Select Sands Ups Its Sand Sales

Select Sands Corp. announced operational and financial results for fourth quarter and full year 2021. The company:

Sold 94,670 tons of frac and industrial sand during Q4 2021, which was 6% higher than 89,096 tons sold in Q3 2021 and 79% higher than 53,009 tons sold for Q4 2020. For full year 2021, Select Sands sold 328,978 tons of frac and industrial sand, which was more than double than the 161,149 tons sold in 2020. Driving the consistent increase in quarterly sales volumes throughout 2021 was higher demand for the company’s premium quality product offerings as petroleum pricing remained strong.

Recorded revenue of $6.1 million and gross margin of $0.7 million in Q4 2021 compared to $5.3 million of revenue and gross margin of $0.4 million in Q3 2021, and revenue of $3.1 million and gross margin of $1.0 million for Q4 2020. For full year 2021, Select Sands recorded revenue of $19.7 million and gross margin of $1.6 million, compared to revenue of $9.7 million and a gross loss of $0.3 million for 2020.

Reported a net loss of $0.8 million, or $0.01 per share, in Q4 2021, compared to a net loss of $0.3 million, or $0.00 per share, in Q3 2021 and net income of $0.4 million, or $0.00 per share, in Q4 2020. For full year 2021, the company reported a net loss of $1.7 million, or $0.02 per share, versus a net loss of $2.9 million, or $0.03 per share, in 2020. The increasing net loss from Q3 2021 to Q4 2021 was partially impacted by impairments/loss on sale of assets, and settlement of a disputed natural gas bill as a result of excessively high natural gas pricing driven by the severe winter storm in February 2021.

For Q1 2022, the company sold more than 107,000 tons of frac and industrial sand, which was more than 13% higher than Q4 2021. Sales revenue for Q1 2022 will not increase in a correlative manner as over 40% of sales were priced at the mine gate, which excludes any charges to the customer for rail transportation or other logistics. Mine gate sales were virtually non-existent in Q4 2021.

Zig Vitols, president and chief executive officer, commented, “I am pleased to report that we ended 2021 with solid fourth quarter results, including continued growth in sales volumes, revenue and adjusted EBITDA. Significantly contributing to our outperformance was a steadily improving oil and natural gas price environment that allowed E&P companies to increase their field development activities throughout 2021. This drove higher demand for our premium quality Northern White Sand and other product offerings, and we are seeing further growth to date in 2022. We are also seeing some customers paying directly for rail, reducing the working capital burden on the company. I want to thank all of our employees for their continued hard work and dedication, as well as the ongoing support of our shareholders.”

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