Scotia Howard Weil
43rd Annual Energy Conference
Jenniffer Deckard, President and Chief Executive Officer
Christopher Nagel, Chief Financial Officer
March 24, 2015
Forward Looking Statements and Non-GAAP Financial Measures
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, capacity expansion plans, market trends, 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, Adjusted EBITDA and Adjusted EPS. 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 slides 25 and 26 of this
presentation.
1
2014 Volumes by Segment
Oil & Gas – Proppant Solutions Product Lines Include:

Northern White Frac Sand

Texas Gold Frac Sand (mined in Voca, TX)

Resin-Coated Frac Sand

Self-Suspending Proppant Technology, Propel SSP
Industrial & Recreational End Markets Include:
 Foundry
Product Lines Include:
 Glass
• High-Purity Silica Sand
 Building Products
• Custom-Blended Materials
 Sports and Recreation
• Resin-Coated Sand
 Specialty Products
Water

2
Leading Solutions Provider Differentiated in Every Area of the Value Chain
COMMITMENT TO
SUSTAINABLE
DEVELOPMENT
OPERATIONAL
SCALE



People
Planet
Prosperity


808 million tons of proven mineral reserves
11 sand processing facilities with more than 13.4 million tons of annual sand
processing capacity
11 coating facilities with annual capacity of 2.7 million tons

Industry-leading integrated logistics network – 52 distribution terminals with
over 9,000 rail cars
 Unit train capabilities at 3 production facilities and 3 in-basin terminals

DISTRIBUTION
TECHNOLOGY AND
INNOVATION


State-of-the-art R&D and resin manufacturing facilities
Patented product and process technologies
PRODUCT PORTFOLIO


Broad and innovative product suite addressing ~ 95% of the proppant market
API-qualified sand
3
We Are Built on a Foundation of Sustainable Development
PEOPLE
 Conducted four enterprise-wide
Appreciative Inquiry Summits with
>1,300 stakeholders
 Contributed ~ 20,000 hours of
volunteer time in 2014.
 Safety record Lost Time Incident
Rate (LTIR) at ~ ½ sand industry
average
PLANET
 18 Zero Waste Facilities
 Reduced 90% of waste sent to
landfills since 2009
 SD Pays: Validated savings of
>$4.2MM in 2014
 Saved >$6MM by diverting 1.2MM
lbs. of bulk bags from landfill since
2008
 Planted ~406k trees since 2007, to
offset GHG emissions, while
 Prosperity for external stakeholders
consistently working to improve
— $3.9M invested back into
energy efficiency
communities in 2014
_____________________
Source: Company website and corporate filings
PROSPERITY
4
Leading Capacity Positions in the Largest Proppant Categories
#2 POSITION IN RAW FRAC SAND CAPACITY
#1 POSITION IN RESIN-COATED SAND CAPACITY
2014 CAPACITY (MM TONS)
2014 CAPACITY (MM TONS)
16.0
3.0
14.0
2.5
12.0
2.0
10.0
8.0
1.5
6.0
1.0
4.0
0.5
2.0
0.0
0.0
Peers
___________________________
Source: Peers – PropTester 2014 Proppant Market Report published February 23, 2015; FMSA – internal company data
5
The Industry’s Largest Operations and Distribution Footprint
Comprehensive Logistics Platform and Vertically Integrated Operations with Access to Every Major U.S. Oil & Gas Basin
International
Manufacturing Footprint
Operations
Mining & Processing (11)
Coating Operations (11)
Research & Development (2)
Resin Manufacturing (1)
Specialty Products (4)
Logistics Network
Oil & Gas Terminals (42)
Industrial & Recreational
Terminals (10)
Unit Train Destination (3)
2 Terminals in the same city
Basin
6
Play
Our Product Portfolio Addresses ~ 95% of the Proppant Market
2014 PROPPANT MARKET SHARE (%) (1)
CERAMICS (4%) (3)
FMSA VOLUME MIX (2)
RAW FRAC SAND (89%)
RESIN-COATED SAND (7%)
Raw Frac Sand
~80%
Resin-Coated Sand
(Including PowerProp®) (3)
~20%
___________________________
1.
Based on FMSA internal market product consumption by weight data
2.
Breakdown of FMSA volume mix is based on Proppant Solutions segment only for 2014 and excludes Industrial & Recreational volumes
3.
Fairmount Santrol’s PowerProp product competes with lightweight ceramics offered by competitors up to 12,000 psi
7
Unique Position in Coated Products with Barriers to Entry

TECHNICAL
RELATIONSHIPS
RAW FRAC
SAND SUPPLY
CAPTIVE RESIN
SUPPLY AND
NEW
DEVELOPMENT
INTEGRATED
DISTRIBUTION
NETWORK
Pioneered development of resin coating in 1976
Proprietary new products involve patented IP, especially at
high end of the market
History of innovation

Process to gain customer acceptance is lengthy and
technical, but critical
Market to E&Ps to pull through demand

Fully integrated captive sand source

– Secures supply
– Reduces cost


Resin manufacturing allows FMSA to create and protect
unique formulations
98% of resin-coated product is sold through in-basin
terminals
Competitor capacity (in million tons) based on PropTester 2013 Proppant Market Report published February 14, 2014
8
Captive
Sand Source
Captive Resin
Manufacturing








0.3


0.2


2.7
1.5
0.8
0.4
___________________________
1.
Resin-Coating
Capacity (1)
Peers
PATENTED
TECHNOLOGIES


Suite of Product Solutions for Well Environment Complexity
FAIRMOUNT SANTROL PROPPANTS VS. CLOSURE PRESSURE (1)
ADDED VALUE
Eliminate
Flowback?
HyperpropC
PowerPropP
OptiProp G2C
THSP
Super DCC
CoolsetC
Super LCC
TLCP
API-Spec Northern White Frac Sand
Texas Gold API-Spec Frac Sand
0
1
2
Raw Sand
3
4
5
Resin-Coated Sand
6
7
8
9
Closure Pressure (000s psi)
10
11
12
13
14
15
Resin-Coated Ceramic
_____________________
C = curable product; P = pre-cured
1.
Pressure performance data are specific to 20/40 mesh. TLC, THS and PowerProp provide a degree of proppant flowback resistance. SLC, SDC, OptiProp specifically
address proppant flowback prevention.
Recommended range for each product based on optimal crush, conductivity, and price tradeoffs.
9
Reduce
Fines?
Embedment?
Acceleration of Horizontal Proppant Demand Continues
and Will Offset Some of the Impact of Rig Declines
Robust Proppant Demand Driven by Multiplier Effect
Proppant
Demand
Wells per Rig
10.0
Proppant Per Well (000 Tons)
6.5
Lateral Length
Stages per Foot
2.5 2.7
6.0
3.6
1.3 1.7
Eagle Ford
4.4
3.5 3.9
2.7
Permian
2012
2013
Marcellus
2014
Leading-Edge Experimental
Avg. Leading-Edge Operators
Proppant per Stage
___________________________
Source: Internal estimates and order flow analysis
Eagle Ford: Illustrative of both liquids rich and dry gas portion
Permian: Illustrative of Wolfcamp C & D, and Cline Shale
Marcellus: Illustrative of both dry gas in PA and liquids rich portion in WV PacWest Consulting Partners (wells drilled and proppant per well), The Freedonia
Group (total proppant demand)
10
5.5
Current Market Environment: Rig Count Declines
Average drilling rig counts have already declined by ~40% from Q4 2014
Active rigs
Average number of rigs for quarter
1,779
1,852
1,903
1,912
2015 forecasts @ $55 WTI
-38%
1,500
1,192
1,023
Citi
1Q-14
2Q-14
3Q-14
4Q-14
@ 1,000-Rig Decline (~50%)
Proppant Decline (~20% - 25%)
1Q-15
Today
1,076
Spears
*
10%
0%
-10%
-20%
-30%
-40%
-50%
-60%
Rig Count
11
Proppant Market
1,250
1,346
Stephens
Raymond
James
1,552
Morgan
Stanley
Current Market Environment: Reducing Customer Costs per BOE
Premium API Spec Sand
Expansive Logistics Network
FMSA Well Positioned to
Reduce Customer Costs
per Barrel of Oil Equivalent (BOE)
and Gain Share
Technology Portfolio
Operating Scale to Enable
Vendor Consolidation
12
100% of FMSA Sand Meets API and Customer Specifications
CAPACITY BY TIER (1)
KEY FRAC SAND - API REQUIREMENTS
100.0
Tier 1 and Tier 2 sand fall within API and
customer specifications for:
 Crush
90.0
Percent of Capacity
80.0
70.0
 Roundness
60.0
50.0
Tier 3
40.0
30.0
Market
FMSA
 Acid Solubility
Tier 2
 Purity
Tier 1
 Size Distribution
20.0
10.0
 Sphericity
 Turbidity
Source: Peers – PropTester 2014 Proppant Market Report published February 23, 2015
(1) The PropTester 2014 Proppant Market Report published February 23, 2015 combined Tier 2 and 3 capacity. FMSA applied its own factor to segregate Tiers 2 and 3
based on its industry expertise and anecdotal evidence.
13
Expansive Logistics Network Lowers Proppant Cost for our Customers
Unit
Trains,
Barges
42+
Terminals
14 Origins
42+
Terminals
Reduced
Last-Mile
Trucking
Costs
Optimized
Cost InBasin
Lower Cost
per BOE
Curable Resin-Coated Sand Further Lowers Production Cost per BOE
Lower Cost
per BOE
NPV of Increased Production from Less Downtime
$ 14,000
NPV of Lower Material Cost
$100,000
NPV of Fewer Workovers (Well Failures)
$ 21,000
Subtotal, NPV per Well
$135,000
Less Resin Cost
- $ 20,000
Overall Net Present Value of RCP, per stage
$115,000
est. NPV for large, STX Well with 500,000 lbs. proppant per stage;
25-stage Horizontal Well
$2,875,000 per well NPV
(Relative Only to Cost of Flowback)
FAIRMOUNT SANTROL CONFIDENTIAL – DO NOT SHARE WITHOUT PERMISSION
15
Propel SSP Lowers Production Cost per Barrel of Oil Equivalent (BOE)
Lower Cost
per BOE
Fewer
Chemicals
Reduced
Spend
700,000
40%
600,000
35%
30%
500,000
25%
400,000
20%
300,000
Production Months
15%
200,000
10%
100,000
-
Replacing
Gel
Systems
Minimized
Formation
Damage
Increased
Contact
Area and
Conductivity
Higher IP
& EUR
Propel SSP (3
wells)
Offset (3 wells)
% Increase
5%
1
2
3
4
5
77,810
155,797
231,075
299,750
362,264
74,878
4%
137,136
14%
186,692
24%
234,899
28%
277,021
31%
FAIRMOUNT SANTROL CONFIDENTIAL – DO NOT SHARE WITHOUT PERMISSION
16
0%
% Increase
Less
Water
Cumulative Production (BOE)
No Fluid
Sweep
Utica: 6-Well Study
Scale and Flexibility to Facilitate Vendor Consolidation
ACHIEVABLE = PERMITS + RAIL CARS + TERMINAL CAPACITY
MM TONS
12.9
RAW FRAC SAND
PROCESSING
9.9
3.0
Q1 2015
(WEDRON + BREWER READFIELD)
POTENTIAL
(WEDRON)
8.8
2.8
2009
SEPT 2014
___________________________
1.
Refers to the facility expansion that is expected to occur
17
FUTURE
200MM+
RESERVES
Under Active
Development
0.0
EXPLORATION &
DEVELOPMENT
We Have a Long and Sustained History of Trusted Partnership with Our Customers
LONG-TERM CUSTOMER PARTNERSHIPS
STRONG, DIVERSE AND BALANCED CUSTOMER BASE
Selected Direct Customers
 Serving the major Oil Field Service
companies since the late 1970s
 Through multiple industry cycles
 Unique ability to partner with our customers
as their needs change over time
– Ability to fulfill “just-in-time” requirements
– Adjust to shifting products and geographies
 Long-term collaboration with both OFSs and
E&Ps on their total proppant-related needs,
including product development
 Contract structures designed to foster
partnerships and withstand market cyclicality
18
Selected Shared Ultimate Customers
Strong 2014 Financial Performance
2014 RESULTS
$ IN THOUSANDS, EXCEPT PER SHARE DATA
2014
2013
% Change
Proppant Volume (tons)
7,188
5,117
40%
Revenue
$1,356.5
$988.4
37%
EBITDA
$368.1
$248.9
48%
Adj. EBITDA
$397.3
$292.6
36%
Diluted EPS
$1.02
$0.63
62%
Adj. Diluted EPS
$1.07
$0.75
43%
Capital Expenditure
$143.5
$111.5
29%
19
Strong Cash Flow Supports Current Capital Structure

Committed to a strong and stable
capitalization profile
– Cash flow generation exceeds
capital expenditures and debt
service
– Maintain revolver flexibility to
pursue growth opportunities and
acquisitions

Superior return on invested capital
$MM, UNLESS OTHERWISE NOTED
Cash and Cash Equivalents
Debt (net of original issue discount)
Revolving Credit Facility
Term Loan B-1
Term Loan B-2
Other Debt, Including Capital Leases
Total Long-Term Debt, Including Current Portions
Net Debt
LTM Adjusted EBITDA
Debt / LTM Adjusted EBITDA
– Commitment to return metrics for
all capital investments
Net Debt/LTM Adjusted EBITDA
Liquidity
Cash
Revolver Capacity
– Maintenance Cap Ex $25MM to
$30MM per year
Total Liquidity
20
2014
$76.9
2013
1.0
319.9
42.8
322.7
910.9
878.6
20.8
18.1
$1,252.6
1,175.8
$397.3
3.15x
$1262.2
1,244.4
$292.6
4.31x
2.96x
4.25x
76.9
113.5
17.8
21.2
$190.4
$39.0
Short-Term Fairmount Santrol Strategic Initiatives
 Reduce costs and maximize our efficiencies and effectiveness in our raw and
value-added coated products supply chain
 Continue to be the most cost-effective solutions provider for our customers
 Fully commercialize new product technologies
– Propel SSP, CoolSet and other new products in 2015 as appropriate
 Maintain focus on liquidity and balance sheet
– Reduce our net debt position and improve our liquidity positions by managing
working capital and capital expenditures while investing prudently to be in a
strong position for recovery
21
We Have a Long History of Managing Through Industry Cycles
While Successfully Investing for Growth
REVENUE
1890s: Fairmount Santrol’s
predecessor companies begin
operations
($MM)
$1,400
$1,200
$1,000
1976: Pioneered the first resincoated proppant
1978: First sand plant, Best Sand,
acquired by FMSA investors
$800
$600
$400
1980s: Partnered with Halliburton
and Baker Hughes to invest in largescale proppant production
$200
$0
1994
1998
2002
2006
2014 ROIC ~ 19%
22
2010
2014
The Leading, Fully Integrated Proppant Solutions Producer
Leading Proppant Producer; Broadest Product Suite
Industry’s Largest Captive Terminal Footprint and Broadest Logistics Capabilities
Focus on Innovation and New Product Development
Trusted Partner to Our Customers
Commitment to Sustainability
23
Questions & Answers
24
Reconciliation of Non-GAAP Financial Measures
25
Reconciliation of Non-GAAP Financial Measures
26