Paulie claims NP is in excellent financial shape, consider the REAL facts:
Newpark has $160m in long term debt
$85m of the $160m is due Dec 2021 - not too far off
Currently $40-50m in liquid assets.
It gets worse: the $40-50m currently in bank is solely due to the sale of NESI. Newpark hasn’t made any substantial net profit in over 5 years. In fact fluids has been a huge drain on NP. With the current and near future declining rig count to 400+, it will be a minimum of 12-18 months before we see any improvement in NA rig count and very possibly 24 months. With that, a considerable amount of AR becomes uncollected which impacts NP further.
They can sale off assets (Katy) but then more op-ex follows. One thing for certain, debt is debt. Companies with considerable cash and low debts will survive, as for the others all bets are off.
One thing is certain, NP doesn’t have the pre 2015 cushion (profitability) to fall back on. PH and DP-newbie have their work cut out for them. I can guarantee to not go long, short this POS