Nabors Industries Ltd. · NYSE:NBR
Nabors Industries — Q4 2018 Earnings Presentation
15 slides from Nabors Industries's earnings presentation, Feb 27, 2019
Slide 1: 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 matters
Slide 2: Recent Company Highlights
3 Recent Company Highlights Increased U.S. Drilling average daily margins to $11,428 from $10,540 in Q3 L48 Margins increased to $9,428 from $8,732, an 8% sequential increase Recent U.S. Rig Deployments Upgraded PACE®-F rigs in the Permian: 4 in 4Q 2018 2 in 1Q 2019 One upgraded PACE ®-M750 rig in S
Slide 3: Recent Company Highlights
Recent Company Highlights ©) Increased U.S. Drilling average daily margins to $11,428 from $10,540 in Q3 * L48 Margins increased to $9,428 from $8,732, an 8% sequential increase ® Recent U.S. Rig Deployments * Upgraded PACE®-F rigs in the Permian: + 4in4Q 2018 + 2in1Q2019 * One upgraded PACE ®-M750
Slide 4: Financial Summary
5 Financial Summary See reconciliations in the Appendix Diluted Earnings (Losses) Per Share from continuing operations ($000 except EPS) 4Q17 1Q18 2Q18 3Q18 4Q18 Operating Revenues $708,277 $734,194 $761,920 $779,425 $782,080 Adjusted EBITDA(1) 162,557 168,414 187,683 200,960 201,619 Adjusted Operat
Slide 5: Debt and Liquidity
Debt and Liquidity (As of December 31, 2018) (1) See reconciliations in the Appendix (2) Capitalization defined as Net Debt plus Shareholders’ Equity (3) Coverage defined as TTM Adjusted EBITDA / TTM Interest Expense (4) Leverage defined as Net Debt / TTM Adjusted EBITDA Note: Subtotals may not foot
Slide 6: Debt Maturity Profile as of 12/31/18
Debt Maturity Profile as of 12/31/18 All figures in millions Annual figures shown at maturity value. Debt balances reflect carrying values as of 31-December-2018 Availability under Revolving Credit Lines subject to covenants Nearest Maturity in 2020 (1) Debt @ 12/31/18 Total Debt: $3.59Bn(2) Net Deb
Slide 7: Debt Maturity Profile as of 12/31/18
Debt Maturity Profile as of 12/31/18 All figures in millions Nearest Maturity in 2020 $2,500 : , Debt @ 12/31/18 j : Total Debt: $3.59Bn2) BH H $2,000 Net Debt: $3.10Bn®) $2.25 Billion | ' Available Liquidity: $2.25Bn®) H i $1,500 : : $1,000 : 4 : i: $500 470 792 H : 575 ‘ ' 344 H H $0 H i 2018 2019
Slide 8: Rig Fleet: 4Q18 Rig Utilization & Availability
Rig Fleet(1) 4Q18 Average Rigs Working Average Utilization U.S. Lower 48 AC > 1500HP 112 99 88% AC Others 70 10 14% SCR Rigs 12 2 17% U.S. Lower 48 Total 194 111 57% U.S. Offshore 12 3 25% Alaska 16 3 19% Canada 41 18 44% International 133 88 66% Total Fleet 396 224 56% 9 4Q18 Rig Utilization & Avai
Slide 9: Lower 48 Rig Utilization by Type
10 Lower 48 Rig Utilization by Type As of December 31, 2018 Pad Not Pad Total Capable Capable Rigs Active Total Total Active Total Util. Active Total Util. AC 108 158 68% 3 26 12% 111 184 60% PACE®-X 46 47 98% 0 0 0% 46 47 98% PACE®-M800 6 6 100% 0 0 0% 6 6 100% PACE®-M1000 4 4 100% 0 0 0% 4 4 100%
Slide 10: Nabors Drilling Operations
11 116 US 123 Colombia 14 Russia 3 Italy 1 UAE 0 Saudi Arabia 41 Kazakhstan 5 India 2 Venezuela 1 Canada 18 Oman 4 Kuwait 2 Ecuador 0 Argentina 15 Algeria 3 Mexico 2 PNG 0 Total = 234 Nabors Drilling Operations As of December 31, 2018
Slide 11: Nabors Drilling Operations
Nabors Drilling Operations As of December 31, 2018 Total = 234 Us 123] [Colombia 14] [Russia 3] [italy 7| [UAE 0 SaudiArabia 41| | Kazakhstan 5 | | India 2] |Venezuela 1 Canada 18) |Oman 4) |Kuwait 2| |Ecuador 0 Argentina 15] |Algeria 3} |Mexico 2] |PNG o . ) NABORS
Slide 12: 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. 1Q18 2Q18 3Q18 4Q18 Margin(1) Avg. Rigs Working Margin(1) Avg. Rigs Working Margin(1) Avg. Rigs Working Margin(1) Avg. Rigs
Slide 13: Reconciliation of Adjusted EBITDA to Income (Loss) from Cont. Operations Before Income Taxes
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, earnings (losses) from unconsolidated affiliates, investment income (loss), impa
Slide 14: Reconciliation of Net Debt to Total Debt
15 Reconciliation of Net Debt to Total Debt Net debt is computed by subtracting the sum of cash, cash equivalents, and short-term investments from total debt. This non-GAAP measure has limitations and therefore should not be used in isolation or as a substitute for the amounts reported in accordance
Slide 15: Reconciliation of Net Debt to Total Debt
Reconciliation of Net Debt to Total Debt [Net debt is computed by subtracting the sum of cash, cash equivalents, and short-term investments from total debt. This non-GAAP measure has limitations and therefore should not be used in isolation or as a substitute for the amounts reported in accordance w