Nabors Industries Ltd. · NYSE:NBR
Nabors Industries — Q1 2018 Earnings Presentation
15 slides from Nabors Industries's earnings presentation, May 2, 2018
Slide 1: Forward-Looking Statements
2 We often discuss expectations regarding our future markets, demand for our products and services, and our performance in our annual, quarterly, and current reports, press releases, and other written and oral statements. Such statements, including statements in this document that relate to matters
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
3 Our businesses depend, to a large degree, on the level of spending by oil and gas companies for exploration, development and production activities. Therefore, sustained lower oil or natural gas prices that have a material impact on exploration, development or production activities could also mater
Slide 3: Recent Company Highlights
4 Recent Company Highlights Increased U.S. Drilling segment average daily margins to $8,171 from $6,444 in the previous quarter L48 Margins increased to $6,938 from $4,978, a 39% sequential increase Increased Drilling Solutions adjusted EBITDA by 17% sequentially and progressed towards achieving the
Slide 4: Recent Company Highlights
Recent Company Highli Increased U.S. Drilling segment average daily margins to $8,171 from $6,444 in the previous quarter + 48 Margins increased to $6,938 from $4,978, a 39% sequential increase Increased Drilling Solutions adjusted EBITDA by 17% sequentially and progressed towards achieving the Q4 2
Slide 5: Financial Summary
6 Financial Summary See reconciliations in the Appendix Diluted Earnings (Losses) Per Share from continuing operations ($000 except EPS) 1Q17 2Q17 3Q17 4Q17 1Q18 Operating Revenues $562,550 $631,355 $662,103 $708,277 $734,194 Adjusted EBITDA(1) 99,740 138,796 142,870 162,557 168,414 Adjusted Operati
Slide 6: Current Debt and Liquidity
Current Debt and Liquidity (As of March 31, 2018) (1) See reconciliations in the Appendix (2) Capitalization defined as Net Debt plus Shareholders’ Equity (3) Coverage defined as TTM Adjusted EBITDA / TTM Interest Expense (4) Leverage defined as Net Debt / TTM Adjusted EBITDA Note: Subtotals may not
Slide 7: Current Debt and Liquidity
Current Debt and Liquidity (As of March 31, 2018) High 1Q17 4Q17 1Q18 Change 3312 1134712181117 3iaang_ 1018 from (SMM's) 4Q17 Total Debt $4,750 $3,662 $4,028 $4,257 $229 Cash and ST Investments 494 229 365 394 28 Net Debt") $4,256 $3,433 $3,663 $3,863 $200 Shareholders’ Equity 5,811 3,178 2,912 2,7
Slide 8: Rig Fleet: 1Q18 Rig Utilization & Availability
Rig Fleet(1) 1Q18 Average Rigs Working Average Utilization U.S. Lower 48 AC > 1500HP 116 93 80% AC Others 72 9 13% SCR Rigs 24 3 13% U.S. Lower 48 Total 212 106 50% U.S. Offshore 14 3 19% Alaska 16 4 23% Canada 42 21 50% International 161 95 59% Subtotal 445 228 51% PACE®-R800 Rig Construction 1 Tot
Slide 9: Lower 48 Rig Utilization by Type
10 Walking Skidding Pad Not Pad Total Capable Capable Rigs Active Total Util. Active Total Util. Active Total Total Active Total Util. Active Total Util. AC 93 141 66% 6 20 30% 99 161 61% 5 27 19% 104 188 55% PACE® X 47 47 100% 0 0 0% 47 47 100% 0 0 0% 47 47 100% PACE® M800 6 6 100% 0 0 0% 6 6 100%
Slide 10: Nabors Drilling Operations
11 Nabors Drilling Operations As of March 31, 2018 Total = 219 116 US 114 Colombia 8 India 4 Italy 1 Saudi Arabia(1) 44 Venezuela 5 Algeria 3 Ecuador 0 Argentina 15 Oman 4 Kuwait 3 UAE 0 Canada 12 Kazakhstan 4 Mexico 2 Russia 0 (1) Includes offshore jackup rigs
Slide 11: Nabors Drilling Operations Map
Total = 219 man ‘olombia /enezuela azakhstan janaal india eria ‘uwait lexico Ineo al loco
Slide 12: Rig Margins & Activity
13 Rig Margins & Activity (1) Margin = gross margin per rig per day for the period. Gross margin is computed by subtracting direct costs from operating revenues for the period. 2Q17 3Q17 4Q17 1Q18 Margin(1) Avg. Rigs Working Margin(1) Avg. Rigs Working Margin(1) Avg. Rigs Working Margin(1) Avg. Rigs
Slide 13: Reconciliation of Adjusted EBITDA to Income (Loss) from Continuing Operations
14 Reconciliation of Adjusted EBITDA to Income (Loss) from Cont. Operations Before Income Taxes Adjusted EBITDA is computed by subtracting the sum of direct costs, general and administrative expenses and research and engineering expenses from operating revenues. Adjusted operating income (loss) is c
Slide 14: Reconciliation of Net Debt to Total Debt
15 Reconciliation of Net Debt to Total Debt Net debt is computed by subtracting the sum of cash 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 with GAAP. However
Slide 15: Reconciliation of Net Debt to Total Debt
Reconciliation of Net Debt to Total Debt computed by should not be used in isol of its operating segments accurately measures the analyze the company's perfo which is the nearest comparable btracting the sum of cash and shor-term investments from total d ion or as a substitute for the amounts report