Smart Sand Inc (NASDAQ: SND) announced today that it has gotten into a settlement with the U.S. Well Services, LLC (“USW”), a supplementary of U.S. Well Services, Inc., in linking with the estimated $50.9 million rulings delivered by the Superior Court of the State of Delaware in the indulgence of Smart Sand in its break of the bond case against USW.
USW has compensated Smart Sand a $35.0 million cash sum
Under the standings of the settlement, USW has paid Smart Sand a $35.0 million cash sum. USWS has arrived into a two-year Right of First Refusal Agreement with Smart Sand covering all Northern White frac sand acquisitions by USWS and its associates in the continental United States from January 1, 2022, through December 31, 2023.
Charles Young, Smart Sand’s Chief Executive Officer, observed, “We are very pleased to have reached an arrangement with U.S. Well and bring this long running act to a useful end. This result makes our corporate sturdier.”
Young continued, “The cash disbursement offers us with instant fluidity, augmenting our already strong balance sheet. The right of first refusal contract offers us with an opening to once again retail sand to U.S. Well.”
First Quarter 2021 outcomes
Incomes were $27.5 million in the first quarter of 2021, equating to $25.3 million in the fourth quarter of 2020 and $47.5 million in the first quarter of 2020. Incomes were up in the first quarter, equated to the fourth quarter of 2020, due to upper sand sales incomes occasioning from augmented capacities, partly offset by reduced logistics incomes.
Logistics income reduced in the first quarter of 2021, as equated to the fourth quarter 2020, due to an increase in-basin consignments, including conveyance and other management services, rather than mine gate consignments.
For the first quarter of 2021, the company had a net loss of $3.9 million, or $0.09 per rudimentary and diluted share, equating to a net loss of $2.9 million, or $0.07 per rudimentary and diluted share, for the fourth quarter of 2020 and a net loss of $0.1 million, or $0.00 per rudimentary and diluted share, for the first quarter of 2020.
