Smart Sand (SND) Lytham Partners 2026 Industrials & Basic Materials Summit summary

Business model and operations

• Mines, produces, and transports Northern White sand primarily for oil and gas well fracking, with 90% of sales to oil and gas producers in the U.S. and Canada.

• Operates three mines in Wisconsin and Illinois, shipping sand by rail to key shale basins including Marcellus, Utica, Bakken, Montney, and Duvernay.

• Focuses on logistics efficiency, leveraging unit trains and terminal investments to deliver large sand volumes cost-effectively.

• Provides wellsite solutions like SmartSystem for efficient sand delivery and storage at fracking sites.

Market trends and demand drivers

• Structural demand for sand is rising due to longer well laterals and increased fracking intensity, requiring more sand per well.

• 60%-70% of volumes serve natural gas-driven basins, with Marcellus and Canadian LNG export markets as key growth areas.

• Anticipates continued strong demand from LNG export growth and power needs for AI data centers, supporting natural gas activity.

Competitive positioning and strategic initiatives

• Maintains a pure Northern White sand focus, serving markets with limited regional sand alternatives and strong growth prospects.

• Holds over 450 million tons of reserves, with 70% fine mesh sand, and operates at 55% utilization, allowing for scalable growth without major capital outlays.

• Continues to invest in logistics infrastructure and terminals to enhance market penetration and efficiency.