Smart Sand (SND) Sidoti Small-Cap Virtual Conference summary

Business overview and strategy

• Operates three mines with nearly 400 million tons of Northern White Sand reserves and 10 million tons annual processing capacity.

• Focuses on low-cost production, efficient logistics, and direct rail access to all major U.S. and Canadian basins.

• Maintains low leverage and strong insider ownership, with 33% held by insiders and a focus on shareholder returns via buybacks and dividends.

• Achieved record volumes in Q4 2023 and initiated first dividend in 2024.

• Strategic growth through cost-effective acquisitions of idle facilities and expansion of terminal network.

Market trends and demand drivers

• U.S. natural gas demand expected to rise from 100 to 120-130 BCF/day over five years, driven by LNG export growth and AI data center power needs.

• 60-70% of sand volumes serve natural gas basins, with Marcellus as the largest market.

• Increasing lateral lengths and frac intensity per well are boosting sand demand per well.

• Frac sand demand per spread has grown significantly over the past decade and is expected to continue rising.

• Company is well positioned to capture growth without significant new capital investment.

Operations and logistics

• Mines are connected to multiple Class I railroads, enabling efficient, large-scale shipments to all major basins.

• Owns and operates four terminals, with recent acquisitions in Ohio expanding access to Utica and Marcellus.

• Focus on unit train logistics and terminal proximity has driven market share gains in Bakken and Marcellus.

• Plans to invest in additional terminals, especially in Marcellus and Canada, to support future growth.

• Well-site storage and industrial sand are small but targeted for future expansion.