November 28, 2017 Smart Sand, Inc. Jefferies 2017 Energy Conference
Smart Sand Key Highlights Long-lived, strategically located, high-quality reserve base Intrinsic logistics advantage Significant organic growth potential Focus on safety and environmental stewardship Experienced…
Our Strategy Increasing capacity utilization and processing capacity at Oakdale Focus on increasing our capacity utilization as we expand annual processing capacity to 5.5 million tons by early 2018 Pursuing strategic long-term…
Company Overview Company Overview Reserve Locations Smart Sand is a pure-play, low-cost producer of high-quality Oakdale, WI 1,196 acres Northern White raw frac sand (Monroe County, WI) The Company owns and operates a Northern White…
Oakdale Facility: High Quality Northern White Raw Frac Sand 6
Cost-Effective, Differentiated Process Onsite Mining / Excavation Conveyer Belt to Onsite Wet Plant Wet Plant Cleans and Sorts Dry Plant Dries and Sorts Product Unit Trains Deliver Dry Sand to Basin Low cost operating…
Expansive Logistics Capabilities Key Logistical Advantages Highly Competitive Delivery Capabilities On-site rail eliminates trucking to a rail load-out facility and associated costs Class I access current location on Canadian Pacific…
Significant Organic Growth Potential UP Rail Siding (Byron, WI) Commenced operations in June 2016 Dual-serve rail origination capability at Oakdale Expanding to be a unit-train capable facility Expected to result in incremental sale…
Committed to Highest Corporate Standards Management maintains close dialogue with its customers regarding the oil and gas industrys rigorous regulatory environment Legal & ISO registered Quality System and Environmental Management…
INDUSTRY OVERVIEW
Market Growth Potential 2016 Average 2017 Average 2018 Average 2014 Peak Rig Count 484 (-48% y/y) t 825 (+70% y/y) t 1,120 (+36% y/y) t 1,789 Ave Rigs % HZ Rigs 83% (+344 bps y/y) 82% (-35 bps y/y) 82% ( y/y) 71% Horizontal s s…
Raw Sand Established as Proppant of Choice Comparison of Key Proppant Characteristics Brown Raw Frac Sand Northern White Raw Frac Sand Resin-coated Ceramics Product and Natural resource Natural resource Raw frac sand substrate with…
Growing Demand for Fine Sand Mesh Sizes Market Outlook for Fine Sand Proppant size is characterized by mesh size which is According to Kelrik LLC, a notable driver impacting determined by sieving the proppant through mesh demand for…
FINANCIAL INFORMATION
Summary Quarterly Sales Volumes Quarterly Sales Volumes (thousands of tons) 653 559 531 274 230 193 129 Q1'16A Q2'16A Q3'16A Q4'16A Q1'17A Q2'17A Q3'17A(1) (1) Approximately 80% of sales volume in Q317 were to…
Summary Financials Per Ton Revenue (1) Production costs ( per ton) ( per ton) 71.71 15.40 63.52 54.04 13.47 13.13 2015A 2016A YTD 2017A 2015A 2016A YTD 2017A Adjusted EBITDA (1) ( per ton) 45.81 31.82 12.45…
Summary Significant balance sheet flexibility and liquidity Minimal debt Approximately 52 million in cash available to support growth initiatives Efficient management of railcar fleet 1,250 of 1,798 leased railcars assigned to…
APPENDIX
Income Statement For the Year ended Year ended Year ended Nine m onths ended Dec 31, 2014 Dec 31, 2015 Dec 31, 2016 Sep 30, 2017 ( in millio ns) (Audited) (Audited) (Audited) (Unaudited) Revenues (1) 68.2 47.7 59.2 94.2 Cost of sales…
Balance Sheet As of Decem ber 31, 2014 Decem ber 31, 2015 Decem ber 31, 2016 Sep 30, 2017 ( in millio ns) (Audited) (Audited) (Audited) (Unaudited) Current assets Cash and cash equivalents 0.8 3.9 46.6 51.8 Accounts receivable 8.6 6.0…
Statement of Cash Flows For the Year ended Year ended Year ended Nine m onths ended Decem ber 31, 2014 Decem ber 31, 2015 Decem ber 31, 2016 Sep 30, 2017 ( in millio ns) (Audited) (Audited) (Audited) (Unaudited) Operating activities…
EBITDA Reconciliation Nine m onths ended Year ended Decem ber 31, Septem ber 30, ( in tho usands) 2014 2015 2016 2017 Net income (loss) 7,556 4,990 10,379 10,648 Depreciation, depletion, accretion and amortization 3,642 5,318 6,445…
Production Cost Reconciliation Nine m onths ended Year ended Decem ber 31, Septem ber 30, ( in tho usands) 2014 2015 2016 2017 Cost of goods sold 29,934 21,003 26,569 67,360 Depreciation, depletion, and accretion of asset retirment…
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