Nabors Industries Ltd. · NYSE:NBR
Nabors Industries — Q3 2013 Earnings Presentation
22 slides from Nabors Industries's earnings presentation, Oct 23, 2013
Slide 1: 3Q13 Earnings Presentation
3Q13 Earnings Presentation October 23, 2013 Presenter: Anthony G. Petrello Chairman, President & Chief Executive Officer
Slide 2: Forward-Looking Statements
Forward-Looking Statements 2 We often discuss expectations regarding our markets, demand for our products and services, and our future performance in our annual and quarterly reports, press releases, and other written and oral statements. Such statements, including statements in this document incorp
Slide 3: Recent Highlights
Recent Highlights @) NABORS 3
Slide 4: Significant Rig Awards
Significant Rig Awards 4 Date Country/Type Awards 2012 U.S. PACE®-X 17 1Q13 U.S. PACE®-X 2 2Q13 U.S. PACE®-X 2 Argentina 6 Kurdistan 2 Kazakhstan 1 3Q13 U.S. PACE®-X 8 Saudi Arabia 11 Mexico 2 2013 Total Awards 34 Total PACE®-X Rig Awards 29
Slide 5: Refinancing for Improved Debt Outlook
Refinancing for Improved Debt Outlook 5 >Took advantage of current low rates to refinance $785mm (~70%) of 2019, 9.25% notes; annual interest payments decreased by ~$45mm (3.51% weighted avg. interest rate) – Blended interest rate is now 4.56%, down from 5.48% (1) Capitalization defined as Net Debt
Slide 6: Continued US Land Drilling Efficiencies
Continued US Land Drilling Efficiencies 6 >1Q13 – 3Q13: land wells drilled increased by 641, while three land rigs were added in that same time Source: Baker Hughes Wells Rigs 1,690 1,700 1,710 1,720 1,730 1,740 1,750 1,760 1,770 8,400 8,500 8,600 8,700 8,800 8,900 9,000 9,100 9,200 9,300 Q4 - 2012
Slide 7: Stimulation Market Remains Challenging
Stimulation Market Remains Challenging Improving efficiency exacerbates excess capacity 7 > Nabors’ performance has improved by over 20% year-to-date, but market capacity continues to exceed demand Source: PacWest 10% 16% 24% 30% 28% 25% 25% 27% 0% 5% 10% 15% 20% 25% 30% 35% 0.0 2.0 4.0 6.0 8.0 10.0
Slide 8: Financial Summary
Financial Summary ($000 except EPS) 3Q12 4Q12 1Q13 2Q13 3Q13 Revenue $1,630,380 $1,571,745 $1,538,373 $1,459,326 $1,548,191 EBITDA 491,472 427,144 412,503 355,814 439,337 Operating Income 225,835 153,662 143,138 89,604 165,893 Diluted EPS(1) $0.22 $0.45 $0.31 $0.08 ($0.30) (1) Diluted EPS for contin
Slide 9: Drilling & Rig Services
Drilling & Rig Services i) NABORS 9
Slide 10: Drilling & Rig Services Adjusted Income Derived from Operating Activities
10 Drilling & Rig Services Adjusted Income (Loss) Derived from Operating Activities ($M’s) 3Q12 4Q12 1Q13 2Q13 3Q13 Drilling & Rig Services: U.S. $115,207 $82,603 $77,595 $69,813 $92,710 Canada 21,679 27,064 30,518 3,895 12,244 International 30,299 23,388 21,469 32,481 54,271 Rig Services 14,027 8,7
Slide 11: Global Rig Fleet Details
Global Rig Fleet Details 11 AC SCR Mech Total Moving Systems Alaska Land 5 12 2 19 13 Lower 48 164 88 26 278 151 Canada 17 20 29 66 20 International Land 36 73 28 137 60 Offshore 9 40 2 51 n/a Total 231 233 87 551 244 Rig Counts include contracted rigs scheduled to be delivered and transferred, and
Slide 12: 3Q13 Rig Utilization & Availability
Q13 Rig Utilization & Availability 12 Rig Fleet(1) 3Q13 Rig Years Utilization U.S. Lower 48 AC 142 132 94% Legacy 122 47 39% U.S. Lower 48 Total 264 179 68% U.S. Offshore 22 12 55% Alaska 19 5 26% Canada 66 30 45% International 154 124 81% Subtotal 525 350 PACE®-X Construction(2) 23 Offshore Newbuil
Slide 13: Canada Working Rigs by Play
Canada Working Rigs by Play 13 Play Target AC SCR Mechanical Total Pad Capable Deep Basin Oil/Gas 1 5 3 9 3 Cardium Oil 3 3 Duvernay Gas 1 1 1 Horn River/Ft. Liard Oil/Gas 1 2 3 1 Mannville Group (Oil Sands) Oil 1 1 2 2 Montney Oil/Gas 4 3 3 10 4 Other Oil/Gas 2 2 3 7 3 Total 9 14 12 35 14 As of 9/3
Slide 14: International Working Rigs
International Working Rigs 14 Algeria 9 Ecuador 6 Kurdistan 2 Romania 1 Angola 1 India 5 Kuwait 2 Russia 5 Argentina 16 Iraq 3 Malaysia 2 Saudi Arabia 32 Colombia 7 Italy 1 Mexico 13 UAE 1 Congo 2 Jordan 1 Oman 4 Venezuela 5 Kazakhstan 1 PNG 2 Yemen 2 Total 123 As of 9/30/13
Slide 15: Completion & Production Services
Completion & Production Services 15
Slide 16: Completion & Production Services Adjusted Income Derived from Operating Activities
Completion & Production Services Adjusted Income Derived from Operating Activities 16 ($M’s) 3Q12 4Q12 1Q13 2Q13 3Q13 Completion & Production Services: Completion Services $47,218 $30,296 $17,756 $6,870 $13,024 Production Services 34,035 21,374 26,014 23,471 25,909 Total $81,253 $51,670 $43,770 $30,
Slide 17: Completion & Production Services Fleet
Completion & Production Services Fleet Region Rigs Frac Crews Trucks(1) Frac Tanks CTU Cementing Wireline SWD Western 181 548 99 15 12 Rockies 73 9 56 322 2 9 10 Mid-Con 36 1 105 462 2 8 11 3 Northeast 8 5 104 600 3 40 15 West Texas 109 3 325 1,237 2 4 4 11 South Texas 27 3 196 573 6 7 2 2 Ark-La-Te
Slide 18: Outlook and Summary
18 Outlook and Summary
Slide 19: Key Takeaways
Key Takeaways 19 > International and U.S. Drilling turning the corner > Global optionality relative to North America-centric peers > Opportunities for additional high-impact investments > Completion Services remains challenging with limited visibility > Focus on matters within our control to improve
Slide 20: Appendix
20 Appendix
Slide 21: EBITDA
EBITDA 21 ($M’s) 3Q12 4Q12 1Q13 2Q13 3Q13 Drilling & Rig Services $392,601 $359,999 $346,238 $316,630 $384,188 Completion & Production Services 136,488 107,732 97,842 81,515 90,814 Other reconciling items (37,617) (40,587) (31,577) (42,331) (35,665) Total $491,472 $427,144 $412,503 $355,814 $439,337
Slide 22: Nabors Global Infrastructure Margins and Activities
Nabors Global Infrastructure Margins and Activities 1Q13 2Q13 3Q13 Drilling Margin (1) Rig Yrs Margin (1) Rig Yrs Margin (1) Rig Yrs U.S. Lower 48 $9,955 169.5 $9,388 175.5 $11,357 178.6 U.S. Offshore 19,163 14.1 20,888 15.6 18,717 11.9 Alaska 48,491 6.0 36,307 4.7 29,476 5.0 Canada 14,278 40.0 14,9