Npk International Inc. · NYSE:NPKI
Npk International — Newpark Resources — Investor Presentation (May 2011)
25 slides from Npk International's investor presentation, May 11, 2011
Slide 1: Newpark Resources Presentation May 2011
Newpark Resources Presentation May 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 Services Environmental Services Customers: Oil and Gas Industry Key geographic markets: North America North Africa Europe Brazil Asia Pacific
Slide 4: Drilling Fluids - Market Share
Drilling Fluids - Market Share 4 Our worldwide market share has demonstrated growth over the past decade Growth has been driven by independents, major international oil companies and national oil companies Market share was impacted by downturn in North America in 2009 but rebounded in 2010 2010 Worl
Slide 5: Technology
Technology 5 Focused on providing customized solutions for E&P operators to improve their drilling economics Offshore - Deepwater and Shelf Completed in early 2011 an offshore well for a major IOC in over 7000 feet of water Land - Conventional and Unconventional Formations Proprietary and Patented T
Slide 6: Technology
Technology 6 New water based system, Evolution(tm), used successfully in the U.S. shale plays Yields improved rate of penetration; reduced operating expense (rig time and waste disposal) Since beginning of 2010, 44 customers and almost 200 wells have used Evolution Won 2010 World Oil magazine innova
Slide 7: 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 7 NOC IOC Other
Slide 8: International Revenue Growth/Mix
International Revenue Growth/Mix Focused on driving towards more balance between North American and International revenues Why? To provide more stability; balance between natural gas (North America) and oil (International) Longer investment horizons (stability) 8 US Canada Brazil Europe & Africa
Slide 9: Fluids Systems and Engineering Scope of Operations - North America
Fluids Systems and Engineering Scope of Operations - North America 9 Serves most all North American basins Approximately 15% share of total U.S. markets served in 2010, up from 14% in 20091 Introducing Evolution(tm) for use in Barnett, Bakken, Eagle Ford, and Woodford Shales Approximately 16% share
Slide 10: Fluids Systems and Engineering Expanding Internationally
Fluids Systems and Engineering Expanding Internationally 10 Targeted markets Brazil: Petrobras and IOCs Italy, Algeria, Libya and Tunisia New market opportunities: Turkey, Egypt and the Middle East Rheochem acts as foundation for Asia Pacific expansion Short-term Growth Potential Long-term Growth Po
Slide 11: Penetrating Brazilian Offshore Market
Penetrating Brazilian Offshore Market 11 2nd largest drilling fluids capacity in Brazil Customers include Petrobras, XOM, Maersk, Anadarko and Alvorada 2010 revenue of $61 million, compared to $26 million in 2009 $20 million in Q1 2011 Taking steps to improve profitability Q1 2011 and Q4 2010 were p
Slide 12: Rheochem Acquisition
Rheochem Acquisition 12 Acquisition of Rheochem drilling fluids business closed on April 21, 2011 Australia New Zealand India Markets: Offshore Onshore Geothermal Coal Bed Methane Revenues of AUD$20.3 million in FY June 2010 and AUD$34.2 in FY June 2009 Initial purchase price of AUD$24 million with
Slide 13: Mats and Integrated Services
Mats and Integrated Services 13 Growth through new markets for mat rentals Northeast U.S. UK New environmental applications drove growth in 2010 Use of composite mats to minimize adverse impacts of land drilling For 2011, pursue Mats opportunities outside the northeast U.S. Domestically - Bakken Int
Slide 14: Environmental Services
Environmental Services 14 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 Impacted by Gulf of Mexico Moratorium in 2010 Recovery dependent o
Slide 15: First Quarter 2011
First Quarter 2011 Operating performance Total revenues of $203 million in Q1 2011, up 26% from a year ago and up 4% from Q4 2010 EPS of 16¢ in Q1 compared to 9¢ a year ago and 15¢ in Q4. Net income of $15.9 mm is highest reported quarterly net income in Newpark's history 14% sequential improvement
Slide 16: Capital Structure
Capital Structure 16 Solid balance sheet Debt/Capitalization ratio of 28.3% with Q1 2011 cash balances of $95 million Recent convertible notes offering matures in 2017 Convertible notes terms Interest rate of 4% Conversion price of $11.00 per share No financial covenants
Slide 17: Outlook
Outlook 17 Oil & gas liquids expected to drive U.S. drilling activity in 2011 We are participating in the move toward liquids Evolution(tm) Technology Continue deploying across North America Introduce to Europe and Asia Pacific Continue international growth - build on recent success in Brazil and Rh
Slide 18: Appendix
Appendix NYSE: NR Newpark Resources, Pie th
Slide 19: Financials
Financials [Newpark Resources, Ine ‘Conolidated Statements of Operations Wraudied) “Three Months Ended. Mar 31, December 31, March, {thousands excep per share dats) 2011, 2010 2010 Revenues S 194526 $160,798 Cost of revenues 152,879 133518 Selling general and administrative expenses ler wars ‘Other
Slide 20: Financials
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Slide 21: Financials
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Slide 22: Financials
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Slide 23: Experienced Leadership
23 Paul Howes President & CEO Jim Braun SVP & CFO Mark Airola SVP, GC & Admin Officer Bruce Smith President Fluids Systems and Engineering Jeff Juergens President Mats & Integrated Services & Environmental Services Bill Moss VP Corporate Strategy & Development 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, Exec. 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 was