Slide 1: Newpark Resources Presentation June 2012
Newpark Resources Presentation June 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 Deepdrill(r) water-based system used extensively in Brazil's deepwater market In early 2011, completed our deepest offshore well for a major IOC in over 7000 fe
Slide 6: Evolution system performance vs. oil based mud
6 Award-winning Evolution system continues to demonstrate superior performance vs. oil based mud Higher lubricity Improves rate of penetration Increases length of lateral sections Minimizes days on well Environmentally friendly Reduces disposal cost for cuttings Reduces associated environmental spre
Slide 7: Evolution
Evolution 7 After 2010 introduction in the Haynesville shale, we have since expanded into most North American basins.
Slide 8: Customer Support
Customer Support 8 Focused on backing our leading technology with superior customer support Over 600 fluids technicians customize and deliver our technology worldwide Advanced training programs for fluid technicians continue to enhance product and service knowledge Newpark recognized by EnergyPoint
Slide 9: 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 9
Slide 10: 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 10
Slide 11: Fluids Systems and Engineering - North America
Fluids Systems and Engineering - North America 11 Serves most all North American basins, with majority of revenue coming from oil or liquids-related drilling Approximately 15% share of total U.S. markets served in first quarter 2012, including 18% share in shale markets1 Taking actions to manage ope
Slide 12: Fluids Systems and Engineering - EMEA
Fluids Systems and Engineering - EMEA 12 Core Markets Italy, Algeria, Tunisia, Romania Near-Term Growth Markets Hungary, Kurdistan (Iraq), Spain, Poland, Turkey Region revenue growth continues despite loss of Libya revenue Near-term Growth Markets
Slide 13: Fluids Systems and Engineering - Latin America
13 2nd largest drilling fluids capacity in Brazil Taking steps to improve profitability and stability Expand work with IOCs Focus on proprietary products such as DeepDrill Looking to expand beyond Brazil Fluids Systems and Engineering - Latin America
Slide 14: Fluids Systems and Engineering - Asia Pacific
14 Acquisition of Rheochem drilling fluids business in April 2011 Australia New Zealand India Offshore contract to begin second quarter 2012 Fluids Systems and Engineering - Asia Pacific
Slide 15: Mats and Integrated Services
Mats and Integrated Services 15 New environmental applications drove growth in recent years Use of composite mats to minimize adverse impacts of land drilling Revenues include sale of DuraBase(tm) composite mats and rentals Mat sales nearly doubled from 2010 to 2011, primarily into international mar
Slide 16: Environmental Services
Environmental Services 16 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 Gulf recovery depende
Slide 17: First Quarter 2012
First Quarter 2012 Revenues of $262 million in Q1 2012, down 1% from Q4 2011 and up 29% from a year ago EPS of 16¢ in Q1 compared to 22¢ in Q4 and 16¢ a year ago U.S. results negatively impacted by increased costs and shortage of barite, along with cost inefficiencies associated with rapid transitio
Slide 18: Capital Structure
Capital Structure 18 Solid balance sheet Debt/Capitalization ratio of 30.8% Cash balance of $30 million at March 31, 2012 Increase in debt driven by delays in customer invoicing following recent ERP system conversion in U.S. fluids business $50 million share re-purchase program initiated in the firs
Slide 19: Outlook
Outlook 19 Oil & gas liquids driving U.S. drilling activity We are participating in the move toward liquids Evolution(tm) Technology Continue deploying across North America Continue international growth - build on recent success in Brazil and Rheochem acquisition Work to maximize rental utilization
Slide 20: Appendix
Appendix NYSE: NR Newpark Resources In. nas
Slide 21: Financials
Financials ons NYSE: NR Newpark Resources, Inc.
Slide 22: Financials
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Slide 23: Operating Segment Results
Financials ‘Newpark Resources, Inc. Operating Segment Results (Cnaudted) ‘Three Months Ended March 31, December31, Maren 31, 2012 1 (a thousands) Revenues Fluids systems and engineering s Mats and integrated services Environmental services Totalrevenues “S$ s S26sig “S251 Operating income (1oss) Flu
Slide 24: Financials
Financials ath andcah eu std NYSE: NR Newpark Res urces, Inc,
Slide 25: Experienced Leadership
25 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 26: Management Biographies
Management Biographies 26 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 27: Management Biographies
Management Biographies 27 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