Npk International Inc. · NYSE:NPKI
Npk International — Newpark Resources — Investor Presentation (November 2013)
28 slides from Npk International's investor presentation, Nov 12, 2013
Slide 1: Presentation
Presentation November 2013 F ccivan NYSE: NR
Slide 2: Forward Looking Statements
Forward Looking Statements 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 future
Slide 3: Company Overview
Company Overview First Nine Months 2013 Revenue - $845 million 10% 5% 85% Il Fluids Systems and Engineering 1 Mats and Integrated Services Il Environmental Services First Nine Months 2013 Segment Operating Income - $105 million* 12% 33% 55% Excludes corporate overhead NYSE: NR > Specialized provider
Slide 4: Global Presence - Current
Global Presence - Current First Nine Months 2013 Revenues - $845 million Gicanada EMEA {lLatinAmerica APAC U.S. NEWPARK NYSE: NR
Slide 5: Strategic Drivers — Technology
Strategic Drivers — Technology > Driving to be the recognized technology leader in each of our business units > Drilling Fluids > New worldwide technology center opened in June 2013 > Evolution’ (patent pending) our family of high- performance water-based systems introduced in 2010 > Mats & Integrat
Slide 6: Strategic Drivers — International Expansion
Strategic Drivers — International Expansion > international expansion is a key element of our strategy ce > Stability of revenue pel First Nine Months $250 > Longer term contracts > Mostly lOC’s and NOC’s > Fewer Competitors > Recent Contract Awards $200 + $150 + > Total, multi-year deepwater Brazil
Slide 7: Strategic Drivers - Customer Support
Strategic Drivers - Customer Support > Focused on backing our leading technology with superior customer support > Over 600 fluids technicians customize and deliver our technology worldwide > Advanced training programs for fluid technicians continue to enhance product and service knowledge > Newpark
Slide 8: Drilling Fluids Segment — Market Share
Drilling Fluids Segment — Market Share 10% 8% 6% 4% 2% 0% 5.9% 7.0% i| | | 2012 Worldwide Drilling and Completions Fluids Market ion market size m Baker Hughes 10.4% Schlumberger 35.6% Others 21.9% Worldwide Fluids Market Share 2003 - 2012 8.0% 85% 8.2% I 7.5% 7.4% 7.5% mi Newpark Resources 8.2% Hal
Slide 9: Fluid Systems & Engineering — North America
Fluid Systems & Engineering — North America North American Revenues bp SALE a 700 7. ©) First Nine Months $615 oS Ss crease at 70000 Bh rutvesr SS Goache — 2 $500 | CIMAREX? “ae ~6devon ie $400 ConocoPhillips g $300 = 3 (er > Serves most North American é $100 basins, with majority of revenue $0 comi
Slide 10: Fluid Systems & Engineering — EMEA
Fluid Systems & Engineering — EMEA > Core Markets > Algeria, Italy, Romania,Tunisia, Libya ~~ ‘ > Near-Term Growth Markets yg me > Kuwait, Kurdistan, Georgia, Ukraine, Hungary > Recent contract awards in Black Sea and Kuwait to start in 2014 a nese V... 7 Ww EMEA Revenues os Beaty qgiz0 | $116 $11 $
Slide 11: Fluids Systems & Engineering — Latin America
Fluids Systems & Engineering — Latin America > 2007 entry in Brazil helped establish Newpark in Deepwater market > Expanding work with Petrobras and 10C’s > Focus on proprietary products such as DeepDrill’, water-based technology > Looking to expand beyond Brazil Latin America Revenues $100 0 First
Slide 12: Fluids Systems & Engineering — Asia Pacific
Fluids Systems & Engineering — Asia Pacific > 2011 acquisition provided entry in the APAC region > Australia > New Zealand > India > Two year offshore contract began in Santos mid-2012 ‘We have the energy. Asia Pacific Revenues y $50 (0) First Nine Months v mg Qo.” on origin ( $20 A contact $10 $0 M
Slide 13: Evolution Technology
Evolution Technology > Evolution system continues to demonstrate superior drilling performance > Higher lubricity > Environmentally friendly > Reduced circulating temperatures > Increased ROP > Published SPE paper co-authored with Occidental > system roll-out expanding into international markets NYS
Slide 14: Deepwater Market Opportunity — Building on Brazil Success
Deepwater Market Opportunity — Building on Brazil Success. = = % a 5 % Middle East. \ ee South America BiNewpark [active Deepwater Rigs NYSE: NR S0U"ce: Rigzone and Company estimates st
Slide 15: Mats & Integrated Services
Mats & Integrated Services > New environmental applications drove growth in recent years » Use of Durabase® composite mats to minimize adverse impacts of land drilling > Revenues include sale of DuraBase° composite mats and rentals » Mat sales targeted to international E&P customers and domestic cus
Slide 16: Building upon the Dura-Base Technology
Building upon the Dura-Base® Technology Driver > One of the most durable large scale composite mats in the world > Size: 8 ft X 14 ft, Weighs: approximately 1,000 Ibs > Multiple patents issued and pending > FOUNDATION from which we are launching new Brecee > Spill Containment and others > Capable of
Slide 17: Durabase Spill Containment System
Durabase Spill Containment System > Enhancement of the Durabase® I technology introduces sealing { technology to contain spills on the mat surface > Applications include drilling and completions phase > Field Testing on-going with formal launch expected in 2014 NEWPARK NYSE: NR v
Slide 18: Environmental Services
Environmental Services Environmental Services Revenues >» Processes and disposes $60 | Fest Nine Months sey Full Year $49. $49 of E&P waste » Non-hazardous oilfield waste Vv Leading market position in U.S. Gulf Coast » Uses low pressure injection technology » Waste disposed into unique geological st
Slide 19: Financial Summary — Q3 2011 to Q3 2013
Financial Summary — Q3 2011 to Q3 2013 Revenue and EBITDA* $300 $50 lim Revenue (left) “EBITDA (right) = BF sas z s = $25 E $40 > s25 $ $35 § $200 & é $175 S20 $150 $25 3Q11 4a11 1012 2012 3012 4012 a113 0213 0313 *Refect reported operating income pus deprecation and amortization expense at Debt to
Slide 20: Outlook
Outlook U.S. Drilling Rigs by Type” 70% 60% 50% 40% 30% 20% 10% Horizontal ——Vertical 0% a 5 2 20 gO 2 YO wo SY Oh SF MS MH Me MF WE Mor Oil vs Gas Rig Mix” 9056 80% 70% 60% 50% 40% 30% 20% 10% 0% PP SPP So Pr yr rr rg * Source: Baker Hughes NYSE: NR Directional ef oe s LP POS PH HE KH Hy KH Ha PP H
Slide 21: F ccivan
F ccivan NYSE: NR a
Slide 22: Consolidated Statements of Operations
Consolidated Statements of Operations (Unaudited) Three Months Ended ‘Nine Months Ended September 30, June 30, September 30, September 30, September 30, (in thousands, exept per share data) 2013 2013 2012 2013, 2012 Revenues $ 285,708 $ 276,622 $ 259,599 $ 844848 $ 767,691 Cost ofrevenues 230,206 22
Slide 23: Operating Segment Results
Operating Segment Results NYSE: NR (Unaudited) Three Months Ended September 30, June 30, September 30, (in thousands) 2013 2013 2012 Revenues Fluids systems and engineering $ 233,020 233,964 $ 211,457 Mats and integrated services 35,112 25,412 35,067 Environmental services 17576 17,246 13,075 Totalr
Slide 24: Consolidated Balance Sheets
Consolidated Balance Sheets NYSE: NR Cnavéited) 30, December 31, Gin thousands, except share data) 2013, 2012 ASSETS (Cash and cash equivalents 09S Receivables, net 316216 Inventories 203.26 Defemed tax asset 9972 Prepaid expenses and other current assets 11,889 Total current assets Lar Property, pl
Slide 25: Consolidated Statements of Cash Flow
Consolidated Statements of Cash Flow NYSE: NR andited ‘Nine Months Ended September 30. (Gn thousands) 2013 2012 ‘Cash flows from operating act Det income S$ 519 $8.89 Adjustments to reconcile net income to net cash provided by operations: Depreciation and amortization Stock-based compensation expens
Slide 26: Experienced Leadership
Experienced Leadership + Paul Howes President & CEO + Gregg Piontek VP & CFO ¢ Mark Airola SVP, GC & Admin Officer « Lee Ann Kendrick VP, Human Resources + Bruce Smith President Fluids Systems and Engineering + Jeff Juergens President Mats & Integrated Services & Environmental Services F vcweann NYS
Slide 27: Management Biographies
Management Biographies 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, chemicals
Slide 28: Management Biographies
Management Biographies Lee Ann Kendrick, Vice President, Human Resources: Lee Ann joined Newpark in January 2012 as Vice President ‘of Human Resources. Prior to joining Newpark, Ms. Kendrick was responsible for human resources for The Americas with Lloyd's Register, a risk management and safety assu
Newpark Resources — Investor Presentation (November 2013) on 6ix