Nabors Industries Ltd. · NYSE:NBR
Nabors Industries — Q4 2015 Earnings Presentation
13 slides from Nabors Industries's earnings presentation, Feb 16, 2016
Slide 1: 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 2: Forward-Looking Statements
Forward-Looking Statements 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 incorpor
Slide 3: Financial Summary
4 Financial Summary Diluted Earnings Per Share from continuing operations Includes charges and impairments of $3.39 per share related to asset impairments and transaction costs Includes net benefit of 23¢ per share for net gain from the C&J Energy Services transaction, tax benefits from various inte
Slide 4: Current Debt and Liquidity
Current Debt and Liquidity 5 Capitalization defined as Net Debt plus Shareholders’ Equity Coverage defined as TTM Adjusted EBITDA / TTM Interest Expense Leverage defined as Total Debt / TTM Adjusted EBITDA Note: Subtotals may not foot due to rounding * Based on 12/31/15 CJES share price Liquidity (a
Slide 5: Current Debt and Liquidity
Current Debt and Liquidity High 3Q15 4a15 Change Change (SMM's) 3/31/2012 _ 9/30/2015 12/31/2015 _3Q15to4Q15__4Q15 from High Total Debt $4,750 $3,729 $3,662 (867) ($1,088) Cash and ST Investments 494 277 275 2 -219 Net Debt $4,256 $3,452 «$3,387 ($65) ($869) Shareholder’s Equity 5,811 4,502 4,283 -2
Slide 6: 4Q15 Rig Utilization & Availability
4Q15 Rig Utilization & Availability 7 Rig Fleet(1) 3Q15 Rig Years Average Utilization U.S. Lower 48 AC 172 71 41% Legacy 47 7 15% U.S. Lower 48 Total 219 78 36% U.S. Offshore 17 7 41% Alaska 16 7 44% Canada 58 14 24% International 162 118 73% Subtotal 472 223 47% Lower 48 Construction 4 Total Fleet
Slide 7: 12/31/15 U.S. Rig Utilization Power Type and Pad Capability
12/31/15 U.S. Rig Utilization Power Type and Pad Capability 8 Walking Skidding Pad Capable Not Pad Capable Total Rigs Total % Working Total Util. Working Total Util. Total Working Total Util. Util. AC 53 122 43% 5 18 28% 41% 4 33 12% 172 43% Legacy 1 7 14% 2 7 29% 21% 3 33 9% 47 11% Grand Total 54 1
Slide 8: 12/31/15 International Working Rigs
12/31/15 International Working Rigs 9 Total 112 Algeria 10 Ecuador 0 Kurdistan 1 PNG 1 Angola 0 India 2 Kuwait 2 Russia 5 Argentina 20 Iraq 1 Malaysia 1 Saudi 44 Colombia 8 Italy 1 Mexico 3 Venezuela 5 Congo 1 Kazakhstan 2 Oman 5
Slide 9: 12/31/15 International Working Rigs
12/31/15 International Working Rigs @) NABORS lAlgeria 10/ [Ecuador 0] {Kurdistan 1] |PNG 1 |Angola 0} India 2] [Kuwait 2| [Russia 5 JArgentina 20) —‘|kaq 1] |Malaysia 1! | Saudi 44) Colombia 8} hay 1] |Mexico 3] [Venezuela 5 [Congo 1] [Kazakhstan 2] [oman 5] Total 112
Slide 10: Strategic Focus
Strategic Focus Capitalize on the existing asset base Differentiate the rig and service offerings Enhance operational excellence Improve financial flexibility 11
Slide 11: Strategic Focus
Strategic Focus > Capitalize on the existing asset base > Differentiate the rig and service offerings > Enhance operational excellence > Improve financial flexibility @) NABORS
Slide 12: Rig Margins & Activity
13 Rig Margins & Activity Margin = gross margin per rig per day for the period. Gross margin is computed by subtracting direct costs from operating revenues for the period. 1Q15 2Q15 3Q15 4Q14 Drilling Margin (1) Rig Yrs Margin (1) Rig Yrs Margin (1) Rig Yrs Margin (1) Rig Yrs U.S. Drilling $13,487
Slide 13: Rig Margins & Activity
Rig Margins & Activity 1Q15 2Q15 3Q15 4Q14 Drilling Margin Rig Yrs |Margin Rig Yrs |Margin Rig Yrs |Margin) Rig Yrs U.S. Drilling | $13,487 167.6 | $13,739 119.5 | $11,177 103 $12,276 91 Canada 9,927 25.6 7,771 9.7 6,349 17.2 9,473 14.4 International | 18,865 130.1 17,263 127.1 18,613 121.3 16,321 1