Smart Sand CFO: Northern White Frac Sand Demand Rising as Longer Laterals Boost Volumes, FCF Near $30M

Smart Sand's business is centered on mining, producing, transporting, and selling Northern White frac sand, with the bulk of volumes tied to oil and gas producers.

Apr. 1, 2026 at 8:13pm

Got story updates? Submit your updates here. ›

Smart Sand NASDAQ: SND Chief Financial Officer Lee Beckelman said the company's business is centered on mining, producing, transporting, and selling Northern White frac sand, with the bulk of volumes tied to oil and gas producers. Beckelman described Smart Sand as 'as much of a logistics company as a mining company,' emphasizing that the company's value proposition combines sand quality with efficient, cost-effective delivery to the wellsite.

Why it matters

Smart Sand's focus on Northern White frac sand, which is generally viewed as higher quality than regional, in-basin sand, positions the company to benefit from structural trends in the oil and gas industry, including longer lateral lengths and higher-intensity completions that are increasing sand usage per well. The company's logistics capabilities and wellsite solutions also help it compete effectively in its served markets.

The details

Beckelman said Smart Sand sells sand to both oil and gas and industrial customers, but noted that '90% of our sand today goes to oil and gas producers.' The company's primary oil and gas markets include the Marcellus and Utica basins in the Northeast U.S., the Bakken in the Western U.S., and Canada's Montney and Duvernay basins. Smart Sand is '100% Northern White business,' with production from three Midwest facilities. Beckelman said Northern White's crush strength and more circular shape help support 'better long-term production and cash flow results over time.' He also cited the industry shift toward regional sand, driven primarily by logistics economics rather than performance.

  • In 2014, the average lateral was around 5,000 ft.
  • Today, laterals can approach '15,000-17,000 ft,' with leading operators drilling wells that may reach '20,000-25,000 ft.'

The players

Lee Beckelman

Chief Financial Officer of Smart Sand.

Robert Blum

Managing Partner of Lytham Partners, who moderated the fireside chat with Beckelman.

Smart Sand

A U.S.-based industrial mineral company specializing in the mining, processing and distribution of high-purity silica sand, with a focus on frac sand for the oil and gas industry.

Got photos? Submit your photos here. ›

What they’re saying

“When I started in this business in 2014, the average lateral was maybe 5,000 ft. Today, depending on the basin, he said laterals can approach '15,000-17,000 ft,' with leading operators drilling wells that may reach '20,000-25,000 ft.'”

— Lee Beckelman, Chief Financial Officer, Smart Sand

“Probably 60% to maybe 70% of our volumes go to natural gas basins, depending on the period.”

— Lee Beckelman, Chief Financial Officer, Smart Sand

What’s next

Smart Sand believes Northern White remains durable in its served markets, which it describes as having limited regional sand capacity. The company has over 450 million tons of high-quality reserves, with about 70% in fine mesh, and 10 million tons of capacity operating at about 55% utilization—positioning it to grow volumes with limited incremental growth capital.

The takeaway

Smart Sand's focus on high-quality Northern White frac sand, combined with its efficient logistics and wellsite solutions, allows the company to capitalize on structural trends in the oil and gas industry, such as longer lateral lengths and higher-intensity completions that are increasing sand usage per well. The company's strong free cash flow generation and shareholder-friendly capital allocation further enhance its competitive position.