US Silica Holdings Inc. (SLCA)

Seamus Sullivan

The Company

Recommendation: Buy Price Target - $30.04

Current Price 20.23

52-week range $28.50 – 8.73

Shares outstanding 53MM

Market Cap 1,235.2M

P/E (2013) 15.75

EV/EBITDA (2013) 8X

US Silica Holdings “SLCA” is the second largest domestic producer of commercial silica, a specialized

mineral that is a critical input into a variety of end markets. In SLCA’s largest end market, oil and gas

proppants, their frac sand is used to stimulate and maintain the flow of hydrocarbons in horizontally drilled oil

and natural gas wells.

SLCA sales are primarily a function of the price per ton realized and the volumes sold. In some instances,

their sales also include a charge for transportation services, which they provide to customers.

Company Profile

• Founded 113 years ago

• IPO January 2012

• Headquarters: Frederick, MD

• Bryan A. Shinn, CEO

• Operate 15 facilities across the United States and control

307 million tons of reserves

• ~785 employees, ~ 50% unionized

• Sector: Industrial Minerals Supplier

Over 250 products and 1,800 customers

• Oil & Gas Proppants: Frac sand

• Industrial & Specialty: Glass, coatings, found

15 facilities and over 100 years of history

• Flagship Ottawa site home of ‘Ottawa White’

307 million tons of high quality reserves

7.2 million tons sold in FY 2012

FY 2012 Revenues of $441.9MM

Two operating segments

• Oil & Gas Proppants

– Drivers:

• Industrial & Specialty Products (ISP)

– Glass, Chemical, Foundry, Building Products, Fillers & Extenders, Recreation,

Industry Filtration & Treatment, Testing & Analysis

– Drivers:

• Housing and automotive markets: glass, building materials, foundry and fillers and extenders

• SLCA anticipates launching into the water treatment market later this year. They

expect to generate at least $10MM in incremental EBITDA from new industrial

products by 2015

Company Profile

Horizontal Rig Count

Wells per Rig

Lateral Length

Stages per Lateral

Proppant Per Stage

RCS Phase 1

• First quarter of 2013, SLCA’s new resin-coated sand facility became fully operational

• Capacity: 200,000 tons

• Client testing/evaluation underway

• Complete facility expected to resin coat up to 400 million pounds of sand annually and will significantly

expand addressable oil and gas proppant market

During the second half of 2012 SLCA expanded with a Greenfield Mine and construction of a production

facility near Sparta, Wisconsin. Producing high quality northern white sand

Sparta Phase I

• Capacity: 850,000 tons

• This was completed at the end of Q1 (ahead of schedule)

• 70% or greater of this product is already contracted out

Sparta Phase II

• Capacity: 850,000 tons

• Due to market demand, the Board authorized the acceleration of the construction and commissioning

of Sparta Phase II

• SLCA expects the new facility will increase their annual production by 1,700,000 tons when fully

operational

Once this expansion fully comes online later this year, SLCA’s total annual frac sand capacity will be

approximately 4.6MM tons, more than a 50% increase versus 2012

Catalysts

• Further expansion of their storage network

• Goal of 25 to 30 transloads online by the end of 2013

– Every transload they add expands their addressable in-basin market by putting them

within driving distance of additional rigs

• Increase in:

– Stages per well

– Wells per rig

– Lateral length

• The longer the lateral wells and the more stages in a well, the more proppant will be

consumed

– Sand spot prices

• M&A

– Moving up the supply chain with acquisitions in mining, processing,

transloads/logistics, and storage

– Increased Scale

• Domestic proppant producers are expected to experience annual increases in

demand of 8.0% through 2016*

• Dividend increase – Announced quarterly dividend of $0.125 per share (.50 per annually)

Catalysts

* Freedonia report dated October 2012

Increased frac sand demand even with flattish horizontal rig count due

to:

• Rig efficiencies

• Well intensity

Catalysts

Source: IHS, RBC Capital Markets estimates

• Leader in high quality proppants

− White sand, Resin Coated Sand (RCS)

− Large proven reserves of high quality white sand

• Distribution Capabilities

− Superior logistics strategy

− Multi plant network

− Moving up the supply chain with transloads

− Railroad agreements

− Get the proppant to the right pace at the right time

− Flexibility and responsiveness

• Low cost structure

− Expanding services as low-cost provider to all major basins

• Scale

• Strong contribution margin

• Barriers to entry

• Golden Gate Capital owns 77.8%

Strengths

Strengths

Distribution

Canada

SLCA’s sites are strategically located to provide access to all Class I railroads, which

enables them to cost effectively send product to each of the strategic basins in North

America

Transportation Assets

• Railroad access on BNSF, Union Pacific, CN, CP, and CSX

• Barge Access

• 15 in-basin transloads, many of which can be turned on or off to meet demand

• Anticipate 25-30 transloads by end of 2013

Advantages

• Scale

• Reliability

• Flexibility

• Cost effectiveness

SLCA’s supply chain network and logistics capabilities are a valuable competitive

advantage

Distribution

Transload Facility

• 15,000 ton Unit Train Facility in Eagle Ford Basin ($8-10M)

• Has the capacity to put in excess of 500,000 tons per year

• Built in partnership with the BNSF Railroad

• Benefits:

– Reduced cost per ton to deliver (especially to Eagle Ford basin)

– Increased flexibility and responsiveness

San Antonio

Completed Phase I and

accelerated to Phase II

Newly completed unit train

& Transload capable site to

service Eagle Ford

Distribution “..really what our customers are coming to us and talking a lot

about is responsiveness.”1

1: US Silica 2013 Q1 earnings call

Barriers to Entry

Barriers to Entry

Mine/Plant Location Owned/ Leased Area

Proven

Reserves

Probable

Reserves

Combined

Proven

and

Probable

Reserves

2012

Tons

Mined

Primary End

Markets Served

(in acres) (amounts in thousands of tons)

Ottawa, IL

Owned

1,781 owned

74,095

40,801 114,895

3,217

Oil and gas proppants, glass,

chemicals and foundry

Mill Creek, OK

Owned

2,214 owned 15 mineral lease

—

19,276 19,276

1,240

Oil and gas proppants, glass,

foundry and building products

Pacific, MO

Owned

524 owned

16,496

7,994 24,490

598

Oil gas proppants, glass, foundry

and fillers and extenders

Berkeley Springs, WV

Owned

4,435 owned

2,990

— 2,990

414

Glass, building products and fillers

and extenders

Mapleton Depot, PA

Owned/ Leased

1,761 owned 194 mineral lease 98 access Lease

5,315

10,000 15,315

691

Glass and building products

Kosse, TX (1)

Owned

960 owned 118 mineral lease

12,266

— 12,266

409

Glass, building products and fillers

and extenders

Mauricetown, NJ

Owned

1,279 owned

12,669

— 12,669

134

Filtration, foundry and building

products

Columbia, SC

Leased

648 lease 204 owned

5,120

1,680 6,800

400

Glass, building products and fillers

and extenders

Montpelier, VA (2)

Owned

824 owned

—

14,146 14,146

307

Glass and building products

Rockwood, MI (3)

Owned

872 owned

6,563

— 6,563

—

Glass and building products

Jackson, TN

Owned

132 owned

1,250

— 1,250

150

Fiberglass and building products

Dubberly, LA

Owned

356 owned 25 tailings lease

4,462

— 4,462

221

Glass, foundry and building

products

Batesville, AR

Owned

477 owned

—

34,732 34,732

—

—

Hurtsboro, AL

Leased

117 owned 1,108 mineral lease

1,216

— 1,216

185

Foundry and building products

Sparta,WI

Owned

520 owned

33,542

2,740 36,282

358

Oil and gas proppants

Total

175,984

131,369 307,352

8,324

SLCA owns almost all of their facilities

No royalty payments

Financials US Silica Holdings Inc.US Silica Holdings Inc.Discounted Cash Flow Analysis($ in millions, fiscal year ending March 30) Operating Scenario Base

Operating Scenario 1

xMid-Year Convention n Historical Period CAGR CAGR

2009 2010 2011 ('09 - '11) 2012 2013 2014 2015 2016 2017 ('13 - '17)

Sales $191.6 $245.0 $295.6 24.2% $441.9 $530.3 $609.9 $670.8 $731.2 $760.5 11.5%

% growth NA 27.8% 20.7% 49.5% 20.0% 15.0% 10.0% 9.0% 4.0%

COGS 136.2 158.0 181.2 256.5 318.2 347.6 382.4 416.8 433.5

Gross Profit $55.4 $87.0 $114.4 43.7% $185.4 $212.1 $262.2 $288.5 $314.4 $327.0 12.0%

% margin 28.9% 35.5% 38.7% 42.0% 40.0% 43.0% 43.0% 43.0% 43.0%

SG&A 15.2 20.9 35.2 44.7 47.7 54.9 60.4 65.8 68.4

EBITDA $40.2 $66.1 $79.2 40.4% $140.7 $164.4 $207.3 $228.1 $248.6 $258.6 12.9%

% margin 21.0% 27.0% 26.8% 31.8% 31.0% 34.0% 34.0% 34.0% 34.0%

Depreciation & Amortization 17.9 19.3 21.0 25.1 26.5 36.6 47.0 51.2 53.2

EBIT $22.3 $46.8 $58.2 61.5% $115.6 $137.9 $170.8 $181.1 $197.4 $205.3 12.2%

% margin 11.6% 19.1% 19.7% 26.2% 26.0% 28.0% 27.0% 27.0% 27.0%

Taxes 7.8 7.9 11.1 32.3 38.5 47.7 50.6 55.1 57.3

EBIAT $14.5 $38.8 $47.1 80.1% $83.3 $99.4 $123.1 $130.6 $142.3 $148.0 12.2%

Plus: Depreciation & Amortization 17.9 19.3 21.0 25.1 26.5 36.6 47.0 51.2 53.2

Less: Capital Expenditures (13.4) (15.2) (66.7) (105.7) (66.3) (67.1) (67.1) (58.5) (45.6)

Less: Increase in Net Working Capital (50.9) (14.4) (13.9) (15.5) (4.6)

Unlevered Free Cash Flow $8.7 $78.2 $96.6 $119.5 $151.1

WACC 6.3%

Discount Period 3.0% 1.0 2.0 3.0 4.0 5.0

Discount Factor 0.94 0.89 0.83 0.78 0.74

Present Value of Free Cash Flow $8.2 $69.2 $80.5 $93.7 $111.5

Projection Period

Assumptions

Sales (% growth) NA 27.8% 20.7% 49.5% 20.0% 15.0% 10.0% 9.0% 4.0%

COGS (% sales) 71.1% 64.5% 61.3% 58.0% 60.0% 57.0% 57.0% 57.0% 57.0%

SG&A (% sales) 7.9% 8.5% 11.9% 10.1% 9.0% 9.0% 9.0% 9.0% 9.0%

Depreciation & Amortization (% sales) 9.3% 7.9% 7.1% 5.7% 5.0% 6.0% 7.0% 7.0% 7.0%

Capital Expenditures (% sales) 7.0% 6.2% 22.6% 23.9% 12.5% 11.0% 10.0% 8.0% 6.0%

Tax Rate 35.0% 17.0% 19.1% 27.9% 27.9% 27.9% 27.9% 27.9% 27.9%

Working Capital (% sales) 15.2% 15.6% 16.2% 17.0% 17.0%

Enterprise Value Implied Perpetuity Growth Rate

Cumulative Present Value of FCF $363.2 Enterprise Value $1,794.7 Terminal Year Free Cash Flow (2017E) $151.1

Less: Total Debt (368.0) WACC 6.3%

Less: Preferred Securities - Terminal Value $1,939.2

Terminal Year EBITDA (2017E) $258.6 Less: Noncontrolling Interest

Exit Multiple 7.5x Plus: Cash and Cash Equivalents 165.0 Implied Perpetuity Growth Rate 3.0%

Terminal Value $1,939.2

Discount Factor 0.74 Implied Equity Value $1,591.7 Implied EV/EBITDA

Present Value of Terminal Value $1,431.5 Enterprise Value $1,794.7

% of Enterprise Value 79.8% Shares Outstanding 53.0 LTM 3/31/2013 EBITDA 143.1

Enterprise Value $1,794.7 Implied Share Price $30.04 Implied EV/EBITDA 12.5x

Terminal Value

Implied Equity Value and Share Price

• Operating labor costs represent the largest spend category at approximately 12% of

sales

• Fixed costs, specifically Energy costs directly related to the production of products

represented 5% of total sales during each of the three months ended March 31, 2013

and 2012

• Strong Contribution Margin: ability to withstand price fluctuations, pay dividend, make

acquisitions, etc.

– Increased sales due to logistical and supply advantages should positively impact CM

Sales:

Oil and gas proppants $243,765.00 $107,074.00 $69,556.00

Industrial and specialty products 198,156 188,522 175,397

Total sales 441,921 295,596 244,953

Segment contribution margin:

Oil and gas proppants 107.23% 140,070 56.76% 67,590 43,118

Margin (% Sales) 57.46% 63.12% 61.99%

Industrial and specialty products 53,601 53,013 46,031

Margin (% Sales) 27.05% 28.12% 26.24%

Total segment contribution margin 193,671 120,603 89,149

Margin (% Sales) 43.82% 40.80% 36.39%

Years Ended December 31,

2012 2011 2010

Financials

Relative Value

Company EV/EBITDA

2014

NTM

Forward

P/E

LT EPS

Growth Rate

Gross

Margin %

2014

Forward

ROE

SLCA 6.98x 11.90x 27.5% 44.0% 33%

CRR 7.56x 19.19x 12.0% 32.1% 14.1%

Implied Share Price PV of Terminal Value as % of Enterprise Value

Exit Multiple Exit Multiple

22.3 4.0x 4.5x 5.0x 5.5x 6.0x

9.3% 26.07 27.62 29.17 30.71 32.26

9.8% 25.67 27.18 28.69 30.21 31.7210.3% 25.28 26.76 $28.24 29.72 31.20

10.8% 24.90 26.34 27.79 29.24 30.68

11.3% 24.52 25.94 27.35 28.77 30.18

WA

CC

P/EBITDA

SLCA and CRR

Relative Value

• Execution risks

• Reduction in drilling activity

– Fewer horizontal rigs

– Fewer stages

– Reduced lateral well length

• Lower commodity prices

• Oversupply of proppant

• Negative mix shift to lower margin sand such as 100

mesh

• Increased environmental regulations

• Poor sales in their new RSC proppant

Risks

• Low cost/high quality producer

• Superior logistics

• Growth projects

• M&A

– Mining, processing, transloads/logistics, and/or storage

• Increase market share

• Strong Contribution Margin: 44%

• Dividend yield: 2.3%

– Potential increase (motivated by Golden Gate Capital)

• Relative value

– Trading at a discount to peer

• Short squeeze

– 32% Short interest

• Share repurchase program

– ~$10.5MM left of the $25MM initial repurchase program in 2012

Summary

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U.S. Silica Holdings

Close

$30.04 (+48%)

$40.05 (+98%)

$15.00 (-25%)

Risk Reward

Appendix

NWC US Silica Holdings Inc.

Working Capital Projections($ in millions)

Historical Period

2009 2010 2011 2012 2013 2014 2015 2016 2017

Sales $191.6 $245.0 $295.6 $441.9 $530.3 $609.9 $670.8 $731.2 $760.5

Cost of Goods Sold 136.2 158.0 181.2 256.5 318.2 347.6 382.4 416.8 433.5

Current Assets

Accounts Receivable 25.7 29.3 45.3 55.5 71.2 81.9 88.2 96.2 100.0

Inventories 23.3 22.4 29.3 39.8 56.7 66.7 78.6 91.4 95.0

Prepaid Expenses and Other 3.4 3.2 8.6 6.7 10.6 12.2 13.4 14.6 15.2

Total Current Assets $52.4 $54.9 $83.1 $102.0 $138.5 $160.7 $180.2 $202.1 $210.2

Current Liabilities

Accounts Payable 9.8 12.0 36.6 37.3 39.2 40.0 45.0 49.1 52.3

Accrued Liabilities 7.0 9.1 11.5 9.5 8.0 13.4 14.1 16.1 16.0

Other Current Liabilities - - 10.4 25.5 10.6 12.2 12.1 12.4 12.9

Total Current Liabilities $16.8 $21.1 $58.5 $72.3 $57.8 $65.6 $71.2 $77.6 $81.2

Net Working Capital $35.6 $33.8 $24.6 $29.8 $80.7 $95.1 $109.0 $124.5 $129.1

% sales 18.6% 13.8% 8.3% 6.7% 15.2% 15.6% 16.2% 17.0% 17.0%

(Increase) / Decrease in NWC $1.8 $9.2 ($5.1) ($50.9) ($14.4) ($13.9) ($15.5) ($4.6)

Assumptions

Days Sales Outstanding 49.0 43.6 55.9 45.8 49.0 49.0 48.0 48.0 48.0

Days Inventory Held 62.4 51.8 59.0 56.7 65.0 70.0 75.0 80.0 80.0

Prepaids and Other CA (% of sales) 1.8% 1.3% 2.9% 1.5% 2.0% 2.0% 2.0% 2.0% 2.0%

Days Payable Outstanding 26.2 27.8 73.7 53.1 45.0 42.0 43.0 43.0 44.0

Accrued Liabilities (% of sales) 3.7% 3.7% 3.9% 2.1% 1.5% 2.2% 2.1% 2.2% 2.1%

Other Current Liabilities (% of sales) - % - % 3.5% 5.8% 2.0% 2.0% 1.8% 1.7% 1.7%

Projection Period

WACC

US Silica Holdings Inc.

Weighted Average Cost of Capital Analysis($ in millions)

Target Capital Structure Predicted Market Market Debt/ Marginal Unlevered

Debt-to-Total Capitalization 60.0% Company Levered Beta Value of Debt Value of Equity Equity Tax Rate Beta

Equity-to-Total Capitalization 40.0% CARBO Ceramics Inc. (NYSE:CRR) 0.71 $0.00 $1,632.3 - % 35.0% 0.71

Texas Industries Inc. (NYSE:TXI) 1.93 $660.20 $1,891.9 34.9% 35.0% 1.57

-

Cost of Debt -

Cost of Debt 4.8% -

Tax Rate 35.0%

After-tax Cost of Debt 3.1% Mean 1.32 17.4% 0.46

Median 1.32 17.4% -

Cost of Equity

Risk-free Rate 1.8% Mean Target Target

Market Risk Premium 8.0% Unlevered Debt/ Marginal Relevered

Levered Beta 0.90 Beta Equity Tax Rate Beta

Size Premium 2.00% Relevered Beta 0.46 150.0% 35.0% 0.90

Cost of Equity 11.0%

WACC 6.3% 0.1 4.0% 4.5% 5.0% 5.5% 6.0%

32.0% 6.7% 6.8% 6.9% 7.0% 7.1%

42.0% 6.4% 6.5% 6.7% 6.8% 7.0%

52.0% 6.2% 6.3% 6.5% 6.7% 6.8%

62.0% 5.9% 6.1% 6.3% 6.5% 6.7%

72.0% 5.7% 5.9% 6.1% 6.4% 6.6%

Pre-tax Cost of Debt

Deb

t-to

-To

tal

Cap

itali

zati

on

WACC Calculation Comparable Companies Unlevered Beta

ValueCo Relevered Beta

WACC Sensitivity Analysis

Revenue Drivers

SLCA MODEL: Operating Data Drivers

Drivers 2010 2011 2012 2013 2014 2015 2016 2017

Oil & Gas

Volumes:

Raw Tons Sold (000's) 1,522 2,018 2,919 3,656 4,500 4,950 5,247 5,509

(% of Total Propant Sold) 46.9% 50.1% 51.3% 51.8% 52.3%

RCS Tons Sold (000's) 0 0 0 50 195 200 250 259

(% of Total Propant Sold) 0.64% 2.17% 2.07% 2.47% 2.46%

Total Oil & Gas Propants Tons Sold (000's) 1,522 2,018 2,919 3,706 4,695 5,150 5,497 5,768

(% of Total Propant Sold) 25.5% 32.1% 40.7% 47.6% 52.3% 53.4% 54.3% 54.7%

Industrial & Speciatly Products

Tons Sold (000's) 4,443 4,271 4,252 4,082 4,286 4,500 4,635 4,774

(% of Total Propant Sold) 74.5% 67.9% 59.3% 52.4% 47.7% 46.6% 45.7% 45.3%

Total Propant Sold (000's) 5,965 6,289 7,171 7,788 8,981 9,650 10,132 10,543

Raw Frac Sand $

Avg. Relized Price per Raw ton $45.73 $53.07 $83.49 $87.03 $79.96 $81.31 $83.61 $82.02

Avg. Relized Price per RCS ton na na na 318.18$ 218.92$ 268.33$ 233.99$ 232.63$

Avg. Relized Price per ISP ton $39.48 $44.13 $46.61 $48.07 $48.38 $47.70 $50.48 $50.48

Income Statement Income Statement

For the Fiscal Period Ending

12 months

Dec-31-2010

12 months

Dec-31-2011

12 months

Dec-31-2012 2013E 2014E 2015E 2016E 2017E

Currency USD USD USD USD USD USD USD USD

Revenue 245.0 295.6 441.9

Oil & Gas Raw Frac Sand 69.6 107.1 243.7 $318.2 $359.8 $402.5 $438.7 $451.9

(% of total Sales) 28.4% 36.2% 55.1% 60.0% 59.0% 60.0% 60.0% 60.0%

Oil & Gas RCS 0 0 0 $15.9 $42.7 $53.7 $58.5 $60.3

(% of total Sales) 0.0% 0.0% 0.0% 3.0% 7.0% 8.0% 8.0% 8.0%

Industrial & Specialty Products 175.4 188.5 198.2 $196.2 $207.3 $214.7 $234.0 $241.0

(% of total Sales) 71.6% 63.8% 44.8% 37.0% 34.0% 32.0% 32.0% 32.0%

Other Revenue - - - 0 0 0 0 0

Total Revenue 245.0 295.6 441.9 530.3 609.9 670.8 731.2 753.1

Contribution Margin

Oil & Gas 43.1 67.6 140.1 184.5 212.3 241.5 263.2 271.1

(% of Oil & Gas Sales) 62.0% 63.1% 57.5% 58.0% 59.0% 60.0% 60.0% 60.0%

RCS 0.0 0.0 0.0 $4.8 $12.8 $16.1 $18.1 $18.7

(% of RCS Sales) n/a n/a n/a 30.0% 30.0% 30.0% 31.0% 31.0%

Industrial & Sepciatly Products (ISP) 46.0 53.0 53.6 53.0 56.0 58.0 63.2 65.1

(% of ISP Sales) 26.2% 28.1% 27.0% 27.0% 27.0% 27.0% 27.0% 27.0%

Total Contribution Margin 89.1 120.6 193.7 242.3 281.1 315.6 344.5 354.9

(% of Total Sales) 36.4% 40.8% 43.8% 45.7% 46.1% 47.0% 47.1% 47.1%

Cost Of Goods Sold 158.0 181.2 256.5 318

Gross Profit 87.0 114.4 185.4 212.1 262.2 288.5 314.4 323.9

Other COGS (extra from Segment COGS) 2.2 6.2 8.3

Selling General & Admin Exp. 20.9 35.2 44.7 47.7 54.9 60.4 65.8 67.8

R & D Exp. - - -

Depreciation & Amort. 19.3 21.0 25.1 26.5 36.6 47.0 51.2 52.7

Other Operating Expense/(Income) - - -

Other Operating Exp., Total 40.2 56.2 69.8

46.8 58.2 115.6

Operating Income (EBIT) 46.8 58.2 115.6 137.88 170.76 181.13 197.43 203.35

Interest Expense (23.0) (18.4) (13.8) (15.0) (15.4) (15.0) (15.0) (15.0)

Interest and Invest. Income 0.0 0.1 0.2

Net Interest Exp. (23.0) (18.3) (13.6) (15.0) (15.4) (15.0) (15.0) (15.0)

Other Non-Operating Inc. (Exp.) 0.9 1.0 4.4

EBT Excl. Unusual Items 24.7 40.9 106.4 122.9 155.4 166.1 182.4 188.3

Impairment of Goodw ill - - -

Legal Settlements (0.8) 2.6 3.4

Other Unusual Items (10.2) (6.0) - 1.2 1.6 1.7 1.8 1.9

EBT Incl. Unusual Items 13.7 37.4 109.8 121.7 153.8 164.5 180.6 186.5

Income Tax Expense 2.3 7.2 30.7 38.5 47.7 50.6 55.1 56.8

Earnings from Cont. Ops. 11.4 30.3 79.2 83.2 106.1 113.9 125.5 129.7

Earnings of Discontinued Ops. - - -

Extraord. Item & Account. Change - - -

Net Income to Company 11.4 30.3 79.2 83.2 106.1 113.9 125.5 129.7

Minority Int. in Earnings - - -

Net Income 11.4 30.3 79.2 83.2 106.1 113.9 125.5 129.7

Pref. Dividends and Other Adj. - - -

NI to Common Incl Extra Items 11.4 30.3 79.2

NI to Common Excl. Extra Items 11.4 30.3 79.2

Per Share Items

Basic EPS $0.23 $0.61 $1.5 1.57 2.00 2.15 2.37 2.45

Sand

RCS

15 stages

200,000 lbs proppant/stage

3MM pounds or 1,500 tons

1 week complete

2-3 days

Each Stage

Trucks can

carry ~ 25 tons

Railcar can

carry ~ 100 tons

Distribution Example

2013 P/E

SLCA and CRR

• SLCA trading at just

over half CRR P/E ratio

Relative Value

Relative Value

2014 SLCA P/E 9x vs. CRR P/E 15.2x

ROA

SLCA and CRR

Relative Value