Npk International Inc. · NYSE:NPKI
Npk International — Newpark Resources — Investor Presentation (November 2010)
23 slides from Npk International's investor presentation, Nov 16, 2010
Slide 1: Newpark Resources Presentation November 2010
Newpark Resources Presentation November 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 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 Source: S
Slide 5: Technology
Technology 5 Focused on providing customized solutions for E&P operators to improve their drilling economics Off-shore - Deepwater and Shelf Land - Conventional and Unconventional Formations Proprietary and Patented Technology High Performance Water Based Systems High Performance Synthetic Based Sys
Slide 6: Customer Revenue Mix Growth with IOC's and NOC's
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 6 2006 Fluids Systems & Engineering Revenue NOC IOC Other 2010 First Nine Months
Slide 7: International Revenue Growth/Mix
International Revenue Growth/Mix Focused on driving towards a 50/50 ratio of International revenues to North American revenues Why? To provide more stability; balance between natural gas (North America) and oil (International) Longer investment horizons (stability) 7 2006 Fluids Systems & Engineerin
Slide 8: Fluids Systems and Engineering Scope of Operations - North America
Fluids Systems and Engineering Scope of Operations - North America 8 Serves major North America basins; recently expanded to Marcellus and Bakken Shale Approximately 16% share of total U.S. markets served in first nine months 2010, up from 14% in 20091 Evaluating new formulations of Evolution(tm), o
Slide 9: Fluids Systems and Engineering Expanding Internationally
Fluids Systems and Engineering Expanding Internationally 9 Targeted markets Brazil: Petrobras and IOCs Italy, Algeria, Libya and Tunisia New market opportunities: Turkey, Egypt and the Middle East 2010 First Nine Months Revenue Mix: 73% North America 27% International Short-term Growth Potential Lon
Slide 10: Penetrating Brazilian Offshore Market
Penetrating Brazilian Offshore Market 10 2nd largest drilling fluids capacity in Brazil with 8 service locations Customers include Petrobras, XOM, Repsol, Maersk and Anadarko 2010 first nine months revenues of $37 million, compared to $15 million in same period of 2009 Taking steps to improve profit
Slide 11: Mats and Integrated Services
Mats and Integrated Services 11 Growth through new markets for mat rentals Marcellus Colorado UK New environmental applications drive first nine months 2010 growth Use of composite mats to minimize adverse impacts of land drilling Higher asset utilization and 2009 cost structure initiatives helped d
Slide 12: Environmental Services
Environmental Services 12 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 Gulf coast vol
Slide 13: Capital Structure
Capital Structure 13 Strong balance sheet; debt reduced more than $23 million in first nine months of 2010 Recent convert offering Provides financial flexibility going forward $172.5 million with a 4% coupon Initial conversion price of $11.00 per share Matures in October 2017 Capital Structure - Sep
Slide 14: Third Quarter 2010 Operating Performance
Third Quarter 2010 14 Operating performance Total revenues of $179 million in Q3 2010, up 52% from a year ago and down 1% from Q2 2010. Q3 earnings negatively impacted by foreign exchange loss and higher tax rate; EPS of 9¢ and compares to breakeven a year ago and 12¢ in Q2; Gulf of Mexico Revenues
Slide 15: Outlook
Outlook Gas prices to remain under pressure through 2011 Drilling Moratorium & Permitting Requirements Will have impact on our business Frac service bundling expected to have a minor impact on our business Evolution Technology Technology of the Year Award Transfer technology to new basins 15 (1) Sou
Slide 16: Appendix
Appendix NYSE: NR Newpark Resources, Inc. ss
Slide 17: Consolidated Statements of Operations
‘Newpark Resourees, Ine. ‘Consolidated Statements of Operations (Unaudited) ‘Three Months Ended Tepiember30, June 30, September 30, {in thousands, except per share data) 2010 2010 2009 Revenues S 179278 -§ 181352 $118,208 Cost of revenues 145,224 145,299 103,985 Selling, general and administrative e
Slide 18: Financials
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Slide 19: Operating Segment Results
"Newpark Resources, Ine ‘Operating Segment Results (Wnaudited) ‘Three Months Ended. (Gn thousands September 30,2010 June 30, 2010 _September 30, 2009 Revenues Fluid systems and engineering s 14840 $s 150534 99421 ‘Mats and incgratd services 18186 16981 157% Environmental services 12982 13837 Total r
Slide 20: Cash flow statement
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Slide 21: Experienced Leadership
21 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 22: 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 23: 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
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