Nabors Industries Ltd. · NYSE:NBR
Nabors Industries — Q2 2019 Earnings Presentation
15 slides from Nabors Industries's earnings presentation, Jul 30, 2019
Slide 1: Forward-looking statements
2 We often discuss expectations regarding our future markets, demand for our products and services, and our performance in our annual, quarterly, and current reports, press releases, and other written and oral statements. Such statements, including statements in this document that relate to matters
Slide 2: Recent Company Highlights
3 Recent Company Highlights Sequential L48 margins increased slightly to $10,222 from $10,170 in Q1 Deployed five PACE®-M750 rigs in South and West Texas in 2Q 2019, completing planned L48 upgrades Pending International deployments: Argentina (1), Kazakhstan (1), Kuwait (1), Italy (1), Mexico (2), R
Slide 3: Recent Company Highlights
® Sequential L48 margins increased slightly to $10,222 from $10,170 in Qi ©) Deployed five PACE®-M750 rigs in South and West Texas in 2Q 2019, completing planned L48 upgrades ® Pending International deployments: * Argentina (1), Kazakhstan (1), Kuwait (1), Italy (1), Mexico (2), Russia (1), Saudi Ar
Slide 4: Financial Summary
5 Financial Summary See reconciliations in the Appendix Diluted Earnings (Losses) Per Share from continuing operations ($000 except EPS) 2Q18 3Q18 4Q18 1Q19 2Q19 Operating Revenues $761,920 $779,425 $782,080 $799,640 $771,406 Adjusted EBITDA(1) 187,683 200,960 201,619 196,996 198,407 Adjusted Operat
Slide 5: Debt and Liquidity
Debt and Liquidity (As of June 30, 2019) (1) See reconciliations in the Appendix (2) Capitalization defined as Net Debt plus Shareholders’ Equity (3) Coverage defined as TTM Adjusted EBITDA / TTM Interest Expense (4) Leverage defined as Net Debt / TTM Adjusted EBITDA Note: Subtotals may not foot due
Slide 6: Debt Maturity Profile as of 6/30/19
Debt Maturity Profile as of 6/30/19 All figures in millions Annual figures shown at maturity value. Debt balances reflect carrying values as of June 30, 2019 Availability under Revolving Credit Lines subject to covenants * Value of $294 million as of July 29, 2019 Nearest Maturity in 2020 (1) Debt @
Slide 7: Debt Maturity Profile as of 6/30/19
Debt Maturity Profile as of 6/30/19 All figures in millions Nearest Maturity in 2020 () 2500 t --) H H i Debt @ 6/30/19 H H 2000 Total Debt: $3.55Bn2 |; i H Net Debt: $3.16Bn2 | I ' ' : 1 fea Available Liquidity: $1,828 || ! 368 H 1 i H 1 H H 1000 1 i H 1 4 H 1 H Hl 500 1 t H 7a 782 H H 310 337 H H
Slide 8: Rig Fleet: 2Q19 Rig Utilization & Availability
Rig Fleet(1) 2Q19 Average Rigs Working Average Utilization U.S. Lower 48 AC > 1500HP 119 104 87% AC Others 63 8 13% SCR Rigs 9 2 22% U.S. Lower 48 Total 191 115 60% U.S. Offshore 12 4 33% Alaska 16 4 25% Canada 41 7 17% International 148 89 60% Total Fleet 408 218 54% 9 2Q19 Rig Utilization & Availa
Slide 9: Lower 48 Rig Utilization by Type
10 Lower 48 Rig Utilization by Type As of June 30, 2019 Rig Type Total Rigs Active Total Util. AC % PACE®-X* 43 47 91% PACE®-M750 7 7 100% PACE®-M800 6 6 100% PACE®-M1000 4 4 100% PACE®-B 29 29 100% PACE®-S 9 11 82% UPGRADED PACE®-F 6 6 100% PACE®-F 1 9 11% PACE®-M550 7 47 15% Other AC Rigs 0 16 0%
Slide 10: Nabors Drilling Operations
11 Please refer to the disclaimers on slides 2 and 3 of the presentation deck. U.S. 122 Kazakhstan 5 Venezuela 3 Mexico 2 Saudi Arabia 42 Oman 4 Algeria 2 Colombia 14 Canada 3 India 2 Argentina 9 Russia 3 Kuwait 2 Total = 213 Nabors Drilling Operations As of June 30, 2019
Slide 11: Nabors Drilling Operations
Nabors Drilling Operations As of June 30, 2019 US. 122] [Kazakhstan 5] [Venezuela 3] [Mexico 2 SaudiArabia. 42) |Oman 4| |Algeria 2 Colombia 14| |Canada 3| |india 2 ‘Argentina 9 Russia 3} [Kuwait 2 cn sie 2 3 «\) NABORS
Slide 12: Rig Margins & Activity
13 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. 2Q18 3Q18 4Q18 1Q19 2Q19 Margin(1) Avg. Rigs Working Margin(1) Avg. Rigs Working Margin(1) Avg. Rigs Working Margin(1) Avg.
Slide 13: Reconciliation of Adjusted EBITDA to Income (Loss) from Continuing Operations
14 Reconciliation of Adjusted EBITDA to Income (Loss) from Cont. Operations Before Income Taxes Adjusted operating income (loss) represents income (loss) from continuing operations before income taxes, interest expense, earnings (losses) from unconsolidated affiliates, investment income (loss), impa
Slide 14: Reconciliation of Net Debt to Total Debt
15 Reconciliation of Net Debt to Total Debt Net debt is computed by subtracting the sum of cash, cash equivalents 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
Slide 15: Reconciliation of Net Debt to Total Debt
from total debt. This non-GAAP measure has in accordance wit ever, manage itbeli Net debt is computed by subtracting the sum of cash, cash equivalents and short term invest imitations and therefore should not be used in isolation or as a substitute for the amounts rep ey analyze the company's perfor