Nabors Industries Ltd. · NYSE:NBR
Nabors Industries — C&J Energy Services — Merger or Acquisition (November 2014)
19 slides from Nabors Industries's merger presentation, Nov 12, 2014
Slide 1: November Investor Presentation
November Investor Presentation
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 -4 that includes a The registration statement has not been declared effective by the SEC, and the definitive joint proxy statement/prospe
Slide 4: 2012: Refocusing our Business - Back to the Basics
2012: Refocusing our Business > Back to the Basics Streamlining the business Strengthening balance sheet and financial flexibility > Drilling Ahead Instituting new strategic direction Enhancing operational excellence Driving technology and innovation 4
Slide 5: Back to the Basics: Streamlining the Business
Back to the Basics Streamlining the Business 5 > Restoring financial flexibility Non-core asset sales E&P assets GOM barge rigs Peak Oilfield Services Debt buyback Refinanced high-cost debt > Stock buyback of $250mm > Dividend instituted and increased > Pending merger with C&J Energy Services
Slide 6: Benefits from NCPS and C&J Energy Merger
Back to the Basics Streamlining the Business > Benefits from NCPS and C&J Energy Merger Retain 53% equity interest in combined entity Create critical mass with capable management Capitalize on technology and increased scale Facilitate international expansion > Benefits to Nabors Enhance liquidity by
Slide 7: Nabors
Drilling Ahead @) NABORS
Slide 8: Largest and Most Advanced Land Driller
Drilling Ahead Largest and Most Advanced Land Driller > Total Marketable Drilling Fleet of 545 Rigs 501 Land Drilling Rigs Largest International Land Driller (135 total rigs) Largest North American Land Driller (366 total rigs) 44 Offshore Rigs Largest Fleet of Platform Rigs (37 rigs) > Advanced Dri
Slide 9: Unmatched Global Position & Opportunity Set
Drilling Ahead Unmatched Global Position & Opportunity Set > Global footprint with leading position in attractive markets with high-margins > Fungible asset base provides competitive advantage Transferred 20 underutilized rigs from the Lower 48 to higher-return International markets since 1Q13 9 * B
Slide 10: Established infrastructure in 20+ countries
Drilling Ahead Unmatched Global Position & Opportunity Set > Established infrastructure in 20+ countries > Contractor of choice for the most challenging drilling projects Saudi deep gas PNG Exxon project Deepwater platforms Alaska North Slope > Proven technology that improves horizontal and directio
Slide 11: Project Xcellence ROCE and Performance Improvement Opportunities
Drilling Ahead Project Xcellence ROCE and Performance Improvement Opportunities 11 > Near-term 7-Point Improvement in PACE®-X ROCE Growing the Numerator Value Pricing and Pricing Discipline Operating Expenses Improving the Denominator Capital Cost Reduction > Repricing Material increases achieved in
Slide 12: Multiple High Impact Deployments in Near-Term
Drilling Ahead: 2014 vs 2008 Multiple High Impact Deployments in Near-Term 12 Date Country/Type Awards Deployed 2012 U.S. PACE®-X 17 17 1Q13 U.S. PACE®-X 2 2 2Q13 U.S. PACE®-X 2 2 Argentina 6 6 Kurdistan 2 2 Kazakhstan 1 1 3Q13 U.S. PACE®-X 8 8 Saudi Arabia 11 7 Australia 1 0 Malaysia 1 0 Mexico 2 0
Slide 13: Average Daily Rig Margin by Rig Type
0.0x 0.5x 1.0x 1.5x 2.0x 2.5x 3.0x 3.5x Legacy Other AC International PACE-X + B Alaska + Offshore Drilling Ahead Leverage from New Rigs Growing Accretion through Mix Shift to High-spec Rigs 13 Average Daily Rig Margin by Rig Type * As of 9/30/2014
Slide 14: 2014 vs 2008: Better Positioned for Market Cycles
Drilling Ahead: 2014 vs 2008 Better Positioned for Market Cycles 14 > US Drilling Largest walking rig fleet best positioned for pad drilling 2008: 25% of working fleet AC rigs; 2014: 75% AC rigs Higher activity and margins in Alaska High-impact deepwater GOM platform in 2015 > International Renewals
Slide 15: Proprietary Market Survey Conducted by 3rd Party Firm
Drilling Ahead Next 5 Years Proprietary Market Survey Conducted by 3rd Party Firm > Interviews with 60 Oil & Gas Operators 40 North America based majors to mid- > International #1 in drilling performance and technical capabilities Clear market share leader > North America One of two top-tier driller
Slide 16: Global Market Study International Summary
Drilling Ahead Next 5 Years Global Market Study International Summary > Nabors holds prime slot in two markets with the highest expected five-year growth Nabors is a leader in the high value/high growth Saudi Arabia and Latin America markets Middle East, 160 total additional rigs expected Latin Amer
Slide 17: Global Market Study North America Summary
Drilling Ahead Next 5 Years Global Market Study North America Summary 17 > 2-4% - projected NAM total rig demand CAGR > 5-7% - rig demand CAGR > 10-12% - Pad Drilling 2010A 2013A 2018E % of Wells Drilled on Pads 20% 50% 70% Avg. # of Wells per Pad 2.2 4.0 6+ Accelerating Trend Towards Higher-Density
Slide 18: The PACE-X Difference
Drilling Ahead The PACE®-X Difference > Haynesville 3 PACE®-X rigs have reduced drilling times by 25% and customer well costs by 20% > Bakken PACE®-X rigs are averaging shorter cycle times and more feet per day than our competitors > Appalachia PACE®-X rigs save customers 7-10% on well costs over co
Slide 19: Summary: Why Nabors?
Summary Why Nabors? > Largest pure-play global driller > Largest exposure to the most resilient markets > Asset base best positioned for growth in both international and domestic markets > Impactful near-term deployments buffer potential market cycle > Beneficial tax attributes > Strong financial po
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