Nabors Industries Ltd. · NYSE:NBR
Nabors Industries — Q2 2025 Earnings Presentation
34 slides from Nabors Industries's earnings presentation, Jul 30, 2025
Slide 1: 2Q 2025 Earnings Presentation
2Q 2025 Earnings Presentation NABORS INDUSTRIES July 29, 2025
Slide 2: Forward-Looking Statements
NABORS INDUSTRIES Forward-Looking Statements We often discuss expectations regarding our future markets, demand for our products and services, and our performance in our annual, • global views on and the regulatory environment related to energy transition and our ability to implement our energy tran
Slide 3: The Industry's Most Innovative Technology
NABORS INDUSTRIES The Industry’s Most Innovative Technology Integrated 1H 2025 Adjusted EBITDA by Segment Drilling and Technology 2% Solutions Drilling 21% Solutions 35% Drilling Operations U.S. & INTERNATIONAL Rig Technologies 42% Aligned to drive advanced U.S. Drilling International Drilling drill
Slide 4: Our Businesses Offer Valuable Vertical Integration
NABORS INDUSTRIES Our Businesses Offer Valuable Vertical Integration International U.S. Drilling Rig Drilling Drilling Solutions (NDS) Technologies Deploying best fit-for-purpose A leading provider of high- Utilizing the rig as a platform Drilling rig equipment & rigs in key markets specification ri
Slide 5: Parker Wellbore Outperforming Expectations
Nabors Industries and Parker Wellbore Parker Wellbore Outperforming Expectations Incremental Expands Nabors Adds Quail Enhances scale Strengthens adjusted FCF Drilling Solutions Tools to NDS with growing international and improves (NDS) portfolio franchise presence leverage metrics On track to deliv
Slide 6: Active Owned Rigs in Four Key Regions
Nabors & Parker Active Rigs Worldwide Active Owned Rigs in Four Key Regions 70 USA Active rigs in the U.S., with almost half in West Texas and another quarter in the Bakken. 52 KSA A key growth region with 52 active rigs operated by SANAD, our JV with Saudi Aramco. 20 LATAM Argentina is the leading
Slide 7: Drivers of Growth
Drivers of Growth Focused on Advanced Technology to Drive Solutions Capitalizing on Driving healthy Expanding our Innovating Reducing carbon global expansion margins in customer base advances in intensity Lower 48 Drilling drilling Leveraging our Demonstrating Developing Setting the Energy
Slide 8: Recent Highlights
NABORS INDUSTRIES Recent Highlights Parker Wellbore acquired in late 1Q; integration on track; expected to deliver synergies of $40 million in 2025 Deployed 2 rigs in Saudi Arabia and 2 rigs in Kuwait in 2Q; in 3Q: 1 deployment planned in Saudi Arabia, 1 in Kuwait (now operating), 1 in India (now op
Slide 9: Key Value Drivers
Key Value Drivers 1 2 3 4 5 Expanding & Performance Advancing Focused on our Leading in enhancing our excellence in the technology & commitment to Sustainability International Lower 48 innovation with de-lever and the Energy business demonstrated Transition results N A B O R S . C O M 9
Slide 10: Focus on Improving International Rig Economics
1 Resilience Leading to Growth in Our International Segment Focus on Improving International Rig Economics International Drilling International Drilling Daily Rig Revenue Daily Adjusted Gross Margin $50,000 $20,000 $40,000 $16,000 Expanding $30,000 $12,000 International margins as we grow our fleet
Slide 11: Focus on Improving International Rig Economics
1 Resilience Leading to Growth in Our International Segment Focus on Improving International Rig Economics International Drilling International Drilling Daily Rig Revenue Adjusted Daily Gross Margin $50,000 $20,000 $40,000 $15,000 Enhancing both the top and $30,000 bottom line $10,000 $20,000 $5,000
Slide 12: Significant Opportunity for Additional International Rigs through YE 2025
1 Resilience Leading to Growth in Our International Segment Significant Opportunity for Additional International Rigs through YE 2025 International Drilling Opportunity Set Rig Count Operating 110 Between Contracts 105 Restart Awarded/Contracted Wind- Actively pursuing 100 down End of multiple 95 2
Slide 13: Delivering Solid Results in a Challenging Market
2 Performance Excellence In The Lower-48 Delivering Solid Results in a Challenging Market Lower 48 Drilling Lower 48 Drilling Daily Rig Revenue Adjusted Daily Gross Margin $40,000 $20,000 $32,000 $16,000 $24,000 $12,000 Resilient daily revenue and margins leading to $16,000 $8,000 free cash flow $8,
Slide 14: Delivering Strong Results in a Challenging Market
2 Performance Excellence In The Lower-48 Delivering Strong Results in a Challenging Market Lower 48 Drilling Lower 48 Drilling Daily Rig Revenue Adjusted Daily Gross Margin $40,000 $20,000 $30,000 $15,000 Navigating market $20,000 $10,000 volatility with pricing discipline $10,000 $5,000 $0 $0 1Q 2Q
Slide 15: Nabors Drilling Solutions Leveraging Rig as a Platform
3 Improving Outlook For Our Technology & Innovation Data Integration / Performance Software Nabors Drilling Solutions Drill Pipe and BOP Rentals leveraging ‘Rig as a Platform’ Automated Casing Running Managed Pressure Drilling Wellbore Placement N A B O R S . C O M 15
Slide 16: Differentiation that Creates Competitive Advantage
3 Improving Outlook For Our Technology & Innovation SCALABLE SOLUTIONS Scalable solutions on any Nabors or third-party rig, requiring limited capital investment NABORS DRILLING SOLUTIONS DIVERSE PORTFOLIO Differentiation that Creates Competitive Unique portfolio of technologies and alliances with le
Slide 17: Ecosystem Designed for Collaboration and Value Creation
3 Improving Outlook For Our Technology & Innovation Ecosystem Designed for Collaboration and Value Creation DRILLING CONTRACTORS E&P CUSTOMERS Maximize Production Solutions to optimize wellbore placement and return on investment Mitigate Risk Solutions to reduce adverse drilling outcomes Minimize Co
Slide 18: NDS – Technology Enhancing Performance
NABORS INDUSTRIES NDS – Technology Enhancing Performance Our Portfolio: Solution Function Benefit Performance Software Performance Software Performance Software Rockit® and REVit® Automated drilling optimization Faster, more consistent ROP, reduced human error SmartSuiteTM* Rig-based automation soft
Slide 19: A Framework for Thinking about NDS
3 Improving Outlook For Our Technology & Innovation A Framework for Thinking about NDS Growth Drivers Addressable Market Automation and remote Content ▲ INDUSTRY RIG COUNT operations $ / RIGS U.S. and international Penetration NDS Enables Efficiency, consistency • Number of services per rig markets
Slide 20: NDS – Global Market Reach
3 Improving Outlook For Our Technology & Innovation NDS – Global Market Reach L48 – Offshore – Alaska >20 Countries U.S. International ($ millions) 1Q’24 2Q’24 3Q’24 4Q’24 1Q’25 2Q’25 ($ millions) 1Q’24 2Q’24 3Q’24 4Q’24 1Q’25 2Q’25 NDS U.S. Rev. $48.2 $50.7 $44.6 $41.6 $52.8 $103.2 NDS Int’l Rev. $
Slide 21: NDS Margin Gains Fueled by Increasing Penetration and Improving Service-line Mix
3 Improving Outlook For Our Technology & Innovation NDS Margin Gains Fueled by Increasing Penetration and Improving Service-line Mix NDS Revenue, Adjusted EBITDA & Adjusted Gross Margin % $600 60% $500 50% Adjusted gross $400 40% margin of 53% $300 30% $200 20% YTD 2025 $100 10% $- 0% Revenue Adjust
Slide 22: NDS Portfolio Demonstrating Value, Globally
3 Improving Outlook For Our Technology & Innovation NDS Portfolio Demonstrating Value, Globally Revenue Growth since Inception NDS - International Revenue $250 1H 2025 Revenue $200 $ Millions $150 $100 U.S. $50 International 59% $- 41% 2016 2017 2018 2019 2020 2021 2022 2023 2024 1H'25* NDS - U.S. R
Slide 23: Automation Delivers Four-Well Pad 25.5 Days Ahead of Schedule
3 Improving Outlook For Our Technology & Innovation Automation Delivers Four-Well Pad 25.5 Days Ahead of Schedule for New Customer Through experienced oversight, Nabors delivered a high-performance Nabors eliminated the commonly anticipated ramp-up period by rollout for a new customer. Automation ac
Slide 24: Executing on Leverage Optimization
4 Progress on Our Commitment to De-lever Executing on Leverage Optimization At closing in March, Parker held $178 million of gross debt and $85 million in cash Post-close, transitioned the debt to Nabors’ revolving credit facility, resulting in immediate savings by eliminating higher interest lo
Slide 25: Our Energy Transition and Sustainability Strategy
5 Leading in Sustainability and the Energy Transition Our Energy Transition and Sustainability Strategy Improve Collaborate Partner in Invest in Nabors’ with peers to adjacent companies environmental reduce carbon markets that developing footprint output in our leverage our green industry talent and
Slide 26: Nabors Initiatives to Lower Emissions
5 Leading in Sustainability and the Energy Transition Nabors Initiatives to Lower Emissions Electrification Engine Optimization Pursuing Energy Efficient Lighting Multiple Decarbonization Pathways Emissions Monitoring Energy Storage* Green Fuels* *Note: Energy Storage and Green Fuels are under devel
Slide 27: Appendix
(i) NABORS Appendix
Slide 28: Rig Utilization and Availability, June 30, 2025
Rig Utilization and Availability, June 30, 2025 U.S. Lower-48 U.S. Offshore Alaska International Total High Spec(2) Rig Fleet(1) 310 110 13 17 130 Rigs on Revenue(1) 159 60 3 7 86 Utilization(1) 51% 55% 23% 41% 66% (1) As of June 30,2025 (2) Excludes non-high spec rigs in the Lower 48 N A B O R S .
Slide 29: Reconciliation of Non-GAAP Financial Measures to Net Income (Loss)
Reconciliation of Non-GAAP Financial Measures to Net Income (Loss) Adjusted EBITDA represents net income (loss) before, income taxes, investment income (loss), interest expense, gain on bargain purchase, other, net and depreciation and amortization. Adjusted EBITDA is a non-GAAP financial measure an
Slide 30: Reconciliation of U.S. Drilling Segment Adjusted Gross Margin
Reconciliation of U.S. Drilling Segment Adjusted Gross Margin to U.S. Drilling Segment Adjusted Operating Income Adjusted gross margin by segment represents adjusted operating income (loss) plus general and administrative costs, research and engineering costs and depreciation and amortization. Three
Slide 31: 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 wit
Slide 32: Reconciliation of Adjusted EBITDA by Segment
Reconciliation of Adjusted EBITDA by Segment to Adjusted Operating Income (Loss) by Segment Three Months Ended June 30, 2025 Adjusted EBITDA by segment represents adjusted income (loss) plus depreciation and amortization. Other U.S. International Drilling Rig reconciling Total Drilling Drilling Solu
Slide 33: Reconciliation of Adjusted Free Cash Flow
Reconciliation of Adjusted Free Cash Flow to Net Cash Provided by Operating Activities Adjusted free cash flow represents net cash provided by operating activities less cash used for capital expenditures, net of proceeds from sales of assets, and before cash paid for acquisition related costs. Manag
Slide 34: NABORS.COM
NABORS INDUSTRIES LTD. Contact Us: William C. Conroy, CFA 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 NABORS CORPORATE SERVICES 515 W. Greens Road Suite 1200 Houston,