Nabors Industries Ltd. · NYSE:NBR
Nabors Industries — Merger or Acquisition (October 2024)
18 slides from Nabors Industries's merger presentation, Oct 15, 2024
Slide 1: Acquisition of Parker Wellbore Enhancing Nabors' NDS Strategy
October 15, 2024 Acquisition of Parker Wellbore Enhancing Nabors’ NDS Strategy
Slide 2: Forward-Looking Statements
N A B O R S . C O M 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
Slide 3: Acquisition of Parker Wellbore Drives Significant Benefits
N A B O R S . C O M Acquisition of Parker Wellbore Drives Significant Benefits Nabors Industries and Parker Wellbore 3 Expands Nabors Drilling Solutions (NDS) Incremental FCF and improves leverage metrics Strengthens international presence Enhances scale with growing franchise Adds Quail Tools to ND
Slide 4: The Transaction
N A B O R S . C O M The Transaction Nabors Industries and Parker Wellbore 4 Nabors to acquire Parker Wellbore for: • 4.8 million shares of Nabors common stock • Assumption of $100 million of net debt • Consistent with long-term strategy • Expands Nabors Drilling Solutions meaningfully • Adds profita
Slide 5: Parker Wellbore's Service Lines
N A B O R S . C O M Drilling 39% › 10 land: 8 Int’l (6 working) and 2 Alaska (2 working) › 7 barge: 6 U.S. (1 working) and 1 Caspian (working) OWNED RIGS OPERATIONS AND MANAGEMENT SERVICES H1 2024 REVENUE › ExxonMobil Hibernia (Canada) › Cenovus West White Rose (Canada) › Hilcorp (Alaska) Well Const
Slide 6: Materially Growing Drilling Solutions
N A B O R S . C O M Materially Growing Drilling Solutions Nabors Industries and Parker Wellbore 6 S&T 48% U.S. Drilling 16% International Drilling 23% WC 13% NDS 11% Rig Tech 7% U.S. Drilling 35% International Drilling 47% Parker Wellbore Nabors Combined $389 million $706 million $317 million NDS 19
Slide 7: Surface and Downhole – The Leading Franchise
N A B O R S . C O M Surface and Downhole – The Leading Franchise Nabors Industries and Parker Wellbore 7 Quail Tools should benefit from market tailwinds • Lower 48 market poised for a multi-year recovery in natural gas drilling • M&A activity behind us Longer laterals leading to higher demand for d
Slide 8: Leveraging Nabors Existing Footprint and Expanding in Key Geographies
N A B O R S . C O M Leveraging Nabors Existing Footprint and Expanding in Key Geographies Nabors Industries and Parker Wellbore 8 Present in geographies comprising >75% of global oil/hydrocarbon production Strengthens our presence in: U.S. Saudi Arabia U.A.E. Canada India Kazakhstan Combined global
Slide 9: Improves Key Metrics, Plus Meaningful Synergies Opportunity
N A B O R S . C O M Improves Key Metrics, Plus Meaningful Synergies Opportunity Nabors Industries and Parker Wellbore 9 Nabors Combined(6) ($ millions) $892 $1,107 Estimated adjusted EBITDA(2) Leverage ratio 2.29x 1.93x (3) Debt to total capital 0.80x 0.71x (4) Interest coverage 4.38x 5.08x (5) Key
Slide 10: Growth in Nabors Drilling Solutions
N A B O R S . C O M Growth in Nabors Drilling Solutions Nabors Industries and Parker Wellbore 10 Note: Estimates based on Nabors and Parker forecasts, as well as Nabors consensus 2024E Total EBITDA as of 10/10/24. There can be no assurance we will meet such estimates. 2024E ($ millions) NDS Parker T
Slide 11: Parker Wellbore Financial Summary
N A B O R S . C O M Parker Wellbore Financial Summary Nabors Industries and Parker Wellbore 11 Note: Estimate based on Parker forecast with August actual results. There can be no assurance we will meet such estimates ($ millions) 2021 2022 2023 2024E Revenue: Surface & Tubulars $ 156 $ 253 $ 311 $ 3
Slide 12: Illustrative Collar Mechanics
N A B O R S . C O M $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 $550 4.0 4.2 4.4 4.6 4.8 5.0 5.2 5.4 $20 $30 $40 $50 $60 $70 $80 $90 $100 $110 $120 Implied Equity Value ($ millions) Number of Shares (millions) Share Price Number of Shares (millions) Implied Parker Value ($ millions) Illustrativ
Slide 13: Path to Margin Improvement across Businesses
N A B O R S . C O M Path to Margin Improvement across Businesses Nabors Industries and Parker Wellbore 13 Quail Tool margins accretive to NDS › Longer wellbore laterals › Recovery in the U.S. market › International expansion Opportunity to improve margins › Migrate to Nabors’ integrated casing runni
Slide 14: A Solid Combination for Success
N A B O R S . C O M A Solid Combination for Success Nabors Industries and Parker Wellbore 14 Financial Benefits Immediately accretive adjusted free cash flow Improves leverage metrics Substantial synergy opportunities Why Parker Wellbore? Key enabler of trend toward longer lateral wells Strong growt
Slide 15: Financial Definitions and Disclaimer
N A B O R S . C O M Financial Definitions and Disclaimer 15
Slide 16: Non-GAAP Definitions
N A B O R S . C O M 16 Non-GAAP Definitions ; Adjusted EBITDA – Adjusted EBITDA represents net income (loss) before income (loss) from discontinued operations, net of tax, income tax expense (benefit), investment income (loss), interest expense, other, net and depreciation and amortization. Adjusted
Slide 17: No Offer or Solicitation
N A B O R S . C O M No Offer or Solicitation This communication is not intended to and shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote of approval, nor shall there be any sale of securit
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