Nabors Industries Ltd. · NYSE:NBR
Nabors Industries — Q2 2017 Earnings Presentation
17 slides from Nabors Industries's earnings presentation, Aug 3, 2017
Slide 1: Non-GAAP Financial Measures
3 Non-GAAP Financial Measures This presentation refers to certain “non-GAAP” financial measures, such as adjusted EBITDA, adjusted operating income (loss) and net debt. The components of these non-GAAP measures are computed by using amounts that are determined in accordance with accounting principle
Slide 2: Recent Company Highlights
4 Recent Company Highlights Deployment of 11 rigs in 2Q17 in the lower 48 (including two new PACE®-X rigs), finishing the quarter at 101 rigs on revenue Currently operating 102 rigs in the lower 48 states with all PACE®-X and PACE®-M800 rigs fully utilized International rig count increased for the f
Slide 3: Recent Company Highlights
* Deployment of 11 rigs in 2Q17 in the lower 48 (including two new PACE®-X rigs), finishing the quarter at 101 rigs on revenue + Currently operating 102 rigs in the lower 48 states with all PACE®-X and PACE®-M800 rigs fully utilized + International rig count increased for the first time on a quarter
Slide 4: Financial Summary
6 Financial Summary Diluted Earnings (Losses) Per Share from continuing operations Includes impairments of $0.39 per share related to our holdings in C&J Energy Services, Ltd. and other assets Includes impairments of $0.87 per share related to the impairment of certain assets and other charges ($000
Slide 5: Debt and Liquidity
7 Debt and Liquidity As of June 30, 2017 1. Capitalization defined as Net Debt plus Total Equity 2. Coverage defined as TTM Adjusted EBITDA / TTM Interest Expense 3. Leverage defined as Net Debt / TTM Adjusted EBITDA Note: Subtotals may not foot due to rounding Liquidity (at June 30, 2017) Cash & Av
Slide 6: Debt and Liquidity
Debt and Liquidity As of June 30, 2017 High 4Q16 1Q17 2Q17 Change 2Q17 from 3/31/2012 12/31/2016 3/31/2017 6/30/2017 ($MM's) 1Q17 Total Debt $4,750 $3,579 $3,662 $3,740 $78 Cash and ST Investments 494 295 229 232 3 Net Debt $4,256 $3,283 $3,433 $3,508 $75 Total Equity 5,823 3,255 3,186 3,073 (113) N
Slide 7: Rig Fleet: 2Q17 Rig Utilization & Availability
Rig Fleet(1) 2Q17 Average Rigs Working Average Utilization U.S. Lower 48 AC ≥ 1500HP 111 80 72% AC Others 72 12 17% SCR Rigs 24 3 10% U.S. Lower 48 Total 207 95 46% U.S. Offshore 17 3 15% Alaska 16 3 19% Canada 47 12 26% International 160 93 58% Subtotal 447 206 46% Pace®-X Rig Construction 1 Pace®-
Slide 8: Lower 48 Rig Utilization by Type
10 Lower 48 Rig Utilization by Type As of June 30, 2017 Walking Skidding Pad Not Pad Total Capable Capable Rigs Active Total Util. Active Total Util. Active Total Total Active Total Util. Active Total Util. AC 84 135 62% 8 20 40% 92 155 59% 6 28 21% 98 183 54% PACE®X 45 46 98% 0 0 0% 45 46 98% 0 0 0
Slide 9: Nabors Working Rigs
11 Nabors Working Rigs As of June 30, 2017 US 108 Colombia 8 Algeria 4 Mexico 1 Saudi Arabia 41 Venezuela 5 Kuwait 3 PNG 1 Argentina 16 Oman 4 Ecuador 2 Italy 1 Canada 11 Kazakhstan 4 India 2 Russia 1 Total = 212
Slide 10: Saudi Arabia Joint Venture Expecting Robust Growth in Rigs and Well Count
12 Saudi Arabia Joint Venture Expecting Robust Growth in Rigs and Well Count(1) (1) Saudi Aramco In-Kingdom Total Value Add presentation Future Drilling Well Count(1) “Our ability to increase supplies of natural gas to reduce the Kingdom’s reliance on liquid fuel for electricity generation and to po
Slide 11: PACE-M1000 - The SMARTRig
13 PACE®-M1000 - The SMARTRigTM Setting the New Gold Standard for Shale Drilling Pad Optimal Capability With Automated Walking System Side-SaddleTM Configuration Hydraulic Raised Mast & Substructure Hook Load 1,000,000 lbs Setback 900,000 lbs Racking Capacity 30,000ft of 5-7/8” Drill Pipe Rigtellige
Slide 12: PACE-X Quad Drilling Design
14 Decreases number of connections by 33% Extends duration where block can travel at full speed Example for a 3-well pad for customer: 900+ less connections 43~ hours saved Allows for running double joints of casing and offline casing racking Derrickman replaced by automated equipment 800k lbs Hookl
Slide 13: PACE-X Quad Drilling Design
PACE®-X Quad Drilling Design Unique Design to Handle Stands of Four Drill Pipes vs. Three, + Decreases number of connections by 33% + Extends duration where block can travel at §j full speed i + Example for a 3-well pad for customer: —900+ less connections —43~ hours saved + Allows for running doubl
Slide 14: Rig Margins & Activity
16 Rig Margins & Activity (1) Margin = gross margin per rig per day for the period. Gross margin is computed by subtracting direct costs from operating revenues for the period. 3Q16 4Q16 1Q17 2Q17 Drilling Margin(1) Avg. Rigs Working Margin(1) Avg. Rigs Working Margin(1) Avg. Rigs Working Margin(1)
Slide 15: Reconciliation of Adjusted EBITDA to Income (Loss) from Cont. Operations Before Income Taxes
17 Reconciliation of Adjusted EBITDA to Income (Loss) from Cont. Operations Before Income Taxes Adjusted EBITDA is computed by subtracting the sum of direct costs, general and administrative expenses and research and engineering expenses from operating revenues. Adjusted operating income (loss) is c
Slide 16: Reconciliation of Net Debt to Total Debt
18 Reconciliation of Net Debt to Total Debt Net debt is computed by subtracting the sum of cash and short-term investments from total debt. This non-GAAP measure has limitations and therefore should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. However
Slide 17: Reconciliation of Net Debt to Total Debt
Reconciliation of Net Debt to Total Debt Net debt is computed by subtracting the sum of cash and short-term investments from total debt. This non-GAAP measure has limitations and therefore should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. However, m