Nabors Industries Ltd. · NYSE:NBR
Nabors Industries — Howard Weil 43rd Annual Energy Conference 2015
21 slides from Nabors Industries's conference presentation, Mar 24, 2015
Slide 1: Howard Weil 43rd Annual Energy Conference March 23-25, 2015
Howard Weil 43rd Annual Energy Conference March 23-25, 2015
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: Presentation Overview
Presentation Overview > Merger Update > Nabors’ Mission and Vision > Business Principles > Current Market Management > Managing for the Future 3
Slide 4: Shareholders Approve C&J, NCPS Merger Creates a Leading Diversified Completion & Production Services Provider
Shareholders Approve C&J, NCPS Merger Creates a Leading Diversified Completion & Production Services Provider 4 # 1 Well Servicing Fleet # 1 Fluids Mgmt Fleet # 5 Stimulation Fleet 2 1 – According to CJES 3/5/15 presentation 2 – Post HAL/BHI merger §. Key metrics of the deal and the combined company
Slide 5: Shareholders Approve C&J, NCPS Merger: Key Metrics and Strategic Imperative
§. Key metrics of the deal and the combined company §. Cash contribution of $688mmm §. Nabors will own 53% of the equity §. NewCo estimated debt/TTM adjusted EBITDA at Closing: ~2.2X1 §. Significant liquidity at Closing, including revolver availability of $510mm and $20mm in cash1 §. Strategic imper
Slide 6: Nabors Today: Purpose, Mission, Vision, Values
Nabors’ Today 6 Purpose Mission Vision Values We deliver best-in-class drilling performance through exceptional people, execution, teamwork and innovative solutions To be the driller of choice for employees, customers and investors To responsibly help our customers meet the world’s demand for oil &
Slide 7: Nabors: The World's Largest Land Driller
Nabors: The World’s Largest Land Driller 7 Includes in-country and to be delivered As of 12/31/14 Customers: “Nabors is the premier international driller”* * According to proprietary 3rd Party survey 25,000+ Employees 75 Nationalities 510 Drilling Rigs 25 Countries 65% 35% AC SCR Lower 48 Fleet Flee
Slide 8: World-Class Performance in Safety
World-Class Performance in Safety Consistently Better than the Industry in Every Global Market 8 > Nabors achieved a TRIR of 0.93 in 2014, the first time in the company’s history that TRIR dipped below 1.00; Nabors’ YTD 2015 TRIR improving versus 2014 Nabors Global TRIR 0.80 1.00 1.20 1.40 1.60 1.80
Slide 9: Concentrate on Long-Term Sustainable Markets
9 Concentrate on Long-Term Sustainable Markets Achieve Critical Mass and Add Distinguishable Value to Clients MENA Lower 48 South America Alaska
Slide 10: Pioneering Rig Designs for Every Environment
Pioneering Rig Designs for Every Environment Customers Ask Nabors to Help Solve Their Most Difficult Challenges 10 PACE®-X Use: US Shale, International unconventional and exploration and development Features: 1500HP, X-Y-360° walking, less HSE risk, saves customer time and money Challenge: A rig des
Slide 11: Nabors Financial Capability & Commitment
Nabors Financial Capability & Commitment Liquidity Allows Nabors to Focus on Responsible Growth §. Increasing financial flexibility has been Nabors’ priority over several years §. Significant reinvestment of capital into global expansion and enhancement over same time period §. Liquidity expected to
Slide 12: Land Rig Count Declining in Every Basin
-45% -40% -35% -30% -25% -20% -15% -10% -5% 0% 5% 11/21/14 12/21/14 1/21/15 2/21/15 -45% -40% -35% -30% -25% -20% -15% -10% -5% 0% 5% Land Rig Count Declining in Every Basin Though All Markets Down, Nabors’ Global Breadth Mitigating the Impact 12 Rig Loss from US Peak Rig Loss since 9/30/14 Nabors T
Slide 13: Downturn Sharp in the Lower 48 Market
13 §. Lower 48 §. BHI Rig Count down 46% from peak in the Fourth Quarter §. RigData is down approximately 50% from its peak §. Nabors Lower 48 rig count currently stands at 127, which includes 21 stacked on rate §. Pace of decline improving, however, suggesting more selective rig releases §. Concret
Slide 14: Current International Market Conditions
§. International §. Received requests for rate reductions for rigs on contract from several customers §. Working with them to implement mutually agreeable solutions §. Seeing drilling programs shortened while, in some cases, there are outright releases §. Mexico has become our most challenging marke
Slide 15: Strategies to Navigate the Downturn
15 1. Planned reduction in capital spending to $900mm, excluding NCPS 2. Initiated discussions with customers to high-grade rigs as less-capable rigs roll off 3. Implement innovative pricing structures for all services 4. Lower costs across our supply chain in cooperation with vendors 5. Consolidate
Slide 16: Deployment of Platform Rig MODS 400
16 Quick Facts on the MODS 400: > Proprietary Nabors design > 4600 HP deepwater platform rig designed to withstand tough GOM weather conditions > Mobilization rate initiated upon departure from Corpus Christi ten days ago > Will see the full financial impact of the rig when it goes on full dayrate,
Slide 17: Rigs: The Critical Platform for Future Services
17 Rigs: The Critical Platform for Future Services As Technology Improves, Rigs Will be Central to Services Delivery RigWatch® Integrated MWD and RSS Remote Operations Center Equipment Condition Monitoring REVitTM ROCKit® Non Stop Driller DrillsmartTM Nabors’ in-house technologies provide a performa
Slide 18: Investing in Rig Performance Technology
Investing in Rig Performance Technology Unique IP Provides Customers Faster, More Accurate Drilling 18 Total Control Drilling – Non Stop Driller (NSD) and MPD Choke (TCD) . NSD: Sub-based system enables continuous circulation during pipe connections . Designed to improve safety, minimize connection
Slide 19: 2TD Drilling AS Rotary Steerable System
2TD Drilling AS Rotary Steerable System Recently Acquired Norwegian Start Up Expands IP, Facilitates R&D 20 Capable of Building a 15°/30m Dogleg Mud Turbine Power, No External Parts 2TD SLB Archer BHI Curve HAL CoPilot WFT Rev. Dogleg Severity 15° 15° 15° 10° 10° Power Turbine Turbine Battery Batter
Slide 20: Over 250+ Patents Granted Worldwide
21 Over 250+ Patents Granted Worldwide Nabors’ Extensive Technology Portfolio Provides Performance Edge Rig Intelligence Rig Design Downhole Technology
Slide 21: A Focused, Forward-Looking Land Driller
22 A Focused, Forward-Looking Land Driller Financially Flexible, Performance-Oriented, Technologically Advanced §. Completion of our transaction with C&J Energy Services will narrow our focus on drilling and substantially enhance our financial flexibility §. Nabors has an unparalleled base of high q
Nabors Industries — Howard Weil 43rd Annual Energy Conference 2015 on 6ix