Npk International Inc. · NYSE:NPKI
Npk International — Newpark Resources — Investor Presentation (May 2010)
23 slides from Npk International's investor presentation, May 10, 2010
Slide 1: Newpark Resources Presentation May 2010
Newpark Resources Presentation May 2010
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 Services Environmental Services Customers: Oil and Gas Industry Key geographic markets: North America North Africa Europe Brazil 2009 Revenue $490 million Fluids Systems & Engineering Mats and Integrated S
Slide 4: Drilling Fluids - Market Share
Drilling Fluids - Market Share 4 Our worldwide market share has demonstrated growth over the past decade Market share growth was impacted by downturn in North America in 2009 Growth has come with independents, major international oil companies and national oil companies Source: Spears & Associates -
Slide 5: Technology
Technology 5 Focused on providing customized solutions for E&P operators to improve their drilling economics Off-shore - Deepwater and Shelf Land - Conventional and Unconventional Formations Proprietary and Patented Technology High Performance Water Based Systems High Performance Synthetic Based Sys
Slide 6: Customer Revenue Mix
Customer Revenue Mix Growth with IOC's and NOC's Results of strategic shift started in 2006 Focus on IOC's and NOC's Why? Less competition versus independents Longer investment horizons (stability) Longer term contracts 6 2006 Fluids Systems & Engineering Revenue 2010 Fluids Systems & Engineering Re
Slide 7: International Revenue Growth/Mix
International Revenue Growth/Mix Focused on driving towards a 50/50 ratio of North American revenues to international revenue Why? To provide more stability; balance between natural gas (North America) and oil (International) Longer investment horizons (stability) 7 2006 Fluids Systems & Engineering
Slide 8: Fluids Systems and Engineering Scope of Operations - North America
Fluids Systems and Engineering Scope of Operations - North America 8 Serves major North America basins; recently expanded to Appalachian - Marcellus Shale Approximately 14% share of U.S. markets served in 20091 Growing presence in the emerging Haynesville and Eagle Ford Shale Approximately 21% share
Slide 9: Fluids Systems and Engineering Expanding Internationally
Fluids Systems and Engineering Expanding Internationally 9 Targeted growth markets Brazil: Petrobras and IOC's Italy, Algeria, Libya and Tunisia New market opportunities: Turkey, Angola, Egypt and the Middle East Recent "landmark" events Petrobras deepwater contract IOC contracts in Brazil Offshore
Slide 10: Penetrating Brazilian Offshore Market
Penetrating Brazilian Offshore Market 10 2nd largest drilling fluids capacity in Brazil with 8 service locations Customers include Petrobras, XOM, Repsol, Maersk and Alvarado 2009 revenues of $25 million, compared to $15 million in 2008 Workforce of 139 people, primarily Brazilians and 3rd country n
Slide 11: Mats and Integrated Services
Mats and Integrated Services 11 Aggressively moved to reduce people and costs in 2009 56% headcount reduction Closed North Louisiana site construction business Growth through new markets for mat rentals U.K. Colorado Marcellus New environmental applications drive Q1 2010 growth
Slide 12: Environmental Services
Environmental Services 12 Processes and disposes of E&P waste Non-hazardous oilfield waste Leading market position in U.S. Gulf Coast Uses low pressure injection technology Waste disposed into unique geological structures underground Remained profitable during downturn in 2009
Slide 13: Q1 2010 Summary
Q1 2010 Summary Operating performance continues to improve Total revenues of $161 million in Q1 2010 versus $136 million in Q4 2009, a 19% increase Pre-tax income of $12.2 million compared to $2.7 million in Q4 2009 Improved cash flow performance All segments profitable in Q1 2010 versus operating l
Slide 14: Capital Structure
Capital Structure 14 $65 million debt reduction in 2009; net borrower of $6 million in Q1 2010 to finance growth No significant near-term debt maturities: $10 million per year, next two years
Slide 15: Summary & Market Outlook: 2010
Summary & Market Outlook: 2010 15 Last three quarters trending up, but natural gas prices a concern Improving results in all three segments The North American market appears to continue to recover Continued recovery will be driven by natural gas prices, storage levels and demand Shale plays are expe
Slide 16: Appendix
Appendix NYSE: NR Newpark Resources,
Slide 17: Consolidated Statements of Operations
Newpark Resources, In. Consolidated Statements of Operations (Wnaudited) ‘Three Months Ended March 31, December 31, Mareh31, (Gn thousands, except per share data) 2010 2009 2009 Revenues S 16078 S$ 13553 $1268 Cost of revenues 133518 113,182 13512 Scling, general and administrative expenses 14413 15
Slide 18: Financials
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Slide 19: Operating Segment Results
Financials Operating Segment Results Wraudited) ‘Three Months Banded (Gn thousands) March 31,2010 December 31,2009__Mareh31, 2009 Revenues id systems and engineering 8 136310 $ 1379 $ 106.588 Mats and integrated services Be 1397 8863 Environmental services os 9334 11887 ‘Toul revenues A 1a798 50S 12
Slide 20: Cash flow statement
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Slide 21: Experienced Leadership
Experienced Leadership 21 Paul Howes President & CEO Jim Braun VP & CFO Mark Airola GC & Admin Officer Bill Moss VP Corporate Strategy & Development Interim President Mats & Integrated Services & Environmental Services Bruce Smith President Fluids Systems and Engineering Tom Eisenman President Excal
Slide 22: Management Biographies
Management Biographies 22 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 23: Management Biographies
Management Biographies 23 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