Newpark Resources, Inc. (NYSE:NR) announced that it is exploring strategic alternatives for the long-term positioning of its Fluids Systems division. Matthew Lanigan, Newpark's President and CEO, stated, "Over the past year, we've taken meaningful steps to position our operating divisions to independently thrive in the distinct markets they serve. Our Industrial Solutions business continues to deliver strong growth and high returns as we accelerate our market penetration within the multi-billion-dollar energy infrastructure and industrial end-markets.

We believe the market fundamentals will support a double-digit annual growth rate for years to come, including from investment required to transition to lower carbon solutions. We've also taken significant actions over the past year to focus and strengthen our Fluids Systems business, transforming the business into a more agile and capital-light model and exiting underperforming markets. Our business today is more profitable and stands as a recognized industry leader in fluids technology and service quality, with decades of experience in North America and the EMEA regions.

The business is well-positioned to capitalize upon the ongoing upcycle in oil and gas activity." Lanigan continued, "We are very pleased with the progress being made on the execution of our strategy. However, with the growing divergence in our capital allocation priorities, we believe it is the appropriate time to explore potential synergistic opportunities to further strengthen our leading Fluids Systems business. During this review, we are committed to exploring all viable options that are in the best long-term interests of the Fluids Systems business while also helping to enhance its competitive positioning and unlock the inherent value in our two divisions for our shareholders." The company has retained Lazard to serve as its exclusive financial advisor in connection with the strategic review.

There can be no assurance that any transaction will take place. The Company does not intend to disclose developments with respect to the progress of its evaluation of any strategic options until such time as the Board of Directors has approved a transaction or otherwise deems disclosure required or appropriate.