Nabors Industries Ltd. · NYSE:NBR
Nabors Industries — Q2 2021 Earnings Presentation
18 slides from Nabors Industries's earnings presentation, Jul 28, 2021
Slide 1: Nabors Industries Ltd. 2Q Earnings Presentation
7/28/2021 NABORS INDUSTRIES LTD. 2Q Earnings Presentation 1
Slide 2: Forward Looking Statements
Forward Looking Statements We often discuss expectations regarding our future markets, demand for our products and • our ability to complete, and realize the expected benefits, of strategic transactions; services, and our performance in our annual, quarterly, and current reports, press releases, • c
Slide 3: Financial Summary
Financial Summary ($000 except EPS) 2Q20 3Q20 4Q20 1Q21 2Q21 Operating Revenues $533,931 $438,352 $443,396 $460,511 $489,333 Income (Loss) from Continuing Operations ($133,522) ($150,377) ($65,092) ($118,604) ($165,684) before Income Taxes Adjusted EBITDA(1) $153,825 $114,222 $108,114 $107,730 $117,
Slide 4: Recent Company Highlights
2Q 2021 adjusted Drilling Solutions EBITDA of $117M, Generated FCF of $68M continues growth of above expectations in 2Q 2021 new product offerings After funding $77M in and market penetration Drilling activity capital spending, including in Lower 48 strengthened throughout our markets $32M for SANAD
Slide 5: Positive Financial Progression
Positive Financial Progression Semiannual FCF has been trending upward since 1H 2017 (previous downturn) $1.4B Net Debt reduction from previous high in 1Q 2018 $MM Semiannual Free Cash Flow $B Net Debt $400 $4.5 $300 $4.0 $200 $3.5 $3.0 $1.4B $100 $2.5 $- $2.0 $(100) $1.5 $(200) $1.0 $(300) $0.5 $(4
Slide 6: Key Delevering Initiatives
Key Delevering Initiatives Asset Sales Warrants Free Cash Flow Optimizing our capital Innovative, non-dilutive, $128M in 1H 2021 allocation with sales full exercise with notes of $22M through 2Q would delever by 2021 approx. $538M 6
Slide 7: Key Strategic Initiatives
Key Strategic Initiatives Technology & Energy Operational Environment Transition Efficiency & Safety - Power management - Green fuels - Automation - Carbon capture - Energy Storage - Digitalization - Emissions reporting - Geothermal - Integrated platform - SigmaTM top drive - Geothermal Drilling & -
Slide 8: 2Q Rig Utilization and Availability
2Q Rig Utilization and Availability TOTAL U.S. LOWER 48 U.S. OFFSHORE ALASKA CANADA INTERNATIONAL RIG FLEET(1) 383 187 12 16 35 133 HIGH SPEC 110 2Q21 AVERAGE RIGS ON REV 146 64 3 3 8 68 HIGH SPEC 64 AVERAGE UTILIZATION 38% 34% 23% 18% 23% 51% HIGH SPEC 58% 8 (1) As of June 30, 2021 Note: Subtotals
Slide 9: Nabors' Commitment to Environmental Stewardship
Nabors’ Commitment to Environmental Stewardship Operating environmentally friendly rigs: 17 dual-fuel (blended natural gas & diesel) 2 using biodiesel 3 w/advanced energy mgmt. system (incl. 1 natural gas) 3 high-line (grid powered) 54 dual-fuel-capable rigs in Lower 48 Evaluating carbon capture, em
Slide 10: Smart Suite Products Growth
Smart SuiteTM Products Growth Millions # of Wells Drilled Footage Drilled • Over 20 Million Feet Drilled • 900+ Wells Drilled • 90% Customer Retention Rate* in Q2 2021 SmartNAVTM & SmartSLIDETM SmartDRILLTM Automation Solutions Commercialization Commercialization 10 *Number of active users that cont
Slide 11: Expanding Next-Gen Smart Suite Digital Solutions and Automation
Expanding Next-Gen Smart SuiteTM Digital Solutions and Automation Increased addressable market by 25% for Smart SuiteTM products through successful SmartNAVTM + SmartROSTM tools downlinking to Rotary Steerable. RigCLOUD® EDGE Active 1-5 Rigs Smart SuiteTM Applications Active 5+ Rigs 11
Slide 12: Automated Drilling Emissions Report through RigCLOUD Platform
Automated Drilling Emissions Report through RigCLOUD® Platform As part of decarbonization efforts, we’ve deployed digital tools to accurately measure and help achieve reduction targets • Improved accuracy & transparency of GHG emissions reporting on the rig site • Scalable offering for both Nabors a
Slide 13: Debt Maturity Profile as of June 30, 2021
Debt Maturity Profile as of June 30, 2021 $1,500 Total Debt lowered by $76M, Net Debt $1,250 $58M, during 2Q 2021 driven by positive FCF, reducing near term debt hurdle $1,000 $750 $500 558 855 $250 560 82 390 287 145 $0 2021 2022 2023 2024 2025 2026 2027 2028 (1) (1) Revolving Credit Facility Notes
Slide 14: Appendix
APPENDIX (\) NABORS
Slide 15: Reconciliation of Adjusted EBITDA to Income (Loss) from Continuing Operations before Income Tax
Reconciliation of Adjusted EBITDA to Income (Loss) from Continuing Operations before Income Tax Adjusted EBITDA represents income (loss) from continuing operations before income taxes, interest expense, depreciation and amortization, earnings (losses) from unconsolidated affiliates, investment incom
Slide 16: 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 17: Reconciliation of Free Cash Flow to Net Cash Provided by Operating Activities
Reconciliation of Free Cash Flow to Net Cash Provided by Operating Activities Free cash flow represents net cash provided by operating activities less cash used for investing activities. Free cash flow is an indicator of our ability to generate cash flow after required spending to maintain or expand
Slide 18: Contact Us
Contact Us: William C. Conroy NABORS CORPORATE SERVICES 515 W. Greens Road VP - Corporate Development and Investor Suite 1200 Relations Houston, TX 77067-4525 William.Conroy@nabors.com Kara K. Peak Director - Corporate Development and Investor Relations Kara.Peak@nabors.com nabors.com 18