展示品 99.1
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ニュースリリース |
ネイバーズは2024年第3四半期の業績を発表
ハミルトン、バミューダ、 2024年10月22日 /PRNewswire/ -ナボーズ・インダストリーズ・リミテッド（「ナボーズ」または「当社」）(nyse: NBR) は、2024年第3四半期の営業収入が73200万ドルと発表しました。これは前四半期の営業収入73500万ドルと比較しています。当期のナボーズ株主に帰属する純損失は5600万ドルで、前四半期の純損失3200万ドルと比較されます。これは希薄化後1株あたり6.86ドルの損失に相当し、前四半期の希薄化後1株あたり4.29ドルの損失と比較されます。第3四半期には、主に2026年のノートの償還プレミアムと投資に対する市場調整を反映した純請求額が約2500万ドル含まれていました。第3四半期の調整後EBITDAは22200万ドルで、前四半期の21800万ドルと比較されます。
ハイライト
| o | 先週、ナボースはParkere Wellboreを取得するための契約締結を発表しました。 Parkerの事業には、米国チューブレンタルの主要フランチャイズであるQuail Tools、国際チューブレンタル、ケーシング走行を含むウェル建設サービス、および掘削リグが含まれています。 Parkerは今年、10000万8000万ドルのEBITDAを生み出すと予想しています。ナボースは、クロージング後12か月以内に、年率3500万ドルのシナジー効果を特定しました。ナボースは、株価のコラーに応じてNaborsの発行済み株式480万株と引き換えに、Parkereの全普通株式を取得します。ナボースは、約1億ドルの純負債も引き継ぎます。 |
| o | ロワー48リグは再び注目すべき実績を達成しました。デラウェア盆地の主要なオペレーターは、4マイルのラテラルを持つ3つのウェルをそれぞれ掘削し、Nabors PACEを利用しました®-XリグにはCanrigSigmaトップドライブが装備されています。Sigmaの定格トルクは業界最高であり、これらのウェルで実行される大口径ドリルパイプに最適です。このリグにはNDSテクノロジーパッケージも採用されました。® Sigmaの定格トルクは業界最高であり、これらのウェルで実行される大口径ドリルパイプに最適です。このリグにはNDSテクノロジーパッケージも採用されました。 |
| o | イーグルフォードの大手オペレーターは、基盤で最も長いウェルを実行し、4マイル以上の横長を取り入れました。その横長は、ロータリーステアリングシステムを使用せずに単一の実行で掘削されました。リグは、ネイバーズ ペースでありました。®-M1000を利用して、直径が大きいドリルパイプを使用しています。 |
| o | バッケンの大手オペレーターが、ナボーズのPACEを利用して、1回の実行で4マイルの横断を12日未満で完了しました。®-Xリグ。このウェルはオペレーターの初の4マイルの横断であり、オペレーターはそれがバッケンで最速だと考えています。リグはNDSスマートテクノロジーの包括的なパッケージで装備されていました。 |
アンソニーG.ペトレロ、ネイバーズの会長、CEO、および社長は、「私たちはパーカーウェルボアの買収を発表して前進することに興奮しています。当社のポートフォリオは高度に補完的です。パーカーの最近の実績は自己証明しています。既にその分野のリーダーであるクエイルツールは、運用業者がウェルボアレータルの長さを延ばす際に重要な役割を果たしています。この取引により、当社の規模が拡大し、増加成長が提供され、当社のレバレッジ指標が改善されます。
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| ニュースリリース |
「第三四半期の業績は、全体的な期待に適合しました。より高い日々の平均マージンと改善されたミックスにより、国際ドリリング部門で成長が実現されました。国際的な成長は、ドリリングソリューション部門のパフォーマンス向上にもつながりました。」
“国際掘削部門の毎日の利益率は、第3四半期に17,000ドルを超えました。このマイルストーンは、私たちが予想よりも早く達成しました。この結果は、国際部門の収益力を示しています。四半期中に、以前に受賞したリグの立ち上げも行いました。2026年初頭までに中東とラテンアメリカに13台のリグを展開する予定で、国際的な成長に向けた道筋があります。それらの計画された立ち上げに加えて、機会はまた大きいです。
「アメリカ合衆国48州市場において、私たちの先進的価格設定は安定しており、ほぼ予想通りです。<br>平均リグ数は前の四半期をわずかに下回っています。ガス指向の掘削の増加やイーアンドピーの整理に伴う減少からの回復がまだ見られていませんが、2025年にはアメリカ合衆国48州における掘削活動が改善することを期待しています。」
セグメント 結果
国際 掘削調整後EBITDAは第2四半期の1億1600万ドルに対して、11600万ドルとなりました。リグ数の平均がアルジェリアとサウジアラビアでのリグ追加により、84から85に増加しました。第3四半期の1日当たりの調整後粗利率は、前の四半期と比較して1,000ドル以上増加した、平均17,085ドルでした。
米国掘削部門は、第3四半期の調整後EBITDAは1億8700万ドルで、前四半期の1億1400万ドルと比較しています。ネイバースの第3四半期のロウアー48の平均リグ数は前四半期の69基に対して68基でした。ロウアー48の1日当たりの調整後粗利率は1万5,051ドルであり、前四半期の1万5,598ドルと比較しています。
ドリリングソリューションの調整後EBITDAは第2四半期の3250万ドルに比べて3430万ドルに増加しました。この成長は、国際市場での売上高が約8%増加し、ナボーズの米国リグでのパフォーマンスソフトウェアの普及率が上昇したことによるものです。
Rig Technologiesの調整後のEBITDAは610万ドルで、前四半期の730万ドルと比較して減少しました。この減少は、主に資本設備、スペアパーツ、エネルギー転換など、複数の ビジネスラインに広がっています。
調整後 フリーキャッシュフロー
第3四半期の調整後フリーキャッシュフローは1,800万ドルで、前の四半期の5,700万ドルと比較しています。資本支出は1,1800万ドルで、そのうち3,700万ドルはサウジアラビアの新造船の支援に充てられました。これは、前の四半期の1,3800万ドル、そのうち5,600万ドルが新造船の支援に充てられたものと比較されます。第3四半期には、昨年末に発行されたノートの追加の2か月半の利払いが含まれており、利払いは1,170万ドルに相当しました。ノートの最初のクーポン支払いは、ノートの発行から8か月後に発生しました。四半期の合計利払いは8,200万ドルで、前の四半期の3,100万ドルと比較されます。
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| ニュースリリース |
ナボースのCFOであるWilliam Restrepo氏は、「先週、Parker Wellboreを取得する契約を締結しました。この取引は、私たちの新規買戦略とよく合致しています。キャピタル支出を抑えたNDSビジネスを拡大し、国際展開を推進し、ナボースの負債を減らす助けとなります。さらに、Parkerは今年、魅力的な成長を伴う18000万ドルの意義あるEBITDAを獲得する予定です。最後に、Parkerは低レベルの負債であり、プラスのキャッシュフローを生み出しています。これは、目標とする年間シナジー効果3500万ドルを含めたものです。私たちは、Parkerをナボースプラットフォームに加えることに興奮しています。
“Nabors’ third quarter results met our outlook. Daily adjusted gross margin in our International Drilling segment expanded by more than $1,000. We reached the $17,000 daily margin target a quarter ahead of schedule, driven by exceptional performances in Saudi Arabia and Latin America, which both increased daily margins, by $1,200 and $1,300 respectively. We have three rigs scheduled to deploy in the fourth quarter, each with attractive economics. These deployments will be somewhat offset by the 12-month suspension of three lower-margin rigs in the Kingdom.
“Strength in the international markets also led to sequential growth in our Drilling Solutions business. We experienced an increase in international casing running jobs, augmented by greater deployment of performance software products, driving the segment’s gross margin above 53%.
“In our Lower 48 drilling business, pricing discipline and strict expense control maintained our average daily margin above $15,000 and in line with our forecast. We expect relative stability in the fourth quarter in both margin and rig count. Our rig count forecast is dependent on stable oil prices, a similar level of churn, and stability in the overall market.
“Our capital spending target for the fourth quarter is now $230 million, with capital expenditures for SANAD newbuilds forecast at $105 million. The resulting annual capital spending forecast for 2024 is now $600 million, including $230 million related to the SANAD newbuilds. SANAD’s rig supplier has improved its performance in reaching manufacturing milestones. We now expect earlier delivery of our rigs going forward. This has accelerated approximately $40 million of newbuild capital spending into 2024. We are targeting reductions in various markets to offset this increase.
“Given the SANAD newbuild capital expenditures moving forward to 2024, the recent rig suspensions by Saudi Aramco and the slightly lower U.S. activity in the fourth quarter, we now expect our full year free cash flow to close the year between $100 and $130 million.”
Outlook
Nabors expects the following metrics for the fourth quarter of 2024:
U.S. Drilling
| o | Lower 48 average rig count of approximately 68 rigs |
| o | Lower 48 daily adjusted gross margin of $15,000 |
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| o | Alaska and Gulf of Mexico combined adjusted EBITDA up approximately $1.5 million versus the third quarter, with an additional rig starting work in Alaska |
International
| o | Average rig count of approximately 84 rigs |
| o | Daily adjusted gross margin of approximately $17,000 |
Drilling Solutions
| o | Adjusted EBITDA of $36 to $37 million |
Rig Technologies
| o | Adjusted EBITDA of $9 to $10 million |
Capital Expenditures
| o | Capital expenditures of $230 million, with $105 million for the newbuilds in Saudi Arabia |
| o | Full-year capital expenditures of approximately $600 million, with $230 million for the SANAD newbuilds |
| o | This forecast includes accelerated timelines from SANAD’s rig supplier totaling an estimated $40 million |
Adjusted Free Cash Flow
| o | Full-year adjusted free cash flow of $100 to $130 million |
Mr. Petrello concluded, “The results from our International Drilling segment demonstrate the value we are building in this business. With our pending rig deployments across markets, our path to future growth is well defined. Our success is driven in large part from our advanced technology. We see the global client base increasingly embracing the benefits of our solutions.”
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| NEWS RELEASE |
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.
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| NEWS RELEASE |
Each of these non-GAAP measures has limitations and therefore should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including Adjusted EBITDA, adjusted operating income (loss), net debt, and adjusted free cash flow, because it believes that these financial measures accurately reflect the Company’s ongoing profitability, performance and liquidity. Securities analysts and investors also use these measures as some of the metrics on which they analyze the Company’s performance. Other companies in this industry may compute these measures differently. Reconciliations of consolidated adjusted EBITDA and adjusted operating income (loss) to income (loss) from continuing operations before income taxes, net debt to total debt, and adjusted free cash flow to net cash provided by operations, which are their nearest comparable GAAP financial measures, are included in the tables at the end of this press release. We do not provide a forward-looking reconciliation of our outlook for Segment Adjusted EBITDA, Segment Gross Margin or Adjusted Free Cash Flow, as the amount and significance of items required to develop meaningful comparable GAAP financial measures cannot be estimated at this time without unreasonable efforts. These special items could be meaningful.
Investor Contacts: William C. Conroy, CFA, Vice President of Corporate Development & Investor Relations, +1 281-775-2423 or via e-mail william.conroy@nabors.com, or Kara Peak, Director of Corporate Development & Investor Relations, +1 281-775-4954 or via email kara.peak@nabors.com. To request investor materials, contact Nabors' corporate headquarters in Hamilton, Bermuda at +441-292-1510 or via e-mail mark.andrews@nabors.com
No Offer or Solicitation
This communication is not intended to and shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote of approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
Important Additional Information and Where to Find It
In connection with the proposed transaction with Parker, Nabors will file with the SEC a Registration Statement on Form S-4 to register the shares of Nabors capital stock to be issued in connection with the proposed transaction. The Registration Statement will include a joint proxy statement/prospectus of Nabors and Parker. The definitive joint proxy statement/prospectus will be sent to the shareholders of each of Nabors and Parker seeking their approval of the proposed transaction and other related matters.
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| NEWS RELEASE |
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.
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NABORS INDUSTRIES LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(Unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| September 30, | June 30, | September 30, | ||||||||||||||||||
| (In thousands, except per share amounts) | 2024 | 2023 | 2024 | 2024 | 2023 | |||||||||||||||
| Revenues and other income: | ||||||||||||||||||||
| Operating revenues | $ | 731,805 | $ | 733,974 | $ | 734,798 | $ | 2,200,307 | $ | 2,280,180 | ||||||||||
| Investment income (loss) | 11,503 | 10,169 | 8,181 | 29,885 | 31,778 | |||||||||||||||
| Total revenues and other income | 743,308 | 744,143 | 742,979 | 2,230,192 | 2,311,958 | |||||||||||||||
| Costs and other deductions: | ||||||||||||||||||||
| Direct costs | 431,705 | 447,751 | 440,225 | 1,309,007 | 1,365,611 | |||||||||||||||
| General and administrative expenses | 63,976 | 62,182 | 62,154 | 187,881 | 187,144 | |||||||||||||||
| Research and engineering | 14,404 | 14,016 | 14,362 | 42,629 | 42,371 | |||||||||||||||
| Depreciation and amortization | 159,234 | 161,337 | 160,141 | 477,060 | 484,066 | |||||||||||||||
| Interest expense | 55,350 | 44,042 | 51,493 | 157,222 | 135,347 | |||||||||||||||
| Other, net | 41,608 | 35,546 | 12,079 | 69,795 | (8,604 | ) | ||||||||||||||
| Total costs and other deductions | 766,277 | 764,874 | 740,454 | 2,243,594 | 2,205,935 | |||||||||||||||
| Income (loss) before income taxes | (22,969 | ) | (20,731 | ) | 2,525 | (13,402 | ) | 106,023 | ||||||||||||
| Income tax expense (benefit) | 10,118 | 10,513 | 15,554 | 41,716 | 59,976 | |||||||||||||||
| Net income (loss) | (33,087 | ) | (31,244 | ) | (13,029 | ) | (55,118 | ) | 46,047 | |||||||||||
| Less: Net (income) loss attributable to noncontrolling interest | (22,738 | ) | (17,672 | ) | (19,226 | ) | (67,295 | ) | (41,128 | ) | ||||||||||
| Net income (loss) attributable to Nabors | $ | (55,825 | ) | $ | (48,916 | ) | $ | (32,255 | ) | $ | (122,413 | ) | $ | 4,919 | ||||||
| Earnings (losses) per share: | ||||||||||||||||||||
| Basic | $ | (6.86 | ) | $ | (6.26 | ) | $ | (4.29 | ) | $ | (15.69 | ) | $ | (2.79 | ) | |||||
| Diluted | $ | (6.86 | ) | $ | (6.26 | ) | $ | (4.29 | ) | $ | (15.69 | ) | $ | (2.79 | ) | |||||
| Weighted-average number of common shares outstanding: | ||||||||||||||||||||
| Basic | 9,213 | 9,148 | 9,207 | 9,199 | 9,168 | |||||||||||||||
| Diluted | 9,213 | 9,148 | 9,207 | 9,199 | 9,168 | |||||||||||||||
| Adjusted EBITDA | $ | 221,720 | $ | 210,025 | $ | 218,057 | $ | 660,790 | $ | 685,054 | ||||||||||
| Adjusted operating income (loss) | $ | 62,486 | $ | 48,688 | $ | 57,916 | $ | 183,730 | $ | 200,988 | ||||||||||
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NABORS INDUSTRIES LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
| September 30, | June 30, | December 31, | ||||||||||
| (In thousands) | 2024 | 2024 | 2023 | |||||||||
| ASSETS | ||||||||||||
| Current assets: | ||||||||||||
| Cash and short-term investments | $ | 459,302 | $ | 473,608 | $ | 1,070,178 | ||||||
| Accounts receivable, net | 384,723 | 368,550 | 347,837 | |||||||||
| Other current assets | 228,300 | 235,632 | 227,663 | |||||||||
| Total current assets | 1,072,325 | 1,077,790 | 1,645,678 | |||||||||
| Property, plant and equipment, net | 2,766,411 | 2,813,148 | 2,898,728 | |||||||||
| Other long-term assets | 714,900 | 724,755 | 733,559 | |||||||||
| Total assets | $ | 4,553,636 | $ | 4,615,693 | $ | 5,277,965 | ||||||
| LIABILITIES AND EQUITY | ||||||||||||
| Current liabilities: | ||||||||||||
| Current debt | $ | - | $ | - | $ | 629,621 | ||||||
| Trade accounts payable | 316,694 | 331,468 | 294,442 | |||||||||
| Other current liabilities | 254,884 | 259,454 | 289,918 | |||||||||
| Total current liabilities | 571,578 | 590,922 | 1,213,981 | |||||||||
| Long-term debt | 2,503,270 | 2,514,169 | 2,511,519 | |||||||||
| Other long-term liabilities | 244,679 | 247,587 | 271,380 | |||||||||
| Total liabilities | 3,319,527 | 3,352,678 | 3,996,880 | |||||||||
| Redeemable noncontrolling interest in subsidiary | 773,525 | 761,415 | 739,075 | |||||||||
| Equity: | ||||||||||||
| Shareholders' equity | 191,363 | 250,371 | 326,614 | |||||||||
| Noncontrolling interest | 269,221 | 251,229 | 215,396 | |||||||||
| Total equity | 460,584 | 501,600 | 542,010 | |||||||||
| Total liabilities and equity | $ | 4,553,636 | $ | 4,615,693 | $ | 5,277,965 | ||||||
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NABORS INDUSTRIES LTD. AND SUBSIDIARIES
SEGMENT REPORTING
(Unaudited)
The following tables set forth certain information with respect to our reportable segments and rig activity:
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| September 30, | June 30, | September 30, | ||||||||||||||||||
| (In thousands, except rig activity) | 2024 | 2023 | 2024 | 2024 | 2023 | |||||||||||||||
| Operating revenues: | ||||||||||||||||||||
| U.S. Drilling | $ | 254,773 | $ | 276,385 | $ | 259,723 | $ | 786,485 | $ | 941,867 | ||||||||||
| International Drilling | 368,594 | 344,780 | 356,733 | 1,074,686 | 1,002,478 | |||||||||||||||
| Drilling Solutions | 79,544 | 72,831 | 82,961 | 238,079 | 224,729 | |||||||||||||||
| Rig Technologies (1) | 45,809 | 61,437 | 49,546 | 145,511 | 183,481 | |||||||||||||||
| Other reconciling items (2) | (16,915 | ) | (21,459 | ) | (14,165 | ) | (44,454 | ) | (72,375 | ) | ||||||||||
| Total operating revenues | $ | 731,805 | $ | 733,974 | $ | 734,798 | $ | 2,200,307 | $ | 2,280,180 | ||||||||||
| Adjusted EBITDA: (3) | ||||||||||||||||||||
| U.S. Drilling | $ | 108,660 | $ | 117,357 | $ | 114,020 | $ | 343,083 | $ | 415,292 | ||||||||||
| International Drilling | 115,951 | 96,175 | 106,371 | 324,820 | 283,114 | |||||||||||||||
| Drilling Solutions | 34,311 | 30,419 | 32,468 | 98,566 | 95,089 | |||||||||||||||
| Rig Technologies (1) | 6,104 | 7,221 | 7,330 | 20,235 | 18,583 | |||||||||||||||
| Other reconciling items (4) | (43,306 | ) | (41,147 | ) | (42,132 | ) | (125,914 | ) | (127,024 | ) | ||||||||||
| Total adjusted EBITDA | $ | 221,720 | $ | 210,025 | $ | 218,057 | $ | 660,790 | $ | 685,054 | ||||||||||
| Adjusted operating income (loss): (5) | ||||||||||||||||||||
| U.S. Drilling | $ | 41,694 | $ | 49,582 | $ | 45,085 | $ | 137,308 | $ | 210,859 | ||||||||||
| International Drilling | 32,182 | 9,862 | 23,672 | 78,330 | 22,226 | |||||||||||||||
| Drilling Solutions | 29,231 | 25,341 | 27,319 | 83,443 | 80,830 | |||||||||||||||
| Rig Technologies (1) | 2,761 | 4,995 | 4,860 | 11,830 | 13,741 | |||||||||||||||
| Other reconciling items (4) | (43,382 | ) | (41,092 | ) | (43,020 | ) | (127,181 | ) | (126,668 | ) | ||||||||||
| Total adjusted operating income (loss) | $ | 62,486 | $ | 48,688 | $ | 57,916 | $ | 183,730 | $ | 200,988 | ||||||||||
| Rig activity: | ||||||||||||||||||||
| Average Rigs Working: (7) | ||||||||||||||||||||
| Lower 48 | 67.8 | 73.7 | 68.7 | 69.5 | 82.8 | |||||||||||||||
| Other US | 6.2 | 6.7 | 6.3 | 6.4 | 6.9 | |||||||||||||||
| U.S. Drilling | 74.0 | 80.4 | 75.0 | 75.9 | 89.7 | |||||||||||||||
| International Drilling | 84.7 | 77.2 | 84.4 | 83.4 | 76.9 | |||||||||||||||
| Total average rigs working | 158.7 | 157.6 | 159.4 | 159.3 | 166.6 | |||||||||||||||
| Daily Rig Revenue: (6),(8) | ||||||||||||||||||||
| Lower 48 | $ | 34,812 | $ | 35,697 | $ | 35,334 | $ | 35,209 | $ | 36,324 | ||||||||||
| Other US | 66,352 | 56,163 | 68,008 | 66,205 | 64,312 | |||||||||||||||
| U.S. Drilling (10) | 37,441 | 37,397 | 38,076 | 37,831 | 38,474 | |||||||||||||||
| International Drilling | 47,281 | 48,528 | 46,469 | 47,041 | 47,728 | |||||||||||||||
| Daily Adjusted Gross Margin: (6),(9) | ||||||||||||||||||||
| Lower 48 | $ | 15,051 | $ | 15,855 | $ | 15,598 | $ | 15,561 | $ | 16,505 | ||||||||||
| Other US | 37,363 | 27,631 | 38,781 | 37,058 | 33,618 | |||||||||||||||
| U.S. Drilling (10) | 16,911 | 16,833 | 17,544 | 17,379 | 17,820 | |||||||||||||||
| International Drilling | 17,085 | 15,778 | 16,050 | 16,407 | 15,762 | |||||||||||||||
1-3
| (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. |
1-4
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 | ) | |||||
1-5
NABORS INDUSTRIES LTD. AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF ADJUSTED EBITDA BY SEGMENT TO ADJUSTED OPERATING INCOME (LOSS) BY SEGMENT
(Unaudited)
(In thousands)
| Three Months Ended September 30, 2024 | ||||||||||||||||||||||||
| U.S. Drilling | International Drilling | Drilling Solutions | Rig Technologies | Other reconciling items | Total | |||||||||||||||||||
| Adjusted operating income (loss) | $ | 41,694 | $ | 32,182 | $ | 29,231 | $ | 2,761 | $ | (43,382 | ) | $ | 62,486 | |||||||||||
| Depreciation and amortization | 66,966 | 83,769 | 5,080 | 3,343 | 76 | 159,234 | ||||||||||||||||||
| Adjusted EBITDA | $ | 108,660 | $ | 115,951 | $ | 34,311 | $ | 6,104 | $ | (43,306 | ) | $ | 221,720 | |||||||||||
| Three Months Ended September 30, 2023 | ||||||||||||||||||||||||
| U.S. Drilling | International Drilling | Drilling Solutions | Rig Technologies | Other reconciling items | Total | |||||||||||||||||||
| Adjusted operating income (loss) | $ | 49,582 | $ | 9,862 | $ | 25,341 | $ | 4,995 | $ | (41,092 | ) | $ | 48,688 | |||||||||||
| Depreciation and amortization | 67,775 | 86,313 | 5,078 | 2,226 | (55 | ) | 161,337 | |||||||||||||||||
| Adjusted EBITDA | $ | 117,357 | $ | 96,175 | $ | 30,419 | $ | 7,221 | $ | (41,147 | ) | $ | 210,025 | |||||||||||
| Three Months Ended June 30, 2024 | ||||||||||||||||||||||||
| U.S. Drilling | International Drilling | Drilling Solutions | Rig Technologies | Other reconciling items | Total | |||||||||||||||||||
| Adjusted operating income (loss) | $ | 45,085 | $ | 23,672 | $ | 27,319 | $ | 4,860 | $ | (43,020 | ) | $ | 57,916 | |||||||||||
| Depreciation and amortization | 68,935 | 82,699 | 5,149 | 2,470 | 888 | 160,141 | ||||||||||||||||||
| Adjusted EBITDA | $ | 114,020 | $ | 106,371 | $ | 32,468 | $ | 7,330 | $ | (42,132 | ) | $ | 218,057 | |||||||||||
| Nine Months Ended September 30, 2024 | ||||||||||||||||||||||||
| U.S. Drilling | International Drilling | Drilling Solutions | Rig Technologies | Other reconciling items | Total | |||||||||||||||||||
| Adjusted operating income (loss) | $ | 137,308 | $ | 78,330 | $ | 83,443 | $ | 11,830 | $ | (127,181 | ) | $ | 183,730 | |||||||||||
| Depreciation and amortization | 205,775 | 246,490 | 15,123 | 8,405 | 1,267 | 477,060 | ||||||||||||||||||
| Adjusted EBITDA | $ | 343,083 | $ | 324,820 | $ | 98,566 | $ | 20,235 | $ | (125,914 | ) | $ | 660,790 | |||||||||||
| Nine Months Ended September 30, 2023 | ||||||||||||||||||||||||
| U.S. Drilling | International Drilling | Drilling Solutions | Rig Technologies | Other reconciling items | Total | |||||||||||||||||||
| Adjusted operating income (loss) | $ | 210,859 | $ | 22,226 | $ | 80,830 | $ | 13,741 | $ | (126,668 | ) | $ | 200,988 | |||||||||||
| Depreciation and amortization | 204,433 | 260,888 | 14,259 | 4,842 | (356 | ) | 484,066 | |||||||||||||||||
| Adjusted EBITDA | $ | 415,292 | $ | 283,114 | $ | 95,089 | $ | 18,583 | $ | (127,024 | ) | $ | 685,054 | |||||||||||
1-6
NABORS INDUSTRIES LTD. AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF ADJUSTED GROSS MARGIN BY SEGMENT TO ADJUSTED OPERATING INCOME (LOSS) BY SEGMENT
(Unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| September 30, | June 30, | September 30, | ||||||||||||||||||
| (In thousands) | 2024 | 2023 | 2024 | 2024 | 2023 | |||||||||||||||
| Lower 48 - U.S. Drilling | ||||||||||||||||||||
| Adjusted operating income (loss) | $ | 30,353 | $ | 40,366 | $ | 32,841 | $ | 102,458 | $ | 174,933 | ||||||||||
| Plus: General and administrative costs | 5,084 | 5,239 | 4,390 | 14,297 | 15,503 | |||||||||||||||
| Plus: Research and engineering | 972 | 1,389 | 909 | 2,845 | 4,098 | |||||||||||||||
| GAAP Gross Margin | 36,409 | 46,994 | 38,140 | 119,600 | 194,534 | |||||||||||||||
| Plus: Depreciation and amortization | 57,470 | 60,447 | 59,332 | 176,535 | 178,487 | |||||||||||||||
| Adjusted gross margin | $ | 93,879 | $ | 107,441 | $ | 97,472 | $ | 296,135 | $ | 373,021 | ||||||||||
| Other - U.S. Drilling | ||||||||||||||||||||
| Adjusted operating income (loss) | $ | 11,341 | $ | 9,216 | $ | 12,244 | $ | 34,850 | $ | 35,926 | ||||||||||
| Plus: General and administrative costs | 313 | 331 | 306 | 944 | 999 | |||||||||||||||
| Plus: Research and engineering | 42 | 90 | 45 | 134 | 349 | |||||||||||||||
| GAAP Gross Margin | 11,696 | 9,637 | 12,595 | 35,928 | 37,274 | |||||||||||||||
| Plus: Depreciation and amortization | 9,496 | 7,329 | 9,602 | 29,240 | 25,945 | |||||||||||||||
| Adjusted gross margin | $ | 21,192 | $ | 16,966 | $ | 22,197 | $ | 65,168 | $ | 63,219 | ||||||||||
| U.S. Drilling | ||||||||||||||||||||
| Adjusted operating income (loss) | $ | 41,694 | $ | 49,582 | $ | 45,085 | $ | 137,308 | $ | 210,859 | ||||||||||
| Plus: General and administrative costs | 5,397 | 5,570 | 4,696 | 15,241 | 16,502 | |||||||||||||||
| Plus: Research and engineering | 1,014 | 1,479 | 954 | 2,979 | 4,447 | |||||||||||||||
| GAAP Gross Margin | 48,105 | 56,631 | 50,735 | 155,528 | 231,808 | |||||||||||||||
| Plus: Depreciation and amortization | 66,966 | 67,776 | 68,934 | 205,775 | 204,432 | |||||||||||||||
| Adjusted gross margin | $ | 115,071 | $ | 124,407 | $ | 119,669 | $ | 361,303 | $ | 436,240 | ||||||||||
| International Drilling | ||||||||||||||||||||
| Adjusted operating income (loss) | $ | 32,182 | $ | 9,862 | $ | 23,672 | $ | 78,330 | $ | 22,226 | ||||||||||
| Plus: General and administrative costs | 15,699 | 14,300 | 15,434 | 45,548 | 42,725 | |||||||||||||||
| Plus: Research and engineering | 1,543 | 1,622 | 1,404 | 4,454 | 5,229 | |||||||||||||||
| GAAP Gross Margin | 49,424 | 25,784 | 40,510 | 128,332 | 70,180 | |||||||||||||||
| Plus: Depreciation and amortization | 83,768 | 86,313 | 82,700 | 246,491 | 260,887 | |||||||||||||||
| Adjusted gross margin | $ | 133,192 | $ | 112,097 | $ | 123,210 | $ | 374,823 | $ | 331,067 | ||||||||||
Adjusted gross margin by segment represents adjusted operating income (loss) plus general and administrative costs, research and engineering costs and depreciation and amortization.
1-7
NABORS INDUSTRIES LTD. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO NET INCOME (LOSS)
(Unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| September 30, | June 30, | September 30, | ||||||||||||||||||
| (In thousands) | 2024 | 2023 | 2024 | 2024 | 2023 | |||||||||||||||
| Net income (loss) | $ | (33,087 | ) | $ | (31,244 | ) | $ | (13,029 | ) | $ | (55,118 | ) | $ | 46,047 | ||||||
| Income tax expense (benefit) | 10,118 | 10,513 | 15,554 | 41,716 | 59,976 | |||||||||||||||
| Income (loss) from continuing operations before income taxes | (22,969 | ) | (20,731 | ) | 2,525 | (13,402 | ) | 106,023 | ||||||||||||
| Investment (income) loss | (11,503 | ) | (10,169 | ) | (8,181 | ) | (29,885 | ) | (31,778 | ) | ||||||||||
| Interest expense | 55,350 | 44,042 | 51,493 | 157,222 | 135,347 | |||||||||||||||
| Other, net | 41,608 | 35,546 | 12,079 | 69,795 | (8,604 | ) | ||||||||||||||
| Adjusted operating income (loss) (1) | 62,486 | 48,688 | 57,916 | 183,730 | 200,988 | |||||||||||||||
| Depreciation and amortization | 159,234 | 161,337 | 160,141 | 477,060 | 484,066 | |||||||||||||||
| Adjusted EBITDA (2) | $ | 221,720 | $ | 210,025 | $ | 218,057 | $ | 660,790 | $ | 685,054 | ||||||||||
(1) Adjusted operating income (loss) represents net income (loss) before income tax expense (benefit), investment income (loss), interest expense, and other, net. Adjusted operating income (loss) is a non-GAAP financial measure and should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. In addition, adjusted operating income (loss) excludes certain cash expenses that the Company is obligated to make. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including adjusted EBITDA and adjusted operating income (loss), because it believes that these financial measures accurately reflect the Company’s ongoing profitability and performance. Securities analysts and investors use this measure as one of the metrics on which they analyze the Company’s performance. Other companies in this industry may compute these measures differently.
(2) Adjusted EBITDA represents net income (loss) before income tax expense (benefit), investment income (loss), interest expense, other, net and depreciation and amortization. Adjusted EBITDA is a non-GAAP financial measure and should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. In addition, adjusted EBITDA excludes certain cash expenses that the Company is obligated to make. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including adjusted EBITDA and adjusted operating income (loss), because it believes that these financial measures accurately reflect the Company’s ongoing profitability and performance. Securities analysts and investors use this measure as one of the metrics on which they analyze the Company’s performance. Other companies in this industry may compute these measures differently.
1-8
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 | ||||||
1-9
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.
1-10