Slide 1: Newpark Resources Presentation August 2011
Newpark Resources Presentation August 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 North AfricaEuropeBrazilAsia Pacific
Slide 4: Drilling Fluids - Market Share
Drilling Fluids - Market Share 4 Our worldwide market share has demonstrated growth over the past decadeGrowth has been driven by independents, major international oil companies and national oil companiesMarket share was impacted by downturn in North America in 2009 but rebounded in 2010 2010 Worldw
Slide 5: Technology
Technology 5 Focused on providing customized solutions for E&P operators to improve their drilling economicsOffshore - Deepwater and ShelfCompleted in early 2011 an offshore well for a major IOC in over 7000 feet of water Land - Conventional and Unconventional FormationsProprietary and Patented Tech
Slide 6: Technology
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, 66 customers and more than 300 wells have used EvolutionWon 2010 World Oil magazine innova
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 towards more balance between North American and International revenuesWhy?To provide more stability; balance between natural gas (North America) and oil (International)Longer investment horizons (stability) 8 USCanadaBrazilEurope & 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 20091Introduced Evolution(tm) for use in Barnett, Bakken, and Eagle Ford Shales; expanding into MarcellusApproximate
Slide 10: Fluids Systems and Engineering Expanding Internationally
Fluids Systems and Engineering Expanding Internationally 10 MarketsItaly, Algeria, Tunisia and RomaniaNew market opportunities: Turkey, Egypt, Kurdistan (Iraq), Congo and the Middle EastBrazil: Petrobras and IOCs; looking to expand in South AmericaRheochem acts as foundation for Asia Pacific expansi
Slide 11: Penetrating Brazilian Offshore Market
Penetrating Brazilian Offshore Market 11 2nd largest drilling fluids capacity in BrazilCustomers include Petrobras, XOM, Maersk, Anadarko and Alvorada2010 revenue of $61 million, compared to $26 million in 2009$37 million in first half 2011Taking steps to improve profitability Expand work with IOCsF
Slide 12: Rheochem Acquisition
Rheochem Acquisition 12 Acquisition of Rheochem drilling fluids business closed on April 21, 2011Australia New ZealandIndiaMarkets:OffshoreOnshoreGeothermalCoal Bed MethaneInitial purchase price of $26 million with earn out potential based on EBITDA up to $22 million, at current exchange ratesContri
Slide 13: Mats and Integrated Services
Mats and Integrated Services 13 Growth through new markets for mat rentalsNortheast U.S.UKNew environmental applications drove growth in 2010 and 2011Use of composite mats to minimize adverse impacts of land drillingNear term reduction in revenuesLargest customer reducing number of mats used on loca
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 Moratorium in 2010Recovery dependent on pace
Slide 15: Second Quarter 2011
Second Quarter 2011 Operating performanceRecord revenues of $231 million in Q2 2011, up 14% from Q1 2011 and 27% from a year agoEPS of 19¢ in Q2 compared to 16¢ in Q1 and 12¢ a year ago. Net income of $19.3 million is highest reported quarterly net income in Newpark's historyFluids revenues in U.S.
Slide 16: Capital Structure
Capital Structure 16 Solid balance sheetDebt/Capitalization ratio of 27.3% Cash balances of $64 million at June 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 expected to drive U.S. drilling activity in 2011We 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 avail
Slide 18: Appendix
Appendix NYSE:NR Newpark Resources, Inc. i eal
Slide 19: Financials
Financials Wamiitea) ‘Three Months Ended Fane 30, 2010 $ wgst $itas 159.902 145299 1sai 16360 un (203) mgs 19396 333 0213) 2251 2308 25368 esti Provision forincome taxes Netincome Income per common share - basi son oe $0 oon Jncome per common share - dilated (1) sus oe $0 oO (1) in calculating diate
Slide 20: Newpark Resources, Inc. ha
NYSE:NR Newpark Resources, Inc. ha
Slide 21: Financials - Operating Segment Results
Financials Newpark Resources, Inc. Operating Segment Results (Craudited) Three Months Ended Tune 30, March 31, Tune 30, (in thousands) 2011 2011 2010 Revenues Fluids systems and engineering s Mats and integrated services Environmental services Totalrevenves Operating income (loss) Fluids systems and
Slide 22: Financials
Financials Newpark Resources, Inc.
Slide 23: Experienced Leadership
23 Paul Howes President & CEO Jim Braun SVP & CFOMark Airola SVP, GC & Admin OfficerBruce Smith President Fluids Systems and EngineeringJeff Juergens President Mats & Integrated Services & Environmental ServicesBill 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, 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