On Jul 6, Zacks Investment Research upgraded
Newpark Resources Inc.
) to a Zacks Rank #1 (Strong Buy).
DAWSON GEOPHYS (DWSN): Free Stock Analysis
EXTERRAN PTNRS (EXLP): Free Stock Analysis
NEWPARK RESOUR (NR): Free Stock Analysis
TOTAL FINA SA (TOT): Free Stock Analysis
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Why the Upgrade?
The product and service provider to the oil and gas exploration
industry delivered positive earnings surprises in three out of
the last four quarters with an average beat of 3.8%.
With the international drilling market heating up, Newpark
Resources has succeeded in winning quite a few contracts, thanks
to its quality of products and services. In Jun 2013, Newpark
Resources opened a state-of-the-art Laboratory Facility in Katy,
Texas which will further ensure the supply of technically
advanced products to its clients.
The company is scheduled to release its second quarter earnings
in the latter half of this month. Newpark Resources' performance
during the quarter indicates that it will again beat expectations
In Apr 2013, Newpark Resources received a two-year contract from
a unit of
) to provide drilling fluids and related services for a series of
wells planned in the Campos Basin. The company won another
contract from an oil major to supply drilling fluids and related
services for a series of wells to be drilled in the Black Sea.
In May 2013, Newpark Resources received a contract from the
Kuwait Oil Company to provide drilling fluids and related
services for land operation. This contract can generate $75
million for the company, depending upon the activity of its
These contracts show a steady demand for its products in both
inland and offshore operations. In addition, consistent
performance from the company enables it to reward its
shareholders. The board of directors has again approved a $50
million share repurchase program for 2013 following the $50
million repurchased in 2012.
The Zacks Consensus Estimate for 2013 and 2014 are 81 cents and
99 cents per share respectively. This reflects year-over-year
growth of 22.35% and 22.91% in 2013 and 2014 respectively.
Besides Newpark Resources, other operators in the sector having a
favorable Zacks Rank and are
Exterran Partners, L.P.
Dawson Geophysical Company
). Both these companies currently retain a Zacks Rank #1 (Strong