Smart Sand (SND) Lytham Partners Fall 2026 Investor Conference summary

Business overview and market positioning

• Operates as a leading Northern White sand provider with over 450 million tons of reserves and 10 million tons of annual capacity across three locations, all connected to Class I rail lines.

• Focuses on efficient logistics, shipping all sand by rail and investing in terminals to serve key oil and gas basins cost-effectively.

• Maintains a low-cost operating model, enabling competitiveness throughout oil and gas industry cycles and positioning for growth as natural gas demand rises in the U.S. and Canada.

• 90%-95% of sales are to oil and gas producers, with a growing industrial sand segment expected to expand further.

• Management and insiders own 36% of the business, aligning interests with shareholders and supporting long-term value creation.

Growth drivers and industry trends

• Natural gas demand is projected to increase significantly over the next five years, driven by LNG export growth and rising power needs from data centers, potentially adding 20 Bcf/d or more of incremental demand.

• U.S. gas production may need to rise from 110 Bcf/d to as much as 130 Bcf/d, requiring more wells and thus more frac sand.

• Longer horizontal drilling laterals and increased sand intensity per foot are boosting sand demand per well, especially in the Marcellus, Utica, Bakken, and Canadian shales.

• 70% of current sand volumes serve natural gas markets, positioning the company to benefit from these trends.

Operational efficiency and logistics

• Mines are fully integrated, with mining, processing, and rail loading at single sites, maximizing efficiency and minimizing costs.

• All mines are on Class I railroads, enabling direct, large-volume shipments to terminals and customers across North America.

• Logistics account for about two-thirds of total costs; investments in five terminals enhance market access and cost control.

• Unit train shipments and proprietary well site storage services further improve delivery efficiency and customer value.