Nabors Industries Ltd. · NYSE:NBR
Nabors Industries — Q4 2013 Earnings Presentation
19 slides from Nabors Industries's earnings presentation, Feb 19, 2014
Slide 1: 4Q13 Earnings Presentation
vert_photos1.jpgnbr_alt_logo_horz2.jpg4Q13 Earnings Presentation February 19, 2014 Presenter: Anthony G. Petrello Chairman, President & Chief Executive Officer
Slide 2: Forward-Looking Statements
nbr_alt_logo_horz2.jpgForward-Looking Statements 2 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 i
Slide 3: Recent Highlights
nbr_alt_logo_horz2.jpg\\Houfile1\Home1\Tyler.Renaudin\Desktop\125_K8V0477.jpg3 Recent Highlights
Slide 4: Best Safety Performance In Company History
vert_photos2.jpgnbr_alt_logo_horz2.jpgBest Safety Performance In Company History 4 2012 2013 Change Total Recordable Incidence Rate 1.18 1.01 (14%) (per 200,000 man hours) >Reduced Total Recordable Incidence Rate (TRIR) by 14% 0 0.5 1 1.5 2 2.5 3 3.5 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Slide 5: Improving Financial Flexibility
vert_photos2.jpgnbr_alt_logo_horz2.jpgImproving Financial Flexibility 5 >Refinanced $785mm (~70%) of 2019, 9.25% notes >4Q 2013 annualized interest expense ~$59mm lower than a year ago –Blended interest rate is now 4.56%, down from 5.48% (1)Capitalization defined as Net Debt plus Shareholders’ Equit
Slide 6: Financial Summary
vert_photos2.jpgnbr_alt_logo_horz2.jpg6 Financial Summary ($M’s except EPS) 4Q12 1Q13 2Q13 3Q13 4Q13 Revenue $1,571,745 $1,538,373 $1,459,326 $1,548,965 $1,605,390 EBITDA 427,144 412,503 355,814 439,337 437,242 Operating Income 153,662 143,138 89,604 165,893 159,584 Diluted EPS(1) $0.45 $0.31 $0.08
Slide 7: Drilling & Rig Services
nbr_alt_logo_horz2.jpgG:\NCS\Investor_Relations\Marketing & Branding\Photos\NDUSA\North Dakota\NAB11_0415.jpg7 Drilling & Rig Services
Slide 8: Drilling & Rig Services Adjusted Income Derived from Operating Activities
nbr_alt_logo_horz2.jpg8 Drilling & Rig Services Adjusted Income (Loss) Derived from Operating Activities ($M’s) 4Q12 1Q13 2Q13 3Q13 4Q13 Drilling & Rig Services: U.S. $82,603 $77,595 $69,813 $92,710 $75,378 Canada 27,064 30,518 3,895 12,244 14,536 International 23,388 21,469 32,481 54,271 69,612 Rig
Slide 9: Global Rig Fleet Details
nbr_alt_logo_horz2.jpgGlobal Rig Fleet Details 9 AC SCR Mech Total Moving Systems Alaska Land 5 12 2 19 13 Lower 48 172 88 26 286 151 Canada 17 19 28 64 20 International Land 35 73 26 134 60 Offshore 9 40 2 51 n/a Total 239 233 83 554 244 Rig Counts include contracted rigs scheduled to be delivered
Slide 10: 4Q13 Rig Utilization & Availability
4Q13 Rig Utilization & Availability 10 Rig Fleet(1) 4Q13 Rig Years Utilization U.S. Lower 48 AC 148 139 94% Legacy 114 45 39% U.S. Lower 48 Total 262 183 70% U.S. Offshore 24 11 46% Alaska 19 5 26% Canada 64 33 52% International 142 125 88% Subtotal 511 357 70% PACE®-X Construction(2) 24 Intl. Newbu
Slide 11: International Working Rigs
nbr_alt_logo_horz2.jpgInternational Working Rigs 11 Algeria 10 Ecuador 6 Kurdistan 2 Romania 1 Angola 1 India 5 Kuwait 2 Russia 5 Argentina 16 Iraq 4 Malaysia 2 Saudi Arabia 32 Colombia 8 Italy 1 Mexico 13 UAE 1 Congo 1 Kazakhstan 1 Oman 4 Venezuela 5 PNG 2 Yemen 2 Total 124 As of 12/31/13
Slide 12: Completion & Production Services
nbr_alt_logo_horz2.jpg\\Houfile1\Home1\Tyler.Renaudin\Desktop\Cresson Plant-024.jpg12 Completion & Production Services
Slide 13: Completion & Production Services Adjusted Income Derived from Operating Activities
nbr_alt_logo_horz2.jpgCompletion & Production Services Adjusted Income Derived from Operating Activities 13 ($M’s) 4Q12 1Q13 2Q13 3Q13 4Q13 Completion & Production Services: Completion Services $30,296 $17,756 $6,870 $13,024 $14,072 Production Services 21,374 26,014 23,471 25,909 26,736 Total $51,67
Slide 14: U.S. Completion & Production Services Fleet
nbr_alt_logo_horz2.jpgU.S. Completion & Production Services Fleet Region Rigs Frac Crews Trucks Frac Tanks CTU Cementing Wireline SWD Western 181 528 1,824 16 12 Rockies 74 9 56 322 1 9 10 2 Mid-Con 34 1 104 462 8 11 3 Northeast 7 5 103 600 40 15 West Texas 108 3 328 1,237 12 4 3 13 South Texas 27 3
Slide 15: Outlook and Summary
nbr_alt_logo_horz2.jpgD:\NABORS_MGP2_04\North_Dakota_11.2011-1\300 PPI JPG (High Res)\NAB11_0008.jpg15 Outlook and Summary
Slide 16: Key Takeaways
vert_photos2.jpgnbr_alt_logo_horz2.jpgKey Takeaways 16 >International poised for strong growth beginning in 2H 2014 >U.S. Drilling benefits from PACE-X deployments; option value in SCR rigs >Larger global opportunity set relative to U.S.-centric peers >Opportunities for additional high-impact invest
Slide 17: Appendix
nbr_alt_logo_horz2.jpg\\Houfile1\Home1\Tyler.Renaudin\Desktop\007_G5A9435.jpg17 Appendix
Slide 18: EBITDA
nbr_alt_logo_horz2.jpgEBITDA 18 ($M’s) 4Q12 1Q13 2Q13 3Q13 4Q13 Drilling & Rig Services $359,999 $346,238 $316,630 $384,188 $380,242 Completion & Production Services 107,732 97,842 81,515 90,814 96,425 Other reconciling items (40,587) (31,577) (42,331) (35,665) (39,425) Total $427,144 $412,503 $355,
Slide 19: Nabors Global Infrastructure Margins and Activities
nbr_alt_logo_horz2.jpg19 Nabors Global Infrastructure Margins and Activities 1Q13 2Q13 3Q13 4Q13 Drilling Margin (1) Rig Yrs Margin (1) Rig Yrs Margin (1) Rig Yrs Margin (1) Rig Yrs U.S. Lower 48 $9,955 169.5 $9,388 175.5 $11,357 178.6 $9,992 183.1 U.S. Offshore 19,163 14.1 20,888 15.6 18,717 11.9 2