Npk International Inc. · NYSE:NPKI
Npk International — Newpark Resources — Investor Presentation (November 2009)
24 slides from Npk International's investor presentation, Nov 20, 2009
Slide 1: Newpark Resources Presentation November 2009
Newpark Resources Presentation November 2009
Slide 2: Forward-Looking Statements
Forward-Looking Statements 2 This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act that are based on management's current expectations, estimates and projections. All statements that address expectations or projections about the futu
Slide 3: Company Overview
Company Overview 3 Specialized provider of: Fluids Systems and Engineering Environmental Services Well Site Construction Services Customers: Oil and Gas Industry Key geographic markets: North America North Africa Eastern Europe Brazil First Nine Months 2009 Revenue $355 million Environmental Service
Slide 4: Drilling Fluids - Market Share
Drilling Fluids - Market Share 4 Our worldwide market share has grown to 8% from 6% just four years ago Growth has come with independents, major international oil companies and national oil companies Source: Spears & Associates 2009 2008 Worldwide Fluids Market $9.1 billion market size Newpark Resou
Slide 5: Technology
Technology 5 Focused on providing customized solutions for E&P operators to improve their drilling economics Off-shore - Deepwater & Shelf Land - Conventional & Unconventional Formations Proprietary & Patented Technology High Performance Water Based Systems High Performance Synthetic Based Systems T
Slide 6: Fluids Systems and Engineering Scope of Operations - North America
Fluids Systems and Engineering Scope of Operations - North America 6 Serves major North America basins; recently expanded to Appalachian - Marcellus Shale Growing presence in the Haynesville and Eagle Ford Shale Approximately 14% share of U.S. markets served in 20091 Approximately 20% share of the U
Slide 7: Fluids Systems and Engineering Expanding Internationally
Fluids Systems and Engineering Expanding Internationally 7 Targeted growth markets Italy, Algeria, Libya & Tunisia Brazil: Petrobras & IOC's New market opportunities: Turkey, Egypt and the Middle East Recent "landmark" events Petrobras deepwater contract Two successful wells in Black Sea Offshore wo
Slide 8: Penetrating Brazilian Offshore Market
Penetrating Brazilian Offshore Market 8 Brazilian fluids plant operational in September 2008 Capacity expansion completed in 2009 to support IOCs 2nd largest fluids capacity in Brazil Workforce of 127 people, primarily Brazilians and 3rd country nationals Contracts with Petrobras, XOM, Maersk and Al
Slide 9: Environmental Services
Environmental Services 9 Processes and disposes of E&P waste Non-hazardous oilfield waste Naturally occurring radioactive material Non-hazardous industrial waste Leading market position in U.S. Gulf Coast Uses low pressure injection technology Waste disposed into unique geological structures undergr
Slide 10: Well Site Construction Services
Well Site Construction Services 10 Well Site Services Market areas some of hardest hit during this downturn South Louisiana rig count is significantly reduced Aggressively moved to reduce people and costs 55% headcount reduction over past 12 months Closed North Louisiana site construction business C
Slide 11: Operational Highlights
Operational Highlights 11 Quickly responded to weak North American market conditions Aggressively cut costs to survive during 1st half of 2009 Lean North American organization well-positioned to capitalize on recovery Positioned for further growth in international businesses Mediterranean revenues r
Slide 12: 3Q 2009 Summary
3Q 2009 Summary 12 Turn around operating performance Total revenues of $118 million in Q3 2009 versus $110 million in Q2 2009, 8% increase Breakeven net income in Q3 versus 10¢ per share loss in Q2 2009 Quarter included $2.3 million of business interruption insurance proceeds Improved cash flow perf
Slide 13: Capital Structure
Capital Structure 13 Continued debt reduction from balance sheet liquidation; $53 million debt reduction YTD 2009 Executed waiver and amendment to existing revolving credit facility No significant near- term debt maturities: $10 million per year next four years Capital Structure - September 30, 2009
Slide 14: Credit Agreement Changes
Credit Agreement Changes 14 Following the amendment, we were in compliance with all covenants at September 30, 2009 Modified Consolidated Leverage Ratio as follows (maximum): Q3 Actual 2.89 : 1.00 Modified Consolidated Fixed Charge Ratio as follows (minimum): Q3 Actual 1.65 : 1.00 Financial covenant
Slide 15: Credit Agreement Changes
Credit Agreement Changes 15 Although revolver commitment was reduced from $175 million to $150 million, availability at September 30, 2009 was $61 million Amended the pricing grid (in basis points) as illustrated below (current pricing at level 2) : Margin for Margin for Level Total Debt/EBITDA Euro
Slide 16: Summary & Market Outlook: 2010
Summary & Market Outlook: 2010 16 We believe the worst is behind us Improving results in all three segments The North American market appears to have stabilized and is starting to recover Pace of recovery will be driven by natural gas prices, storage levels and demand Shale plays should experience a
Slide 17: Appendix
Appendix NYSE: NR Newpark Resources, Inc. ———
Slide 18: Financials
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Slide 19: Financials
Financials Sew esas Ine ‘unmusrins aso srociion pens rcTTY Senate a Ss Se agen de cae pce sats au ‘esos Sadan apc ‘eemndne be ong rma ck acs 271013 ad 261649 ae rpc sien tbe
Slide 20: Financials - Operating Segment Results
Financials Newpark Resources, Ine. Operating Segment Results (Wnauited) “Three Months Ended (inthousands) September 30, 2009 June 30,2009 ___September 30, 2008 Revenues Fluids systems and engineering. s mars 89,642 Mats and integrated services 7518 8,638 Environmental services 11209 11319. Total rev
Slide 21: Financials
Financials = =a = se re oH NYSE: NR park Resources, ns
Slide 22: Experienced Leadership
Experienced Leadership 22 Paul Howes President & CEO Jim Braun VP & CFO Mark Airola GC & Admin Officer Bill Moss VP Corporate Strategy & Development Bruce Smith President Fluids Systems and Engineering Tom Eisenman President Excalibar Minerals LLC Sammy Cooper President Mats & Integrated Services &
Slide 23: Management Biographies
Management Biographies 23 Paul L. Howes, President & CEO: Paul joined Newpark's Board of Directors and was appointed its Chief Executive Officer in March 2006. In June 2006, Mr. Howes also was appointed as Newpark's President. Mr. Howes' career has included experience in the defense industry, chemic
Slide 24: Management Biographies
Management Biographies 24 Bruce C. Smith, President Fluids Systems and Engineering: Bruce joined Newpark in April 1998 as Vice President, International. Since October 2000, he has served as President of its subsidiary Newpark Drilling Fluids, L.P. Prior to joining Newpark, Mr. Smith was the Managing
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