Nabors Industries Ltd. · NYSE:NBR
Nabors Industries — Q4 2024 Earnings Presentation
28 slides from Nabors Industries's earnings presentation, Feb 13, 2025
Slide 1: 4Q 2024 Earnings Presentation
4Q 2024 Earnings Presentation NABORS INDUSTRIES February 12, 2024
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, • potential long-lived asset impairments quarterly, and current reports, press releases, and other written and oral statem
Slide 3: The Industry's Most Innovative Technology
NABORS INDUSTRIES The Industry’s Most Innovative Technology FY 2024 Adjusted EBITDA by Segment Working in tandem to generate superior drilling performance 3% 13% Drilling Operations 43% Integrated Drilling Drilling and Energy Solutions Technology Transition Solutions 42% Rig Technologies U.S. Drilli
Slide 4: 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 5: Recent Highlights
NABORS INDUSTRIES Recent Highlights Continued progress toward Parker Wellbore acquisition Deployed 4 rigs in Algeria, 4 rigs in Saudi Arabia and 2 rigs in Argentina in FY 2024; in 1Q 2 deployments planned in Saudi Arabia, 1 in Kuwait and 1 in Colombia Nabors International Drilling adj. daily margins
Slide 6: Five Key Value Drivers
Five 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 6
Slide 7: Focus on Improving International Rig Economics
1 Resilience Leading to Growth in Our International Segment Focus on Improving International Rig Economics Daily Rig Revenue(1) Daily Adjusted Gross Margin(1) $50,000 $20,000 $40,000 $16,000 Growing $30,000 $12,000 International results as we expand our fleet $20,000 $8,000 $10,000 $4,000 $- $- (1)
Slide 8: 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 $40,000 Working to $15,000 enhance both $30,000 the top and $10,000 bottom line $20
Slide 9: Significant Rig Growth Trajectory in Saudi Arabia
1 Resilience Leading to Growth in Our International Segment Significant Rig Growth Trajectory in Saudi Arabia SANAD Estimated Average Rig Count Potential* 60 Newbuild Program Generating Revenue 40 • To date 15 rigs have been awarded by Saudi Aramco; 9 have been deployed • Total of 50 rigs to be depl
Slide 10: 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* Potential negotiations and reactivation 110 Renewal Working Gap Release Awarded/Contracted 105 Actively pursuing 100
Slide 11: 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 12: Resilient Performance in Volatile Commodity Market
2 Performance Excellence In The Lower-48 Resilient Performance in Volatile Commodity Market L48 Drilling L48 Drilling Adjusted Daily Revenue(1) Daily Gross Margin(1) $40,000 $20,000 $30,000 $15,000 Driving greater $20,000 $10,000 value capture $10,000 $5,000 $0 $0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Slide 13: 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 % $350 60% $300 50% Adjusted gross $250 40% margin of $200 51% $150 30% For FY2024 20% $100 10% $50 • 54% for 4Q 2
Slide 14: NDS Targeting Third Party and International Markets
3 Improving Outlook For Our Technology & Innovation NDS Targeting Third Party and International Markets Revenue Growth since Inception FY 2024 Revenue NDS - International 1200% International 900% 41% U.S. - NBR Rigs 600% 40% 300% 0% 2016 2017 2018 2019 2020 2021 2022 2023 2024 NDS - U.S. Third Party
Slide 15: Reduced Flat Time on Multiple Wells in Argentina with Nabors Integrated MPD
3 Improving Outlook For Our Technology & Innovation Reduced Flat Time on Multiple Wells in Argentina with Nabors Integrated MPD With two operators in the Vaca Muerta — one using a Nabors rig with MPD Related Flat Time Reduction Analysis integrated MPD and the other using conventional MPD — Nabors de
Slide 16: Significant Headway Improving Leverage in 2024
4 Progress on Our Commitment to De-lever Significant Headway Improving Leverage in 2024 In July, issued $550 million of 8.875% Senior Guaranteed Notes due 2031 $ Subsequently redeemed $556 million notes due 2026 Weighted average maturity of outstanding notes now stands at 4.3 years Earlier,
Slide 17: Our Energy Transition and Sustainability Strategy
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 technologies technologies N A B O R S . C O M 17
Slide 18: 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 19: Geothermal Market Technology Advancements
5 Leading in Sustainability and the Energy Transition Geothermal Market Technology Advancements Nabors and its predecessor entities have been continuously innovating in the energy sector for over 100 years Innovative Drilling Technologies Reducing cost per energy-unit produced by using and combining
Slide 20: Appendix
(i) NABORS Appendix
Slide 21: Rig Utilization and Availability, December 31, 2024
Rig Utilization and Availability, December 31, 2024 U.S. Lower-48 U.S. Offshore Alaska International Total High Spec(2) Rig Fleet(1) 311 110 12 15 132 Rigs on Revenue(1) 156 64 2 5 85 Utilization(1) 50% 58% 17% 33% 64% (1) As of December 31, 2024 (2) Excludes non-high spec rigs in the Lower 48 N A B
Slide 22: 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, other, net and depreciation and amortization. Adjusted EBITDA is a non-GAAP financial measure and should not be used in is
Slide 23: Reconciliation of U.S. Drilling Segment Adjusted Gross Margin to Adjusted 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. Three
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 (Loss) by Segment
Reconciliation of Adjusted EBITDA by Segment to Adjusted Operating Income (Loss) by Segment Adjusted EBITDA by segment represents adjusted income (loss) plus depreciation and Three (In thousands) amortization. Months Ended December 31, 2024 Other U.S. International Drilling Rig reconciling Total Dri
Slide 26: 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 27: Disclaimer
NABORS INDUSTRIES Disclaimer 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 o
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.COM NABORS CORPORATE SERVICES 515 W. Greens Road Suite 1200 Houston,