Nabors Industries Ltd. · NYSE:NBR
Nabors Industries — Q3 2016 Earnings Presentation
11 slides from Nabors Industries's earnings presentation, Oct 26, 2016
Slide 1: Forward-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 in this document incorporated by reference that re
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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 in this document incorpor
Slide 3: Financial Summary
4 Financial Summary Diluted Earnings (Losses) Per Share from continuing operations Includes 7¢ per share in favorable tax adjustments as well as charges and impairments of 79¢ per share related to our equity investment in C&J Energy Services, Ltd., other small asset impairments, and severance costs
Slide 4: Current Debt and Liquidity
5 Current Debt and Liquidity 1. Capitalization defined as Net Debt plus Shareholders’ Equity 2. Coverage defined as TTM Adjusted EBITDA / TTM Interest Expense 3. Leverage defined as Total Debt / TTM Adjusted EBITDA Note: Subtotals may not foot due to rounding Liquidity (at September 30, 2016) Cash &
Slide 5: Current Debt and Liquidity
Current Debt and Liquidity High 2016 3Q16 Change Change (sMM's) 3/31/2012 __ 6/30/2016 _ 9/30/2016 __2Q16 to 3Q16_3Q16 from High_ Total Debt $4,750 $3,503 $3,476 ($27) ($1,274) Cash and ST Investments 494 256 201 (55) (293) Net Debt $4,256 $3,247 $3,275 $28 ($981) Shareholder’s Equity 5811 3,716 3,5
Slide 6: 3Q16 Rig Utilization & Availability
7 3Q16 Rig Utilization & Availability As of 9/30/16 Note: Subtotals may not foot due to rounding Rig Fleet(1) 3Q16 Rig Years(2) Average Utilization U.S. Lower 48 AC 177 49 28% Legacy 47 1 2% U.S. Lower 48 Total 224 50 22% U.S. Offshore 17 4 24% Alaska 17 3 18% Canada 54 9 17% International 160 97 61
Slide 7: U.S. Rig Utilization Power Type and Capacity
8 9/30/16 U.S. Rig Utilization Power Type and Capacity * Including two (2) rigs stacked on rate Walking Skidding Pad Not Pad Total Capable Capable Rigs Active Total Util. Active Total Util. Active Total Total Active Total Util. Active Total Util. AC 46* 126 37% 4 22 18% 50* 148 34% 3 29 10% 53* 177
Slide 8: Nabors Working Rigs
US 63 Algeria 7 Russia 3 Kuwait 1 Saudi Arabia 41 Venezuela 5 Ecuador 3 PNG 1 Argentina 19 Colombia 4 Kazakhstan 2 Italy 1 Canada 13 Oman 4 India 2 9 9/30/16 Nabors Working Rigs Total = 169(1) (1) Active Revenue Rigs on 9/30/2016
Slide 9: Nabors Working Rigs
° Nabors Working Rigs. anada is saudi Arabia 41 rgentina 6 19 13 7 ussia 5 ‘cuador 4 ‘azakhstan india In wo) ‘uwait NG italy (1) Active Revenue Rigs on 9/30/2016 Total = 169 () NABORS
Slide 10: Rig Margins & Activity
11 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. 4Q15 1Q16 2Q16 3Q16 Drilling Margin (1) Rig Yrs Margin (1) Rig Yrs Margin (1) Rig Yrs Margin (1) Rig Yrs U.S. Drilling $12,
Slide 11: Rig Margins & Activity
Rig Margins & Activity 4Q15 1Q16 2016 3Q16 Drilling Margin Rig Yrs [Margin Rig Yrs |Margin Rig Yrs |Margin Rig Yrs U.S. Drilling | $12,274 91.0 | $10,043 64.9 | $12,274 53.7 $8,480 57.3 Canada 9,473 14.4 3,585 12.5 5,484 4.2 1,912 8.8 International] 16,321 117.5 | 16,489 110.5 | 18,172 101.2 | 18,38