Nabors Announces Third Quarter 2024 Results
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.
- 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
- 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
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
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.
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 this year. Nabors has identified synergies potential at an annualized run-rate of$180 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$35 million in net debt.$100 million - 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
"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
The
Drilling Solutions adjusted EBITDA increased to
Rig Technologies' adjusted EBITDA was
Adjusted Free Cash Flow
Adjusted free cash flow was
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
"Nabors' third quarter results met our outlook. Daily adjusted gross margin in our International Drilling segment expanded by more than
"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
"In our Lower 48 drilling business, pricing discipline and strict expense control maintained our average daily margin above
"Our capital spending target for the fourth quarter is now
"Given the SANAD newbuild capital expenditures moving forward to 2024, the recent rig suspensions in
Outlook
Nabors expects the following metrics for the fourth quarter of 2024:
- Lower 48 average rig count of approximately 68 rigs
- Lower 48 daily adjusted gross margin of
$15,000 Alaska and Gulf ofMexico combined adjusted EBITDA up approximately versus the third quarter, with an additional rig starting work in$1.5 million Alaska
International
- Average rig count of approximately 84 rigs
- Daily adjusted gross margin of approximately
$17,000
Drilling Solutions
- Adjusted EBITDA of
to$36 $37 million
Rig Technologies
- Adjusted EBITDA of
to$9 $10 million
Capital Expenditures
- Capital expenditures of
, with$230 million for the newbuilds in$105 million Saudi Arabia - Full-year capital expenditures of approximately
, with$600 million for the SANAD newbuilds$230 million - 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
to$100 $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
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
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 | ||||||||||
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 | $ 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 | $ 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: | |||||||||||
$ 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 | |||||||||||
Adjusted EBITDA: (3) | |||||||||||
$ 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 | $ 660,790 | $ 685,054 | |||||||||
Adjusted operating income (loss): (5) | |||||||||||
$ 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 | ||||||
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 | ||||||
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 | ||||||
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 |
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 | ||||||||||||
| International | Drilling | Rig | Other | 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 | $ 115,951 | $ 34,311 | $ 6,104 | $ (43,306) | $ 221,720 | |||||||
Three Months Ended September 30, 2023 | ||||||||||||
| International | Drilling | Rig | Other | 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 | $ 96,175 | $ 30,419 | $ 7,221 | $ (41,147) | $ 210,025 | |||||||
Three Months Ended June 30, 2024 | ||||||||||||
| International | Drilling | Rig | Other | 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 | |||||||
Nine Months Ended September 30, 2024 | ||||||||||||
| International | Drilling | Rig | Other | Total | |||||||
Adjusted operating income (loss) | $ 78,330 | $ 83,443 | $ 11,830 | $ 183,730 | ||||||||
Depreciation and amortization | 205,775 | 246,490 | 15,123 | 8,405 | 1,267 | 477,060 | ||||||
Adjusted EBITDA | $ 324,820 | $ 98,566 | $ 20,235 | $ 660,790 | ||||||||
Nine Months Ended September 30, 2023 | ||||||||||||
| International | Drilling | Rig | Other | Total | |||||||
Adjusted operating income (loss) | $ 22,226 | $ 80,830 | $ 13,741 | $ 200,988 | ||||||||
Depreciation and amortization | 204,433 | 260,888 | 14,259 | 4,842 | (356) | 484,066 | ||||||
Adjusted EBITDA | $ 283,114 | $ 95,089 | $ 18,583 | $ 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 - | |||||||||||
Adjusted operating income (loss) | $ 30,353 | $ 40,366 | $ 32,841 | ||||||||
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 | $ 97,472 | |||||||||
Other - | |||||||||||
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 | ||||||
Adjusted operating income (loss) | $ 41,694 | $ 49,582 | $ 45,085 | ||||||||
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 | |||||||||||
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 |
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) | $ 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) |
(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. |
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?
How did Nabors' (NBR) International Drilling segment perform in Q3 2024?
What is Nabors' (NBR) outlook for Q4 2024 Lower 48 operations?
What is Nabors' (NBR) capital expenditure forecast for 2024?