Investor Presentaiton
The Value of Northern White Sand (continued)
Midland Operator B: Upfront cost savings from in-basin sand wiped out in all cases.
after one year
Cumulative free cash flow (CFCF) differences by commodity price scanario
USD
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
-$500,000
Upfront cost savings
■Low Base High
12 months
24 months
36* months
⚫ Operator saved -$316,000 upfront in switching from NWS to in-basin sand.
Operator lost-$551,000, -$820,000 and -$1 million under low, base and high cases, respectively, by the end of year 1 in using in-basin sand.
Operator lost -$1 million, ~$1.4 million and -$1.8 million under low, base and high cases, respectively, by the end of year 2 with in-basin sand.
•
*Estimated as not all wells in the set have 36 months production history Low = $70/bbl and $5/MMBtu -- Base = $90/bbl and $7/MMBtu - High = $110/bbl and $9/MMBtu
Source: Rystad Energy research and analysis
14
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