Npk International Inc. · NYSE:NPKI
Npk International — Newpark Resources — Investor Presentation (February 2011)
24 slides from Npk International's investor presentation, Feb 22, 2011
Slide 1: Newpark Resources Presentation February 2011
Newpark Resources Presentation February 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
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, water depth of over 7,000 feet, for a Major IOC Land - Conventional and Unconventional Formations Proprietary and Pate
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) Won 2010 World Oil magazine innovation award for "Best Drilling, Completions & Production Fluids" Total 2010 reve
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 major North America basins; recently expanded to Marcellus and Bakken Shale Approximately 15% share of total U.S. markets served in 2010, up from 14% in 20091 Introducing Evolution(tm), our water-based system, for use in Bar
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 2010 Full-Year Revenue Mix: 71% North America 29% International Short-term Growth Potential Long-term
Slide 11: Penetrating Brazilian Offshore Market
Penetrating Brazilian Offshore Market 11 2nd largest drilling fluids capacity in Brazil with 8 service locations Customers include Petrobras, XOM, Repsol, Maersk and Anadarko 2010 full-year revenue of $61 million, compared to $26 million in 2009 Taking steps to improve profitability and align operat
Slide 12: Mats and Integrated Services
Mats and Integrated Services 12 Growth through new markets for mat rentals Marcellus UK New environmental applications drive growth in 2010 Use of composite mats to minimize adverse impacts of land drilling Higher asset utilization and 2009 cost structure initiatives helped drive higher margins in 2
Slide 13: Environmental Services
Environmental Services 13 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 going forward $10.5 million
Slide 14: Fourth Quarter 2010 Operating performance
Fourth Quarter 2010 Operating performance Total revenues of $194.5 million in Q4 2010, up 44% from a year ago and up 9% from Q3 EPS of 15¢ in Q4 compared to breakeven a year ago and 9¢ in Q3 $14.2 million sequential revenue increase in Brazil driven by greater product volume 13% sequential revenue g
Slide 15: Capital Structure
Capital Structure 15 Solid balance sheet Debt/Capitalization ratio of 29.5% with year end cash balance of $83 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 16: Outlook
Outlook 16 Gas prices to remain under pressure through 2011 We are participating in the move toward liquids Drilling Moratorium & Permitting Requirements Will continue to have an impact on our environmental services business Brazil will continue to experience revenue swings as operators finish wells
Slide 17: Appendix
Appendix NYSE: NR Newpark Resources, Inc. Ps rh
Slide 18: Financials
Financials [Newpark Resource, Ine. CContoldated Statements of Operations (raved) ‘Three Months Ended Year Ended Decamber3i, September 30, December3i, December 31, December ST, (In thousands, except pr share dala) 2010 2010 2009 2010 2009 Revenues S 14526 $172 $1355: «STIS95E $450.25 Cost oFrevenass
Slide 19: Financials
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Slide 20: Financials
Financials Newpark Resourees, Ine. Operating Segment Results (oavdied) ‘Three Months Ended December31, September 30, December 31, (Qn thousands) 2010 2010 2009 Revenues ‘Pid systems and engineering s legis Mado 113999 Mats andinograted services 20610 18,186 12397 Environmental services 11,105 12952
Slide 21: Financials
Financials Netincome Cow) Saas sos, ‘Adjustment to reconcile net income sto net cash provided ty operation: Depreciation and amortization 2010 ae Sto hse compensation expense 3876 3437 Provision for deferred income tes wias0 316) Provision for doubflaccouuts oe S308 {Gain oss on ale of ase as 233 ‘C
Slide 22: Experienced Leadership
22 Paul Howes President & CEO Jim Braun VP & CFO Mark Airola GC & Admin Officer Bruce Smith President Fluids Systems and Engineering Jeff Juergens President Mats & Integrated Services & Environmental Services Tom Eisenman President Excalibar Minerals LLC Bill Moss VP Corporate Strategy & Development
Slide 23: Management Biographies
Management Biographies 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, chemic
Slide 24: Management Biographies
Management Biographies 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
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