Nabors Industries Ltd. · NYSE:NBR
Nabors Industries — Q2 2012 Earnings Presentation
21 slides from Nabors Industries's earnings presentation, Jul 25, 2012
Slide 1: 2Q 2012 Earnings Presentation
Exhibit 99.2 2Q 2012 NABORS July Anthony Presenter: Chairman, 25, 2012 Earnings G.President Petrello Presentation & Chief Executive Officer
Slide 2: Forward-Looking Statements
Forward-Looking We statements, Section economic •You Our natural 2The NABORS fluctuations the general often above businesses should existence possibility gas 27A economic discuss data description liquids including consider ofinof and the depend, of worldwide levels the expectations competitors, oper
Slide 3: Macro Commodity Pricing Affecting Customers' Cash Flows & Budgets
Macro Lower Oil $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 Natural 1/3/2011 $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 Source: WTI NGL 3Henry NABORS prices Cushing prices US Hub Commodity Outlook Gas Bloomberg 7/3/2011 Blended down Nat down prices Spot Gas 11% Avg. 34% 1/3/2012 up Price Pricing Spot since 2% sin
Slide 4: US Rig Count: Inflection Point?
01Down 500 1000 1500 2500 2000 11/4/2011 1884 1915 1992 US 4Source: NABORS /3/2003 Land 1975 108 Baker 1/3/2004 Rig 12/4/2011 Rigs 1950 Count Hughes From 1925 1/3/2005 –1/4/2012 (2003 At Nov 1900 USInflection Rotary –2011 1875 1/3/2006 Current) 2/4/2012 Peak, 1850 Rig Point? 1/3/2007 Count 313/4/201
Slide 5: Asset Dispositions Status
Asset Status US: Blue Canada: Hybrid Workover Peak Alaska: Offshore: US International Value 5Subtotal NABORS GOM Sky/Airborne USA Oilfield Dispositions To Timing Coiled $300 Be Jackup Barge &Completed Determined Well Jackup Services -/Tubing Value $400 Rigs Rigs Services Evaluating Rigs MM In #$14 D
Slide 6: Recent Asset Dispositions
Asset Recent California Action Austin Colombia $72 Proceeds 2Q12 1Q12 4Q11 Date Total 4Miscellaneous 573 $154 Remaining Oil Eagle Alaska British Horn Montney NFR Status In $225 Details Planned 33,800 31,600 1.3 6(1) NABORS MM Process MM At Tcfe &MM Energy MM – River Dispositions: Ford Gas 6/30/12 Ch
Slide 7: Alaska Oil and Gas Operations Land Position
Asset Alaska Central P MPU OU NSU eni Telemark Mustang Tofkat Appaloosa SA PTU BU LU DIU PBU CRU Great ConocoPhillips Statoil ExxonMobil REPSOL Western 7Eastern NABORS PIONEER ANTBear Dispositions: Land –56,000 ––85,000 89,000 Petroleum Position acres acres acres Oil–LLC and 230,000 Gas Operations G
Slide 8: British Columbia Horn River Oil and Gas Land Position
Asset British Quick SMR Ramshorn Storm Conoco Kilometres 94-O-8 94-O-7 94-P-12 94-P-5 94-O-14 94-O-11 94-P-13 94-O-15 Nexen Encana/Apache Devon Miles D-95-B-3 94-O-16 9-P-13 94-O-10 EOG CONOCO APACHE/ENCANA NEXEN 94-O-6 GAS SPECTRA 94-O-3 IMPERIAL 94-J-14 SUNCOR PENGROWTH Ft 94-J-11 E-94-J-11 Projec
Slide 9: Ample Liquidity
Ample As Liquidity Cash Credit Current Interest 9/14 1.75% Term $950,634 490,000 $460,634 Available $1,400,000 Senior Total Weighted Face 4.625% 5.00% 9.25% 6.15% 5.375% Rate Coupon 9/21 9/20 1/19 2/18 8/12 Maturity (1) 6.6%(1) $3,775,000 700,000 1,125,000 975,000 $275,000 95.7 NABORS of Excludes ye
Slide 10: Our Debt Priorities: Enhance Balance Sheet Flexibility
OurBased Targeted Total ($MM’s) Cash Shareholders’ Gross Net Targeted(3) 2.5x 7.7x 5,718 4,213 $4,674 2Q12 2.4x 8.0x 45% 5,811 4,273 500 $4,773 1Q12 Actual Leverage(2) Coverage(1) EOY 2.3x 7.9x 40% 42% 6,045 3,994 461 $4,455 (1) 1.5x 9.7x 30% 34% 6,655 2,902 586 $3,489 (2) (3) 10 NABORS Coverage Lev
Slide 11: Nabors Expected Operating Income
Nabors Expected Operating ($MM’s) US Alaska Canada International Rig Drilling Well Pressure Completion Oil Corporate Total Subtotals 11 NABORS & Lower Offshore Services Servicing Operating Gas 28 Global 95 and Pumping FY Seasonally may Income & 27 60 48 49 and Rig Eliminations 156 2011 124 96$414 (4
Slide 12: Adjusted Income Derived from Operating Activities: Drilling & Rig Services
Adjusted ($M’s) Drilling US Alaska Canada International Other Total 12 NABORS Lower Offshore $153,745 Rig 2Q11 8,288 (2,512) &Income and Services 48 Rig Rig (1,059) 35,851 FY 27,671 $99,231 Services $716,898 94,637 Services: 2011 (Loss) 13,946 123,813 843 27,420 1Q12 $414,317 49,287 Derived 7,732 $2
Slide 13: Drilling: Global Rig Fleet
Drilling Global AC Land Canada Alaska US Offshore International Total Note: 13 NABORS Lower GOM SCR 222 Includes Rig 426 &12 Mech 275 448 Rig 21 Fleet 26 3234 152 33 19 116 25 2012 2Services Total 63 32 80 -115 613 34 27 and 40 131 2013 307 scheduled new equipment deployments
Slide 14: Drilling: US Shale Plays
Drilling US Shale Working Oil/Gas Marcellus Haynesville Bakken/Rockies Eagle Permian Barnett Granite Other Total Note: 14 NABORS Lower 216 As Plays Ford Oil/Gas Gas Wash &Oil Drilling ofGas 48 Rig Oil 7/20/12 & 4Gas 33–Oil/Gas 26 Basin 14 Services 32 Basin Oil/Gas 22 Rigs including Summary 8 77 12 s
Slide 15: Drilling: US Term Contracts
Drilling US Quarter Subject 2Q12 1Q 2Q ($MM’s) Non-Working Lump Standby: Total (1) 15 NABORS Represents 2012 Lower $4.4 3Q12 Sum Sum: To End &146 149 Monthly Actual $11.9 48 Rig Term $1.2 4Q12 Amortized Number 111 128 –Rig the Services Term Estimates $8.4 $3.3 Contracts(1) 85 87 1Q13 Revenue $2.6 qu
Slide 16: Drilling: Canada Basin Summary
Drilling Canada Basin Working 1Q12 Horn Montney Duvernay Oil Cardium Saskatchewan Total Note: 16 NABORS Sands 65 River Total 2Q12 Oil/Gas Summary &50 Rigs Oil Oil/Gas Oil Rig rigs Gas 2624 8Total Oil Services 811 7/20/12 14 5 814 7by 6-10 2Rigs 28Basin 24 and–working 2Q12 Represents rigs 3/31/12 Sea
Slide 17: Adjusted Income Derived from Operating Activities: Completion & Production Services
Adjusted ($M’s) Completion Pressure Well Total 17 NABORSServicing $60,414 2Q11 Pumping Income &FY and $303,850 Production 16,526 Production 2011 Derived $43,888 1Q12 74,725 $86,748 from Services $229,125 Services: 2Q12 21,888 Operating $74,743 $64,860 28,599 Activities $46,144
Slide 18: Completion: Strategically Positioned in Shale Plays
Completion Strategically Shale LTSA Well CTU Fluid Frac Marcellus/Utica Bakken/Rockies Eagle Permian Barnett/Haynesville Granite Canada Other Idle Total Note: 18 NABORS -Tanks Crews Svc 13 Svc 5As Plays Ford -Spot -Wash -13 12-of 2Rigs Trucks -2211 -212 7/20/12 -& -176 Positioned 1125 -Basin Product
Slide 19: Ancillary Information
Ancillary Information 19 NABORS
Slide 20: Nabors Margins
Nabors Margins 2Q11 Drilling Alaska International Well US Canada (1) 20 NABORS Margin Offshore Lower Servicing 1Q12 44,615 Global 11,597 742 Margin and 48 =2Q12 29,254 Activities 11,937 13,135 gross $10,201 $456 4.5 Infrastructure Rev/Hr 22.5 (1)48,124 margin 195,949 834 Rig 14,282 9.4 102.8 194.2 R
Slide 21: Rig 103 Pad Move
Rig 103 Pad 21 NABORS To Pad Move