E N D U R A N C E NEWPARK 2016 ANNUAL REPORT Throughout 2016, our endurance was tested like never before. We rose to the challenge. We grew stronger. While Newpark responded to market conditions, we remained focused on our long-term strategies. This focus produced results. We expanded internationally, gained market share and entered new markets. We built out capabilities and capacities, reduced expenses and strengthened the balance sheet. Newpark is built to endure. T H E D E S I G N O F E N DU RA N CE Built for the ages G R E AT PYR AM I D O F G IZA At Newpark, we draw immense inspiration from the world’s most iconic examples of endurance. Perhaps the ultimate of these is the Great Pyramid of Giza. Construction experts postulate that 200,000 skilled craftsmen meticulously placed 2.3 million granite and limestone blocks into place over 20 years, finishing around 2,500 BC. The pyramid stands today much as it did then. While we do not equate Newpark’s 85-year run to that of the pyramid, we admire and seek to emulate this ancient wonder’s enduring design. We have exercised care and discipline in building our company to grow and thrive for the long term. Our investments are driving our ability to advance technologies, expand business, and ensure our strategies will stand the test of time. T H E N ATU RE OF E N DURANCE Longevity against unrelenting assaults T H E G I A N T S E QU O I AS Sequoias are one of the largest living organisms on Earth and can stand their ground for 3,000 years. Their colossal trunks and massive branches give them the stability of a skyscraper and the balance of a ballet dancer. Sequoias naturally withstand fires, storms, disease and other onslaughts of their environment. Bombarded by threats, they endure. This historic down cycle has significantly impacted Newpark, but it is in our DNA to stand strong. We have developed technologies that elevate us above the commodity offerings that make other companies vulnerable. Our differentiated products help withstand the challenges of weakening markets. We operate with unwavering determination, working to be the best in breed within each market that we participate. T H E S PI R IT O F E N DU RANC E The strength of focus S U M M I T I N G E V E R E ST Since 1921 humans have attempted to conquer Mount Everest. Battling capricious weather, deadly crevasses, avalanches, 200-mph winds and oxygen deprivation, eight expeditions failed. Finally in 1953 Edmund Hillary and Tenzing Norgay, supported by an intensely determined team, at last stood atop the 29,029-foot peak. To this day every successful summit is an astonishing display of endurance. Inspired by these legendary triumphs, Newpark too is relentlessly focused on reaching its goals against all odds. Over the past year, we faced the most challenging economic conditions in our industry’s history, leading to hundreds of business failures. Newpark refused to succumb. We were unwavering in planning and executing our strategies. We kept our focus on our ultimate objectives and we have endured. Surviving an economic downturn is, to a large degree, staying the course and doing what made you strong in the first place. But clearly there’s more. It takes vision, responsiveness, and a commitment to stay vital. To advance. To grow. To endure. Responding to the Market Commitment to our core Operate with utmost safety Newpark achieved record safety results in 2016, with a total recordable incident rate of 0.35, beating our previous record from 2015. Record-setting safety results are particularly impressive when cost and personnel reductions are occurring. But at Newpark, it is engrained into our culture to look out for one another and to improve. Keep the long-term vision in focus Despite the most economically challenging market environment we have ever faced, Newpark did not deviate from its strategies. While many companies in our sector were going on life support, pulling back from markets and shutting down regions, we expanded and gained market share. Make strategic investments Develop superior technologies Through the downturn we continued to make strategic capital investments. In 2016, we completed our new fluids manufacturing facility in Texas and will soon complete our Gulf of Mexico shorebase expansion in Louisiana, making Newpark the clear leader in developing, producing and delivering the highest quality fluids systems to support our expanding global E&P customer base. We continue to launch differentiated products in both fluids and mats. In 2016, we launched Dura-Base® EPZ Grounding SystemTM, a proprietary grounded matting system that elevates worksite safety in the electric transmission and distribution markets. Across our product lines, Newpark was awarded four patents in 2016. Protect the balance sheet Regardless of the market cycle, Newpark is prudent in its capital deployment decisions. We only make investments that clearly further our long-term strategies without straining our financial position. During difficult times, this discipline has protected our company and our shareholders. International Expansion A key to our future Albania Algeria Kuwait Uruguay Chile Oman One of the key elements in our international strategy is the focus on national and international oil companies, who continued to develop energy despite temporary commercial market conditions. This approach has been vital to Newpark. Our work for Kuwait Oil Company and Sonatrach in Algeria provided stability for our business throughout the down cycle. In 2016, we built upon those successes, with new contracts in Albania, Chile, Oman and Uruguay. We continue to pursue key NOC and IOC business around the world. International Revenues ($Millions) $300 $250 $200 $150 $100 $50 $0 2012 2013 2014 2015 2016 Fluids Systems Leadership in every aspect With every new product launched and customer project completed, Newpark solidifies its position as the global technology leader in fluids. For example, in 2016 when Total was planning to drill offshore Uruguay in over 11,200 feet of water, a world record depth, they turned to Newpark. They trusted our products, services and technical expertise when drilling such a challenging and ambitious well. Total lauded the project as an operational success. Commitment to Service We believe that leading in service goes hand- in-hand with leading in technology. During the downturn we did not compromise our delivery. We maintained the highest quality personnel and continued to serve all the regions where our customers need us. Developing Technology Operators worldwide must find ways to achieve operating efficiencies to make their drilling investments viable. We continue to help them by introducing new fluids technologies, most recently our Kronos™ and Fusion™ lines. Expanding Market Share By remaining focused on our customers’ needs, we achieved a record market share in North America during 2016. Newpark has emerged as the second largest provider of drilling fluids on the continent, a position that will provide meaningful benefit as the market recovers. 2016 Revenues by Region APAC/EMEA 43% United States 38% Latin America 11% Canada 8% Mats and Integrated Services Strategy driving growth Diversifying and differentiating Newpark has accelerated its penetration into the power transmission and distribution markets. We have structured our business to serve these customers and have developed superior patented products to differentiate ourselves. Increased R&D capability Our Mats R&D Center gives us the capability to continually develop the next generation of value- added, temporary worksite solutions. Combined with our increased manufacturing capacity, we are well-equipped to establish a leadership position in every market we serve. Our mat fleet as an advantage We have the largest fleet of composite mats in North America, and combined with superior logistics, it positions us advantageously to meet customers’ worksite needs. Further, our mats are constructed with fully recyclable raw materials, limiting the maintenance capital requirements to support the fleet. Newpark has continued to pursue opportunities beyond its traditional oil and gas customer base. As the upstream market fell sharply over the past two years, this strategy was proven out. In 2016, over 70% of our mats revenue came from industries outside of oil and gas exploration. We have won new customers and built new stability into our mats business. And as hydrocarbon exploration and production recovers, we remain poised to serve these markets as we always have. 2016 Revenues by Market NAM Exploration 29% NAM Non-Exploration 52% Int’l Non-Exploration 19% Financial Strength Maintaining Discipline While we are encouraged by signs of recovery in commodity markets, Newpark will continue to take a measured approach. We will maintain our strong financial structure, closely managing our discretionary capital and operating expenses. Upon a base of financial stability, we will continue to pursue our long-term strategies – building out our capabilities, expanding our differentiated offerings, going where our customers need us to be, and serving an increasing share of our markets. Financial Highlights Total Revenues (Millions) Mats Revenues (Millions) $1,200 $1,000 $800 $600 $400 $200 $0 $160 $120 $80 $40 $0 Fluids Revenues (Millions) $1,000 $750 $500 $250 $0 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 International North America Net Debt (1) (Millions) $220 $165 $110 $55 $0 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 (1)Net Debt = Total Debt - Cash TO OUR SHAREHOLDERS Newpark entered 2016 facing one of the most challenging economic environments in our company’s history. Commodity prices continued to decline and rig counts sunk to all-time lows. We are pleased to report that Newpark endured. In fact, we not only endured, we took action to strengthen our company and our competitive position on multiple fronts. In the second half of 2016 we saw the first signs of a recovery in oil and gas markets, as North American rig counts began to increase. We believe the hard work and positive steps we have taken during the down cycle will reap rewards for our company and our shareholders in the market recovery. Strengthening Our Foundation Newpark revenues in 2016 were $471 million, a 30% decrease from 2015. While we never want to experience a down year, these results reflected favorable performance relative to the overall declines seen across the oil and gas industry. We took the necessary steps to reduce our expenses and aggressively manage our working capital. We consolidated facilities, streamlined the structure of our regions, right-sized our inventories and converted our receivables to cash. We also continued the staffing reductions we began in 2015 and executed salary reductions throughout our North American operations. This was a difficult undertaking for the entire Newpark family, but we believe the worst of the downturn may be behind us. As business picked up in late 2016 we have had the opportunity to bring some of our team members back to Newpark. Moving into an improving atmosphere in 2017, our discipline remains, with our annualized North American operating expenses running approximately $40 million lower than they were a year ago. Additionally throughout 2016, while companies in our space were becoming more vulnerable, we were resolute in our determination to protect the balance sheet. Through prudent capital management we were able to continue to fund our long-term strategic investments and emerge from the year in a position of strength. We closed 2016 with $88 million in cash and modest leverage. We refinanced and retired $89 million of our pending debt maturities and put into place a new $90 million asset-based credit facility, an important achievement in an environment where liquidity had all but dried up for many. Newpark stands upon a solid financial foundation that can well support our strategies for growth. Our discipline protected the company through the downturn, and as the recovery gains momentum, we are in a better position than ever to lead and grow. Building Our Competitive Advantage In 2016, Newpark reached two significant milestones in our recent strategic capital projects. Early in the year, we completed our fluids manufacturing facility and distribution center, significantly improving our ability to produce consistent high-quality, differentiated technologies and upgraded our capabilities for new product development and delivery. In the third quarter, we also completed phase one of our Gulf of Mexico deepwater shorebase facility expansion in Port Fourchon, Louisiana, which generated its first revenue in 2016. With this investment we have surpassed our competitors’ capabilities in terms of loadout rates for offshore vessels supporting deepwater drilling projects, where every minute saved reflects cost savings for our customers. The upgraded facility gives Newpark immediate inroads to the important Gulf of Mexico deepwater market, which is dominated by major IOCs, and it gives us a competitive edge against the largest oilfield service companies in the world. The second and final phase of the upgrade will be completed in early 2017. Regardless of market conditions, our strategic capital investments have been a priority for Newpark. They are vital components in our long-term vision for continued technological leadership, service superiority, and sustainable growth. Increasing Our Value to Customers Another pillar of our strategy is to step above commodity offerings and differentiate Newpark through constant innovation. We continued to develop and commercialize new products throughout 2016. We qualified our Kronos™ suite of synthetic-based fluid systems with key deepwater customers, a system specifically developed to solve the unique challenges of deepwater drilling. We acquired Pragmatic Drilling Fluids Additives in Canada, a critical partner in the development of our Fusion™ fluids, adding valuable R&D talent to our bench for developing new fluids chemistries. In our mats business, we launched our patented Dura-Base® EPZ Grounding System™, providing contractors in the electric power transmission and distribution industry a new level of safety on the worksite. EPZ, along with our existing mats technologies, has allowed Newpark to diversify beyond our traditional oil and gas customer base and enter sizable infrastructure markets, including electrical transmission and distribution, pipeline, solar, petrochemical and construction industries. In 2016, over 70% of our mats revenue came from outside exploration markets, and while overall mats revenues were down, our advanced offerings continue to demand strong margins, delivering a segment operating margin of nearly 20%. Geographically, Newpark is more diversified than ever. Despite extreme economic strain in North America, Newpark remained committed to serving its home base, and we have now taken over the number two spot in drilling fluids market share for the North America land market. Overseas, we expanded market share with key NOC customers in Kuwait and Algeria, entered a new contract with Shell in Albania and expanded into Oman. We provided the drilling fluids services to support Total as they drilled in world-record water depths offshore of Uruguay. We also won a five-year contract with ENAP in Chile, a testament to our superior ability to help operators drill in challenging horizontal applications. Facing Our Future We believe the worst of the downturn is behind us, and Newpark stands poised for improved financial performance. As markets recover and the capital budgets of our customers are unlocked, the most complex exploration and completion projects in unconventional formations and deepwater environments will re-commence. These projects are where Newpark shines. We are increasingly acknowledged by prominent operators around the world as a technological leader in helping to solve the toughest drilling challenges. Add to that our reputation for service quality, and Newpark is well positioned to prosper in the improving environment. Regardless of the speed of the recovery, Newpark will continue to do what it always does. We will manage our capital judiciously and remain focused on our strategies. We will continue to build our capabilities, develop new technologies, diversify our markets, and expand internationally. Given the historically difficult conditions we faced, we are proud of our performance in 2016. We are most proud, however, of our achievements in safety. We improved on our previous record from 2015, with a total recordable incident rate of 0.35, well below the industry average. Looking out for each other and our customers is the cornerstone of our culture and we will continue to strive for improvements every day. In closing, we would like to thank our shareholders for your confidence in Newpark. We thank our customers for entrusting their critical projects to our expertise. Finally, we thank our employees for never wavering in their dedication to safely serving our customers. Your commitment, ultimately, is the greatest reason Newpark endures. David C. Anderson Chairman of The Board Paul L. Howes President and Chief Executive Officer DIRECTORS CORPORATE INFORMATION DAVID C. ANDERSON ANTHONY J. BEST G. STEPHEN FINLEY PAUL L. HOWES RODERICK A. LARSON DR. JAMES W. MCFARLAND GARY L. WARREN Chairman of the Board, Newpark Resources, Inc., Chief Executive Officer, Anderson Partners Retired President and Chief Executive Officer, SM Energy Company Retired Senior V.P., Finance and Administration and Chief Financial Officer, Baker Hughes Incorporated President and Chief Executive Officer, Newpark Resources, Inc. President and Chief Operating Officer, Oceaneering International, Inc. Rolanette and Berdon Lawrence Distinguished Chair in Finance, A.B. Freeman School, Business at Tulane University Retired Senior V.P., President, Drilling and Well Services Division, Weatherford International, Ltd. NEWPARK RESOURCES, INC. CORPORATE HEADQUARTERS 9320 Lakeside Blvd., Suite 100 The Woodlands, TX 77381 INVESTOR RELATIONS CONTACT BRIAN FELDOTT Director, Investor Relations Phone: 281-362-6800 Fax: 281-362-6801 E-mail: bfeldott@newpark.com AUDITORS DELOITTE & TOUCHE LLP Houston, Texas TRANSFER AGENT AMERICAN STOCK TRANSFER & TRUST COMPANY 6201 Fifteenth Avenue 3rd Floor Mail Room Brooklyn, New York 11219 Phone: 718-921-8124 ANNUAL MEETING The Annual Meeting of Shareholders of Newpark Resources, Inc. will be held on Thursday, May 18, 2017 at 10 a.m. CDT, at Newpark Corporate Offices 9320 Lakeside Blvd., Suite 100 The Woodlands, Texas 77381 COMMON STOCK LISTED NEW YORK STOCK EXCHANGE Symbol - NR EXECUTIVE OFFICERS PAUL L. HOWES MARK J. AIROLA President and Chief Executive Officer Senior Vice President, General Counsel, Chief Administrative Officer, Chief Compliance Officer and Secretary CORE VALUES INTEGRITY RESPECT EXCELLENCE MATTHEW S. LANIGAN Vice President and President, Mats and Integrated Services GREGG S. PIONTEK Vice President and Chief Financial Officer ACCOUNTABILITY BRUCE C. SMITH Executive Vice President and President, Fluids Systems DOUGLAS L. WHITE Corporate Controller and Chief Accounting Officer Acting honestly, ethically and responsibly in all aspects of our business Dealing fairly and openly with employees, customers, suppliers and community Delivering value through performance, innovation and service quality Using good judgement and taking responsibility for our actions CORPORATE HEADQUARTERS 9320 Lakeside Blvd., Suite 100 The Woodlands, TX 77381 281.362.6800 newpark.com