NPK International Inc. · NYSE:NPKI
NPK International — Newpark Resources — Investor Presentation (August 2012)
27 slides from NPK International's investor presentation, Aug 7, 2012
Slide 1: Newpark Resources Presentation August 2012
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Slide 2: Forward-Looking Statements
Forward-Looking Statements 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 future
Slide 3: Company Overview
Company Overview First Half 2012 Revenue > Specialized provider of: $508 million » Fluids Systems and Engineering 12% 2% » Mats and Integrated Services > Environmental Services 83% > Customers: » Oiland Gas Industry Ill Fluids Systems and Engineering Mats and Integrated Services » Key geographic mar
Slide 4: Drilling Fluids — Market Share
Drilling Fluids — Market Share ¢ ES > 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 providerin North Ame
Slide 5: Technology
Technology » Focused on providing customized solutions for E&P operators to improve their drilling economics » Offshore- Deepwater and Shelf » Deepdrill® 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
Slide 6: Evolution®
Evolution® > 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 ass
Slide 7: Evolution
Evolution > After 2010 introduction in the Haynesville shale, we have since expanded into most North American basins. Total Revenue from Evolution wells 30 28 0 Q3 10 O410 QUIN Q211 Q3Il O41 QI 12 212 NYSE: NR First Half 2012 Revenue by Region m East Texas 12% = Mid-Continent Permian . m Rockies 17%
Slide 8: Customer Support
Customer Support > 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 Energy
Slide 9: Customer Revenue Mix
Customer Revenue Mix > Growth with lOC’s and NOC’s > Results of strategic shift started in 2006 » Focus on lOC’s and NOC’s > Why? » Less competition versus independents » Longer investment horizons (stability) » Longer-term contracts NYSE: NR Newpark Resources, Inc. 2006 Fluids Systems & Engineering
Slide 10: International Revenue Growth/Mix
4, International Revenue Growth/Mix a er > 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 NYSE
Slide 11: Fluids Systems and Engineering - North America
Fluids Systems and Engineering - » Pm | 7 & North America > Serves most all North American North American Revenues basins, with majority of revenue 600 $568 $585 mull Year coming from oil or liquids-related ~ eae drilling E66 #5 : P Approximately 14% share of “g 300 1 total U.S. markets served in fi
Slide 12: Fluids Systems and Engineering - EMEA
Fluids Systems and Engineering - EMEA >» Core Markets Core » Italy, Algeria, Tunisia, Romania as a > Near-Term Growth Markets i Near-term ; » Hungary, Kurdistan (Iraq), Spain, roe - Poland, Turkey > Region revenue growth continues despite loss of Libya revenue in 2011 EMEA Revenues 150 $123 e Su6 ga
Slide 13: Fluids Systems and Engineering - Latin America
Fluids Systems and Engineering - Latin America > 24 largest drilling fluids capacity in Brazil Ld > Taking steps to improve /ALVORADA PETROLEO profitability and stability @nadarig' » Expand work with lOCs a » Focus on proprietary products such as DeepDrill > Looking to expand beyond Brazil Mnere Lat
Slide 14: Asia Pacific
Asia Pacific > Acquisition of Rheochem drilling fluids business in April 2011 » Australia » New Zealand Fluids Systems and Engineering - » > India > Offshore contract ramping up in second half 2012 Asia Pacific Revenues Santos 30 $25 mFull Year y ¢ Ei v a First Half ya £ & s g *° $18 3 = cor Oe os 0
Slide 15: Mats and Integrated Services
> New environmental applications drove growth in recent years » Use of composite mats to minimize adverse impacts of land drilling > Revenues include sale of DuraBase™ composite mats and rentals » Mat sales nearly doubled from 2010 to 2011, primarily into international markets » Rental revenues bala
Slide 16: Environmental Services
Environmental Services > Processes and disposes Environmental Services Revenues of E&P waste a > Non-hazardous oilfield waste gag. ful Year $62 60 = is = First Half A axe irst Hal > Leading market position 0 in U.S. Gulf Coast ° » Uses low pressure injection ‘ Sl 427 technology bp 5 » Waste disposed
Slide 17: Second Quarter 2012
Second Quarter 2012 > Revenues of $246 million in Q2 os 2012 mmtevenue leh) . >» Up 6% from prior year Q2 —OperatingIncom e (right) >» Down 6% prior quarter — primarily due to Canada seasonality 200 » EPS of 15¢ in Q2 compared to 16¢ in Q1 and 19¢ a year ago Revenue ($ millions) (suoljug) auicou) Su
Slide 18: Capital Structure
Capital Structure Solid balance sheet Capital Structure - June 30, 2012 » Debt/Capitalization ratio of $ in millions 32.3% Convertible Senior Notes $ 172.5 » Cash balance of $29 million omer | Debt at otal Del at June 30, 2012 Cae aye » Increase in debt driven by Total Capitalization 3 _ TAA delays
Slide 19: Oil & gas liquids driving U.S. drilling activity
P Oil & gas liquids driving U.S. drilling activity >» Weare participating in the move toward liquids » Evolution Technology » Continue deploying across North America and into international markets » Continue international growth - build on recent success in Brazil and Rheochem acquisition > Work to
Slide 20: Appendix
Appendix o NYSE: NR Newpark Resources, Inc. fem
Slide 21: Financials
Financials ‘Newpark Resources, Ine. Concolilated Statements of Operations (Crantited) ‘Three Maths Ered SisMundhe Eade fe, M2], me, ine30, sme, (a thousands exceptpershare dat) 2012 2012 20 2012 201 Revemes ee a Cosofrevames mis 29m ween. 16935 398 Selig, genenlend siminbtrtivespanses 99H 2138 aa na
Slide 22: Financials
Financials NYSE: NR Newpark Reeurces ie (Conectidsed Balance Sheets Uinended) Fume, Decender 21, (thousands er ept share data) 2012 2011 ASSETS Cash and cash equivabnts 5 mm 8 asa Racedrbles nt 3916 32590 Inventors mnep20 spp Defemedtanieeet wan Baw Prepaid epences and other cument assets nagar wee
Slide 23: Financials
Financials Newpark Resources, Inc. Operating Segment Results (Unaudited) Three Months Ended June 30, March 31, June 30, (In thousands) 2012 2012 2011 Revenues Fluids systems and engineering $ 202388 «= $= 218496. $191,205 Mats and integrated services 30,071 30,533 27,793 Environmental services 13,29
Slide 24: Financials
Financials Newpark Resources, in: (Concolidated Statement of Cath Flows Unaudited) SixMandhe Ended June 30, (nthousands) 2012 2011 Cash lous fromoperating 2c Netircone sme $ Rt ‘Adjustivents to econ net income to vet cash povided by operations Deprciatinand ancrtzation 15808 1575 Stockbased conpersa
Slide 25: Experienced Leadership
Experienced Leadership >» 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 NYSE: NR New
Slide 26: Management Biographies
Management Biographies PaulL. 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, chemicals
Slide 27: Management Biographies
Management Biographies 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 assur
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