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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 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
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
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
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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