Nabors Industries Ltd. · NYSE:NBR
Nabors Industries — Q3 2026 Earnings Presentation
28 slides from Nabors Industries's earnings presentation, Oct 27, 2026
Slide 1: 3Q 2026 Earnings Presentation
3Q 2026 Earnings Presentation Technology. Expertise. Performance. Drilling for a better tomorrow. NYSE: NBR www.nabors.com DELIVERING ENERGY. ADVANCING THE WORLD. N A B O R S . C O M
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS We often discuss expectations regarding our future markets, demand for our products and services, and our • our ability to complete, and realize the expected benefits of, strategic transactions, such as our acquisition of Parker performance in our annual, quarterly, and cu
Slide 3: The Nabors Platform
THE NABORS PLATFORM DRILLING 3Q 2026 SOLUTIONS REVENUE BY SEGMENT Vertically integrated drilling and Advanced software technology solutions. analytics & real-time insights INTERNATIONAL Aligned to drive advanced drilling 51% DRILLING performance. DRILLING U.S. DRILLING 31% OPERATIONS U.S. & key inte
Slide 4: Vertical Integration Drives Significant Value
VERTICAL INTEGRATION DRIVES SIGNIFICANT VALUE INTERNATIONAL U.S. DRILLING RIG DRILLING DRILLING SOLUTIONS* TECHNOLOGIES Deploying fit-for-purpose rigs Operating a fleet of high-spec Using the rig as an integrated Automated technology that in major markets. rigs across key U.S. basins. platform to de
Slide 5: 3Q Highlights. Momentum Accelerates.
3Q HIGHLIGHTS. MOMENTUM ACCELERATES. BROAD-BASED IMPROVEMENT ABOVE EXPECTATIONS KEEPING OUR COMMITMENTS Sequential EBITDA growth across Results exceeded implied guidance Reduced gross debt every operating segment INTERNATIONAL LOWER 48 DRILLING BALANCE SHEET DRILLING DRILLING SOLUTIONS PROGRESS 95 7
Slide 6: Value creation drivers
These drivers support value creation through operational performance, disciplined capital allocation, and technology-enabled differentiation. 1 2 3 4 Selective Operational Technology-led Disciplined focus international growth excellence in the innovation with on improving aligned with U.S. Lower 48.
Slide 7: Our International Franchise
1 Selective International Growth Aligned with Customer Demand and Returns OUR INTERNATIONAL FRANCHISE DEEP ROOTS. STRONG POSITIONS. EXPANDING OPPORTUNITIES. MIDDLE EAST Decades of investment in assets, relationships, infrastructure and technology have created durable regional platforms. LATIN AMERIC
Slide 8: Improving International Rig Economics
1 Selective International Growth Aligned with Customer Demand and Returns IMPROVING INTERNATIONAL RIG ECONOMICS INTERNATIONAL DRILLING INTERNATIONAL DRILLING AVERAGE RIG COUNT DAILY METRICS 100 $60,000 95 INTERNATIONAL DRILLING $50,000 90 85 Disciplined capital deployment focused on $40,000 returns
Slide 9: Strategic Growth in Key International Markets
1 Selective International Growth Aligned with Customer Demand and Returns STRATEGIC GROWTH IN KEY INTERNATIONAL MARKETS INTERNATIONAL DRILLING RIG COUNT END OF 110 OPERATING AWARDED / CONTRACT SUSPENSIONS 105 GLOBAL GROWTH 2 1 1 100 2 PLATFORM 3 -3 -1 -1 96 1 -1 95 9 94 -1 Rig Count 92 Disciplined d
Slide 10: Efficiency and Performance Improving Margins
2 Operational Excellence in the U.S. Lower 48 EFFICIENCY AND PERFORMANCE IMPROVING MARGINS L48 DRILLING L48 DRILLING AVERAGE RIG COUNT DAILY METRICS 80 $40,000 L48 DRILLING 70 60 $30,000 Operational efficiency, performance, pricing and cost discipline supported by 50 a high-quality customer portfoli
Slide 11: ~20% Decline in Lower-48 Marketed Rigs
2 Operational Excellence in the U.S. Lower 48 ~20% DECLINE IN LOWER-48 MARKETED RIGS YEAR-END MARKETED RIG COUNTS FOR SELECTED CONTRACTORS, 2023-2025 -34% -13% -26% -23% -14% L48 DRILLING Total L48 Marketed Rigs: 760 → 600 (~20% decline) Higher utilization supports 2024 2024 2024 2024 2024 2023 2023
Slide 12: Drilling Solutions – Global Market Reach
3 Technology-Led Innovation with Demonstrated Results DRILLING SOLUTIONS – GLOBAL MARKET REACH L48 – OFFSHORE - ALASKA >15 COUNTRIES U.S. INTERNATIONAL ($ millions) 2Q’25 3Q’25 4Q’25 1Q’26 2Q’26 3Q’26 ($ millions) 2Q’25 3Q’25 4Q’25 1Q’26 2Q’26 3Q’26 Revenue $41 $42 $41 $40 $44 $47 Revenue $67 $66 $6
Slide 13: Drilling Solutions Expansion - Greater Adoption & Improving Mix
3 Technology-Led Innovation with Demonstrated Results DRILLING SOLUTIONS EXPANSION - GREATER ADOPTION & IMPROVING SERVICE-LINE MIX REVENUE, ADJUSTED EBITDA & FREE CASH FLOW CONVERSION** $500 100% $400 80% DRILLING SOLUTIONS $300 60% $ millions Software services driving strong free cash flow $200 40%
Slide 14: NDS Growth Driven by Increased Product Penetration
3 Technology-Led Innovation with Demonstrated Results NDS GROWTH DRIVEN BY INCREASED PRODUCT PENETRATION LOWER 48 – NABORS RIGS LOWER 48 – THIRD PARTY RIGS NDS L48 L48 NABORS AVERAGE NDS L48 - THIRD L48 MARKET AVERAGE NABORS REVENUE RIGS WORKING PARTY REVENUE RIGS WORKING $35 90 $16 600 23% 11% 12%
Slide 15: From Venture Investment to Field Deployment
FROM VENTURE INVESTMENT TO FIELD DEPLOYMENT. The deployment of a Nabors PACE®-B rig at Project Obsidian in Oregon marks an important step in advancing our geothermal investment strategy and unlocking a compelling long-term growth opportunity in an attractive adjacent energy market. INITIAL PHASE 50
Slide 16: Gross Leverage Reduced to Lowest Level Since 2013
4 Disciplined Focus on Improving Capital Structure and Reducing Debt GROSS LEVERAGE REDUCED TO LOWEST LEVEL SINCE 2013 GROSS DEBT AND GROSS LEVERAGE $5.0 8.0x $4.5 7.0x $4.0 6.0x $3.5 5.0x Gross leverage $3.0 $ billions $2.5 4.0x $2.0 3.0x $1.5 2.0x $1.0 1.0x $0.5 $- 0.0x 2008 2009 2010 2011 2012 20
Slide 17: Significant Headway Toward ~1x Net Leverage Goal
4 Disciplined Focus on Improving Capital Structure and Reducing Debt SIGNIFICANT HEADWAY TOWARD ~1x NET LEVERAGE GOAL NET DEBT AND NET LEVERAGE $4.5 8.0x $4.0 7.0x $3.5 6.0x $3.0 5.0x Net leverage $ billions $2.5 4.0x $2.0 3.0x $1.5 2.0x $1.0 $0.5 1.0x $- 0.0x 2008 2009 2010 2011 2012 2013 2014 2015
Slide 18: Actively Managing Maturity Profile
4 Disciplined Focus on Improving Capital Structure and Reducing Debt ACTIVELY MANAGING MATURITY PROFILE AFTER THE 100 MILLION PARTIAL REDEMPTION OF 2030 NOTES: (Completed in 3Q 2026) $800 ($ millions) 12/31/24 12/31/25 6/30/26 9/30/26 $600 100 Gross Debt $2,505 $2,495 $2,120 $2,023 $ millions $400 C
Slide 19: Executing to Plan. Fourth Quarter 2026 Outlook
EXECUTING TO PLAN. POSITIONED TO DELIVER. Raising our free cash flow projection for 2026. FOURTH QUARTER 2026 OUTLOOK • Lower 48 average rig count of ~75, exit 76-77 rigs U.S. DRILLING • Lower 48 average daily adjusted gross margin of $14,500 - $14,700 • Alaska and Gulf of America adjusted EBITDA of
Slide 20: Executing to Plan. Full Year 2026 Outlook
EXECUTING TO PLAN. POSITIONED TO DELIVER. Raising our free cash flow projection for 2026. FULL YEAR 2026 OUTLOOK ~ 930 MILLION ADJUSTED EBITDA 710 - 720 MILLION CAPITAL EXPENDITURES Including $295 - $305 million for SANAD newbuilds 100 - 110 MILLION ADJUSTED FREE CASH FLOW Including ~$20 million of
Slide 21: Appendix
APPENDIX @l) NABORS
Slide 22: Reconciliation of Non-GAAP Measures to Net Income (Loss)
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO NET INCOME (LOSS) Adjusted EBITDA represents net income (loss) before, income taxes, investment income (loss), interest expense, gain on disposition of Quail Tools, other, net and depreciation and amortization. Adjusted EBITDA is a non-GAAP financial
Slide 23: Reconciliation of U.S. Drilling Adjusted Gross Margin to Operating Income
RECONCILIATION OF U.S. DRILLING SEGMENT ADJUSTED GROSS MARGIN TO U.S. DRILLING SEGMENT ADJUSTED OPERATING INCOME Adjusted gross margin by segment represents adjusted operating income (loss) plus general and administrative costs, research and engineering costs and depreciation and amortization. Se pt
Slide 24: Reconciliation of Net Debt to Total Debt
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 wit
Slide 25: Reconciliation of Adjusted EBITDA by Segment to Adjusted Operating Income
RECONCILIATION OF ADJUSTED EBITDA BY SEGMENT TO ADJUSTED OPERATING INCOME Three Months Ended September 30, 2026 (In thousands) Other U.S. International Drilling Rig reconciling Total Drilling Drilling Solutions Technologies items Adjusted operating income (loss) $ 33,385 $ 64,275 $ 36,150 $ 3,037 $
Slide 26: Reconciliation of Drilling Solutions by Geography
RECONCILIATION OF DRILLING SOLUTIONS BY GEOGRAPHY For the three months ended (In thousands) Jun. 30, Sep. 30, Dec. 31, Mar. 31, Jun. 30, Sep. 30, 2025 2025 2025 2026 2026 2026 Drilling Solutions - U.S. $ 103,193 $ 76,361 $ 41,140 $ 39,647 $ 43,972 $ 47,145 Drilling Solutions - International 67,090 6
Slide 27: Reconciliation of Adjusted Free Cashflow to Operating Cash Flow
RECONCILIATION OF ADJUSTED FREE CASHFLOW TO NET CASH PROVIDED BY OPERATING ACTIVITIES Adjusted free cash flow represents net cash provided by operating activities less cash used for capital expenditures, net of proceeds from sales of assets, and before cash paid for acquisition related costs. Manage
Slide 28: Contact Us
NABORS INDUSTRIES LTD. CONTACT US: William C. Conroy, CFA VP - Corporate Development and Investor Relations William.Conroy@nabors.com Kara K. Peak Director - Corporate Development and Investor Relations Kara.Peak@nabors.com NABORS INDUSTRIES LTD NYSE: NBR nabors.com NABORS CORPORATE SERVICES 515 W.