Cowen & Company 3rdd Annual Ultimate Energy Conference C f December 3, 2013
U.S. Silica is Attractively Positioned Company Profile Operations Footprint Low cost,, high gU.S. U Sq quality y silica Silica supplier Overviewpp Mauricetown 15 facilities and over 100 years of history Mapleton Hard to…
Two Strong, Complimentary Business Segments Business Oil & Gas Industrial & Specialty Products Segments Whole grain silica Northern White raw sand proppants Ground silica 20/40 30/50 20/40, 30/50, 40/70 andd 100 meshh th…
SLCA: A Unique Value Proposition Earlyy Innings g of Rapid Demand Growth Shale Revolution A Balanced Mix of Stable and Better Insulated From Growing Markets Market Forces and Entrants Sustainable Competitive Grow Faster…
Driving Success with Scale, Innovation & Creativity Segment Strategic Goal Key Actions & Triggers Role of M&A Oil & Gas Increase Market Sparta expansion complete Accelerate Share New actionable sites being explored growth through…
Growing Demand for Proppant Horizontal Wells Lateral Stages g per p Proppant pp Proppant pp Rig Count per Rig Length Lateral per Stage Demand Growth Drivers Proppant growth has outpaced rig count growth due to higher service…
Building Capacity to Meet Demand Growth New mine and plant near Utica, IL Project j 35% complete p 1.5MM tons annual capacity of frac sand Scheduled to come online in Spring p g 2014 6MM tons of O&G capacity exiting 2014…
Expanding Our Logistics Capabilities Transportation Assets Railroad access on BNSF, Union Pacific, CN, CP and CSX 3,600 railcars, 4,300 by end of 2014 New N agreementt with ith Wild Wildcatt 40 in-basin transloads, many of…
Getting Closer to the Wellhead New San Antonio transload 15K ttons off storage t capacity it Joint venture with BNSF Serves Eagle Ford basin Unit train capable p Run rate of over 500K tons on an annual basis 10
Emerging Trends in Oil and Gas In response to market conditions, customer relationships are shifting PAST FUTURE Supplier Consolidation leading to fewer, Mix of large, medium and small larger suppliers with low cost & Landscape…
Key to Success: Low Cost Producer U.S. Silica Frac Plants vs. 2012 Industry Cost Curve New Project Examples Cost per Ton (1) Royalties, road fees, no High access to Cost natural gas, etc. 2012 Trucking to Demand Class I rail…
A Balanced Mix of Stable and Growing Markets Revenue by Segment 350 Revenues Protected By 300 ons) Superior product offering Revenue (millio 250 Diversified ISP business 200 Oil & Gas Long-standing, sticky customer…
Unique Industrial & Specialty Position Segment Applications Drivers of Stability Glass Smartphones, tablets Smartphones tablets, U.S. U S Sili Silicas multiple lti l plants l t provide id supplyl containers, automotive glass…
Transforming the ISP Segment Invest in Talent Enhance R&D Implement New Technology New capabilities Product Development capability Specialty deposits Market Development team State-of-the-art lab Enhanced processing Technical Sales…
Capital Allocation Strategy Our Three Priorities 1) Reinvest in the Business Process improvements New Greenfield mine and production facilities 2) Enhance Shareholder Value Mergers & acquisitions New product developments 3)…
Strong Balance Sheet to Fund Growth Initiatives Summary Capitalization (US in thousands) 50MM total available borrowing base under 9/30/2013 12/31/2012 asset-based revolving Cash and Cash Equivalents 128,687 61,022 line-of-credit…
Compelling Investment Opportunity 2x Revenue over last 3 years Proven Results Adj EBITDA(1) over last 3 years 3x Adj. Strong operating cash flows Economically y irreplaceable p ingredient g Unique Option to Strong long-term…
Questions
Appendix A
Reconciliation (Adjusted EBITDA to Net Income) The following table sets forth a reconciliation of net income, the most directly comparable GAAP financial measure, to Adjusted EBITDA. Three Months Ended September 30, 2013 2012 Net…
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