Smart Sand, Inc. Announces New Long-Term Proppant Supply Contract

Rhea-AI Summary

Smart Sand, Inc. (NASDAQ: SND) has announced a new multi-year Master Product Purchase Agreement with EQT Production Company, allowing continued supply of frac sand in the Appalachian Basin. This includes a new transloading terminal in southwestern Pennsylvania, expected to be operational by year-end. The agreement, valid for three years, underscores Smart Sand's commitment to sustainable supply and enhanced logistics, aiming to reduce carbon emissions from sand delivery. The company emphasizes the significance of the Appalachian market within its operational strategy.

Positive

• New multi-year Master Product Purchase Agreement with EQT enhances revenue stability.
• Establishment of a new transloading terminal increases operational efficiency.
• Commitment to ESG benefits aligns with market trends towards sustainability.

Negative

• The contract is contingent on the new terminal's completion by year-end 2021.

THE WOODLANDS, Texas, Aug. 02, 2021 (GLOBE NEWSWIRE) -- Smart Sand, Inc. (NASDAQ: SND) (the “Company”) announced today that it has entered into a new multi-year Master Product Purchase Agreement with EQT Production Company, a subsidiary of EQT Corporation (“EQT”).

Under the new agreement, the Company will continue to supply EQT with frac sand in the Appalachian Basin, including at a new transloading terminal in southwestern Pennsylvania that the Company intends to have in service by the end of the year. The agreement has a three-year term, subject to earlier termination if the new transloading terminal is not in service by the end of 2021.

Charles Young, Smart Sand’s Chief Executive Officer, stated, “We are extremely excited to be continuing our long-term relationship with EQT, one of our oldest and most reliable business partners. This new contract demonstrates our continued commitment to provide long-term, sustainable sand supply and logistics solutions to our customers. The Appalachian Basin is a key market for Smart Sand. We continue to work to build out our logistics capabilities, including this new terminal, to offer even greater efficiency to our customers while also providing ESG benefits by reducing trucking mileage and associated carbon emissions related to sand delivery.”

Forward-looking Statements

All statements in this news release other than statements of historical facts are forward-looking statements that contain our Company’s current expectations about our future results.  We have attempted to identify any forward-looking statements by using words such as “expect,” “will,” “estimate,” “believe” and other similar expressions.  Although we believe that the expectations reflected and the assumptions or bases underlying our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct.  Such statements are not guarantees of future performance or events and are subject to known and unknown risks and uncertainties that could cause our actual results, events or financial positions to differ materially from those included within or implied by such forward-looking statements.

Factors that could cause our actual results to differ materially from the results contemplated by such forward-looking statements include, but are not limited to, fluctuations in product demand, regulatory changes, adverse weather conditions, increased fuel prices, higher transportation costs, access to capital, increased competition, continued effects of the global pandemic, changes in economic or political conditions, and such other factors discussed or referenced in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, filed by the Company with the U.S. Securities and Exchange Commission (“SEC”) on March 3, 2021, and in the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2021, filed by the Company with the SEC on May 4, 2021.

You should not place undue reliance on our forward-looking statements. Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, unless required by law.

About Smart Sand

We are a fully integrated frac sand supply and services company, offering complete mine to wellsite proppant logistics, storage and management solutions to our customers. We produce low-cost, high quality Northern White frac sand and offer proppant logistics, storage and management solutions to our customers through our in-basin transloading terminal and our SmartSystems™ wellsite proppant storage capabilities. We provide our products and services primarily to oil and natural gas exploration and production companies and oilfield service companies. We own and operate premium frac sand mines and related processing facilities in Wisconsin and Illinois, which have access to three Class I rail lines, allowing us to deliver products substantially anywhere in the United States and Canada. For more information, please visit www.smartsand.com.

Investor Contacts

Josh Jayne
Director of Finance, Assistant Treasurer
(281) 231-2660
jjayne@smartsand.com

Lee Beckelman
Chief Financial Officer
(281) 231-2660
lbeckelman@smartsand.com

FAQ

What is the significance of the new contract for Smart Sand (SND)?

The new contract ensures revenue stability and a continued partnership with EQT.

When will the new transloading terminal for Smart Sand (SND) be operational?

The new transloading terminal is expected to be operational by the end of 2021.

How long is the new agreement between Smart Sand (SND) and EQT?

The agreement has a term of three years.

What are the ESG benefits mentioned in Smart Sand's (SND) press release?

The ESG benefits relate to reduced trucking mileage and associated carbon emissions from sand delivery.