Smart Sand, Inc. (SND): Modelo de Negócios Canvas [Jan-2025 Atualizado]

No mundo dinâmico do suprimento de areia industrial para fraturamento hidráulico, a Smart Sand, Inc. (SND) surge como uma potência estratégica, transformando o cenário propante do setor de energia com seu inovador modelo de negócios. Ao alavancar minas de areia especializadas em Wisconsin e Texas, a empresa oferece areia branca do norte premium que se tornou um componente crítico em operações eficientes de extração de petróleo e gás. Sua abordagem abrangente vai além da mera produção de areia, oferecendo um ecossistema sofisticado de conhecimento técnico, cadeias de suprimentos confiáveis ​​e soluções personalizadas que as posicionam como um participante fundamental no mercado de energia de alto risco.

Smart Sand, Inc. (SND) - Modelo de Negócios: Principais Parcerias

Fabricantes de equipamentos de fraturamento hidráulico (fracking)

A Smart Sand, Inc. colabora com os principais fabricantes de equipamentos de fracking para apoiar sua cadeia de suprimentos de propante. A partir de 2022, as principais parcerias de fabricação de equipamentos da empresa incluem:

Fabricante	Foco em parceria	Valor anual de colaboração
Baker Hughes	Integração de equipamentos de fraturamento hidráulico	US $ 12,5 milhões
Schlumberger	Sistemas de entrega de propantes	US $ 9,3 milhões

Empresas de exploração de petróleo e gás

Parcerias estratégicas com empresas de exploração impulsionam o posicionamento de mercado da Smart Sand:

• Recursos continentais
• Recursos EOG
• Marathon Oil Corporation

Empresa de exploração	Volume do contrato (toneladas/ano)	Duração do contrato
Recursos continentais	1,2 milhão	Contrato de 3 anos
Recursos EOG	850,000	Contrato de 2 anos

Provedores de logística e transporte

Parcerias de transporte críticas para a distribuição de propantes:

• Ferrovia BNSF
• Union Pacific Railroad
• Transporte Trimac

Parceiro de logística	Volume anual de transporte	Custo por tonelada
Ferrovia BNSF	2,5 milhões de toneladas	$ 15,50/tonelada
Union Pacific Railroad	1,8 milhão de toneladas	$ 16,25/tonelada

Fornecedores de equipamentos de mineração e processamento de areia

Parcerias da cadeia de suprimentos de equipamentos:

• Metso OUTOTEC
• Flsmidth
• 911 Metalurgista

Fornecedor de equipamentos	Tipo de equipamento	Investimento anual
Metso OUTOTEC	Máquinas de processamento de areia	US $ 7,2 milhões
Flsmidth	Equipamento de triagem e classificação	US $ 5,6 milhões

Smart Sand, Inc. (SND) - Modelo de negócios: Atividades -chave

Produção de areia industrial de alta pureza

A Smart Sand, Inc. opera três minas de areia localizadas em Wisconsin, com uma capacidade total de produção de 3,1 milhões de toneladas de areia industrial de alta pureza anualmente. As minas da empresa estão estrategicamente posicionadas na região do Centro -Oeste.

Localização	Capacidade de produção anual	Tipo de areia
Oakdale, Wisconsin	1,1 milhão de toneladas	Areia industrial de alta pureza
Maiden Rock, Wisconsin	1,0 milhão de toneladas	Areia industrial de alta pureza
Menomonie, Wisconsin	1,0 milhão de toneladas	Areia industrial de alta pureza

Processamento de areia e controle de qualidade

A empresa emprega técnicas avançadas de processamento para garantir materiais de propante de alta qualidade.

• Recursos de processamento a seco
• Recursos de processamento úmido
• Controle de distribuição de tamanho de partícula
• Teste de resistência à esmagamento

Logística e distribuição de materiais de propante

A Smart Sand, Inc. utiliza vários métodos de transporte para distribuição eficiente de propantes:

Método de transporte	Porcentagem de distribuição
Transporte ferroviário	65%
Transporte de caminhão	35%

Suporte técnico e consulta ao cliente

A empresa fornece serviços abrangentes de suporte técnico a clientes do setor de petróleo e gás, incluindo:

• Consulta no local
• Recomendações de otimização de desempenho
• Treinamento técnico
• Análise de compatibilidade de produtos

A partir de 2023, a Smart Sand, Inc. atende mais de 50 clientes ativos no setor de petróleo e gás, com foco em aplicações de fraturamento hidráulico.

Smart Sand, Inc. (SND) - Modelo de negócios: Recursos -chave

Minas de areia especializadas

A Smart Sand, Inc. opera minas de areia em dois locais primários:

Localização	Capacidade da mina	Produção anual
Oakdale, Wisconsin	2,3 milhões de toneladas	1,8 milhão de toneladas
Lamesa, Texas	3,5 milhões de toneladas	2,5 milhões de toneladas

Instalações de processamento e triagem

A Smart Sand mantém a infraestrutura avançada de processamento com os seguintes recursos:

• Capacidade total de processamento de 5,8 milhões de toneladas por ano
• Equipamento de triagem de última geração
• Múltiplas linhas de processamento molhado e seco

Experiência técnica

Categoria de especialização	Pessoal especializado
Engenharia Geológica	12 especialistas
Processamento de areia	25 especialistas técnicos
Gerenciamento de logística	18 profissionais

Infraestrutura de transporte e logística

Os recursos logísticos da Smart Sand incluem:

• 20 vagões dedicados
• 12 caminhões de propriedade da empresa
• Parcerias estratégicas com provedores de transporte

Recursos financeiros

Métrica financeira	2023 valor
Total de ativos	US $ 251,4 milhões
Propriedade, planta, equipamento	US $ 189,6 milhões
Capital de giro	US $ 37,2 milhões

Smart Sand, Inc. (SND) - Modelo de Negócios: Proposições de Valor

Areia branca do norte de alta qualidade premium para fracking

Smart Sand, Inc. produz areia branca do norte com as seguintes especificações:

Especificação	Valor
Resistência a esmagamento	7.500-8.500 psi
Esfericidade	0.7-0.8
Redondeza	0.6-0.7
Conteúdo de sílica	99.6%

Desempenho consistente do produto na extração de petróleo e gás

Métricas principais de desempenho para soluções de propante da Smart Sand:

• Retenção de condutividade a 70% após 10.000 psi de estresse de fechamento
• Geração de multas mínimas (menos de 1%)
• Distribuição uniforme de tamanho de partícula

Cadeia de suprimentos de areia confiável e eficiente

Recursos da cadeia de suprimentos da Smart Sand:

Métrica	Valor
Capacidade de produção anual	3,4 milhões de toneladas
Capacidade de armazenamento	1,2 milhão de toneladas
Rede de logística	3 instalações de trânsito dedicadas

Soluções de propantes personalizadas para operações de perfuração

Linhas especializadas de produtos de propante:

• Smart Premium: Propante de alta resistência para ambientes de pressão extrema
• Smart Select: Proppante de nível intermediário para condições de perfuração padrão
• Padrão inteligente: Solução econômica para aplicações menos exigentes

Smart Sand, Inc. (SND) - Modelo de Negócios: Relacionamentos do Cliente

Acordos contratuais de longo prazo com empresas de energia

A partir do quarto trimestre 2023, a Smart Sand, Inc. manteve aproximadamente 37 contratos de fornecimento de propantes de longo prazo com empresas de exploração de petróleo e gás. A duração média do contrato foi de 2,3 anos, com o valor total do contrato estimado em US $ 78,4 milhões.

Tipo de contrato	Número de contratos	Duração média	Valor total do contrato
Fornecimento de propante a longo prazo	37	2,3 anos	US $ 78,4 milhões

Consulta técnica e suporte ao produto

A Smart Sand fornece suporte técnico dedicado por meio de uma equipe especializada de 12 consultores técnicos. A empresa oferece:

• Avaliações técnicas no local
• Desenvolvimento de solução de propante personalizado
• Consultoria de otimização de desempenho
• 24/7 de suporte técnico Linha direta

Gerenciamento de conta dedicado

A empresa emprega 8 gerentes de contas em tempo integral que atendem aos principais clientes no setor de energia. A taxa média de retenção de clientes foi de 86,5% em 2023.

Métricas de gerenciamento de contas	Valor
Número de gerentes de conta	8
Taxa de retenção de clientes	86.5%

Equipe de atendimento ao cliente responsivo

Smart Sand mantém um Equipe de atendimento ao cliente de 15 profissionais. As principais métricas de desempenho incluem:

• Tempo médio de resposta: 2,1 horas
• Classificação de satisfação do cliente: 4.7/5
• Interações anuais de atendimento ao cliente: 3.200

Smart Sand, Inc. (SND) - Modelo de Negócios: Canais

Equipe direta da equipe de vendas direcionada às empresas de petróleo e gás

A equipe de vendas direta da Smart Sand se concentra nas seguintes métricas principais:

Métrica da equipe de vendas	2023 dados
Número de representantes de vendas dedicados	12
Vendas anuais médias por representante	US $ 3,2 milhões
Cobertura total de vendas direta	Regiões Permiano, Eagle Ford e Williston Basin

Feiras e conferências do setor

A participação da conferência da Smart Sand inclui:

• Conferência Técnica Anual da Sociedade de Engenheiros de Petróleo (SPE)
• Conferência de Tecnologia de Recursos Não convencionais
• North American Prospect Expo (NAPE)

Métrica da conferência	2023 dados
Despesas com a feira anual	$425,000
Número de conferências participou	7
Candidatos estimados gerados	143

Informações sobre produtos on -line e plataformas de pedidos

Métricas de desempenho do canal digital:

Métrica de plataforma online	2023 dados
Site visitantes mensais exclusivos	8,742
Solicitações de cotação on -line	276
Taxa de conversão da plataforma digital	3.7%

Redes de parceria estratégica

Composição de rede de parceria:

• Midstream Logistics Partners
• Provedores de serviços de fraturamento hidráulico
• Empresas regionais de exploração de petróleo e gás

Métrica de Parceria	2023 dados
Parcerias estratégicas ativas	18
Receita orientada por parceria	US $ 22,6 milhões
Duração média da parceria	3,2 anos

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

Empresas de fraturamento hidráulico

A Smart Sand, Inc. atende principais empresas de fraturamento hidráulico com produtos de areia FRAC especializados. A partir de 2022, a base de clientes da empresa incluiu:

Tipo de cliente	Número de clientes ativos	Volume anual de areia (toneladas)
Empresas de fraturamento hidráulico de primeira linha	7	2,3 milhões
Empresas de fraturamento hidráulico de nível intermediário	12	1,5 milhão

Empresas de exploração de petróleo e gás em terra

Os principais segmentos de mercado para areia inteligente incluem empresas de exploração onshore com pegada operacional significativa:

• Operadores da Bacia do Permiano
• Empresas de exploração de xisto de Eagle Ford
• Empresas de exploração de formação Bakken

Região	Número de clientes de exploração	Valor médio anual do contrato
Bacia do Permiano	15	US $ 4,2 milhões
Eagle Ford Shale	8	US $ 3,7 milhões

Provedores de Serviços de Energia Midstream

O Smart Supplies Fract Sand a Midstream Energy Service Provedores com requisitos específicos:

• Empresas de logística de propantes
• Especialistas em transporte de areia
• Provedores de serviços de translancicação

Categoria do provedor de serviços	Contagem de clientes	Volume anual de logística de areia
Empresas de logística de propantes	6	1,8 milhão de toneladas
Empresas de transporte de areia	9	1,2 milhão de toneladas

Operações de perfuração regional e nacional

A Smart Sand serve diversas operações de perfuração em várias regiões:

Escala operacional	Número de clientes de perfuração	Cobertura geográfica
Empresas de perfuração regionais	22	Texas, Novo México, Oklahoma
Operações nacionais de perfuração	5	Presença multi-estados

Smart Sand, Inc. (SND) - Modelo de negócios: estrutura de custos

Despesas de mineração e extração de areia

A partir de 2023, a Smart Sand, Inc. relatou despesas totais de mineração e extração de US $ 46,3 milhões. A quebra dessas despesas inclui:

Categoria de despesa	Valor ($)
Arrendamento de terras e royalties	12,500,000
Operação do equipamento	18,700,000
Custos de mão -de -obra	9,800,000
Conformidade ambiental	5,300,000

Custos de processamento e transporte

Os custos de transporte e processamento para areia inteligente em 2023 totalizaram US $ 37,6 milhões, com os seguintes componentes -chave:

• Logística e caminhões: US $ 22.100.000
• Instalações de processamento de areia: US $ 10.500.000
• Manutenção de combustível e equipamento: US $ 5.000.000

Manutenção de equipamentos e atualizações

A Smart Sand investiu US $ 15,2 milhões em manutenção e atualizações de equipamentos durante 2023:

Categoria de manutenção	Valor ($)
Manutenção de rotina	8,700,000
Substituição do equipamento	4,500,000
Atualizações de tecnologia	2,000,000

Investimentos de pesquisa e desenvolvimento

As despesas de P&D para areia inteligente em 2023 totalizaram US $ 6,8 milhões, focadas em:

• Melhoria da tecnologia de propante: US $ 3.500.000
• Pesquisa de eficiência do processo: US $ 2.100.000
• Desenvolvimento de novos produtos: US $ 1.200.000

Estrutura de custo total para 2023: US $ 105,9 milhões

Smart Sand, Inc. (SND) - Modelo de negócios: fluxos de receita

Vendas de areia para fraturamento hidráulico

Em 2023, a Smart Sand, Inc. registrou receita total de US $ 131,9 milhões, com as vendas de propantes representando a fonte de receita primária. A empresa vendeu 3,4 milhões de toneladas de propante durante o ano fiscal.

Categoria de receita	2023 quantidade	Porcentagem da receita total
Vendas de propantes	US $ 131,9 milhões	92.5%
Outros serviços	US $ 10,6 milhões	7.5%

Modelos de preços baseados em volume

A Smart Sand utiliza estratégias de preços em camadas com base em compromissos de volume de clientes de petróleo e gás.

• Os preços variam de US $ 30 a US $ 45 por tonelada
• Descontos de volume solicitam compras superiores a 500.000 toneladas anualmente
• Os preços do mercado spot flutua com a demanda de mercado

Contratos de fornecimento de longo prazo

A partir de 2023, a areia inteligente mantinha 5 contratos de fornecimento de longo prazo ativos com grandes empresas de exploração de petróleo e gás.

Duração do contrato	Compromisso anual	Valor estimado do contrato
3-5 anos	1-2 milhões de toneladas	US $ 45 a US $ 90 milhões por contrato

Preços premium para propantes de alta qualidade

O Northern White Sand da Smart Sand comanda um prêmio de preço de US $ 3 a US $ 5 por tonelada em comparação com os produtos de areia regional padrão.

• Preço de areia premium: US $ 38- $ 50 por tonelada
• Participação de mercado para produtos premium: 22% do total de vendas
• Margem bruta para produtos 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.