Newpark Resources Profile
Newpark Resources, Inc. is a geographically diversified supplier providing environmentally-sensitive products, as well as rentals and services to customers across multiple industries.
Segments
The company operates through two segments: Industrial Solutions and Fluids Systems.
Industrial Solutions
Industrial Solutions segment provides temporary worksite access solutions, including the rental of the company's recyclable composite matting systems, along with related site construction and services to customers in various markets, including power transmission, oil and natural gas exploration and production (E&P), pipeline, renewable energy, petrochemical, construction and other industries, primarily in the United States and United Kingdom. The company also sells its manufactured recyclable composite mats to customers around the world, with power transmission being the primary end-market.
Fluids Systems
Fluids Systems segment provides drilling and completion fluids products and related technical services to customers for oil, natural gas, and geothermal projects primarily in North America and Europe, the Middle East and Africa (EMEA), as well as certain countries in the Asia Pacific. Over the past few years, the company's primary focus within Fluids Systems has been the transformation into a more agile and simplified business focused on key markets, while monetizing assets in underperforming or sub-scale markets and reducing its invested capital, particularly in the U.S.
In 2023, the company exited its stimulation chemicals product line, certain operations for offshore Australia, and its Latin America operations in Chile. In June 2023, the company initiated a review of strategic alternatives for the long-term positioning of the Fluids Systems division, and in September 2023, the company launched a formal sale process for substantially all the Fluids Systems business as part of this strategic review.
Strategy
The company's strategy is to simplify its business model and accelerate Industrial Solutions growth.
Segments
Industrial Solutions
The company's Industrial Solutions segment provides temporary worksite access solutions, including the rental of its recyclable composite matting systems, along with related site construction and services to customers in various markets, including power transmission, E&P, pipeline, renewable energy, petrochemical, construction and other industries, primarily in the United States and United Kingdom (72% of 2023 segment revenues represented rental and service). The company also manufactures and sells its recyclable composite mats to customers around the world, with power transmission being the primary end-market (28% of 2023 segment revenues represented product sales).
Technology
The company has patents related to the design and manufacturing of its recyclable DURA-BASE mats and several of the components, as well as other products and systems related to these mats (including the connecting pins and the EPZ Grounding System), although certain key patents expired in 2020. Using proprietary technology and systems is an important aspect of its business strategy. In 2023, the company launched its newest generation matting system, the DURA-BASE 800 series, which fully integrates into its DURABASE format and offers a nearly 15% reduction in weight.
Competition - The competitive landscape for composite mat sales is less fragmented than rental and services, with only a few competitors providing various alternatives to the company's DURA-BASE composite mat products, including Signature Systems Group and Spartan Mat.
Customers - The company's customers are principally utility companies, infrastructure construction companies, and oil and natural gas E&P companies operating in the markets that it serves. During 2023, approximately 67% of the company's segment revenues were derived from its 20 largest segment customers. The segment also generated 93% of its revenues domestically during 2023. Typically, the company performs services either under short-term contracts or rental service agreements.
Fluids Systems
Fluids Systems segment provides drilling and completion fluids products and related technical services to customers for oil, natural gas, and geothermal projects primarily in North America (52% of 2023 segment revenues) and EMEA (44% of 2023 segment revenues), as well as certain countries in Asia Pacific. The company offers customized solutions for complex subsurface conditions, such as horizontal, directional, geologically deep, or drilling in deep water. These projects require high levels of monitoring and technical support of the fluids system during the drilling process. Over the past few years, the company's primary focus within Fluids Systems has been the transformation into a more agile and simplified business focused on key markets, while monetizing assets in underperforming or sub-scale markets and reducing its invested capital, particularly in the U.S.
Competition - Globally, the company faces competition from larger companies, including Halliburton, SLB, and Baker Hughes, which compete vigorously on fluids performance and/or price.
Technology -The company owns patent rights in a family of high-performance water-based fluids systems, which it markets as Evolution and DeepDrill systems, which are designed to enhance drilling performance while also providing a variety of environmental benefits relative to traditional oil-based fluids. In addition, the company has developed the TerraTherm water-based fluids system designed specifically for clean-energy geothermal drilling. The company also relies on a variety of unpatented proprietary technologies and know-how in many of its applications.
Customers - The company's customers are principally major integrated and independent oil and natural gas E&P companies operating in the markets that it serves. During 2023, approximately 52% of segment revenues were derived from the company's 20 largest segment customers, of which its largest customer represented 11% of its segment revenues. The segment also generated 40% of its revenues domestically during 2023. In North America, the company primarily performs services either under short-term standard contracts or under master service agreements. Internationally, some customers issue multi-year contracts, but many are on a well-by-well or project basis.
History
Newpark Resources, Inc. was founded in 1932 as a Nevada corporation. The company was incorporated in 1932. In 1991, the company changed its state of incorporation to Delaware.
