Npk International Inc. · NYSE:NPKI
Npk International — Newpark Resources — Investor Presentation (March 2009)
25 slides from Npk International's investor presentation, Mar 24, 2009
Slide 1: Newpark Resources, Inc. Investor Presentation
Newpark Resources, Inc. Investor Presentation MARCH 25, 2009 (NYSE: NR)
Slide 2: Forward-Looking Statements
2 2 2 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
Slide 3: Company Overview
3 3 3 Company Overview Specialized provider of: Fluids Systems and Engineering Well Site Construction Services Environmental Services Customers: Oil and Gas Industry Key geographic markets: North America North Africa Eastern Europe South America 2008 Revenue $858 million
Slide 4: 2008 Highlights
4 4 2008 Highlights Record total revenues of $858 million, up 28% over 2007 Adjusted non-GAAP income from continuing operations up 25% in 2008 to $0.50 per diluted share (GAAP EPS of $0.44) Fluid Systems & Engineering Improvements in all regions due to higher activity levels, market share gains and
Slide 5: Market Outlook: 2009
5 Market Outlook: 2009 Extremely difficult market for service companies in North America Significant decline in rig activity is causing a decline in revenue and margin compression as competitors are aggressively bidding on new contracts As of March 20, 2009, U.S. rig count is down 47% from its peak
Slide 6: Cost Management in a Downturn
6 6 6 Cost Management in a Downturn Began cost cutting initiatives in mid-Q4 2008 To date, we anticipate annual savings of approximately $40 million from actions taken so far Expect to drive additional costs down further in 2009 More cuts, additional focus on transportation, barite, other materials
Slide 7: Capital Structure and Liquidity
7 Capital Structure and Liquidity Strong cash flow has allowed $25 million debt reduction over last two years in a growing market Includes $15 million share repurchases in 2008 Bank group comprised of several major banks No significant near- term debt maturities: $10 million per year next four years
Slide 8: Drilling Fluids - Market Share
8 Drilling Fluids - Market Share Our worldwide market share has grown to 8% from 6% just four years ago. Source: Spears & Associates
Slide 9: Fluids Systems and Engineering Scope of Operations - North America
9 Serves major North America basins; well-positioned to expand Growing market share vis-a-vis other players Approximately 18% share of North American markets served in 2008, up from 16% in 20061 New contracts in Rockies and Gulf Coast with independents and in GOM deepwater with IOC Fluids Systems an
Slide 10: Fluids Systems and Engineering Expanding Internationally
10 10 10 Record year for revenue Targeted growth markets Core: Italy, Algeria, Libya & Tunisia Brazil: Petrobras & IOC's New Market Opportunities: Egypt and the Middle East Recent "landmark" events Two successful wells in Black Sea Offshore work in Libya with IOC's & NOC FY08 Revenue Mix: 80% North
Slide 11: Penetrating Brazilian Offshore Market
Penetrating Brazilian Offshore Market Newly constructed Brazilian fluids plant, operational in September 2008 New capacity expansion is underway to support new IOC Contributed to the first successful pre-salt well in the Santos basin Won a new contract for land based work Continue to bid on new tend
Slide 12: Environmental Services Maximizing Cash Flows
12 Environmental Services Maximizing Cash Flows Processes and disposes of E&P waste Non-hazardous oilfield Naturally occurring radioactive waste Industrial waste Leading market position in U.S. Gulf Coast Use low pressure injection techniques Waste disposed into unique geological structures undergro
Slide 13: Well Site Construction Services Minimizing Investment
Well Site Construction Services Minimizing Investment Well Site Services Leverage existing customer relationships Advantage of often being first service provider "on site" Expand product and service offerings in the well site preparation market Expansion and diversification Growth opportunities beyo
Slide 14: Summary
14 14 14 Summary Expanding Globally, Maximizing Cash & Managing Capital Reducing costs to meet revenue In North America, 2009 to be tough year with continued reductions in rig count Opportunities to grow, even during downturn, by attracting new customers and entering new markets International market
Slide 15: Thank you for your interest!
Newpark Resources, Inc. Thank you for your interest!
Slide 16: Financials
eS... Financials NERA RTT, THE ‘Comoldated Statement of Operations “Three Months (a mands ep pare 2008 "07 08 2007 Revenues S 26933 $ 172961 $ 858350 $ 671207 Com of evens rosa __ 151444 760204 __saiss 2nz—— ausi7 98.126 89326 (Genera and dinitrate experics 6.85 5090 25650 _22925 Operating income 14
Slide 17: Financials
17 17 17 17 Financials <root/>
Slide 18: Operating Segment Results
eS... Financials Newpark Resources, Ine. Operating Segment Results “Three Months Ended. (ln thousands) December 31,2008 __ September 30,2008 December 31,2007 Segment revenues Fluids systems and enginccring s 190968 $s 188975 S 136,267 Mats and intopratcd services 20,906 22,593 23473 Environmental se
Slide 19: Financials
Pa Set Rewns Financials
Slide 20: Financials
Pa Sort Res Financials
Slide 21: Bank Group
21 JP Morgan Calyon Bank of America Wells Fargo Sun Trust Capital One Whitney National Comerica Trustmark Mizuho Bank Group
Slide 22: Experienced Leadership
22 22 22 Experienced Leadership Paul Howes, President & CEO Jim Braun, VP & CFO Mark Airola, GC & Admin Officer Bruce Smith, President Fluids Systems and Engineering Bill Moss, President Mats and Integrated Services Tom Eisenman, President Excalibar Minerals LLC Sammy Cooper, President Environmental
Slide 23: Management Biographies: Paul Howes and James Braun
23 23 23 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, chemicals and plasti
Slide 24: Management Biographies: Bruce Smith and William Moss
24 24 24 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 Director of t
Slide 25: Management Biographies: Samuel Cooper
25 25 25 25 Samuel L. Cooper, President Environmental Services: Sammy joined Newpark in August 2005 as Vice President-Sales and in November 2005 became President of its subsidiary, Newpark Environmental Management Company, LLC. Prior to joining Newpark, from February 2002 to July 2005, he was at USF
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