Smart Sand, Inc. · NASDAQ:SND
Smart Sand — Credit Suisse 2018 Energy Summit
22 slides from Smart Sand's conference presentation, Feb 14, 2018
Slide 1: Smart Sand, Inc. - Credit Suisse 2018 Energy Summit
February 14, 2018 Smart Sand, Inc. Credit Suisse 2018 Energy Summit
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the federal securities laws. Statements that are predictive in nature, that depend upon or refer to future events or conditions or that include the words “believe,” “expect,” “anticipate
Slide 3: Disclaimer (cont'd)
Disclaimer (cont’d) Reserves Mineral resources and reserves are typically classified by confidence (reliability) levels based on the level of exploration, consistency and assurance of geologic knowledge of the deposit. This classification system considers different levels of geoscientific knowledge
Slide 4: Smart Sand Key Highlights
Smart Sand Key Highlights Long-lived, strategically located, high-quality reserve base Intrinsic logistics & low cost production advantages Strategic long-term growth potential Focus on safety and environmental stewardship Experienced management team Strong industry fundamentals Strong balance sheet
Slide 5: Company Overview
Company Overview Company Overview Reserve Locations Smart Sand is a pure-play, low-cost producer of high-quality Oakdale, WI – 1,196 acres Northern White raw frac sand (Monroe County, WI) The Company owns and operates a Northern White raw frac Hixton, WI – 959 acres 81% Finer Mesh Reserve (Jackson
Slide 6: Oakdale Facility: High Quality Northern White Raw Frac Sand - 2017
Oakdale Facility: High Quality Northern White Raw Frac Sand - 2017 5
Slide 7: Oakdale Facility: High Quality Northern White Raw Frac Sand - 2018
Oakdale Facility: High Quality Northern White Raw Frac Sand - 2018 Coulee C Mine 60-140 Winter Storage Pile 20/70 Winter Storage Pile Phase 2 Mine Mine Phase 1.5 Phase 1 Wet Plant Dry Plant 3 Mine Process Water Settling Pond Pond Dry Plant 1 Main office Dry Plant 2 Load Out 3 Mine Access Road Load O
Slide 8: Byron Transload
Byron Transload Crossing Truck Loadout Storm Water Pond Entrance Exit 7
Slide 9: Strategic Long-Term Growth Potential
Strategic Long-Term Growth Potential Options executed on properties in the Permian Basin Minimal upfront investment and minimal royalties Permian Mine Provides low cost options to develop regional Permian Mine, depending on market conditions Opportunity to increase In-Basin sales and provide
Slide 10: Industry Trends Driving Growth in Sand Demand
Industry Trends Driving Growth in Sand Demand U.S. New Well Drilling & Proppant Demand 30,000 180 Millions of Tons of Proppant New US Horizontal Wells 160 25,000 140 20,000 120 100 15,000 80 10,000 60 40 5,000 20 0 - 2013 2014 2015 2016 2017 2018E 2019E 2020E New Horizontal Wells Proppant Demand (Mi
Slide 11: Market Growth Potential
Market Growth Potential 2014 Average 2015 Average 2016 Average 2017 Average 2018E New Horizontal Rigs Drilled 24,622 16,492 9,275 17,619 19,975 Avg. Lateral Length/Well 6,801 ft. 6,883 ft. 7,088 ft. 7,133 ft. 7,347 ft. Pounds/Lateral Foot 869.3 lbs/ft 997.6 lbs/ft 1,187.6 lbs/ft 1,408.6 lbs/ft 1,627
Slide 12: Financial Information
FINANCIAL INFORMATION
Slide 13: Summary Financials
Summary Financials Quarterly Sales Volumes Quarterly Revenue (thousands of tons) ($ in millions) 653 $39.3 559 531 $29.5 $29.8 $25.1 274 230 $10.9 (1) Q3'16A Q4'16A Q1'17A Q2'17A Q3'17A Q3'16A Q4'16A Q1'17A Q2'17A (2) Q3'17A (3) Quarterly Production Costs/Ton Quarterly Adjusted EBITDA ($ in millions
Slide 14: Smart Sand Key Highlights
Smart Sand Key Highlights Long-lived, strategically located, high-quality reserve base Intrinsic logistics & low cost production advantages Strategic long-term growth potential Focus on safety and environmental stewardship Experienced management team Strong industry fundamentals Strong balance sheet
Slide 15: Appendix
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Slide 16: Income Statement
Income Statement For the Year ended Year ended Year ended Nine m onths ended Dec 31, 2014 Dec 31, 2015 Dec 31, 2016 Sep 30, 2017 ($ in millio ns) (Audited) (Audited) (Audited) (Unaudited) Revenues (1) $68.2 $47.7 $59.2 94.2 Cost of sales 29.9 21.0 26.6 67.4 Gross profit 38.2 26.7 32.7 26.8 Operating
Slide 17: Balance Sheet
Balance Sheet As of Decem ber 31, 2014 Decem ber 31, 2015 Decem ber 31, 2016 Sep 30, 2017 ($ in millio ns) (Audited) (Audited) (Audited) (Unaudited) Current assets Cash and cash equivalents $0.8 $3.9 $46.6 $51.8 Accounts receivable 8.6 6.0 5.7 21.5 Inventory – ST 8.6 4.2 10.3 7.7 Prepaid expenses an
Slide 18: Statement of Cash Flows
Statement of Cash Flows For the Year ended Year ended Year ended Nine m onths ended Decem ber 31, 2014 Decem ber 31, 2015 Decem ber 31, 2016 Sep 30, 2017 ($ in millio ns) (Audited) (Audited) (Audited) (Unaudited) Operating activities Net income (loss) $7.6 $5.0 $10.4 $10.6 Adjustments to reconcile n
Slide 19: EBITDA Reconciliation
EBITDA Reconciliation Nine m onths ended Year ended Decem ber 31, Septem ber 30, ($ in tho usands) 2014 2015 2016 2017 Net income (loss) $7,556 $4,990 $10,379 $10,648 Depreciation, depletion, accretion and amortization 3,642 5,318 6,445 5,116 Income tax expense (benefit) 9,518 4,129 9,394 3,354 Inte
Slide 20: EBITDA Reconciliation
EBITDA Reconciliation Quarter ended ($ in thousands) 9/30/2016 12/31/2016 3/31/2017 6/30/2017 9/30/2017 Net income (loss) ($96) $12,441 $969 $2,624 $7,047 Depreciation, depletion, accretion and amortization 1,647 1,624 1,667 1,693 1,756 Income tax expense (benefit) 5 9,445 515 1,154 1,686 Interest e
Slide 21: Production Cost Reconciliation
Production Cost Reconciliation Nine m onths ended Year ended Decem ber 31, Septem ber 30, ($ in tho usands) 2014 2015 2016 2017 Cost of goods sold $29,934 $21,003 $26,569 $67,360 Depreciation, depletion, and accretion of asset retirment obligations (3,481) (4,930) (6,076) (4,799) Freight charges (5,
Slide 22: Production Cost Reconciliation
Production Cost Reconciliation Quarter ended ($ in thousands) 9/30/2016 12/31/2016 3/31/2017 6/30/2017 9/30/2017 Cost of goods sold $5,931 $8,770 $19,662 $21,407 $26,297 Depreciation, depletion, and accretion of asset retirment obligations (1,563) (1,485) (1,579) (1,588) (1,628) Freight charges (1,7