortization 5,316 5,355 6,078 15,532 16,409
Selling, general and administrative expenses 3,693 7,390 7,302 19,654 20,030
Contract and project terminations 1,689
Total operating expenses 61,346 85,395 93,619 242,104 260,417
Operating income (loss) 1,615 16,447 9,596 29,449 744
Other expense (income):
Interest expense, net 6,907 6,736 5,073 24,135 13,353
Other (1,472 ) 230 (901 ) (1,930 ) (3,218 )
Total other expense 5,435 6,966 4,172 22,205 10,135
Income (loss) from continuing operations before provision for income taxes (3,820 ) 9,481 5,424 7,244 (9,391 )
Provision (benefit) for income taxes 33 53 (58 ) 183 (58 )
Net income (loss) from continuing operations (3,853 ) 9,428 5,482 7,061 (9,333 )
Income (loss) from discontinued operations, net of taxes (468 ) (3,125 )
Net income (loss) $ (3,853 ) $ 9,428 $ 5,014 $ 7,061 $ (12,458 )
Adjusted EBITDA (a) $ 7,927 $ 23,362 $ 18,743 $ 48,675 $ 26,345
Volume of frac sand sold (tons in thousands) 985 1,519 1,361 3,941 3,890
Volume of non-frac sand sold (tons in thousands) 88 70 119 224 233
Total volume of sand sold (tons in thousands) 1,073 1,589 1,480 4,165 4,123
Terminal sand sales (tons in thousands) 247 415 671 1,249 1,803
Volume of frac sand produced by plant (tons in thousands):
Arland, Wisconsin facility 161 493 463 1,061 1,339
Barron, Wisconsin facility 353 509 497 1,360 1,547
New Auburn, Wisconsin facility 210 310 346 865 965
San Antonio, Texas facility (b) 223 109 16 391 16
Kosse, Texas facility 95 108 53 302 165
Total volume of frac sand produced 1,042 1,529 1,375 3,979 4,032

(a)   See section entitled “Adjusted EBITDA and Distributable Cash Flow” that includes a definition of Adjusted EBITDA and provides reconciliation to GAAP net income and cash flows.

(b)   Emerge Energy commenced frac sand production at the San Antonio facility in July 2017.

Continuing operations

Net income (loss) decreased $13.3 million for the third quarter of 2018, compared to the second quarter of 2018, mainly due to a 32% decrease in volumes sold and lower prices for northern white sand.  Volumes sold decreased mainly due to a slow down in well completion activity along with an increase in production from competitors’ new in-basin mines, which led to pricing pressures, primarily on northern white sand.  Volumes sold through our terminals totaled 23% of volume in the third quarter of 2018, compared to 26% in the second quarter of 2018.

Adjusted EBITDA declined $15.4 million for the third quarter of 2018, compared to the second quarter of 2018, mainly due to decreased volumes, lower sand prices in the third quarter, and unabsorbed fixed costs for idled railcars.

Net income (loss) decreased $8.9 million and Adjusted EBITDA declined $10.8 million for the third quarter of 2018, compared to same quarter in 2017, mainly due to a decrease in total volumes sold and a shift in mix between direct FOB plant sales and terminal sand sales.  Volumes sold through our terminals totaled 23% of volume in the third quarter of 2018, compared to 45% in the third quarter of 2017.  This was offset by lower selling, general and administrative expenses due to reduced incentive compensation accruals.

Discontinued operations

During the three months ended September 30, 2017, we recorded a non-cash charge of $0.5 millionrelated to the August 2016 sale of the Fuel business.

Capital Expenditures

For the three months ended September 30, 2018, Emerge Energy’s capital expenditures totaled $8.3 million.

About Emerge Energy Services LP

Emerge Energy Services LP (NYSE: EMES) is a growth-oriented limited partnership engaged in the businesses of mining, producing, and distributing silica sand, a key input for the hydraulic fracturing of oil and natural gas wells.  Emerge Energy operates its Sand business through its subsidiary Superior Silica Sands LLC.  Emerge Energy also processed transmix, distributed refined motor fuels, operated bulk motor fuel storage terminals, and provided complementary fuel services through its fuel division which was sold on August 31, 2016.

Forward-Looking Statements

This release contains certain statements that are “forward-looking statements.” These statements can be identified by the use of forward-looking terminology including “may,” “believe,” “will,” “expect,” “anticipate,” or “estimate.” These forward-looking statements involve risks and uncertainties, and there can be no assurance that actual results will not differ materially from those expected by management of Emerge Energy Services LP.  When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in Emerge Energy’s Annual Report on Form 10-K filed with the SEC. The risk factors and other factors noted in the Annual Report could cause actual results to differ materially from those contained in any forward-looking statement.  Except as required by law, Emerge Energy Services LP does not undertake any obligation to update or revise such forward-looking statements to reflect events or circumstances that occur after the date hereof.

PRESS CONTACT

Investor Relations
(817) 618-4020

Emerge Energy Services LP Announces Date for Earnings Release

Posted on: October 12th, 2018 by Sabrina Henn No Comments

Fort Worth, Texas – October 12, 2018 – Emerge Energy Services LP (“Emerge Energy”) today announced that it will release its third quarter 2018 results before the financial markets open on Tuesday, November 6, 2018. A conference call to discuss the third quarter 2018 financial and operating results will be held on Tuesday, November 6, 2018 at 3:00 p.m. CT. Callers may listen to the live presentation, which will be followed by a question and answer segment, by dialing (855) 850-4275 or (720) 634-2898 and entering pass code 1475479. An audio webcast of the call will be available at www.emergelp.comwithin the Investor Relations portion of the website under the Webcasts & Presentations section. A replay will be available by audio webcast and teleconference for seven days following the conclusion of the call. The replay teleconference will be available by dialing (855) 859-2056 or (404) 537-3406 and the reservation number 1475479.

About Emerge Energy Services LP

Emerge Energy Services LP (NYSE: EMES) is a growth-oriented limited partnership engaged in the business of mining, producing, and distributing silica sand, a key input for the hydraulic fracturing of oil and natural gas wells, through its subsidiary Superior Silica Sands LLC.

PRESS CONTACT
Investor Relations
(817) 618-4020

Emerge Energy Services LP Receives New Air Permit for San Antonio Plant

Posted on: September 4th, 2018 by Sabrina Henn No Comments

Fort Worth, Texas – September 4, 2018 – Emerge Energy Services LP today announced that its subsidiary Superior Silica Sands LLC has received its New Source Review (“NSR”) permit for the San Antonio in-basin frac sand operation. The NSR permit increases the amount of allowed air emissions for processing frac sand, providing a clear path for the San Antonio plant to reach its targeted annual capacity of 4 million tons per year, which we expect to occur by the beginning of the fourth quarter.

Additionally, the new San Antonio dry plant began producing and shipping sand from the second processing line last week. The plant is now quickly ramping up production on this second dryer line, while construction to upgrade the plant to the ultimate 4 million tons per year capacity has also been initiated. This final portion of the construction project should be completed by the end of September, and the total projected construction budget for the entire San Antonio plant remains under $65 million.

“Obtaining the NSR permit marks a critical step to finishing the year strong,” noted Rick Shearer, Chief Executive Officer of the general partner of Emerge Energy. “Demand for our in-basin product remains robust, and we expect to sell out the plant’s entire 4 million tons of annual capacity beginning in the fourth quarter once we finish the minor equipment upgrades. We are proud to be one of the first movers for in-basin sand in the Eagle Ford basin, and we are very excited about expanding our capabilities to serve our customers in this growing shale play.”

About Emerge Energy Services LP

Emerge Energy Services LP (NYSE: EMES) is a growth-oriented limited partnership engaged in the business of mining, producing, and distributing silica sand, a key input for the hydraulic fracturing of oil and natural gas wells, through its subsidiary Superior Silica Sands LLC.

Forward-Looking Statements

This release contains certain statements that are “forward-looking statements.” These statements can be identified by the use of forward-looking terminology including “may,” “believe,” “will,” “expect,” “anticipate,” or “estimate.” These forward-looking statements involve risks and uncertainties, and there can be no assurance that actual results will not differ materially from those expected by management of Emerge Energy Services LP.  When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in Emerge Energy’s Annual Report on Form 10-K filed with the SEC. The risk factors and other factors noted in the Annual Report could cause actual results to differ materially from those contained in any forward-looking statement.  Except as required by law, Emerge Energy Services LP does not undertake any obligation to update or revise such forward-looking statements to reflect events or circumstances that occur after the date hereof.

PRESS CONTACT
Investor Relations
(817) 618-4020

Emerge Energy Services Announces Second Quarter 2018 Results

Posted on: August 1st, 2018 by Sabrina Henn No Comments

Fort Worth, Texas – August 1, 2018 – Emerge Energy Services LP (“Emerge Energy”) today announced second quarter 2018 financial and operating results.

Highlights

·         Total volumes sold increased 6% sequentially to a record 1,589 thousand tons in the second quarter.

·         Net income of $9.4 million and diluted earnings per unit of $0.30 for the second quarter.

·         Adjusted EBITDA increased 34% sequentially to $23.4 million for the second quarter.

Overview

Emerge Energy reported net income of $9.4 million, or $0.30 per diluted unit, for the three months ended June 30, 2018, compared to a net loss of $6.1 million, or $(0.30) per diluted unit for the three months ended June 30, 2017.  For the three months ended March 31, 2018, net income was $1.5 million, or $0.05 per diluted unit.

Net revenues were $101.8 million for the three months ended June 30, 2018, compared to $82.6 millionfor the three months ended June 30, 2017, and $106.8 million for the three months ended March 31, 2018.  Despite the 6% increase in volumes sequentially in the second quarter, net revenues decreased due to a decrease in the higher priced, terminal sales volumes.  Volumes sold through our terminals totaled 26% of volume in the second quarter of 2018, compared to 39% in the first quarter of 2018.

Adjusted EBITDA was $23.4 million for the three months ended June 30, 2018, compared to $7.5 millionfor the three months ended June 30, 2017, and $17.4 million for the three months ended March 31, 2018.

Emerge Energy generated Distributable Cash Flow of $17.3 million for the three months ended June 30, 2018.  Adjusted EBITDA and Distributable Cash Flow are non-GAAP financial measures that Emerge Energy uses to assess its performance on an ongoing basis.  Emerge Energy will not make a cash distribution on its common units for the three months ended June 30, 2018, as the board of directors of its general partner did not approve a cash distribution.

“We delivered solid results in the second quarter,” noted Ted W. Beneski, Chairman of the board of directors of the general partner of Emerge Energy.  “Our total volumes sold improved by 6% sequentially to 1.6 million tons, and our Adjusted EBITDA increased by 34% sequentially to $23.4 millionas higher sand prices, an increase of in-basin sales at our San Antonio and Kosse plants, and lower logistics costs boosted our margins.”

“The demand for frac sand remains healthy, but we experienced a minor slowdown to finish the second quarter, and the softness has partially continued into early third quarter.  Conversations with our customers indicate that the conditions are temporary given the Permian takeaway constraints.  However, we acknowledge that the frac sand industry faces a state of transition with the utilization of new in-basin plants increasing throughout the year.  As a top five producer in the frac sand industry in the United States, we believe we are at the forefront of diversifying our business model to meet the new needs of the industry with both northern white and in-basin capabilities.”

“Demand for our San Antonio product is very strong, and we have made considerable progress on customer contracting by executing several agreements.  San Antonio production volumes increased in the second quarter, but we incurred a two-month construction delay at the new dry plant.  We are now expecting completion in late-August, so the San Antonio volumes should improve significantly in the third quarter.  Also, we are now highly confident that we will receive the new NSR permit by late-August, allowing us to expand the plant to the ultimate 4.0 million tons per year capacity by the end of the third quarter this year.”

“We are excited about our previously announced new Oklahoma facility.  We continue to work through the permitting process and expect to break ground on the new plant by mid-August.  With the 1.5 million tons of new capacity at this plant, our total in-basin capacity will be 6.1 million tons, or approximately 50% of our total frac production capacity.”

“Finally, due to the San Antonio construction delay, we are updating our 2018 full year guidance to $110 million for Adjusted EBITDA and $50 million for net income.  Despite the delay, we are nicely positioned for a strong second half of the year.”

Conference Call

Emerge Energy will host its 2018 second quarter results conference call on Wednesday, August 1, 2018at 3:00 p.m. CT. Callers may listen to the live presentation, which will be followed by a question and answer segment, by dialing (855) 850-4275 or (720) 634-2898 and entering pass code 9248628. An audio webcast of the call will be available at www.emergelp.com within the Investor Relations portion of the website under the Webcasts & Presentations section. A replay will be available by audio webcast and teleconference for seven days following the conclusion of the call. The replay teleconference will be available by dialing (855) 859-2056 or (404) 537-3406 and the reservation number 9248628.

 

Operating Results

The following table summarizes Emerge Energy’s operating results for the six months ended June 30, 2018, and 2017, and three months ended March 31, 2018:

Three Months Ended Six Months Ended June 30,
June 30, 2018 March 31, 2018 June 30, 2017 2018 2017
($ in thousands)
Revenues:
Frac sand revenues $ 100,788 $ 105,971 $ 80,909 $ 206,759 $ 156,091
Non-frac sand revenues 1,054 779 1,693 1,833 1,855
Total revenues 101,842 106,750 82,602 208,592 157,946
Operating expenses:
Cost of goods sold (excluding depreciation, depletion and amortization) 72,650 80,242 71,428 152,892 143,739
Depreciation, depletion and amortization 5,355 4,861 5,675 10,216 10,331
Selling, general and administrative expenses 7,390 8,571 6,850 15,961 12,728
Contract and project terminations 1,689 1,689
Total operating expenses 85,395 95,363 83,953 180,758 166,798
Operating income (loss) 16,447 11,387 (1,351 ) 27,834 (8,852 )
Other expense (income):
Interest expense, net 6,736 10,492 5,082 17,228 8,280
Other 230 (688 ) (3,008 ) (458 ) (2,317 )
Total other expense 6,966 9,804 2,074 16,770 5,963
Income (loss) from continuing operations before provision for income taxes 9,481 1,583 (3,425 ) 11,064 (14,815 )
Provision (benefit) for income taxes 53 97 150
Net income (loss) from continuing operations 9,428 1,486 (3,425 ) 10,914 (14,815 )
Income (loss) from discontinued operations, net of taxes (2,657 ) (2,657 )
Net income (loss) $ 9,428 $ 1,486 $ (6,082 ) $ 10,914 $ (17,472 )
Adjusted EBITDA (a) $ 23,362 $ 17,386 $ 7,534 $ 40,748 $ 7,602
Volume of frac sand sold (tons in thousands) 1,519 1,437 1,284 2,956 2,529
Volume of non-frac sand sold (tons in thousands) 70 66 108 136 114
Total volume of sand sold (tons in thousands) 1,589 1,503 1,392 3,092 2,643
Terminal sand sales (tons in thousands) 415 587 544 1,002 1,132
Volume of frac sand produced by plant (tons in thousands):
Arland, Wisconsin facility 493 407 508 900 876
Barron, Wisconsin facility 509 498 518 1,007 1,050
New Auburn, Wisconsin facility 310 345 302 655 619
San Antonio, Texas facility (b) 109 59 168
Kosse, Texas facility 108 99 47 207 112
Total volume of frac sand produced 1,529 1,408 1,375 2,937 2,657

(a)   See section entitled “Adjusted EBITDA and Distributable Cash Flow” that includes a definition of Adjusted EBITDA and provides reconciliation to GAAP net income and cash flows.

(b)   Emerge Energy commenced frac sand production at the San Antonio facility in July 2017.

Continuing operations

Net income (loss) improved $7.9 million for the second quarter of 2018, compared to first quarter of 2018, mainly due to one-time non-cash charges of $3.9 million write-off of deferred financing costs relating to the reduction of our revolving credit facility, and $1.7 million to write off the land owner agreements and related prepaid royalties incurred in the first quarter.  We also incurred a one-time charge of $1.1 million of professional fees related to the refinancing in January 2018.  Net income also improved in the second quarter of 2018 due to increased prices and higher volumes at our San Antonioand Kosse facilities.  Volumes sold through our terminals totaled 26% of volume in the second quarter of 2018, compared to 39% in the first quarter of 2018.

Adjusted EBITDA improved $6.0 million for the second quarter of 2018, compared to the first quarter of 2018, mainly due to higher sand prices and increased volumes in the second quarter and a $4 millionpayment of deferred expenses in the first quarter.

Net income (loss) improved $15.5 million and Adjusted EBITDA improved $15.8 million for the second quarter of 2018, compared to same quarter in 2017, mainly due to an increase in total volumes sold, higher prices, and lower production costs on a per-ton basis.  This was offset by increased selling, general and administrative expenses due to increased staffing in 2018.

Discontinued operations

During the three months ended June 30, 2017, we recorded a non-cash charge of $2.7 million related to the August 2016 sale of the Fuel business.

Capital Expenditures

For the three months ended June 30, 2018, Emerge Energy’s capital expenditures totaled $25.7 million.

About Emerge Energy Services LP

Emerge Energy Services LP (NYSE: EMES) is a growth-oriented limited partnership engaged in the businesses of mining, producing, and distributing silica sand, a key input for the hydraulic fracturing of oil and natural gas wells.  Emerge Energy operates its Sand business through its subsidiary Superior Silica Sands LLC.  Emerge Energy also processed transmix, distributed refined motor fuels, operated bulk motor fuel storage terminals, and provided complementary fuel services through its fuel division which was sold on August 31, 2016.

Forward-Looking Statements

This release contains certain statements that are “forward-looking statements.” These statements can be identified by the use of forward-looking terminology including “may,” “believe,” “will,” “expect,” “anticipate,” or “estimate.” These forward-looking statements involve risks and uncertainties, and there can be no assurance that actual results will not differ materially from those expected by management of Emerge Energy Services LP.  When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in Emerge Energy’s Annual Report on Form 10-K filed with the SEC. The risk factors and other factors noted in the Annual Report could cause actual results to differ materially from those contained in any forward-looking statement.  Except as required by law, Emerge Energy Services LP does not undertake any obligation to update or revise such forward-looking statements to reflect events or circumstances that occur after the date hereof.

PRESS CONTACT

Investor Relations
(817) 618-4020

Emerge Energy Services LP Announces a New Terminal Opening in Utah

Posted on: July 31st, 2018 by Sabrina Henn No Comments

Fort Worth, Texas – July 31, 2018 – Superior Silica Sands LLC, a subsidiary of Emerge Energy Services LP(“Emerge Energy”), is pleased to announce that it has signed an agreement with Price River Terminal, LLC (“PRT”) to access its existing multi-commodity terminal in Wellington, Utah for frac sand handling. Including this new terminal, Emerge Energy will have 13 total active terminals across North America.

PRT currently handles crude oil and other bulk commodities across six miles of existing rail track, and additional track will be constructed as part of the agreement to serve Emerge Energy. Watco Supply Chain Services (“Watco”) operates the facility on a 24/7 basis, ensuring maximum loading flexibility for customers. Watco is a leading logistics and supply chain company offering a range of services from single shipment logistics to complete network design and operation.

Emerge Energy works closely with the Union Pacific and BNSF Railway to ship sand for its existing operations, and this relationship will now extend to the PRT facility served directly by both of these carriers. Although new track construction will not be completed until November, Emerge Energy will begin shipping product in September.

“We are excited about gaining a logistical advantage in the Uintah basin,” noted Rick Shearer, Chief Executive Officer of the general partner of Emerge Energy. “This market is a promising and growing outlet for northern white sand. We are well into sales contract discussions with current and new customers who are expanding or moving into the basin. The Uintah activity is further evidence that demand for northern white sand is increasing in other basins outside of Texas. Additionally, access to the BNSF and Union Pacific networks from our New Auburn and Arland, Wisconsin plants provides us strategic options to transport northern white product into Utah to the dual served PRT facility. We will continue to build on our great relationships with these two carriers. Finally, we are pleased to partner with Watco, who has a leading position in transloading logistics, and we look forward to a promising future for this expanded site.”

About Emerge Energy Services LP

Emerge Energy Services LP (NYSE: EMES) is a growth-oriented limited partnership engaged in the business of mining, producing, and distributing silica sand, a key input for the hydraulic fracturing of oil and natural gas wells, through its subsidiary Superior Silica Sands LLC.

PRESS CONTACT
Investor Relations
(817) 618-4020

Superior Silica Sands’ SandMaxX(TM) Advertisement in Hart Energy’s E&P Magazine (pg. 11)

Posted on: July 25th, 2016 by Sabrina Henn No Comments

Hart Energy E&P Magazine pg 11

 

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