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Hi-Crush Partners LP : Hi-Crush Partners LP Reports Second Quarter 2013 Results

   Hi-Crush Partners LP : Hi-Crush Partners LP Reports Second Quarter 2013
                                   Results

News Release

           Hi-Crush Partners LP Reports Second Quarter 2013 Results

Houston,  Texas,  August  14,  2013  -  Hi-Crush  Partners  LP  (NYSE:  HCLP), 
"Hi-Crush" or the "Partnership", today  reported net income of $14.7  million, 
or $0.53 per  limited partner unit,  for the second  quarter of 2013.  Second 
quarter results include a net income  contribution of $0.7 million, or  $0.025 
per limited partner unit, for D&I for the period beginning June 11, 2013, when
Hi-Crush completed the D&I transaction, and ending June 30, 2013.

Overview of Financial Results

"The second quarter  was marked by  trends that were  favorable to  Hi-Crush," 
said Robert Rasmus, Co-Chief Executive Officer of Hi-Crush. "Not only did  we 
see an extension of positive trends  from the first quarter, including  rising 
proppant intensity and  a move  towards 24-hour  operations, but  we also  saw 
striking results from producers in the Marcellus and encouraging well  results 
from producers in the Utica.  Our acquisition of D&I  was timely, and we  see 
trends that will continue to propel demand in the near-term."

Revenues for  the  quarter ended  June  30,  2013 totaled  $27.1  million  and 
reflects an average  selling price  in line with  projections. Hi-Crush  sold 
358,162 tons of frac sand produced from the Wyeville facility for the  quarter 
ended June 30, 2013. D&I contributed  an additional 56,473 tons in frac  sand 
sales for the period beginning  June 11, 2013 and  ending June 30, 2013.  For 
the quarter ended June 30, 2013, distributable cash flow was $15.6 million and
earnings before interest, taxes, depreciation and amortization ("EBITDA")  was 
$16.4 million.

"Our customers met or exceeded their contract terms in the second quarter, and
volumes were trending up throughout  the quarter as we transferred  contracted 
tons from Augusta  and our  customers took advantage  of beneficial  pricing," 
said James Whipkey, Co-Chief Executive  Officer of Hi-Crush. "This,  combined 
with our  sales  under  spot  arrangements, resulted  in  our  Wyeville  plant 
operating at almost full capacity for the quarter and achieving record  levels 
of production in the month of June. With D&I now integrated into Hi-Crush, we
see many  opportunities  ahead to  increase  volumes across  our  consolidated 
company."

On July 17, 2013,  Hi-Crush declared its second  quarter cash distribution  of 
$0.475  per  unit  for  all  common  and  subordinated  units.  This   amount 
corresponds to the minimum quarterly cash distribution of $0.475 per unit,  or 
$1.90 on an annualized basis and will be paid on August 15, 2013 to all common
and subordinated unitholders of record on August 1, 2013.

Conference Call

A conference call for investors will be  held on Thursday, August 14, 2013  at 
9:00 a.m. Central Time (10:00 a.m. Eastern Time) to discuss Hi-Crush's  second 
quarter results  and forward  outlook. Hosting  the call  will be  Robert  E. 
Rasmus, Co-Chief  Executive  Officer,  James M.  Whipkey,  Co-Chief  Executive 
Officer and Laura C. Fulton, Chief Financial Officer.

The call can be accessed live over the telephone by dialing (877) 705-6003, or
for international callers, (201) 493-6725. A replay will be available shortly
after the  call  and  can  be  accessed by  dialing  (877)  870-5176,  or  for 
international callers (858) 384-5517. The  passcode for the replay is  418530. 
The replay will be available until August 28, 2013.

Interested parties may also listen to a simultaneous webcast of the conference
call by  logging onto  Hi-Crush's website  at www.hicrushpartners.com  in  the 
Investors-Event Calendar and  Presentations section. A  replay of the  webcast 
will also be available for approximately 30 days following the call.

The slide presentation to be referenced on the call will also be on Hi-Crush's
website  at  www.hicrushpartners.com  in  the  Investors-Event  Calendar   and 
Presentations section.

Non-GAAP Financial Measures

This  news  release  and  the  accompanying  schedules  include  the  non-GAAP 
financial measure of  EBITDA, Distributable  Cash Flow  and Production  Costs, 
which may be  used periodically  by management when  discussing our  financial 
results with investors and analysts. The accompanying schedules of this  news 
release provide reconciliations of these non-GAAP financial measures to  their 
most directly  comparable  financial  measures  calculated  and  presented  in 
accordance with generally accepted accounting principles in the United  States 
of America ("GAAP"). EBITDA, Distributable Cash Flow and Production Costs are
presented as  management believes  the data  provides a  measure of  operating 
performance  that  is  unaffected  by  historical  cost  basis  and   provides 
additional  information  and  metrics  relative  to  the  performance  of  our 
business.

About Hi-Crush

Hi-Crush is an integrated producer, transporter, marketer and distributor of
high-quality monocrystalline and, a specialized mineral that is used as a
"proppant" (frac sand) to enhance the recovery rates of hydrocarbons from oil
and natural gas wells. Our reserves, which are located in Wyeville, Wisconsin,
consist of "Northern White" sand, a resource that exists predominately in
Wisconsin and limited portions of the upper Midwest region of the United
States. Hi-Crush owns and operates the largest distribution network in the
Marcellus and Utica shales, and has distribution capabilities throughout North
America. For more information, visit www.hicrushpartners.com.

Forward-Looking Statements

Some of  the information  in  this news  release may  contain  forward-looking 
statements within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E  of the Securities Exchange  Act of 1934, as  amended 
(the  "Exchange   Act").   Forward-looking  statements   give   our   current 
expectations, and contain projections of results of operations or of financial
condition, or  forecasts of  future  events. Words  such as  "may,"  "assume," 
"forecast," "position,"  "predict,"  "strategy," "expect,"  "intend,"  "plan," 
"estimate,"   "anticipate,"   "could,"    "believe,"   "project,"    "budget," 
"potential," or  "continue,"  and similar  expressions  are used  to  identify 
forward-looking statements. They  can be  affected by assumptions  used or  by 
known or  unknown risks  or uncertainties.  Consequently, no  forward-looking 
statements  can  be  guaranteed.   When  considering  these   forward-looking 
statements, you should  keep in  mind the  risk factors  and other  cautionary 
statements in  Hi-Crush's  reports  filed with  the  Securities  and  Exchange 
Commission ("SEC"), including those described under 1A of Hi-Crush's Form 10-K
for the year ended December 31, 2012 and any subsequently filed 10-Q.  Actual 
results may vary materially. You are cautioned not to place undue reliance  on 
any forward-looking statements.  You should  also understand that  it is  not 
possible to predict or identify all  such factors and should not consider  the 
risk factors in our reports filed with the  SEC or the following list to be  a 
complete statement of  all potential  risks and  uncertainties. Factors  that 
could  cause  our  actual  results  to  differ  materially  from  the  results 
contemplated by such  forward-looking statements include:  the volume of  frac 
sand we are able to sell;  the price at which we  are able to sell frac  sand; 
the outcome of any pending litigation;  changes in the price and  availability 
of natural gas or electricity; changes in prevailing economic conditions;  and 
difficulty  collecting  receivables.   All  forward-looking  statements   are 
expressly qualified in their entirety by the foregoing cautionary  statements. 
Hi-Crush's forward-looking  statements speak  only as  of the  date made  and 
Hi-Crush undertakes  no obligation  to update  or revise  its  forward-looking 
statements,  whether  as  a  result  of  new  information,  future  events  or 
otherwise.

Investor contact:

Investor Relations
ir@hicrushpartners.com
(713) 960-4811

Unaudited Condensed Consolidated Statement of Operations
(Amounts in thousands, except tons, units and per unit amounts)   



                                                 Three Months    Three Months
                                                     Ended           Ended
                                                 June 30, 2013   June 30, 2012
                                                   Successor      Predecessor
Revenues                                       $        27,101 $        20,643
Cost of goods sold (including depreciation,
depletion, and amortization)                            11,585           5,495
     Gross profit                                       15,516          15,148
Operating costs and expenses:
     General and administrative                          3,847           1,650
     Exploration expense                                    45             220
     Accretion of asset retirement obligation               30               6
                Income from operations                  11,594          13,272
Other income (expense):
 Income from preferred interest in Hi-Crush
 Augusta LLC                                             3,750               -
 Interest expense                                        (663)         (1,457)
                Net income                     $        14,681 $        11,815
Earnings per unit:
 Common units - basic and diluted              $          0.53
 Subordinated units - basic and diluted        $          0.53
Weighted average limited partner units
outstanding:
 Common units - basic and diluted                   13,992,894
 Subordinated units - basic and diluted             13,640,351

Unaudited Condensed Consolidated Statement of Operations
(Amounts in thousands, except tons, units and per unit amounts)



                                                  Six Months      Six Months
                                                     Ended           Ended
                                                 June 30, 2013   June 30, 2012
                                                   Successor      Predecessor
Revenues                                       $        46,729 $        34,175
Cost of goods sold (including depreciation,
depletion, and amortization)                            17,367          10,271
     Gross profit                                       29,362          23,904
Operating costs and expenses:
     General and administrative                          6,566           3,137
     Exploration expense                                    46             419
     Accretion of asset retirement obligation               59              12
                Income from operations                  22,691          20,336
Other income (expense):
 Income from preferred interest in Hi-Crush
 Augusta LLC                                             3,750               -
 Interest expense                                        (977)         (2,385)
                Net income                     $        25,464 $        17,951
Earnings per unit:
 Common units - basic and diluted              $          0.93
 Subordinated units - basic and diluted        $          0.93
Weighted average limited partner units
outstanding:
 Common units - basic and diluted                   13,819,458
 Subordinated units - basic and diluted             13,640,351

Unaudited EBITDA and Distributable Cash Flow

(Amounts in thousands)



                                                 Three Months    Three Months
                                                     Ended           Ended
                                                 June 30, 2013   June 30, 2012
                                                   Successor      Predecessor
Reconciliation of EBITDA and Distributable
Cash Flow to Net Income:
 Net income                                    $        14,681 $        11,815
 Depreciation, depletion, and amortization               1,085             489
 Interest expense                                          663           1,457
EBITDA                                         $        16,429 $        13,761
 Less: Cash interest paid                                (370)
 Less: Maintenance and replacement capital
 expenditures, including accrual for reserve
 replacement (1)                                         (484)
 Add: Accretion of asset retirement
 obligation                                                 30
Distributable cash flow                        $        15,605
                                                  Six Months      Six Months
                                                     Ended           Ended
                                                 June 30, 2013   June 30, 2012
                                                   Successor      Predecessor
Reconciliation of EBITDA and Distributable
Cash Flow to Net Income:
 Net income                                    $        25,464 $        17,951
 Depreciation, depletion, and amortization               1,358             668
 Interest expense                                          977           2,385
EBITDA                                         $        27,799 $        21,004
 Less: Cash interest paid                                (625)
 Less: Maintenance and replacement capital
 expenditures, including accrual for reserve
 replacement (1)                                         (906)
 Add: Accretion of asset retirement
 obligation                                                 59
 Add: Quarterly distribution from preferred
 interest in Augusta (2)                                 3,750
Distributable cash flow                        $        30,077

1.Maintenance and replacement  capital expenditures,  including accrual  for 
    reserve  replacement,  were  determined  based  on  an  estimated  reserve 
    replacement  cost  of  $1.35  per  ton  sold  during  the  period.   Such 
    expenditures include those  associated with the  replacement of  equipment 
    and sand  reserves, to  the  extent that  such  expenditures are  made  to 
    maintain our long-term operating capacity. The amount presented does  not 
    represent an actual reserve account or requirement to spend the capital.

2.The amount pertains to the second quarter performance of Augusta, on which
    we are entitled to  receive a preferred distribution  of $3,750. We  have 
    included this amount  in our distributable  cash flow for  the six  months 
    ended June 30, 2013 as we received this distribution on August 9, 2013, in
    advance of our second  quarter 2013 cash distributions  to our common  and 
    subordinated unitholders,  which will  be paid  on August  15, 2013.  The 
    amount is not reflected in our  GAAP net income because our investment  in 
    Augusta is accounted for under the  cost method. In accordance with  that 
    method, any  distributions earned  under our  preferred interest  are  not 
    recognized  as  income  until  the  cash  is  actually  received  by   the 
    Partnership.

Unaudited Condensed Consolidated Cash Flow Information
(Amounts in thousands)



                                             Six Months      Six Months
                                                Ended           Ended
                                            June 30, 2013   June 30, 2012
                                              Successor      Predecessor
Depreciation, depletion, and amortization $         1,358 $           668
Net cash provided by operating activities          26,555           5,063
Net cash used in investing activities           (136,352)        (50,296)
Net cash provided by financing activities         117,152          45,929
Net increase in cash                                7,355             696

Unaudited Condensed Consolidated Balance Sheet
(Amounts in thousands)



                                                 June 30,    December 31,
                                                   2013          2012
                                                 Successor    Successor
Assets
Current assets:
    Cash                                       $    17,853 $       10,498
    Restricted cash                                    688              -
    Accounts receivable                             27,702          8,199
    Inventories                                     11,909          3,541
    Due from Sponsor                                     -          5,615
    Prepaid expenses and other current assets          866            393
       Total current assets                         59,018         28,246
Property, plant and equipment, net                 112,982         72,844
Goodwill and intangible assets, net                 74,624              -
Preferred interest in Hi-Crush Augusta LLC          47,043              -
Other                                                1,809          1,095
       Total assets                            $   295,476 $      102,185
Liabilities and Partners' Capital
Current liabilities:
    Accounts payable                           $     9,148 $        1,977
    Accrued and other current liabilities            3,381          1,755
    Due to Sponsor                                   1,357              -
    Deferred revenue                                     -          1,715
       Total current liabilities                    13,886          5,447
    Long-term debt                                 138,250              -
    Asset retirement obligation                      1,614          1,555
       Total liabilities                           153,750          7,002
       Total partners' capital                     141,726         95,183
       Total liabilities and partners' capital $   295,476 $      102,185

Unaudited Production Cost per Ton



                                    Three Months    Three Months
                                        Ended           Ended
                                    June 30, 2013   June 30, 2012
                                      Successor      Predecessor
Sand sold (tons)                          358,162         316,599
Production costs ($ in thousands) $         4,758 $         5,006
Production costs per ton          $         13.28 $         15.81
                                     Six Months      Six Months
                                        Ended           Ended
                                    June 30, 2013   June 30, 2012
                                      Successor      Predecessor
Sand sold (tons)                          670,892         539,257
Production costs ($ in thousands) $        10,267 $         9,603
Production costs per ton          $         15.30 $         17.81

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The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
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information contained therein.

Source: Hi-Crush Partners LP via Thomson Reuters ONE
HUG#1722855