Hi-Crush Inc.’s HCR board recently approved a stock repurchase program of up to $25 million. Per the company, the repurchase is immediately effective and authorized through Jun 30, 2020.
The company’s latest program indicates ongoing confidence in its strategy and balance sheet strength. Hi-Crush stated that it is committed to execute the program. Moreover, valuations and current prices are attractive basis for the repurchase.
The management also stated that there are no restrictions regarding to stock repurchases under its senior secured revolving credit facility (ABL facility) and senior notes due 2026. Notably, there are no obligations for the company to repurchase any specific number of shares or dollar amount. The program may also be modified, suspended or discontinued by the board of directors at any time and without notice.
As of Jun 7, 2019, the company had cash worth $53.7 million and available borrowing capacity of $55 million under the ABL Facility. Moreover, it had no borrowings under the facility and was in compliance with the terms and conditions under all credit agreements.
Hi-Crush reiterated guidance for second-quarter 2019. It expects sales volumes in the range of 2.5-2.7 million tons for the quarter. It has 15 PropStream and Pronghorn Logistics container crews operating throughout the major U.S. basins. Also, the company has 8 silo systems and top-fill conveyor systems deployed in the Marcellus/Utica and Permian shale basins.
Zacks Rank & Key Picks
Hi-Crush currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the basic materials space are Materion Corporation MTRN, Flexible Solutions International Inc FSI and AngloGold Ashanti Limited AU, all currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Materion has an expected earnings growth rate of 27.3% for 2019. The company’s shares have gained 13% in the past year.
Flexible Solutions has a projected earnings growth rate of 342.9% for the current year. The company’s shares have surged 137.4% in a year’s time.
AngloGold has an expected earnings growth rate of 90.6% for the current year. Its shares have rallied 73.5% in the past year.
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