Npk International Inc. · NYSE:NPKI
Npk International — Newpark Resources — Investor Presentation (October 2010)
22 slides from Npk International's investor presentation, Oct 4, 2010
Slide 1: Newpark Resources Presentation October 2010
Newpark Resources Presentation October 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 ServicesEnvironmental ServicesCustomers:Oil and Gas IndustryKey geographic markets: North America North AfricaEuropeBrazil
Slide 4: Drilling Fluids - Market Share
Drilling Fluids - Market Share 4 Our worldwide market share has demonstrated growth over the past decadeMarket share growth was impacted by downturn in North America in 2009Growth has come with independents, major international oil companies and national oil companies Source: Spears & Associates - D
Slide 5: Technology
Technology 5 Focused on providing customized solutions for E&P operators to improve their drilling economicsOff-shore - Deepwater and ShelfLand - Conventional and Unconventional FormationsProprietary and Patented TechnologyHigh Performance Water Based SystemsHigh Performance Synthetic Based SystemsT
Slide 6: 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 6 2006 Fluids Systems & Engineering Revenue NOCIOCOther 2010 First-Half Fluids Systems
Slide 7: International Revenue Growth/Mix
International Revenue Growth/Mix Focused on driving towards a 50/50 ratio of North American revenues to international revenueWhy?To provide more stability; balance between natural gas (North America) and oil (International)Longer investment horizons (stability) 7 2006 Fluids Systems & Engineering Re
Slide 8: Fluids Systems and Engineering Expanding Internationally
Fluids Systems and Engineering Expanding Internationally 9 Targeted marketsBrazil: Petrobras and IOCsItaly, Algeria, Libya and TunisiaNew market opportunities: Turkey, Angola, Egypt and the Middle East2010 First-Half Revenue Mix: 73% North America 27% International Short-term Growth Potential Long-t
Slide 9: Penetrating Brazilian Offshore Market
Penetrating Brazilian Offshore Market 10 2nd largest drilling fluids capacity in Brazil with 8 service locationsCustomers include Petrobras, XOM, Repsol, Maersk and Alvarado2010 first-half revenues of $26.3 million, compared to $6.3 million in same period of 2009Taking steps to improve profitability
Slide 10: Mats and Integrated Services
Mats and Integrated Services 11 Growth through new markets for mat rentalsMarcellus ColoradoUKNew environmental applications drive first-half 2010 growthUse of composite mats to minimize adverse impacts of land drillingHigher asset utilization and 2009 cost structure initiatives helped drive higher
Slide 11: Environmental Services
Environmental Services 12 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 Moratorium going forwardGulf coast E&P volum
Slide 12: Q2 2010 Summary
Q2 2010 Summary Operating performance continues to improveTotal revenues of $181 million in Q2 2010, a 13% increase from Q1 2010EPS of 12¢ in Q2 compared to 9¢ in Q1 Gulf of Mexico$2.7 million of revenue related to spill activities in Q27% of consolidated revenue in the first half of 2010 from areas
Slide 13: Capital Structure
Capital Structure 14 Strong balance sheet; debt reduced $3 million in 2010 while activity has increased Recent convert offering$150 million with a 4% coupon (15% underwriter option)Conversion price of $11.00 per share, conversion premium of 36% over 9/28/10 closing priceMatures in October 2017
Slide 14: Summary & Market Outlook: 2010
Summary & Market Outlook: 2010 15 Strong performance in all three segmentsU.S. land market good with uncertainty in the Gulf of MexicoContinued strength will be driven by natural gas prices, storage levels and demandPricing in fluids is firming upWe expect the Gulf Moratorium to reduce Q3 2010 reven
Slide 15: Appendix
Appendix NYSE: NR Newpark Resources, Inc. Pe cxmerai0
Slide 16: Financials
Financials Newpark Resources, Ine. (Consolidated Staewent of Operations (Gnanited) ‘Thue Mmihs Ended SixMontle Ended ‘Fae, March], Fue 30, Fane 30, June, (Gnthousands, exept pershase data) 2010 ‘010 2009 210 2009 Revemes d wise $ mm $ mm F 3M $ BRT Cost ofrevemes 1as9 Insta 1oasos zeal ma Selling, g
Slide 17: Financials
Financials ‘Sofia aretha Sit (tom weet ene) it a py teeta Sieben mt ‘Magar AND CREDLE TE Cooma fog Peart eager en Sinemet NYSE: Newpark Resources, In
Slide 18: Financials: Operating Segment Results
Financials Newpask Resources, Ine. Operating Segment Results (Dnauited) ‘Thee Mons Ended (nthensand) Fue 30, 2010 March31, 2010 Sune 30, 2009 Revemes Phils systens and exgiccag 8 ims $ rss e962 Mats and integrated serves 16581 13620 368 Evwizermetal serves 1 ogee nia Teal revues g iia2 jane 108: Ope
Slide 19: Financials
Financials anne ex os) oo = am, » rr meareneuapernecaapes ertnemeta ce ctu pate Can ndeut opera ctbgianeperpetad NYSE: Newpark Resources, In
Slide 20: Experienced Leadership
21 Paul Howes President & CEO Jim Braun VP & CFOMark Airola GC & Admin OfficerBill Moss VP Corporate Strategy & Development Interim President Mats & Integrated Services & Environmental ServicesBruce Smith President Fluids Systems and EngineeringTom Eisenman President Excalibar Minerals LLC Experienc
Slide 21: 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 22: 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
Newpark Resources — Investor Presentation (October 2010) on 6ix