US Silica — Merger or Acquisition (July 2014)
9 slides from US Silica's merger presentation, Jul 17, 2014
Slide 1: Cadre Acquisition Conference Call, July 17th, 2014
CADRE ACQUISITION CONFERENCE CALL JULY 17 th , 2014 Exhibit 99.2
Slide 2: Disclaimers
2 Disclaimers This presentation contains forward-looking statements that reflect, when made, our current views with respect to current events and financial performance. Such forward-looking statements are subject to many risks, uncertainties and factors relating to our operations and business enviro
Slide 3: Delivering against our growth plan
3 Delivering against our growth plan…… • Enhance and deepen our customer relationships • Profitably increase market share in Oil & Gas segment – Reinvest in high return projects to add greenfield capacity – Expand product offerings and geographic reach – Enhance and diversify logistics capabilities
Slide 4: Cadre Operations Overview
Cadre Operations Overview • Regional frac sand producer located in Voca, Texas • Fully-automated, state-of-the- art facility opened in 2011 • Products shipped by truck to the fast-growing Permian Basin • Over 65 years of high quality reserves • Capacity expanded in March 2014 to 800,000 tons annuall
Slide 5: Cadre Acquisition Rationale
Cadre Acquisition Rationale • Expands SLCA capacity and product offerings • Strong regional player serving fast-growing Permian Basin • Sustainable demand • Great reputation for quality and customer service • Leverages SLCA’s core competencies and strong customer relationships • Further diversifies
Slide 6: Cadre Transaction Economics
Cadre Transaction Economics 6 • Purchase price of $98M - all cash transaction • Deferred tax asset NPV of $14M reduces total consideration to $84M • Anticipated 2015 Adjusted EBITDA of approximately $18M • Implied 4.7x adjusted purchase price multiple • Expected to be accretive to 2015 SLCA adjusted
Slide 7: Driving Success with Speed, Scale, Strength
7 Driving Success with Speed, Scale , Strength • Moved quickly and decisively to capture the opportunity • Increases share in the fast-growing Permian Basin • Expands SLCA capacity and product offerings • Provides customers with more choices of quality proppants • Creates a new value stream • Potent
Slide 8: Questions?
QUESTIONS?
Slide 9: Adjusted EBITDA and Adjusted EPS
9 Driving Success with Speed, Scale , Strength Adjusted EBITDA and Adjusted EPS Adjusted EBITDA and Adjusted EPS are not measures of our financial performance or liquidity under GAAP and should not be considered as an alternative to net income as a measure of operating performance, cash flows from o
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