Mine to Wellsite Solutions August 2019 Investor Presentation August 7, 2019 0
Smart Sand, Inc. (NASDAQ: SND) 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,…
Vertical Integration A Key Differentiator Smart Sands Business Offerings Premium Northern White Reserve Gigantic Rail Capacity Terminal & Forward Staging Management Last Mile Logistics Wellsite Storage Solutions Large Finer…
Mining and Production 5
Oakdale Facility: High Quality Northern White Raw Frac Sand in an Efficient Configuration 6
Byron Transload: Provides Optionality on Rail Delivery 7
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 Basins Low Cost…
Logistics and Wellsite Solutions 9
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 rail line…
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 We have shipped 850,000 tons through Van…
SmartSystemsTM 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…
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 13
Our SmartSystemsTM Storage vs. the Competition Competitive Options SmartSystemsTM Storage Equipment Smart Sand: Silos: Multiple Size Options With Custom Belts Required, No Direct To Configurations Blender Offload Engineered…
Industry Overview 15
Industry Trends Continue to Support Increasing Use of Frac Sand per Well Proppant per lateral foot continues to increase Proppant Pounds per Lateral Foot (US) 1,800 1,600 1,400 1,200 1,000 800 600 400 200…
Industry Trends Continue to Support Increasing Use of Frac Sand per Well Horizontal well lateral lengths continue to get longer Quarterly Horizontal Wells by Lateral…
Increasing Use of Sand per Well leading to Continued Expected Growth in Frac Sand Demand (Millions of Tons) 140 120 100 80 60 40 20 0 2014 2015 2016 2017 2018 2019 2020 M Tons 67 52 41 75 99 106 128…
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 15% per year in 2019 and by 16% 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…
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. 23
Why Smart Sand A Full Service and Cost Effective One Stop Solution Large, efficient Large reserve base of high quality finer mesh Northern White Frac reserve base, sand at Oakdale available to support market demand production…
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 EBITDA Reconciliation Year ended December 31, ( in thousands) 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 thousands) 6/30/2018 9/30/2018 12/31/2018 3/31/2019 6/30/2019 Net income (loss) 10,021 12,125 (4,433) 4,033 14,276 Depreciation, depletion, accretion and amortization 4,296 4,929 5,780…
APPENDIX Contribution Margin Reconciliation Quarter ended ( in thousands) 6/30/2018 9/30/2018 12/31/2018 3/31/2019 6/30/2019 Revenue 54,448 63,146 52,248 51,775 67,941 Cost of goods sold 34,678 40,595 34,217 40,605 43,068 Gross…
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