By CASEY HOERTH | NOV 26, 2014 | 10:00 AM EST | 0
The market definitely sees at least some pain ahead for much of the fracking industry, but will $75 oil stop the shale revolution? Major frac sand producer and master limited partnership Hi-Crush Partners (HCLP) is a name that has shed just over a quarter of its value in just the last couple of months.
This is an article from the Street. We are large owners of HCLP but are re-evaluating the wisdom of this. Even though HCLP has 85% of 2015 production sold to take or pay oil services companies, there are substantial risks based on recent price behavior. HCLP has over 50% of their production sold to just 4 service companies, one of which is not investment grade according to their 10k. Even though customers guarantee payment, so did AIG guarantee mortgages in 2008.
via Hi-Crush Partners Is a Solid Buy.
