Nabors Industries Ltd. · NYSE:NBR
Nabors Industries — Q1 2025 Earnings Presentation
31 slides from Nabors Industries's earnings presentation, Apr 30, 2025
Slide 1: 1Q 2025 Earnings Presentation
1Q 2025 Earnings Presentation NABORS INDUSTRIES April 29, 2025
Slide 2: Forward-Looking Statements
NABORS INDUSTRIES Forward-Looking Statements We often discuss expectations regarding our future markets, demand for our products and services, and our performance in our annual, • the possibility of changes to U.S. trade policies and regulations including the imposition of trade embargoes or sanctio
Slide 3: The Industry's Most Innovative Technology
NABORS INDUSTRIES The Industry’s Most Innovative Technology 1Q 2025 Adjusted EBITDA by Segment* Working in tandem to generate superior drilling performance 2% 16% Drilling 36% Operations Integrated Drilling Drilling and Energy Solutions Technology Transition Solutions 45% Rig Technologies U.S. Drill
Slide 4: Our Businesses Offer Unique Vertical Integration
NABORS INDUSTRIES Our Businesses Offer Unique Vertical Integration International U.S. Drilling Rig Drilling Drilling Solutions (NDS) Technologies Deploying best fit-for-purpose A leading provider of high- Utilizing the rig as a platform Canrig equipment & rigs in key markets specification rigs to de
Slide 5: Addition of Parker Wellbore Drives Significant Benefits
Nabors Industries and Parker Wellbore Addition of Parker Wellbore Drives Significant Benefits Incremental Expands Nabors Adds Quail Enhances scale Strengthens adjusted FCF Drilling Solutions Tools to NDS with growing international and improves (NDS) portfolio franchise presence leverage metrics Esti
Slide 6: Parker Folds Neatly into Nabors' Strategy
Nabors Industries and Parker Wellbore Parker Folds Neatly into Nabors’ Strategy Nabors Drilling Nabors Drilling Solutions v Nabors Owned Rigs Operations & Surface & Tubular Rentals Casing & Tubular Running Maintenance • Land rigs • Customer-owned or third-party rigs • Drill pipe & pressure control r
Slide 7: Active Owned Rigs in Four Key Regions
Nabors & Parker Active Rigs Worldwide Active Owned Rigs in Four Key Regions* 72 USA Active rigs in the U.S., with almost half in West Texas and another quarter in the Bakken. 50 KSA A key growth region with 50 active rigs operated by SANAD, our JV with Saudi Aramco. 22 LATAM Argentina is the leading
Slide 8: Drivers of Growth
Drivers of Growth Focused on Advanced Technology to Drive Solutions Capitalizing on Driving healthy Expanding our Innovating Reducing carbon global expansion margins in customer base advances in intensity Lower 48 Drilling drilling Leveraging our Demonstrating Developing Setting the Energy
Slide 9: Recent Highlights
NABORS INDUSTRIES Recent Highlights Completed the Parker Wellbore acquisition in 1Q Deployed 1 rig in Saudi Arabia and 1 rig in Colombia in 1Q; in 2Q 2 deployments planned in Saudi Arabia, 3 in Kuwait and 1 restart in Mexico Nabors International Drilling daily adj. margin of >$17,400 in 1Q; Lower 48
Slide 10: Key Value Drivers
Key Value Drivers 1 2 3 4 5 Expanding & Performance Advancing Focused on our Leading in enhancing our excellence in the technology & commitment to Sustainability International Lower 48 innovation with de-lever and the Energy business demonstrated Transition results N A B O R S . C O M 10
Slide 11: Focus on Improving International Rig Economics
1 Resilience Leading to Growth in Our International Segment Focus on Improving International Rig Economics International Drilling International Drilling Daily Rig Revenue(1) Daily Adjusted Gross Margin(1) $50,000 $20,000 $40,000 $16,000 Expanding $30,000 $12,000 International margins as we grow our
Slide 12: Focus on Improving International Rig Economics
1 Resilience Leading to Growth in Our International Segment Focus on Improving International Rig Economics International Drilling International Drilling Daily Revenue(1) Adjusted Daily Gross Margin(1) $50,000 $20,000 $15,000 Enhancing both the top and bottom line $40,000 $10,000 $5,000 $30,000 $0 1Q
Slide 13: Strategic Newbuild Program Leading to Significant Financial Growth
1 Resilience Leading to Growth in Our International Segment Strategic Newbuild Program Leading to Significant Financial Growth Illustrative Financial Results for ⟩ High-impact Growth Initiative in Saudi Arabia: A unique, large-scale $800 SANAD Newbuilds $600 expansion project in the premier global m
Slide 14: Significant Opportunity for Additional International Rigs through YE 2025
1 Resilience Leading to Growth in Our International Segment Significant Opportunity for Additional International Rigs through YE 2025 International Drilling Opportunity Set Rig Count* Working 110 105 Restart Release Awarded/Contracted Suspensions Actively pursuing 100 Releases multiple 95 Wind- 1 Ri
Slide 15: L48 Daily Revenue and Margin above All Prior Cycle Highs
2 Performance Excellence In The Lower-48 L48 Daily Revenue and Margin above All Prior Cycle Highs Daily Rig Revenue(1) Adjusted Daily Gross Margin(1) $40,000 $20,000 $32,000 $16,000 $24,000 $12,000 Strong daily revenue and $16,000 $8,000 margins leading to free cash flow $8,000 $4,000 $- $- (1) Dail
Slide 16: Delivering Results in a Challenging Market
2 Performance Excellence In The Lower-48 Delivering Results in a Challenging Market L48 Drilling Adjusted L48 Drilling Daily Gross Margin(1) Daily Revenue(1) $20,000 $40,000 $15,000 $30,000 Navigating market $20,000 $10,000 volatility with pricing discipline $10,000 $5,000 $0 $0 1Q 2Q 3Q 4Q 1Q 2Q 3Q
Slide 17: NDS Margin Gains Fueled by Increasing Penetration and Improving Service-line Mix
3 Improving Outlook For Our Technology & Innovation NDS Margin Gains Fueled by Increasing Penetration and Improving Service-line Mix NDS Revenue, Adjusted EBITDA & Adjusted Gross Margin % $400 60% Adjusted gross $300 45% margin of 53% $200 30% For 1Q 2025 $100 15% $- 0% Revenue Adjusted EBITDA Adjus
Slide 18: NDS Portfolio Demonstrating Value, Globally
3 Improving Outlook For Our Technology & Innovation NDS Portfolio Demonstrating Value, Globally Revenue Growth since Inception NDS - International 1500% 1Q 2025 Revenue 1000% 500% U.S. 57% 0% 2016 2017 2018 2019 2020 2021 2022 2023 2024 1Q'25* International 43% NDS - U.S. 400% 300% 200% 100% 0% 2016
Slide 19: Canadian Third-Party Operator Achieves >30% Faster Connection Times
3 Improving Outlook For Our Technology & Innovation Canadian Third-Party Operator Achieves >30% Faster Connection Times with Nabors Automation Demonstrated Results – Significant improvement in connection times Manual vs. SmartDRILL Connection Times Drilling Contractor Operator -37% -22% Nabors Drill
Slide 20: Executing on Leverage Optimization
4 Progress on Our Commitment to De-lever Executing on Leverage Optimization At closing in March, Parker held $178 million of gross debt and $85 million in cash Post-close, transitioned the debt to Nabors’ revolving credit facility, resulting in immediate savings by eliminating higher interest lo
Slide 21: Our Energy Transition and Sustainability Strategy
5 Leading in Sustainability and the Energy Transition Our Energy Transition and Sustainability Strategy Improve Collaborate Partner in Invest in Nabors’ with peers to adjacent companies environmental reduce carbon markets that developing footprint output in our leverage our green industry talent and
Slide 22: Nabors Initiatives to Lower Emissions
5 Leading in Sustainability and the Energy Transition Nabors Initiatives to Lower Emissions Electrification Engine Optimization Pursuing Energy Efficient Lighting Multiple Decarbonization Pathways Emissions Monitoring Energy Storage* Green Fuels* *Note: Energy Storage and Green Fuels are under devel
Slide 23: Appendix
(i) NABORS Appendix
Slide 24: Rig Utilization and Availability, March 31, 2025
Rig Utilization and Availability, March 31, 2025 U.S. Lower-48 U.S. Offshore Alaska International Total High Spec(2) Rig Fleet(1) 318 110 16 17 135 Rigs on Revenue(1) 155 62 3 7 83 Utilization(1) 49% 56% 17% 41% 61% (1) As of March 31, 2025 (2) Excludes non-high spec rigs in the Lower 48 N A B O R S
Slide 25: Nabors 1Q 2025 EBITDA by Segment
Nabors Industries and Parker Wellbore Nabors 1Q 2025 EBITDA by Segment Nabors Parker* Combined* Lower 48 ⟩ $72.2 million ⟩ $72.2 million Alaska and U.S. Offshore ⟩ $19.7 million ⟩ $0.8 million ⟩ $20.5 million International ⟩ $114.5 million ⟩ $1.0 million ⟩ $115.5 million Drilling Solutions ⟩ $31.3 m
Slide 26: Reconciliation of Non-GAAP Financial 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 bargain purchase, other, net and depreciation and amortization. Adjusted EBITDA is a non-GAAP financial measure an
Slide 27: Reconciliation of U.S. Drilling Segment Adjusted Gross Margin
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. Three
Slide 28: 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 29: Reconciliation of Adjusted EBITDA by Segment to Adjusted Operating Income
Reconciliation of Adjusted EBITDA by Segment to Adjusted Operating Income (Loss) by Segment Adjusted EBITDA by segment represents adjusted income (loss) plus depreciation andThree Months Ended March 31, 2025 amortization. Other U.S. International Drilling Rig reconciling Tot al Drilling Drilling Sol
Slide 30: Reconciliation of Adjusted Free Cash Flow to Net Cash Provided by Operating Activities
Reconciliation of Adjusted Free Cash Flow 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. Management believes that adjusted free cash flow is an im
Slide 31: 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.COM NABORS CORPORATE SERVICES 515 W. Greens Road Suite 1200 Houston,