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]

Core Viewpoint - Smart Sand, Inc. is set to release its second quarter 2025 financial results on August 12, 2025, after market close, inviting investors to access related documents on its website [1]. Company Overview - Smart Sand is a fully integrated frac and industrial sand supply and services company, providing complete solutions from mine to wellsite for frac sand customers and a wide range of products for industrial sand customers [2]. - The company produces low-cost, high-quality Northern White sand, which is utilized as a proppant to enhance hydrocarbon recovery rates in hydraulic fracturing of oil and natural gas wells [2]. - Smart Sand's products are also used in various industrial applications, including glass, foundry, building products, filtration, geothermal, renewables, ceramics, turf & landscaping, retail, and recreation [2]. - The company offers logistics solutions through in-basin transloading terminals and SmartSystems™ for wellsite storage and sand management [2]. - Smart Sand owns and operates premium sand mines and processing facilities in Wisconsin and Illinois, with access to four Class I rail lines for product delivery across the United States and Canada [2].

Core Viewpoint - Smart Sand, Inc. has declared a special cash dividend of $0.10 per share, reflecting the company's strategy to return value to its stockholders [1][2]. Company Overview - Smart Sand is a fully integrated frac and industrial sand supply and services company, providing complete solutions from mine to wellsite for frac sand customers and a wide range of products for industrial sand customers [2]. - The company produces low-cost, high-quality Northern White sand, which is utilized as a proppant to enhance hydrocarbon recovery rates in hydraulic fracturing [2]. - Smart Sand's products are also used in various industrial applications, including glass, foundry, building products, filtration, geothermal, renewables, ceramics, turf & landscaping, and recreation [2]. - The company operates premium sand mines and processing facilities in Wisconsin and Illinois, with access to four Class I rail lines, enabling product delivery across the United States and Canada [2]. Financial Strategy - The CEO of Smart Sand emphasized the commitment to managing costs and maximizing efficiency to create further opportunities for returning value to stockholders [2].

Core Insights - Smart Sand, Inc. reported a net loss of $24.2 million for Q1 2025, primarily due to non-cash deferred income tax expenses, following a profitable Q4 2024 [8][12][31] - The company generated $5.2 million in free cash flow and repurchased 135,196 shares during the quarter, indicating a commitment to returning value to shareholders [2][13][14] - Sales volumes decreased by 27% sequentially and 20% year-over-year, totaling approximately 1.1 million tons sold, attributed to a strong demand in the previous quarter [3][10][29] Financial Performance - Revenues for Q1 2025 were $65.6 million, down from $91.4 million in Q4 2024 and $83.1 million in Q1 2024, driven by lower sales volumes and moderated average selling prices [4][10][29] - Cost of goods sold decreased to $62.8 million, reflecting lower sales volumes and reduced logistics costs [5][10] - Gross profit was $2.8 million, a decline from $13.5 million in Q4 2024 and $11.8 million in Q1 2024, due to lower sales volumes and average selling prices [6][10][29] Operational Highlights - Operating expenses remained stable at $9.8 million compared to Q4 2024, down from $11.0 million in Q1 2024, primarily due to reduced wages and royalties [7][10] - Contribution margin for Q1 2025 was $9.6 million, or $8.96 per ton sold, down from $20.2 million and $13.80 per ton in the previous quarter [9][11][29] - Adjusted EBITDA was $1.4 million, significantly lower than $11.9 million in Q4 2024 and $9.3 million in Q1 2024 [9][30][31] Market Outlook - The company anticipates a significant increase in sales volumes for Q2 2025, projecting a rise of 10% to 20% compared to Q1 2025, driven by activity in the Marcellus and Utica basins [2][3] - Industrial sales reached a record high, with a 9% sequential increase, expected to account for about 5% of total sales volumes this year [2][3] - Capital expenditures are projected to increase over the next two quarters, aimed at maintenance and growth investments, while still maintaining positive free cash flow for the year [2][13] Liquidity and Capital Management - As of March 31, 2025, the company had $5.1 million in cash and $30.0 million in undrawn availability under its credit facility [15][10] - The share repurchase program allows for up to $10.0 million in ordinary shares to be repurchased, with $9.7 million remaining as of the end of Q1 2025 [14][10]

Core Viewpoint - Smart Sand, Inc. is set to release its first quarter 2025 financial results on May 13, 2025, after market close, inviting investors to access related documents on its website [1] Company Overview - Smart Sand is a fully integrated frac and industrial sand supply and services company, providing complete solutions from mine to wellsite for frac sand customers and a wide range of products for industrial sand customers [2] - The company produces low-cost, high-quality Northern White sand, which is utilized as a proppant to enhance hydrocarbon recovery rates in hydraulic fracturing of oil and natural gas wells [2] - Smart Sand's products are also used in various industrial applications, including glass, foundry, building products, filtration, geothermal, renewables, ceramics, turf & landscaping, retail, and recreation [2] - The company offers logistics solutions through in-basin transloading terminals and SmartSystems™ for wellsite storage and sand management [2] - Smart Sand owns and operates premium sand mines and processing facilities in Wisconsin and Illinois, with access to four Class I rail lines for product delivery across the United States and Canada [2]