Nabors Industries Ltd. · NYSE:NBR
Nabors Industries — C&J Energy Services — Q3 2014 Earnings Presentation
21 slides from Nabors Industries's earnings presentation, Oct 22, 2014
Slide 1: 3Q14 Earnings Presentation
3Q14 Earnings Presentation October 22, 2014 Presenters: Anthony G. Petrello Chairman, President & Chief Executive Officer William Restrepo Chief Financial Officer
Slide 2: Forward-Looking Statements
Forward-Looking Statements We often discuss expectations regarding our markets, demand for our products and services, and our future performance in our annual and quarterly reports, press releases, and other written and oral statements. Such statements, including statements in this document incorpor
Slide 3: Important Additional Information
Important Additional Information 3 In connection with the proposed transactions, Nabors Red Lion Limited (which will be renamed C&J Energy Services Ltd. as of the closing of the proposed transaction) (“Red Lion”) has filed with the SEC a registration statement on Form S-4 that includes a preliminary
Slide 4: Recent Highlights
4 Recent Highlights
Slide 5: Financial Summary
5 Financial Summary ($000’s except EPS) 3Q13 4Q13 1Q14 2Q14 3Q14 Revenue $1,548,965 $1,605,390 $1,587,173 $1,616,405 $1,810,911 EBITDA 439,337 437,242 391,168 416,280 489,958 Operating Income 165,893 159,584 109,041 133,460 203,377 Diluted EPS(1) ($0.30)(2) $0.42 $0.16 $0.21(3) $0.19(4) (1) Diluted
Slide 6: Combination of Nabors Completion & Production Services with C&J Energy Services
Combination of Nabors Completion & Production Services with C&J Energy Services 6 > Update S-4 Filed (Sept. 29) Expected close around year end > Combination creates: 5th largest stimulation fleet in North America Largest fluids management fleet in North America 2nd largest workover/well-servicing fl
Slide 7: Improving Financial Flexibility
High 3/31/12 2Q14 6/30/14 Current 9/30/14 Change High-3Q14 Change 2Q14-3Q14 ($MM's) Total Debt $4,773 $3,956 $4,255 ($518) $299 Cash and ST Investments 494 486 465 (29) (21) Net Debt $4,279 $3,470 $3,791 ($488) $321 Net Debt to Capitalization(1) 42.4% 36.4% 39.4% (3.4%) 3.0% Coverage(2) 7.8x 8.7x 9.
Slide 8: Significant Rig Awards
Significant Rig Awards 8 Date Country/Type Awards 2012 U.S. PACE®-X 17 1Q13 U.S. PACE®-X 2 2Q13 U.S. PACE®-X 2 Argentina 6 Kurdistan 2 Kazakhstan 1 3Q13 U.S. PACE®-X 8 Saudi Arabia 11 Mexico 2 1Q14 U.S. PACE®-X 3 2Q14 U.S. PACE®-X 8 U.S. PACE®-X 3 3Q14 Saudi Arabia 4 Kazakhstan 2 2012-2014 Significa
Slide 9: Recent Asset Sales
Recent Asset Sales > 3Q14 Asset Sales Alaska E&P 2 Barge Rigs > 2Q14 Asset Sales 3 Barge Rigs 1 Jack-Up > Cash proceeds from all sales Received: $81 Million (as of 3Q14) Scheduled: $27 Million Total: $108 Million Does not include overriding royalty interest and carried working interest associated wi
Slide 10: Drilling & Rig Services
Drilling & Rig Services @ NABORS 10
Slide 11: 3Q14 Rig Utilization & Availability
3Q14 Rig Utilization & Availability 11 Rig Fleet(1) 3Q14 Rig Years Average Utilization U.S. Lower 48 AC 160 152 95% Legacy 114 50 44% U.S. Lower 48 Total 274 202 73% U.S. Offshore 18 9 58% Alaska 19 5 26% Canada 64 34 53% International 151 130 86% Subtotal 526 380 72% PACE®-X Construction(2) 7 Intl.
Slide 12: U.S. Rig Utilization Power Type and Pad Capability
U.S. Rig Utilization Power Type and Pad Capability 12 As of 9/30/14 Walking Skidding Pad Capable Not Pad Capable Total Working Total Util. Working Total Util. Total Working Total Util. AC 98 103 95% 18 18 100% 96% 37 39 95% 96% SCR 5 6 83% 10 12 83% 83% 31 70 44% 52% Mech 3 26 12% 12% Grand Total 10
Slide 13: PACE-X Rig Deployments & Rig Years
0 5 10 15 20 25 30 35 40 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 Deployments Cumulative Deployments Cumulative Rig Year PACE-X Rig Deployments & Rig Years 13 > PACE®-X rig economic relevance now tracking deployments 26 PACE®-X Rig Years through 3Q14 E
Slide 14: Drilling Ahead: Nabors' Global Market Study North America Summary
Drilling Ahead Next 5 Years Nabors’ Global Market Study North America Summary 14 > 2-4% - projected NAM total rig demand CAGR > 5-7% - projected “High Spec” rig demand CAGR > 10-12% - projected “Ultra High Spec” rig demand CAGR Pad Drilling 2010A 2013A 2018E % of Wells Drilled on Pads 20% 50% 70% Av
Slide 15: Current International Working Rigs
Current International Working Rigs 15 Algeria 10 Ecuador 6 Kurdistan 2 Romania 1 Angola 1 India 3 Kuwait 2 Russia 6 Argentina 22 Iraq 1 Mexico 8 Saudi Arabia 36 Colombia 8 Italy 1 Oman 5 Venezuela 5 Congo 1 Kazakhstan 2 PNG 2 Yemen 2 Total 125 As of 9/30/14
Slide 16: Completion & Production Services
16 Completion & Production Services
Slide 17: U.S. Completion & Production Services Fleet
U.S. Completion & Production Services Fleet Region Rigs Frac Crews Trucks Frac Tanks CTU Cementing Wireline SWD Western 181 539 1,785 15 12 Rockies 77 7 60 322 2 9 10 2 Mid-Con 34 1 97 448 8 11 5 Northeast 7 5 104 597 40 15 West Texas 97 4 326 1,274 3 4 3 12 South Texas 24 3 208 494 7 3 3 Ark-La-Tex
Slide 18: Outlook and Summary
18 Outlook and Summary
Slide 19: Key Takeaways
Key Takeaways 19 > U.S. Drilling benefitting from PACE®-X deployments and tight high-spec rig market > International benefitting from new rig deployments, re-pricing, and additional contract awards > Larger high-impact, global opportunity set, relative to U.S. peers > Multiple initiatives in process
Slide 20: Appendix
20 Appendix
Slide 21: Nabors Global Infrastructure Margins and Activities
21 Nabors Global Infrastructure Margins and Activities 4Q13 1Q14 2Q14 3Q14 Drilling Margin (1) Rig Yrs Margin (1) Rig Yrs Margin (1) Rig Yrs Margin (1) Rig Yrs U.S. Drilling $11,133 198.4 $11,073 206.6 $11,380 215.3 $12,756 216.0 Canada 11,478 32.5 11,452 43.8 10,034 21.6 9,663 34.3 International 15