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Nabors Announces Third Quarter 2024 Results

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Nabors Industries (NYSE: NBR) reported third quarter 2024 operating revenues of $732 million, with a net loss of $56 million ($6.86 per diluted share). Adjusted EBITDA was $222 million. Key highlights include:

1. Agreement to acquire Parker Wellbore, expected to generate $180 million EBITDA this year with $35 million in synergies.

2. International Drilling segment showed growth with daily adjusted gross margin exceeding $17,000.

3. Lower 48 drilling activity remained stable with average rig count at 68.

4. Adjusted free cash flow was $18 million, with capital expenditures totaling $118 million.

5. Full-year 2024 capital expenditures forecast at $600 million, including $230 million for SANAD newbuilds.

6. Full-year adjusted free cash flow expected between $100 and $130 million.

Nabors Industries (NYSE: NBR) ha riportato ricavi operativi per il terzo trimestre del 2024 pari a 732 milioni di dollari, con una perdita netta di 56 milioni di dollari (6,86 dollari per azione diluita). L'EBITDA rettificato è stato di 222 milioni di dollari. Tra i punti salienti:

1. Accordo per l'acquisizione di Parker Wellbore, che si prevede genererà 180 milioni di dollari di EBITDA quest'anno, con sinergie di 35 milioni di dollari.

2. Il segmento di perforazione internazionale ha mostrato crescita, con un margine lordo giornaliero rettificato che supera i 17.000 dollari.

3. L'attività di perforazione nelle Lower 48 è rimasta stabile, con un numero medio di piattaforme a 68.

4. Il flusso di cassa libero rettificato è stato di 18 milioni di dollari, con spese in conto capitale totali pari a 118 milioni di dollari.

5. Le previsioni per le spese in conto capitale per l'intero anno 2024 sono fissate a 600 milioni di dollari, di cui 230 milioni per nuovi investimenti SANAD.

6. Ci si aspetta che il flusso di cassa libero rettificato per l'intero anno si attesti tra i 100 e i 130 milioni di dollari.

Nabors Industries (NYSE: NBR) informó ingresos operativos del tercer trimestre de 2024 de 732 millones de dólares, con una pérdida neta de 56 millones de dólares (6,86 dólares por acción diluida). El EBITDA ajustado fue de 222 millones de dólares. Los aspectos destacados incluyen:

1. Acuerdo para adquirir Parker Wellbore, que se espera genere 180 millones de dólares en EBITDA este año, con sinergias de 35 millones de dólares.

2. El segmento de perforación internacional mostró crecimiento con un margen bruto diario ajustado que supera los 17,000 dólares.

3. La actividad de perforación en los Lower 48 se mantuvo estable con un conteo promedio de plataformas de 68.

4. El flujo de caja libre ajustado fue de 18 millones de dólares, con gastos de capital que totalizaron 118 millones de dólares.

5. Se prevé que las inversiones de capital para todo el año 2024 alcancen los 600 millones de dólares, incluidos 230 millones para construcciones nuevas de SANAD.

6. Se espera que el flujo de caja libre ajustado para todo el año esté entre 100 y 130 millones de dólares.

네이버스 인더스트리(NYSE: NBR)는 2024년 3분기 운영 수익이 7억 3천2백만 달러에 달하며, 순손실은 5천6백만 달러(희석 주당 6.86달러)라고 보고했습니다. 조정된 EBITDA는 2억 2천2백만 달러였습니다. 주요 하이라이트는 다음과 같습니다:

1. 파커 웰보어 인수 계약 체결, 올해 1억 8천만 달러의 EBITDA를 생성할 것으로 예상되며, 3천5백만 달러의 시너지를 기대하고 있습니다.

2. 국제 드릴링 부문은 성장세를 보이며, 일일 조정 총마진이 17,000달러를 초과했습니다.

3. 저지 48주의 드릴링 활동은 안정적으로, 평균 시추대 수는 68개로 유지되었습니다.

4. 조정된 자유 현금 흐름은 1천8백만 달러였으며, 자본 지출 총액은 1억 1천8백만 달러였습니다.

5. 2024년 전체 자본 지출 예상치는 6억 달러로, 이 중 2억 3천만 달러는 SANAD 신규 건설에 사용할 예정입니다.

6. 2024년 전체 조정된 자유 현금 흐름은 1억에서 1억 3천만 달러 사이로 예상됩니다.

Nabors Industries (NYSE: NBR) a annoncé des recettes d'exploitation pour le troisième trimestre 2024 de 732 millions de dollars, avec une perte nette de 56 millions de dollars (6,86 dollars par action diluée). L'EBITDA ajusté était de 222 millions de dollars. Les points clés incluent:

1. Accord pour acquérir Parker Wellbore, qui devrait générer 180 millions de dollars d'EBITDA cette année, avec des synergies de 35 millions de dollars.

2. Le segment de forage international a montré une croissance avec une marge brute ajustée quotidienne dépassant 17 000 dollars.

3. L'activité de forage dans les Lower 48 est restée stable avec un nombre moyen de plateformes de 68.

4. Le flux de trésorerie libre ajusté s'élevait à 18 millions de dollars, avec des dépenses en capital totalisant 118 millions de dollars.

5. Les prévisions de dépenses en capital pour l'année entière 2024 sont de 600 millions de dollars, dont 230 millions pour de nouveaux bâtiments SANAD.

6. Le flux de trésorerie libre ajusté pour l'année complète devrait se situer entre 100 et 130 millions de dollars.

Nabors Industries (NYSE: NBR) meldete für das dritte Quartal 2024 Betriebseinnahmen von 732 Millionen US-Dollar bei einem Nettoverlust von 56 Millionen US-Dollar (6,86 US-Dollar pro verwässerter Aktie). Das bereinigte EBITDA betrug 222 Millionen US-Dollar. Wesentliche Höhepunkte sind:

1. Vereinbarung über die Übernahme von Parker Wellbore, die voraussichtlich in diesem Jahr ein EBITDA von 180 Millionen US-Dollar mit Synergien von 35 Millionen US-Dollar generieren wird.

2. Der internationale Bohrsektor zeigte Wachstum, mit einer täglichen bereinigten Bruttomarge von über 17.000 US-Dollar.

3. Die Bohraktivität in den Lower 48 blieb stabil, mit einer durchschnittlichen Bohranzahl von 68.

4. Der bereinigte freie Cashflow betrug 18 Millionen US-Dollar, während die Investitionsausgaben insgesamt 118 Millionen US-Dollar betrugen.

5. Die Prognose für die Investitionsausgaben im Gesamtjahr 2024 liegt bei 600 Millionen US-Dollar, einschließlich 230 Millionen US-Dollar für SANAD-Neubauten.

6. Der bereinigte freie Cashflow für das Gesamtjahr wird voraussichtlich zwischen 100 und 130 Millionen US-Dollar liegen.

Positive
  • Agreement to acquire Parker Wellbore, expected to generate $180 million EBITDA with $35 million in synergies
  • International Drilling segment daily adjusted gross margin exceeded $17,000, a quarter ahead of schedule
  • 13 rigs scheduled to deploy through early 2026 in the Middle East and Latin America
  • Drilling Solutions segment showed growth with higher international revenue
  • Full-year adjusted free cash flow projected between $100 and $130 million
Negative
  • Net loss of $56 million ($6.86 per diluted share), increased from $32 million loss in Q2
  • Lower 48 average rig count decreased slightly to 68 from 69 in Q2
  • Lower 48 daily adjusted gross margin decreased to $15,051 from $15,598 in Q2
  • Adjusted free cash flow decreased to $18 million from $57 million in Q2
  • 12-month suspension of three lower-margin rigs in Saudi Arabia

Insights

Nabors Industries reported mixed Q3 2024 results with some positive developments and challenges. Operating revenues slightly decreased to $732 million from $735 million in Q2. The net loss widened to $56 million ($6.86 per diluted share) from $32 million in Q2, partly due to $25 million in net charges.

Key positives include:

  • Adjusted EBITDA increased to $222 million from $218 million in Q2
  • International Drilling segment showed improvement with daily adjusted gross margin reaching $17,085
  • Drilling Solutions segment grew, driven by international market performance
  • Announced acquisition of Parker Wellbore, expected to generate $180 million EBITDA with $35 million in synergies

Challenges persist in the U.S. Drilling segment, with Lower 48 rig count and margins slightly down. The company revised its full-year free cash flow forecast to $100-130 million, down from previous expectations due to accelerated capital expenditures and rig suspensions in Saudi Arabia.

Overall, Nabors is navigating a mixed environment, with international growth offsetting some domestic weakness. The Parker Wellbore acquisition could be transformative if synergies are realized.

Nabors' Q3 results reflect the diverging trends in the global drilling market. The company's international operations, particularly in the Middle East and Latin America, are showing strength with improving margins and rig deployments. This aligns with the broader industry trend of increased international and offshore activity.

The acquisition of Parker Wellbore is a strategic move that could significantly enhance Nabors' position in tubular rentals and well construction services. This diversification is important as the industry faces potential headwinds in traditional drilling markets.

In the U.S., particularly the Lower 48, the market remains challenging. The lack of anticipated increases in gas-directed drilling and the impact of E&P consolidation are weighing on activity levels. However, Nabors' technological advancements, such as the PACE®-X rigs and NDS Smart technology, are helping maintain its competitive edge in a tough market.

The company's focus on advanced technology and automation aligns well with the industry's push for efficiency and cost reduction. This strategy could position Nabors favorably as the energy transition progresses and operators demand more sophisticated drilling solutions.

HAMILTON, Bermuda, Oct. 22, 2024 /PRNewswire/ -- Nabors Industries Ltd. ("Nabors" or the "Company") (NYSE: NBR) today reported third quarter 2024 operating revenues of $732 million, compared to operating revenues of $735 million in the second quarter. The net loss attributable to Nabors shareholders for the quarter was $56 million, compared to a net loss of $32 million in the second quarter. This equates to a loss of $6.86 per diluted share, compared to a loss per diluted share of $4.29 in the second quarter. The third quarter included net charges totaling approximately $25 million, primarily reflecting the redemption premium on the 2026 notes and market adjustments on investments. Third quarter adjusted EBITDA was $222 million, compared to $218 million in the previous quarter.

Highlights

  • Last week, Nabors announced the signing of an agreement to acquire Parker Wellbore. Parker's lines of business include the leading franchise in U.S. tubular rentals – Quail Tools – as well as international tubular rentals, well construction services (including casing running), and drilling rigs. Parker expects to generate EBITDA of $180 million this year. Nabors has identified synergies potential at an annualized run-rate of $35 million within 12 months of closing. Nabors will acquire all of Parker's issued and outstanding common stock in exchange for 4.8 million shares of Nabors common stock, subject to a share price collar. Nabors will also assume approximately $100 million in net debt.
  • Nabors Lower 48 rigs once again set notable performance milestones. A major operator in the Delaware Basin drilled three wells, each with four-mile laterals, utilizing a Nabors PACE®-X rig equipped with a Canrig® Sigma topdrive. Sigma's rated torque is the industry's highest and is ideal for the larger-diameter drill pipe run on these wells. The rig also employed an NDS technology package.
  • A large operator in the Eagle Ford drilled its longest well in the basin, incorporating a lateral length of more than four miles. The lateral was drilled in a single run without the use of rotary steerable systems. The rig was a Nabors PACE®-M1000, utilizing larger-diameter drill pipe.
  • A large operator in the Bakken completed a four-mile lateral in a single run in under 12 days, utilizing a Nabors PACE®-X rig. This well is the operator's first four-mile lateral, and the operator believes it is the quickest in the Bakken. The rig was equipped with a comprehensive package of NDS Smart technology.

Anthony G. Petrello, Nabors Chairman, CEO and President, commented, "We are excited as we move forward with our announced acquisition of Parker Wellbore. Our companies' portfolios are highly complementary. Parker's recent track record speaks for itself. Quail Tools, already the leader in its space, plays a key role as operators extend the lengths of their wellbore laterals. The transaction increases our scale, provides incremental growth and improves our leverage metrics.

"Our third quarter operating results matched our overall expectations. Higher average daily margins and an improved mix drove growth in our International Drilling segment. International growth also resulted in better performance for our Drilling Solutions segment.

"Daily margins in our International Drilling segment exceeded the $17,000 mark in the third quarter. We reached this milestone earlier than we expected. This result demonstrates the earnings power of our International segment. During the quarter we also started up previously awarded rigs. We have a path to substantial international growth with 13 rigs scheduled to deploy through early 2026 in the Middle East and Latin America. The opportunity set on top of those planned start-ups is also substantial.

"In the Lower 48 market, our leading-edge pricing remained stable, supporting daily rig margins that were essentially in line with our expectations. Our average rig count was just under the prior quarter. Although we have not yet seen the anticipated increases in gas-directed drilling or a recovery from reductions driven by E&P consolidation, we look forward to an improvement in Lower 48 drilling activity in 2025."

Segment Results

International Drilling adjusted EBITDA totaled $116.0 million, compared to $106.4 million in the second quarter. Average rig count increased to 85 from 84, driven by rig additions in Algeria and Saudi Arabia. Daily adjusted gross margin for the third quarter averaged $17,085, an increase of more than $1,000 compared to the prior quarter.

The U.S. Drilling segment reported third quarter adjusted EBITDA of $108.7 million, compared to $114.0 million in the second quarter. Nabors' third quarter Lower 48 average rig count totaled 68, versus 69 in the second quarter. Daily adjusted gross margin in the Lower 48 averaged $15,051, versus $15,598 in the prior quarter.

Drilling Solutions adjusted EBITDA increased to $34.3 million, compared to $32.5 million in the second quarter. This growth was driven by higher revenue in international markets of approximately 8% and higher penetration of performance software on Nabors U.S. rigs.

Rig Technologies' adjusted EBITDA was $6.1 million, versus $7.3 million in the second quarter. The decrease was spread across several business lines in the U.S., mainly capital equipment, spare parts, and energy transition.

Adjusted Free Cash Flow

Adjusted free cash flow was $18 million in the third quarter compared to $57 million in the preceding quarter. Capital expenditures totaled $118 million, including $37 million supporting the newbuilds in Saudi Arabia. This compares to $138 million in the second quarter, including $56 million supporting the newbuilds. The third quarter included two and a half additional months of interest payments for the notes issued late last year, translating into $11.7 million of interest. The first coupon payment for the notes occurred eight months after the notes were issued. Total interest payments for the quarter were $82 million, compared to $31 million in the prior quarter.

William Restrepo, Nabors CFO, stated, "Last week we signed an agreement to acquire Parker Wellbore. The transaction is well aligned with our long-term strategy. It grows our capex-light NDS business, expands our international footprint, and helps us delever Nabors. Additionally, Parker is on track to earn meaningful EBITDA this year, totaling $180 million with attractive growth. Finally, Parker comes with low debt and it generates positive cash flow. This is before targeted annual synergies of $35 million. We are excited about the addition of Parker to the Nabors platform.

"Nabors' third quarter results met our outlook. Daily adjusted gross margin in our International Drilling segment expanded by more than $1,000. We reached the $17,000 daily margin target a quarter ahead of schedule, driven by exceptional performances in Saudi Arabia and Latin America, which both increased daily margins, by $1,200 and $1,300 respectively. We have three rigs scheduled to deploy in the fourth quarter, each with attractive economics. These deployments will be somewhat offset by the 12-month suspension of three lower-margin rigs in the Kingdom.

"Strength in the international markets also led to sequential growth in our Drilling Solutions business. We experienced an increase in international casing running jobs, augmented by greater deployment of performance software products, driving the segment's gross margin above 53%.

"In our Lower 48 drilling business, pricing discipline and strict expense control maintained our average daily margin above $15,000 and in line with our forecast. We expect relative stability in the fourth quarter in both margin and rig count. Our rig count forecast is dependent on stable oil prices, a similar level of churn, and stability in the overall market.

"Our capital spending target for the fourth quarter is now $230 million, with capital expenditures for SANAD newbuilds forecast at $105 million. The resulting annual capital spending forecast for 2024 is now $600 million, including $230 million related to the SANAD newbuilds. SANAD's rig supplier has improved its performance in reaching manufacturing milestones. We now expect earlier delivery of our rigs going forward. This has accelerated approximately $40 million of newbuild capital spending into 2024. We are targeting reductions in various markets to offset this increase.

"Given the SANAD newbuild capital expenditures moving forward to 2024, the recent rig suspensions in Saudi Arabia and the slightly lower U.S. activity in the fourth quarter, we now expect our full year free cash flow to close between $100 and $130 million."

Outlook

Nabors expects the following metrics for the fourth quarter of 2024:

U.S. Drilling               

  • Lower 48 average rig count of approximately 68 rigs
  • Lower 48 daily adjusted gross margin of $15,000
  • Alaska and Gulf of Mexico combined adjusted EBITDA up approximately $1.5 million versus the third quarter, with an additional rig starting work in Alaska

International

  • Average rig count of approximately 84 rigs
  • Daily adjusted gross margin of approximately $17,000

Drilling Solutions

  • Adjusted EBITDA of $36 to $37 million

Rig Technologies

  • Adjusted EBITDA of $9 to $10 million

Capital Expenditures

  • Capital expenditures of $230 million, with $105 million for the newbuilds in Saudi Arabia
  • Full-year capital expenditures of approximately $600 million, with $230 million for the SANAD newbuilds
  • This forecast includes accelerated timelines from SANAD's rig supplier totaling an estimated $40 million

Adjusted Free Cash Flow

  • Full-year adjusted free cash flow of $100 to $130 million

Mr. Petrello concluded, "The results from our International Drilling segment demonstrate the value we are building in this business. With our pending rig deployments across markets, our path to future growth is well defined. Our success is driven in large part from our advanced technology. We see the global client base increasingly embracing the benefits of our solutions."

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 the United States of America ("GAAP"). Adjusted operating income (loss) represents income (loss) from continuing operations before income taxes, interest expense, investment income (loss), and other, net. Adjusted EBITDA is computed similarly, but also excludes depreciation and amortization expenses. In addition, adjusted EBITDA and adjusted operating income (loss) exclude certain cash expenses that the Company is obligated to make. Net debt is calculated as total debt minus the sum of cash, cash equivalents and short-term investments.

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, performance and liquidity. 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 Hamilton, Bermuda at +441-292-1510 or via e-mail mark.andrews@nabors.com

No Offer or Solicitation

This communication is not intended to and shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote of approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

Important Additional Information and Where to Find It

In connection with the proposed transaction with Parker, Nabors will file with the SEC a Registration Statement on Form S-4 to register the shares of Nabors capital stock to be issued in connection with the proposed transaction. The Registration Statement will include a joint proxy statement/prospectus of Nabors and Parker. The definitive joint proxy statement/prospectus will be sent to the shareholders of each of Nabors and Parker seeking their approval of the proposed transaction and other related matters.

WE URGE INVESTORS AND SECURITY HOLDERS TO READ THE REGISTRATION STATEMENT ON FORM S-4 AND THE JOINT PROXY STATEMENT/PROSPECTUS INCLUDED WITHIN THE REGISTRATION STATEMENT ON FORM S-4 AND ANY OTHER RELEVANT DOCUMENTS WHEN THEY BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT PARKER, NABORS AND THE PROPOSED TRANSACTION. Investors and security holders will be able to obtain these materials (when they are available) and other documents filed with the SEC by Nabors or Parker free of charge at the SEC's website, www.sec.gov, or from Nabors at its website, www.nabors.com, or from Parker at its website, www.parkerwellbore.com.

Participants in the Solicitation

Nabors and certain of its directors, executive officers and other employees, and Parker and certain of its directors, executive officers and other employees may be deemed to be participants in the solicitation of proxies for security holder approvals to be obtained for the proposed transaction. A description of participants' direct or indirect interests, by security holdings or otherwise, will be included in the joint proxy statement/prospectus relating to the proposed transaction when it is filed with the SEC. Information regarding Nabors' directors and executive officers is available in its proxy statement filed with the SEC on April 25, 2024 in connection with its 2024 annual meeting of shareholders (the "Annual Meeting Proxy Statement") under "Proposal 1—Election of Directors— Director Nominees," "Proposal 1—Election of Directors—Other Executive Officers," "Compensation Discussion and Analysis" and "Share Ownership of Directors and Executive Officers." To the extent holdings of securities by potential Nabors participants (or the identity of such participants) have changed since the information printed in the Annual Meeting Proxy Statement, such information has been or will be reflected on Nabors' Statements of Change in Ownership on Forms 3 and 4 filed with the SEC. You may obtain free copies of these documents using the sources indicated above. Information regarding Parker's directors and executive officers is available on Parker's website as indicated above.

 

NABORS INDUSTRIES LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(Unaudited)














Three Months Ended


Nine Months Ended



September 30,


June 30,


September 30,

(In thousands, except per share amounts)


2024


2023


2024


2024


2023












Revenues and other income:











Operating revenues 


$ 731,805


$ 733,974


$ 734,798


$ 2,200,307


$ 2,280,180

Investment income (loss)


11,503


10,169


8,181


29,885


31,778

Total revenues and other income


743,308


744,143


742,979


2,230,192


2,311,958












Costs and other deductions:











Direct costs


431,705


447,751


440,225


1,309,007


1,365,611

General and administrative expenses


63,976


62,182


62,154


187,881


187,144

Research and engineering


14,404


14,016


14,362


42,629


42,371

Depreciation and amortization


159,234


161,337


160,141


477,060


484,066

Interest expense


55,350


44,042


51,493


157,222


135,347

Other, net


41,608


35,546


12,079


69,795


(8,604)

Total costs and other deductions


766,277


764,874


740,454


2,243,594


2,205,935












Income (loss) before income taxes


(22,969)


(20,731)


2,525


(13,402)


106,023

Income tax expense (benefit)


10,118


10,513


15,554


41,716


59,976












Net income (loss)


(33,087)


(31,244)


(13,029)


(55,118)


46,047

Less: Net (income) loss attributable to noncontrolling interest


(22,738)


(17,672)


(19,226)


(67,295)


(41,128)

Net income (loss) attributable to Nabors


$  (55,825)


$  (48,916)


$  (32,255)


$   (122,413)


$        4,919












Earnings (losses) per share:











   Basic 


$      (6.86)


$      (6.26)


$      (4.29)


$       (15.69)


$         (2.79)

   Diluted 


$      (6.86)


$      (6.26)


$      (4.29)


$       (15.69)


$         (2.79)












Weighted-average number of common shares outstanding:











   Basic 


9,213


9,148


9,207


9,199


9,168

   Diluted 


9,213


9,148


9,207


9,199


9,168























Adjusted EBITDA


$ 221,720


$ 210,025


$ 218,057


$    660,790


$    685,054












Adjusted operating income (loss)


$   62,486


$   48,688


$   57,916


$    183,730


$    200,988

 

NABORS INDUSTRIES LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)










September 30,


June 30,


December 31,

(In thousands)


2024


2024


2023








ASSETS







Current assets:







Cash and short-term investments


$        459,302


$    473,608


$    1,070,178

Accounts receivable, net


384,723


368,550


347,837

Other current assets


228,300


235,632


227,663

     Total current assets


1,072,325


1,077,790


1,645,678

Property, plant and equipment, net


2,766,411


2,813,148


2,898,728

Other long-term assets


714,900


724,755


733,559

     Total assets


$    4,553,636


$ 4,615,693


$    5,277,965








LIABILITIES AND EQUITY







Current liabilities:







Current debt


$                   -


$                -


$       629,621

Trade accounts payable


316,694


331,468


294,442

Other current liabilities


254,884


259,454


289,918

     Total current liabilities


571,578


590,922


1,213,981

Long-term debt


2,503,270


2,514,169


2,511,519

Other long-term liabilities


244,679


247,587


271,380

     Total liabilities


3,319,527


3,352,678


3,996,880








Redeemable noncontrolling interest in subsidiary


773,525


761,415


739,075








Equity:







Shareholders' equity


191,363


250,371


326,614

Noncontrolling interest


269,221


251,229


215,396

     Total equity


460,584


501,600


542,010

     Total liabilities and equity


$   4,553,636


$  4,615,693


$   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


Nine Months Ended




September 30,


June 30,


September 30,

(In thousands, except rig activity)


2024


2023


2024


2024


2023













Operating revenues:












U.S. Drilling


$ 254,773


$ 276,385


$ 259,723


$    786,485


$    941,867


International Drilling


368,594


344,780


356,733


1,074,686


1,002,478


Drilling Solutions


79,544


72,831


82,961


238,079


224,729


Rig Technologies (1)


45,809


61,437


49,546


145,511


183,481


Other reconciling items (2)


(16,915)


(21,459)


(14,165)


(44,454)


(72,375)


Total operating revenues


$ 731,805


$ 733,974


$ 734,798


$ 2,200,307


$ 2,280,180













Adjusted EBITDA: (3)












U.S. Drilling


$ 108,660


$ 117,357


$ 114,020


$   343,083


$    415,292


International Drilling


115,951


96,175


106,371


324,820


283,114


Drilling Solutions


34,311


30,419


32,468


98,566


95,089


Rig Technologies (1)


6,104


7,221


7,330


20,235


18,583


Other reconciling items (4)


(43,306)


(41,147)


(42,132)


(125,914)


(127,024)


Total adjusted EBITDA


$ 221,720


$ 210,025


$ 218,057


$   660,790


$    685,054













Adjusted operating income (loss): (5)












U.S. Drilling


$   41,694


$   49,582


$   45,085


$   137,308


$    210,859


International Drilling


32,182


9,862


23,672


78,330


22,226


Drilling Solutions


29,231


25,341


27,319


83,443


80,830


Rig Technologies (1)


2,761


4,995


4,860


11,830


13,741


Other reconciling items (4)


(43,382)


(41,092)


(43,020)


(127,181)


(126,668)


Total adjusted operating income (loss)


$   62,486


$   48,688


$   57,916


$   183,730


$    200,988













Rig activity:











Average Rigs Working: (7)












     Lower 48


67.8


73.7


68.7


69.5


82.8


     Other US


6.2


6.7


6.3


6.4


6.9


U.S. Drilling


74.0


80.4


75.0


75.9


89.7


International Drilling


84.7


77.2


84.4


83.4


76.9


Total average rigs working


158.7


157.6


159.4


159.3


166.6













Daily Rig Revenue: (6),(8)












     Lower 48


$   34,812


$   35,697


$   35,334


$     35,209


$     36,324


     Other US


66,352


56,163


68,008


66,205


64,312


U.S. Drilling (10)


37,441


37,397


38,076


37,831


38,474


International Drilling


47,281


48,528


46,469


47,041


47,728













Daily Adjusted Gross Margin: (6),(9)












     Lower 48


$   15,051


$   15,855


$   15,598


$     15,561


$     16,505


     Other US


37,363


27,631


38,781


37,058


33,618


U.S. Drilling (10)


16,911


16,833


17,544


17,379


17,820


International Drilling


17,085


15,778


16,050


16,407


15,762



(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 U.S. Drilling segment includes the Lower 48, Alaska, and Gulf of Mexico operating areas.

 

NABORS INDUSTRIES LTD. AND SUBSIDIARIES


Reconciliation of Earnings per Share


(Unaudited)



















Three Months Ended 


Nine Months Ended



September 30,


June 30,


September 30,


(in thousands, except per share amounts)

2024


2023


2024


2024


2023




BASIC EPS:
















Net income (loss) (numerator):
















Income (loss), net of tax

$

(33,087)


$

(31,244)


$

(13,029)


$

(55,118)


$

46,047


Less: net (income) loss attributable to noncontrolling interest


(22,738)



(17,672)



(19,226)



(67,295)



(41,128)


Less: deemed dividends to SPAC public shareholders




(823)







(8,180)


Less: accrued distribution on redeemable noncontrolling interest in subsidiary


(7,363)



(7,517)



(7,283)



(21,929)



(22,307)


Numerator for basic earnings per share:
















Adjusted income (loss), net of tax - basic

$

(63,188)


$

(57,256)


$

(39,538)


$

(144,342)


$

(25,568)


















Weighted-average number of shares outstanding - basic


9,213



9,148



9,207



9,199



9,168


Earnings (losses) per share:
















Total Basic

$

(6.86)


$

(6.26)


$

(4.29)


$

(15.69)


$

(2.79)


















DILUTED EPS:
















Adjusted income (loss), net of tax - diluted

$

(63,188)


$

(57,256)


$

(39,538)


$

(144,342)


$

(25,568)


















Weighted-average number of shares outstanding - diluted 


9,213



9,148



9,207



9,199



9,168


Earnings (losses) per share:
















Total Diluted

$

(6.86)


$

(6.26)


$

(4.29)


$

(15.69)


$

(2.79)


 

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 September 30, 2024



U.S.
Drilling


International
Drilling


Drilling
Solutions


Rig
Technologies


Other
reconciling
items


Total














Adjusted operating income (loss)


$   41,694


$       32,182


$  29,231


$           2,761


$    (43,382)


$    62,486

Depreciation and amortization 


66,966


83,769


5,080


3,343


76


159,234

Adjusted EBITDA


$ 108,660


$     115,951


$  34,311


$           6,104


$    (43,306)


$  221,720





























Three Months Ended September 30, 2023



U.S.
Drilling


International
Drilling


Drilling
Solutions


Rig
Technologies


Other
reconciling
items


Total














Adjusted operating income (loss)


$   49,582


$         9,862


$  25,341


$           4,995


$    (41,092)


$    48,688

Depreciation and amortization 


67,775


86,313


5,078


2,226


(55)


161,337

Adjusted EBITDA


$ 117,357


$       96,175


$  30,419


$           7,221


$    (41,147)


$  210,025





























Three Months Ended June 30, 2024



U.S.
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


$ 114,020


$     106,371


$  32,468


$           7,330


$    (42,132)


$  218,057





























Nine Months Ended September 30, 2024



U.S.
Drilling


International
Drilling


Drilling
Solutions


Rig
Technologies


Other
reconciling
items


Total














Adjusted operating income (loss)


$ 137,308


$       78,330


$  83,443


$         11,830


$ (127,181)


$  183,730

Depreciation and amortization 


205,775


246,490


15,123


8,405


1,267


477,060

Adjusted EBITDA


$ 343,083


$     324,820


$  98,566


$         20,235


$ (125,914)


$  660,790





























Nine Months Ended September 30, 2023



U.S.
Drilling


International
Drilling


Drilling
Solutions


Rig
Technologies


Other
reconciling
items


Total














Adjusted operating income (loss)


$ 210,859


$       22,226


$  80,830


$         13,741


$ (126,668)


$  200,988

Depreciation and amortization 


204,433


260,888


14,259


4,842


(356)


484,066

Adjusted EBITDA


$ 415,292


$     283,114


$  95,089


$         18,583


$ (127,024)


$  685,054

 

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


Nine Months Ended




September 30,


June 30,


September 30,

(In thousands)


2024


2023


2024


2024


2023













Lower 48 - U.S. Drilling












Adjusted operating income (loss)


$   30,353


$   40,366


$   32,841


$ 102,458


$ 174,933


Plus: General and administrative costs


5,084


5,239


4,390


14,297


15,503


Plus: Research and engineering


972


1,389


909


2,845


4,098


GAAP Gross Margin


36,409


46,994


38,140


119,600


194,534


Plus: Depreciation and amortization


57,470


60,447


59,332


176,535


178,487


Adjusted gross margin


$   93,879


$ 107,441


$   97,472


$ 296,135


$ 373,021













Other - U.S. Drilling












Adjusted operating income (loss)


$   11,341


$     9,216


$   12,244


$   34,850


$   35,926


Plus: General and administrative costs


313


331


306


944


999


Plus: Research and engineering


42


90


45


134


349


GAAP Gross Margin


11,696


9,637


12,595


35,928


37,274


Plus: Depreciation and amortization


9,496


7,329


9,602


29,240


25,945


Adjusted gross margin


$   21,192


$   16,966


$   22,197


$   65,168


$   63,219













U.S. Drilling












Adjusted operating income (loss)


$   41,694


$   49,582


$   45,085


$ 137,308


$ 210,859


Plus: General and administrative costs


5,397


5,570


4,696


15,241


16,502


Plus: Research and engineering


1,014


1,479


954


2,979


4,447


GAAP Gross Margin


48,105


56,631


50,735


155,528


231,808


Plus: Depreciation and amortization


66,966


67,776


68,934


205,775


204,432


Adjusted gross margin


$ 115,071


$ 124,407


$ 119,669


$ 361,303


$ 436,240













International Drilling












Adjusted operating income (loss)


$   32,182


$     9,862


$   23,672


$   78,330


$   22,226


Plus: General and administrative costs


15,699


14,300


15,434


45,548


42,725


Plus: Research and engineering


1,543


1,622


1,404


4,454


5,229


GAAP Gross Margin


49,424


25,784


40,510


128,332


70,180


Plus: Depreciation and amortization


83,768


86,313


82,700


246,491


260,887


Adjusted gross margin


$ 133,192


$ 112,097


$ 123,210


$ 374,823


$ 331,067


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


Nine Months Ended



September 30,


June 30,


September 30,

(In thousands)


2024


2023


2024


2024


2023












Net income (loss)


$ (33,087)


$ (31,244)


$ (13,029)


$ (55,118)


$   46,047

Income tax expense (benefit)


10,118


10,513


15,554


41,716


59,976

Income (loss) from continuing operations before income taxes


(22,969)


(20,731)


2,525


(13,402)


106,023

Investment (income) loss


(11,503)


(10,169)


(8,181)


(29,885)


(31,778)

Interest expense


55,350


44,042


51,493


157,222


135,347

Other, net


41,608


35,546


12,079


69,795


(8,604)

Adjusted operating income (loss) (1)


62,486


48,688


57,916


183,730


200,988

Depreciation and amortization 


159,234


161,337


160,141


477,060


484,066

Adjusted EBITDA (2)


$ 221,720


$ 210,025


$ 218,057


$ 660,790


$ 685,054


(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)










September 30,


June 30,


December 31,

(In thousands)


2024


2024


2023








Current debt


$                   -


$                   -


$       629,621

Long-term debt


2,503,270


2,514,169


2,511,519

     Total Debt


2,503,270


2,514,169


3,141,140

Less: Cash and short-term investments


459,302


473,608


1,070,178

     Net Debt


$    2,043,968


$    2,040,561


$    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


Nine Months Ended



September 30,


June 30,


September 30,

(In thousands)


2024


2024


2024








Net cash provided by operating activities


$           143,615


$           181,659


$             432,513

Add: Capital expenditures, net of proceeds from sales of assets


(126,071)


(125,010)


(350,206)








Adjusted free cash flow


$             17,544


$             56,649


$               82,307


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.

 

Cision View original content:https://www.prnewswire.com/news-releases/nabors-announces-third-quarter-2024-results-302283628.html

SOURCE Nabors Industries Ltd.

FAQ

What were Nabors' (NBR) Q3 2024 financial results?

Nabors reported Q3 2024 operating revenues of $732 million, a net loss of $56 million ($6.86 per diluted share), and adjusted EBITDA of $222 million.

How did Nabors' (NBR) International Drilling segment perform in Q3 2024?

The International Drilling segment's adjusted EBITDA totaled $116.0 million, with daily adjusted gross margin averaging $17,085, an increase of over $1,000 compared to Q2.

What is Nabors' (NBR) outlook for Q4 2024 Lower 48 operations?

Nabors expects a Lower 48 average rig count of approximately 68 rigs and a daily adjusted gross margin of $15,000 in Q4 2024.

What is Nabors' (NBR) capital expenditure forecast for 2024?

Nabors forecasts full-year 2024 capital expenditures of approximately $600 million, including $230 million for SANAD newbuilds.

What is the expected impact of Nabors' (NBR) acquisition of Parker Wellbore?

Parker Wellbore is expected to generate $180 million EBITDA this year, with Nabors identifying synergies potential of $35 million within 12 months of closing.

Nabors Industries Ltd.

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Oil & Gas Drilling
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HAMILTON, HM08