Abraham, Fruchter & Twersky, LLP has commenced an investigation
concerning possible violations of federal securities laws by Hi-Crush
Partners LP ("Hi-Crush Partners" or the "Company") (NYSE: HCLP).
Hi-Crush Partners, based in Houston, Texas, engages in the mining and
processing of raw sands for use in hydraulic fracturing operations in
oil and gas wells. On August 16, 2012, Hi-Crush Partners commenced an
initial public offering ("IPO") of 11,250,000 shares at a price of $17
per share for total proceeds of $191.25 million.
In connection with the IPO, the Company filed a Prospectus and
Registration Statement with the United States Securities and Exchange
Commission disclosing that Baker Hughes, Inc., one of North America's
largest providers of pressure pumping services, is also one of the
Company's largest customers. The filings further indicated that
"[s]ubstantially all of our sales are generated under contracts with
four customers, and the loss of or reduced purchasing by any of them
could adversely affet our results of operations."
Then on November 13, 2012, Hi-Crush Partners filed its quarterly report
disclosing its earnings for the period ended September 30, 2012. The
Company also disclosed for the first time that on September 19, 2012,
Baker Hughes Oilfield Operations, Inc. provided notice that it was
terminating a supply agreement for frac sand with the Company and that
after discussions to resolve the conflict had broken down, Hi-Crush
Partners filed suit against Baker Hughes in the State District Court of
Harris County, Texas, seeking damages for Baker Hughes' alleged "prior
wrongful termination of the supply agreement."
Hi-Crush Partners also cautioned investors that if it is unsuccessful in
its lawsuit against Baker Hughes, or if it is unable to sell the frac
sand to existing or new customers on "economically acceptable terms,"
the Company's business, financial condition, and results of operations
"could be materially harmed."
On this news, the price per share of Hi-Crush common stock fell $5.35,
or more than 26%, to close that day at $15.00, on extremely heavy
If you purchased the common stock of Hi-Crush Partners beginning with
its IPO on August 16, 2012 and would like to discuss this investigation,
or if you have any questions concerning this notice, you may contact:
Jack Fruchter or Christopher Matthews of Abraham, Fruchter & Twersky,
LLP toll free at (800) 440-8986, or via e-mail at email@example.com
Abraham, Fruchter & Twersky, LLP has extensive experience in securities
class action cases, and the firm has been ranked among the leading class
action law firms in terms of recoveries achieved by a survey of class
action law firms conducted by Institutional Shareholder Services.
Attorney Advertising. Prior Results Do Not Guarantee A Similar Outcome.
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