Npk International Inc. · NYSE:NPKI
Npk International — Newpark Resources — Investor Presentation (February 2012)
25 slides from Npk International's investor presentation, Feb 24, 2012
Slide 1: Newpark Resources Presentation February 2012
Newpark Resources Presentation February 2012
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 EMEA Latin America Asia Pacific
Slide 4: Drilling Fluids - Market Share
Drilling Fluids - Market Share 4 Demonstrated our ability to grow worldwide market share over the past decade Growth has been driven by independents, major international oil companies and national oil companies For 2011, projected to be the third largest drilling fluids provider in North America (ba
Slide 5: Technology
Technology 5 Focused on providing customized solutions for E&P operators to improve their drilling economics Offshore - Deepwater and Shelf In early 2011, completed an offshore well for a major IOC in over 7000 feet of water Land - Conventional and Unconventional Formations Proprietary and Patented
Slide 6: Technology
Technology 6 New water-based system, Evolution(tm), used successfully in the North American basins Yields improved rate of penetration; reduced operating expense (rig time and waste disposal) Since beginning of 2010, more than 600 wells have used Evolution; $67 million in revenues for 2011 Won 2010
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
Slide 8: International Revenue Growth/Mix
International Revenue Growth/Mix Focused on driving balance between North American and International revenues International expansion provides greater stability Longer investment horizons Lower concentrations in individual markets, reducing exposure to individual market dynamics 8
Slide 9: Fluids Systems and Engineering - North America
Fluids Systems and Engineering - North America 9 Serves most all North American basins, with majority of revenue coming from oil or liquids-related drilling Approximately 16% share of total U.S. markets served in 2011, including 17% share in shale markets1 Evolution(tm) presence expanding in Barnett
Slide 10: Fluids Systems and Engineering - EMEA
Fluids Systems and Engineering - EMEA 10 Core Markets Italy, Algeria, Tunisia, Romania Near-Term Growth Markets Hungary, Kurdistan (Iraq), Spain, Poland, Turkey Despite loss of Libya revenue, region exceeded 2010 Near-term Growth Markets
Slide 11: Fluids Systems and Engineering - Latin America
11 2nd largest drilling fluids capacity in Brazil Taking steps to improve profitability Expand work with IOCs Focus on proprietary products such as DeepDrill Looking to expand beyond Brazil Fluids Systems and Engineering - Latin America
Slide 12: Fluids Systems and Engineering - Asia Pacific
12 Acquisition of Rheochem drilling fluids business in April 2011 Australia New Zealand India Markets: Offshore Onshore Geothermal Coal Bed Methane Purchase price of $29 million with one-year earn out potential based on EBITDA up to maximum additional $20 million (at current exchange rates) Contribu
Slide 13: Mats and Integrated Services
Mats and Integrated Services 13 New environmental applications drove growth in 2010 and 2011 Use of composite mats to minimize adverse impacts of land drilling Growth through new markets for mat rentals and sales Northeast U.S. Bakken International Broadening Rental Customer Base Moved mats out of N
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 Permitting Delays Replaced $10 million
Slide 15: Fourth Quarter and Full Year 2011
Fourth Quarter and Full Year 2011 Operating performance Record revenues of $264 million in Q4 2011, up 1% from Q3 2011 and up 35% from a year ago EPS of 22¢ in Q4 compared to 23¢ in Q3 and 15¢ a year ago Record full year 2011 revenues of $958 million, surpassing previous record of $858 million (2008
Slide 16: Capital Structure
Capital Structure 16 Solid balance sheet Debt/Capitalization ratio of 27.8% Cash balance of $25 million at December 31, 2011 Convertible notes terms Interest rate of 4% Conversion price of $11.00 per share No financial covenants Matures 2017
Slide 17: Outlook
Outlook 17 Oil & gas liquids driving U.S. drilling activity We are participating in the move toward liquids Evolution(tm) Technology Continue deploying across North America Continue international growth - build on recent success in Brazil and Rheochem acquisition Work to re-deploy available mats to
Slide 18: Appendix
Appendix NYSE: NR Newpark Resources, Inc.
Slide 19: Financials
Financials NYSE: NR Newpark Resources, Inc.
Slide 20: Financials
Financials NYSE: NR Newpark Resources, Inc. [§PX)
Slide 21: Operating Segment Results
Financials Newpark Resources, Ine. Operating Segment Results Woauiied) ‘Three Months Ended December31, September30, December 31, {An thousands) 2011 2011 010 Revenues Fits systems and engineering S S616 S$ 2BIL 79 20610 Totalrevemves “S Operating income (loss) his systems and engineering S SoH S Mat
Slide 22: Financials
Financials Neve Kearse NYSE: NR Nownark rescues, nc
Slide 23: Experienced Leadership
23 Paul Howes President & CEO Gregg Piontek VP & CFO Mark Airola SVP, GC & Admin Officer Lee Ann Kendrick VP, Human Resources Bruce Smith President Fluids Systems and Engineering Jeff Juergens President Mats & Integrated Services & Environmental Services 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 Lee Ann Kendrick, Vice President, Human Resources: Lee Ann joined Newpark in January 2012 as Vice President of Human Resources. Prior to joining Newpark, Ms. Kendrick was responsible for human resources for The Americas with Lloyd's Register, a risk management and safety as
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