Nabors Industries Ltd. · NYSE:NBR
Nabors Industries — Investor Presentation (September 2021)
27 slides from Nabors Industries's investor presentation, Sep 29, 2021
Slide 1: Nabors Industries Ltd. September 2021 Investor Presentation
NABORS INDUSTRIES LTD. September 2021 Investor Presentation NABORS
Slide 2: Forward Looking Statements
Forward Looking Statements • our ability to complete, and realize the expected benefits, of strategic transactions; • changes in tax laws and the possibility of changes in other laws and regulation; • the possibility of political or economic instability, civil disturbance, war or acts of terrorism i
Slide 3: Recent Company Highlights
Recent Company Highlights Generated FCF of $68M in 2Q 2021 After funding $77M in total capital spending 2021 YTD FCF of $128M Reduced Net Debt by $58M during 2Q 2021 Total debt improved by $76M in the quarter 2Q 2021 adjusted EBITDA of $117M Activity strengthened throughout markets Significant progr
Slide 4: Five Keys to Excellence
Performance excellence in the Lower-48 Resilience leading to growth in our International segment Improving outlook for our technology & innovation Progress on our commitment to delever Leading in Sustainability and the Energy Transition 4 Five Keys to Excellence 1 4 3 2 5
Slide 5: Outperforming the Competition in the Lower-48
Outperforming the Competition in the Lower-48 5 Comparing on a like-for-like basis, Nabors’ Lower-48 daily margins top those of our peers (1) Calculated based on reported financials (2) Adjusted for unusual items (see notes on right) (3) Nabors Drilling Solutions margin included $6,000 $8,000 $10,00
Slide 6: Best Share Gain in the Lower-48 through Pandemic
Best Share Gain in the Lower-48 through Pandemic 6 1.1% 0.7% -0.2% -1.0% -3.6% -4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% NBR Peer 1 Peer 2 Peer 3 Peer 4 Percent Change in Market Share through Pandemic (3/13/2020 – 9/10/2021) Outpaced peers through the pandemic demonstrating customer preference of Nabor
Slide 7: Five Keys to Excellence
Performance excellence in the Lower-48 Resilience leading to growth in our International segment Improving outlook for our technology & innovation Progress on our commitment to delever Leading in Sustainability and the Energy Transition 7 1 4 3 2 5 Five Keys to Excellence
Slide 8: International: Resilient through the Downturn
-80% -60% -40% -20% 0% 1Q 2Q 3Q 4Q 1Q 2Q 2020 2021 Change in Average Rig Counts NBR International NBR Lower 48 Lower 48 Market $- $5,000 $10,000 $15,000 1Q 2Q 3Q 4Q 1Q 2Q 2020 2021 International Margin per day International: Resilient through the Downturn 8 Nabors financial results bolstered by Inte
Slide 9: Line of Sight to Estimated SANAD Growth in International Drilling
Line of Sight to Estimated SANAD Growth in International Drilling 9 $0 $20 $40 $60 $80 $100 $120 $140 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2021 2022 2023 2024 2025 EBITDA to nearly double in 4 years With projected SANAD growth alone, visibility for International expansion (In
Slide 10: Significant International Opportunities
Significant International Opportunities 10 • 50 rigs over the next 10 years • Awarded 5 rigs to-date • $100M capex in 2021, internally funded by SANAD • 6-year initial contracts, full payout within 5 years, plus 4-year renewal at market • Annual EBITDA of ~$10M per rig $60 $65 $70 $75 $80 $85 1Q 2Q
Slide 11: Five Keys to Excellence
Performance excellence in the Lower-48 Resilience leading to growth in our International segment Improving outlook for our technology & innovation Progress on our commitment to delever Leading in Sustainability and the Energy Transition 11 1 4 3 2 5 Five Keys to Excellence
Slide 12: NDS Capitalizing on Growing Rig Count and Higher Penetration
$- $10 $20 $30 $40 $50 Q3 Q4 Q1 Q2 2020 2021 NDS Revenue & Gross Profit Revenue Gross Profit NDS Capitalizing on Growing Rig Count and Higher Penetration 12 Revenue Up 33% Gross Profit Up 59% % GM 39% % GM 46% Expanding our low-capital / high-margin / high-value technology services “..the new SmartN
Slide 13: Customer Adoption Fueling Rapid NDS Footprint Expansion
Customer Adoption Fueling Rapid NDS Footprint Expansion 13 Q2 Q3 Q4 Q1 35 52 45 58 3rd Party Nabors Rigs RigCLOUD® Services - 10 20 30 40 50 60 70 Q3 Q4 Q1 Q2 2020 2021 Number of Installs by Product ROCKitTM SmartDRILLTM NDS products consistently add value on both Nabors’ and Third-party rigs Rallyi
Slide 14: Smart Suite Growth Trajectory Validates Customer Acceptance
0 5 10 15 20 25 0 100 200 300 400 500 600 700 800 900 1000 Q2'17 Q4'17 Q2'18 Q4'18 Q2'19 Q4'19 Q2'20 Q4'20 Q1'21 Q2'21 Footage Drilled in Millions Number of Wells Drilled Cumulative # of Wells Drilled Cumulative Footage Drilled • 900+ Wells Drilled • 20+ Million Feet Drilled • 90% Customer Retention
Slide 15: Platform Powered by SmartROS RigCloud
Platform Powered by SmartROSTM 15 RigCloud® Industry’s Most Robust App Portfolio 50+ Smart Apps SmartNAVTM SmartSLIDETM SmartPLANTM SmartDRILLTM SmartCRUISETM RigCLOUD AnalyticsTM myDRILLSTM MWD SuiteTM REVitTM ROCKitTM RigCLOUD MetricsTM Integrated TRS Integrated MPD A broad suite of capabilities i
Slide 16: Five Keys to Excellence
Performance excellence in the Lower-48 Resilience leading to growth in our International segment Improving outlook for our technology & innovation Progress on our commitment to delever Leading in Sustainability and the Energy Transition 16 1 4 3 2 5 Five Keys to Excellence
Slide 17: Significant Headway toward Financial Goals
$(100) $(50) $- $50 $100 $150 $200 $250 $300 $350 $400 1H 2H 1H 2H 1H 2H 1H 2018 2019 2020 2021 Significant Headway toward Financial Goals 17 Semiannual Free Cash Flow $- $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2019 2020 2021 $B Net Debt $1.4B Semi
Slide 18: Optimizing our capital allocation with the sale of Canada assets
Optimizing our capital allocation with the sale of Canada assets in 3Q for $94M in cash $128M in 1H 2021 Expect $10M to $20M in 3Q after funding semiannual interest on notes, before Canada asset sale proceeds Improved working capital, primarily DSO, added in excess of ~$50M to FCF in 1H 2021 Free Ca
Slide 19: Five Keys to Excellence
Improving outlook for our technology & innovation Performance excellence in the Lower-48 Resilience leading to growth in our International segment Progress on our commitment to delever Leading in Sustainability and the Energy Transition 19 1 4 3 2 5 Five Keys to Excellence
Slide 20: Growing Commitment to Operational and Environmental Stewardship
Growing Commitment to Operational and Environmental Stewardship 20 11 13 14 18 YE 2020 1Q'21 2Q'21 Current Increasing Dual-Fuel Rig Count 54 Lower 48 rigs with dual-fuel capability • 18 dual-fuel (blended natural gas & diesel) • 2 using biodiesel • 3 w/ advanced energy storage/management system • 3
Slide 21: Growth Opportunity Capitalizing on Nabors' Expertise -- Geothermal
Growth Opportunity Capitalizing on Nabors’ Expertise -- Geothermal 21 An Exciting Adjacency for the Future Nabors and its predecessor entities have been continuously operating in the energy sector for over 100 years • Proven ability to design, commercialize, deploy and operate cutting-edge technolog
Slide 22: Investment Thesis
22 Investment Thesis Driving the evolution of energy production technology with the leading position in automation and digitalization, largest international footprint, and commitment to advancing the energy transition NABORS
Slide 23: Appendix
Appendix @ NABORS
Slide 24: Reconciliation of Adjusted EBITDA to Income (Loss) from Continuing Operations
Three Months Ended June 30, Sep 30, Dec 31, March 31, June 30, 2020 2020 2020 2021 2021 Adjusted EBITDA $153,825 $114,222 $108,114 $107,730 $117,322 Depreciation and Amortization (211,120) (206,862) (208,658) (177,276) (174,775) Adjusted Operating Income (loss) (57,295) (92,640) (100,540) (69,546) (
Slide 25: Reconciliation of Net Debt to Total Debt
June 30, 2021 Long‐Term Debt $2,823,125 Current Debt ‐ Total Debt $2,823,125 Less: Cash & Short‐term Investments $399,897 Net Debt $2,423,228 (In Thousands) Reconciliation of Net Debt to Total Debt 25 Net debt is computed by subtracting the sum of cash, cash equivalents and short term investments fr
Slide 26: Reconciliation of Free Cash Flow to Net Cash Provided by Operating Activities
Three Months Ended Six Months Ended June 30, March 31, June 30, 2021 2021 2021 Net cash provided by operating activities $133,713 $79,490 $213,203 Less: Net Cash used for investing activities (65,800) (19,119) (84,919) Free cash flow $67,91 3 $60,371 $128,284 (In Thousands) Reconciliation of Free Ca
Slide 27: Contact Us
NABORS.COM NABORS CORPORATE SERVICES 515 W. Greens Road Suite 1200 Houston, TX 77067-4525 Contact Us: William C. Conroy VP - Corporate Development and Investor Relations William.Conroy@nabors.com Kara K. Peak Director - Corporate Development and Investor Relations Kara.Peak@nabors.com NABORS.COM
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