Trailing P/E: 9.5
2013 P/E: 9.1
Small-cap Newpark Resources (NYSE:NR) is an interesting hodgepodge of various oilfield services that work well together. The company operates in three main segments: Fluids Systems and Engineering, Mats and Integrated Services, and Environmental Services.
While the mats and environmental divisions provide stable cash flows, its drilling fluids division is where the real action is.
This business segment provides products and services for technically difficult drilling projects, i.e. horizontal, directional and deepwater drilling. Proper drilling mud and fluids can mean the difference between profiting from a well or not. As one of the standard providers of fluids, Newpark can be found in most areas of U.S. drilling activity, including onshore Texas and Louisiana, the Mid-Continent and in the many burgeoning unconventional shale plays of North America.
As of this writing, Aaron Levitt did not hold a position in any of the aforementioned securities.