HAMILTON, Bermuda, March 12,
2025 /PRNewswire/ -- Nabors Industries
Ltd. ("Nabors" or the "Company") (NYSE: NBR) today announced
the closing of its acquisition of Parker Wellbore ("Parker"),
advancing Nabors' leadership position in drilling and related,
value-added services.
Parker's solutions portfolio includes Quail Tools ("Quail"), the
leading rental provider of high-performance downhole tubulars in
the U.S. Lower 48 and U.S. Offshore markets. Quail provides similar
rental services internationally in key markets. Parker holds
significant market positions in onshore and offshore tubular
running services, across the U.S., the Middle East, Latin
America, and Asia.
Additionally, Parker's contract drilling services include land and
barge rigs, as well as Operations & Maintenance services.
Anthony Petrello, Chairman,
President and CEO of Nabors, commented on the closing of the
acquisition, "With the successful completion of the Parker
transaction, we are accelerating the growth of our Drilling
Solutions business across several important markets, while
bolstering our global drilling business. We are excited to welcome
a strong and talented organization to the Nabors team. Our
customers will benefit from the best practices that both
organizations employ, and we expect to create incremental value for
them by combining our offerings. Our immediate priority is to
ensure seamless integration, and to capture the synergies we have
projected."
"I would like to thank both teams for their dedication to the
integration planning process, while maintaining outstanding
customer service. The teams have worked exceedingly well together
during this period, giving reason for optimism as we move forward.
I also want to thank Sandy
Esslemont, Parker's President and CEO, for his leadership
and to wish him continued success."
Nabors expects the acquisition to deliver robust strategic
and financial benefits, specifically:
- Strengthening Nabors Drilling Solutions business, expanding
capabilities and market reach
- Immediate accretion to free cash flow
- Enhanced scale and improved leverage metrics
- Estimated recurring synergy realization of $40 million by the end of 2025
Financial Outlook
Nabors expects the Parker business to produce annualized 2025
adjusted EBITDA of approximately $150
million before the realization of expense synergies. Expense
synergies are estimated at $40
million by the end of 2025. Post-closing capital expenses
for 2025 are estimated at $70
million.
Updated Investor Presentation
Nabors has published an updated investor presentation on its
website, highlighting the expected impact of the acquisition of the
Parker Wellbore business. In addition, the presentation provides
more financial detail for the expected contribution of the
Saudi Arabia drilling business,
including the SANAD joint venture with Saudi Aramco. The Company
has also included a framework to assist investors in assessing the
valuation of its operating businesses today and in the future as
SANAD continues to add newbuild rigs. The presentation is available
at:
https://mma.prnewswire.com/media/2639826/PKW_Update_Presentation_FINAL_3_12_25.pdf
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 except as required by
law.
Non-GAAP Disclaimer
This press release may present 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 EBITDA represents net income (loss) before
income (loss) from discontinued operations, net of tax, income tax
expense (benefit), investment income (loss), interest expense,
other, net and depreciation and amortization.
As a non-GAAP measure, Adjusted EBITDA 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 because it believes that this financial measure accurately
reflects the Company's ongoing profitability and
performance. Securities analysts and investors also use this
measure as some of the metrics on which they analyze the Company's
performance. Other companies in this industry may compute Adjusted
EBITDA differently. These differences could be meaningful. We do
not provide a forward-looking reconciliation of our outlook for
Adjusted EBITDA as the amount and significance of items required to
develop meaningful comparable GAAP financial measures cannot be
estimated at this time without unreasonable efforts.
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
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SOURCE Nabors Industries Ltd.
