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Similarly, we provide high-quality products, strong technical leadership and applications knowledge to end users in the foundry, building products, water filtration, glass, and sports and recreation markets. Our company’s global logistics capabilities include a wide-ranging network of distribution terminals and more than 8,500 railcars that allow the company to effectively serve customers wherever they operate. As one of the nation’s longest continuously operating mining organizations, Fairmount Santrol has developed a strong commitment to sustainable development, environmental stewardship, and operational safety. Correspondingly, our motto and action orientation is: “Do good. Do well.” 2013 OPERATIONAL HIGHLIGHTS $988 million Revenues 798 million Tons of proven mineral reserves Fairmount Santrol (NYSE: FMSA) is one of the largest providers of high-performance sand and sand-based products used by oil and gas exploration and production companies to enhance the productivity of their wells. Employees worldwide as of June 30, 2014 1,100+ 12.3 million Tons of annual sand-processing capacity 2.4 million Tons of annual coating capacity Company Overview 370,000 Trees planted by company volunteers since 2007 to offset Tier I and Tier II carbon emissions Completed initial public offering of common stock in October 2014 FMSA OCTOBER 2014
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Page 1: Company Overviews2.q4cdn.com/301159931/files/doc_downloads/... · 9/29/2014  · largest providers of high-performance sand and sand-based products used by oil and gas exploration

Similarly, we provide high-quality products, strong technical leadership

and applications knowledge to end users in the foundry, building

products, water filtration, glass, and sports and recreation markets. Our

company’s global logistics capabilities include a wide-ranging network of

distribution terminals and more than 8,500 railcars that allow the company

to effectively serve customers wherever they operate. As one of the

nation’s longest continuously operating mining organizations, Fairmount

Santrol has developed a strong commitment to sustainable development,

environmental stewardship, and operational safety. Correspondingly, our

motto and action orientation is: “Do good. Do well.”

2013 OPERATIONAL HIGHLIGHTS

$988 millionRevenues

798 millionTons of proven mineral reserves

Fairmount Santrol (NYSE: FMSA) is one of the largest providers of high-performance sand and sand-based products used by oil and gas exploration and production companies to enhance the productivity of their wells.

Employees worldwide as of June 30, 2014

1,100+

12.3 million Tons of annual sand-processing capacity

2.4 million Tons of annual coating capacity

CompanyOverview

370,000Trees planted by company

volunteers since 2007 to offset Tier I and Tier II carbon emissions

Completed initial public offering of common stock in October 2014

FMSA

OCTOBER 2014

Page 2: Company Overviews2.q4cdn.com/301159931/files/doc_downloads/... · 9/29/2014  · largest providers of high-performance sand and sand-based products used by oil and gas exploration

Canada

Green River Basin/Uinta

Powder River

Bakken

DJ/Niobrara

Piceance

Mid-Continent

Permian

Barnett

East Texas/Haynesville

Eagle Ford

UticaMarcellus

One of the world’s largest providers of sand-based proppant solutions to the growing hydraulic fracturing industry• Supplier of resin-coated proppants and raw frac sand that

are critical to the industry

• Broad suite of products addresses more than 90% of the proppant market

Focus on innovation and new product development• Leader in resin-coated proppant technology

• Innovative solutions for customers investing in value-added proppants for performance advantages and as a cost-efficient alternative to ceramics

• Self-suspending proppant (SSP) technology promotes improved hydraulic fracturing efficiency

Long-term, trusted partner to our customers• Majority of our proppant volumes are sold under long-

term supply agreements

• Long-term relationships with the four largest U.S. pressure pumping companies

• Customer relationships – some of which date back more than 30 years – driven by our ability to enhance our customers’ operations and profitability

Industry’s largest captive terminal network and broadest logistics capabilities• Network includes approximately 50 terminals, of which

more than 30 exclusively handle our products, a rapidly expanding fleet of more than 8,500 railcars, and unit train capabilities at three production facilities and three in-basin terminals

• Capable of deliveries to each of North America’s major oil and gas producing basins

• Integrated logistics and onsite or nearby rail allow for cost-effective product delivery

Socially and environmentally responsible corporate citizen• We believe that when a company commits to contributing

to the world’s social, economic, and environmental needs, it can realize greater performance in all aspects of its business

Multiple pillars for continued growth• Compelling industry trends

• Increasing reserves and processing capacity

• Expanding our industry-leading logistics network

• Increasing market penetration

• Developing and commercializing high-performance proprietary products

• Continuing our long-standing commitment to sustainable development

• Barriers of entry favor us as the incumbent

History of superior financial results • Revenues increased at a compound annual growth rate

of approximately 19% and 25% since 2004 and 2009, respectively

• Solid margins and free cash flow

• Prudent level of leverage with flexibility to pursue additional strategic growth opportunities

• Superior return on capital

Experienced management team aligned with stockholders• Tenure of our executive management averages more than

20 years

Oil & Gas Terminals

Industrial & Recreational Terminals

Unit Train Destination

Basin

Play

OUR STRENGTHS

TERMINAL AND LOGISTICS NETWORK

Page 3: Company Overviews2.q4cdn.com/301159931/files/doc_downloads/... · 9/29/2014  · largest providers of high-performance sand and sand-based products used by oil and gas exploration

Canada

Green River Basin/Uinta

Powder River

Bakken

DJ/Niobrara

Piceance

Mid-Continent

Permian

Barnett

East Texas/Haynesville

Eagle Ford

UticaMarcellus

PRODUCTS

• API-spec raw frac sand• Resin-coated proppants• Self-suspending proppant technology• Activators• Water-soluble ball sealers

PRODUCTS

• High-purity silica sand• Resin and coated products• Custom mixing and blending

KEY INNOVATIONS

• PowerProp™ precured resin-coated proppant, which is similar to lightweight ceramic

• Proprietary coating processes• OptiProp® curable resin-coated proppant• CoolSet™ curable resin-coated proppant• Propel SSP™ proppant transport technology

MARKETS

• North America oil and gas• International oil and gas

PRODUCT USE

• Our proppants “prop” open fissures during the hydraulic fracturing of oil and gas wells, increasing hydrocarbon production

• Resin coating further increases the proppant value proposition to the customer with increased conductivity and proppant flowback prevention

DEMAND DRIVERS

• Hydraulic fracturing activity• Well completion designs, including per

well proppant usage

KEY INNOVATIONS

• Signature Series• Signature Series GOLD• SpectraQuartz® colored quartz• Prevent™ Dust Suppressant

MARKETS

• Foundry, glassmaking, building products, sports and recreation, water filtration

PRODUCT USE

• Various grades of silica sand and coated products used in industrial processes, including: » foundry molds and core-making applications » sports turf, golf bunkers, sand volleyball courts,

equestrian arenas » glass manufacturing » roofing shingles, pipe lining » floor aggregates, concrete counters

DEMAND DRIVERS

• Macroeconomic factors, such as housing starts, light vehicle sales, repair and remodel activity, and industrial production

DUAL COAT TECHNOLOGY

ENCAPSULATED CURABLE PROPPANT

BIOBALLS POWERPROP™ COOLSET LTNA™ SELF-SUSPENDING PROPPANT

KEY FAIRMOUNT SANTROL PRODUCT INNOVATIONS

1995 1997 2006 2010 2014 2014

Dual-coat, curable resin-

coated sand for enhanced

conductivity and flowback

control

High-performance resin-coated

proppant used in flowback

control

Water-soluble and

environmentally safe ball

sealers that do not require

retrieval after treatment

Resin-coated sand with

characteristics similar to a

light-weight ceramic

Resin coating that cures

at low temperature

without requiring

chemical activators

Allows any type of proppant to transport

farther into the fracture, increasing

fracture length, improving productivity,

and eliminating need for additives

Proppant Solutions

Industrial & Recreational Products

Page 4: Company Overviews2.q4cdn.com/301159931/files/doc_downloads/... · 9/29/2014  · largest providers of high-performance sand and sand-based products used by oil and gas exploration

fairmountsantrol.com

8834 Mayfield Rd

Chesterland, OH 44026

440.214.3200

SUSTAINABLE DEVELOPMENT

Success through Commitment to People, Planet, and ProsperityOur motto and action orientation – “Do good. Do well.” – is reflected in

our Mission Statement:

“We, the Fairmount Santrol family, are united in our commitment

to exceed all expectations while fulfilling our economic, social and

environmental responsibilities.”

As it has since 2005, Fairmount Santrol fully embraces the concepts of

sustainable development and Appreciative Inquiry. This enables us to

dream and design a collective future grounded in a shared commitment

to People, Planet, and Prosperity – the three pillars of sustainability.

Every business decision we make strives to nourish a stronger, more

prosperous future for our company and the communities in which we live.

In addition, through our SD Pays initiative, we measure the efficiencies

and savings we have generated through our sustainability efforts.

In acknowledgment of our SD commitment, we’ve received regional

business awards, recognition from the U.S. Chamber of Commerce, and

the Business Civic Leadership Center’s Corporate Citizenship Award.

ACHIEVEMENTS

Since 2008, our employees have demonstrated our commitment to our communities by donating approximately 42,000 hours of company-paid volunteer time.

We also donated $3.1 million to the communities where we live and work in 2013.

The company has saved more than $6 million since 2008 by diverting 1.2 million pounds of bulk bags from landfill disposal.

Illustrating our commitment to safety, our lost-time incident rate is less than half the industry average.

By mid-2014, 11 facilities attained zero waste to landfill.

The employee-run program focused on investment in human capital has delivered over 2,414 trainings since 2012.


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