Don Weinheimer Senior Vice President & President, Oil & Gas Bryan Shinn President & CEO 2
Agenda A Resilient and Growing Market Advantages of Regional Sands Well-Positioned to Meet Demand 3
Regional Sand Market Share Doubled Since 2014 Sand Demand 2X 16% 23% 34% 84% 77% 66% 2014 2015 2016E Northern White Regional Lower delivered cost to the wellhead 4
Regional Sand Demand Forecast 68% Growth in 2017 16.5 (75% utilization) 14.317.0 (75% (65% utilization) utilization) 9.7 10.1 2015 2016F 2017F Active capacity Demand Source: Energent, Public Earnings, SLCA…
Texas Rig Counts have Proven the Most Resilient Through the Cycle U.S. Horizontal Rig Count 1,275 373 100% 80% Other Other 50% 61% 60% Eagle Ford 9% 40% Eagle Ford 15% 50% 38% Permian in TX 20% 41% Permian in TX…
SLCA Well Positioned to Serve 65% of US Horizontal Drilling Mill Creek rigs are in the following markets: Mid-Con Haynesville Permian Tyler Eagle Ford Voca Kosse Rig SLCA plant Other regional sand mine1 1. Includes…
Agenda A Resilient and Growing Market Advantages of Regional Sands Well-Positioned to Meet Demand 8
Strong Value Proposition for Regional vs. White Frac Sand Value Chain Typical Low Cost White Sand Costs Total: Northern Rail / barge Truck to Sand Transload White transport well site 30/ton 50/ton 10/ton 25/ton 115/ton…
Significant Barriers to Entry Small and inconsistent deposits Poor reserve quality Lack of rail access Too far to truck Limited access to water Good sand and good shale rarely proximate 10
Regional Sands are Here to Stay Advantages Leading Operators Pumping Lower cost at the well Southwestern Energy Logistics flexibility Pioneer Natural Proven results Resources Finer grades EOG Resources Resilient through…
Agenda A Resilient and Growing Market Advantages of Regional Sands Well-Positioned to Meet Demand 12
SLCA Well-Positioned to Meet Demand as a Result of Regional Acquisitions Proppant Demand SLCA O&G Capacity by Mesh Size by Mesh Size 20/40 20/40 9% 20/40 13% 26% 30/50 18% 30/50 22% 30/50 23% 40/70 40% 40/70 31% 40/70…
SLCA Regional Capacity 90% Fine Proppant Demand SLCA Regional Capacity by Mesh Size by Mesh Size 20/40 9% 20/40 26% 30/50 Other 18% 11% 30/50 23% 40/70 40% 40/70 and 40/70 100 mesh 40% 89% 100 mesh 33% 100 mesh…
IN SUMMARY Regional Sands A Growing and Attractive Market Growth Most resilient through the cycle Segment Proven results Proximity to shale basin activity Significant Lower delivered cost to the wellhead Advantages Trend…
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