Mine to Wellsite Solutions March 2019 Investor Presentation March 14, 2019 0
What is Smart Sand Overview Reserve Locations Oakdale, WI 1,256 acres (Monroe County, WI) Fully integrated provider of high quality Hixton, WI 959 acres 81% Finer Mesh Reserve Northern White frac sand. (Jackson County, WI) (40/70,…
West Texas Mine Options (Permian Basin) 4,219 acres under lease in Winkler and Crane counties in the Permian Basin Total upfront consideration…
Why is Smart Sand Different Its a one-stop shop Smart Sands Business Offerings Premium Northern White Reserve Gigantic Rail Capacity Terminal & Forward Staging Management Last Mile Logistics Wellsite Storage Solutions Large…
Product and Service Quality Matter Long Term Feedback from our customer base: Delivering high quality proppant to the wellhead in the large volumes needed Reliable long-term production from their wells Costboth long-term and…
Proppant Characteristics Matter West Texas (WTX) Sand is a lower quality proppant vs. Northern White Lower Crush Strength: Crushing of proppant creates fines, these fines will migrate and pack rearrangement occurs Fines decrease…
Proppant Strength Matters (WTX vs. Northern White) A significant DELTA exists between Northern White and Texas Permian Sand. Source: Management elaboration on independent studies. 8
Mining and Production 9
Oakdale Facility: High Quality Northern White Raw Frac Sand in an Efficient Configuration 10
Byron Transload: Provides Optionality on Rail Delivery 11
Cost-Effective, Differentiated Process On-site Mining / Excavation Conveyer Belt to On-site Wet Plant Wet Plant Cleans and Sorts Product Dry Plant Dries and Sorts Product Unit Trains Deliver Dry Sand to Basin Low Cost…
Logistics and Wellsite Solutions 13
Expansive Logistics Capabilities Key Logistical Advantages Highly Competitive Delivery Capabilities Dual Served Class I Rail Access onsite service on Canadian Pacific rail line coupled with nearby terminal on Union Pacific allows Van…
Van Hook Terminal Location: Van Hook, ND Commenced operations in April 2018 Signed long-term take-or-pay contract with an anchor customer at in-basin pricing 15.5 million paid consideration For 2018, we shipped 430,000 tons through…
Wellsite Storage Solutions Features Transported using Quickstand Trailer for unassisted setup in 5 minutes. Tri-axle trailer design with reinforced steel frame and remote control operation. Direct to blender delivery, controls…
System Layouts Flexible layout options as demonstrated below with our QS4400XR silo Single Blender Layout Dual Blender Layout 1,050 Ton 1,320 Ton Layout Layout 17
Our Wellsite Storage vs. the Competition Competitive Options Smart Sands Wellsite Storage Equipment Smart Sand: Silos: Multiple Size Options With Custom Belts Required, No Direct To Configurations Blender Offload Engineered…
Industry Overview 19
Industry Trends Continue to Support Increasing Use of Frac Sand per Well Horizontal well lateral lengths Proppant per lateral foot continues continue to get longer to increase Source: Spears and Associates 4Q 2018 Proppant…
Increasing Use of Sand per Well leading to Continued Expected Growth in Frac Sand Demand Source: Spears and Associates 4Q 2018 Proppant Market Report. 21
Our Strongest Markets, the Bakken and Eastern Basins, are Expected to have Growing Frac Sand Demand Eastern U.S. Demand projected to Bakken Demand projected to grow grow 13% per year in 2019 and by 8% per year in 2019 and 2020…
Finer Sand is the Standard Mesh Sizes Market Outlook for Fine Sand Proppant size is characterized by mesh size According to Kelrik LLC, a notable driver which is determined by sieving the proppant impacting demand for fine mesh sand…
Why Smart Sand A Full Service and Cost Effective One Stop Solution Large reserve base of high quality finer mesh Northern White Frac Large, efficient sand at Oakdale available to support market demand reserve base, Substantial…
Appendix 27
APPENDIX Committed to Highest Corporate Standards Management maintains close dialogue with customers regarding the oil and gas industrys rigorous regulatory environment Legal & ISO registered Quality System and Environmental…
APPENDIX Income Statement For the Year ended Year ended Year ended Year ended Dec 31, 2015 Dec 31, 2016 Dec 31, 2017 Dec 31, 2018 ( in millio ns) (audited) (audited) (audited) (audited) Revenues (1) 47.7 59.2 137.2 212.5 Cost of…
APPENDIX Balance Sheet Dec 31, 2015 Dec 31, 2016 As of Dec 31, 2017 Dec 31, 2018 ( in millio ns) (audited) (audited) (audited) (audited) Current assets Cash and cash equivalents 3.9 47.5 35.2 1.5 Accounts receivable 6.0 5.7 24.6…
APPENDIX Statement of Cash Flows Year ended Year ended Year ended Year ended Dec 31, 2015 Dec 31, 2016 Dec 31, 2017 Dec 31, 2018 ( in millio ns) (audited) (audited) (audited) (audited) Operating activities Net income (loss) 5.0 10.4…
APPENDIX EBITDA Reconciliation Year ended Decem ber 31, ( in tho usands) 2015 2016 2017 2018 Net income (loss) 4,990 10,379 21,526 18,688 Depreciation, depletion, accretion and amortization 5,318 6,445 7,300 18,165 Income tax (benefit)…
APPENDIX EBITDA Reconciliation Quarter ended ( in tho usands) 12/31/2017 3/31/2018 6/30/2018 9/30/2018 12/31/2018 Net income (loss) 10,886 975 10,021 12,125 (4,433) Depreciation, depletion, accretion and amortization 2,184 3,160 4,296…
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