Smart Sand(US:SND)2023-08-10 18:09Market Overview - North America proppant demand is projected to increase by approximately 5% [1] - Northern White Sand supply can meet frac sand demand in basins where in-basin supply is insufficient [3] - The ability of in-basin facilities in the key Permian Basin market has now dropped below forecasted demand [80] Smart Sand's Position - Smart Sand now has the second-largest annual capacity of Northern White Sand providers in North America [4] - Smart Sand's Oakdale, WI facility has 247 million tons of reserves and 5.5 million tons of annual processing capacity [30] - Smart Sand's Utica, IL facility has 128 million tons of reserves and 1.6 million tons of annual processing capacity [30] - Smart Sand's Blair, WI facility has 115 million tons of reserves and 2.9 million tons of annual processing capacity [30] - Smart Sand has approximately 10 million tons of total plant annual capacity across three facilities [51] Financial Performance - Smart Sand's Q2 2023 revenue was $74.8 million [33] - Smart Sand's Q2 2023 contribution margin per ton was $17.57 [33] - Smart Sand's Q2 2023 adjusted EBITDA was $11.4 million [33] Northern White Sand Value Proposition - Rystad Energy study indicates that in 85% of cases analyzed, short-term cash benefits of using in-basin sand were negated within the first year or two [6] - Six of seven operators analyzed have seen a negative economic impact using in-basin Sand compared to wells completed with Northern White Sand [6]