Nabors Industries Ltd. · NYSE:NBR
Nabors Industries — Q3 2019 Earnings Presentation
15 slides from Nabors Industries's earnings presentation, Oct 29, 2019
Slide 1: 3Q19 Earnings Presentation
3 Q 19 Earnings Presentation October 30, 2019 Presented by: Anthony G. Petrello Chairman, President, & Chief Executive Officer William J. Restrepo Chief Financial Officer
Slide 2: Forward-looking statements
2 We often discuss expectations regarding our future markets , demand for our products and services, and our performance in our annual, quarterly, and current reports, press releases, and other written and oral statements . Such statements, including statements in this document that relate to matter
Slide 3: Recent Company Highlights
3 Recent Company Highlights Increased U.S. Drilling average daily margins to $12,400 from $12,061 in 2Q • Modest increase in Lower 48 daily margins to $10,231 from $10,222 in 2 Q as industry rig count declines by 11% International deployments: • Successfully deployed two impactful rigs in 3Q, Argent
Slide 4: Canrig Sigma topdrive
4 Canrig ® Sigma topdrive • New design, 1st unit deployed • 500 Ton, 1500 Horsepower • Incorporates direct drive • Fewer moving parts • Reduced maintenance • Built - in Casing Running System
Slide 5: Financial Overview
5 Financial Overview
Slide 6: Financial Summary
6 Financial Summary (1) See reconciliations in the Appendix (2) Diluted Earnings (Losses) Per Share from continuing operations ($000 except EPS) 3Q18 4Q18 1Q19 2Q19 3Q19 Operating Revenues $779,425 $ 782,080 $ 799,640 $771,406 $758,076 Adjusted EBITDA (1) $200,960 $ 201,619 $ 196,996 $198,407 $207,0
Slide 7: Debt Maturity Profile as of 9/30/19
Debt Maturity Profile as of 9/30/19 All figures in millions (1) Annual figures shown at maturity value. (2) Debt balances reflect carrying values as of September 30, 2019. See reconciliation of Net Debt to Total Debt in the Appendix. (3) Availability under Revolving Credit Lines subject to covenants
Slide 8: Business Segments
Business Segments |) NABORS
Slide 9: 3Q19 Rig Utilization & Availability
Rig Fleet (1) 3Q19 Average Rigs Working Average Utilization U.S. Lower 48 AC ≥ 1500HP 119 98 87% AC Others 63 8 13% SCR Rigs 8 2 22% U.S. Lower 48 Total 190 108 67% U.S. Offshore 12 3 25% Alaska 16 3 20% Canada 41 8 20% International 149 88 58% Total Fleet 408 210 54% 9 3 Q19 Rig Utilization & Avail
Slide 10: Lower 48 Rig Utilization by Type
10 Lower 48 Rig Utilization by Type As of September 30, 2019 Rig Type Total Rigs Active Total Util. AC % PACE ® - X 38 47 81% PACE ® - M750 7 7 100% PACE ® - M800 6 6 100% PACE ® - M1000 3 4 75% PACE ® - B 25 29 86% PACE ® - S 9 11 82% UPGRADED PACE ® - F 6 6 100% PACE ® - F 1 9 11% PACE ® - M550 5
Slide 11: Nabors Drilling Operations
11 Please refer to the disclaimers on slides 2 and 3 of the presentation deck. U.S. 108 Kazakhstan 6 Venezuela 3 Mexico 2 Saudi Arabia 42 Oman 4 Algeria 2 Colombia 12 Canada 9 India 2 Argentina 10 Russia 3 Kuwait 2 Total = 205 Nabors Drilling Operations As of September 30, 2019
Slide 12: Appendix
12 Appendix
Slide 13: Rig Margins & Activity
13 Rig Margins & Activity (1) Margin = gross margin per rig per day for the period. Gross margin is computed by subtracting direct costs from operating revenues for the period. 3Q18 4Q18 1Q19 2Q19 3Q19 Margin (1) Avg. Rigs Working Margin (1) Avg. Rigs Working Margin (1) Avg. Rigs Working Margin (1)
Slide 14: Reconciliation of Adjusted EBITDA to Income (Loss) from Continuing Operations
14 Reconciliation of Adjusted EBITDA to Income (Loss) from Cont. Operations Before Income Taxes Adjusted operating income (loss) represents income (loss) from continuing operations before income taxes, interest expense, e arn ings (losses) from unconsolidated affiliates, investment income (loss ), i
Slide 15: Reconciliation of Free Cash Flow After Dividends
15 Reconciliation of Free Cash Flow After Dividends to Net Cash Provided by Operating Activities Free cash flow after dividends represents net cash provided by operating activities less cash used for investing activities a nd cash paid for dividends. Free cash flow is an indicator of our ability to