Smart Sand, Inc. (SND): Lienzo del Modelo de Negocio [Actualizado en Ene-2025]

En el mundo dinámico del suministro de arena industrial para la fractura hidráulica, Smart Sand, Inc. (SND) surge como una potencia estratégica, transformando el panorama de apropiado del sector energético con su innovador modelo de negocio. Al aprovechar las minas de arena especializadas en Wisconsin y Texas, la compañía ofrece arena blanca del norte premium que se ha convertido en un componente crítico en operaciones eficientes de extracción de petróleo y gas. Su enfoque integral va más allá de la mera producción de arena, ofreciendo un ecosistema sofisticado de experiencia técnica, cadenas de suministro confiables y soluciones personalizadas que los posicionan como un jugador fundamental en el mercado energético de alto riesgo.

Smart Sand, Inc. (SND) - Modelo de negocio: asociaciones clave

Fabricantes de equipos de fractura hidráulica (fracking)

Smart Sand, Inc. colabora con los principales fabricantes de equipos de fracking para apoyar su cadena de suministro de apuntalamiento. A partir de 2022, las asociaciones clave de fabricación de equipos de la compañía incluyen:

Fabricante	Enfoque de asociación	Valor de colaboración anual
Baker Hughes	Integración de equipos de fractura hidráulica	$ 12.5 millones
Schlumberger	Sistemas de entrega de apuntalantes	$ 9.3 millones

Empresas de exploración de petróleo y gas

Las asociaciones estratégicas con compañías de exploración impulsan el posicionamiento del mercado de Smart Sand:

• Recursos continentales
• Recursos EOG
• Marathon Oil Corporation

Empresa de exploración	Volumen del contrato (toneladas/año)	Duración del contrato
Recursos continentales	1.2 millones	Acuerdo de 3 años
Recursos EOG	850,000	Acuerdo de 2 años

Proveedores de logística y transporte

Asociaciones de transporte críticas para la distribución de apuntalos:

• Ferrocarril BNSF
• Union Pacific Railroad
• Transporte Trimac

Socio de logística	Volumen de transporte anual	Costo por tonelada
Ferrocarril BNSF	2.5 millones de toneladas	$ 15.50/tonelada
Union Pacific Railroad	1.8 millones de toneladas	$ 16.25/tonelada

Proveedores de equipos de minería y procesamiento de arena

Asociaciones de la cadena de suministro de equipos:

• Metso outotec
• Flsmidth
• 911 metalurgista

Proveedor de equipos	Tipo de equipo	Inversión anual
Metso outotec	Maquinaria de procesamiento de arena	$ 7.2 millones
Flsmidth	Equipo de detección y clasificación	$ 5.6 millones

Smart Sand, Inc. (SND) - Modelo de negocio: actividades clave

Producción de arena industrial de alta pureza

Smart Sand, Inc. opera tres minas de arena ubicadas en Wisconsin con una capacidad de producción total de 3,1 millones de toneladas de arena industrial de alta pureza anualmente. Las minas de la compañía están estratégicamente posicionadas en la región del Medio Oeste.

Ubicación	Capacidad de producción anual	Tipo de arena
Oakdale, Wisconsin	1.1 millones de toneladas	Arena industrial de alta pureza
Maiden Rock, Wisconsin	1.0 millones de toneladas	Arena industrial de alta pureza
Menomonie, Wisconsin	1.0 millones de toneladas	Arena industrial de alta pureza

Procesamiento de arena y control de calidad

La Compañía emplea técnicas de procesamiento avanzado para garantizar materiales de apuntalamiento de alta calidad.

• Capacidades de procesamiento en seco
• Capacidades de procesamiento húmedo
• Control de distribución del tamaño de partícula
• Prueba de resistencia a la reducción

Logística y distribución de materiales de apuntalamiento

Smart Sand, Inc. utiliza múltiples métodos de transporte para una distribución de apuntalamiento eficiente:

Método de transporte	Porcentaje de distribución
Transporte ferroviario	65%
Transporte de camiones	35%

Soporte técnico y consulta del cliente

La compañía ofrece servicios integrales de soporte técnico a clientes de la industria del petróleo y el gas, que incluyen:

• Consulta en el sitio
• Recomendaciones de optimización de rendimiento
• Capacitación técnica
• Análisis de compatibilidad del producto

A partir de 2023, Smart Sand, Inc. sirve a más de 50 clientes activos en el sector de petróleo y gas, con un enfoque en aplicaciones de fracturación hidráulica.

Smart Sand, Inc. (SND) - Modelo de negocio: recursos clave

Minas de arena especializadas

Smart Sand, Inc. opera minas de arena en dos ubicaciones principales:

Ubicación	Capacidad mía	Producción anual
Oakdale, Wisconsin	2.3 millones de toneladas	1.8 millones de toneladas
Lamesa, Texas	3.5 millones de toneladas	2.5 millones de toneladas

Instalaciones de procesamiento y detección

Smart Sand mantiene la infraestructura de procesamiento avanzado con las siguientes capacidades:

• Capacidad total de procesamiento de 5,8 millones de toneladas por año
• Equipo de detección de última generación
• Múltiples líneas de procesamiento húmedo y seco

Experiencia técnica

Categoría de experiencia	Personal especializado
Ingeniería geológica	12 especialistas
Procesamiento de arena	25 expertos técnicos
Gestión logística	18 profesionales

Infraestructura de transporte y logística

Los recursos logísticos de Smart Sand incluyen:

• 20 vagones dedicados
• 12 camiones propiedad de la compañía
• Asociaciones estratégicas con proveedores de transporte

Recursos financieros

Métrica financiera	Valor 2023
Activos totales	$ 251.4 millones
Propiedad, planta, equipo	$ 189.6 millones
Capital de explotación	$ 37.2 millones

Smart Sand, Inc. (SND) - Modelo de negocio: propuestas de valor

Arena blanca del norte de alta calidad de alta calidad para fracking

Smart Sand, Inc. produce arena blanca del norte con las siguientes especificaciones:

Especificación	Valor
Resistencia al triturador	7,500-8,500 psi
Esfericidad	0.7-0.8
Redondez	0.6-0.7
Contenido de sílice	99.6%

Rendimiento constante del producto en la extracción de petróleo y gas

Métricas de rendimiento clave para las soluciones de apuntalamiento de Smart Sand:

• Retención de conductividad al 70% después del estrés de cierre de 10,000 psi
• Generación mínima de multas (menos del 1%)
• Distribución de tamaño de partícula uniforme

Cadena de suministro de arena confiable y eficiente

Capacidades de la cadena de suministro de Smart Sand:

Métrico	Valor
Capacidad de producción anual	3.4 millones de toneladas
Capacidad de almacenamiento	1.2 millones de toneladas
Red logística	3 instalaciones de carga dedicadas

Soluciones de apuntalamiento personalizadas para operaciones de perforación

Líneas especializadas de productos de apuntalamiento:

• Prima inteligente: Proppant de alta resistencia para entornos de presión extrema
• Seleccione inteligente: Purpante de nivel medio para condiciones de perforación estándar
• Estándar inteligente: Solución rentable para aplicaciones menos exigentes

Smart Sand, Inc. (SND) - Modelo de negocios: relaciones con los clientes

Acuerdos contractuales a largo plazo con compañías energéticas

A partir del cuarto trimestre de 2023, Smart Sand, Inc. mantuvo aproximadamente 37 contratos de suministro de apropiación a largo plazo con compañías de exploración de petróleo y gas. La duración promedio del contrato fue de 2.3 años, con un valor total del contrato estimado en $ 78.4 millones.

Tipo de contrato	Número de contratos	Duración promedio	Valor total del contrato
Suministro de apuntalamiento a largo plazo	37	2.3 años	$ 78.4 millones

Consulta técnica y soporte de productos

Smart Sand brinda soporte técnico dedicado a través de un equipo especializado de 12 consultores técnicos. La compañía ofrece:

• Evaluaciones técnicas en el sitio
• Desarrollo de soluciones de apuntalamiento personalizado
• Consultoría de optimización de rendimiento
• Línea directa de soporte técnico 24/7

Gestión de cuentas dedicada

La compañía emplea a 8 gerentes de cuentas a tiempo completo que atienden a clientes clave en el sector energético. La tasa promedio de retención del cliente fue del 86.5% en 2023.

Métricas de gestión de cuentas	Valor
Número de gerentes de cuentas	8
Tasa de retención de clientes	86.5%

Equipo de servicio al cliente receptivo

Smart Sand mantiene un Equipo de servicio al cliente de 15 profesionales. Las métricas de rendimiento clave incluyen:

• Tiempo de respuesta promedio: 2.1 horas
• Calificación de satisfacción del cliente: 4.7/5
• Interacciones anuales de servicio al cliente: 3,200

Smart Sand, Inc. (SND) - Modelo de negocio: canales

Equipo de ventas directo dirigido a las compañías de petróleo y gas

El equipo de ventas directas de Smart Sand se centra en las siguientes métricas clave:

Métrica del equipo de ventas	2023 datos
Número de representantes de ventas dedicados	12
Ventas anuales promedio por representante	$ 3.2 millones
Cobertura total de ventas directas	Regiones Permian, Eagle Ford y Williston Basin

Ferias y conferencias comerciales de la industria

La participación de la conferencia de Smart Sand incluye:

• Conferencia técnica anual de la Sociedad de Ingenieros de Petróleo (SPE)
• Conferencia de tecnología de recursos no convencionales
• North American Prospect Expo (NAPA)

Métrico de conferencia	2023 datos
Gastos anuales de ferias comerciales	$425,000
Número de conferencias a las que asistió	7
Peques estimados generados	143

Información de productos en línea y plataformas de pedidos

Métricas de rendimiento del canal digital:

Métrica de plataforma en línea	2023 datos
Sitio web Visitantes mensuales únicos	8,742
Solicitudes de cotización en línea	276
Tasa de conversión de plataforma digital	3.7%

Redes de asociación estratégica

Composición de red de asociación:

• Socios de logística midstream
• Proveedores de servicios de fractura hidráulica
• Empresas regionales de exploración de petróleo y gas

Métrico de asociación	2023 datos
Asociaciones estratégicas activas	18
Ingresos impulsados ​​por la asociación	$ 22.6 millones
Duración promedio de la asociación	3.2 años

Smart Sand, Inc. (SND) - Modelo de negocio: segmentos de clientes

Empresas de fracturación hidráulica

Smart Sand, Inc. atiende a las principales empresas de fracturación hidráulica con productos especializados de arena frac. A partir de 2022, la base de clientes de la compañía incluía:

Tipo de cliente	Número de clientes activos	Volumen anual de arena (toneladas)
Empresas de fracturación hidráulica de primer nivel	7	2.3 millones
Empresas de fracturación hidráulica de nivel medio	12	1.5 millones

Empresas de exploración de petróleo y gas en tierra

Los segmentos clave del mercado para Smart Sand incluyen empresas de exploración en tierra con una importante huella operativa:

• Operadores de cuenca del Pérmico
• EAGLE FORD SHALE EXPLORACIÓN
• Empresas de exploración de formación de Bakken

Región	Número de clientes de exploración	Valor anual promedio del contrato
Cuenca del permisa	15	$ 4.2 millones
Eagle Ford Shale	8	$ 3.7 millones

Proveedores de servicios de energía de Midstream

Smart Sand suministra arena FRAC a los proveedores de servicios de energía de Midstream con requisitos específicos:

• Empresas de logística de apuntalamiento
• Especialistas en transporte de arena
• Proveedores de servicios de carga

Categoría de proveedor de servicios	Recuento de clientes	Volumen anual de logística de arena
Empresas de logística de apuntalamiento	6	1.8 millones de toneladas
Compañías de transporte de arena	9	1.2 millones de toneladas

Operaciones de perforación regionales y nacionales

Smart Sand sirve diversas operaciones de perforación en múltiples regiones:

Escala operativa	Número de clientes de perforación	Cobertura geográfica
Compañías regionales de perforación	22	Texas, Nuevo México, Oklahoma
Operaciones nacionales de perforación	5	Presencia de múltiples estados

Smart Sand, Inc. (SND) - Modelo de negocio: Estructura de costos

Gastos de minería y extracción de arena

A partir de 2023, Smart Sand, Inc. reportó gastos de extracción y extracción de arena total de $ 46.3 millones. El desglose de estos gastos incluye:

Categoría de gastos	Monto ($)
Arrendamiento de tierras y regalías	12,500,000
Operación de equipo	18,700,000
Costos laborales	9,800,000
Cumplimiento ambiental	5,300,000

Costos de procesamiento y transporte

Los costos de transporte y procesamiento de Smart Sand en 2023 totalizaron $ 37.6 millones, con los siguientes componentes clave:

• Logística y transporte: $ 22,100,000
• Instalaciones de procesamiento de arena: $ 10,500,000
• Mantenimiento de combustible y equipo: $ 5,000,000

Mantenimiento y actualizaciones del equipo

Smart Sand invirtió $ 15.2 millones en mantenimiento y actualizaciones de equipos durante 2023:

Categoría de mantenimiento	Monto ($)
Mantenimiento de rutina	8,700,000
Reemplazo de equipos	4,500,000
Actualizaciones tecnológicas	2,000,000

Inversiones de investigación y desarrollo

Los gastos de I + D para Smart Sand en 2023 ascendieron a $ 6.8 millones, centrados en:

• Mejora de la tecnología de apuntalamiento: $ 3,500,000
• Investigación de eficiencia del proceso: $ 2,100,000
• Desarrollo de nuevos productos: $ 1,200,000

Estructura de costos totales para 2023: $ 105.9 millones

Smart Sand, Inc. (SND) - Modelo de negocios: flujos de ingresos

Ventas de arena para fracturación hidráulica

En 2023, Smart Sand, Inc. reportó ingresos totales de $ 131.9 millones, con ventas de apropiadas que representan la fuente de ingresos primario. La compañía vendió 3,4 millones de toneladas de apuntalamiento durante el año fiscal.

Categoría de ingresos	Cantidad de 2023	Porcentaje de ingresos totales
Ventas de apuntalamiento	$ 131.9 millones	92.5%
Otros servicios	$ 10.6 millones	7.5%

Modelos de precios basados ​​en volumen

Smart Sand utiliza estrategias de precios escalonadas basadas en compromisos de volumen de clientes de petróleo y gas.

• El precio varía de $ 30 a $ 45 por tonelada
• Los descuentos de volumen solicitan compras superiores a 500,000 toneladas anuales
• El precio del mercado spot fluctúa con la demanda del mercado

Contratos de suministro a largo plazo

A partir de 2023, Smart Sand mantuvo 5 Contratos de suministro a largo plazo activos con grandes empresas de exploración de petróleo y gas.

Duración del contrato	Compromiso anual	Valor estimado del contrato
3-5 años	1-2 millones de toneladas	$ 45- $ 90 millones por contrato

Precios premium para apuntalos de alta calidad

Smart Sand's Premium Northern White Sand ordena una prima de precio de $ 3- $ 5 por tonelada en comparación con los productos de arena regionales estándar.

• Premium Sand Precision: $ 38- $ 50 por tonelada
• Cuota de mercado para productos premium: 22% de las ventas totales
• Margen bruto para productos premium: 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.