The panel discussion focused on evolving trends in the frac sand supply chain and logistics. Three key trends were discussed: 1) Growing sand intensity and regional sand is shifting the logistics focus to "last mile" solutions for delivering sand to wells, 2) Supply chain responsibilities are evolving as various services are bundled, unbundled, or rebundled, and 3) New equipment and technologies are proliferating to increase efficiency, lower costs, and improve environmental performance in areas like portable storage, transloading, and software. The panelists represented companies involved in frac sand supply, logistics, and consulting.

1. 1Experience / Expertise / Excellence www.plgconsulting.com
PANEL DISCUSSION: Evolving Frac Sand
Supply Chain and Logistics Trends

2. 2Experience / Expertise / Excellence www.plgconsulting.com
Introducing Today’s Panelists
PANEL MEMBERS
Dagoberto Zalapa
Sr. Integration Lead – Global Well Operations Supply Chain, Conoco Phillips
Jay Anzelmo
Director, Dry Bulk Sales, CST Industries
Justin Renfro
SVP Business Development, OmniTRAX Energy Solutions
MODERATOR
Taylor Robinson
President, PLG Consulting

3. 3Experience / Expertise / Excellence www.plgconsulting.com
Three Key Frac Sand Supply Chain & Logistics
Trends for Discussion
1. Growing sand intensity and regional sand is shifting logistics
focus to the “last mile” solutions
2. Supply chain services responsibilities are evolving -
Bundling, unbundling, or rebundling
3. Proliferation of new equipment and technology to increase
efficiency, lower cost, or improve environmental concerns

4. 4Experience / Expertise / Excellence www.plgconsulting.com
TREND #1 - “Last Mile” Solutions Focus
(How much) will sand intensity per well continue to grow?
2018 ~ ?
OR
OR

5. 5Experience / Expertise / Excellence www.plgconsulting.com
Regional sand will grow -- Question is not if, but when and how much?
• Permian is the focus, but what other plays will use more regional/local sand in the future?
• How will the Permian handle all the last mile trucking?
TREND #1 - “Last Mile” Solutions Focus
Source: Infillthink.com, PLG Analysis
If Permian local sand volume reaches 30M Tons/Year…
• 1,200,000 truckloads/yr sand (if all are pneumatic trucks)
• 2,400,000 trips/year
• Requires over 1,000 truck fleet
• More importantly XXX additional drivers

6. 6Experience / Expertise / Excellence www.plgconsulting.com
TREND #1 - “Last Mile” Solutions Focus
Source: Headwaters MB research, PLG Consulting
Northern White sand supply chain is long and complex
Mining Processing Rail
Load-out
Long Haul
Rail
Transloading
and Storage
“Last Mile”
Note: Transloading may be required for
trucking over ~150 miles from sand mine to
wellhead
Northern
White
X X X X X X
Regional Sand
X X ? X
Regional Sand Impact
Regional sand shortens the supply chain and eliminates steps, but still
need to deliver more sand than ever to the well!

7. 7Experience / Expertise / Excellence www.plgconsulting.com
TREND #2 - Supply chain services
responsibilities are shifting

8. 8Experience / Expertise / Excellence www.plgconsulting.com
TREND #3 - Proliferation of new equipment
and technology
Containerized Shipping Portable Storage Transload Storage
Software for Frac Sand
Lift Trucks

9. 9Experience / Expertise / Excellence www.plgconsulting.com
Three Tends:
1. Growing sand intensity and regional sand is shifting logistics focus to the “last
mile” solutions
2. Supply chain services responsibilities are evolving - Bundling, unbundling, or
rebundling
3. Proliferation of new equipment and technology to increase efficiency, lower
cost, or improve environmental concerns
For the audience:
1. What are the other major supply chain and logistics trends that we didn’t
discuss?
2. Do you have any other questions on the three trends discussed today?
Looking Forward To Your Questions!

10. 10Experience / Expertise / Excellence www.plgconsulting.com
Thank You!
For follow up questions and information, please
contact:
Taylor Robinson
President
PLG Consulting
+1 (508) 982-1319 | trobinson@plgconsulting.com