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ShaleApps Frac Sand Last Mile Economics

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ShaleApps is proud to launch a revolutionary mobile app that predicts your last mile health and proactively changes your sourcing and delivery schedule to increase loads/day/truck. OFS, E&P, Sand Companies and Trucking Companies can now eliminate their Sand NPT and Truck Detention to deliver more sand with less trucks.

You can now optimize sand delivery to all your wells in real time, just from your pocket. Your AI Assistant SANDi™ will soon become your best friend!

Register for a limited free pilot and preferential pricing – only for our early adopters here: http://bit.ly/sa-sand

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ShaleApps Frac Sand Last Mile Economics

  1. 1. Sand’s Last Mile Economics ShaleApps is Unleashing Untapped Value in Last Mile Logistics www.shaleapps.com/sand
  2. 2. Last Mile Capacity Cannot Keep Up with the Increasing Demand and Supply of Sand Sand’s Last Mile Logistics Threatens North America’s Sustainability 2018 Sand Demand Growth • US: 110 MM tons • 4.9 MM truck loads/year • 13,400 truck loads/day • Permian: 50 MM tons 2018 US Sand Supply Growth • 180 MM tons (Up 45MM tons) Sources for slide: InfillThinking.com, Rystad Energy, Energent Group, RigUp & Trucker’s Report SAND DEMAND LAST MILE LOGISTICS CAPACITYSAND SUPPLY Cross-Industry Driver Shortage Shortage Increasing YOY. Permian alone needs 7,500 additional drivers in the next few years. ELD Reduces Trucking Capacity by 30% Permian Capacity: 11k Trucks for fluid and heavy hauling Low Ops Efficiency “Manual” logistics processes in this chaos will increase NPT and Demurrage. 200% increase in Kermit Congestion Will increase Drive Time to Well Sites & reduce loads per day. 2018 Permian In-Basin Mine Growth • 3 Mines to 20 Mines • 8.4 MM to 40+ MM tons Sand/Well Growth • Sand can be about 20-25% of Well CAPEX >100% Increase Horizontal Wells Fractured 2016 – 2018 37% Increase Lateral Length 2014 – 2017 Permian 33% Increase Stages Per Well 2015 – 2017 147% Increase Tons Sand Per Well 2012 – 2017 Permian, Bakken, Eagle Ford
  3. 3. Stakeholders: Last Mile Owner, Trucking, Logistics, Mines and Transload Facilities Last Mile Challenge Creates Loss for All Stakeholders Lower Trucking Supply • Higher NPT Most concerning cost inflation driver in 2018 (Survey Consensus Results) Lower Loads/Day • Lower Truck Utilization Rate (Revenue = Truck Loads * Fixed Load Price) • Loss of Drivers to other industries as they get paid 25% of truck load ticket • Driver replacement cost is $6k/driver • Truck insurance has doubled: $15k/year Lower Loads/Day • Lower Sand Supply/Throughput (Revenue) COST TO LAST MILE OWNER (LMO) COST TO TRUCKING COMPANY COST TO SAND/TRANSLOAD COMPANY Downtime Cost Per Hour $35,000 Lower Loads/Day • Higher NPT • Higher Demurrage Cost Driver Turnover >300% Trucking Cost Increase >45% Demurrage NPT Increase >20% Sources for slide: InfillThinking.com, Rystad Energy, Energent Group, RigUp & Trucker’s Report
  4. 4. Register for a limited free pilot and preferential pricing – only for our early adopters here: ShaleApps.com/sand ShaleApps.com Sign Up for ShaleApps Sand Pilot to solve your Last Mile Challenge ShaleApps.com

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