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Investor Presentation
AUGUST 2017
1
Forward-Looking Statements
This presentation contains forward-looking statements. These statements can be identified by the use of forward-looking terminology
including “will,” “may,” “believe,” “expect,” “anticipate,” “estimate,” “continue,” or other similar words. These statements discuss future
expectations including company growth expectations, demand for our products, expectations regarding future prices, capacity expansion
plans, market trends, liquidity, transportation services, commercial product launches and research and development plans and may contain
projections of financial condition or of results of operations, or state other “forward-looking” information. These forward-looking statements
involve risks and uncertainties. Many of these risks are beyond management’s control. When considering these forward-looking statements,
you should keep in mind the risk factors, Management’s Discussion and Analysis of Financial Condition and Results of Operations, and other
cautionary statements in the company’s SEC filings. Forward-looking statements are not guarantees of future performance or an assurance
that our current assumptions or projections are valid. Our actual results and plans could differ materially from those expressed in any forward-
looking statements. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information or
future events, except as required by law.
This presentation includes certain non-GAAP financial measures, including EBITDA and Adjusted EBITDA. These non-GAAP financial
measures are used as supplemental financial measures by our management to evaluate our operating performance and compare the results
of our operations from period to period without regard to the impact of our financing methods, capital structure or non-operating income and
expenses. Adjusted EBITDA is also used by our lenders to evaluate our compliance with covenants. We believe that these measures are
meaningful to our investors to enhance their understanding of our financial performance. These measures should be considered
supplemental to and not a substitute for financial information prepared in accordance with GAAP and may differ from similarly titled measures
used by other companies. For a reconciliation of such measures to the most directly comparable GAAP term, please see the appendix of this
presentation.
FORWARD-LOOKING INFORMATION
NON-GAAP FINANCIAL MEASURES
2
Two Complementary Business Segments
6.472%
2.528%
2016 VOLUMES(million tons)
Proppant Solutions
Oil & Gas Markets
Resin-Coated Proppants
Propel SSP®
Tier 1 Northern White Sand
Tier 2 Texas Gold Sand
Tier 3 Local Sand
Industrial & Recreational (I&R)
Foundry, Glass, Sports & Recreation, Building and Filtration Markets
Resin-Coated Sand
Custom Blending
High-Purity Sand
Enhanced Resin
Complementary markets throughout business cycles
Complementary products to leverage asset base
Core Differentiators for Long-Term Value Creation
4
Core Differentiators for Long-Term Value CreationFAIRMOUNT SANTROL
Commitment to People, Planet & Prosperity
Technology & Innovation
Broad Product Portfolio
Operational Scale & Efficiencies
Extensive Distribution and Unit Train Capabilities
Core Differentiators for Long-Term Value CreationFAIRMOUNT SANTROL
Propel SSP® – Enhanced Productivity, Operational Efficiency & Flexibility
5
Field Trial Stats
100+ wells
20+ E&Ps
Bakken
Canadian Bakken
DJ
Mississippian Lime
Utica
MarcellusUinta
Permian
Pinedale
Field Trial Areas
Case Study
Eagle Ford
+45%
18 months
TECHNOLOGY & INNOVATION
Strong productivity gains are further enhanced by significant operational efficiencies
Allows service companies to increase utilization of their
resources; important as completion resources tighten
Propel SSP 350® allows for flexibility in water usage,
including brackish and produced water
99.9% pure silica
6
Only Integrated I&R Sand and Resin Solutions Provider BROAD PRODUCT PORTFOLIO – INDUSTRIAL & RECREATIONAL
PRODUCTS/
CHARACTERISTICS
TARGET MARKETS
Construction
Foundries
Glass manufacturing
Golf courses
Colored play sand
Sports turf
Water filtration
+200 engineered sand-
based resin products
Construction
Foundries
Expert custom blends of
minerals, aggregates,
colorants, epoxies and
polymers
Construction
Specialty products
Sports & recreation
HIGH-PURITY SANDSENGINEERED
RESIN-COATED SANDSCUSTOM BLENDINGHIGH-PERFORMANCE
RESIN SYSTEMS
High-quality traditional
foundry resin systems and
proprietary resin
development for advanced
resin-coated proppants
Foundries
Diverse base of over 800 customers contributes to steady dynamics of I&R
7
Products to Address All Well EnvironmentsBROAD PRODUCT PORTFOLIO – PROPPANT SOLUTIONS
High-Purity Northern
White Silica Sands
Tier 2
regional
sand
Precured Resin-
Coated Sand
Highest
strength
Increased
flowback
protection
Curable Resin-
Coated Sand
Highest
flowback
protection
Increased
strength
Texas Gold®
Frac Sand
Tier 1 NWS
99.8% pure silica
Proppant coating that
enhances well productivity and
operational efficiency through
improved proppant transport
and frac geometry optimization
PRODUCTS/
CHARACTERISTICS
APPLICATIONS Lower-cost,
API-certified
sand
applications
High-temperature /
pressure wells where
proppant needs extra
strength & fines
encapsulation
Wells where
flowback is a
challenge
Medium cost,
delivers
higher productivity
versus regional
sands
In any well to optimize
water, chemical and
horsepower required to
place the targeted proppant
volume and mesh size
RAW SAND
Propel SSP®
RESIN-COATED SAND TRANSPORT
TECHNOLOGY
WELL PRESSURE
(Based on 40/70
substrate)
Up to 6,000 psi Up to 9,000 psi Up to 14,000 psi Up to 16,000 psiDependent on
underlying proppant
Tier 3 local
sand
Lowest-cost
option for wells
in Permian basin
Up to 8,000 psi
Regional Frac
Sand
Located in Winkler County, TX (Permian basin) near Kermit
~3,250 acres under lease with reserves of ~165M tons
Fine mesh sand reserves (40/70 and 100 mesh), with ~75% 100 meshPROPERTY
FMSA Kermit – Further Broadening Industry Leading Product OfferingBROAD PRODUCT PORTFOLIO – PROPPANT SOLUTIONS
Kermit low-cost facility further broadens FMSA’s extensive product portfolio
and allows Company to meet growing and changing market demand
Capacity of approximately 3 million annual tons of frac sand
Facility expected to be in operation by beginning of Q2 2018
Manufacturing cost per ton in first quartile of cost curve even with royalty
MINE AND PRODUCTION
FACILITY
Total leasehold interest payments and capex between $100 million to $110
million funded over next 12 months
Royalty structure, which includes water rights, on each ton sold from plant
that will average less than $3 with no minimum royalty
Financing expected to be through cash on hand and/or operating cash flow
FINANCING
Located between both Midland and Delaware basins
Easy access to existing roads
Significant water resources available on site
LOGISTICS
8
9
Broad Asset Base Provides Flexibility and EfficiencyOPERATIONAL SCALE & EFFICIENCIES
Nearly 900 million tons of proven reserves,
allowing for long-term organic growth
Locations, grade mixes and logistic
capabilities provide flexibility to meet changes
in market demand
At full Kermit capacity, 30% of active capacity
will be local/region
When active, low-cost Kermit and Wedron
facilities will represents 2/3 of active frac sand
capacity
Increasing production of 40/70 at Wedron, with
coarser grades supplied by other mines,
highlighting flexibility of footprint
FAIRMOUNT SANTROL STATED ANNUAL
RAW FRAC SAND CAPACITY(in millions of tons)
Northern
White Sand
Mines
Wedron
Menomonie
Maiden Rock
BrewerShakopee
Voca
Kermit
Idled
-
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
Total Stated Capacity
16.9
10
Leveraging Our Unit Train Capabilities
11 unit-train capable terminals
Unit trains can lower delivered cost by $6-$10/ton and increase delivery speed
Unit trains increase rail car turns and overall efficiency of rail car fleet
All excess railcars have been returned to active fleet
EXTENSIVE DISTRIBUTION AND UNIT TRAIN CAPABILITIES
0%
20%
40%
60%
80%
2014 2015 2016 1H 2017
PERCENTAGE OF NORTHERN WHITE SAND SHIPPED VIA UNIT TRAIN
Expansive Footprint in Key Basins Through Facilities and Terminals
Canada
FMSA Terminal
FMSA Mining & Processing
Unit Train Destination
Unit Train Origin (Mining &
Processing)
Coating Operation
New Kermit facility will strengthen
FMSA’s position in Permian basin
for tier 3 local sands
EXTENSIVE DISTRIBUTION AND UNIT TRAIN CAPABILITIES
11
Performance Update
13
Excellent Proppant Solutions Growth in Q2
VOLUMES
2.1
2.6
0.0
0.4
0.8
1.2
1.6
2.0
2.4
2.8
Mill
ion
s
1Q-17
In Millions of Tons
REVENUES
1Q-17
141.0
198.8
$0
$50
$100
$150
$200
Mill
ion
s
In Millions
GROSS PROFIT
1Q-17
27.3
54.4
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
$55
Mill
ion
s
In Millions
Increased volumes, pricing and fixed cost leverage all contributed to sequential
gross profit nearly doubling
2Q-17 2Q-17 2Q-17
+24% +41% +99%
PERFORMANCE UPDATE
PROPPANT SOLUTIONS
14
Strong I&R Results in Q2
VOLUMES
0.66 0.69
0.0
0.2
0.4
0.6
0.8
Mill
ion
s
2Q-16
In Millions of Tons
REVENUES
2Q-16
32.134.4
$0
$5
$10
$15
$20
$25
$30
$35
$40
Mill
ion
s
In Millions
GROSS PROFIT
2Q-16
13.6
15.7
$0
$4
$8
$12
$16
Mill
ion
s
In Millions
Focus on value-added products led to strong year-over-year profitability growth
2Q-17 2Q-17 2Q-17
+4% +7%
+15%
PERFORMANCE UPDATE
INDUSTRIAL & RECREATIONAL
15
Strong Growth in Q2 2017
VOLUMES
2.7
3.3
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
Mill
ion
s
1Q-17
In Millions of Tons
REVENUES
1Q-17
172.6
233.2
$0
$60
$120
$180
$240M
illio
ns
In Millions
GROSS PROFIT
1Q-17
40.8
70.1
$0
$25
$50
$75
Mill
ion
s
In Millions
Pricing improvements and fixed cost leverage in Proppant Solutions and I&R’s
strong value-added results contributed to very strong profitability growth
2Q-17 2Q-17 2Q-17
+22% +35% +72%
PERFORMANCE UPDATE
FMSA TOTAL
ADJUSTED EBITDA
1Q-17
21.7
47.0
$0
$10
$20
$30
$40
$50
Mill
ion
s
2Q-17
+116%
In Millions
Continuing Improvement in Capital Structure
16
Mar. 31, 2017 Jun. 30, 2017
Cash $210.7 $178.5
Debt
2015 B-1 Extended Due Sept. 2019 $117.3 $110.0
B-2 Due Sept. 2019 $717.9 $673.3
Other, net $9.9 $12.8
Total Long Term Debt $845.1 $796.1
Net Debt $634.4 $617.6
Capitalization Summary($ in Millions)
All significant debt matures in Sep. 2019
− Expect to address and extend
these maturities in the coming
quarters
Improved cash flow in 2Q 2017 further
reduces net debt
$50 million term debt prepayment in
June reduces total debt
$20 million leasehold interest payment
for Kermit facility made in early Q3
− Remaining $80M - $90M in
leasehold interest / capex over next
12 months
− Funded by cash on hand and free
cash flow generation
PERFORMANCE UPDATE
FMSA Kermit – Timeline for DeliveryPERFORMANCE UPDATE
Q3 ‘17 Q4 ‘17 Q1 ‘18 Q2 ‘18
Lease and capital expenditures ~$70-75M Lease and capital expenditures ~$30-35M
Total investment = $100M-$110M
Finalized leasehold
agreement
Permits filed
Equipment on order
Customer contracts
finalized
Staffing Plant
Plant Construction
Plant
operational by
beginning of
Q2 2018
Plant expected to be at
full capacity by Q4 ‘18
17
After rising sharply throughout first six months of 2017, rig count growth has moderated so
far in Q3
Future proppant demand growth expected to be driven by higher proppant intensity per well
and completion percentages
2018 market demand forecasted to reach 100 million tons
AVERAGE PROPPANT TONS
PER U.S. HORIZONTAL WELL (2)
LOOKING AHEAD
Positive Tailwinds for the Proppant Market
18
Sources:(1) Baker Hughes(2) FMSA estimates based on public E&P presentations and internal estimates + PacWest Consulting Partners
U.S. HORIZONTAL LAND RIG COUNT (1)
300
400
500
600
700
800
2015 2016 2017 Est.
~ +30%
4,600 -
5,000
5,600 -
6,000
~ +20%
3,600 -
4,000
Permian Market Supply / Demand DynamicsINVESTMENT THESIS
FMSA’s footprint will be well-suited to meet demand for both local/regional sands in the Permian and highest quality Northern White Sand across all basins
Permian basin demand expected to grow
~15-20M tons in 2018 and reach ~45-50M
tons by end of 2018
A number of customers have shown interest
in sourcing fine mesh demand locally
Local Permian supply is largely finer grades
with majority 100 mesh
Estimated ~30-40M tons of in basin Permian
capacity to come on line by the end of 2018
Permian demand will be served concurrently
by new cost-effective Permian capacity (100
mesh in particular) as well as Northern
White and Texas Gold® products
Significant Permian demand for 40/70 as
well as vast majority of coarser grades will
continue to be served cost-effectively by
FMSA’s Northern White or Texas Gold®
Demand for finer grades will grow in other
key basins, which can also be efficiently
served by FMSA’s footprint and logistics
network
As FMSA’s I&R business grows it will
continue to consume more finer grades
particularly 100 mesh
MARKET FACTORS FMSA THESIS
19
20
Financial Outlook
Third-quarter 2017 outlook
Total proppant volumes of 2.6 million to 2.8 million tons
− Proppant Solutions volumes expected to be impacted by lack of available supply for finer grades
− Shakopee expected to be operational late in Q3, but will only add minimal capacity in Q3
Raw frac sand pricing expected to increase $5 to $7 per ton on average
Proppant Solutions cost per ton in Q3 2017 expected to be flat to down slightly
― Improved fixed cost leverage and lower excess rail car costs are expected to offset increased
production costs from Maiden Rock and Brewer
After strong first half of the year, I&R volumes expected to be relatively flat in Q3 versus the prior year
period, but with continued profitability growth due to price increases and focus on value-added products
PERFORMANCE UPDATE
21
Industry Leader Well-Positioned for GrowthWHY INVEST IN FMSA?
Technology & innovation
Broad product portfolio
Operational scale & efficiencies
Distribution & unit train capabilities
Dynamic onshore completions activity
Increased proppant intensity per well
Increased operator focus on long-term
well productivity and flowback mitigation
Continued solid demand in I&R
STRONG MARKET DRIVERSKEY LONG-TERM DIFFERENTIATORS
AND VALUE CREATORS
Commitment to People, Planet & Prosperity
Appendix
23
Appendix: Reconciliation of Non-GAAP Financial Measures
Adjusted EBITDA
Three Months Ended,
(in thousands) Jun. 30, 2017 Mar. 31, 2017
Net income (loss) $10,483 $(11,588)
Interest expense, net 12,983 12,537
Provision (benefit) for income taxes 502 (1,148)
Depreciation, depletion, and amortization expense 19,846 19,442
EBITDA $43,832 $19,243
Non-cash stock compensation expense 2,763 2,416
Write-off of deferred financing costs 389 0
Adjusted EBITDA $46,984 $21,659
24
Appendix: Strategic Kermit Location to Serve All of Permian Basin
Oil & Gas Terminals
Unit Train Destination
FMSA Mining & Processing
Well Site
New FMSA Kermit facility is well-
positioned to serve both the
Delaware and Midland basins
Delaware Basin Midland Basin