HOWARD WEIL 42ND ANNUAL ENERGY CONFERENCE MARCH 24th, 2014
SLCA: A Unique Value Proposition Early Innings of Rapid Demand Growth Shale Revolution A Balanced Mix of Stable and Better Insulated From Growing Markets Market Forces and Entrants Sustainable Competitive Grow Faster…
U.S. Silica is Attractively Positioned Company Profile Operations Footprint Low cost, high quality U.S. Silicasilica supplier Overview Mauricetown 15 facilities and over 100 years of history Mapleton Hard to emulate production…
Two Strong, Complimentary Business Segments Business Oil & Gas Industrial & Specialty Products Segments Whole grain silica Northern White raw sand proppants Ground silica 20/40, 30/50, 40/70 and 100 mesh that Products are used…
Business Segment Metrics Volume Revenue Contribution Margin Oil & Gas ISP Oil & Gas ISP Oil & Gas ISP 28% 36% 50% 50% 64% 72% FY 2013 FY 2013 FY 2013 42nd AEC 6
A Balanced Mix of Stable and Growing Markets Revenue by Segment 400 Revenues Protected By 350 Revenue (millions) Superior product offering 300 250 Diversified ISP business 200 Oil & Gas Long-standing, sticky customer…
Growing Demand for Proppant Horizontal Wells Lateral Stages per Proppant Proppant Rig Count per Rig Length Lateral per Stage Demand Growth Drivers Proppant growth has outpaced rig count growth due to higher service intensity…
E&Ps Reporting Increased Sand Usage So were significantly increasing proppant concentrationSo far we are seeing really quite excellent results, 20% to 30% EUR increases. -Pioneer Natural Resources Wed like to enter these plays with…
Emerging Trends in Oil and Gas In response to market conditions, customer relationships are shifting PAST FUTURE Supplier Consolidation leading to fewer, Mix of large, medium and small larger suppliers with low cost & Landscape…
Unique Industrial & Specialty Position Segment Applications Drivers of Stability Glass Smartphones, tablets, U.S. Silicas multiple plants provide supply containers, automotive glass and fiberglass redundancy and low transportation…
Driving Success with Speed, Scale & Strength SPEED SCALE STRENGTH New frac sand mine Strong Financially Expanding our & plant in Utica, IL transload network Strong Internally Permitting new Aggressively adding Greenfield site…
Expanding Our Logistics Capabilities Transportation Assets Railroad access on BNSF, Union Pacific, CN, CP and CSX 3,600 railcars, 5,200 by end of 2014 36 in-basin transloads, many of which can be turned on or off to meet demand…
Getting Closer to the Wellhead New San Antonio transload 15K tons of storage capacity Joint venture with BNSF Serves Eagle Ford basin Unit train capable Run rate of over 500K tons on an annual basis 14
Building Capacity to Meet Demand Growth New mine and plant near Utica, IL 1.5MM tons annual capacity of frac sand Scheduled to come online in late second quarter 6MM tons of O&G capacity exiting 2014 15
Strong Balance Sheet to Fund Growth Initiatives Summary Capitalization (US in thousands) 41.0 MM capacity available under asset- 12/31/2013 12/31/2012 based revolving Cash and Cash Equivalents 153,236 61,022 line-of-credit (3)…
Compelling Investment Opportunity Almost doubled revenue over last 3 years Proven Results Almost doubled Adj. EBITDA(1) over last 3 years Strong operating cash flows Economically irreplaceable ingredient Unique Option to Strong…
QUESTIONS
APPENDIX A
Reconciliation (Adjusted EBITDA to Net Income) The following table sets forth a reconciliation of net income, the most directly comparable GAAP financial measure, to Adjusted EBITDA. Three Months Ended December 31, 2013 2012 Net…
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