Offshore staff
THE WOODLANDS, Texas – Newpark Resources, Inc., reports that it has completed previously announced transactions which effectively provide for the company’s exit from the Gulf of Mexico market.
The two completed transactions include the sale of substantially all assets associated with the Newpark’s Gulf of Mexico completions fluids operations, as well as a separate transaction, through which the company has entered a seven-year sublease of its Fourchon, Louisiana, drilling fluids shorebase and blending facility with a leading global energy services provider.
Both of these transactions include the assignment or sublease of the underlying properties that remain subject to the final approval of the local port authority.
As a result of these transactions, the company received approximately $6 million of cash from the sale of the completions fluids assets in 4Q 2022 and expects to generate additional cash of nearly $25 million over the next few quarters, primarily associated with the ongoing wind-down of working capital.
Matthew Lanigan, Newpark’s President and Chief Executive Officer, stated: “The completion of these transactions reflect significant steps in transforming Fluids Systems into a more agile, capital-light business model, capable of stronger free cash flow generation and returns moving forward. As we look ahead, we plan to focus our energy on executing our disciplined growth strategy, including the acceleration of our growth in the utilities sector, while also continuing to return excess cash generation to shareholders through additional share repurchases.”
12.28.2022
