Nabors Industries Ltd. · NYSE:NBR
Nabors Industries — Barclays CEO Conference Energy-Power 2015
19 slides from Nabors Industries's conference presentation, Sep 9, 2015
Slide 1: Barclays CEO Conference Energy-Power September 2015
Barclays CEO Conference Energy-Power September 2015 Presenter: 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: Agenda
Agenda Overview of Nabors Operations I. Actions Taken to Mitigate Downturn II. Market Overview III. Nabors’ Strategy for the Future IV. Nabors: The Global Leader in Drilling V. 3
Slide 4: Overview of Nabors Operations: The Largest Land Drilling Company in the World
I Overview of Nabors Operations The Largest Land Drilling Company in the World 16,000+ Employees 94 Nationalities 532 Drilling Rigs 19 Countries As of 6/30/15 * According to proprietary 3rd party survey 4 Customers: “Nabors is the premier international driller”*
Slide 5: Nabors Delivers Solutions to Customers Through Three Services
I Overview of Nabors Operations Nabors Delivers Solutions to Customers Through Three Services Drilling Equipment Drilling Solutions Drilling Ops 5 Nabors is in a unique position in the industry with the combination of a state-of-the-art drilling portfolio, surface and sub-surface intellectual proper
Slide 6: Geographic Diversification Mitigates North American Cyclicality
I Overview of Nabors Operations Geographic Diversification Mitigates North American Cyclicality Quarterly EBITDA Trend (14.1%) CAGR Lower 48 + Canada 12.5% CAGR International, GOM, & Alaska 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14 1Q15 * Includes early termination 6
Slide 7: Realigning Our Business and Maintaining FCF
II Navigating the Downturn Realigning Our Business and Maintaining FCF Restructured drilling organization > – Reduce direct field costs linearly with decline in utilization •Redeploy most-capable field personnel to working rigs •Upgrade field performance and reserve talent for potential upturn Combi
Slide 8: Improved Liquidity for Flexibility and Prudent Investments
II Navigating the Downturn Improved Liquidity for Flexibility and Prudent Investments Improving financial flexibility has been a top priority –Divestiture of non-core business lines and asset sales now complete with total cash proceeds of ~$1.7 billion > • • • NCPS E&P GOM jackup/barge rigs –Signifi
Slide 9: Global Asset Positioning Supporting Rig Count Vs. Competitors
III Market Overview: Global Global Asset Positioning Supporting Rig Count Vs. Competitors Rig Count Trend Since 3Q14 10% 0% -10% -20% -30% -40% -50% -60% Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Source: BHI Rig Count, Nabors Internal 9 NBR U.S. L48: -54% Industry U.S. L48: -55% Nabors Global: -36% NBR INT
Slide 10: U.S. Drilling and Canada: Future Rig Count Highly Dependent on Oil Prices
III Market Overview: U.S. Drilling and Canada Future Rig Count Highly Dependent on Oil Prices Limited prospects for near-term rig additions; recent volatility has dampened plans to add rigs Spot rig pricing stabilizing well below fleet average dayrates Offshore activity generally down; duration of B
Slide 11: International: Nabors' Core Markets Relatively Stable
III Market Overview: International Nabors’ Core Markets Relatively Stable Deployments to Saudi, Kazakhstan, and Colombia (6 PACE®-X) on track, partially offsetting expected rig count declines in other regions Pace of resource development in LATAM impacted by oil price decline and country-specific is
Slide 12: MENA Region Remains More Resilient than Rest of World
III Market Overview: MENA Region Remains More Resilient than Rest of World Increasing focus on natural gas drilling Deep gas and unconventional drilling require highest specification land rigs A lack of idle capacity in high-spec gas rigs provides solid utilization and future opportunities > > > Our
Slide 13: LATAM & Rest of World: Future Deployments Help Offset Decline
III Market Overview: LATAM & Rest of World Future Deployments Help Offset Decline in Certain Regions Six PACE®-X rigs for Colombia expected to commence operations before year end; three to spud in Q3 Mexico remains challenging Argentina holding steady Kazakhstan rigs deploying in 1H16 > > > > Reposi
Slide 14: Concentrate on Long-Term Sustainable Markets, Critical Mass
IV Nabors’ Strategy for the Future Concentrate on Long-Term Sustainable Markets, Critical Mass MENA Offshore Platforms South America GoM & International Lower 48 Alaska 14
Slide 15: Rigs: The Delivery Platform for Future Services and Technology
IV Nabors’ Strategy for the Future Rigs: The Delivery Platform for Future Services and Technology ® ® 15 For the last four years, we have focused on optimizing drilling performance through: •Innovating surface systems and integrating downhole drilling technology •Leveraging our vertical integration
Slide 16: Rig Performance Technology Provides Faster, Accurate Results
IV Nabors’ Strategy for the Future Rig Performance Technology Provides Faster, Accurate Results 16 ROCKit® & REVitTM Top Drive Drilling Performance Products ROCKit® is a patented directional steering control system that oscillates drill pipe ROCKit® system significantly increases ROP and reduces dir
Slide 17: New AccuSteer MWD Maximized ROP
IV Nabors’ Strategy for the Future New AccuSteer MWD Includes EM, Continuous Rotary Inclination, Maximized ROP Azimuthal Gamma, Resistivity AccuSteer Case History - $183k Saved on One Well Nabors 34’ MWD Compares Favorably to the Market Dynamics* * Weight on bit, torque on bit 17 Drilling Efficiency
Slide 18: Acquired Norwegian Rotary Steerable Company Expands Downhole IP
IV Nabors’ Strategy for the Future Acquired Norwegian Rotary Steerable Short, Simple, Cost Effective, Patented Design Company Expands Downhole IP Capable of Building a 15°/30m Dogleg Rev. Development Sponsored by US Major Mud Turbine Power, No External Parts 18 2TD SLB Archer BHI Curve HAL CoPilot W
Slide 19: Nabors: The Global Leader in Drilling
V Nabors: The Global Leader in Drilling Strategic Asset Positioning, Strong Liquidity, Advanced Technology Differentiated, pure-play land driller > – – – Largest land drilling company in the world Geographic diversity dampens North America cyclicality Established infrastructure in best global market
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