Nabors Industries Ltd. · NYSE:NBR
Nabors Industries — C&J Energy Services — Q4 2014 Earnings Presentation
18 slides from Nabors Industries's earnings presentation, Mar 3, 2015
Slide 1: 4Q14 Earnings Presentation
4Q14 Earnings Presentation March 3, 2015 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 proxy state
Slide 4: Recent Highlights
Recent Highlights i) NABORS 4
Slide 5: Financial Summary
5 Financial Summary ($000’s except EPS) 4Q13 1Q14 2Q14 3Q14 4Q14 Revenue $1,605,390 $1,587,173 $1,616,405 $1,810,911 $1,783,407 Adjusted EBITDA 437,242 391,168 416,280 489,958 445,692 Operating Income 159,584 109,041 133,460 203,377 152,120 Diluted EPS(1) $0.42 $0.16 $0.21(2) $0.34(3) ($3.06)(4) (1)
Slide 6: Combination of Nabors Completion & Production Services with C&J Energy Services
Combination of Nabors Completion & Production Services with C&J Energy Services 6 > Update S-4 Filed, became effective Febuary 13, 2015 C&J shareholder special meeting to approve transaction set for March 20, 2015 Expected to close the week of March 23, 2015 > Combination creates: 5th largest stimul
Slide 7: Improving Financial Flexibility
High 3/31/12 3Q14 9/30/14 Liquidity 12/31/14 Change 4Q14 from High Change 3Q14 to 4Q14 ($MM's) Total Debt $4,773 $4,255 $4,355 ($418) $100 Cash and ST Investments 494 465 536 42 71 Net Debt $4,279 $3,791 $3,819 ($460) $28 Net Debt to Capitalization(1) 42.4% 39.3% 43.8% 1.4% 4.5% Coverage(2) 7.8x 9.6
Slide 8: Drilling & Rig Services
Drilling & Rig Services i) NABORS 8
Slide 9: 4Q14 Rig Utilization & Availability
4Q14 Rig Utilization & Availability 9 Rig Fleet(1) 4Q14 Rig Years Average Utilization U.S. Lower 48 AC 165 154 93% Legacy(2) 88 45 51% U.S. Lower 48 Total 253 198 78% U.S. Offshore 16 8 50% Alaska 19 6 32% Canada 57 37 65% International 153 121 79% Subtotal 498 370 74% PACE®-X Construction(3) 17 Int
Slide 10: 4Q14 U.S. Rig Utilization Power Type and Pad Capability
4Q14 U.S. Rig Utilization Power Type and Pad Capability 10 As of 12/31/14 Walking Skidding Pad Capable Not Pad Capable Total Working Total Util. Working Total Util. Total Working Total Util. AC 99 109 91% 17 18 94% 91% 30 38 79% 88% SCR 4 6 67% 7 11 64% 65% 27 71 38% 43% Mech 1 26 4% 4% Grand Total
Slide 11: PACE-X Rig Deployments & Rig Years
0 5 10 15 20 25 30 35 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 Deployments Cumulative Deployments Cumulative Rig Years PACE-X Rig Deployments & Rig Years 11 > 30 PACE®-X Rig Years through 4Q14
Slide 12: 4Q14 International Working Rigs
4Q14 International Working Rigs 12 Algeria 10 Ecuador 5 Kurdistan 2 Romania 1 Angola 1 India 3 Kuwait 2 Russia 6 Argentina 22 Iraq 1 Malaysia 1 Saudi Arabia 40 Bahrain 1 Italy 1 Mexico 7 Venezuela 5 Colombia 8 Kazakhstan 2 Oman 5 Yemen 2 Congo 1 PNG 2 Australia 1 Total 128 As of 12/31/14
Slide 13: Completion & Production Services
13 Completion & Production Services
Slide 14: U.S. Completion & Production Services Fleet
U.S. Completion & Production Services Fleet Region Rigs Frac Crews Trucks Frac Tanks CTU Cementing Wireline SWD Western 181 538 1,924 15 12 2 Rockies 76 7 61 322 2 9 10 2 Mid-Con 35 1 96 447 8 11 5 Northeast 7 4 100 597 38 13 West Texas 106 5 328 1,271 3 4 6 12 South Texas 25 2 218 492 7 3 Ark-La-Te
Slide 15: Outlook and Summary
15 Outlook and Summary
Slide 16: Key Takeaways
Key Takeaways 16 > Focus efforts to balance current market pricing and utilization, while adjusting our cost structure and capital spending as necessary. > Pursue opportunities to add rigs in high-spec drilling markets around the globe at attractive risk-adjusted rates of return > Invest in technolo
Slide 17: Appendix
17 Appendix
Slide 18: 4Q14 Margins & Rig Activities
18 4Q14 Margins & Rig Activities 1Q14 2Q14 3Q14 4Q14 Drilling Margin (1) Rig Yrs Margin (1) Rig Yrs Margin (1) Rig Yrs Margin (1) Rig Yrs U.S. Drilling $11,073 206.6 $11,380 215.3 $12,756(2) 216.0 $11,525 212.2 Canada 11,452 43.8 10,034 21.6 9,663 34.3 9,889 36.9 International 13,811 129.8 14,124 12