Frac sand supplier — Northern White sand for hydraulic fracturing. Three mines (WI, IL), five transload terminals, SmartSystems wellsite storage. 10M tons annual capacity. 95% frac sand, 5% industrial. | AGI Score: 5/10 | P/TB: 0.61x | Analysis date: 2026-03-13
Trading at 0.61x book value. Frac sand is essential for oil/gas production (no substitute). AGI data center buildout drives natural gas demand, which drives drilling, which drives frac sand demand. Physical mines = irreplaceable assets.
Frac sand supplier — Northern White sand for hydraulic fracturing. Three mines (WI, IL), five transload terminals, SmartSystems wellsite storage. 10M tons annual capacity. 95% frac sand, 5% industrial.
Sector: Frac Sand / Oil Services | Employees: 318
Category: Minimal Impact
AGI presents mixed outlook. Near-term demand boost from AI data center power requirements driving natural gas drilling and LNG exports. However, innovation risk is high: AGI could accelerate development of alternative energy sources (fusion, advanced solar, geothermal) that reduce fossil fuel demand over 5-10 year horizon. Physical sand deposits and rail infrastructure provide some moat, but the asset becomes stranded if energy transition accelerates. Automation improves mining and logistics margins modestly. The 5-year AGI assumption creates tension between near-term gas demand and medium-term disruption.
AI/data center power demand → more natural gas drilling → more frac sand needed. 0.61x book = buying mines at 61 cents on the dollar. Northern White sand is premium quality. 10M ton capacity = scale advantage. If nat gas demand surges, SND is a leveraged play.
Frac sand is a commodity — price competition is fierce. In-basin sand (Permian) competes with Northern White. Energy transition could reduce long-term oil/gas drilling. Small company with lumpy demand tied to drilling activity. Innovation risk: AGI could accelerate alternative energy.
| Metric | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $29M | $43M | $52M | $48M | $25M | $127M | $256M | $296M | $311M | $330M |
| Net Income | $12M | $11M | $-4M | $2M | $-3M | $-51M | $-703K | $5M | $3M | $1M |
| Operating Income | $20M | $19M | $26M | $43M | $-13M | $-63M | $-3M | $-2M | $3M | $-4M |
| Operating Cash Flow | — | — | $51M | $45M | $26M | $32M | $5M | $31M | $18M | $44M |
| CapEx | $3M | $51M | $96M | $26M | $9M | $11M | $13M | $23M | $7M | $12M |
| Total Assets | $173M | $247M | $320M | $362M | $428M | $374M | $360M | $346M | $342M | $340M |
| Stockholders Equity | $142M | $190M | $209M | $244M | $289M | $241M | $243M | $242M | $244M | $240M |
| Shares Outstanding | 30,952,000 | 40,393,000 | 40,427,000 | 40,135,000 | 40,260,000 | 41,775,000 | 42,408,000 | 38,948,000 | 38,809,000 | 39,049,000 |
| Free Cash Flow* | — | — | $-45M | $19M | $17M | $21M | $-7M | $8M | $11M | $33M |
| Share Count Change | — | +30.5% | +0.1% | -0.7% | +0.3% | +3.8% | +1.5% | -8.2% | -0.4% | +0.6% |
*FCF = Operating Cash Flow - CapEx
| Balance Sheet Item | Latest FY |
|---|---|
| Total Assets | $340M |
| PP&E (net) | $223M |
| Cash & Equivalents | $23M |
| Goodwill | $0 |
| Intangible Assets | $4M |
| Total Liabilities | $340M |
| Long-Term Debt | $9M |
| Stockholders Equity | $240M |
| Tangible Book Value | $235M |
Goodwill: None reported — no goodwill on books = tangible book IS book value (good)
Intangible Assets: $4M
PP&E: $223M — physical assets that could be liquidated
Tangible Book Value: $235M ($6.04 per share)
| Metric | Value | Notes |
|---|---|---|
| Book Value / Share | $6.15 | Stockholders equity / shares |
| Tangible Book Value / Share | $6.04 | Equity minus goodwill & intangibles |
| Price / Revenue | 0.45x | Market cap / TTM revenue |
| OCF Yield | 29.9% | Operating cash flow / market cap |
| FCF Yield | 22.9% | Free cash flow / market cap |
| Floor Price Estimate (60% TBV) | $3.63 | Conservative: 60% of tangible book value per share |
Tangible Book Value per share: $6.04
Conservative Floor (60% of TBV): $3.63 — At this price, you are buying hard assets at 60 cents on the dollar with margin of safety.
Current price $3.72 is below tangible book value ($6.04).
ITEM 1. — BUSINESS The Company We are a fully integrated frac and industrial sand supply and services company. We offer complete mine to wellsite proppant supply and logistics solutions to our frac sand customers. We produce low-cost, high quality Northern White sand, which is a premium sand used as a proppant to enhance hydrocarbon recovery rates in the hydraulic fracturing of oil and natural gas wells and for a variety of industrial applications. We also offer proppant logistics solutions to our customers through our in-basin transloading terminals and our SmartSystems TM wellsite proppant storage capabilities. In recent years, we have expanded our product line to offer Industrial Products Solutions (“IPS”) in order to diversify our customer base and markets we serve by offering sand for industrial uses. We market our products and services to oil and natural gas exploration and production companies, oilfield service companies and diversified industrial and commercial customers. We believe that, among other things, the size and favorable geologic characteristics of our sand reserves, the strategic location and logistical advantages of our facilities, our proprietary SmartDepot TM portable wellsite proppant storage silos, our proprietary SmartPath ® wellsite proppant management system, SmartBelt TM conveyor system, access to all Class I rail lines, and the industry experience of our senior management team make us as a highly attractive provider of sand and logistics ser
ITEM 7. — MANAGEMENT’S DISCUSSION AND ANALYSIS FINANCIAL CONDITION AND RESULTS OF OPERATIONS Forward-Looking Statements The following discussion and analysis of our financial condition and results of operations should be read together with Item 1, “Business,” and Item 8, "Financial Statements and Supplementary Data,” of this Annual Report on Form 10-K. This discussion contains forward-looking statements as a result of many factors, including those set forth under Item 1, “Business—Forward-Looking Statements” and Item 1A, “Risk Factors,” and elsewhere in this report. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially from those discussed in or implied by forward-looking statements. Factors that could cause or contribute to these differences include those discussed below and elsewhere in this report, particularly in Item 1A, “Risk Factors.” We use contribution margin, EBITDA, Adjusted EBITDA and free cash flow herein as non-GAAP measures of our financial performance. For further discussion of contribution margin, EBITDA, Adjusted EBITDA and free cash flow, see the section entitled “Non-GAAP Financial Measures” in this Item 7 of this Annual Report on Form 10-K. We define various terms to simplify the presentation of information in this Report. All share amounts are presented in thousands. Factors Affecting Comparability of Our Financial Results Our historical results of op
What assets exist? PP&E of $223M. Total assets of $340M Tangible book value of $235M. No goodwill — clean balance sheet.
Are buybacks real? No significant buybacks reported.
Is the business durable? Frac Sand / Oil Services with AGI score 5/10. Low AGI disruption risk — physical business that AGI does not easily replace.
What is the floor? At $3.63 (60% of TBV), downside is limited by hard assets. Current price $3.72 is above the floor estimate.
Data sources: SEC EDGAR XBRL, yfinance, 10-K filing extracts, AGI scoring framework. Analysis date: 2026-03-13.