Npk International Inc. · NYSE:NPKI
Npk International — Newpark Resources — Investor Presentation (February 2014)
27 slides from Npk International's investor presentation, Feb 27, 2014
Slide 1: Presentation
Presentation February 2014 W comune 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 2013 Revenue - $1.042 billion 11% 9% i Fluids Systems IW Mats and Integrated Services 2013 Segment Operating Income - $122 million 40% 60% NYSE: NR Operating Segments: > Fluids Systems > Mats and Integrated Services Customers: > Oil and Gas Industry Key geographic markets: > North A
Slide 4: Global Presence
Global Presence , - - DT ccrran
Slide 5: Strategic Drivers — Technology
Strategic Drivers — Technology > Driving to be the recognized technology leader in each of our business units > Fluids Systems > Our Evolution” family of high-performance water-based systems introduced in 2010 > New worldwide technology center opened in June 2013 > Mats & Integrated Services > DURA-
Slide 6: Strategic Drivers — International Expansion
Strategic Drivers — International Expansion > international expansion is a key element of our strategy ii > Stability of revenue > Longer term contracts > Mostly lOC’s and NOC’s > Fewer Competitors $250 + > Recent Contract Awards expected to Revenues (§ millions) 8 start 2014: > Total, multi-year de
Slide 7: Strategic Drivers - Customer Support
Strategic Drivers - Customer Support NYSE: NR > 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 >
Slide 8: Fluids Systems — Market Share
Fluids Systems — Market Share 2012 Worldwide Drilling and Completions Fluids Market $11 billion market size m Newpark Resources 8.2% m Baker Hughes 10.4% Halliburton Corp. 23.9% m Schlumberger 35.6% Others 21.9% 10% Worldwide Fluids Market Share 2003 - 2012 8.5% g 005 8% 75% 7.4% Are bade 7.5% em 79
Slide 9: Fluids Systems — North America
Fluids Systems — North America Revenues ($ millions) Market Share % (rigs) NYSE: NR North American Revenues $585 $615 as Anadarke! 686 onpbiltiton EXonMobil EUP 4 ~~ = encana’ devon ea a Pr L > Serves most North American basins, with majority of revenue coming from oil or liquids-related 2010 2012 2
Slide 10: Fluids Systems — EMEA
Fluids Systems —- EMEA > Core Markets > Algeria, Italy, Romania,Tunisia, Libya > Near-Term Growth Markets > India, Kuwait, Kurdistan, Georgia, Hungary > Recent contract awards in Black Sea, Kuwait and India to start in 2014 EMEA Revenues : | =| 6 $160 sa37 Y $140 $120 $116 ant > ? PETROM or“ $100 ou
Slide 11: Fluids Systems — Latin America
Fluids Systems — Latin America > 2007 entry in Brazil helped establish Newpark in Deepwater market > Focus on proprietary products such as DeepDrill°, water-based technology expanding work with Petrobras > Expanding beyond Brazil $120 Latin America Revenues $100 a7 $76 Es $61 £ ¢ € Ey & $25 Revenues
Slide 12: Fluids Systems — Asia Pacific
Fluids Systems — Asia Pacific > 2011 acquisition provided entry in the APAC region > Two year offshore contract with Santos began in mid-2012 > Looking to further penetrate market with Evolution System Asia Pacific Revenues $50 $42 races $36 & aon $25 g $20 § $10 g $0 2011* 2012 2013 “Business acqui
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 papers co-authored with Occidental and ENI in 2013 > Patent covering Evolution System issued
Slide 14: Deepwater Market Opportunity — Building on Brazil Success
Deepwater Market Opportunity — _ Building on Brazil Success a a os % oO " - 4 South America BiNewpark Mlactive Deepwater Rigs Source: Rigzone and current Company estimates 44 NYSE: NR
Slide 15: Mats & Integrated Services
Mats & Integrated Services Total Segment Revenues = pee $100 > New environmental applications : sis “ $120 110 drove growth in recent years — Z $100 a inimies > Use of DURA-BASE composite mats to minimize 3 se0 $69 adverse impacts of land drilling 2 Ga > Revenues include sale of DURA-BASE § 30 compo
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 produces > Spill Containment and others >Capable of
Slide 17: DURA-BASE Spill Containment System
DURA-BASE Spill Containment System >Enhancement of the DURA-BASE : technologyintroduces sealing { technologyto contain spills on the mat surface > Applications include drilling and completions phase > Field Testing on-going with formal launch expectedin 2014 ¥ NEWPARK NYSE: NR v7
Slide 18: Financial Summary — Q1 2012 to Q4 2013
Financial Summary — Q1 2012 to Q4 2013 Revenue and EBITDA* New data excluding Environmental Services: $40 mmrevende (er > Driving revenue and EBITDA ig growth despite lower US rig ies counts vaulaa > Actions continue to drive sa operational efficiency and improve cost structure $25 1ai2 2012, «3012
Slide 19: Outlook
Outlook U.S. Drilling Rigs by Type” > North America shift towards oil rich on plays has stabilized 50% > Recent increase in natural gas ox OZ : 5 : : oo = eo price provides upside potential 20% Ws — > Increase in unconventional drilling is 10% —Hhorizontal. Vertical Directional a favorable trend > E
Slide 20: Newpark
¥ NEWPARK NYSE: NR. 20
Slide 21: Consolidated Statements of Operations
Consolidated Statements of Operations (Includes Environmental Service business) (Unaudited) ‘Three Months Ended ‘Twelve Months Ended December 31, September 30, December 31, December 31, December 31, (Gn thousands, except per share data) 2013 2013 2012 2013 2012 Revenues $ 262,509 | $ 285.708 $ 27032
Slide 22: Operating Segment Results
Operating Segment Results (Includes Environmental Services business) NYSE: NR (Unaudited) Three Months Ended December 31, September 30, December 31, (ia thousands) 2013 2013 2012 Revenues Fluids systems S$ 212069 $ 233,020 $ 229,329 Mats and integrated services 34,856 35,112 26,612 Environmental ser
Slide 23: Consolidated Balance Sheets
Consolidated Balance Sheets Gnaudited) Gin thousands. except share data) 2013 2012 ASSETS ‘Cash and cath equivalents s Receivables, net entories Deferred taxasset Prepaid expenses and other current assets Total cunentassets Property, plant and equipment, net Goodwill Other intangible Other assets To
Slide 24: Consolidated Statements of Cash Flow
Consolidated Statements of Cash Flow NYSE: NR nasties) ‘Year Fndad December 31 (a thossanda) 2013 2012 (Gash flrs from operating actnvities: Netincome S625 6.02 ‘Adjustments toeconcile nat incom tonet cash provited by operations: npsiment charges 16 43 Depesciation and anoctintion 44198 or Stock-bas
Slide 25: 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 ¥ NEWPARK NYS
Slide 26: 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 27: 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 assur
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