HAMILTON,
Bermuda, July 23, 2024 /PRNewswire/ -- Nabors
Industries Ltd. ("Nabors" or the "Company") (NYSE: NBR) today
reported second quarter 2024 operating revenues of $735 million, compared to operating revenues of
$734 million in the first quarter.
The net loss attributable to Nabors shareholders for the quarter
was $32 million, compared to a net
loss of $34 million in the first
quarter. This equates to a loss of $4.29 per diluted share, compared to a loss per
diluted share of $4.54 in the first
quarter. Second quarter adjusted EBITDA was $218 million, compared to $221 million in the previous quarter.
Highlights
- Nabors Lower 48 rigs continued
to set the standard for performance on challenging wells. A major
operator in the Delaware Basin
drilled its fastest four-mile lateral, utilizing a Nabors PACE®-X
rig and a package of NDS technology. A second large operator, in
the Eagle Ford, drilled a single-run, four-mile lateral in 14 days,
using a Nabors PACE®-M1000 rig.
- A large operator in the Bakken committed to Nabors' full
automation suite across all of its rigs, including SmartDRILL™ and
SmartSLIDE®. With these installations, NDS will reach record
penetration of its automated directional drilling solution on
Nabors rigs.
- A major operator committed funding to support the next
generation of Nabors' RZR red zone robotics drillfloor automation
module. This includes an installation on one of this client's rigs
in the Permian, and the opportunity to scale up from there.
- Kuwait Oil Company formally awarded multiyear contracts for
three high-specification rigs. The Company plans to deploy existing
in-country rigs for this opportunity.
Anthony G.
Petrello, Nabors Chairman, CEO and President, commented,
"Our second quarter operating results were better than we expected.
This performance was driven by growth and higher average daily
margins in our International Drilling segment, as well as stronger
performance in our Drilling Solutions and Rig Technologies
segments.
"Rig count continued to grow in our International
segment, as we started up previously awarded rigs. With a
substantial number of additional rig awards already in hand, across
the Middle East and Latin America, we have a well-defined
trajectory for international expansion over the next couple of
years. We have scheduled 19 deployments over the next 18 months. We
also have identified additional opportunities that could extend
this growth path.
"Stable pricing supported our results in the
Lower 48 market. Our average rig count decreased somewhat compared
to the prior quarter, essentially in line with our expectation.
Activity declines in the Northeast and South Texas were partially offset by increases
in North Dakota and our Western
region. Results in our Drilling Solutions segment were above our
target, reflecting growth in our International markets as well as
on third party rigs in the U.S."
Segment Results
The U.S. Drilling segment reported second quarter
adjusted EBITDA of $114.0 million,
compared to $120.4 million in the
first quarter. Nabors' second quarter Lower 48 average rig count
totaled 69, versus 72 in the first quarter. Daily adjusted gross
margin in that market averaged $15,600, down 2% as compared to the prior
quarter.
International Drilling adjusted EBITDA totaled
$106.4 million, compared to
$102.5 million in the first quarter.
Average rig count increased to 84 from 81, driven by rig additions
in Algeria and Saudi Arabia. Daily adjusted gross margin for
the second quarter averaged $16,050,
essentially in line with the prior quarter.
Drilling Solutions adjusted EBITDA was
$32.5 million, compared to
$31.8 million in the first quarter.
This increase was essentially driven by revenue growth on
third-party Lower 48 and international rigs of 22% and 18%,
respectively.
In Rig Technologies, adjusted EBITDA increased to
$7.3 million, versus $6.8 million in the first quarter. The increase
was spread across business lines including capital equipment, OEM
repair, and energy transition.
Adjusted Free Cash Flow
Adjusted free cash flow was $57 million in the second quarter. Capital
expenditures totaled $138 million,
which included $56 million supporting
the newbuilds in Saudi Arabia.
This compares to $112 million in the
first quarter, including $35 million
supporting the newbuilds.
William Restrepo,
Nabors CFO, stated, "Our overall results exceeded our outlook. The
emerging international market strength we saw last year is now
manifesting in rig additions for our International drilling
segment. We expect our pipeline of scheduled international
deployments to drive an increase in rig count of at least 20% from
the end of 2023 through the end of 2025. This includes rigs in
Algeria, Argentina, Kuwait, and Saudi
Arabia. On top of these, we have multiple attractive
opportunities. Our approach to these opportunities will remain
disciplined, ensuring they are consistent with our free cash flow
commitments over the next few years.
"In the U.S., our Lower 48 results were supported
by continued high utilization of high-spec rigs and strong pricing.
As we look ahead, we see opportunities to add rigs and offset some
of the attrition in the natural gas focused markets. We expect our
rig count to increase moderately for the balance of the year.
"We achieved significant milestones to solidify
our capital structure. During the second quarter, we increased the
amount on our revolving credit facility and extended it until 2029.
More recently, we placed $550 million
of notes due in 2031. With these proceeds, we intend to retire the
similar notes due in 2026. Once completed, our next maturity comes
in mid-2027.
"The strong results drove our cash generation.
Adjusted free cash flow for the first half of the year reached
$65 million. This performance
supports our previous full-year 2024 adjusted free cash flow target
of $100-$200
million."
Outlook
Nabors expects the following metrics for the
third quarter of 2024:
U.S.
Drilling
- Lower 48 average rig count of approximately 70 rigs
- Lower 48 daily adjusted gross margin of $15,100-$15,200
- Alaska and Gulf of Mexico combined adjusted EBITDA of
approximately $20 million
International
- Average rig count up by approximately one rig versus the second
quarter average
- Daily adjusted gross margin of $16,200-$16,300
Drilling Solutions
- Adjusted EBITDA up sequentially by approximately 6%
Rig Technologies
- Adjusted EBITDA up sequentially by approximately $1.5 million
Capital Expenditures
- Capital expenditures of $190-$200 million,
with $80-$85
million for the newbuilds in Saudi
Arabia
- Full-year capital expenditures of approximately $590 million, including funding for the recent
rig awards
Adjusted Free Cash Flow
- Full-year adjusted free cash flow of $100-$200
million
Mr. Petrello concluded, "These results, and our
outlook, illustrate the success of our strategy. We remain
committed to deploying the global drilling industry's
leading technology. The growing adoption of these
innovations by our client base across the globe gives us confidence
that we are on the right track. And as I've stated before, we
expect the extraordinary strength of the international markets to
continue driving our growth over the coming years."
About Nabors Industries
Nabors Industries (NYSE: NBR) is a leading
provider of advanced technology for the energy industry. With
presence in more than 20 countries, Nabors has established a global
network of people, technology and equipment to deploy solutions
that deliver safe, efficient and responsible energy production. By
leveraging its core competencies, particularly in drilling,
engineering, automation, data science and manufacturing, Nabors
aims to innovate the future of energy and enable the transition to
a lower-carbon world. Learn more about Nabors and its energy
technology leadership: www.nabors.com.
Forward-looking Statements
The information included in this press release
includes forward-looking statements within the meaning of the
Securities Act of 1933 and the Securities Exchange Act of 1934.
Such forward-looking statements are subject to a number of risks
and uncertainties, as disclosed by Nabors from time to time in its
filings with the Securities and Exchange Commission. As a result of
these factors, Nabors' actual results may differ materially from
those indicated or implied by such forward-looking
statements. The forward-looking statements contained in this
press release reflect management's estimates and beliefs as of the
date of this press release. Nabors does not undertake to
update these forward-looking statements.
Non-GAAP Disclaimer
This press release presents certain "non-GAAP"
financial measures. The components of these non-GAAP measures
are computed by using amounts that are determined in accordance
with accounting principles generally accepted in 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
|
|
Six Months
Ended
|
|
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
(In thousands,
except per share amounts)
|
|
2024
|
|
2023
|
|
2024
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues and other
income:
|
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues
|
|
$
734,798
|
|
$
767,067
|
|
$
733,704
|
|
$
1,468,502
|
|
$
1,546,206
|
|
Investment income
(loss)
|
|
8,181
|
|
11,743
|
|
10,201
|
|
18,382
|
|
21,609
|
|
Total revenues and
other income
|
|
742,979
|
|
778,810
|
|
743,905
|
|
1,486,884
|
|
1,567,815
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and other
deductions:
|
|
|
|
|
|
|
|
|
|
|
|
Direct costs
|
|
440,225
|
|
455,531
|
|
437,077
|
|
877,302
|
|
917,860
|
|
General and
administrative expenses
|
|
62,154
|
|
63,232
|
|
61,751
|
|
123,905
|
|
124,962
|
|
Research and
engineering
|
|
14,362
|
|
13,281
|
|
13,863
|
|
28,225
|
|
28,355
|
|
Depreciation and
amortization
|
|
160,141
|
|
159,698
|
|
157,685
|
|
317,826
|
|
322,729
|
|
Interest
expense
|
|
51,493
|
|
46,164
|
|
50,379
|
|
101,872
|
|
91,305
|
|
Other, net
|
|
12,079
|
|
(1,775)
|
|
16,108
|
|
28,187
|
|
(44,150)
|
|
Total costs and other
deductions
|
|
740,454
|
|
736,131
|
|
736,863
|
|
1,477,317
|
|
1,441,061
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
|
2,525
|
|
42,679
|
|
7,042
|
|
9,567
|
|
126,754
|
|
Income tax expense
(benefit)
|
|
15,554
|
|
26,448
|
|
16,044
|
|
31,598
|
|
49,463
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
(13,029)
|
|
16,231
|
|
(9,002)
|
|
(22,031)
|
|
77,291
|
|
Less: Net (income) loss
attributable to noncontrolling interest
|
|
(19,226)
|
|
(11,620)
|
|
(25,331)
|
|
(44,557)
|
|
(23,456)
|
|
Net income (loss)
attributable to Nabors
|
|
$
(32,255)
|
|
$
4,611
|
|
$
(34,333)
|
|
$
(66,588)
|
|
$
53,835
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (losses) per
share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
(4.29)
|
|
$
(0.31)
|
|
$
(4.54)
|
|
$
(8.83)
|
|
$
4.05
|
|
Diluted
|
|
$
(4.29)
|
|
$
(0.31)
|
|
$
(4.54)
|
|
$
(8.83)
|
|
$
3.79
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number
of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
9,207
|
|
9,195
|
|
9,176
|
|
9,191
|
|
9,178
|
|
Diluted
|
|
9,207
|
|
9,195
|
|
9,176
|
|
9,191
|
|
10,141
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
218,057
|
|
$
235,023
|
|
$
221,013
|
|
$
439,070
|
|
$
475,029
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss)
|
|
$
57,916
|
|
$
75,325
|
|
$
63,328
|
|
$
121,244
|
|
$
152,300
|
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
(In
thousands)
|
|
2024
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and short-term
investments
|
|
$
473,608
|
|
$
425,560
|
|
$
1,070,178
|
|
Accounts receivable,
net
|
|
368,550
|
|
416,873
|
|
347,837
|
|
Other current
assets
|
|
235,632
|
|
231,926
|
|
227,663
|
|
Total current
assets
|
|
1,077,790
|
|
1,074,359
|
|
1,645,678
|
|
Property, plant and
equipment, net
|
|
2,813,148
|
|
2,841,294
|
|
2,898,728
|
|
Other long-term
assets
|
|
724,755
|
|
729,319
|
|
733,559
|
|
Total assets
|
|
$
4,615,693
|
|
$
4,644,972
|
|
$
5,277,965
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Current debt
|
|
$
-
|
|
$
-
|
|
$
629,621
|
|
Trade accounts
payable
|
|
331,468
|
|
319,436
|
|
294,442
|
|
Other current
liabilities
|
|
259,454
|
|
282,982
|
|
289,918
|
|
Total current
liabilities
|
|
590,922
|
|
602,418
|
|
1,213,981
|
|
Long-term
debt
|
|
2,514,169
|
|
2,512,175
|
|
2,511,519
|
|
Other long-term
liabilities
|
|
247,587
|
|
256,956
|
|
271,380
|
|
Total liabilities
|
|
3,352,678
|
|
3,371,549
|
|
3,996,880
|
|
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interest in subsidiary
|
|
761,415
|
|
750,600
|
|
739,075
|
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
250,371
|
|
286,338
|
|
326,614
|
|
Noncontrolling
interest
|
|
251,229
|
|
236,485
|
|
215,396
|
|
Total equity
|
|
501,600
|
|
522,823
|
|
542,010
|
|
Total liabilities and
equity
|
|
$
4,615,693
|
|
$
4,644,972
|
|
$
5,277,965
|
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
|
SEGMENT
REPORTING
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following tables
set forth certain information with respect to our reportable
segments and rig activity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
(In thousands,
except rig activity)
|
|
2024
|
|
2023
|
|
2024
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Drilling
|
|
$
259,723
|
|
$
314,830
|
|
$
271,989
|
|
$
531,712
|
|
$
665,482
|
|
International
Drilling
|
|
356,733
|
|
337,650
|
|
349,359
|
|
706,092
|
|
657,698
|
|
Drilling
Solutions
|
|
82,961
|
|
76,855
|
|
75,574
|
|
158,535
|
|
151,898
|
|
Rig Technologies
(1)
|
|
49,546
|
|
63,565
|
|
50,156
|
|
99,702
|
|
122,044
|
|
Other reconciling items
(2)
|
|
(14,165)
|
|
(25,833)
|
|
(13,374)
|
|
(27,539)
|
|
(50,916)
|
|
Total operating
revenues
|
|
$
734,798
|
|
$
767,067
|
|
$
733,704
|
|
$
1,468,502
|
|
$
1,546,206
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA:
(3)
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Drilling
|
|
$
114,020
|
|
$
141,446
|
|
$
120,403
|
|
$
234,423
|
|
$
297,935
|
|
International
Drilling
|
|
106,371
|
|
98,331
|
|
102,498
|
|
208,869
|
|
186,939
|
|
Drilling
Solutions
|
|
32,468
|
|
32,756
|
|
31,787
|
|
64,255
|
|
64,670
|
|
Rig Technologies
(1)
|
|
7,330
|
|
6,408
|
|
6,801
|
|
14,131
|
|
11,362
|
|
Other reconciling items
(4)
|
|
(42,132)
|
|
(43,918)
|
|
(40,476)
|
|
(82,608)
|
|
(85,877)
|
|
Total adjusted
EBITDA
|
|
$
218,057
|
|
$
235,023
|
|
$
221,013
|
|
$
439,070
|
|
$
475,029
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss): (5)
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Drilling
|
|
$
45,085
|
|
$
75,408
|
|
$
50,529
|
|
$
95,614
|
|
$
161,277
|
|
International
Drilling
|
|
23,672
|
|
10,407
|
|
22,476
|
|
46,148
|
|
12,364
|
|
Drilling
Solutions
|
|
27,319
|
|
28,351
|
|
26,893
|
|
54,212
|
|
55,489
|
|
Rig Technologies
(1)
|
|
4,860
|
|
5,052
|
|
4,209
|
|
9,069
|
|
8,746
|
|
Other reconciling items
(4)
|
|
(43,020)
|
|
(43,893)
|
|
(40,779)
|
|
(83,799)
|
|
(85,576)
|
|
Total adjusted
operating income (loss)
|
|
$
57,916
|
|
$
75,325
|
|
$
63,328
|
|
$
121,244
|
|
$
152,300
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rig
activity:
|
|
|
|
|
|
|
|
|
|
|
|
Average Rigs Working:
(7)
|
|
|
|
|
|
|
|
|
|
|
|
Lower 48
|
|
68.7
|
|
81.6
|
|
71.9
|
|
70.3
|
|
87.4
|
|
Other US
|
|
6.3
|
|
7.0
|
|
6.8
|
|
6.5
|
|
7.0
|
|
U.S.
Drilling
|
|
75.0
|
|
88.6
|
|
78.7
|
|
76.8
|
|
94.4
|
|
International
Drilling
|
|
84.4
|
|
77.1
|
|
81.0
|
|
82.7
|
|
76.8
|
|
Total average rigs
working
|
|
159.4
|
|
165.7
|
|
159.7
|
|
159.5
|
|
171.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Daily Rig Revenue:
(6),(8)
|
|
|
|
|
|
|
|
|
|
|
|
Lower 48
|
|
$
35,334
|
|
$
36,751
|
|
$
35,468
|
|
$
35,402
|
|
$
36,593
|
|
Other US
|
|
68,008
|
|
65,860
|
|
64,402
|
|
66,135
|
|
68,263
|
|
U.S. Drilling
(10)
|
|
38,076
|
|
39,049
|
|
37,968
|
|
38,020
|
|
38,940
|
|
International
Drilling
|
|
46,469
|
|
48,106
|
|
47,384
|
|
46,917
|
|
47,319
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Daily Adjusted Gross
Margin: (6),(9)
|
|
|
|
|
|
|
|
|
|
|
|
Lower 48
|
|
$
15,598
|
|
$
16,890
|
|
$
16,011
|
|
$
15,809
|
|
$
16,784
|
|
Other US
|
|
38,781
|
|
35,932
|
|
35,184
|
|
36,912
|
|
36,520
|
|
U.S. Drilling
(10)
|
|
17,544
|
|
18,394
|
|
17,667
|
|
17,607
|
|
18,246
|
|
International
Drilling
|
|
16,050
|
|
16,276
|
|
16,061
|
|
16,056
|
|
15,754
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Includes our oilfield
equipment manufacturing activities.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Represents the
elimination of inter-segment transactions related to our Rig
Technologies operating segment.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Adjusted EBITDA
represents net income (loss) before income tax expense (benefit),
investment income (loss), interest expense, other, net
and depreciation and
amortization. Adjusted EBITDA is a non-GAAP financial measure and
should not be used in isolation or as a substitute
for the amounts
reported in accordance with GAAP. In addition, adjusted EBITDA
excludes certain cash expenses that the Company is
obligated to make.
However, management evaluates the performance of its operating
segments and the consolidated Company based on
several criteria,
including adjusted EBITDA and adjusted operating income (loss),
because it believes that these financial measures
accurately
reflect the Company's
ongoing profitability and performance. Securities analysts
and investors use this measure as one of the metrics on
which they analyze the
Company's performance. Other companies in this industry may
compute these measures differently. A
reconciliation
of this non-GAAP
measure to net income (loss), which is the most closely comparable
GAAP measure, is provided in the table set forth
immediately following
the heading "Reconciliation of Non-GAAP Financial Measures to Net
Income (Loss)".
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
Represents the
elimination of inter-segment transactions and unallocated corporate
expenses.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5)
|
Adjusted operating
income (loss) represents net income (loss) before income tax
expense (benefit), investment income (loss), interest
expense
and other, net.
Adjusted operating income (loss) is a non-GAAP financial measure
and should not be used in isolation or as a substitute for
the
amounts reported in
accordance with GAAP. In addition, adjusted operating income (loss)
excludes certain cash expenses that the Company is
obligated to make.
However, management evaluates the performance of its operating
segments and the consolidated Company based on
several criteria,
including adjusted EBITDA and adjusted operating income (loss),
because it believes that these financial measures
accurately
reflect the Company's
ongoing profitability and performance. Securities analysts
and investors use this measure as one of the metrics on
which
they analyze the
Company's performance. Other companies in this industry may
compute these measures differently. A reconciliation of
this
non-GAAP measure to net
income (loss), which is the most closely comparable GAAP measure,
is provided in the table set forth immediately
following the heading
"Reconciliation of Non-GAAP Financial Measures to Net Income
(Loss)".
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6)
|
Rig revenue days
represents the number of days the Company's rigs are contracted and
performing under a contract during the period.
These
would typically include
days in which operating, standby and move revenue is
earned.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7)
|
Average rigs working
represents a measure of the average number of rigs operating during
a given period. For example, one rig operating 45
days during a quarter
represents approximately 0.5 average rigs working for the
quarter. On an annual period, one rig operating 182.5
days
represents
approximately 0.5 average rigs working for the year. Average
rigs working can also be calculated as rig revenue days during
the
period divided by the
number of calendar days in the period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(8)
|
Daily rig revenue
represents operating revenue, divided by the total number of
revenue days during the quarter.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(9)
|
Daily adjusted gross
margin represents operating revenue less direct costs, divided by
the total number of rig revenue days during the
quarter.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(10)
|
The 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
|
|
Six Months
Ended
|
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
|
(in thousands,
except per share amounts)
|
2024
|
|
2023
|
|
2024
|
|
2024
|
|
2023
|
|
|
|
|
BASIC
EPS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
(numerator):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss), net of
tax
|
$
|
(13,029)
|
|
$
|
16,231
|
|
$
|
(9,002)
|
|
$
|
(22,031)
|
|
$
|
77,291
|
|
|
Less: net (income) loss
attributable to noncontrolling interest
|
|
(19,226)
|
|
|
(11,620)
|
|
|
(25,331)
|
|
|
(44,557)
|
|
|
(23,456)
|
|
|
Less: distributed and
undistributed earnings allocated to unvested
shareholders
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,869)
|
|
|
Less: accrued
distribution on redeemable noncontrolling interest in
subsidiary
|
|
(7,283)
|
|
|
(7,436)
|
|
|
(7,283)
|
|
|
(14,566)
|
|
|
(14,790)
|
|
|
Numerator for basic
earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income (loss),
net of tax - basic
|
$
|
(39,538)
|
|
$
|
(2,825)
|
|
$
|
(41,616)
|
|
$
|
(81,154)
|
|
$
|
37,176
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number
of shares outstanding - basic
|
|
9,207
|
|
|
9,195
|
|
|
9,176
|
|
|
9,191
|
|
|
9,178
|
|
|
Earnings (losses) per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Basic
|
$
|
(4.29)
|
|
$
|
(0.31)
|
|
$
|
(4.54)
|
|
$
|
(8.83)
|
|
$
|
4.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED
EPS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income (loss)
from continuing operations, net of tax - basic
|
$
|
(39,538)
|
|
$
|
(2,825)
|
|
$
|
(41,616)
|
|
$
|
(81,154)
|
|
$
|
37,176
|
|
|
Add: after tax interest
expense of convertible notes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,272
|
|
|
Add: effect of
reallocating undistributed earnings of unvested
shareholders
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
Adjusted income (loss),
net of tax - diluted
|
$
|
(39,538)
|
|
$
|
(2,825)
|
|
$
|
(41,616)
|
|
$
|
(81,154)
|
|
$
|
38,458
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number
of shares outstanding - basic
|
|
9,207
|
|
|
9,195
|
|
|
9,176
|
|
|
9,191
|
|
|
9,178
|
|
|
Add: if converted
dilutive effect of convertible notes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
918
|
|
|
Add: dilutive effect of
potential common shares
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
45
|
|
|
Weighted-average number
of shares outstanding - diluted
|
|
9,207
|
|
|
9,195
|
|
|
9,176
|
|
|
9,191
|
|
|
10,141
|
|
|
Earnings (losses) per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Diluted
|
$
|
(4.29)
|
|
$
|
(0.31)
|
|
$
|
(4.54)
|
|
$
|
(8.83)
|
|
$
|
3.79
|
|
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
|
NON-GAAP FINANCIAL
MEASURES
|
|
RECONCILIATION OF
ADJUSTED EBITDA BY SEGMENT TO ADJUSTED OPERATING INCOME (LOSS) BY
SEGMENT
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2024
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2023
|
|
|
|
U.S.
Drilling
|
|
International
Drilling
|
|
Drilling
Solutions
|
|
Rig
Technologies
|
|
Other
reconciling
items
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss)
|
|
$
75,408
|
|
$
10,407
|
|
$
28,351
|
|
$
5,052
|
|
$ (43,893)
|
|
$ 75,325
|
|
Depreciation and
amortization
|
|
66,038
|
|
87,924
|
|
4,405
|
|
1,356
|
|
(25)
|
|
159,698
|
|
Adjusted
EBITDA
|
|
$141,446
|
|
$
98,331
|
|
$
32,756
|
|
$
6,408
|
|
$ (43,918)
|
|
$
235,023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2024
|
|
|
|
U.S.
Drilling
|
|
International
Drilling
|
|
Drilling
Solutions
|
|
Rig
Technologies
|
|
Other
reconciling
items
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss)
|
|
$
95,614
|
|
$
46,148
|
|
$
54,212
|
|
$
9,069
|
|
$ (83,799)
|
|
$
121,244
|
|
Depreciation and
amortization
|
|
138,809
|
|
162,721
|
|
10,043
|
|
5,062
|
|
1,191
|
|
317,826
|
|
Adjusted
EBITDA
|
|
$234,423
|
|
$
208,869
|
|
$
64,255
|
|
$
14,131
|
|
$ (82,608)
|
|
$
439,070
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2023
|
|
|
|
U.S.
Drilling
|
|
International
Drilling
|
|
Drilling
Solutions
|
|
Rig
Technologies
|
|
Other
reconciling
items
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss)
|
|
$161,277
|
|
$
12,364
|
|
$
55,489
|
|
$
8,746
|
|
$ (85,576)
|
|
$
152,300
|
|
Depreciation and
amortization
|
|
136,658
|
|
174,575
|
|
9,181
|
|
2,616
|
|
(301)
|
|
322,729
|
|
Adjusted
EBITDA
|
|
$297,935
|
|
$
186,939
|
|
$
64,670
|
|
$
11,362
|
|
$ (85,877)
|
|
$
475,029
|
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
|
NON-GAAP FINANCIAL
MEASURES
|
|
RECONCILIATION OF
ADJUSTED GROSS MARGIN BY SEGMENT TO ADJUSTED OPERATING INCOME
(LOSS) BY SEGMENT
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
(In
thousands)
|
|
2024
|
|
2023
|
|
2024
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lower 48 - U.S.
Drilling
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss)
|
|
$
32,841
|
|
$
60,496
|
|
$
39,264
|
|
$
72,105
|
|
$
134,567
|
|
Plus: General and
administrative costs
|
|
4,390
|
|
5,209
|
|
4,823
|
|
9,213
|
|
10,264
|
|
Plus: Research and
engineering
|
|
909
|
|
1,189
|
|
964
|
|
1,873
|
|
2,708
|
|
GAAP Gross
Margin
|
|
38,140
|
|
66,894
|
|
45,051
|
|
83,191
|
|
147,539
|
|
Plus: Depreciation and
amortization
|
|
59,332
|
|
58,533
|
|
59,733
|
|
119,065
|
|
118,041
|
|
Adjusted gross
margin
|
|
$
97,472
|
|
$
125,427
|
|
$
104,784
|
|
$
202,256
|
|
$
265,580
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other - U.S.
Drilling
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss)
|
|
$
12,244
|
|
$
14,912
|
|
$
11,265
|
|
$
23,509
|
|
$
26,710
|
|
Plus: General and
administrative costs
|
|
306
|
|
323
|
|
325
|
|
631
|
|
668
|
|
Plus: Research and
engineering
|
|
45
|
|
132
|
|
47
|
|
92
|
|
259
|
|
GAAP Gross
Margin
|
|
12,595
|
|
15,367
|
|
11,637
|
|
24,232
|
|
27,637
|
|
Plus: Depreciation and
amortization
|
|
9,602
|
|
7,504
|
|
10,142
|
|
19,744
|
|
18,616
|
|
Adjusted gross
margin
|
|
$
22,197
|
|
$
22,871
|
|
$
21,779
|
|
$
43,976
|
|
$
46,253
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Drilling
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss)
|
|
$
45,085
|
|
$
75,408
|
|
$
50,529
|
|
$
95,614
|
|
$
161,277
|
|
Plus: General and
administrative costs
|
|
4,696
|
|
5,532
|
|
5,148
|
|
9,844
|
|
10,932
|
|
Plus: Research and
engineering
|
|
954
|
|
1,321
|
|
1,011
|
|
1,965
|
|
2,967
|
|
GAAP Gross
Margin
|
|
50,735
|
|
82,261
|
|
56,688
|
|
107,423
|
|
175,176
|
|
Plus: Depreciation and
amortization
|
|
68,934
|
|
66,037
|
|
69,875
|
|
138,809
|
|
136,657
|
|
Adjusted gross
margin
|
|
$
119,669
|
|
$
148,298
|
|
$
126,563
|
|
$
246,232
|
|
$
311,833
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
Drilling
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss)
|
|
$
23,672
|
|
$
10,407
|
|
$
22,476
|
|
$
46,148
|
|
$
12,364
|
|
Plus: General and
administrative costs
|
|
15,434
|
|
14,089
|
|
14,415
|
|
29,849
|
|
28,424
|
|
Plus: Research and
engineering
|
|
1,404
|
|
1,821
|
|
1,508
|
|
2,912
|
|
3,606
|
|
GAAP Gross
Margin
|
|
40,510
|
|
26,317
|
|
38,399
|
|
78,909
|
|
44,394
|
|
Plus: Depreciation and
amortization
|
|
82,700
|
|
87,924
|
|
80,022
|
|
162,722
|
|
174,576
|
|
Adjusted gross
margin
|
|
$
123,210
|
|
$
114,241
|
|
$
118,421
|
|
$
241,631
|
|
$
218,970
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted gross margin
by segment represents adjusted operating income (loss) plus general
and administrative costs, research and engineering costs
and
depreciation and
amortization
|
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
|
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES TO NET INCOME (LOSS)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
(In
thousands)
|
|
2024
|
|
2023
|
|
2024
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
(13,029)
|
|
$
16,231
|
|
$
(9,002)
|
|
$
(22,031)
|
|
$
77,291
|
|
Income tax expense
(benefit)
|
|
15,554
|
|
26,448
|
|
16,044
|
|
31,598
|
|
49,463
|
|
Income (loss) from
continuing operations before income taxes
|
|
2,525
|
|
42,679
|
|
7,042
|
|
9,567
|
|
126,754
|
|
Investment (income)
loss
|
|
(8,181)
|
|
(11,743)
|
|
(10,201)
|
|
(18,382)
|
|
(21,609)
|
|
Interest
expense
|
|
51,493
|
|
46,164
|
|
50,379
|
|
101,872
|
|
91,305
|
|
Other, net
|
|
12,079
|
|
(1,775)
|
|
16,108
|
|
28,187
|
|
(44,150)
|
|
Adjusted operating
income (loss) (1)
|
|
57,916
|
|
75,325
|
|
63,328
|
|
121,244
|
|
152,300
|
|
Depreciation and
amortization
|
|
160,141
|
|
159,698
|
|
157,685
|
|
317,826
|
|
322,729
|
|
Adjusted EBITDA
(2)
|
|
$
218,057
|
|
$
235,023
|
|
$
221,013
|
|
$
439,070
|
|
$
475,029
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Adjusted operating
income (loss) represents net income (loss) before income tax
expense (benefit), investment income (loss), interest expense, and
other, net. Adjusted
operating income (loss)
is a non-GAAP financial measure and should not be used in isolation
or as a substitute for the amounts reported in accordance with
GAAP. In addition,
adjusted operating
income (loss) excludes certain cash expenses that the Company is
obligated to make. However, management evaluates the performance of
its operating
segments and the
consolidated Company based on several criteria, including adjusted
EBITDA and adjusted operating income (loss), because it believes
that these financial
measures accurately
reflect the Company's ongoing profitability and performance.
Securities analysts and investors use this measure as one of the
metrics on which they
analyze the Company's
performance. Other companies in this industry may compute
these measures differently.
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Adjusted EBITDA
represents net income (loss) before income tax expense (benefit),
investment income (loss), interest expense, other, net and
depreciation and amortization.
Adjusted EBITDA is a
non-GAAP financial measure and should not be used in isolation or
as a substitute for the amounts reported in accordance with GAAP.
In addition, adjusted
EBITDA excludes certain
cash expenses that the Company is obligated to make. However,
management evaluates the performance of its operating segments and
the consolidated
Company based on
several criteria, including adjusted EBITDA and adjusted operating
income (loss), because it believes that these financial measures
accurately reflect the
Company's ongoing
profitability and performance. Securities analysts and
investors use this measure as one of the metrics on which they
analyze the Company's performance.
Other companies in this
industry may compute these measures
differently.
|
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
|
RECONCILIATION OF
NET DEBT TO TOTAL DEBT
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
(In
thousands)
|
|
2024
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
Current debt
|
|
$
-
|
|
$
-
|
|
$
629,621
|
|
Long-term
debt
|
|
2,514,169
|
|
2,512,175
|
|
2,511,519
|
|
Total Debt
|
|
2,514,169
|
|
2,512,175
|
|
3,141,140
|
|
Less: Cash and
short-term investments
|
|
473,608
|
|
425,560
|
|
1,070,178
|
|
Net Debt
|
|
$
2,040,561
|
|
$
2,086,615
|
|
$
2,070,962
|
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
|
RECONCILIATION OF
ADJUSTED FREE CASH FLOW TO
|
|
NET CASH PROVIDED BY
OPERATING ACTIVITIES
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
(In
thousands)
|
|
2024
|
|
2024
|
|
2024
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
181,659
|
|
$
107,239
|
|
$
288,898
|
|
Add: Capital
expenditures, net of proceeds from sales of assets
|
|
(125,010)
|
|
(99,125)
|
|
(224,135)
|
|
|
|
|
|
|
|
|
Adjusted free cash
flow
|
|
$
56,649
|
|
$
8,114
|
|
$
64,763
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted free cash flow
represents net cash provided by operating activities less cash used
for capital expenditures, net of proceeds from sales of
assets.
Management believes
that adjusted free cash flow is an important liquidity measure for
the company and that it is useful to investors and management
as
a measure of the
company's ability to generate cash flow, after reinvesting in the
company for future growth, that could be available for paying down
debt
or other financing cash
flows, such as dividends to shareholders. Adjusted free cash
flow does not represent the residual cash flow available
for
discretionary
expenditures. Adjusted free cash flow is a non-GAAP financial
measure that should be considered in addition to, not as a
substitute for or
superior to, cash flow
from operations reported in accordance with GAAP.
|
View original
content:https://www.prnewswire.com/news-releases/nabors-announces-second-quarter-2024-results-302204506.html
SOURCE Nabors Industries Ltd.