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Sand supplier Smart Sand, announces 4Q, 2021 results and the acquisition of the Hi-Crush Blair, Wisconsin facility

Smart Sand system

Smart Sand, Inc. announces 4Q, 2021 results and the Hi-Crush Blair, Wisconsin Facility acquisition.

Smart Sand, Inc. is a fully integrated frac sand supply and services company. It is a low-cost producer of high-quality Northern White raw frac sand and a provider of proppant logistics solutions; through its in-basin transloading terminal and SmartSystems™ products and services.

Financial results

The sand supplier announced results for the fourth quarter and full-year ended December 31, 2021; and the Hi-Crush Blair Wisconsin Mining Facility was acquired.

In the fourth quarter and for the full year 2021, we were able to ramp up our sales volumes leading to our overall sales volumes getting back to pre-pandemic levels by the end of the year. The addition of the Utica, Illinois mining facility allowed us to expand our sales in the Western operating basins of the United States in Colorado and Wyoming, complementing our historically strong market positions in the Bakken and Appalachian basins…

Charles Young, Smart Sand’s CEO. 

Smart Sand informed 4Q and full-year 2021 revenue of $35.1 million and $126.6 million, respectively. At the 4Q and full-year 2021, the Company announced total tons sold of approximately 872,000 and 3,189,000, respectively. 

Besides, on 4Q and full-year 2021, the organization informed net cash provided by operating activities of $(5.1) million and $32.4 million, respectively. Finally, at 4Q and full-year 2021, the supplier got a free cash flow of $(9.3) million and $21.2 million, respectively.

Sand company projection for 2022

In general, 2022 will be an essential year for Smart Sand wellsite service product offering. The SmartPath™ wellsite transloading system is ready to be fully and consistently deployed in the market. 

Besides, with this service now fully ready; the Company will expand its capabilities to provide consistent, efficient, and sustainable sand sales; and logistics solutions to the customer base.

The mine to wellsite services combine high-quality, reliable northern white sand production, unit train-focused logistics, world-class transloads; and SmartSystems at the wellsite to support our customers’ ESG goals of reducing trucking miles and carbon emissions; while ensuring the sand is available on time and in the volumes required.

Additionaly, Smart Sand has a strong balance sheet and good liquidity. The CEO believes that they are well-positioned to improve market fundamentals for frac sand while expanding their industrial products business. 

We are excited about the start of operations at our new Waynesburg transload facility in southwest Pennsylvania. We believe this terminal positions the Company well to compete for growing northern white sand demand in the Appalachian basins. Additionally, our new product and service initiative, Industrial Products Solutions, continues to gain traction. We see good opportunities in the industrial products sector, which will diversify our customer base and improve the business overall.

Charles Young.

Sand mine acquisition

In summary, in March 4, 2022, the Company entered into a Membership Interest Purchase Agreement with Hi-Crush Inc., a Delaware corporation, and Hi-Crush Blair LLC, a Delaware limited liability company and a wholly-owned subsidiary HCR. 

Smart Sand acquired all of the issued and outstanding limited liability company interests of Blair from HCR for aggregate cash consideration of approximately $6.5 million, subject to customary purchase price adjustments as set forth in the Purchase Agreement.

Also, the facility is directly on the Canadian National Railroad, allowing the organization to expand existing markets and compete in new ones in the U.S. and Canada.

In conclusion, the primary assets of Blair consist of an idle frac sand mine and related processing facility located in Blair, Wisconsin. The Blair facility has approximately 2.8 million tons of total annual processing capacity and contains an onsite unit train capable.

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About Smart Sand

Firstly, Smart Sand is a fully integrated frac sand supply and services company, offering complete mine to wellsite proppant logistics, storage, and management solutions to customers. 

Secondly, the Company produces low-cost, high-quality Northern White frac sand and offer proppant logistics, storage, and management solutions to customers through its in-basin transloading terminal and our SmartSystems wellsite proppant storage capabilities. 

Thridly, it also provides products and services primarily to oil and natural gas exploration, production, and oilfield service companies. 

Finally, the organization owns and operates premium frac sand mines and related processing facilities in Wisconsin and Illinois, which have direct access to four Class I rail lines, allowing it to deliver products substantially anywhere in the United States and Canada. 

For more information, click here.

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