Smart Sand Inc's Business Segments

We are a pure-play, low-cost producer of high-quality Northern White raw frac sand, which is a preferred proppant used to enhance hydrocarbon recovery rates in the hydraulic fracturing of oil and natural gas wells. We sell our products primarily to oil and natural gas exploration and production companies and oilfield service companies under a combination of long-term take-or-pay contracts and spot sales in the open market. We believe that the size and favorable geologic characteristics of our sand reserves and the strategic location and logistical advantages of our facilities have positioned us as a highly attractive source of raw frac sand to the oil and natural gas industry.

The company operates two reportable business segments: the Sand Segment and the SmartSystems Segment. The Sand Segment involves the sale of sand through short-term and long-term contracts or spot sales. Operations began in 2012 at the Oakdale, Wisconsin facility, which initially had an annual processing capacity of 1.1 million tons and has since expanded to approximately 5.5 million tons. Additional facilities include the Ottawa, Illinois mine and processing facility, acquired in September 2020 with a capacity of 1.6 million tons, and the Blair, Wisconsin mine and processing facility, acquired in March 2022 with a capacity of 2.9 million tons. The segment sells frac sand through a network of in-basin rail terminals, directly controlling five in-basin transloading facilities and accessing third-party terminals. Key terminals include Van Hook, North Dakota (operational April 2018), Waynesburg, Pennsylvania (operational January 2022, expanded in Q4 2023), Minerva, Ohio (operational Q2 2024), and Dennison, Ohio (operational Q3 2024, with expansion planned for Q3 2025). The segment also initiated an IPS business in late 2021 to supply sand for various industrial applications, with an expansion of IPS processing equipment at Ottawa, Illinois completed in Q4 2023. The SmartSystems Segment provides wellsite proppant handling solutions and equipment under flexible contracts, offering portable wellsite storage and management solutions through eight SmartSystems products and services.