Newpark Resources Suffers Business Disruption from Ransomware Attack

Newpark Resources, Inc., a prominent U.S. provider of drilling fluids and site management solutions for the oil and gas industry, reported a ransomware attack that disrupted internal systems and business applications. According to its recent 8-K filing with the U.S. Securities and Exchange Commission (SEC), the ransomware attack occurred on October 29, 2024, but its effects persist today.

While certain operational systems were compromised, Newpark confirmed its field and manufacturing activities remain active through established downtime procedures, mitigating the immediate impact. At this time, no ransomware group has claimed responsibility.

Based in The Woodlands, Texas, Newpark Resources plays an essential role in U.S. energy infrastructure, offering services critical to well-site safety, environmental management, and operational efficiency for oil and gas operations. As a major player in fluid management and composite matting solutions, Newpark’s services are crucial to maintaining stability in energy production, making it a critical entity within the sector.

Upon discovering the unauthorized access, Newpark activated its cybersecurity response plan, mobilizing internal cybersecurity personnel alongside external advisors to investigate and contain the threat. The attack compromised certain internal reporting systems and limited Newpark’s access to specific business applications, though field operations were safeguarded through established contingency procedures.

The full extent of the incident’s financial impact remains under review. However, Newpark has indicated that, based on its current assessment, the breach is not expected to materially impact its overall financial health or results of operations. The company has committed to updating its disclosures if further investigation reveals a more significant effect on its systems or finances.

This ransomware incident is another example of the heightened cybersecurity risks companies in the energy and industrial sectors face. Critical infrastructure firms like Newpark are frequent targets due to the potential operational impact. As Newpark continues its investigation, the company’s focus remains on minimizing disruptions and ensuring continued support for the U.S. energy infrastructure.