HAMILTON,
Bermuda, April 24, 2024 /PRNewswire/ -- Nabors
Industries Ltd. ("Nabors" or the "Company") (NYSE: NBR) today
reported first quarter 2024 operating revenues of $734 million, compared to operating revenues of
$726 million in the fourth quarter of
2023. The net loss attributable to Nabors shareholders for the
quarter was $34 million, compared to
a net loss of $17 million in the
fourth quarter. This equates to a loss of $4.54 per diluted share, compared to a loss per
diluted share of $2.70 in the fourth
quarter. The first quarter results included a gain, related to
mark-to-market treatment of Nabors warrants, of $6 million, or $0.62 per diluted share, compared to a gain of
$10 million, or $1.14 per diluted share, in the fourth quarter.
First quarter adjusted EBITDA was $221
million, compared to $230
million in the previous quarter.
Highlights
- Nabors was awarded three rigs in Argentina, on multiyear contracts with
attractive economics. The Company will redeploy inactive rigs
from the Lower 48 market. These awards further solidify Nabors'
position in this key market.
- Received notification of commercial qualification for three
rigs in a major market in the Middle
East. The Company plans to deploy existing in-country rigs
for this opportunity.
- A Lower 48 drilling contractor has begun standardizing its
entire fleet to Nabors RigCLOUD® platform. This
development clearly demonstrates the value of Nabors third-party
strategy.
- Canrig received an order for six land drilling packages from an
existing client in the Middle
East. This latest order is recognition of the excellent
track record we have established with this customer.
- Nabors was named a double finalist for the Reuters Global
Energy Transition Awards 2024 in the "Portfolio Transformation" and
"Technology Whitespace" categories.
Anthony G.
Petrello, Nabors Chairman, CEO and President, commented,
"Our first quarter operating results were stronger than we
expected, driven by resilient pricing and lower costs in our Lower
48 drilling operations, as well as higher than forecast OEM repair
revenue and energy transition revenue in our Rig Technologies
segment.
"Rig count increased in our International
segment, driven by rig startups in Saudi
Arabia and Algeria, as part
of our commitment to deploy seven rigs in these two countries
during 2024. We have also received recent awards in Argentina for three more rigs. I believe we
are in the midst of the largest opportunity that we've seen in the
last decade to strengthen our international business.
"Pricing in the Lower 48 market remained firm, as
utilization of our highest specification rigs stayed strong across
several important markets. Average rig count increased compared to
the prior quarter, but was slightly below our estimates, mainly
reflecting activity reductions in natural gas basins. Results in
our Drilling Solutions segment reflected reduced activity in the
Lower 48, partially offset by better growth from international
markets."
Segment Results
The U.S. Drilling segment reported first quarter
adjusted EBITDA of $120.4 million,
compared to $118.4 million in the
fourth quarter of 2023. Nabors' first quarter Lower 48 average rig
count totaled 72, up from 70 in the prior quarter. Daily adjusted
gross margin in that market averaged $16,011, a decrease of $229 sequentially.
International Drilling adjusted EBITDA totaled
$102.5 million, compared to
$105.5 million in the fourth quarter.
Rig count averaged 81, up from 80 in the previous quarter, driven
by rig startups in Algeria and the
prior start of a newbuild in Saudi
Arabia. The impact of this higher rig count was offset by
downtime related to rig certification requirements following recent
contract renewals in Saudi Arabia,
as well as labor unrest on several rigs in Colombia. Daily adjusted gross margin for the
fourth quarter averaged $16,061.
International Drilling segment revenue of $349 million increased by 9% compared to the
first quarter of 2023, as average rig count increased by nearly
five rigs.
Drilling Solutions adjusted EBITDA was
$31.8 million, compared to
$34.5 million in the fourth quarter.
Revenue on Nabors rigs operating in the Lower 48 and international
markets increased sequentially.
In Rig Technologies, adjusted EBITDA reached
$6.8 million, versus $8.8 million in the fourth quarter. OEM rental
and repair EBITDA increased sequentially, while other aftermarket,
capital equipment, and energy transition EBITDA declined following
seasonally strong year end deliveries.
Adjusted Free Cash Flow
Adjusted free cash flow was $8 million in the first quarter. Capital
expenditures totaled $112 million,
which included $35 million supporting
the newbuilds in Saudi Arabia.
This compares to $124 million in the
fourth quarter, including $43 million
supporting the newbuilds.
William Restrepo,
Nabors CFO, stated, "Results across our operations were higher than
we forecast. The strength of the international drilling markets
continues to surprise us to the upside with the recent awards in
Argentina and the notification on
a tender in another Middle East
market, on top of the material ongoing deployments in Saudi Arabia and Algeria. We restarted two rigs in Algeria during the first quarter, and a third
in early April. Algeria has
historically been an important market for Nabors, and the
recommencement of operations with existing rigs marks a key
development for us. Looking to the second quarter, we expect our
international rig count to increase with a newbuild in Saudi Arabia and the fourth rig in
Algeria. We expect the ongoing
deployments and the more recent awards, as well as several open
opportunities, to generate a material increase in our International
EBITDA over the already targeted increase for 2025.
"Firm pricing in the Lower 48 bolstered daily
gross margin. We again reduced costs in this market. Looking to the
second quarter, we continue to experience sluggish activity in the
natural gas basins. This should keep average rig count slightly
below the average for the first quarter.
"We retired both the convertible notes that were
due in January 2024 and the senior
notes due in 2025, with the proceeds from our $650 million notes offering in the fourth quarter
of 2023. Our next maturity is in 2026.
"We still have a number of open international
tenders and active negotiations. It's increasingly evident that the
robust trends in our international segment should continue to
provide us with high return opportunities with attractive payback
periods. Nonetheless, we intend to avoid taking on more than we can
afford. We will remain focused on generating free cash flow and
reducing our net debt."
Outlook
Nabors expects the following metrics for the
second quarter of 2024:
U.S.
Drilling
- Lower 48 average rig count of approximately 70 rigs
- Lower 48 daily adjusted gross margin of approximately
$15,500
- Alaska and Gulf of Mexico adjusted EBITDA of
approximately $21 million
International
- Average rig count up by two to three rigs versus the first
quarter average
- Daily adjusted gross margin of approximately $15,700
Drilling Solutions
- Adjusted EBITDA of $30 -
$32 million
Rig Technologies
- Adjusted EBITDA of $8 -
$10 million
Capital Expenditures
- Capital expenditures of approximately $190 million, with approximately $70 million for the newbuilds in Saudi Arabia
- Full-year capital expenditures of approximately $590 million, including funding for the recent
rig awards
Mr. Petrello concluded, "I am pleased with our
early success to secure additional backlog in our international
business. We are targeting several more opportunities and are
optimistic for additional success. We also see growing adoption of
our advanced technology, both in the U.S. on third-party rigs and
in international markets. These developments validate our strategy
and should drive future free cash flow."
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 and
performance. Securities analysts and investors also use these
measures as some of the metrics on which they analyze the Company's
performance. Other companies in this industry may compute these
measures differently. Reconciliations of consolidated adjusted
EBITDA and adjusted operating income (loss) to income (loss) from
continuing operations before income taxes, net debt to total debt,
and adjusted free cash flow to net cash provided by operations,
which are their nearest comparable GAAP financial measures, are
included in the tables at the end of this press release. We do
not provide a forward-looking reconciliation of our outlook for
Segment Adjusted EBITDA, Segment Gross Margin or Adjusted Free Cash
Flow, as the amount and significance of items required to develop
meaningful comparable GAAP financial measures cannot be estimated
at this time without unreasonable efforts. These special items
could be meaningful.
Investor Contacts: William C. Conroy, CFA, Vice President of
Corporate Development & Investor Relations, +1 281-775-2423 or
via e-mail william.conroy@nabors.com, or Kara Peak, Director of Corporate Development
& Investor Relations, +1 281-775-4954 or via email
kara.peak@nabors.com. To request investor materials, contact
Nabors' corporate headquarters in Hamilton, Bermuda at +441-292-1510 or via
e-mail mark.andrews@nabors.com
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
December
31,
|
|
(In thousands,
except per share amounts)
|
|
2024
|
|
2023
|
|
2023
|
|
|
|
|
|
|
|
|
Revenues and other
income:
|
|
|
|
|
|
|
|
Operating
revenues
|
|
$ 733,704
|
|
$ 779,139
|
|
$ 725,801
|
|
Investment income
(loss)
|
|
10,201
|
|
9,866
|
|
12,042
|
|
Total revenues and
other income
|
|
743,905
|
|
789,005
|
|
737,843
|
|
|
|
|
|
|
|
|
Costs and other
deductions:
|
|
|
|
|
|
|
|
Direct costs
|
|
437,077
|
|
462,329
|
|
424,769
|
|
General and
administrative expenses
|
|
61,751
|
|
61,730
|
|
57,003
|
|
Research and
engineering
|
|
13,863
|
|
15,074
|
|
13,926
|
|
Depreciation and
amortization
|
|
157,685
|
|
163,031
|
|
161,228
|
|
Interest
expense
|
|
50,379
|
|
45,141
|
|
49,938
|
|
Other, net
|
|
16,108
|
|
(42,375)
|
|
7,878
|
|
Total costs and other
deductions
|
|
736,863
|
|
704,930
|
|
714,742
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
|
7,042
|
|
84,075
|
|
23,101
|
|
Income tax expense
(benefit)
|
|
16,044
|
|
23,015
|
|
19,244
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
(9,002)
|
|
61,060
|
|
3,857
|
|
Less: Net (income) loss
attributable to noncontrolling interest
|
|
(25,331)
|
|
(11,836)
|
|
(20,560)
|
|
Net income (loss)
attributable to Nabors
|
|
$ (34,333)
|
|
$
49,224
|
|
$
(16,703)
|
|
|
|
|
|
|
|
|
Earnings (losses) per
share:
|
|
|
|
|
|
|
|
Basic
|
|
$ (4.54)
|
|
$ 4.39
|
|
$
(2.70)
|
|
Diluted
|
|
$ (4.54)
|
|
$ 4.11
|
|
$
(2.70)
|
|
|
|
|
|
|
|
|
Weighted-average number
of common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
|
9,176
|
|
9,160
|
|
9,133
|
|
Diluted
|
|
9,176
|
|
9,867
|
|
9,133
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$ 221,013
|
|
$ 240,006
|
|
$ 230,103
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss)
|
|
$
63,328
|
|
$
76,975
|
|
$
68,875
|
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(Unaudited)
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
(In
thousands)
|
|
2024
|
|
2023
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and short-term
investments
|
|
$
425,560
|
|
$
1,070,178
|
|
Accounts receivable,
net
|
|
416,873
|
|
347,837
|
|
Other current
assets
|
|
231,926
|
|
227,663
|
|
Total current
assets
|
|
1,074,359
|
|
1,645,678
|
|
Property, plant and
equipment, net
|
|
2,841,294
|
|
2,898,728
|
|
Other long-term
assets
|
|
729,319
|
|
733,559
|
|
Total assets
|
|
$ 4,644,972
|
|
$
5,277,965
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Current debt
|
|
$
-
|
|
$
629,621
|
|
Trade accounts
payable
|
|
319,436
|
|
294,442
|
|
Other current
liabilities
|
|
282,982
|
|
289,918
|
|
Total current
liabilities
|
|
602,418
|
|
1,213,981
|
|
Long-term
debt
|
|
2,512,175
|
|
2,511,519
|
|
Other long-term
liabilities
|
|
256,956
|
|
271,380
|
|
Total liabilities
|
|
3,371,549
|
|
3,996,880
|
|
|
|
|
|
|
Redeemable
noncontrolling interest in subsidiary
|
|
750,600
|
|
739,075
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
Shareholders'
equity
|
|
286,338
|
|
326,614
|
|
Noncontrolling
interest
|
|
236,485
|
|
215,396
|
|
Total equity
|
|
522,823
|
|
542,010
|
|
Total liabilities and
equity
|
|
$ 4,644,972
|
|
$
5,277,965
|
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
|
SEGMENT
REPORTING
|
|
(Unaudited)
|
|
|
The following tables
set forth certain information with respect to our reportable
segments and rig activity:
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
(In thousands,
except rig activity)
|
|
2024
|
|
2023
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues:
|
|
|
|
|
|
|
|
|
U.S.
Drilling
|
|
$
271,989
|
|
$
350,652
|
|
$
265,762
|
|
|
International
Drilling
|
|
349,359
|
|
320,048
|
|
342,771
|
|
|
Drilling
Solutions
|
|
75,574
|
|
75,043
|
|
77,028
|
|
|
Rig Technologies
(1)
|
|
50,156
|
|
58,479
|
|
59,287
|
|
|
Other reconciling items
(2)
|
|
(13,374)
|
|
(25,083)
|
|
(19,047)
|
|
|
Total operating
revenues
|
|
$
733,704
|
|
$
779,139
|
|
$
725,801
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA:
(3)
|
|
|
|
|
|
|
|
|
U.S.
Drilling
|
|
$
120,403
|
|
$
156,489
|
|
$
118,371
|
|
|
International
Drilling
|
|
102,498
|
|
88,608
|
|
105,540
|
|
|
Drilling
Solutions
|
|
31,787
|
|
31,914
|
|
34,502
|
|
|
Rig Technologies
(1)
|
|
6,801
|
|
4,954
|
|
8,811
|
|
|
Other reconciling items
(4)
|
|
(40,476)
|
|
(41,959)
|
|
(37,121)
|
|
|
Total adjusted
EBITDA
|
|
$
221,013
|
|
$
240,006
|
|
$
230,103
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss): (5)
|
|
|
|
|
|
|
|
|
U.S.
Drilling
|
|
$
50,529
|
|
$
85,869
|
|
$
51,494
|
|
|
International
Drilling
|
|
22,476
|
|
1,957
|
|
18,642
|
|
|
Drilling
Solutions
|
|
26,893
|
|
27,138
|
|
30,127
|
|
|
Rig Technologies
(1)
|
|
4,209
|
|
3,694
|
|
5,788
|
|
|
Other reconciling items
(4)
|
|
(40,779)
|
|
(41,683)
|
|
(37,176)
|
|
|
Total adjusted
operating income (loss)
|
|
$
63,328
|
|
$
76,975
|
|
$
68,875
|
|
|
|
|
|
|
|
|
|
|
|
Rig
activity:
|
|
|
|
|
|
|
|
|
Average Rigs Working:
(7)
|
|
|
|
|
|
|
|
|
Lower 48
|
|
71.9
|
|
93.3
|
|
70.3
|
|
|
Other US
|
|
6.8
|
|
7.0
|
|
6.0
|
|
|
U.S.
Drilling
|
|
78.7
|
|
100.3
|
|
76.3
|
|
|
International
Drilling
|
|
81.0
|
|
76.4
|
|
79.6
|
|
|
Total average rigs
working
|
|
159.7
|
|
176.7
|
|
155.9
|
|
|
|
|
|
|
|
|
|
|
|
Daily Rig Revenue:
(6),(8)
|
|
|
|
|
|
|
|
|
Lower 48
|
|
$
35,468
|
|
$
36,453
|
|
$
35,776
|
|
|
Other US
|
|
64,402
|
|
70,690
|
|
62,346
|
|
|
U.S. Drilling
(10)
|
|
37,968
|
|
38,842
|
|
37,865
|
|
|
International
Drilling
|
|
47,384
|
|
46,517
|
|
46,782
|
|
|
|
|
|
|
|
|
|
|
|
Daily Adjusted Gross
Margin: (6),(9)
|
|
|
|
|
|
|
|
|
Lower 48
|
|
$
16,011
|
|
$
16,690
|
|
$
16,240
|
|
|
Other US
|
|
35,184
|
|
37,114
|
|
34,641
|
|
|
U.S. Drilling
(10)
|
|
17,667
|
|
18,115
|
|
17,687
|
|
|
International
Drilling
|
|
16,061
|
|
15,222
|
|
16,651
|
|
|
|
|
(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
|
|
|
March
31,
|
|
December
31,
|
|
|
(in thousands,
except per share amounts)
|
2024
|
|
2023
|
|
2023
|
|
|
|
|
BASIC
EPS:
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
(numerator):
|
|
|
|
|
|
|
|
|
|
|
Income (loss), net of
tax
|
$
|
(9,002)
|
|
$
|
61,060
|
|
$
|
3,857
|
|
|
Less: net (income) loss
attributable to noncontrolling interest
|
|
(25,331)
|
|
|
(11,836)
|
|
|
(20,560)
|
|
|
Less: deemed dividends
to SPAC public shareholders
|
|
—
|
|
|
—
|
|
|
(458)
|
|
|
Less: distributed and
undistributed earnings allocated to unvested
shareholders
|
|
—
|
|
|
(1,702)
|
|
|
—
|
|
|
Less: accrued
distribution on redeemable noncontrolling interest in
subsidiary
|
|
(7,283)
|
|
|
(7,354)
|
|
|
(7,517)
|
|
|
Numerator for basic
earnings per share:
|
|
|
|
|
|
|
|
|
|
|
Adjusted income (loss),
net of tax - basic
|
$
|
(41,616)
|
|
$
|
40,168
|
|
$
|
(24,678)
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number
of shares outstanding - basic
|
|
9,176
|
|
|
9,160
|
|
|
9,133
|
|
|
Earnings (losses) per
share:
|
|
|
|
|
|
|
|
|
|
|
Total Basic
|
$
|
(4.54)
|
|
$
|
4.39
|
|
$
|
(2.70)
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED
EPS:
|
|
|
|
|
|
|
|
|
|
|
Adjusted income (loss)
from continuing operations, net of tax - basic
|
$
|
(41,616)
|
|
$
|
40,168
|
|
$
|
(24,678)
|
|
|
Add: after tax interest
expense of convertible notes
|
|
—
|
|
|
424
|
|
|
—
|
|
|
Add: effect of
reallocating undistributed earnings of unvested
shareholders
|
|
—
|
|
|
9
|
|
|
—
|
|
|
Adjusted income (loss),
net of tax - diluted
|
$
|
(41,616)
|
|
$
|
40,601
|
|
$
|
(24,678)
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number
of shares outstanding - basic
|
|
9,176
|
|
|
9,160
|
|
|
9,133
|
|
|
Add: if converted
dilutive effect of convertible notes
|
|
—
|
|
|
659
|
|
|
—
|
|
|
Add: dilutive effect of
potential common shares
|
|
—
|
|
|
48
|
|
|
—
|
|
|
Weighted-average number
of shares outstanding - diluted
|
|
9,176
|
|
|
9,867
|
|
|
9,133
|
|
|
Earnings (losses) per
share:
|
|
|
|
|
|
|
|
|
|
|
Total
Diluted
|
$
|
(4.54)
|
|
$
|
4.11
|
|
$
|
(2.70)
|
|
|
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
March 31, 2024
|
|
|
U.S.
Drilling
|
|
International
Drilling
|
|
Drilling
Solutions
|
|
Rig
Technologies
|
|
Other
reconciling
items
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss)
|
|
$
50,529
|
|
$
22,476
|
|
$
26,893
|
|
$
4,209
|
|
$
(40,779)
|
|
$
63,328
|
|
Depreciation and
amortization
|
|
69,874
|
|
80,022
|
|
4,894
|
|
2,592
|
|
303
|
|
157,685
|
|
Adjusted
EBITDA
|
|
$ 120,403
|
|
$
102,498
|
|
$
31,787
|
|
$
6,801
|
|
$
(40,476)
|
|
$
221,013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2023
|
|
|
U.S.
Drilling
|
|
International
Drilling
|
|
Drilling
Solutions
|
|
Rig
Technologies
|
|
Other
reconciling
items
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss)
|
|
$
85,869
|
|
$
1,957
|
|
$
27,138
|
|
$
3,694
|
|
$
(41,683)
|
|
$
76,975
|
|
Depreciation and
amortization
|
|
70,620
|
|
86,651
|
|
4,776
|
|
1,260
|
|
(276)
|
|
163,031
|
|
Adjusted
EBITDA
|
|
$ 156,489
|
|
$
88,608
|
|
$
31,914
|
|
$
4,954
|
|
$
(41,959)
|
|
$
240,006
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2023
|
|
|
U.S.
Drilling
|
|
International
Drilling
|
|
Drilling
Solutions
|
|
Rig
Technologies
|
|
Other
reconciling
items
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss)
|
|
$
51,494
|
|
$
18,642
|
|
$
30,127
|
|
$
5,788
|
|
$
(37,176)
|
|
$
68,875
|
|
Depreciation and
amortization
|
|
66,877
|
|
86,898
|
|
4,375
|
|
3,023
|
|
55
|
|
161,228
|
|
Adjusted
EBITDA
|
|
$ 118,371
|
|
$
105,540
|
|
$
34,502
|
|
$
8,811
|
|
$
(37,121)
|
|
$
230,103
|
|
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
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
(In
thousands)
|
|
2024
|
|
2023
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
Lower 48 - U.S.
Drilling
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss)
|
|
$
39,264
|
|
$
74,071
|
|
$
40,108
|
|
|
Plus: General and
administrative costs
|
|
4,823
|
|
5,056
|
|
4,087
|
|
|
Plus: Research and
engineering
|
|
964
|
|
1,519
|
|
1,276
|
|
|
GAAP Gross
Margin
|
|
45,051
|
|
80,646
|
|
45,471
|
|
|
Plus: Depreciation and
amortization
|
|
59,733
|
|
59,507
|
|
59,545
|
|
|
Adjusted gross
margin
|
|
$
104,784
|
|
$
140,153
|
|
$
105,016
|
|
|
|
|
|
|
|
|
|
|
|
Other - U.S.
Drilling
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss)
|
|
$
11,265
|
|
$
11,798
|
|
$
11,386
|
|
|
Plus: General and
administrative costs
|
|
325
|
|
345
|
|
315
|
|
|
Plus: Research and
engineering
|
|
47
|
|
128
|
|
89
|
|
|
GAAP Gross
Margin
|
|
11,637
|
|
12,271
|
|
11,790
|
|
|
Plus: Depreciation and
amortization
|
|
10,142
|
|
11,111
|
|
7,332
|
|
|
Adjusted gross
margin
|
|
$
21,779
|
|
$
23,382
|
|
$
19,122
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Drilling
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss)
|
|
$
50,529
|
|
$
85,869
|
|
$
51,494
|
|
|
Plus: General and
administrative costs
|
|
5,148
|
|
5,401
|
|
4,402
|
|
|
Plus: Research and
engineering
|
|
1,011
|
|
1,647
|
|
1,365
|
|
|
GAAP Gross
Margin
|
|
56,688
|
|
92,917
|
|
57,261
|
|
|
Plus: Depreciation and
amortization
|
|
69,875
|
|
70,618
|
|
66,877
|
|
|
Adjusted gross
margin
|
|
$
126,563
|
|
$
163,535
|
|
$
124,138
|
|
|
|
|
|
|
|
|
|
|
|
International
Drilling
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss)
|
|
$
22,476
|
|
$
1,957
|
|
$
18,642
|
|
|
Plus: General and
administrative costs
|
|
14,415
|
|
14,336
|
|
14,899
|
|
|
Plus: Research and
engineering
|
|
1,508
|
|
1,785
|
|
1,560
|
|
|
GAAP Gross
Margin
|
|
38,399
|
|
18,078
|
|
35,101
|
|
|
Plus: Depreciation and
amortization
|
|
80,022
|
|
86,651
|
|
86,899
|
|
|
Adjusted gross
margin
|
|
$
118,421
|
|
$
104,729
|
|
$
122,000
|
|
|
|
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
|
|
|
|
March
31,
|
|
December
31,
|
|
|
(In
thousands)
|
|
2024
|
|
2023
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
(9,002)
|
|
$
61,060
|
|
$
3,857
|
|
|
Income tax expense
(benefit)
|
|
16,044
|
|
23,015
|
|
19,244
|
|
|
Income (loss) from
continuing operations before income taxes
|
|
7,042
|
|
84,075
|
|
23,101
|
|
|
Investment (income)
loss
|
|
(10,201)
|
|
(9,866)
|
|
(12,042)
|
|
|
Interest
expense
|
|
50,379
|
|
45,141
|
|
49,938
|
|
|
Other, net
|
|
16,108
|
|
(42,375)
|
|
7,878
|
|
|
Adjusted operating
income (loss) (1)
|
|
63,328
|
|
76,975
|
|
68,875
|
|
|
Depreciation and
amortization
|
|
157,685
|
|
163,031
|
|
161,228
|
|
|
Adjusted EBITDA
(2)
|
|
$
221,013
|
|
$
240,006
|
|
$
230,103
|
|
|
|
(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)
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
(In
thousands)
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
Current debt
|
|
$
-
|
|
$
629,621
|
|
|
Long-term
debt
|
|
2,512,175
|
|
2,511,519
|
|
|
Total Debt
|
|
2,512,175
|
|
3,141,140
|
|
|
Less: Cash and
short-term investments
|
|
425,560
|
|
1,070,178
|
|
|
Net Debt
|
|
$
2,086,615
|
|
$
2,070,962
|
|
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
|
RECONCILIATION OF
ADJUSTED FREE CASH FLOW TO
|
|
NET CASH PROVIDED BY
OPERATING ACTIVITIES
|
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
|
March
31,
|
|
December
31,
|
|
|
(In
thousands)
|
|
2024
|
|
2023
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
107,239
|
|
$
154,050
|
|
$
181,921
|
|
|
Add: Capital
expenditures, net of proceeds from sales of assets
|
|
(99,125)
|
|
(116,752)
|
|
(129,700)
|
|
|
|
|
|
|
|
|
|
|
Adjusted free cash
flow
|
|
$
8,114
|
|
$
37,298
|
|
$
52,221
|
|
|
|
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.
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content:https://www.prnewswire.com/news-releases/nabors-announces-first-quarter-2024-results-302126604.html
SOURCE Nabors Industries Ltd.
