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

Company highlights and operating model

• Operates three Northern White Sand facilities with 10 million tons of capacity, selling over 5 million tons annually.

• All facilities are located on Class I railroads, enabling efficient, low-cost logistics and unit train shipments.

• Maintains a large reserve base of over 500 million tons, with sand quality matching current market demand for fine mesh.

• High insider ownership aligns management with shareholders, with a focus on growth and value return.

• Growth achieved without significant new capital investment, supported by share buybacks and dividends.

Market trends and demand drivers

• Frac sand demand is rising due to longer well laterals and increased sand intensity per well, despite flat or declining rig counts.

• Northern White Sand remains in demand for its quality, especially as producers move to more challenging acreage.

• Main markets include Marcellus, Utica, Bakken, and Canada, with growth potential in each.

• Expansion into Canada and new terminal investments have opened additional markets.

• Industrial sand business is being developed to diversify revenue and reduce volatility.

Operations, logistics, and efficiency

• Integrated mining, processing, and loading at each site reduces costs and increases efficiency.

• Unit train logistics allow for rapid, cost-effective delivery and higher railcar utilization.

• Facilities are strategically located on different railroads to access diverse markets.

• Low royalty rates and efficient operations provide a cost advantage over competitors.

• Terminal acquisitions in key basins have increased market share and growth opportunities.