Summary of Smart Sand Inc. Presentation at Lithium Partners Fall 2025 Investor Conference Company Overview - Smart Sand Inc. is a leading provider of Northern White sand in North America, primarily serving the oil and gas market and industrial applications [2][3] - The company has a mining and processing capacity of 10 million tons of high-quality Northern White sand with access to all Class 1 rail lines, enabling efficient shipping to various operating basins in the U.S. [2][3] Key Strengths - **Low-Cost Operating Structure**: Smart Sand operates with a bulk commodity mindset, focusing on efficiency in large quantities, resulting in low processing costs and logistics costs [3][4] - **Logistics Advantage**: The company has invested in high-quality mines and terminals, allowing efficient sand shipment across North America [4][5] - **Natural Gas Demand**: 70% of Smart Sand's sales are directed towards natural gas basins, positioning the company to benefit from the projected growth in natural gas demand due to LNG export capacity and power generation for AI data centers [5][16] Financial Performance - The company sold approximately 2.5 million tons in the first half of the year and expects similar sales in the second half [12] - Smart Sand has maintained a prudent capital structure with low debt levels, allowing it to navigate industry cycles effectively [8][9] Market Dynamics - The demand for natural gas is projected to increase significantly, with LNG capacity expected to double from 15 BCF per day to nearly 30 BCF per day by the end of the decade [16][17] - The company is also expanding its industrial applications segment, which has grown over 80% year-over-year, aiming to increase its contribution to sales from 5% to 10% or more [5][36] Product Offering - Smart Sand produces various sand products for fracking, with a focus on fine mesh sand, which constitutes over 70% of its reserves [6][7] - The company has a long-lived reserve base of over 500 million tons, with a reserve life exceeding 30 years [7] Strategic Initiatives - Smart Sand is focused on expanding its market share in key regions, including the Appalachian basins and the Bakken, while also exploring opportunities in Canada [12][13][28] - The company has invested in terminals to enhance its logistics capabilities, which account for roughly two-thirds of its costs [29][34] Management and Shareholder Alignment - The management team, including founder Chuck Young, holds over 36% of the company, aligning their interests with those of shareholders [9][39] - Smart Sand has returned nearly $20 million to shareholders through buybacks and dividends over the past three years [10] Conclusion - Smart Sand Inc. is well-positioned to capitalize on the growing demand for natural gas and industrial applications, supported by its efficient operations, strong logistics capabilities, and prudent financial management [39][40]

Financial Data and Key Metrics Changes - Revenue during the second quarter decreased by 7% compared to 2024, primarily due to the completion of a large contract with an industrial customer last year [10][11] - Adjusted EBITDA was $1,500,000, down from $2,100,000 in the same quarter last year, with an adjusted EBITDA margin of 8.6%, down from 11.3% [11] - Cash generated from operations was $4,500,000, resulting in a record liquidity position of $16,100,000 at quarter end, consisting of $12,200,000 in cash and approximately $4,000,000 available under credit facilities [12] Business Line Data and Key Metrics Changes - Revenue in the marine, aerospace, and power generation sectors increased by a combined 15% year over year, driven by an 83% increase in aerospace revenues [6][11] - Aerospace revenues more than doubled in the first half of the year compared to the same period in 2024 [7] - Power generation market revenues increased by 10% during the quarter [11] Market Data and Key Metrics Changes - The company is seeing increased interest in LNG as a bridge and backup fueling solution to meet rising electric demand from data centers and other energy-intensive infrastructure [7] - The projected long-term growth in electricity demand is creating a broad range of use cases for LNG solutions [8] Company Strategy and Development Direction - The strategic vision is to build Stabilis into the leading provider of last mile LNG solutions, focusing on becoming the partner of choice for key end markets [8] - The company is actively working on securing long-term customer commitments to support capacity expansion [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth opportunities in marine, aerospace, and power generation sectors, with ongoing commercial discussions progressing well [6][8] - The company is focused on finalizing new contract awards and expects to update investors in the coming months [10] Other Important Information - The company ended the quarter with a net cash position and no net debt, providing strong balance sheet flexibility for strategic capital deployment [12] - Capital expenditures during the quarter were $600,000, with expectations for acceleration in capital commitments as new customer agreements are finalized [12] Q&A Session Summary Question: Inquiry about contractual agreements and potential project financing - Management confirmed that they are working on multiple contracts across marine, aerospace, and power generation sectors, with varying durations from six months to multiple years [14][15] - The contracts are expected to support capital expenditures and project financing for new liquefaction capacity [15] Question: Timing of additional liquefaction capacity - Management indicated that the quickest new capacity could be deployed at the George West facility, with ongoing work on the Gulf Coast liquefier [19][20] Question: Key variables for finalizing marine sector contracts - Management clarified that long-term contracts are essential to underpin project financing for new facilities, which will produce LNG needed for those contracts [22][23] Question: Types of customers in marine contracts - Management stated that discussions are ongoing with multiple end markets in the marine space, primarily focusing on the cruise sector [24] Question: Company’s market positioning and outreach - Management expressed eagerness to communicate the company's growth story and emphasized the importance of securing contracts to generate excitement in the marketplace [32][33]