Npk International Inc. · NYSE:NPKI
Npk International — Newpark Resources — Investor Presentation (November 2011)
25 slides from Npk International's investor presentation, Nov 7, 2011
Slide 1: Newpark Resources Presentation November 2011
Newpark Resources Presentation November 2011
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 Mats and Integrated ServicesEnvironmental ServicesCustomers:Oil and Gas IndustryKey geographic markets: North America EMEALatin AmericaAsia Pacific(CHART) Fluids Systems and Engineering Mats and Integrated Services Environment
Slide 4: Drilling Fluids - Market Share
Drilling Fluids - Market Share 4 Demonstrated our ability to grow worldwide market share over the past decadeGrowth has been driven by independents, major international oil companies and national oil companiesProjected to be the third largest drilling fluids provider in North America in 2011 (based
Slide 5: Technology
Technology 5 Focused on providing customized solutions for E&P operators to improve their drilling economicsOffshore - Deepwater and ShelfIn early 2011, completed an offshore well for a major IOC in over 7000 feet of water Land - Conventional and Unconventional FormationsProprietary and Patented Tec
Slide 6: Technology: Evolution water-based system
Technology 6 New water based system, Evolution(tm), used successfully in the U.S. shale playsYields improved rate of penetration; reduced operating expense (rig time and waste disposal)Since beginning of 2010, more than 400 wells have used Evolution; $44 million of revenues in first nine months of 2
Slide 7: Customer Revenue Mix
Customer Revenue Mix Growth with IOC's and NOC'sResults of strategic shift started in 2006Focus on IOC's and NOC'sWhy?Less competition versus independentsLonger investment horizons (stability)Longer-term contracts 7
Slide 8: International Revenue Growth/Mix
International Revenue Growth/Mix Focused on driving balance between North American and International revenuesInternational expansion provides greater stabilityLonger investment horizonsLower concentrations in individual markets, reducing exposure to individual market dynamics 8 (CHART) (CHART)
Slide 9: Fluids Systems and Engineering - North America
Fluids Systems and Engineering - North America 9 Serves most all North American basins Approximately 15% share of total U.S. markets served in through first nine months of 20111Introduced Evolution(tm) for use in Barnett, Bakken, Piceance and Eagle Ford Shales; expanding into MarcellusApproximately
Slide 10: Fluids Systems and Engineering - EMEA
Fluids Systems and Engineering - EMEA 10 Core MarketsItaly, Algeria, Tunisia, RomaniaNear-Term Growth MarketsHungary, Kurdistan (Iraq), Spain, Poland, TurkeyDespite loss of Libya revenue, region on pace to exceed 2010 Near-term Growth Markets (CHART)
Slide 11: Fluids Systems and Engineering - Latin America
11 2nd largest drilling fluids capacity in BrazilTaking steps to improve profitability Expand work with IOCsFocus on proprietary products such as DeepDrill Fluids Systems and Engineering - Latin America (CHART)
Slide 12: Fluids Systems and Engineering - Asia Pacific
12 Acquisition of Rheochem drilling fluids business in April 2011Australia New ZealandIndiaMarkets:OffshoreOnshoreGeothermalCoal Bed MethanePurchase price of $29 million with one- year earn out potential based on EBITDA up to additional $19 million (at current exchange rates)Contributed $15 million
Slide 13: Mats and Integrated Services
Mats and Integrated Services 13 New environmental applications drove growth in 2010 and 2011Use of composite mats to minimize adverse impacts of land drillingGrowth through new markets for mat rentals and salesNortheast U.S.BakkenInternationalBroadening Rental Customer Base Moving mats out of Northe
Slide 14: Environmental Services
Environmental Services 14 Processes and disposes of E&P wasteNon-hazardous oilfield wasteLeading market position in U.S. Gulf CoastUses low pressure injection technologyWaste disposed into unique geological structures undergroundImpacted by Gulf of Mexico Permitting DelaysReplacing deepwater decline
Slide 15: Third Quarter 2011
Third Quarter 2011 Operating performanceRecord revenues of $261 million in Q3 2011, up 13% from Q2 2011 and 46% from a year agoEPS of 23¢ in Q3 compared to 19¢ in Q2 and 9¢ a year ago. Net income of $23 million is highest reported quarterly net income in Newpark's historyU.S. Fluids market share was
Slide 16: Capital Structure
Capital Structure 16 Solid balance sheetDebt/Capitalization ratio of 26.8% Cash balance of $63 million at September 30, 2011 Convertible notes termsInterest rate of 4%Conversion price of $11.00 per shareNo financial covenantsMatures 2017
Slide 17: Outlook
Outlook 17 Oil & gas liquids driving U.S. drilling activityWe are participating in the move toward liquidsEvolution(tm) TechnologyContinue deploying across North AmericaContinue international growth - build on recent success in Brazil and Rheochem acquisitionWork to re-deploy available mats to custo
Slide 18: Appendix
Appendix NYSE:NR Newpark Resources, Inc. as
Slide 19: Financials
Financials Nyst ‘Newpark Resources, In. Consolidated Statements of Operations Wsausite) ‘Thrve Months Ended Septenber30, June30, —_Septenber 30, thousands, exept per share dats) 201 2011 2010 Revemes Cost ofrevenues Seling, general and administrative expenses Other operating income, net Opertinginco
Slide 20: Newpark Resources, | kx
NYSE:NR Newpark Resources, | kx
Slide 21: Financials: Operating Segment Results
Financials NYSE:NR Newpark Resources, Inc. ‘Operating Segment Results (Cnavdied) ‘Three Months Ended Seprembers0, June 30, Seprember30, thousands) 2011 2011 2010 Revenues Fis ystems and engineering Mats and integrated services Enviroamental services Totalrevenues ‘Operating income (loss) his eystems
Slide 22: Financials
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Slide 23: Experienced Leadership
23 Paul Howes President & CEO Gregg Piontek VP & CFOMark Airola SVP, GC & Admin OfficerBruce Smith President Fluids Systems and EngineeringJeff Juergens President Mats & Integrated Services & Environmental Services Experienced Leadership
Slide 24: Management Biographies
Management Biographies 24 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 25: Management Biographies
Management Biographies 25 Bruce C. Smith, Executive VP and 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
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