Ladies and gentlemen, thank you for standing by and welcome to the Newpark Resources’ Fourth Quarter Earnings Conference Call. During today’s presentation, all participants will be in a listen-only mode. Following the presentation, the conference will be open for your questions (Operator Instructions). Today’s conference is being recorded, February 15, 2013. I would now like to turn the conference over to Ken Dennard of Dennard-Lascar Associates. Please go ahead.

Thank you Alicia, good morning everyone. We appreciate you joining us for the Newpark Resources conference call today to review 2012 fourth quarter and full year results. We’d also like to welcome our Internet participants listening to the call as it’s being simulcast over the Web. Before I turn the call over to management, I have the normal housekeeping details to run through. For those of you who did not receive an email of the release yesterday and would like to be added to the distribution list, please call the Dennard-Lascar offices at 713 529-6600, and provide us your contact information or you can email me at the contact information from the press release. There will be a replay of today’s call. It will be available as webcast for 90 days at www.newpark.com. There is also a telephonic recorded replay which will be available through March 1 2013, and that information for access is in the yesterday’s release. Please note that the information reported on this call speaks only as of today, February 15, 2013, therefore, you are advised that time-sensitive information may no longer be accurate as of the time of any replay listening. In addition, the comments made by management today of Newpark during this call may contain forward-looking statements within the meaning of the United States Federal Securities laws. These forward-looking statements reflect the current views of management of Newpark. However, various risks, uncertainties and contingencies could cause Newpark’s actual results, performance or achievements to differ materially from those expressed in the statements made by management. Listeners are encouraged to read the Company’s annual report on Form 10-K, its quarterly reports on Form 10-Q and current reports on Form 8-K to understand certain of those risks, uncertainties and contingencies. And now, with that said, I’d like to turn the call over to Newpark’s President and CEO, Mr. Paul Howes. Paul?

Thank you, Ken and good morning to everyone. We would like to thank you for joining us today for our fourth quarter 2012 conference call. With me today are Bruce Smith, President of our Drilling Fluids business, and Gregg Piontek, our Chief Financial Officer. Following my opening remarks, Bruce will provide an update on our Fluids business and Gregg will discuss the Mats and Environmental Services businesses, as well as the consolidated financial results of the quarter. I will then conclude with a discussion of market outlook before opening the call for Q&A. Let me begin by stating how pleased I am that Newpark was able to achieve an all time high in total revenues for the full year of 2012 surpassing the $1 billion mark for the first time in our Company’s history. This important milestone was achieved through contributions from all segments including record revenue levels from our Fluids and Mats businesses along with solid revenue growth from environmental services. We’re very proud to have reached this important milestone. This achievement is the result of our strategic efforts to expand the Company’s presence in domestic and international growth markets as well as our emphasis on new technology. By acquisition of Alliance Drilling Fluids in December represents the most recent example of our expansion strategy. Alliance immediately increases our presence in the Permian Basin and Eagle Ford, and our focus on water-based technology, makes them a natural fit with our own Fluids business. We are excited to have the Alliance team join the Newpark family. Internationally, the continued expansion of our global reach has long been a pillar of Newpark’s growth strategy, and has served us extremely well over the years. When I first joined Newpark in 2006, revenues from outside North America were about $62 million and made…

Thank you Paul and good morning everyone. Just a recap in the fourth quarter the Fluids Systems & Engineering segment generated revenues of $229 million, representing an 8% sequential increase and 4% year-over-year. As Paul stated this was a new record quarter for fluids revenues. North American revenues were up 2% sequentially to $154 million, although the fourth quarter was down 6% on a year-over-year basis. The sequential increase was driven primarily by a 22% revenue increase from Canada, which outpaced the 14% increase in the Canadian rig count. On a year-over-year basis, the fourth quarter Canadian revenues were lower, as the Canadian rig count is off more than 20% from prior year levels. Looking ahead, we expect the usual seasonal ramp up from Canada in the first quarter although it remains dependent on the timing of spring breakup. In the U.S., the revenues for the quarter were $141 million, up slightly from both the prior quarter and year-over-year, revenues compared favorably to the 5% sequential decline in the U.S. rig count, largely due to $6 million of revenue generated from the deepwater Gulf of Mexico project. I will note that since this well has not been completed, we expect revenues from the U.S. to be lower in the first quarter, excluding the contribution from our Alliance acquisition. Our mid-continent completion services and equipment rental business continues to face challenges due to the heightened levels of competition in this region. During the fourth quarter, we took additional actions to right size the business, which include workforce reductions, the impairment of certain assets along with the continued reallocation of assets to other regions. As a result, our fourth quarter includes about 900,000 in charges associated with these actions. Our International Fluids business posted excellent results in smaller regions as total international…

Thank you, Bruce, and good morning everyone. I’ll begin by discussing the results of our Mats business, before moving on to the environmental services business and finishing with our consolidated results. The Mats business reported $27 million in revenues for the quarter, a decline of 24% sequentially, a 9% year-over-year. The Mats segment generated operating income of $10.8 million in the fourth quarter, down 32% from the third quarter and 7% year-over-year. Operating margin in the fourth quarter was 40.8%. This compares to 45.6% margin in the third quarter and a 39.7% margin in the same quarter a year ago. As you may recall, during the third quarter call, we emphasized the return of our Mats sales to historical levels after achieving record sales that benefited from a large sale into the utility industry, along with the benefit of increased mat rentals from the Summer Olympics. During the third quarter, the impact of these items helped to offset the downward trend in the U.S. rental market, driven by declining activity and increased competition, primarily due to the non-recurring sale in the third quarter, mat sales were down about 35% sequentially to $13.3 million. Our mat rental revenues were down about 8% sequentially with increases in the Northeast and Gulf Coast being offset by a decline in the Rocky’s and the UK. As Paul mentioned earlier, we are making good progress on our new spill containment system, which we discussed on prior calls. We continue to develop and refine the system and as customer interest is high, we expect additional spill containment sites to be deployed before the end of the first quarter. In anticipation of this, we will be allocating more of our near-term DURA-BASE mat production to our spill containment fleet, leaving fewer mats available for sale to customers.…

Thanks, Gregg. We’re very pleased to finish 2012, with record revenues exceeding $1 billion a major milestone in our Company’s history. When the new management team joined Newpark seven years ago, revenues were approximately $530 million. In seven years, we have increased revenues by over $500 million, representing a 10.1% compound annual growth rate, over the same period net income has increased from $24 million to $60 million, representing a 14.1 compound annual growth rate. A vast majority of these gains have come from global expansion and market share gains. I’m very proud of the organization and company we have built, but it’s just the beginning. Through continued investment in technology and people, we expect our future to be even brighter. Our drilling fluids business is increasingly recognized as the technology leader as customers appreciate the benefits of our high-performance water-based Evoluation system. To-date the Evoluation system had drilled over 7 million feet in just three years; with most occurring at unconventional formations, recently we were successful in unbundling a bundled service contract, held by a competitor with a major natural gas producer in North-America. This is another testament to the success of the Evolution system and the value E&P operators place on superior water-based systems over traditional oil-based mud. We know performance matters and Newpark is committed to offering customers differentiated products and services that offer real value. While our operating margins in the Fluids business have proved from the third quarter to 7.7%, we still have work to do to fill our goal of achieving double-digit margins, but we’re confident we are on the right path. In our Mats business, we’re excited by our new spill containment system and the initial customer feedback. We expect to see our spill containment system gain traction over the course of the…

Thank you. Ladies and gentlemen, we’ll now begin the question-and-answer session. (Operator Instructions) And our first question comes from the line of Jim Rollyson with Raymond James. Please go ahead. James M. Rollyson – Raymond James & Associates, Inc.: Good morning guys.

Good morning Jim. James M. Rollyson – Raymond James & Associates, Inc.: Paul, I know your longer-term kind of goal is on the Fluids margin is to trend back towards the low to hopefully eventually mid-double digit range though this kind of shorter-term thinking, where we look into the first quarter, it seem likes you’ve got the Gulf of Mexico benefit, you have last quarter that maybe doesn’t repeat and you mentioned Brazil probably will be a little bit softer quarter-over-quarter. Canada probably stable, the U.S. onshore business probably a little bit better, this with budgets renewing and everything. How we think about margins in the first quarter just in relation to the fourth quarter, do you think all these moving parts get you to stable margins in 4Q or do you think they come off a little bit before they build back up in next of the year.

This is Bruce, I’ll take that. What we are seeing so far is stability, I think we’re not seeing anything heading or trending downwards from the fourth quarter at this point. James M. Rollyson – Raymond James & Associates, Inc.: Okay, very helpful. Then for a follow-up, Paul when you guys roll about Evolution, it’s just kind of slow process, it’s built into a really nice business for you. How do you think about this spill containment system in terms of maybe timing, and ability to move the needle on the mats business, is a kind of add-on to the crazy strong margins, you’ve had consistently for a while now?

Well, the needle on the mats business, we like obviously where it is today. Again, we’re going to roll out the spill containment system similar to what we’ve done in Evolution, very methodical in how we approach the marketplace, ensure success one side at a time. And so we will continue to update the market as we make progress over the next several quarters. James M. Rollyson – Raymond James & Associates, Inc.: And it’s not a short-term benefit; it’s over time you think?

I would say it’s a longer-term benefit. Again, the marketplace and we really got to gain some acceptance though again, the initial installations we are getting some very positive feedback from customers, but we need more time to really hone in on the value.

This is Gregg. the other thing that I would add there is we’ve talked quite a bit over the past several quarters about the margin compression and competitiveness, and the spill containment system is another step towards trying to maintain the margins and help prevent for the erosion. James M. Rollyson – Raymond James & Associates, Inc.: Great, good color. Thanks guys.

Thanks, Jim.

Our next question comes from the line of Neal Dingmann with SunTrust. Please go ahead. Neal Dingmann – SunTrust Robinson Humphrey: Good morning gentlemen, nice quarter. Hey Paul, for you or Bruce, maybe just two quick ones, first, could you talk a little bit just on Evolution of the water-based business now with Alliance, what’s your thinking, you’ve seen it’s kind of nice steady ramp with Evolution even pre-aligned from their water business. What do you foresee maybe Paul, for you or Bruce, just kind of bigger picture by maybe late this year, what kind of percentage that water-based could be contributing?

This is Bruce, I’ll take that. At the moment, what we’re doing with Alliance is we’re following a sort of fundamental integration plan right now, and part of that integration plan of course includes looking at the different technologies they have and marrying that with the technologies that we have, but obviously as we go forward in the year, we want to begin to solidify some of the Alliance engineering folks on our Evolution system, and until we do, it’s difficult to move forward with Evolution until everybody understands the same way. So we are in the process of doing that type of integration now, and we feel that lead technologies that Alliance can bring to us and Evolution staff they will bring to them, we’d be hope to benefit from that later on this year. Neal Dingman – SunTrust Robinson Humphrey: All right, that’s great. And just one Paul, a little bit separately just again, for you or Paul, Bruce, just wondering on the Gulf of Mexico obviously was great contributor but on a couple of the segments there, was wondering now when you see how you see that shape up, it looks likes obviously offshore, a lot of big things still expect for the reminder of the year, and do you continue to see a greater ramp there than you do onshore and international, or how do you kind of view, I guess if I look at sort of the three segments U.S. onshore, Gulf and international, if you kind of look at each of those segments, how you see kind of growth divided?

Well, just generally speaking about the Gulf of Mexico, obviously as rigs will come back, permits are increasing, but the number of new wells being drilled or still I think below what pre-Macondo levels are. So we do expect to see increased activity there that we’ll probably have more of a direct benefit on environmental business to begin with. Longer-term as you know, our strategy has always been to penetrate the deepwater Gulf of Mexico with drilling fluids. We have a very successful deepwater business down in Brazil, and over the long period, we plan to reverse leverage that into the Gulf of Mexico. U.S. land again, see we think we’re going to see some modest improvements there in the oil and liquid-rich plays, certainly the Alliance acquisition is right in that sweet spot. So we should hope to see some growth there. Internationally, putting aside any unrest in North Africa, we would expect to see our international revenues growing drilling fluids.

Thank you. Our next question comes from the line of Michael Harrison with First Analysis. Please go ahead. Michael J. Harrison – First Analysis Securities Corp.: Hey, good morning.

Good morning.

Good morning, Mike. Michael J. Harrison – First Analysis Securities Corp.: Maybe Paul or Gregg, can you talk about how much annual cost savings you would expect from the mid-continent completion restructuring efforts?

At this point in time, it’s pretty early to tell. We talked about the costs that were incurred in the period that took out a fairly healthy portion of the workforce there. But overall in the grand-schema thing, it’s not a real significant piece to the overall fluids.

My take on it, Mike is that, we’re taking the actions that were necessary in the fourth quarter and now it’s more about focusing on sales, growing the top line. Michael J. Harrison – First Analysis Securities Corp.: And can you maybe talk a little bit about what you’re seeing in terms of any raw material pressures, I know barite has been an issue for the last few quarters and maybe talk a little bit about what you’re seeing in terms of fluids pricing overall in the context of raw materials?

Yeah. I’ll cover the barite question, and I’ll let Bruce handle the Drilling Fluids in general. But on the barite side, we’ve seen it stabilizing market in terms of the costs coming out of China. So I don’t see any real changes or any major fluctuations there. Michael J. Harrison – First Analysis Securities Corp.: Okay. In regard to pricing pressure within Drilling Fluids, certainly some in the U.S. market undoubtedly. But part of our response to that of course is to provide Evolution to the industry, which isn’t subject to the same pricing pressure.

Thank you. Our next question comes from the line of Jeff Spittel with Global Hunter Securities. Please go ahead. Jeff D. Spittel – Global Hunter Securities LLC: Thanks. Good morning, folks.

Good morning. Jeff D. Spittel – Global Hunter Securities LLC: Maybe if you can start-off with the Alliance integration and just getting a sense you’re kind enough to provide an update on revenues and operating income for the full year ‘11 in the press release initially. Can you give us a sense of how that worked in 2012 just so we have a little better sense in that model?

Yeah. It’s Gregg, I’ll take that. Obviously, with any business in this nature, your activity levels kind of ebb and flow on a quarter-to-quarter basis, based on the specific customer concentrations you have and their activities et cetera, but ultimately the business that we acquired in December, the profile is pretty consistent with that revenue level that we had disclosed for 2011 year, so not significantly different. Jeff D. Spittel – Global Hunter Securities LLC: Okay, that’s great. And then maybe just kind of digging in on the profits footprint I’m not particularly familiar what end of the market that they traffic in. Could you give us a little bit of flavor for exactly where they and how they approach that market?

As you can imagine the new segment for us, we only have the business about 45 days, basically their distribution business of ceramic proppants, but beyond at this point, we’re not providing additional color. We’re still trying to understand the business and what kind of value we can bring to our customers.

Thank you. Our next question comes from the line of Stephen Gengaro with Stern Agee. Please go ahead. Stephen D. Gengaro – Sterne, Agee & Leach, Inc.: Thank you, good morning guys. Can you give us any more color; I know you gave some Alliance numbers in the press release for 2011. Should we assume sort of did what your fluids business in North-America did in ’12 to get a kind of run rate into ’13 or maybe better because the regions they were in specifically.

Yeah, I mean as I mentioned a minute ago, where that business is running today is not significantly different from that 2011 levels.

So 2012 very close in terms of the 2011 run rate.

Yeah. Stephen D. Gengaro – Sterne, Agee & Leach, Inc.: Okay, great and some margin perspective, are they kind of neutral to your progress towards double-digit or helpful?

In overall as we had disclosing those 2011 numbers, you see the operating income was running a little stronger than what our fluids business had done, so to that extent ignoring the fact that you do have some costs that you bring the business together, it would be a natural lift modest lift to our margins.

Thank you. Our next question comes from the line of John Allison with BB&T Capital Markets. Please go ahead. John A. Allison – BB&T Capital Markets: Good morning guys. Thanks for taking my questions.

You bet. John A. Allison – BB&T Capital Markets: I know that you mentioned that revenues internationally are expected to increase, but didn’t recent North American drilling market weakness, are you looking towards increasing your operations overseas, to realize better volume and margins especially in the emerging markets, and if so, what are some of the hurdles and some of the threats that you might face in getting exposure there.

Well certainly on of our strategic initiatives since 2006 was to expand our presence internationally, because it gives weighting to sometimes the volatility in the North American market, so yes we will continue to push aggressively into the international markets as we see opportunities, and in terms of hurdles, it’s hard to describe those are really is more country-by-country, depending on which continent you are on, so yes we would expect to continue to move into new countries and see revenues grow in 2013 internationally. John A. Allison – BB&T Capital Markets: Okay. And one last one in regards to your future uses of cash, do you expect to continue to new share buybacks is a viable option, and how is this comparing in your mind M&A debt reduction organic growth et cetera.

The share buybacks are always part of the equation, but when we’re looking at our cash flow being generated in our opportunities for investment, we look first towards both organic investment in the Company as well as our M&A type opportunities to the extent that our cash flow afford this the ability then that’s where share buybacks come into play as well.

Thank you, our next question comes from the line of (inaudible). Please go head

Hi, good morning gentlemen.

Good morning

Looking at the Fluids growth quarter-over-quarter, could you talk to the delta, it sounds like most of that was due to international growth, but could you speak to how much of that was Evolution versus your more conventional fluids.

Evolution was pretty flat quarter-over-quarter and the big uptick most of the uptick was in the international part of the business as I described earlier, and driven really by very strong Continental Europe in the quarter, was the main difference.

As well the Brazil work, the IOC project that was mentioned earlier that was another piece that provided some healthy revenues in the fourth quarter.

Okay, great, and then getting back to Alliance acquisition when we look at that based of the 2011 numbers look like you picked up a pretty good asset at a decent price, how do you think that that the purchased price shaped up versus other deals that you’re seeing out there recently?

We very pleased with that what we able to accomplish by our shareholders like the multiple, that’s really good multiple.

Thank you. (Operator Instructions) And our next question comes from the line of Bill Dezellem with Tieton Capital Management. Please go ahead. Bill Dezellem – Tieton Capital Management: Thank you, relative to the spill containment rental revenues, when would you anticipate that they would surpass, what is the lost DURA-Mat sales and I guess part of that question is that the correct question or is the correct question when will you be expanding you capacity to allow you can have the capacity to sell through event.

I think the second part of your question is the right one, is it again if we see the continued success is the roll out of the spill containment system that certainly would open up opportunities to expand our capacity plan. Bill Dezellem – Tieton Capital Management: And the timing in which you would anticipate making that decision and how long it will take to implement the decision.

Yeah in terms of when those decisions would be made that’s probably premature at this point, but any kind of the plant capacity you can take to 12 to 18 months to expand the plant of this size.

Thank you. Our next question comes from the line of Tom Nowak with Advent Capital. Please go ahead. Tom Nowak – Advent Capital: Hi good morning. Not to beat the dead horse, but just back to the Alliance margins, when I pro forma you guys, Newpark’s standalone versus combined with Alliance, and the numbers you provided I get a 75 basis point uplift to your fluid margins, but it doesn’t seem like that’s what’s you’re thinking from 1Q, so can you help me out there.

Well like I had mentioned earlier, this first half, the first quarter, we have a fair amount of integration effort that’s going on, and that brings with some costs in order to bring them in combined systems et cetera. So that’s why in the near-term, you don’t see that full benefit, but we would expect that over time, we would start to see the real benefits in the synergies associated with it. Tom Nowak – Advent Capital: Okay. And then sorry if I missed this, but magnitude of the decline in mats revenues, are you thinking double-digits here, or should we be annualizing 4Q revenue numbers to look to ‘13 or what kind of help us out a bit with the order of magnitude of decline in mats revenues?

Well, going out. When you go out several quarters, it becomes obviously a lot more difficult to estimate the backlog and our mats sales tends to be relatively short. So taking the fourth quarter level and annualizing it, it’s pretty tough to say, but we do expect Q1 to be down from the Q4 levels, I would say at least $4 million, but that also depends somewhat on the timing of orders whether things get slowed at Q1, Q2 et cetera. So it’s a bit tough to tag that cut-off point.

Thank you. Our next question comes from the line of John Allison with BB&T Capital Markets. Please go ahead. John A. Allison – BB&T Capital Markets: I wanted to ask another question based on the elevated cost of barite and I wanted to see how effectively you’re able to pass these higher costs on to your customers or is it actually putting some downward pressure on your profitability?

This is Bruce. It certainly puts at the moment some downward pressure on profitability and our ability to pass on to the customers is reasonable, we managed to do it, but there is a time lag, there is always a time lag, by the time you approach the customer with the price increase, and by the time he ultimately accepts it.

But as I mentioned earlier too, we’ve seen barite pricing stabilize, so it’s not increasing right now. John A. Allison – BB&T Capital Markets: Got you, okay and one last one recently we’ve heard from other service company that drilling efficiency is becoming a larger theme especially in North America, and I want to know if this drive towards more efficient operations, is actually a positive theme for the Mats business like for example our operators opting to use Mats at their drilling sites as opposed to not using a Mats in order to increase their efficiency.

John, let me give it two parts, first on drilling efficiency, we hope we’re driving force behind that with Evolution because we’re driving a significant amount of efficiency on every well with Evolution, related to the Mats business certainly we think there is some opportunities there, I don’t know that efficiency has any negative impact it’s more the environmental aspect, the regulations that continue to grow that product line.

Although to the extent that you can use the system like there is still containment to help offset the amount of aggregate et cetera, you’re reducing the amount of time it takes them to set up a well.

Thank you. I’m showing no further questions in the queue at this time. I’d like to turn the conference back to management.

Thank you. We’d like to thank you once again for joining us on this call and for your interest in Newpark Resources. We look forward to talking to you again after the conclusion of our first quarter. Thank you.