Nabors Industries Ltd. · NYSE:NBR
Nabors Industries — Q2 2014 Earnings Presentation
21 slides from Nabors Industries's earnings presentation, Jul 23, 2014
Slide 1: 2Q14 Earnings Presentation
2Q14 Earnings Presentation July 23, 2014 Presenters: Anthony G. Petrello Chairman, President & Chief Executive Officer William Restrepo Chief Financial 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 i) NABORS 3
Slide 4: Financial Summary
4 Financial Summary ($000’s except EPS) 2Q13 3Q13 4Q13 1Q14 2Q14 Revenue $1,459,326 $1,548,965 $1,605,390 $1,587,173 $1,616,405 EBITDA 355,814 439,337 437,242 391,168 416,280 Operating Income 89,604 165,893 159,584 109,041 133,460 Diluted EPS(1) $0.08 ($0.30)2 $0.42 $0.16 $0.213 (1) Diluted EPS from
Slide 5: Combination of Nabors Completion & Production Services with C&J Energy Services
Combination of Nabors Completion & Production Services with C&J Energy Services 5 > Combination creates: 5th largest stimulation fleet in North America Largest fluids management fleet in North America 2nd largest workover/well-servicing fleet in North America Enhanced prospects for international exp
Slide 6: Improving Financial Flexibility
Capitalization defined as Net Debt plus Shareholders' Equity(2) Improving Financial Flexibility 6 (1) (2) Coverage defined as LTM EBITDA / LTM Interest Expense (3) Leverage defined as Total Debt / LTM EBITDA Note: Subtotals may not total due to rounding High 3/31/12 End 2013 12/31/13 Current 6/30/14
Slide 7: Significant Rig Awards
Significant Rig Awards 7 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 1Q14 U.S. PACE®-X 3 2Q14 U.S. PACE®-X 8 2012-2014 Significant Awards 62 Total PACE®-X Rig Awards 40 Contrac
Slide 8: Recent Asset Sales
Recent Asset Sales > 2Q14 Asset Sales 3 Barge Rigs 1 Jack-Up > Signed agreement for sale of Alaska E&P Anticipated close 3Q14 > Anticipated cash proceeds from all sales 2Q14: $38 Million 3Q14: $33 Million 4Q14+: $24 Million Does not include overriding royalty interest and carried working interest as
Slide 9: Drilling & Rig Services
Drilling & Rig Services @) NABORS 9
Slide 10: Drilling & Rig Services Income Derived from Operating Activities
10 Drilling & Rig Services Income (Loss) Derived from Operating Activities ($000's) 2Q13 3Q13 4Q13 1Q14 2Q14 Drilling & Rig Services: U.S. $69,813 $92,710 $75,378 $72,494 $89,977 Canada 3,895 12,244 14,536 26,160 225 International 32,481 54,271 69,612 48,119 50,583 Rig Services (5,383) 2,357 (2,179)
Slide 11: 2Q14 Rig Utilization & Availability
2Q14 Rig Utilization & Availability 11 Rig Fleet(1) 2Q14 Rig Years Average Utilization U.S. Lower 48 AC 157 149 95% Legacy 114 50 44% U.S. Lower 48 Total 271 199 73% U.S. Offshore 19 11 58% Alaska 19 6 32% Canada 64 22 34% International 146 127 87% Subtotal 519 365 70% PACE®-X Construction(2) 10 Int
Slide 12: PACE-X Rig Deployments & Rig Years
0 5 10 15 20 25 30 35 40 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 Deployments Cumulative Deployments Cumulative Rig Year PACE-X Rig Deployments & Rig Years 12 > PACE®-X rig economic relevance now tracking deployments 15.2 PACE®-X Rig Years through 2Q14
Slide 13: International Working Rigs
International Working Rigs 13 Algeria 10 Ecuador 6 Kurdistan 2 Romania 1 Angola 1 India 3 Kuwait 2 Russia 6 Argentina 22 Iraq 1 Mexico 7 Saudi Arabia 34 Colombia 8 Italy 1 Oman 4 Venezuela 5 Congo 1 Kazakhstan 1 PNG 2 Yemen 2 Total 119 As of 6/30/14
Slide 14: Completion & Production Services
14 Completion & Production Services
Slide 15: Completion & Production Services Income Derived from Operating Activities
Completion & Production Services Income (Loss) Derived from Operating Activities 15 2Q13 3Q13 4Q13 1Q14 2Q14 Completion & Production Services: Completion Services $6,870 $13,024 $14,072 ($33,635) ($581) Production Services 23,471 25,909 26,736 30,591 29,889 Total $30,341 $38,933 $40,808 ($3,044) $29
Slide 16: U.S. Completion & Production Services Fleet
U.S. Completion & Production Services Fleet Region Rigs Frac Crews Trucks Frac Tanks CTU Cementing Wireline SWD Western 181 552 1,828 15 12 Rockies 76 9 75 322 2 9 10 2 Mid-Con 34 1 95 448 8 11 5 Northeast 7 5 104 597 40 15 West Texas 106 3 326 1,269 3 4 3 12 South Texas 28 3 210 511 7 3 3 Ark-La-Te
Slide 17: Outlook and Summary
17 Outlook and Summary
Slide 18: Key Takeaways
Key Takeaways 18 > U.S. Drilling benefits from PACE®-X deployments and tightening rig market > Accelerating PACE®-X newbuilds to capitalize on strong demand for high-spec rigs > International poised for strong growth > Larger high-impact, global opportunity set, relative to U.S. peers > Focus on mat
Slide 19: Appendix
19 Appendix
Slide 20: EBITDA
EBITDA 20 ) 2Q13 3Q13 4Q13 1Q14 2Q14 Drilling & Rig Services $316,630 $384,188 $380,242 $382,238 $376,789 Completion & Production Services 81,515 90,814 96,425 $53,402 $85,881 Other reconciling items (42,331) (35,665) (39,425) (44,472) (46,390) Total $355,814 $439,337 $437,242 $391,168 $416,280
Slide 21: Nabors Global Infrastructure Margins and Activities
21 Nabors Global Infrastructure Margins and Activities 3Q13 4Q13 1Q14 2Q14 Drilling Margin (1) Rig Yrs Margin (1) Rig Yrs Margin (1) Rig Yrs Margin (1) Rig Yrs U.S. Drilling $12,269 195.5 $11,133 198.4 $11,073 206.6 $11,380 215.3 Canada 11,459 30.0 11,478 32.5 11,452 43.8 10,034 21.6 International 1