Nabors Industries Ltd. · NYSE:NBR
Nabors Industries — Q1 2017 Earnings Presentation
17 slides from Nabors Industries's earnings presentation, Apr 27, 2017
Slide 1: 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 that rel
Slide 2: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation refers to certain “non-GAAP” financial measures, such as adjusted EBITDA, adjusted operating income (loss) and net debt. The components of these non-GAAP measures are computed by using amounts that are determined in accordance with accounting principles
Slide 3: Recent Company Highlights
Recent Company Highlights • Deployment of 18 rigs in 1Q17 in the PACE®-M800s), finishing the quarter lower 48 (including two new at 90 rigs on revenue 48 with all X and M800s fully utilized Currently operating 93 rigs in the lower • Still on track to have 100 SmartRigTM units by the end of the year
Slide 4: Financial Overview
Financial Overview '1111NABORS 5
Slide 5: Financial Summary
Financial Summary ($000 except EPS) 1Q16 2Q16 3Q16 4Q16 1Q17 $538,948 $562,550 Operating Revenues $597,571 $571,591 $519,729 Adjusted EBITDA 162,052 165,508 148,739 146,021 99,740 Adjusted Operating Income (53,766) (53,405) (71,974) (70,166) (103,932) GAAP Diluted EPS(1) (1.41)(2) (0.65)(3) (1.17)(4
Slide 6: Debt and Liquidity
Debt and Liquidity As of March 31, 2017 Liquidity (at March 31, 2017) • Cash & Available Capacity:$2,479 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: Sub
Slide 7: Drilling and Rig Services
Drilling and Rig Services '1111NABORS 8
Slide 8: The iRig Ultimate Land Drilling Technology & Capabilities
The iRig® Ultimate Land Drilling Technology & Capabilities Services TM 9 The iRig® Unit Tech The iRackerSystem, Full Automation and Closed Loop System SmartRigTM Unit Software/ RIGTELLIGENT TM INTEGRATED OPERATING SYSTEM RIGWATCH®, ROCKit®, REVit®, Drillsmart®, RECIPE TO DRILLTM, NDS-Ready™ Rigs OTH
Slide 9: 1Q17 Rig Utilization & Availability
1Q17 Rig Utilization & Availability Rigs Working Utilization (1) As of 03/31/17 Note: Subtotals may not foot due to rounding 10 U.S. Lower 48 AC ≥ 1500HP ACOthers SCR Rigs Rig Fleet(1) 1Q17 AverageAverage 108 73 23 7065% 1014% 312% U.S. Lower 48 Total U.S. Offshore Alaska Canada International 205 17
Slide 10: Lower 48 Rig Utilization by Type
Lower 48 Rig Utilization by Type As of March 31, 2017 Rigs 11 Walking Skidding Pad Capable Not Pad Capable Total Active Total Util. 57% 100% 100% 100% 43% 17% 0% 8% 0% Active Total Util. 32% 0% 0% 50% 0% 50% 17% 0% 60% Active Total Total 53% 100% 100% 80% 43% 24% 10% 6% 38% Active Total Util. 21% 0%
Slide 11: Nabors Working Rigs
Nabors Working Rigs As of March 31, 2017 12 Total = 204 Mexico2 PNG1 Italy1 Russia1 Algeria3 Ecuador2 Kuwait2 India2 Colombia8 Venezuela5 Oman4 Kazakhstan4 US96 Saudi Arabia41 Canada17 Argentina15
Slide 12: Saudi Arabia Joint Venture
Saudi Arabia Joint Venture Expecting Robust Growth in Rigs and Well Count(1) ~100% Increase * Manifa Field - Saudi Arabia (1) Saudi Aramco In-Kingdom Total Value Add presentation 13 “Our ability to increase supplies of natural gas to reduce the Kingdom’s reliance on liquid fuel for electricity gener
Slide 13: Saudi Arabia Joint Venture
Saudi Arabia Joint Venture Expecting Robust Growth in Rigs and Well Count” Future Drilling Well Count(? 1,400 4,200 Increase 600 400___Gas* 200 + inclides Unconventional Gas ° 2015 2020 2025 “Our ability to increase supplies of natural gas to reduce the Kingdom’s reliance on liquid fuel for electric
Slide 14: Rig Margins & Activity
Rig Margins & Activity Working (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. 15 Drilling 2Q16 3Q16 4Q16 1Q17 Margin(1) Avg. Rigs Working Margin(1) Avg. Rigs Working Margin(1) Avg. Rigs Working Ma
Slide 15: Reconciliation of Adjusted EBITDA to Income (Loss) from Cont. Operations Before Income Taxes
Reconciliation of Adjusted EBITDA to Income (Loss) from Cont. Operations Before Income Taxes Adjusted EBITDA is computed by subtracting the sum of direct costs, general and administrative expenses and research and engineering expenses from operating revenues. Adjusted operating income (loss) is comp
Slide 16: Reconciliation of Net Debt to Total Debt
Reconciliation of Net Debt to Total Debt Net debt is computed by subtracting the sum of cash 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 with GAAP. However, m
Slide 17: Reconciliation of Net Debt to Total Debt
Reconciliation of Net Debt to Total Debt Net debt is computed by subtracting the sum of cash 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 with GAAP. However, m