Hi-Crush Partners (HCLP) reported a loss in the fourth quarter of 2018 as a perfect storm of events, namely lower oil prices, poor weather, budget exhaustions, and slowing completions from inadequate takeaway capacity, all occurred, causing lower frac sand pricing and a reduction in volumes.
All of these issues are transitory, and should be resolved by the end of 2019. However, the fact that Northern White pricing is suffering is not transitory, and should continue to penalize miners who have higher costs and less in-basin supply.
Thankfully for HCLP, the company has a