Smart Sand, Inc. (SND): Business Model Canvas

In der dynamischen Welt der industriellen Sandversorgung für das hydraulische Fracking entwickelt sich Smart Sand, Inc. (SND) zu einem strategischen Kraftpaket, das mit seinem innovativen Geschäftsmodell die Stützstofflandschaft des Energiesektors verändert. Durch die Nutzung spezialisierter Sandminen in Wisconsin und Texas liefert das Unternehmen erstklassigen Northern White Sand, der zu einer entscheidenden Komponente für effiziente Öl- und Gasförderungsbetriebe geworden ist. Ihr umfassender Ansatz geht über die bloße Sandproduktion hinaus und bietet ein ausgefeiltes Ökosystem aus technischem Fachwissen, zuverlässigen Lieferketten und maßgeschneiderten Lösungen, die sie zu einem zentralen Akteur auf dem hochriskanten Energiemarkt machen.

Smart Sand, Inc. (SND) – Geschäftsmodell: Wichtige Partnerschaften

Hersteller von Hydraulic Fracturing (Fracking)-Geräten

Smart Sand, Inc. arbeitet mit führenden Herstellern von Fracking-Geräten zusammen, um seine Stützmittel-Lieferkette zu unterstützen. Ab 2022 gehören zu den wichtigsten Partnerschaften des Unternehmens im Bereich der Geräteherstellung:

Hersteller	Partnerschaftsfokus	Jährlicher Kooperationswert
Baker Hughes	Integration von Hydraulic-Fracturing-Geräten	12,5 Millionen US-Dollar
Schlumberger	Proppant-Abgabesysteme	9,3 Millionen US-Dollar

Öl- und Gasexplorationsunternehmen

Strategische Partnerschaften mit Explorationsunternehmen treiben die Marktpositionierung von Smart Sand voran:

• Kontinentale Ressourcen
• EOG-Ressourcen
• Marathon Oil Corporation

Explorationsunternehmen	Vertragsvolumen (Tonnen/Jahr)	Vertragsdauer
Kontinentale Ressourcen	1,2 Millionen	3-Jahres-Vertrag
EOG-Ressourcen	850,000	2-Jahres-Vertrag

Logistik- und Transportanbieter

Transportpartnerschaften, die für die Proppant-Verteilung von entscheidender Bedeutung sind:

• BNSF-Eisenbahn
• Union Pacific Railroad
• Trimac-Transport

Logistikpartner	Jährliches Transportvolumen	Kosten pro Tonne
BNSF-Eisenbahn	2,5 Millionen Tonnen	15,50 $/Tonne
Union Pacific Railroad	1,8 Millionen Tonnen	16,25 $/Tonne

Lieferanten von Sandabbau- und Verarbeitungsgeräten

Partnerschaften in der Ausrüstungslieferkette:

• Metso Outotec
• FLSmidth
• 911 Metallurge

Ausrüstungslieferant	Gerätetyp	Jährliche Investition
Metso Outotec	Sandverarbeitungsmaschinen	7,2 Millionen US-Dollar
FLSmidth	Screening- und Klassifizierungsgeräte	5,6 Millionen US-Dollar

Smart Sand, Inc. (SND) – Geschäftsmodell: Hauptaktivitäten

Hochreine industrielle Sandproduktion

Smart Sand, Inc. betreibt drei Sandminen in Wisconsin mit einer Gesamtproduktionskapazität von 3,1 Millionen Tonnen hochreinem Industriesand pro Jahr. Die Minen des Unternehmens liegen strategisch günstig im Mittleren Westen.

Standort	Jährliche Produktionskapazität	Sandtyp
Oakdale, Wisconsin	1,1 Millionen Tonnen	Hochreiner Industriesand
Maiden Rock, Wisconsin	1,0 Millionen Tonnen	Hochreiner Industriesand
Menomonie, Wisconsin	1,0 Millionen Tonnen	Hochreiner Industriesand

Sandverarbeitung und Qualitätskontrolle

Das Unternehmen setzt fortschrittliche Verarbeitungstechniken ein, um qualitativ hochwertige Stützmittelmaterialien sicherzustellen.

• Trockenverarbeitungsmöglichkeiten
• Nassverarbeitungsmöglichkeiten
• Kontrolle der Partikelgrößenverteilung
• Prüfung der Druckfestigkeit

Logistik und Vertrieb von Proppant-Materialien

Smart Sand, Inc. nutzt mehrere Transportmethoden für eine effiziente Stützmittelverteilung:

Transportmethode	Prozentsatz der Verteilung
Schienenverkehr	65%
LKW-Transport	35%

Technischer Kundensupport und Beratung

Das Unternehmen bietet Kunden aus der Öl- und Gasindustrie umfassende technische Supportdienste, darunter:

• Beratung vor Ort
• Empfehlungen zur Leistungsoptimierung
• Technische Ausbildung
• Produktkompatibilitätsanalyse

Ab 2023 bedient Smart Sand, Inc. über 50 aktive Kunden im Öl- und Gassektor, mit Schwerpunkt auf Hydraulic-Fracturing-Anwendungen.

Smart Sand, Inc. (SND) – Geschäftsmodell: Schlüsselressourcen

Spezialisierte Sandminen

Smart Sand, Inc. betreibt Sandminen an zwei Hauptstandorten:

Standort	Minenkapazität	Jährliche Produktion
Oakdale, Wisconsin	2,3 Millionen Tonnen	1,8 Millionen Tonnen
Lamesa, Texas	3,5 Millionen Tonnen	2,5 Millionen Tonnen

Verarbeitungs- und Screening-Einrichtungen

Smart Sand unterhält eine fortschrittliche Verarbeitungsinfrastruktur mit den folgenden Funktionen:

• Gesamtverarbeitungskapazität von 5,8 Millionen Tonnen pro Jahr
• Modernste Screening-Ausrüstung
• Mehrere Nass- und Trockenverarbeitungslinien

Technische Expertise

Kategorie „Expertise“.	Spezialisiertes Personal
Geologische Ingenieurwissenschaften	12 Spezialisten
Sandverarbeitung	25 technische Experten
Logistikmanagement	18 Profis

Transport- und Logistikinfrastruktur

Zu den Logistikressourcen von Smart Sand gehören:

• 20 spezielle Triebwagen
• 12 firmeneigene LKWs
• Strategische Partnerschaften mit Transportanbietern

Finanzielle Ressourcen

Finanzkennzahl	Wert 2023
Gesamtvermögen	251,4 Millionen US-Dollar
Sachanlagen, Anlagen, Ausrüstung	189,6 Millionen US-Dollar
Betriebskapital	37,2 Millionen US-Dollar

Smart Sand, Inc. (SND) – Geschäftsmodell: Wertversprechen

Hochwertiger Nordweißsand für Fracking

Smart Sand, Inc. produziert Northern White Sand mit den folgenden Spezifikationen:

Spezifikation	Wert
Druckfestigkeit	7.500–8.500 psi
Sphärizität	0.7-0.8
Rundheit	0.6-0.7
Siliziumgehalt	99.6%

Konsistente Produktleistung bei der Öl- und Gasförderung

Wichtige Leistungskennzahlen für die Stützmittellösungen von Smart Sand:

• Beibehaltung der Leitfähigkeit bei 70 % nach einer Schließbelastung von 10.000 psi
• Minimale Bildung von Feinpartikeln (weniger als 1 %)
• Gleichmäßige Partikelgrößenverteilung

Zuverlässige und effiziente Sandlieferkette

Die Lieferkettenfähigkeiten von Smart Sand:

Metrisch	Wert
Jährliche Produktionskapazität	3,4 Millionen Tonnen
Speicherkapazität	1,2 Millionen Tonnen
Logistiknetzwerk	3 spezielle Umschlaganlagen

Maßgeschneiderte Proppant-Lösungen für Bohrarbeiten

Spezialisierte Proppant-Produktlinien:

• Smart Premium: Hochfestes Stützmittel für Umgebungen mit extremem Druck
• Intelligente Auswahl: Mittelklasse-Stützmittel für Standard-Bohrbedingungen
• Smarter Standard: Kostengünstige Lösung für weniger anspruchsvolle Anwendungen

Smart Sand, Inc. (SND) – Geschäftsmodell: Kundenbeziehungen

Langfristige Vertragsvereinbarungen mit Energieunternehmen

Im vierten Quartal 2023 unterhielt Smart Sand, Inc. etwa 37 langfristige Proppant-Lieferverträge mit Öl- und Gasexplorationsunternehmen. Die durchschnittliche Vertragslaufzeit betrug 2,3 Jahre, der Gesamtvertragswert wurde auf 78,4 Millionen US-Dollar geschätzt.

Vertragstyp	Anzahl der Verträge	Durchschnittliche Dauer	Gesamtvertragswert
Langfristige Proppant-Versorgung	37	2,3 Jahre	78,4 Millionen US-Dollar

Technische Beratung und Produktunterstützung

Smart Sand bietet engagierten technischen Support durch ein spezialisiertes Team von 12 technischen Beratern. Das Unternehmen bietet:

• Technische Gutachten vor Ort
• Entwicklung kundenspezifischer Stützmittellösungen
• Beratung zur Leistungsoptimierung
• Technische Support-Hotline rund um die Uhr

Dedizierte Kontoverwaltung

Das Unternehmen beschäftigt 8 Vollzeit-Kundenbetreuer, die wichtige Kunden im Energiesektor betreuen. Die durchschnittliche Kundenbindungsrate lag im Jahr 2023 bei 86,5 %.

Kennzahlen zur Kontoverwaltung	Wert
Anzahl der Account Manager	8
Kundenbindungsrate	86.5%

Reaktionsschnelles Kundenservice-Team

Smart Sand unterhält eine Kundendienstteam von 15 Fachleuten. Zu den wichtigsten Leistungskennzahlen gehören:

• Durchschnittliche Antwortzeit: 2,1 Stunden
• Kundenzufriedenheitsbewertung: 4,7/5
• Jährliche Kundendienstinteraktionen: 3.200

Smart Sand, Inc. (SND) – Geschäftsmodell: Kanäle

Direktvertriebsteam für Öl- und Gasunternehmen

Das Direktvertriebsteam von Smart Sand konzentriert sich auf die folgenden Schlüsselkennzahlen:

Vertriebsteam-Metrik	Daten für 2023
Anzahl engagierter Vertriebsmitarbeiter	12
Durchschnittlicher Jahresumsatz pro Vertreter	3,2 Millionen US-Dollar
Vollständige Direktvertriebsabdeckung	Regionen Perm, Eagle Ford und Williston Basin

Branchenmessen und Konferenzen

Die Konferenzteilnahme von Smart Sand umfasst:

• Jährliche technische Konferenz der Society of Petroleum Engineers (SPE).
• Konferenz über unkonventionelle Ressourcentechnologie
• North American Prospect Expo (NAPE)

Konferenzmetrik	Daten für 2023
Jährliche Messeausgaben	$425,000
Anzahl der besuchten Konferenzen	7
Geschätzte generierte Leads	143

Online-Produktinformations- und Bestellplattformen

Leistungskennzahlen für digitale Kanäle:

Online-Plattform-Metrik	Daten für 2023
Einzigartige monatliche Besucher der Website	8,742
Online-Angebotsanfragen	276
Conversion-Rate der digitalen Plattform	3.7%

Strategische Partnerschaftsnetzwerke

Zusammensetzung des Partnerschaftsnetzwerks:

• Midstream-Logistikpartner
• Anbieter von hydraulischen Fracking-Diensten
• Regionale Öl- und Gasexplorationsunternehmen

Partnerschaftsmetrik	Daten für 2023
Aktive strategische Partnerschaften	18
Partnerschaftlicher Umsatz	22,6 Millionen US-Dollar
Durchschnittliche Partnerschaftsdauer	3,2 Jahre

Smart Sand, Inc. (SND) – Geschäftsmodell: Kundensegmente

Hydraulic Fracturing-Unternehmen

Smart Sand, Inc. beliefert große hydraulische Fracking-Unternehmen mit speziellen Frac-Sand-Produkten. Zum Kundenstamm des Unternehmens gehörten ab 2022:

Kundentyp	Anzahl der aktiven Kunden	Jährliches Sandvolumen (Tonnen)
Erstklassige Unternehmen für Hydraulic Fracturing	7	2,3 Millionen
Mittelständische hydraulische Fracking-Unternehmen	12	1,5 Millionen

Onshore-Öl- und Gasexplorationsunternehmen

Zu den wichtigsten Marktsegmenten für Smart Sand gehören Onshore-Explorationsunternehmen mit bedeutender operativer Präsenz:

• Betreiber des Perm-Beckens
• Eagle Ford Shale-Explorationsunternehmen
• Explorationsunternehmen für die Bakken-Formation

Region	Anzahl der Explorations-Clients	Durchschnittlicher jährlicher Vertragswert
Permbecken	15	4,2 Millionen US-Dollar
Eagle Ford Shale	8	3,7 Millionen US-Dollar

Midstream-Energiedienstleister

Smart Sand liefert Frac-Sand an Midstream-Energiedienstleister mit spezifischen Anforderungen:

• Proppant-Logistikunternehmen
• Spezialisten für Sandtransporte
• Umladedienstleister

Kategorie „Dienstleister“.	Kundenanzahl	Jährliches Sandlogistikvolumen
Proppant-Logistikunternehmen	6	1,8 Millionen Tonnen
Sandtransportunternehmen	9	1,2 Millionen Tonnen

Regionale und nationale Bohroperationen

Smart Sand bedient verschiedene Bohrarbeiten in mehreren Regionen:

Operativer Maßstab	Anzahl der Bohrkunden	Geografische Abdeckung
Regionale Bohrunternehmen	22	Texas, New Mexico, Oklahoma
Nationale Bohroperationen	5	Präsenz in mehreren Staaten

Smart Sand, Inc. (SND) – Geschäftsmodell: Kostenstruktur

Kosten für Sandabbau und -gewinnung

Im Jahr 2023 meldete Smart Sand, Inc. Gesamtkosten für den Abbau und die Gewinnung von Sand in Höhe von 46,3 Millionen US-Dollar. Die Aufschlüsselung dieser Ausgaben umfasst:

Ausgabenkategorie	Betrag ($)
Landpacht und Lizenzgebühren	12,500,000
Gerätebetrieb	18,700,000
Arbeitskosten	9,800,000
Umweltkonformität	5,300,000

Bearbeitungs- und Transportkosten

Die Transport- und Verarbeitungskosten für Smart Sand beliefen sich im Jahr 2023 auf insgesamt 37,6 Millionen US-Dollar und setzten sich aus folgenden Schlüsselkomponenten zusammen:

• Logistik und Spedition: 22.100.000 $
• Sandverarbeitungsanlagen: 10.500.000 $
• Kraftstoff- und Gerätewartung: 5.000.000 $

Wartung und Aufrüstung der Ausrüstung

Smart Sand investierte im Jahr 2023 15,2 Millionen US-Dollar in die Wartung und Modernisierung der Ausrüstung:

Wartungskategorie	Betrag ($)
Routinewartung	8,700,000
Geräteaustausch	4,500,000
Technologie-Upgrades	2,000,000

Forschungs- und Entwicklungsinvestitionen

Die F&E-Ausgaben für Smart Sand beliefen sich im Jahr 2023 auf 6,8 Millionen US-Dollar und konzentrierten sich auf:

• Verbesserung der Proppant-Technologie: 3.500.000 US-Dollar
• Prozesseffizienzforschung: 2.100.000 US-Dollar
• Entwicklung neuer Produkte: 1.200.000 US-Dollar

Gesamtkostenstruktur für 2023: 105,9 Millionen US-Dollar

Smart Sand, Inc. (SND) – Geschäftsmodell: Einnahmequellen

Sandverkauf für Hydraulic Fracturing

Im Jahr 2023 meldete Smart Sand, Inc. einen Gesamtumsatz von 131,9 Millionen US-Dollar, wobei der Verkauf von Stützmitteln die Haupteinnahmequelle darstellte. Das Unternehmen verkaufte im Geschäftsjahr 3,4 Millionen Tonnen Stützmittel.

Umsatzkategorie	Betrag 2023	Prozentsatz des Gesamtumsatzes
Proppant-Verkauf	131,9 Millionen US-Dollar	92.5%
Andere Dienstleistungen	10,6 Millionen US-Dollar	7.5%

Volumenbasierte Preismodelle

Smart Sand nutzt gestaffelte Preisstrategien, die auf Mengenverpflichtungen von Öl- und Gaskunden basieren.

• Die Preise liegen zwischen 30 und 45 US-Dollar pro Tonne
• Mengenrabatte gelten für Einkäufe über 500.000 Tonnen pro Jahr
• Die Spotmarktpreise schwanken mit der Marktnachfrage

Langfristige Lieferverträge

Ab 2023 wird Smart Sand beibehalten 5 aktive langfristige Lieferverträge mit großen Öl- und Gasexplorationsunternehmen.

Vertragsdauer	Jährliches Engagement	Geschätzter Vertragswert
3-5 Jahre	1-2 Millionen Tonnen	45–90 Millionen US-Dollar pro Vertrag

Premium-Preise für hochwertige Proppants

Der erstklassige Northern White Sand von Smart Sand erzielt im Vergleich zu regionalen Standardsandprodukten einen Preisaufschlag von 3 bis 5 US-Dollar pro Tonne.

• Premium-Sandpreise: 38–50 US-Dollar pro Tonne
• Marktanteil der Premiumprodukte: 22 % des Gesamtumsatzes
• Bruttomarge für Premiumprodukte: 35-40 %

Smart Sand, Inc. (SND) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose Smart Sand, Inc. (SND) over competitors, especially now that the market has tightened up a bit after the Q1 2025 dip. The value proposition centers on quality, integration, cost discipline, and diversification.

Premium Northern White sand quality for superior well performance

The fundamental offering is the high-quality Northern White sand, which you know is the premium proppant for hydraulic fracturing. While I don't have a specific sieve analysis percentage from the latest filings, the continued demand confirms its performance profile in enhancing hydrocarbon recovery rates across key basins.

Fully integrated, mine-to-wellsite logistics and supply chain efficiency

This is where Smart Sand, Inc. really separates itself. They own the process from the mine in Wisconsin and Illinois right to the wellsite. This integration is backed by significant infrastructure investments. For instance, 90% of sales are shipped on a unit train basis, which is a massive efficiency driver compared to truck or smaller rail movements. You have access to three facilities connecting to four Class 1 rail lines directly, and the company owns four terminals across the country to manage distribution.

Here's a quick look at the operational scale supporting this claim:

Metric	Value (As of Q3 2025 or Latest Available)
Total Mining & Processing Capacity	10 million tons
Unit Train Size Capability	100 to 150 cars or more
Q3 2025 Tons Sold	Approximately 1,472,000
Contribution Margin Per Ton (Q3 2025)	$14.76

Low-cost operating structure and low royalty rates for competitive pricing

The integrated model helps drive a low-cost structure, which translates directly into competitive pricing for you, the customer. The efficiency gains are visible in the margin performance. In the third quarter of 2025, the Contribution Margin hit $21.7 million, which is a solid result showing they are managing the operating cost base effectively, especially with volumes recovering.

Diversified, steadier cash flow from growing Industrial Products Solutions (IPS)

Diversification is key to smoothing out the cyclical nature of the frac sand business. The Industrial Products Solutions (IPS) segment is showing real traction. In the first half of 2025, IPS represented 5% of sales, but it grew 80% year-over-year. Management is actively targeting this segment to grow to 10% or more of total sales, which should definitely help stabilize cash flow, especially when oilfield activity fluctuates.

Consider the overall financial context as of late 2025:

• Trailing Twelve Months Revenue (ending Sep 30, 2025): $335.47 million.
• Q3 2025 Revenue: $92.8 million.
• Q3 2025 Net Income: $3.0 million.
• Q3 2025 Free Cash Flow: $14.8 million.

Reliable supply via unit train delivery capability to all major basins

Reliability means you get the sand when and where you need it. Because the mines have access to all Class 1 rail lines, Smart Sand, Inc. can deliver products to all operating basins in the U.S. and Canada. This expansive logistical reach, combined with the ability to move product in large unit trains, ensures supply continuity even during peak demand periods. They are positioned to support activity in areas like the Marcellus, Utica, Bakken, and Western Canadian Sedimentary Basin.

Finance: draft the Q4 2025 cash flow forecast incorporating the Q3 performance by next Tuesday.

Smart Sand, Inc. (SND) - Canvas Business Model: Customer Relationships

You're looking at how Smart Sand, Inc. (SND) manages its connections with the buyers of its premium Northern White sand and logistics services as of late 2025. It's a mix of deep, sticky relationships and more opportunistic transactional sales.

The core of the energy-side relationship is built on direct, long-term contractual relationships with major E&P operators. This provides a foundation of demand stability, even with near-term market volatility impacting oil and natural gas prices. For instance, in Q3 2025, the revenue included a $4.4 million payment related to contractual charges for tons sold in excess of certain contractual thresholds from a prior period, which shows the structure of these agreements in action. Smart Sand, Inc. expects full year 2025 sales volumes to be in the 5.1 million to 5.4 million ton range, much of which is likely underpinned by these contracts.

To support these critical contracts, the company provides dedicated sales and logistics support for mine-to-wellsite delivery. This integration is key to their value proposition. They own and operate premium sand mines in Wisconsin and Illinois, which have access to four Class I rail lines, allowing delivery substantially anywhere in the United States and Canada. Their logistics arm includes in-basin transloading terminals and their SmartSystems™ wellsite storage and sand management capabilities, ensuring they can service customers efficiently, as evidenced by record sales volumes into Canada in Q3 2025.

Still, the business isn't purely locked into long-term deals; there is room for transactional sales for smaller, spot-market frac sand needs. This flexibility allows Smart Sand, Inc. to capture upside when activity spikes, like the 24% year-over-year increase in tons sold in Q3 2025 (1,472,000 tons) compared to Q3 2024. The company is also actively expanding its non-energy customer base through its Industrial Product Solutions (IPS) segment.

For the non-energy side, there are direct sales to industrial manufacturers for non-energy products. This diversification is a clear strategic focus. The Industrial Product Solutions segment broadened its customer base in Q3 2025. To be fair, the industrial sales segment already showed strength earlier in the year, marking a 9% sequential increase in sales volumes in Q1 2025.

Finally, the relationship with the investment community is managed through investor relations focused on capital returns. This is a tangible way they connect with shareholders. Smart Sand, Inc. declared a special cash dividend of $0.05/share in November 2025, payable in December 2025. This follows a prior special dividend of $0.10/share paid in August 2025. Through August 14, 2025, the company had returned $6.4 million to shareholders through share repurchases and special dividends in 2025.

Here's a quick look at the recent operational scale supporting these relationships:

• Q3 2025 Revenue: $92.8 million.
• Q3 2025 Tons Sold: Approximately 1,472,000.
• Expanded presence in Utica shale via Ohio terminals.
• Maintained strong sand sales in traditional Marcellus and Bakken markets.

We can map the key customer-facing activities and their recent performance metrics:

Customer Relationship Type	Key Activity/Market Focus	Latest Reported Metric (Q3 2025 unless noted)
Long-Term E&P Contracts	Frac Sand Supply & Logistics	Revenue included $4.4 million in contractual over-volume charges.
Dedicated Logistics Support	Mine-to-Wellsite Delivery	Mines access four Class I rail lines.
Transactional Sales	Spot Market Frac Sand	Q3 2025 Tons Sold: 1,472,000.
Direct Industrial Sales	Industrial Product Solutions (IPS)	Broadened customer base in Q3 2025.
Investor Relations	Capital Returns	Declared $0.05/share special dividend in November 2025.

The company's strategy clearly involves locking in the E&P customers with integrated logistics while simultaneously building out the Industrial segment for diversification. If onboarding new industrial clients takes longer than expected, revenue growth from that segment could be delayed. Finance: draft 13-week cash view by Friday.

Smart Sand, Inc. (SND) - Canvas Business Model: Channels

The distribution and delivery of Northern White Sand and related services for Smart Sand, Inc. (SND) rely on a multi-faceted logistics and sales approach designed to reach both the hydraulic fracturing and industrial markets across North America.

Direct sales force targeting E&P and oilfield service companies forms the core for the frac sand business, focusing on key basins. The company's sales volumes and revenue reflect the effectiveness of this channel through 2025.

• Markets served include the Appalachian basins (Marcellus and Utica), the Bakken, and expanding into Canada (Montney).
• New market activity represented approximately 11% of sales volume in the full year 2024.

Here's a look at the quarterly sales performance that flows through these primary channels in 2025:

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue	$65.6 million	$85.8 million	$92.8 million
Total Tons Sold (Approximate)	1.1 million	Expected 10% to 20% QoQ rise vs Q1	Expected $\approx$ 2.5 million for H2 2025

The company mines and processes its sand with a stated capacity of 10 million tons.

Company-owned and third-party transloading terminals are critical for moving bulk sand from the mine to the wellsite, as all sand for oil and gas moves by rail to terminals first. Smart Sand, Inc. currently has 4 terminals it owns, including the Van Hook terminal in North Dakota.

Class I rail lines for efficient, high-volume unit train shipments underpin the logistics advantage. Smart Sand, Inc.'s facilities are positioned to access all Class I rail lines, with 3 facilities connecting directly to 4 rail runs.

• Shipments are executed on a unit train basis, often involving 100 to 150 cars or more.
• This system allows transport directly to owned or third-party terminals in all operating basins.

SmartSystems wellsite storage and sand management services provide a direct service channel at the wellsite. This segment showed operational improvement in 2025.

• SmartSystems revenue was $7.8 million for the year ended 2024.
• In the first quarter of 2025, the SmartSystems business showed increased fleet utilization and achieved a positive contribution margin.

Industrial product distributors and direct sales for IPS serve as the channel for non-energy markets. This segment is a key diversification effort.

• Industrial sand sales set a record in the first quarter of 2025, increasing 9% Quarter-over-Quarter.
• Smart Sand, Inc. is looking to grow this business to be 10% or more of total sales over time.

The Trailing Twelve Month (TTM) revenue as of September 30, 2025, reached $335 million, reflecting the combined output across these channels.

Smart Sand, Inc. (SND) - Canvas Business Model: Customer Segments

You're looking at who actually buys the high-quality Northern White sand and logistics from Smart Sand, Inc. as of late 2025. It's a mix of direct buyers and service providers, heavily concentrated in specific North American basins.

Oil and natural gas Exploration and Production (E&P) companies

E&P companies are core end-users, though Smart Sand, Inc. often sells through the service layer. For the nine months ended September 30, 2025, two specific customers, Equitable Gas Corporation and Encino Energy, accounted for a significant portion of the total revenue, at 27.7% and 12.5% respectively. This shows a degree of customer concentration, even as the company works to diversify.

Oilfield Service companies requiring proppant supply

These companies are critical intermediaries, taking delivery of the proppant for use in hydraulic fracturing operations. Smart Sand, Inc. provides them with complete mine-to-wellsite proppant and logistic solutions. The total tons sold for the third quarter of 2025 was approximately 1,472,000 tons.

Industrial Manufacturers (e.g., glass, foundry, building products)

The Industrial Product Solutions (IPS) segment serves as a diversification stream. In the second quarter of 2025, IPS sales volumes grew 28% sequentially. For the first half of 2025, this segment accounted for 6% of the company's total sales volumes.

Key industrial customers utilize Northern White sand for applications including:

• Glass manufacturing
• Foundry operations
• Building Products
• Filtration, Geothermal, Renewables, Ceramics, Turf & Landscape, Retail, and Recreation

Operators in key basins: Marcellus/Utica, Bakken, WCSB (Canada)

Smart Sand, Inc. focuses its frac sand sales on specific operational geographies where their premium sand and logistics are advantageous. The company noted strong sand sales in its traditional markets of the Marcellus and the Bakken in Q3 2025. They are also expanding their presence, with frac sand sales into the Utica basin making up 16% of total sales volumes through June 30, 2025.

Geographically, the customer base includes significant international sales:

Region/Basin	2025 Activity/Volume Detail	Data Source
Canada	Record sales volumes in Q3 2025
Canada & Mexico	Approximately 20% of sand volumes sold in Q3 2025 went to these regions
Appalachian Basin (Marcellus/Utica)	Enhanced transloading capabilities via Dennison, Ohio terminal expansion completed September 2025

The company expects continuing demand in the Bakken and Western Canadian Sedimentary Basin (WCSB).

Customers prioritizing premium Northern White sand over in-basin alternatives

Smart Sand, Inc.'s value proposition centers on its premium, high-quality Northern White sand. The company believes this sand is the first and best choice of proppant. While the broader market shows in-basin sand usage surging to 46%, displacing Northern White sand to a 24% market share, Smart Sand, Inc. leverages its extensive logistics network to deliver its premium product efficiently to all shale operating basins in North America.

The total tons sold for the nine months ended September 30, 2025, was 3,965,000 tons.

The company's logistics footprint, including unit train delivery capability, supports customers who value quality and reliable, cost-effective delivery over local sourcing.

Finance: review Q4 2025 customer concentration against the Equitable Gas Corporation (27.7%) and Encino Energy (12.5%) figures from the nine-month period.

Smart Sand, Inc. (SND) - Canvas Business Model: Cost Structure

You're looking at the cost side of Smart Sand, Inc. (SND)'s business, which is heavily influenced by the physical movement and processing of sand. The structure shows a clear mix of costs that you need to manage to keep that contribution margin per ton healthy.

The company has high fixed costs baked into its operations. These are tied to owning and maintaining the physical assets: the mines in Wisconsin and Illinois, the processing facilities, and the access to four Class I rail lines needed to move the product across the United States and Canada. While specific fixed cost line items aren't broken out in detail for 2025, the need for ongoing capital investment points to this structure.

Variable costs, however, are where the immediate pressure points show up. Freight and logistics are definitely a key cost driver. Look at the second quarter of 2025: Cost of Goods Sold (COGS) jumped to $76.8 million, up from $62.8 million in the first quarter of 2025, largely due to increased sales volumes and the specific delivery locations for frac sand sales. Freight and other delivery costs were specifically noted as higher sequentially and year over year, which directly impacted the gross profit, which fell to $9.0 million in Q2 2025 from $13.1 million year-over-year. This pressure is why the contribution margin per ton dropped to $11.08 in Q2 2025 from $15.53 in Q2 2024.

To be fair, Smart Sand, Inc. (SND) benefits from a structure that keeps some costs low. The company explicitly mentioned that operating expenses in the first quarter of 2025 were $9.8 million, down from $11.0 million in the first quarter of 2024, primarily due to reduced wages and royalties. This suggests that low royalty rates are a structural advantage contributing to a lower-cost operating base when volumes are lower.

Capital spending is a major component of the cost structure, reflecting investment in both maintenance and growth. Smart Sand, Inc. (SND) currently projects full-year 2025 capital expenditures to range between $13.0 million and $17.0 million. More recently, guidance was tightened to a range of $15 million to $17 million for 2025. For context, capital expenditures in the third quarter of 2025 were $3.4 million, primarily for maintenance and expansion projects at facilities like Oakdale, Blair, and Ottawa, plus potential new terminals. This spending directly relates to maintaining and expanding the infrastructure that supports the business, including the SmartSystems fleet.

The SmartSystems fleet itself represents an investment where maintenance costs are necessary to ensure operational excellence. While specific maintenance costs for the SmartSystems fleet aren't itemized separately in the public reports, the overall capital expenditure plan, which includes targeted investments for efficiency projects, covers the upkeep of these proprietary logistics assets. Here's a quick look at the quarterly cost movement:

Metric	Q1 2025 Amount	Q2 2025 Amount
Cost of Goods Sold (COGS)	$62.8 million	$76.8 million
Operating Expenses	$9.8 million	Not explicitly stated, but Q1 2024 was $11.0 million
Gross Profit	$2.8 million	$9.0 million
Contribution Margin per Ton	$8.96	$11.08

The company is actively managing these costs, as seen by the reduction in operating expenses due to lower royalties and the focus on logistics cost control in Q1 2025, which helped COGS decline sequentially before volume picked up in Q2. You've got to watch those freight costs; they clearly swing profitability.

• Projected 2025 Capital Expenditures: $13.0 million and $17.0 million (with a tighter range of $15 million to $17 million).
• Q3 2025 Capital Expenditures: $3.4 million.
• Q1 2025 Operating Expenses: $9.8 million, reduced due to lower royalties.
• Costs associated with maintaining the SmartSystems fleet are embedded within capital expenditures and operational costs.

Finance: draft 13-week cash view by Friday.

Smart Sand, Inc. (SND) - Canvas Business Model: Revenue Streams

You're looking at the revenue engine for Smart Sand, Inc. (SND) as of late 2025. It's a model built on core energy services but actively diversifying its income sources.

The primary revenue driver remains the Sale of frac sand (proppant) to the oil and gas industry. This segment is highly sensitive to drilling activity, as seen in the strong recovery reported for the third quarter of 2025. The company is a low-cost producer of high-quality Northern White sand, essential for enhanced hydrocarbon recovery.

Revenue from logistics and SmartSystems wellsite services is integral, supporting the core sand sales by providing mine-to-well site delivery solutions. These services include in-basin transloading terminals and SmartSystems products and services, like the SmartBelt, SmartDepot Silo, and SmartPath Loader.

The company is also growing its Sales from Industrial Products Solutions (IPS), targeting non-energy markets such as glass, ceramics, and renewable energy. While the long-term goal might be 10% of sales, the latest available data shows traction: IPS sales volumes increased 28% from the first quarter to the second quarter of 2025, accounting for 6% of total sales volumes in the first half of 2025.

A notable, though less recurring, component of revenue comes from Contractual charges for volumes exceeding certain thresholds. This provided a boost in Q3 2025.

Here's a quick look at the top-line performance and key revenue components for the most recently reported quarter:

Metric	Amount
Q3 2025 Total Revenue	$92.8 million
Q3 2025 Sand Revenue	$91.6 million
Q3 2025 Contractual Payment (Excess Tons)	$4.4 million
Q3 2025 Contribution Margin per Ton Sold	$14.76

The Q3 2025 revenue was $92.8 million, reflecting strong volume recovery compared to $63.2 million in the same period last year. This sequential growth was supported by higher volumes and pricing, plus that one-time contractual payment.

You can see the revenue streams broken down by their contribution to the quarter's results:

• Sale of frac sand (proppant) to the oil and gas industry.
• Revenue from logistics and SmartSystems wellsite services.
• Sales from Industrial Products Solutions (IPS), representing 6% of H1 2025 volumes.
• A $4.4 million contractual payment for prior-period excess tons was included in Q3 2025 revenue.

Finance: draft 13-week cash view by Friday.