Smart Sand (SND) Lytham Partners Spring 2026 Investor Conference summary

Company strengths and operations

• Operates as a leading Northern White frac sand producer with over 450 million tons of reserves across three locations, 70% of which is fine mesh sand, aligning with current market demand.

• Maintains 10 million tons of processing capacity, with direct connections to four Class I railroads, enabling efficient logistics and market reach.

• Focuses on low operating costs through integrated mining, processing, and shipping at single locations, minimizing trucking and royalty expenses.

• Logistics infrastructure includes four owned terminals and access to third-party terminals, supporting major North American basins.

• Industrial products business, primarily from the Ottawa facility, grew over 50% last year and is expected to reach 10% of total volumes over time.

Market trends and growth outlook

• Anticipates substantial growth in natural gas demand, driven by expanding LNG export capacity and increased power generation for AI data centers.

• U.S. LNG capacity is projected to double by 2030, with similar growth expected in Canada, leading to higher demand for natural gas wells and frac sand.

• Frac sand demand is further boosted by longer lateral well lengths and increased sand intensity per foot, especially in the Marcellus and Utica basins.

• U.S. frac sand demand is forecasted to grow at least 15% in 2026, with Canada showing a similar profile.

• The company’s Canadian market share has increased to 10-15% of volumes after acquiring the Blair facility.

Financial strategy and shareholder alignment

• Maintains a prudent capital structure with low leverage; net debt is nearly zero, supporting resilience through industry cycles.

• High insider ownership at 36% aligns management with long-term shareholder value.

• Over $27 million returned to shareholders since 2023 via buybacks and dividends; ongoing $20 million buyback program and regular dividends.

• Opportunistic acquisitions of idle facilities have nearly doubled capacity at low cost.

• Focus remains on operational efficiency, financial discipline, and returning capital while pursuing growth opportunities.