Nabors Industries Ltd. · NYSE:NBR
Nabors Industries — Q3 2017 Earnings Presentation
19 slides from Nabors Industries's earnings presentation, Oct 25, 2017
Slide 1: Forward-Looking Statements
Forward-Looking Statements 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 documen
Slide 2: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation refers to certain “non-GAAP” financial measures, such as adjusted EBITDA, adjusted operating income (loss) and net debt. The components of these non-GAAP measures are computed by using amounts that are determined in accordance with accounting principles
Slide 3: Recent Company Highlights
Recent Company Highlights • Signed an agreement in August to acquire all the issued and outstanding common shares of Tesco Corporation in an all-stock transaction Acquired Robotic Drilling Systems AS ("RDS") in September, a provider of automated tubular and tool handling equipment for the onshore an
Slide 4: Financial Overview
Financial Overview '1111NABORS 5
Slide 5: Financial Summary
Financial Summary ($000 except EPS) 3Q16 4Q16 1Q17 2Q17 3Q17 $538,948 $562,550 $631,355 $662,103 Operating Revenues $519,729 Adjusted EBITDA 148,739 146,021 99,740 138,796 142,870 Adjusted Operating Income (Loss) (71,974) (70,166) (103,932) (69,294) (74,205) GAAP Diluted EPS(1) (1.17)(2) (0.35) (0.5
Slide 6: Debt and Liquidity
Debt and Liquidity As of September 30, 2017 Liquidity (at September 30, 2017) • Cash & Available Capacity: $1,982 1. Capitalization defined as Net Debt plus Shareholders’ Equity 2. Coverage defined as TTM Adjusted EBITDA / TTM Interest Expense 3. Leverage defined as Net Debt / TTM Adjusted EBITDA No
Slide 7: Drilling and Rig Services
Drilling and Rig Services '1111NABORS 8
Slide 8: 3Q17 Rig Utilization & Availability
3Q17 Rig Utilization & Availability Rigs Working Utilization (1) As of September 30th, 2017 Note: Subtotals may not foot due to rounding 9 U.S. Lower 48 AC > 1500HP ACOthers SCR Rigs Rig Fleet(1) 3Q17 AverageAverage 111 73 24 8678% 1217% 313% U.S. Lower 48 Total U.S. Offshore Alaska Canada Internati
Slide 9: Lower 48 Rig Utilization by Type
Lower 48 Rig Utilization by Type As of September 30, 2017 Rigs 10 Walking Skidding Pad Capable Not Pad Capable Total Active Total Util. 61% 98% 100% 71% 67% 0% 13% 8% 0% Active Total Util. 35% 0% 0% 0% 100% 33% 38% 0% 60% Active Total Total 58% 98% 100% 71% 73% 20% 18% 6% 38% Active Total Util. 21%
Slide 10: Nabors Working Rigs
Nabors Working Rigs As of September 30, 2017 11 Total = 209 Mexico1 PNG1 Italy1 Russia0 Algeria4 Kuwait3 Ecuador2 India2 Colombia8 Venezuela5 Oman4 Kazakhstan4 US105 Saudi Arabia41 Argentina15 Canada13
Slide 11: Tesco Corporation Acquisition
Tesco Corporation Acquisition Leveraging Nabors as the Performance Driller of Choice Top Performance Driller of Choice Top Equipment Manufacturer & Tubular Running Services Accelerates Technology Integration & Automation Global Player In Tubular Running Services Fit-For-Purpose Products and Services
Slide 12: RDS Acquisition
RDS Acquisition Advanced Robotics Technology for Automation Enhancement • • • • RDS will bring game-changing robotic capabilities to Canrig and Nabors’ rigs Key existing relationships with offshore drillers provide ready sales pipeline Technology will improve operational efficiency and significantly
Slide 13: PACE-M1000 - The SMARTRig
PACE®-M1000 - The SMARTRigTM Setting the New Gold Standard for Shale Drilling 1• Pad Optimal Capability With Automated Walking System 2• Side-SaddleTM Configuration 4 3• Hydraulic Raised Mast & Substructure 4• Hook Load 1,000,000 lbs 6 5• Setback 900,000 lbs 6• Racking Capacity 30,000ft of 5-7/8” Dr
Slide 14: PACE-X Quad Drilling Design
PACE®-X Quad Drilling Design Unique Design to Handle Stands of Four Drill Pipes vs. Three Decreases number of connections by 33% • Extends duration where block can travel at full speed • Example for a 3-well pad for customer: – 900+ less connections – 43~ hours saved Allows for running double joints
Slide 15: PACE-X Quad Drilling Design
PACE®-X Quad Drilling Design Unique Design to Handle Stands of Four Drill Pipes vs. Three _ + Decreases number of connections by 33% + Extends duration where block can travel at full speed + Example for a 3-well pad for customer: —900+ less connections —43~ hours saved + Allows for running double jo
Slide 16: Rig Margins & Activity
Rig Margins & Activity Working (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. 17 Drilling 4Q16 1Q17 2Q17 3Q17 Margin(1) Avg. Rigs Working Margin(1) Avg. Rigs Working Margin(1) Avg. Rigs Working Ma
Slide 17: Reconciliation of Adjusted EBITDA to Income (Loss) from Cont. Operations Before Income Taxes
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 comp
Slide 18: Reconciliation of Net Debt to Total Debt
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, m
Slide 19: Reconciliation of Net Debt to Total Debt
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, m