Smart Sand, Inc. Wins Favorable Verdict in Dispute With U.S. Well Services, LLC
June 04 2021 - 11:19AM
Smart Sand, Inc. (NASDAQ: SND) (the “Company” or “Smart Sand”)
announced today that the Superior Court of the State of Delaware
(the “Court”) issued a verdict in favor of Smart Sand in its
lawsuit against U.S. Well Services, LLC (“U.S. Well”), a subsidiary
of U.S. Well Services, Inc., following the trial that took place in
December 2020. In the case, Smart Sand alleged, along with certain
other related claims, that U.S. Well breached a multi-year contract
under which Smart Sand supplied frac sand to U.S. Well, and claimed
total damages of approximately $54 million. U.S. Well denied that
it breached the contract and asserted counterclaims for the misuse
of U.S. Well’s confidential information. U.S. Well abandoned its
counterclaims after the trial.
The Court ruled that U.S. Well breached the
long-term take-or-pay Master Product Purchase Agreement between the
Company and U.S. Well by failing to purchase minimum required
tonnages of frac sand. The Court directed the parties to submit a
form of final judgment in favor of Smart Sand and against U.S.
Well, which we expect will become publicly available by the end of
June 2021.
Charles Young, the Chief Executive Officer of
the Company, commented, "We are extremely pleased with the Court’s
ruling that U.S. Well breached the PPA we negotiated together.”
Young added that, “while we did not seek this fight, we battled to
successfully vindicate our contractual rights once U.S. Well
stopped performing its end of the bargain and then refused to pay
us for amounts due under our agreement. We will continue to pursue
our rights to maximize our recovery under this verdict.”
About Smart Sand:
We are a fully integrated frac sand supply and
services company, offering complete mine to wellsite proppant
logistics, storage and management solutions to our customers. We
produce low-cost, high quality Northern White frac sand and offer
proppant logistics, storage and management solutions to our
customers through our in-basin transloading terminal and our
SmartSystems wellsite proppant storage capabilities. We provide our
products and services primarily to oil and natural gas exploration
and production companies and oilfield service companies. We own and
operate premium frac sand mines and related processing facilities
in Wisconsin and Illinois, which have access to three Class I rail
lines, allowing us to deliver products substantially anywhere in
the United States and Canada. For more information, please visit
www.smartsand.com.
Contact:
Josh JaynePhone: (281) 231-2660Email:
jjayne@smartsand.com
Lee BeckelmanPhone: (281) 231-2660E-mail:
lbeckelman@smartsand.com
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