Nabors Announces Second Quarter 2024 Results
Nabors Industries (NYSE: NBR) reported Q2 2024 operating revenues of $735 million, slightly up from $734 million in Q1. The net loss narrowed to $32 million ($4.29 per diluted share) from $34 million in Q1. Adjusted EBITDA was $218 million, down from $221 million in Q1.
Key highlights include:
- International drilling segment growth with rig additions in Algeria and Saudi Arabia
- Lower 48 rig count decreased to 69 from 72 in Q1
- Drilling Solutions and Rig Technologies segments showed improved performance
- 19 international rig deployments scheduled over the next 18 months
- Adjusted free cash flow of $57 million in Q2
- Full-year 2024 adjusted free cash flow target maintained at $100-$200 million
Nabors Industries (NYSE: NBR) ha riportato ricavi operativi per il secondo trimestre del 2024 di $735 milioni, in lieve aumento rispetto ai $734 milioni del primo trimestre. La perdita netta si è ristretta a $32 milioni ($4,29 per azione diluita) rispetto ai $34 milioni del primo trimestre. L'EBITDA rettificato è stato di $218 milioni, in calo rispetto ai $221 milioni del primo trimestre.
Tra i punti salienti:
- Crescita del segmento di perforazione internazionale con aggiunta di impianti in Algeria e Arabia Saudita
- Il conteggio degli impianti negli Stati Uniti contigui è diminuito a 69 rispetto ai 72 del primo trimestre
- I segmenti di Soluzioni di Perforazione e Tecnologie per Impianti hanno mostrato prestazioni migliorate
- 19 distribuzioni di impianti internazionali programmate nei prossimi 18 mesi
- Flusso di cassa libero rettificato di $57 milioni nel secondo trimestre
- Obiettivo di flusso di cassa libero rettificato per l'intero anno 2024 mantenuto tra $100 e $200 milioni
Nabors Industries (NYSE: NBR) reportó ingresos operativos para el segundo trimestre de 2024 de $735 millones, ligeramente superiores a los $734 millones del primer trimestre. La pérdida neta se redujo a $32 millones ($4.29 por acción diluida) desde los $34 millones del primer trimestre. El EBITDA ajustado fue de $218 millones, disminuyendo desde los $221 millones del primer trimestre.
Los aspectos destacados incluyen:
- Crecimiento del segmento de perforación internacional con adición de plataformas en Argelia y Arabia Saudita
- El número de plataformas en los 48 estados contiguos disminuyó a 69 desde 72 en el primer trimestre
- Los segmentos de Soluciones de Perforación y Tecnologías de Plataformas mostraron un mejor desempeño
- 19 despliegues de plataformas internacionales programados para los próximos 18 meses
- Flujo de caja libre ajustado de $57 millones en el segundo trimestre
- Objetivo de flujo de caja libre ajustado para todo 2024 mantenido entre $100 y $200 millones
나보르스 산업(NYSE: NBR)은 2024년 2분기 운영 수익이 $735백만이라고 보고했으며, 이는 1분기의 $734백만에서 약간 증가한 수치입니다. 순손실은 1분기의 $34백만에서 $32백만($4.29 per diluted share)로 줄어들었습니다. 조정된 EBITDA는 1분기의 $221백만에서 $218백만으로 감소했습니다.
주요 하이라이트는 다음과 같습니다:
- 알제리와 사우디아라비아에서의 시추 장비 추가로 국제 시추 세그먼트 성장
- 미국 하위 48개주 플랫폼 수가 1분기의 72개에서 69개로 감소
- 시추 솔루션과 장비 기술 세그먼트에서 성능 개선
- 향후 18개월 동안 예정된 19개의 국제 플랫폼 배치
- 2분기 조정된 자유 현금 흐름 $57백만
- 2024년 전체 연도 조정된 자유 현금 흐름 목표는 $100-$200백만으로 유지됨
Nabors Industries (NYSE: NBR) a annoncé des revenus opérationnels de 735 millions de dollars pour le deuxième trimestre 2024, légèrement en hausse par rapport aux 734 millions de dollars du premier trimestre. La perte nette a été réduite à 32 millions de dollars (4,29 dollars par action diluée) contre 34 millions de dollars au premier trimestre. L'EBITDA ajusté a été de 218 millions de dollars, en baisse par rapport aux 221 millions de dollars du premier trimestre.
Les faits saillants incluent :
- Croissance du segment de forage international avec l'ajout de plateformes en Algérie et en Arabie Saoudite
- Le nombre de plateformes dans les 48 États contigus a diminué à 69 contre 72 au premier trimestre
- Les segments des solutions de forage et des technologies de plateformes ont montré une performance améliorée
- 19 déploiements de plateformes internationales prévus au cours des 18 prochains mois
- Flux de trésorerie libre ajusté de 57 millions de dollars au 2e trimestre
- Objectif de flux de trésorerie libre ajusté pour l'année entière 2024 maintenu entre 100 et 200 millions de dollars
Nabors Industries (NYSE: NBR) berichtete für das 2. Quartal 2024 von operativen Einnahmen in Höhe von 735 Millionen Dollar, was einen leichten Anstieg gegenüber 734 Millionen Dollar im 1. Quartal darstellt. Der Nettoverlust verringerte sich auf 32 Millionen Dollar (4,29 Dollar je verwässerte Aktie) von 34 Millionen Dollar im 1. Quartal. Das bereinigte EBITDA betrug 218 Millionen Dollar, ein Rückgang von 221 Millionen Dollar im 1. Quartal.
Zu den wichtigsten Highlights gehören:
- Wachstum des internationalen Bohrsegmentes mit Rig-Zugängen in Algerien und Saudi-Arabien
- Anzahl der Rigs in den untersten 48 Staaten sank auf 69 von 72 im 1. Quartal
- Die Segmente Bohrlösungen und Rig-Technologien zeigten eine verbesserte Leistung
- 19 internationale Rig-Einsätze sind in den nächsten 18 Monaten geplant
- Bereinigter Free Cashflow von 57 Millionen Dollar im 2. Quartal
- Das Ziel für den bereinigten Free Cashflow für das Gesamtjahr 2024 bleibt bei 100-200 Millionen Dollar
- International drilling segment growth with rig count increasing to 84 from 81
- 19 additional international rig deployments scheduled over next 18 months
- Drilling Solutions adjusted EBITDA increased to $32.5 million from $31.8 million in Q1
- Rig Technologies adjusted EBITDA rose to $7.3 million from $6.8 million in Q1
- Adjusted free cash flow of $57 million in Q2
- Revolving credit facility increased and extended until 2029
- Placed $550 million of notes due in 2031 to retire similar notes due in 2026
- Net loss of $32 million in Q2, though improved from $34 million in Q1
- Adjusted EBITDA decreased to $218 million from $221 million in Q1
- Lower 48 rig count decreased to 69 from 72 in Q1
- Lower 48 daily adjusted gross margin down 2% compared to prior quarter
Financial performance analysis: The revenue figures for Nabors Industries are quite stable, increasing marginally from $734 million in the first quarter to $735 million in the second. However, the net loss of $32 million, a slight improvement from $34 million previously, indicates continuing financial challenges. The loss per share also reflects a minor improvement, going from $4.54 to $4.29. These figures suggest cautious optimism but underline the need for ongoing cost management and revenue enhancement strategies.
Segment-specific insights: The U.S. Drilling segment experienced a decline in EBITDA from $120.4 million to $114 million, influenced by a decrease in the average rig count and a slight fall in daily adjusted gross margins. Conversely, International Drilling saw a rise in EBITDA to $106.4 million from $102.5 million, propelled by increased rig counts in Algeria and Saudi Arabia. This is a positive indicator of geographic diversification benefiting the company's bottom line.
Cash flow and capital management: The $57 million adjusted free cash flow is a strong point, especially given the increased capital expenditures for newbuilds in Saudi Arabia. Their strategic approach to manage debt by placing $550 million notes due in 2031 and using the proceeds to retire existing notes due in 2026 also shows a proactive stance towards solidifying their capital structure.
International expansion: Nabors' growth trajectory in the international markets is a significant highlight. The company is on track to increase its rig count internationally by at least 20% from 2023 to 2025, which is substantial. The multiyear contracts secured with Kuwait Oil Company for high-specification rigs and the upcoming deployments across the Middle East and Latin America are critical drivers for future revenue growth.
Technological advancements: The adoption of Nabors' automation technologies, such as the PACE® rigs and SmartDRILL™, indicates high performance and efficiency, particularly in challenging environments like the Delaware Basin and Eagle Ford. This technological edge can be a compelling advantage for securing new contracts and strengthening client relationships.
Potential opportunities and risks: The company identifies additional opportunities beyond the current rig awards, suggesting a robust pipeline for future growth. However, market conditions, particularly in natural gas-focused markets, remain a risk factor, necessitating a balanced and cautious approach to new investments and operational expansions.
Technological integration and impact: Nabors' focus on integrating cutting-edge technology into its operations is a key differentiator. The deployment of PACE®-X and PACE®-M1000 rigs, along with NDS technology, demonstrates their capability in enhancing drilling efficiency. The significant milestones achieved in automation with SmartDRILL™ and SmartSLIDE® in the Bakken and the forthcoming RZR red zone robotics module, highlight a forward-thinking approach to operational excellence.
Client adoption and future potential: The commitment from major operators to fund and install Nabors' advanced technology on their rigs is noteworthy. This not only validates Nabors' technological prowess but also provides a revenue stream that could scale significantly as these technologies prove their effectiveness in real-world applications.
Innovation and competitive edge: Nabors' continuous investment in R&D and the successful implementation of innovative solutions like red zone robotics can enhance their competitive positioning. As the energy sector increasingly moves towards automation and efficiency, Nabors is well-placed to capitalize on this trend, potentially leading to increased market share and client retention.
Highlights
- Nabors Lower 48 rigs continued to set the standard for performance on challenging wells. A major operator in the
Delaware Basin drilled its fastest four-mile lateral, utilizing a Nabors PACE®-X rig and a package of NDS technology. A second large operator, in the Eagle Ford, drilled a single-run, four-mile lateral in 14 days, using a Nabors PACE®-M1000 rig. - A large operator in the Bakken committed to Nabors' full automation suite across all of its rigs, including SmartDRILL™ and SmartSLIDE®. With these installations, NDS will reach record penetration of its automated directional drilling solution on Nabors rigs.
- A major operator committed funding to support the next generation of Nabors' RZR red zone robotics drillfloor automation module. This includes an installation on one of this client's rigs in the Permian, and the opportunity to scale up from there.
- Kuwait Oil Company formally awarded multiyear contracts for three high-specification rigs. The Company plans to deploy existing in-country rigs for this opportunity.
Anthony G. Petrello, Nabors Chairman, CEO and President, commented, "Our second quarter operating results were better than we expected. This performance was driven by growth and higher average daily margins in our International Drilling segment, as well as stronger performance in our Drilling Solutions and Rig Technologies segments.
"Rig count continued to grow in our International segment, as we started up previously awarded rigs. With a substantial number of additional rig awards already in hand, across the
"Stable pricing supported our results in the Lower 48 market. Our average rig count decreased somewhat compared to the prior quarter, essentially in line with our expectation. Activity declines in the Northeast and
Segment Results
The
International Drilling adjusted EBITDA totaled
Drilling Solutions adjusted EBITDA was
In Rig Technologies, adjusted EBITDA increased to
Adjusted Free Cash Flow
Adjusted free cash flow was
William Restrepo, Nabors CFO, stated, "Our overall results exceeded our outlook. The emerging international market strength we saw last year is now manifesting in rig additions for our International drilling segment. We expect our pipeline of scheduled international deployments to drive an increase in rig count of at least
"In the
"We achieved significant milestones to solidify our capital structure. During the second quarter, we increased the amount on our revolving credit facility and extended it until 2029. More recently, we placed
"The strong results drove our cash generation. Adjusted free cash flow for the first half of the year reached
Outlook
Nabors expects the following metrics for the third quarter of 2024:
- Lower 48 average rig count of approximately 70 rigs
- Lower 48 daily adjusted gross margin of
$15,100 -$15,200 Alaska and Gulf ofMexico combined adjusted EBITDA of approximately$20 million
International
- Average rig count up by approximately one rig versus the second quarter average
- Daily adjusted gross margin of
$16,200 -$16,300
Drilling Solutions
- Adjusted EBITDA up sequentially by approximately
6%
Rig Technologies
- Adjusted EBITDA up sequentially by approximately
$1.5 million
Capital Expenditures
- Capital expenditures of
, with$190 -$200 million for the newbuilds in$80 -$85 million Saudi Arabia - Full-year capital expenditures of approximately
, including funding for the recent rig awards$590 million
Adjusted Free Cash Flow
- Full-year adjusted free cash flow of
$100 -$200 million
Mr. Petrello concluded, "These results, and our outlook, illustrate the success of our strategy. We remain committed to deploying the global drilling industry's leading technology. The growing adoption of these innovations by our client base across the globe gives us confidence that we are on the right track. And as I've stated before, we expect the extraordinary strength of the international markets to continue driving our growth over the coming years."
About Nabors Industries
Nabors Industries (NYSE: NBR) is a leading provider of advanced technology for the energy industry. With presence in more than 20 countries, Nabors has established a global network of people, technology and equipment to deploy solutions that deliver safe, efficient and responsible energy production. By leveraging its core competencies, particularly in drilling, engineering, automation, data science and manufacturing, Nabors aims to innovate the future of energy and enable the transition to a lower-carbon world. Learn more about Nabors and its energy technology leadership: www.nabors.com.
Forward-looking Statements
The information included in this press release includes forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. Such forward-looking statements are subject to a number of risks and uncertainties, as disclosed by Nabors from time to time in its filings with the Securities and Exchange Commission. As a result of these factors, Nabors' actual results may differ materially from those indicated or implied by such forward-looking statements. The forward-looking statements contained in this press release reflect management's estimates and beliefs as of the date of this press release. Nabors does not undertake to update these forward-looking statements.
Non-GAAP Disclaimer
This press release presents certain "non-GAAP" financial measures. The components of these non-GAAP measures are computed by using amounts that are determined in accordance with accounting principles generally accepted in
Adjusted free cash flow represents net cash provided by operating activities less cash used for capital expenditures, net of proceeds from sales of assets. Management believes that adjusted free cash flow is an important liquidity measure for the company and that it is useful to investors and management as a measure of the company's ability to generate cash flow, after reinvesting in the company for future growth, that could be available for paying down debt or other financing cash flows, such as dividends to shareholders. Management believes that this non-GAAP measure is useful information to investors when comparing our cash flows with the cash flows of other companies.
Each of these non-GAAP measures has limitations and therefore should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including Adjusted EBITDA, adjusted operating income (loss), net debt, and adjusted free cash flow, because it believes that these financial measures accurately reflect the Company's ongoing profitability and performance. Securities analysts and investors also use these measures as some of the metrics on which they analyze the Company's performance. Other companies in this industry may compute these measures differently. Reconciliations of consolidated adjusted EBITDA and adjusted operating income (loss) to income (loss) from continuing operations before income taxes, net debt to total debt, and adjusted free cash flow to net cash provided by operations, which are their nearest comparable GAAP financial measures, are included in the tables at the end of this press release. We do not provide a forward-looking reconciliation of our outlook for Segment Adjusted EBITDA, Segment Gross Margin or Adjusted Free Cash Flow, as the amount and significance of items required to develop meaningful comparable GAAP financial measures cannot be estimated at this time without unreasonable efforts. These special items could be meaningful.
Investor Contacts: William C. Conroy, CFA, Vice President of Corporate Development & Investor Relations, +1 281-775-2423 or via e-mail william.conroy@nabors.com, or Kara Peak, Director of Corporate Development & Investor Relations, +1 281-775-4954 or via email kara.peak@nabors.com. To request investor materials, contact Nabors' corporate headquarters in
NABORS INDUSTRIES LTD. AND SUBSIDIARIES | |||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) | |||||||||||
(Unaudited) | |||||||||||
Three Months Ended | Six Months Ended | ||||||||||
June 30, | March 31, | June 30, | |||||||||
(In thousands, except per share amounts) | 2024 | 2023 | 2024 | 2024 | 2023 | ||||||
Revenues and other income: | |||||||||||
Operating revenues | $ 734,798 | $ 767,067 | $ 733,704 | $ 1,468,502 | $ 1,546,206 | ||||||
Investment income (loss) | 8,181 | 11,743 | 10,201 | 18,382 | 21,609 | ||||||
Total revenues and other income | 742,979 | 778,810 | 743,905 | 1,486,884 | 1,567,815 | ||||||
Costs and other deductions: | |||||||||||
Direct costs | 440,225 | 455,531 | 437,077 | 877,302 | 917,860 | ||||||
General and administrative expenses | 62,154 | 63,232 | 61,751 | 123,905 | 124,962 | ||||||
Research and engineering | 14,362 | 13,281 | 13,863 | 28,225 | 28,355 | ||||||
Depreciation and amortization | 160,141 | 159,698 | 157,685 | 317,826 | 322,729 | ||||||
Interest expense | 51,493 | 46,164 | 50,379 | 101,872 | 91,305 | ||||||
Other, net | 12,079 | (1,775) | 16,108 | 28,187 | (44,150) | ||||||
Total costs and other deductions | 740,454 | 736,131 | 736,863 | 1,477,317 | 1,441,061 | ||||||
Income (loss) before income taxes | 2,525 | 42,679 | 7,042 | 9,567 | 126,754 | ||||||
Income tax expense (benefit) | 15,554 | 26,448 | 16,044 | 31,598 | 49,463 | ||||||
Net income (loss) | (13,029) | 16,231 | (9,002) | (22,031) | 77,291 | ||||||
Less: Net (income) loss attributable to noncontrolling interest | (19,226) | (11,620) | (25,331) | (44,557) | (23,456) | ||||||
Net income (loss) attributable to Nabors | $ (32,255) | $ 4,611 | $ (34,333) | $ (66,588) | $ 53,835 | ||||||
Earnings (losses) per share: | |||||||||||
Basic | $ (4.29) | $ (0.31) | $ (4.54) | $ (8.83) | $ 4.05 | ||||||
Diluted | $ (4.29) | $ (0.31) | $ (4.54) | $ (8.83) | $ 3.79 | ||||||
Weighted-average number of common shares outstanding: | |||||||||||
Basic | 9,207 | 9,195 | 9,176 | 9,191 | 9,178 | ||||||
Diluted | 9,207 | 9,195 | 9,176 | 9,191 | 10,141 | ||||||
Adjusted EBITDA | $ 218,057 | $ 235,023 | $ 221,013 | $ 439,070 | $ 475,029 | ||||||
Adjusted operating income (loss) | $ 57,916 | $ 75,325 | $ 63,328 | $ 121,244 | $ 152,300 |
NABORS INDUSTRIES LTD. AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(Unaudited) | |||||||
June 30, | March 31, | December 31, | |||||
(In thousands) | 2024 | 2024 | 2023 | ||||
ASSETS | |||||||
Current assets: | |||||||
Cash and short-term investments | $ 473,608 | $ 425,560 | $ 1,070,178 | ||||
Accounts receivable, net | 368,550 | 416,873 | 347,837 | ||||
Other current assets | 235,632 | 231,926 | 227,663 | ||||
Total current assets | 1,077,790 | 1,074,359 | 1,645,678 | ||||
Property, plant and equipment, net | 2,813,148 | 2,841,294 | 2,898,728 | ||||
Other long-term assets | 724,755 | 729,319 | 733,559 | ||||
Total assets | $ 4,615,693 | $ 4,644,972 | $ 5,277,965 | ||||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Current debt | $ - | $ - | $ 629,621 | ||||
Trade accounts payable | 331,468 | 319,436 | 294,442 | ||||
Other current liabilities | 259,454 | 282,982 | 289,918 | ||||
Total current liabilities | 590,922 | 602,418 | 1,213,981 | ||||
Long-term debt | 2,514,169 | 2,512,175 | 2,511,519 | ||||
Other long-term liabilities | 247,587 | 256,956 | 271,380 | ||||
Total liabilities | 3,352,678 | 3,371,549 | 3,996,880 | ||||
Redeemable noncontrolling interest in subsidiary | 761,415 | 750,600 | 739,075 | ||||
Equity: | |||||||
Shareholders' equity | 250,371 | 286,338 | 326,614 | ||||
Noncontrolling interest | 251,229 | 236,485 | 215,396 | ||||
Total equity | 501,600 | 522,823 | 542,010 | ||||
Total liabilities and equity | $ 4,615,693 | $ 4,644,972 | $ 5,277,965 |
NABORS INDUSTRIES LTD. AND SUBSIDIARIES | |||||||||||
SEGMENT REPORTING | |||||||||||
(Unaudited) | |||||||||||
The following tables set forth certain information with respect to our reportable segments and rig activity: | |||||||||||
Three Months Ended | Six Months Ended | ||||||||||
June 30, | March 31, | June 30, | |||||||||
(In thousands, except rig activity) | 2024 | 2023 | 2024 | 2024 | 2023 | ||||||
Operating revenues: | |||||||||||
$ 259,723 | $ 314,830 | $ 271,989 | $ 531,712 | $ 665,482 | |||||||
International Drilling | 356,733 | 337,650 | 349,359 | 706,092 | 657,698 | ||||||
Drilling Solutions | 82,961 | 76,855 | 75,574 | 158,535 | 151,898 | ||||||
Rig Technologies (1) | 49,546 | 63,565 | 50,156 | 99,702 | 122,044 | ||||||
Other reconciling items (2) | (14,165) | (25,833) | (13,374) | (27,539) | (50,916) | ||||||
Total operating revenues | $ 734,798 | $ 767,067 | $ 733,704 | $ 1,468,502 | $ 1,546,206 | ||||||
Adjusted EBITDA: (3) | |||||||||||
$ 114,020 | $ 141,446 | $ 120,403 | $ 234,423 | $ 297,935 | |||||||
International Drilling | 106,371 | 98,331 | 102,498 | 208,869 | 186,939 | ||||||
Drilling Solutions | 32,468 | 32,756 | 31,787 | 64,255 | 64,670 | ||||||
Rig Technologies (1) | 7,330 | 6,408 | 6,801 | 14,131 | 11,362 | ||||||
Other reconciling items (4) | (42,132) | (43,918) | (40,476) | (82,608) | (85,877) | ||||||
Total adjusted EBITDA | $ 218,057 | $ 235,023 | $ 221,013 | $ 439,070 | $ 475,029 | ||||||
Adjusted operating income (loss): (5) | |||||||||||
$ 45,085 | $ 75,408 | $ 50,529 | $ 95,614 | $ 161,277 | |||||||
International Drilling | 23,672 | 10,407 | 22,476 | 46,148 | 12,364 | ||||||
Drilling Solutions | 27,319 | 28,351 | 26,893 | 54,212 | 55,489 | ||||||
Rig Technologies (1) | 4,860 | 5,052 | 4,209 | 9,069 | 8,746 | ||||||
Other reconciling items (4) | (43,020) | (43,893) | (40,779) | (83,799) | (85,576) | ||||||
Total adjusted operating income (loss) | $ 57,916 | $ 75,325 | $ 63,328 | $ 121,244 | $ 152,300 | ||||||
Rig activity: | |||||||||||
Average Rigs Working: (7) | |||||||||||
Lower 48 | 68.7 | 81.6 | 71.9 | 70.3 | 87.4 | ||||||
Other US | 6.3 | 7.0 | 6.8 | 6.5 | 7.0 | ||||||
75.0 | 88.6 | 78.7 | 76.8 | 94.4 | |||||||
International Drilling | 84.4 | 77.1 | 81.0 | 82.7 | 76.8 | ||||||
Total average rigs working | 159.4 | 165.7 | 159.7 | 159.5 | 171.2 | ||||||
Daily Rig Revenue: (6),(8) | |||||||||||
Lower 48 | $ 35,334 | $ 36,751 | $ 35,468 | $ 35,402 | $ 36,593 | ||||||
Other US | 68,008 | 65,860 | 64,402 | 66,135 | 68,263 | ||||||
38,076 | 39,049 | 37,968 | 38,020 | 38,940 | |||||||
International Drilling | 46,469 | 48,106 | 47,384 | 46,917 | 47,319 | ||||||
Daily Adjusted Gross Margin: (6),(9) | |||||||||||
Lower 48 | $ 15,598 | $ 16,890 | $ 16,011 | $ 15,809 | $ 16,784 | ||||||
Other US | 38,781 | 35,932 | 35,184 | 36,912 | 36,520 | ||||||
17,544 | 18,394 | 17,667 | 17,607 | 18,246 | |||||||
International Drilling | 16,050 | 16,276 | 16,061 | 16,056 | 15,754 | ||||||
(1) | Includes our oilfield equipment manufacturing activities. | ||||||||||
(2) | Represents the elimination of inter-segment transactions related to our Rig Technologies operating segment. | ||||||||||
(3) | Adjusted EBITDA represents net income (loss) before income tax expense (benefit), investment income (loss), interest expense, other, net and depreciation and amortization. Adjusted EBITDA is a non-GAAP financial measure and should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. In addition, adjusted EBITDA excludes certain cash expenses that the Company is obligated to make. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including adjusted EBITDA and adjusted operating income (loss), because it believes that these financial measures accurately reflect the Company's ongoing profitability and performance. Securities analysts and investors use this measure as one of the metrics on which they analyze the Company's performance. Other companies in this industry may compute these measures differently. A reconciliation of this non-GAAP measure to net income (loss), which is the most closely comparable GAAP measure, is provided in the table set forth immediately following the heading "Reconciliation of Non-GAAP Financial Measures to Net Income (Loss)". | ||||||||||
(4) | Represents the elimination of inter-segment transactions and unallocated corporate expenses. | ||||||||||
(5) | Adjusted operating income (loss) represents net income (loss) before income tax expense (benefit), investment income (loss), interest expense and other, net. Adjusted operating income (loss) is a non-GAAP financial measure and should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. In addition, adjusted operating income (loss) excludes certain cash expenses that the Company is obligated to make. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including adjusted EBITDA and adjusted operating income (loss), because it believes that these financial measures accurately reflect the Company's ongoing profitability and performance. Securities analysts and investors use this measure as one of the metrics on which they analyze the Company's performance. Other companies in this industry may compute these measures differently. A reconciliation of this non-GAAP measure to net income (loss), which is the most closely comparable GAAP measure, is provided in the table set forth immediately following the heading "Reconciliation of Non-GAAP Financial Measures to Net Income (Loss)". | ||||||||||
(6) | Rig revenue days represents the number of days the Company's rigs are contracted and performing under a contract during the period. These would typically include days in which operating, standby and move revenue is earned. | ||||||||||
(7) | Average rigs working represents a measure of the average number of rigs operating during a given period. For example, one rig operating 45 days during a quarter represents approximately 0.5 average rigs working for the quarter. On an annual period, one rig operating 182.5 days represents approximately 0.5 average rigs working for the year. Average rigs working can also be calculated as rig revenue days during the period divided by the number of calendar days in the period. | ||||||||||
(8) | Daily rig revenue represents operating revenue, divided by the total number of revenue days during the quarter. | ||||||||||
(9) | Daily adjusted gross margin represents operating revenue less direct costs, divided by the total number of rig revenue days during the quarter. | ||||||||||
(10) | The |
NABORS INDUSTRIES LTD. AND SUBSIDIARIES | |||||||||||||||
Reconciliation of Earnings per Share | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | March 31, | June 30, | |||||||||||||
(in thousands, except per share amounts) | 2024 | 2023 | 2024 | 2024 | 2023 | ||||||||||
BASIC EPS: | |||||||||||||||
Net income (loss) (numerator): | |||||||||||||||
Income (loss), net of tax | $ | (13,029) | $ | 16,231 | $ | (9,002) | $ | (22,031) | $ | 77,291 | |||||
Less: net (income) loss attributable to noncontrolling interest | (19,226) | (11,620) | (25,331) | (44,557) | (23,456) | ||||||||||
Less: distributed and undistributed earnings allocated to unvested shareholders | — | — | — | — | (1,869) | ||||||||||
Less: accrued distribution on redeemable noncontrolling interest in subsidiary | (7,283) | (7,436) | (7,283) | (14,566) | (14,790) | ||||||||||
Numerator for basic earnings per share: | |||||||||||||||
Adjusted income (loss), net of tax - basic | $ | (39,538) | $ | (2,825) | $ | (41,616) | $ | (81,154) | $ | 37,176 | |||||
Weighted-average number of shares outstanding - basic | 9,207 | 9,195 | 9,176 | 9,191 | 9,178 | ||||||||||
Earnings (losses) per share: | |||||||||||||||
Total Basic | $ | (4.29) | $ | (0.31) | $ | (4.54) | $ | (8.83) | $ | 4.05 | |||||
DILUTED EPS: | |||||||||||||||
Adjusted income (loss) from continuing operations, net of tax - basic | $ | (39,538) | $ | (2,825) | $ | (41,616) | $ | (81,154) | $ | 37,176 | |||||
Add: after tax interest expense of convertible notes | — | — | — | — | 1,272 | ||||||||||
Add: effect of reallocating undistributed earnings of unvested shareholders | — | — | — | — | 10 | ||||||||||
Adjusted income (loss), net of tax - diluted | $ | (39,538) | $ | (2,825) | $ | (41,616) | $ | (81,154) | $ | 38,458 | |||||
Weighted-average number of shares outstanding - basic | 9,207 | 9,195 | 9,176 | 9,191 | 9,178 | ||||||||||
Add: if converted dilutive effect of convertible notes | — | — | — | — | 918 | ||||||||||
Add: dilutive effect of potential common shares | — | — | — | — | 45 | ||||||||||
Weighted-average number of shares outstanding - diluted | 9,207 | 9,195 | 9,176 | 9,191 | 10,141 | ||||||||||
Earnings (losses) per share: | |||||||||||||||
Total Diluted | $ | (4.29) | $ | (0.31) | $ | (4.54) | $ | (8.83) | $ | 3.79 |
NABORS INDUSTRIES LTD. AND SUBSIDIARIES | |||||||||||||
NON-GAAP FINANCIAL MEASURES | |||||||||||||
RECONCILIATION OF ADJUSTED EBITDA BY SEGMENT TO ADJUSTED OPERATING INCOME (LOSS) BY SEGMENT | |||||||||||||
(Unaudited) | |||||||||||||
(In thousands) | |||||||||||||
Three Months Ended June 30, 2024 | |||||||||||||
Drilling | International Drilling | Drilling Solutions | Rig Technologies | Other reconciling items | Total | ||||||||
Adjusted operating income (loss) | $ 45,085 | $ 23,672 | $ 27,319 | $ 4,860 | $ (43,020) | $ 57,916 | |||||||
Depreciation and amortization | 68,935 | 82,699 | 5,149 | 2,470 | 888 | 160,141 | |||||||
Adjusted EBITDA | $ 106,371 | $ 32,468 | $ 7,330 | $ (42,132) | $ 218,057 | ||||||||
Three Months Ended June 30, 2023 | |||||||||||||
Drilling | International Drilling | Drilling Solutions | Rig Technologies | Other reconciling items | Total | ||||||||
Adjusted operating income (loss) | $ 75,408 | $ 10,407 | $ 28,351 | $ 5,052 | $ (43,893) | $ 75,325 | |||||||
Depreciation and amortization | 66,038 | 87,924 | 4,405 | 1,356 | (25) | 159,698 | |||||||
Adjusted EBITDA | $ 98,331 | $ 32,756 | $ 6,408 | $ (43,918) | $ 235,023 | ||||||||
Three Months Ended March 31, 2024 | |||||||||||||
Drilling | International Drilling | Drilling Solutions | Rig Technologies | Other reconciling items | Total | ||||||||
Adjusted operating income (loss) | $ 50,529 | $ 22,476 | $ 26,893 | $ 4,209 | $ (40,779) | $ 63,328 | |||||||
Depreciation and amortization | 69,874 | 80,022 | 4,894 | 2,592 | 303 | 157,685 | |||||||
Adjusted EBITDA | $ 102,498 | $ 31,787 | $ 6,801 | $ (40,476) | $ 221,013 | ||||||||
Six Months Ended June 30, 2024 | |||||||||||||
Drilling | International Drilling | Drilling Solutions | Rig Technologies | Other reconciling items | Total | ||||||||
Adjusted operating income (loss) | $ 95,614 | $ 46,148 | $ 54,212 | $ 9,069 | $ (83,799) | $ 121,244 | |||||||
Depreciation and amortization | 138,809 | 162,721 | 10,043 | 5,062 | 1,191 | 317,826 | |||||||
Adjusted EBITDA | $ 208,869 | $ 64,255 | $ 14,131 | $ (82,608) | $ 439,070 | ||||||||
Six Months Ended June 30, 2023 | |||||||||||||
Drilling | International Drilling | Drilling Solutions | Rig Technologies | Other reconciling items | Total | ||||||||
Adjusted operating income (loss) | $ 12,364 | $ 55,489 | $ 8,746 | $ (85,576) | $ 152,300 | ||||||||
Depreciation and amortization | 136,658 | 174,575 | 9,181 | 2,616 | (301) | 322,729 | |||||||
Adjusted EBITDA | $ 186,939 | $ 64,670 | $ 11,362 | $ (85,877) | $ 475,029 |
NABORS INDUSTRIES LTD. AND SUBSIDIARIES | |||||||||||
NON-GAAP FINANCIAL MEASURES | |||||||||||
RECONCILIATION OF ADJUSTED GROSS MARGIN BY SEGMENT TO ADJUSTED OPERATING INCOME (LOSS) BY SEGMENT | |||||||||||
(Unaudited) | |||||||||||
Three Months Ended | Six Months Ended | ||||||||||
June 30, | March 31, | June 30, | |||||||||
(In thousands) | 2024 | 2023 | 2024 | 2024 | 2023 | ||||||
Lower 48 - | |||||||||||
Adjusted operating income (loss) | $ 32,841 | $ 60,496 | $ 39,264 | $ 72,105 | $ 134,567 | ||||||
Plus: General and administrative costs | 4,390 | 5,209 | 4,823 | 9,213 | 10,264 | ||||||
Plus: Research and engineering | 909 | 1,189 | 964 | 1,873 | 2,708 | ||||||
GAAP Gross Margin | 38,140 | 66,894 | 45,051 | 83,191 | 147,539 | ||||||
Plus: Depreciation and amortization | 59,332 | 58,533 | 59,733 | 119,065 | 118,041 | ||||||
Adjusted gross margin | $ 97,472 | $ 125,427 | $ 104,784 | $ 202,256 | $ 265,580 | ||||||
Other - | |||||||||||
Adjusted operating income (loss) | $ 12,244 | $ 14,912 | $ 11,265 | $ 23,509 | $ 26,710 | ||||||
Plus: General and administrative costs | 306 | 323 | 325 | 631 | 668 | ||||||
Plus: Research and engineering | 45 | 132 | 47 | 92 | 259 | ||||||
GAAP Gross Margin | 12,595 | 15,367 | 11,637 | 24,232 | 27,637 | ||||||
Plus: Depreciation and amortization | 9,602 | 7,504 | 10,142 | 19,744 | 18,616 | ||||||
Adjusted gross margin | $ 22,197 | $ 22,871 | $ 21,779 | $ 43,976 | $ 46,253 | ||||||
Adjusted operating income (loss) | $ 45,085 | $ 75,408 | $ 50,529 | $ 95,614 | $ 161,277 | ||||||
Plus: General and administrative costs | 4,696 | 5,532 | 5,148 | 9,844 | 10,932 | ||||||
Plus: Research and engineering | 954 | 1,321 | 1,011 | 1,965 | 2,967 | ||||||
GAAP Gross Margin | 50,735 | 82,261 | 56,688 | 107,423 | 175,176 | ||||||
Plus: Depreciation and amortization | 68,934 | 66,037 | 69,875 | 138,809 | 136,657 | ||||||
Adjusted gross margin | $ 119,669 | $ 148,298 | $ 126,563 | $ 246,232 | $ 311,833 | ||||||
International Drilling | |||||||||||
Adjusted operating income (loss) | $ 23,672 | $ 10,407 | $ 22,476 | $ 46,148 | $ 12,364 | ||||||
Plus: General and administrative costs | 15,434 | 14,089 | 14,415 | 29,849 | 28,424 | ||||||
Plus: Research and engineering | 1,404 | 1,821 | 1,508 | 2,912 | 3,606 | ||||||
GAAP Gross Margin | 40,510 | 26,317 | 38,399 | 78,909 | 44,394 | ||||||
Plus: Depreciation and amortization | 82,700 | 87,924 | 80,022 | 162,722 | 174,576 | ||||||
Adjusted gross margin | $ 123,210 | $ 114,241 | $ 118,421 | $ 241,631 | $ 218,970 | ||||||
Adjusted gross margin by segment represents adjusted operating income (loss) plus general and administrative costs, research and engineering costs and depreciation and amortization |
NABORS INDUSTRIES LTD. AND SUBSIDIARIES | ||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO NET INCOME (LOSS) | ||||||||||
(Unaudited) | ||||||||||
Three Months Ended | Six Months Ended | |||||||||
June 30, | March 31, | June 30, | ||||||||
(In thousands) | 2024 | 2023 | 2024 | 2024 | 2023 | |||||
Net income (loss) | $ (13,029) | $ 16,231 | $ (9,002) | $ (22,031) | $ 77,291 | |||||
Income tax expense (benefit) | 15,554 | 26,448 | 16,044 | 31,598 | 49,463 | |||||
Income (loss) from continuing operations before income taxes | 2,525 | 42,679 | 7,042 | 9,567 | 126,754 | |||||
Investment (income) loss | (8,181) | (11,743) | (10,201) | (18,382) | (21,609) | |||||
Interest expense | 51,493 | 46,164 | 50,379 | 101,872 | 91,305 | |||||
Other, net | 12,079 | (1,775) | 16,108 | 28,187 | (44,150) | |||||
Adjusted operating income (loss) (1) | 57,916 | 75,325 | 63,328 | 121,244 | 152,300 | |||||
Depreciation and amortization | 160,141 | 159,698 | 157,685 | 317,826 | 322,729 | |||||
Adjusted EBITDA (2) | $ 218,057 | $ 235,023 | $ 221,013 | $ 439,070 | $ 475,029 | |||||
(1) Adjusted operating income (loss) represents net income (loss) before income tax expense (benefit), investment income (loss), interest expense, and other, net. Adjusted operating income (loss) is a non-GAAP financial measure and should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. In addition, adjusted operating income (loss) excludes certain cash expenses that the Company is obligated to make. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including adjusted EBITDA and adjusted operating income (loss), because it believes that these financial measures accurately reflect the Company's ongoing profitability and performance. Securities analysts and investors use this measure as one of the metrics on which they analyze the Company's performance. Other companies in this industry may compute these measures differently. | ||||||||||
(2) Adjusted EBITDA represents net income (loss) before income tax expense (benefit), investment income (loss), interest expense, other, net and depreciation and amortization. Adjusted EBITDA is a non-GAAP financial measure and should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. In addition, adjusted EBITDA excludes certain cash expenses that the Company is obligated to make. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including adjusted EBITDA and adjusted operating income (loss), because it believes that these financial measures accurately reflect the Company's ongoing profitability and performance. Securities analysts and investors use this measure as one of the metrics on which they analyze the Company's performance. Other companies in this industry may compute these measures differently. |
NABORS INDUSTRIES LTD. AND SUBSIDIARIES | |||||||
RECONCILIATION OF NET DEBT TO TOTAL DEBT | |||||||
(Unaudited) | |||||||
June 30, | March 31, | December 31, | |||||
(In thousands) | 2024 | 2024 | 2023 | ||||
Current debt | $ - | $ - | $ 629,621 | ||||
Long-term debt | 2,514,169 | 2,512,175 | 2,511,519 | ||||
Total Debt | 2,514,169 | 2,512,175 | 3,141,140 | ||||
Less: Cash and short-term investments | 473,608 | 425,560 | 1,070,178 | ||||
Net Debt | $ 2,040,561 | $ 2,086,615 | $ 2,070,962 |
NABORS INDUSTRIES LTD. AND SUBSIDIARIES | ||||||
RECONCILIATION OF ADJUSTED FREE CASH FLOW TO | ||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | ||||||
(Unaudited) | ||||||
Three Months Ended | Six Months Ended | |||||
June 30, | March 31, | June 30, | ||||
(In thousands) | 2024 | 2024 | 2024 | |||
Net cash provided by operating activities | $ 181,659 | $ 107,239 | $ 288,898 | |||
Add: Capital expenditures, net of proceeds from sales of assets | (125,010) | (99,125) | (224,135) | |||
Adjusted free cash flow | $ 56,649 | $ 8,114 | $ 64,763 | |||
Adjusted free cash flow represents net cash provided by operating activities less cash used for capital expenditures, net of proceeds from sales of assets. Management believes that adjusted free cash flow is an important liquidity measure for the company and that it is useful to investors and management as a measure of the company's ability to generate cash flow, after reinvesting in the company for future growth, that could be available for paying down debt or other financing cash flows, such as dividends to shareholders. Adjusted free cash flow does not represent the residual cash flow available for discretionary expenditures. Adjusted free cash flow is a non-GAAP financial measure that should be considered in addition to, not as a substitute for or superior to, cash flow from operations reported in accordance with GAAP. |
View original content:https://www.prnewswire.com/news-releases/nabors-announces-second-quarter-2024-results-302204506.html
SOURCE Nabors Industries Ltd.
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