Wells Fargo 13th Annual Energy Symposium Jenniffer Deckard, President and Chief Executive Officer Christopher Nagel, Chief Financial Officer December 10, 2014
Fairmount Santrol Serves Two Major Markets: Oil & Gas and Industrial & Recreation Oil & Gas Proppant Solutions Product Lines: Northern White Frac Sand Texas Gold Frac Sand (Mined in Voca, TX) Resin-Coated Frac Sand Self-Suspending…
We Have a Long History of Investing for Growth REVENUE 1890s: Fairmount (MM) Santrols predecessor companies begin 1,200 2013: Invested capital totaled 560MM and operations included 3 acquisitions 1,000 1976: Pioneered the…
Leading Proppant Solutions Provider Differentiated in Every Area of the Value Chain Broad and innovative product suite addressing over 90% of the PRODUCT PORTFOLIO proppant market API qualified sand 798 million tons of proven mineral…
Our Product Portfolio Addresses Over 90% of the Proppant Market 2013 PROPPANT MARKET SHARE (%) (1) FMSA VOLUME MIX (2) CERAMICS (7%) Delivered In-Basin Pricing: 500 - 900 per ton RESIN COATED SAND (12%) Delivered In-Basin…
Suite of Product Solutions for Well Environment Complexity FAIRMOUNT SANTROL PROPPANTS VS. CLOSURE PRESSURE (1) ADDED VALUE Eliminate Reduce Embedment Flowback Fines HyperpropC PowerPropP OptiProp G2C THSP Super DCC Q3:…
Resin Provides Unique Solutions to Completion Challenges PERFORMANCE IMPROVEMENT FROM RESIN COATED SAND CONDUCTIVITY FRAMEWORK 5,000 Allows more conductivity at Crush Strength CONDUCTIVITY 4,000 crucial closures vs. Flowback…
Proven History of Innovation as a Proppant Solutions Provider PRODUCT INNOVATION DUAL COAT ENCAPSULATED BIOBALLS POWERPROP COOLSET LTNA SELF-SUSPENDING TECHNOLOGY CURABLE PROPPANT PROPPANT (1995) (1997) (2006) (2010) (2014)…
Unique Position in Coated Products with Barriers to Entry Pioneered development of resin coating in 1976 Resin-Coating Captive Captive Resin Capacity (1) Sand Source Manufacturing PATENTED 38 years of product and process expertise…
We Have Leadership Position in the Largest Proppant Categories 2 POSITION IN RAW FRAC SAND CAPACITY 1 POSITION IN RESIN-COATED SAND CAPACITY 2013 CAPACITY (MM TONS) 2013 CAPACITY (MM TONS) 14.0 2.5 12.0 2.0 10.0 1.5 8.0…
The Industrys Largest Operations and Distribution Footprint Comprehensive Logistics Platform and Vertically Integrated Operations with Access to Every Major U.S. Oil & Gas Basin International Operations Manufacturing Footprint…
We Are Built on a Foundation of Sustainable Development PEOPLE PLANET PROSPERITY Conducted four enterprise wide 14 Zero Waste Facilities Saved 6MM by diverting 1.2MM Appreciative Inquiry Summits with lbs. of bulk bags from…
We Have Multiple Avenues to Support Long-Term Sustainable Growth Reserves and Enhanced Logistics Increased Use of Product and Capacity Expansion Capabilities Resin-Coated Sand Process Innovation Strong Long-Term Industry…
Growth in Proppant Demand Continues PROPPANT DEMAND WELLS FARGO RESEARCH CASES FOR U.S. PROPPANT DEMAND IN 2015 AND 2016 PROPPANT PER STAGE 80 70 High case up 21% STAGES PER WELL 60 Low case up 9% Millions of Tons 50…
Achievable Near-Term Capacity Expansion ACHIEVABLE = PERMITS + RAIL CARS + TERMINAL CAPACITY MM TONS 3.0 13.3 1.0 0.5 Raw Frac Sand 8.8 200MM+ Processing RESERVES 2.8 Under Active Development 2009 SEPT 2014 Q1 2015 Q1 2015…
Continuing to Enhance Our Logistics and Leading Terminal Network of Terminals Terminal Capacity 49 22 2009 2014 2016* 2009 2014 2016* of Unit Train Shipments of Rail Cars 13,000* 200* 8,500 90 2,000 2014…
Additional Market Trends Support Long-Term Resin Demand PROPPANT RCS DEMAND DEMAND PROPPANT PER STAGE CONDUCTIVITY = EURS (EMBEDMENT, FINES) STAGES PER WELL GEOLOGIES WITH FLOWBACK CHALLENGES LATERAL LENGTH WELLS PER…
Continued Innovation and Launch of Game-Changing Technologies CoolSet Propel SSP Commercially Launched in Q3 Continued Successful Field Trials Reduces well maintenance costs Increases hydrocarbon recovery Prevents proppant flowback…
Well-Positioned in All Markets CURRENT MARKET INDUSTRY BENEFITS TO CUSTOMER EXPECTATION Flight to quality API spec 15 20% of the Strength and conductivity PRODUCTS PREMIUM Proven and leading industry is non-API Flowback…
We Have a Long and Sustained History of Trusted Partnership with Our Customers LONG-TERM CUSTOMER PARTNERSHIPS STRONG, DIVERSE AND BALANCED CUSTOMER BASE Selected Direct Customers Serving the major Oil Field Service companies since…
Strong 2014 Financial Performance THIRD-QUARTER 2014 RESULTS IN THOUSANDS, EXCEPT PER SHARE DATA Third Quarter YTD 2014 2013 % Change 2014 2013 % Change Revenue 373.5 265.7 40.6% 1,002.7 713.9 40.5% EBITDA 107.4 61.0 76.1%…
Prudent Financial Policy and Strengthening Capital Structure CURRENT CAPITALIZATION AS OF SEPTEMBER 30, 2014 Committed to a strong and stable MM, UNLESS OTHERWISE NOTED capitalization profile Cash and Cash Equivalents 45.1 Cash flow…
The Leading, Fully Integrated Proppant Solutions Producer Leading Proppant Producer; Broadest Product Suite Industrys Largest Captive Terminal Footprint and Broadest Logistics Capabilities Focus on Innovation and New Product…
Questions & Answers 24
Appendix 25
Appendix: Reconciliation of Non-GAAP Financial Measures Three Months Ended September 30, Nine Months Ended September 30, 2014 2013 2014 2013 Reconciliation of adjusted EBITDA (in thousands) (in thousands) Net income attributable to…
Appendix: Reconciliation of Non-GAAP Financial Measures September 30 - YTD Fourth Quarter 2014 2013 LTM Reconciliation of adjusted EBITDA (in thousands) Net income attributable to FMSA Holdings, Inc. 132,537 10,650 143,187 Interest…
Appendix: Reconciliation of Non-GAAP Financial Measures Three Months Ended September 30, Nine Months Ended September 30, 2014 2013 2014 2013 Reconciliation of adjusted earnings (in thousands) (in thousands) Net Income attributable…
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