Smart Sand, Inc. (NASDAQ: SND)

Smart Sand, Inc. operates as a fully integrated frac and industrial sand supply and services company, focusing on providing mine-to-wellsite proppant supply and logistics solutions. The company specializes in producing low-cost, high-quality Northern White sand, a premium proppant used in hydraulic fracturing of oil and natural gas wells, as well as for various industrial applications. Smart Sand's operations encompass the entire value chain, from mining and processing to logistics and wellsite storage solutions, catering to the oil and natural gas exploration and production sectors, along with diversified industrial and commercial customers.

The company generates revenue through the sale of frac sand and industrial products, as well as through proppant logistics solutions. Smart Sand's primary products include Northern White frac sand, which is sold under short-term and long-term contracts or spot sales in the open market. Additionally, the company offers proppant logistics solutions through its in-basin transloading terminals and SmartSystems wellsite proppant storage capabilities. These solutions enhance hydrocarbon recovery rates and improve operational efficiency for customers. The customer base primarily consists of oil and natural gas exploration and production companies, oilfield service companies, and industrial customers requiring sand for applications such as glass, foundry, building products, filtration, geothermal, renewables, ceramics, turf & landscape, retail, and recreation.

• Sand Segment: This segment involves the sale of frac sand through short-term and long-term contracts or spot sales. Smart Sand operates several facilities, including the Oakdale, Wisconsin facility with an annual processing capacity of approximately 5.5 million tons, the Ottawa, Illinois facility with a capacity of 1.6 million tons, and the Blair, Wisconsin facility with a capacity of 2.9 million tons. The company also operates a network of in-basin rail terminals, including facilities in Van Hook, North Dakota, Waynesburg, Pennsylvania, Minerva, Ohio, Dennison, Ohio, and El Reno, Oklahoma. These terminals support the efficient delivery of frac sand to key oil and natural gas producing basins. Additionally, Smart Sand has expanded into Industrial Products Solutions (IPS), offering sand for various industrial applications to diversify its customer base and mitigate price volatility in the oil and gas markets. The Ottawa, Illinois plant has been expanded to include blending and cooling capabilities to enhance product offerings in the industrial marketplace.

• SmartSystems Segment: This segment provides wellsite proppant handling solutions and equipment under flexible contract terms. Smart Sand offers portable wellsite storage and management solutions through its SmartSystems products and services. Key offerings include the SmartDepot and SmartDepotXL silo systems, the SmartBelt conveyor, the SmartPath wellsite proppant management system, and rapid deployment trailers. These systems enhance customers' efficiency, safety, and reliability by enabling them to unload, store, and deliver proppant at the wellsite. The company has recently developed new dual bucket elevators to enhance vertical material handling capabilities and increased silo storage capacity to streamline proppant delivery directly to the blender. These innovations provide greater flexibility for customers with varying wellsite configurations while maintaining efficiency, safety, and reliability.

Smart Sand, Inc. holds a strong position within the frac and industrial sand supply industry, leveraging its strategic advantages to compete effectively. The company's key competitors include Badger Mining Corporation, Iron Oak Energy Solutions, LLC, U.S. Silica Holdings, Inc., Capital Sand Company, Source Energy Services, and Solaris Energy Infrastructure, Inc. Smart Sand differentiates itself through several competitive strengths. Firstly, the company possesses a long-lived, strategically located, high-quality reserve base with an estimated life of mine of approximately 71 years at Oakdale, 149 years at Ottawa, and 67 years at Blair, based on current expected sales volumes. This reserve base positions Smart Sand well to take advantage of market trends favoring finer mesh frac sand. Secondly, the company benefits from an intrinsic logistics advantage, with a network of facilities custom-designed for delivering frac sand to major U.S. oil and natural gas producing basins. Access to all Class I rail lines in the United States and Canada further enhances its logistics capabilities. Additionally, Smart Sand's expanded logistics solutions, including its transloading terminals and SmartSystems wellsite proppant storage solutions, offer numerous benefits over competitors. The company's long-term liquidity and financial flexibility, supported by a $30.0 million five-year senior secured asset-based credit facility with First-Citizens Bank & Trust Company, provide a solid foundation for growth. Furthermore, the experienced management team brings significant industry experience and expertise to the market environment.

Smart Sand's customer base includes prominent oil and natural gas exploration and production companies such as EQT Corporation and EOG Resources, Inc., which accounted for 27.7% and 10.9%, respectively, of total revenue in 2025. Other notable customers include Encino Energy and Liberty Oilfield Services. The company also serves a growing portion of industrial customers through its IPS business. Smart Sand's focus on safety and environmental stewardship, as evidenced by its participation in the Wisconsin Department of Natural Resources' Green Tier program and ISO certifications, further strengthens its position in the market. The company's commitment to innovation and continuous improvement, along with its strategic advantages, positions it well for long-term growth and success in the frac and industrial sand supply industry.