U.S. Silica Simmons Thirteenth Annual Energy Conference February 28th- March 1st, 2013 Las Vegas, Nevada
U.S. Silica is Attractively Positioned Company Profile Commercial Silica Market Share l Leading industrial minerals supplier Other l Over 250 products and 1,800 customers Oil & Gas Proppants: Frac sand Industrial & Specialty:…
SLCA: A Diversified Option to Play NA Shale Growth Rapid Demand Early Innings of Proppant demand growing faster Growth Shale Revolution than rig count Low Cost Difficult to Find, Permit Long lead times to add capacity have…
Oil & Gas: 2012 Performance FINANCIAL PERFORMANCE KEY ACCOMPLISHMENTS 2012 2011 Growth l Developed Greenfield mine Sales 243.8 107.1 128% and processing plant in Sparta, WI Contribution 140.1 67.6 107% l Expanded strategic…
Unique Industrial & Specialty Market Position U.S. Silica Drivers of Stability End Market Applications market position l U.S. Silicas multiple plants provide supply Smartphones, tablets, redundancy and low transportation costs…
Industrial & Specialty Products: 2012 Performance FINANCIAL PERFORMANCE KEY ACCOMPLISHMENTS 2012 2011 Growth l Revamped the ISP management team Sales 198.2 188.5 5% l Created NPD pipeline with over 30 Contribution 53.6 53.0 1%…
Transforming the ISP Segment Invest in Talent Enhance R&D Implement New Technology l New VP/GM l New Technical Director l Specialty deposits l Market Development team l Product Development capability l Enhanced processing l Technical…
Frac Sand Demand Outstrips Drilling Activity Horizontal Wells Lateral Stages per Proppant Proppant Demand Rig Count per Rig Length Lateral per Stage Growth Drivers l Proppant growth has recently outpaced rig count growth due…
New Projects Face High Hurdles l Sphericity, solubility, size, crush strength Barriers to Entry (14 API specifications) Large-Scale High Quality Reserves l Ability l Long approval to spec-in High Permission process (1 3…
Difficulty in Permitting New Reserves 11
Structural Cost Advantage Within Industry U.S. Silica Frac Plants vs. 2012 Industry Cost Curve New Project Examples Cost per Ton (1) Royalties, road fees, no access to High Cost 2012 Demand natural gas, etc. Trucking to…
Our Customer Relationships U.S. Silica Benefits How We Work With Customers Customer Benefits l Competitive advantage over new l Provide large scale, multi-plant access l Flexibility to cost efficiently move entrants on nearly every…
Differentiated Footprint and Logistics Capability Transportation Assets l Railroad access on BNSF, Union Pacific, CN, CP and CSX l Barge access l 16 in-basin transloads, many of which can be turned on or off to meet demand l…
A Multi-Plant Network is Required for National Coverage Class I Rail Serving U.S. Silica Plants East Bakken Most WI West Bakken startups are on the CN network Eagle Ford or Class II rail Basins Served Directly…
U.S. Silicas Highly Efficient Logistic Solutions Plant Unit Train Transload Well Head What is a unit train What is a transload l Consists of 70-100 cars (8k -11k tons) that are shipped l Rail terminal located in the basin direct…
Line-of-Sight Oil & Gas Organic Growth Elements Initiatives Description l Best-in-class team 1Q13: Rochelle l Phase I Capacity: 200k tons l Close access to high Resin-Coated l Phase I Capital: 42-44MM quality coarse Proppant (RCS)…
Strong Balance Sheet to Fund Growth Initiatives Summary Capitalization l 32.1MM capacity under (US in thousands) asset-based revolving 12/31/2012 12/31/2011 line-of-credit Cash and Cash Equivalents 61,022 59,199 l Total liquidity of…
Compelling Investment Opportunity Unique Option To Play NA Shale Growth Economically irreplaceable ingredient Strong long term demand projections Basin and service company independent Market Leader For More Than A Century 1 or 2 in…
Appendix A 21
Reconciliation (Adjusted EBITDA to Net Income) Reconciliation of Adjusted EBITDA US in thousands 12/31/12 12/31/11 Net Income 79,154 30,253 Total Interest Expense, Net of Interest Income 13,615 18,347 Provisions of Taxes 30,651…
Reconciliation (Adjusted EBITDA to Net Income) (1) Includes non-cash deductions, losses and charges arising from adjustments to estimates of a future litigation liability and the decision by our hourly workforce at our Rockwood…
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