Smart Sand, Inc. Wins Favorable Verdict in Dispute With U.S. Well Services, LLC
Smart Sand, Inc. (NASDAQ: SND) won a court ruling against U.S. Well Services, LLC for breaching a multi-year contract involving frac sand supply. The Superior Court of Delaware found that U.S. Well failed to purchase the required tonnages, leading to Smart Sand claiming damages of approximately $54 million. U.S. Well initially denied the claims but abandoned its counterclaims after the trial. The court directed final judgment in favor of Smart Sand, expected to be available by late June 2021. CEO Charles Young expressed satisfaction with the ruling and plans to maximize recovery.
- Court ruled in favor of Smart Sand regarding a $54 million damages claim.
- U.S. Well's counterclaims were abandoned, reinforcing Smart Sand's position.
- None.
THE WOODLANDS, Texas, June 04, 2021 (GLOBE NEWSWIRE) -- Smart Sand, Inc. (NASDAQ: SND) (the “Company” or “Smart Sand”) announced today that the Superior Court of the State of Delaware (the “Court”) issued a verdict in favor of Smart Sand in its lawsuit against U.S. Well Services, LLC (“U.S. Well”), a subsidiary of U.S. Well Services, Inc., following the trial that took place in December 2020. In the case, Smart Sand alleged, along with certain other related claims, that U.S. Well breached a multi-year contract under which Smart Sand supplied frac sand to U.S. Well, and claimed total damages of approximately
The Court ruled that U.S. Well breached the long-term take-or-pay Master Product Purchase Agreement between the Company and U.S. Well by failing to purchase minimum required tonnages of frac sand. The Court directed the parties to submit a form of final judgment in favor of Smart Sand and against U.S. Well, which we expect will become publicly available by the end of June 2021.
Charles Young, the Chief Executive Officer of the Company, commented, "We are extremely pleased with the Court’s ruling that U.S. Well breached the PPA we negotiated together.” Young added that, “while we did not seek this fight, we battled to successfully vindicate our contractual rights once U.S. Well stopped performing its end of the bargain and then refused to pay us for amounts due under our agreement. We will continue to pursue our rights to maximize our recovery under this verdict.”
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.
Contact:
Josh Jayne
Phone: (281) 231-2660
Email: jjayne@smartsand.com
Lee Beckelman
Phone: (281) 231-2660
E-mail: lbeckelman@smartsand.com
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