Second Quarter 2016 Results

Emerge Energy Services Announces Second Quarter 2016 Results

Southlake, Texas - August 8, 2016 - Emerge Energy Services LP ("Emerge Energy") today announced second quarter 2016 financial and operating results.

Highlights

• Net Loss of $(22.9) million and Adjusted EBITDA of $(10.7) million for the three months ended June 30, 2016.

• Full quarter sales of 399,000 tons of sand.

• Entered into a Purchase and Sale Agreement for our Fuel business.

Overview

Emerge Energy reported net loss of $(22.9) million, or $(0.95) per diluted unit, for the three months ended June 30, 2016. For that same period, Emerge Energy reported Adjusted EBITDA of $(10.7) million and Distributable Cash Flow of $(17.3) million. Net income, net income per unit and Adjusted EBITDA for the three months ended June 30, 2015, were $2.9 million, $0.12 per diluted unit and $17.0 million, respectively. Adjusted EBITDA and Distributable Cash Flow are non-GAAP financial measures that Emerge Energy uses to assess its performance on an ongoing basis.

As previously announced, we entered into a Purchase and Sale Agreement (the "Purchase Agreement") with Susser Petroleum Operating Company LLC and Sunoco LP, (together, "Sunoco") on June 23, 2016. Pursuant to the terms of the Purchase Agreement, we agreed to sell to Sunoco all of the issued and outstanding limited liability company interests in our fuel segment. In consideration for the sale of the Companies, Sunoco will pay us a purchase price of approximately $178.5 million in cash, subject to certain working capital and other adjustments in accordance with the terms of the Purchase Agreement. We expect to close this transaction during the third quarter of 2016.

Accordingly, the results of operations of the Fuel business have been classified as discontinued operations for all periods presented and we now operate our continuing business in a single sand segment. Net loss and net loss per diluted unit for continuing operations for the three months ended June 30, 2016 were $(28.2) million and $(1.17) per diluted unit, respectively, compared to net income and net income per diluted unit for continuing operations for the three months ended June 30, 2015 of $0.7 million and $0.03 per diluted unit, respectively.

Emerge Energy will not make a cash distribution on its common units for the three months ended June 30, 2016. Emerge Energy did not generate available cash to distribute for the three months ended June 30, 2016 due to the challenging oil and natural gas frac sand market during this period. In addition, Emerge Energy is restricted from making distributions to its common unitholders until certain financial covenants are met under its amended credit agreement.

"The oil and gas markets presented further industry difficulties during the second quarter," said Ted W. Beneski, Chairman of the Board of Directors of the general partner of Emerge Energy. "However, we made considerable progress on our strategic plan to improve our competitive positioning during the quarter. We announced our Fuel business divestiture in June, and upon close, this transaction will significantly deleverage our balance sheet. We also continued to lower our cost structure and develop our technology-driven proppant products. Finally, we are pleased to announce a $20 million private placement equity offering, which will help strengthen our balance sheet and improve our liquidity."

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