Saturday, November 22, 2014

Hot Oil Stocks To Watch Right Now

Hot Oil Stocks To Watch Right Now: Hi Crush Partners LP (HCLP)

Hi Crush Partners LP, formerly Hi-Crush Partners LP, is a domestic producer of monocrystalline sand, a specialized mineral that is used as a proppant to enhance the recovery rates of hydrocarbons from oil and natural gas wells. The Company reserves consist of Northern White sand, a resource existing in Wisconsin and limited portions of the upper Midwest region of the United States. It owns, operates and develops sand reserves and related excavation and processing facilities and will seek to acquire or develop additional facilities. The Company's 561-acre facility with integrated rail infrastructure, located near Wyeville, Wisconsin, enables it to process and deliver approximately 1,600,000 tons of frac sand per year. In June 2013, Hi Crush Partners LP announced the completion of its acquisition of D&I Silica, LLC (D&I).

The Company's frac sand production is sold to investment grade-rated pressure pumping service providers under long-term, contracts that req uire its customers to pay a specified price for a specified volume of frac sand each month. The Company owns and operates the Wyeville facility, which is located in Monroe County, Wisconsin and, as of December 31, 2011, contained 48.4 million tons of proven recoverable sand reserves of mesh sizes it has contracted to sell. From the Wyeville in-service date to March 31, 2012, it had processed and sold 555,250 tons of frac sand.

Advisors' Opinion:
  • [By Robert Rapier]

    The fracking revolution has created enormous opportunities for Master Limited Partnerships (MLPs) across the oil and gas industry. Upstream MLPs like BreitBurn Energy Partners (NASDAQ: BBEP) and Legacy Reserves (NASDAQ: LGCY) produced the oil and gas. There was a huge new requirement for sand in the fracking operations, and this encouraged new MLPs like Emerge Energy Services (NYSE: ! EMES) and Hi-Crush Partners (NYSE:HCLP) — both of which have more than doubled in price over the past 12 months. Fracking also requires large volumes of water, which Cypress Energy Partners (NYSE: CELP) provides.

  • [By Robert Rapier]

    MLPs that specialize in sand for hydraulic fracturing, like Hi-Crush Partners (NYSE: HCLP) and Emerge Energy Services (NYSE: EMES),  have shown outstanding performance since their IPOs, but if there is any slowdown in business each could be in for a sharp correction.

  • [By Robert Rapier]

    Rounding out the top five were Hi-Crush Partners (NYSE: HCLP), another supplier of fracking sand (+71 percent), EQT Midstream Partners (NYSE: EQM), a midstream provider in the Appalachian Basin (+66.5 percent), and Valero Energy Partners (NYSE:VLP) (+61.5 percent), which consists of midstream assets dropped down from the refiner Valero Energy (NYSE:VLO).

  • [By Robert Rapier and Igor Greenwald]

    Some MLPs have experienced huge capital appreciation. Three–Icahn Enterprises (Nasdaq: IEP), Hi-Crush Partners (NYSE: HCLP), and The Blackstone Group (NYSE: BX)–gained over 100 percent in 2013. A fourth, American Midstream Partners (NYSE: AMID) gained 96 percent for the year.

  • source from Top Stocks For 2015:

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