Scotia Howard Weil 2017 Energy Conference New Orleans March 27, 2017
Agenda Business Built for Success Delivered on Commitments Uniquely Positioned for the Oil & Gas Rebound More Than Just Oil & Gas Where We are Headed 3
KEY MESSAGES Extending Our Industry-Leading Position Proven Winning through the cycle Performance + Cost Logistical capabilities, Advantages efficient mines + Best Balance Advantage Strength and flexibility Sheet U.S.…
U.S. SILICA TODAY Profile of an Industry Leader 2016 Revenue Key Metrics Revenues 559.6M O&G market share 20% ISP Oil & Gas ISP end markets 1 or 2 35% 65% Acquisitions in 2016 2 Logistics network 1 5
Two Strong, Complementary Business Segments Oil & Gas Proppants (O&G) Industrial & Specialty (ISP) Revenue 362.6M Revenue 197.1M Contribution margin (1) 11.4M Contribution margin (1) 79.0M Contribution margin % 3%…
We Continue to Transform Our Oil & Gas Business From: A commodity sand producer Narrow product range Limited value capture 7
To an Innovative End-to-End Frac Sand Company By Expanding O&G Value Capture Low cost Best-in-class Regional Last Further assets distribution sand mile accretive M&A 8
Agenda Business Built for Success Delivered on Commitments Uniquely Positioned for the Oil & Gas Rebound More Than Just Oil & Gas Where We are Headed 9
Delivered on Commitments Key Actions 1 Executed successful strategy 2 Reduced cost / improved efficiencies 3 Maintained best in class financial position 4 Extended our lead with strategic acquisitions 5 Grew the industrial…
Took Actions in 2016 to Extend Our Industry-Leading Position Became a leaner, stronger, more flexible company 1 Talented team with proven track record Eliminated 60 million in costs in 2016 2 Made significant investments in the…
Agenda Business Built for Success Delivered on Commitments Uniquely Positioned for the Oil & Gas Rebound More Than Just Oil & Gas Where We are Headed 12
Changing Industry Dynamics Changing Dynamics Regional sands gaining share Volumes scaling rapidly Unit Train capability critical Play to Our High velocity network to better Strengths serve customers Last mile logistics expected…
SLCA Well Positioned in Regional Markets 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.…
And Logistical Advantages That Drive Market Share Gains Transload network with 19 unit-train capable sites or 40% of capability Best Transloads within 50 miles of current working rigs 85% Greater optionality for best origin /…
Sandbox is a Game Changer Industry-leading containerized last-mile delivery solution Investing 35 million this year to keep pace with surging demand and continue to grow share Sandbox crews active in all of the major basins…
Rapidly Scaling Sandbox in Response to Growing Demand At Closing Today Goal Crews 80-90 Deployed 20 42 By YE 2017 Market Share 10% 15% 50% 18
Agenda Business Built for Success Delivered on Commitments Uniquely Positioned for the Oil & Gas Rebound More Than Just Oil & Gas Where We are Headed 19
A Diverse Mix of End Markets Smartphones Automotive glass Glass Tablets Fiberglass Containers Grouts and Mortars Roofing Shingles Building Specialty Cements Products Quartz Surfaces Foundry Molds and Cores for Metal…
Providing a Strong Platform for Growth Profitability 1 2 3 New New ISP Products Markets Adjacencies Building on the Core 21
Agenda Business Built for Success Delivered on Commitments Uniquely Positioned for the Oil & Gas Rebound More Than Just Oil & Gas Where We are Headed 22
Executing Consistent Strategy to Grow Both Segments Key Initiatives Oil & Gas Industrial & Specialty 1. Increase capacity to meet 1. Expand ISP product offerings surging demand 2. Maintain 1 or 2 share 2. Expand addressable…
OIL & GAS Increase Capacity to Meet Surging Demand 3 Key Components Brownfields Greenfields M&A Expand 7 existing Focus on sites Continue to facilities near the Permian pursue attractive opportunities Lowest Handful of…
INDUSTRIAL AND SPECIALTY PRODUCTS Robust ISP Opportunity Pipeline Innovative products Sand Specialty services Mining Expanded geographic reach New value chains Operations New Value Creation Current value chain extensions…
KEY MESSAGES Extending Our Industry-Leading Position Proven Winning through the cycle Performance + Cost Logistical capabilities, Advantages efficient mines + Best Balance Advantage Strength and flexibility Sheet U.S.…
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