Nabors Industries Ltd. · NYSE:NBR
Nabors Industries — Q1 2022 Earnings Presentation
27 slides from Nabors Industries's earnings presentation, Apr 27, 2022
Slide 1: 1Q 2022 Earnings Presentation
NABORS INDUSTRIES LTD. April 28, 2022 1Q 2022 Earnings Presentation
Slide 2: Forward Looking Statements
NABORS.COM 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
Slide 3: Rig Utilization and Availability
NABORS.COM 3 3/31/2022 Rig Utilization and Availability RIG FLEET(1)(2) 330 RIGS ON REVENUE(1) 162 UTILIZATION AT 3/31/2022 49% TOTAL U.S. OFFSHORE 12 3 25% 16 4 25% ALASKA INTERNATIONAL 133 73 55% 111 86 77% U.S. LOWER-48 HIGH SPEC(2) (1) As of March 31, 2022 (2) Excludes non-high spec rigs in the
Slide 4: Recent Highlights
NABORS.COM Improving liquidity and leverage • Reduced net debt by $55M in 1Q’22 • $131M in warrant exercises in 1Q’22 • Executed a new revolving credit facility, expires in 2026 1Q 2022 adjusted EBITDA of $131M Sequential improvements in U.S. Drilling and NDS Resilience in International Drilling mar
Slide 5: Five Keys to Excellence
NABORS.COM Performance excellence in the Lower-48 Resilience leading to growth in our International segment Technology & innovation rapidly taking hold in the market Progress on our commitment to de-lever Leading in Sustainability and the Energy Transition Five Keys to Excellence 2 3 4 5 1
Slide 6: Performance Excellence in the Lower-48
NABORS.COM 6 Improving revenue and margins on growing rig activity 1 Performance Excellence In The Lower-48 Scaling up in a Robust Market 0 10 20 30 40 50 60 70 80 90 4Q 1Q 2Q 3Q 4Q 1Q 2020 2021 2022 L48 Drilling Average Rig Count $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 4Q 1Q 2Q 3Q 4Q 1Q 20
Slide 7: Five Keys to Excellence
NABORS.COM Performance excellence in the Lower-48 Resilience leading to growth in our International segment Technology & innovation rapidly taking hold in the market Progress on our commitment to de-lever Leading in Sustainability and the Energy Transition 2 3 4 5 1 Five Keys to Excellence
Slide 8: Results Bolstered by Strong International Margins and Rig Counts
NABORS.COM -80% -60% -40% -20% 0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q Q4 Q1 2020 2021 2022 Change in Average Rig Counts(1) NBR International NBR Lower 48 Lower 48 Market $- $5,000 $10,000 $15,000 1Q 2Q 3Q 4Q 1Q 2Q 3Q Q4 Q1 2020 2021 2022 International Adjusted Gross Margin per day 8 Results Bolstered by Strong Int
Slide 9: Significant International Opportunity
NABORS.COM 9 Significant International Opportunity Resilience Leading to Growth in Our International Segment • 50 rigs over the next 10 years, awarded 5 rigs to-date • First deployment expected 2Q’22 • ~ $150M capital expense expected in 2022, internally funded by SANAD • 6-year initial contracts, f
Slide 10: Five Keys to Excellence
NABORS.COM Performance excellence in the Lower-48 Resilience leading to growth in our International segment Technology & innovation rapidly taking hold in the market Progress on our commitment to de-lever Leading in Sustainability and the Energy Transition 2 3 4 5 1 Five Keys to Excellence
Slide 11: Ground-Breaking and Scalable Technology for the Future
NABORS.COM 11 Ground-Breaking and Scalable Technology for the Future Improving Outlook For Our Technology & Innovation PACE®-R801 Successfully completed its third pad for a supermajor in the Permian Basin Nabors PACE®-R801: Industry’s First Fully Automated Land Rig 1 Field performance on par with Na
Slide 12: NDS Capitalizing on Growing Rig Count and Higher Penetration
NABORS.COM 20% 25% 30% 35% 40% 45% 50% 55% $- $10 $20 $30 $40 $50 $60 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2020 2021 2022 NDS Revenue & Adjusted Gross Margin Revenue Adjusted Gross Margin % Adjusted Gross Margin 12 NDS Capitalizing on Growing Rig Count and Higher Penetration Improving Outlook For Our Technology & I
Slide 13: Customer Adoption Fueling Rapid NDS Footprint Expansion
NABORS.COM 13 Customer Adoption Fueling Rapid NDS Footprint Expansion Improving Outlook For Our Technology & Innovation 0 20 40 60 80 100 120 140 160 180 ROCKit REVit SmartDRILL U.S. Performance Software Installs 2020 3Q 2020 4Q 2021 1Q 2021 2Q 2021 3Q 2021 4Q 2022 1Q 35 45 52 58 64 71 95 0 10 20 30
Slide 14: Smart Suite Growth Trajectory Validates Customer Acceptance
NABORS.COM 0 200 400 600 800 1000 1200 1400 1600 1800 Q2'17 Q4'17 Q2'18 Q4'18 Q2'19 Q4'19 Q2'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Cumulative Number of Wells Drilled 14 Smart SuiteTM Growth Trajectory Validates Customer Acceptance Improving Outlook For Our Technology & Innovation • 100% Customer Re
Slide 15: Five Keys to Excellence
NABORS.COM Performance excellence in the Lower-48 Resilience leading to growth in our International segment Technology & innovation rapidly taking hold in the market Progress on our commitment to de-lever Leading in Sustainability and the Energy Transition 2 3 4 5 1 Five Keys to Excellence
Slide 16: Significant Headway toward Financial Goals
NABORS.COM $- $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2018 2019 2020 2021 2022 Billions Net Debt 16 Significant Headway toward Financial Goals Progress on Our Commitment to Delever 4 $1.65B Net Debt reduction from previous high in 1Q 2018 $1.65
Slide 17: Debt Maturity Profile as of 3/31/22
NABORS.COM 84 177 745 558 700 390 $0 $200 $400 $600 $800 $1,000 2022 2023 2024 2025 2026 2027 2028 Million Notes Outstanding 17 Debt Maturity Profile as of 3/31/22 Progress on Our Commitment to Delever In 1Q 2022: • Reduced the face value of outstanding notes by $208 million • Warrant exercises resu
Slide 18: Five Keys to Excellence
NABORS.COM Performance excellence in the Lower-48 Resilience leading to growth in our International segment Technology & innovation rapidly taking hold in the market Progress on our commitment to de-lever Leading in Sustainability and the Energy Transition 2 3 4 5 1 Five Keys to Excellence
Slide 19: Moving Forward on the Energy Transition
NABORS.COM Expanding the implementation of solutions on third-party rigs Energy Efficiency & Emission Reduction Technologies Geothermal Development Leveraging IP to create products applicable beyond the rigs, including carbon capture technologies Expansion Beyond Oil & Gas Further differentiating Na
Slide 20: Growing Commitment to Operational and Environmental Stewardship
NABORS.COM 20 Leading in the Sustainability and Energy Transition • Advanced control system optimizes the efficiency of fuel consumption • Deploying energy storage systems on multiple rigs • Introducing innovative fuel enhancer to reduce fuel consumption and GHG emissions • Achieved approximately a
Slide 21: Geothermal Market Technology Advancements
NABORS.COM Geothermal Market Technology Advancements Ubiquitous Ability to create heat reservoirs by drilling into deep, hard rock Technological advancements are enabling wide-scale commercial geothermal development Innovative Drilling Technologies Reducing cost per energy-unit produced by using and
Slide 22: Appendix
NABORS.COM Appendix 22
Slide 23: Reconciliation of Non-GAAP Financial Measures to Net Income (Loss)
NABORS.COM 23 Reconciliation of Non-GAAP Financial Measures to Net Income (Loss) Adjusted EBITDA represents net income (loss) before income (loss) from discontinued operations, net of tax, income taxes, investment income (loss), interest expense, other, net and depreciation and amortization. Adjuste
Slide 24: Three Months Ended March 31, December 31, March 31, 2021 021 2022 Lower 48
NABORS.COM Three Months Ended March 31, December 31, March 31, 2021 2021 2022 Lower 48 - U.S. - Drilling Adjusted operating income (31,022) $ (25,474) $ (14,596) $ Plus: General and administrative costs 4,279 4,610 4,447 Plus: Research and engineering 644 1,064 1,638 GAAP Gross Margin (26,099) (19,8
Slide 25: Reconciliation of Net Debt to Total Debt
NABORS.COM 25 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
Slide 26: Reconciliation of Adjusted EBITDA by Segment to Adjusted Operating Income (Loss)
NABORS.COM 26 Reconciliation of Adjusted EBITDA by Segment to Adjusted Operating Income (Loss) by Segment Adjusted EBITDA by segment represents adjusted income (loss) plus depreciation and amortization.. (In Thousands) Three Months Ended March 31, 2022 U.S. Drilling Canada Drilling International Dri
Slide 27: Contact Us
NABORS INDUSTRIES LTD. NABORS.COM NABORS CORPORATE SERVICES 515 W. Greens Road Suite 1200 Houston, TX 77067-4525 @naborsglobal Contact Us: William C. Conroy, CFA VP - Corporate Development and Investor Relations William.Conroy@nabors.com Kara K. Peak Director - Corporate Development and Investor Rel