BARCLAYS CEO ENERGY-POWER CONFERENCE New York, NY Sept. 4, 2019 A GLOBAL INDUSTRIAL MINERALS AND LOGISTICS LEADER
COMPANY OVERVIEW A Diversified Industrial Minerals and Logistics Company Diversifying 1 or 2 Industrial & Specialty Products Profits2 Very stable business expanded 2014 Market position in through M&A in 2018; high barriers to entry…
COMPANY OVERVIEW A Sustainable Business Model with Significant Leverage to the Upside Contribution Margin ( thousands) 600,000 500,000 400,000 300,000 200,000 100,000 - 2012 2013 2014 2015 2016 2017…
COMPANY OVERVIEW Focused on Growing and Further Diversifying the Business Targeted Business Profit Mix By Source1 Bolt-On M&A Growth Goals Stability Double ISP ISP Segment Digit Annual +++ ISP Segment Double SBX…
SEGMENT REVIEW ISP Segment Services a Diverse Mix of End Markets and Long Term Customers % of 2019E ISP Revenue Chemicals 11% Absorbents 9% Silica-based Chemicals Accidents & Spills Clays 8% Ceramics Pet Litter Sodium Silicates…
SEGMENT REVIEW EP Minerals Extends Reach Globally and Significantly Expands Market Opportunity EP Minerals Profile Global leader in diatomaceous earth (DE), bentonite and perlite filter aids, absorbents and functional additives…
SEGMENT REVIEW Deep Vertical Integration is a Key Differentiator in Oil & Gas for Northern White Sands SLCA Peer A Peer B Peer C Peer D Active Frac Sand Sources (10 mines) 35% Mine Sand Supply Chain Railcar % of Total…
SEGMENT REVIEW Diverse, Flexible and Low-Cost Rail and Transload Network 26 operating facilities 50 transload terminals U.S. Silica Locations 85% of rigs within ISP Plants 50 miles of Oil & Gas our transloads…
SEGMENT REVIEW Positioned in a Rapidly Evolving Oil & Gas Sand Market Key Trends Underway Onshore Rigs by Basin1 Anadarko, 11% 1 Secular growth in proppant per well drives well efficiency Appalachia, 9% 2 Bakken, 7%…
SEGMENT REVIEW In-Basin Presence Creates a Significant Competitive Advantage Permian Well Locations vs. Mines Strategically Adding Capacity in the Permian Half of total frac sand demand is expected to come from the Permian basin,…
SEGMENT REVIEW SandBox Embeds U.S. Silica in the Value Chain Truck Delivery Time The First Mover in Containerized Solutions per Load (hrs) Sandbox is a market-leading 7.0 alternative to pneumatics 76% Unload reduction Utilizes…
BUSINESS STRATEGY & OUTLOOK Multiple EBITDA Growth Drivers 1. Pipeline of new, higher margin ISP products 2. Regular price increases for Industrials 3. Sandbox market share expansion 4. New horizontals & verticals for Sandbox…
BUSINESS STRATEGY & OUTLOOK Robust Pipeline of Higher Margin ISP Products Current value Expanded New customers chain geographic extensions reach Over 200 MILLION1 Innovative Specialty products in new products services under…
BUSINESS STRATEGY & OUTLOOK O&G Sand Transitioned from a Cash Consumer to a Cash Generator Oil & Gas Sand Sandbox Logistics Generate Cash Gain Share & Grow Maximize flexibility by limiting long- Selectively target high-growth E&Ps…
BUSINESS STRATEGY & OUTLOOK Balanced Capital Plan & Priorities Base Business Invest in Generate Free Requirements Profitable Growth Cash Flow Attractive Minimal Flexibility ROIC Capital + + Reduce debt and Significantly…
Updated 3Q19 Business Outlook Energy markets have softened very quickly, especially in West Texas Combination of budget exhaustion and oversupply of in-basin sand Leading to additional pricing pressure and margin…
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