Nabors Industries Ltd. · NYSE:NBR
Nabors Industries — Investor Presentation (March 2025)
28 slides from Nabors Industries's investor presentation, Mar 12, 2025
Slide 1: Nabors Industries Transformational Value Creation
March 12, 2025 Nabors Industries Transformational Value Creation
Slide 2: Forward-looking statements
N A B O R S . C O M 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
Slide 3: Strong Drivers of Value Generation
N A B O R S . C O M In 2024, Nabors generated ~$81 million adjusted free cash flow in legal entities outside SANAD (SANAD used $52 million) • Positive contribution from all segments: International Drilling (outside SANAD), U.S. Drilling, Drilling Solutions and Rig Technologies • After ~$200 million
Slide 4: Parker Wellbore Acquisition
N A B O R S . C O M Parker Wellbore Acquisition 4
Slide 5: Addition of Parker Wellbore Drives Significant Benefits
N A B O R S . C O M Addition of Parker Wellbore Drives Significant Benefits Nabors Industries and Parker Wellbore 5 Expands Nabors Drilling Solutions (NDS) Incremental adjusted FCF and improves leverage metrics Strengthens international presence Enhances scale with growing franchise Adds Quail Tools
Slide 6: Parker Brings Impactful Operations to Nabors
N A B O R S . C O M Drilling 36% › 10 land: 8 Int’l (4 contracted) and 2 Alaska (2 working) › 7 barge: 6 U.S. (1 contracted) and 1 Caspian (contracted) OWNED RIGS OPERATIONS AND MANAGEMENT SERVICES 2024 ACTUAL REVENUE › ExxonMobil Hibernia (Canada) › Cenovus West White Rose (Canada) › Hilcorp (Alask
Slide 7: The Transaction
N A B O R S . C O M The Transaction Nabors Industries and Parker Wellbore 7 • Nabors acquires Parker Wellbore: 4.8 million shares of Nabors common stock subject to certain adjustments Approximately $100 million of net debt • Normalized full-year 2025E adjusted EBITDA of ~$190 million including $40 m
Slide 8: Projected 2025 Annualized Contributions from Parker
N A B O R S . C O M Projected 2025 Annualized Contributions from Parker Nabors Industries and Parker Wellbore Market Outlook and Parker Contribution: 8 ⟩ Growth in lateral lengths in the Lower-48 rig market increases demand for Parker’s drill pipe ⟩ Alaska and Offshore on balance stable ⟩ Drilling a
Slide 9: SANAD Saudi Aramco Nabors Drilling
N A B O R S . C O M SANAD Saudi Aramco Nabors Drilling 9
Slide 10: SANAD (Saudi Aramco Nabors Drilling) Overview
N A B O R S . C O M SANAD (Saudi Aramco Nabors Drilling) SANAD Overview ⟩ SANAD is a 50/50 joint venture between Saudi Aramco and Nabors Industries ⟩ A flagship project strategically established as part of the Kingdom’s industrial expansion and job creation efforts ⟩ Agreement to deploy and operate
Slide 11: SANAD Operating Rig Fleet
N A B O R S . C O M SANAD Operating Rig Fleet SANAD 11 Leased Rigs 25 RIGS OPERATING FLEET Newbuild Rigs 10 RIGS › Wholly-owned by SANAD › 5 rigs under construction for deployment in 2025 and early 2026 › Aramco and Nabors committed to deploy a total of 50 newbuild rigs over a 10-year period (5 rigs
Slide 12: SANAD – Capitalization and Cash Flows
N A B O R S . C O M SANAD – Capitalization and Cash Flows SANAD ~$394 million ⟩ $20 million cash (equity) ⟩ 10 rigs and assets* SANAD Nabors Industries Saudi Aramco ⟩ 28 rigs 12 CONTRIBUTIONS THRU 2018 LEASED RIGS STARTING IN 2017 ~$70 million DISTRIBUTIONS IN 2021 AND 2022 ~$394 million ⟩ $20 milli
Slide 13: Saudi Arabia Drilling Operation - Cash Flows
N A B O R S . C O M Saudi Arabia Drilling Operation - Cash Flows SANAD SANAD Nabors Industries Saudi Aramco 13 Revenue - Operating Expense - Lease Expense Adjusted Gross Margin - SG&A Adjusted EBITDA - Capital Expenses Working Cap and Cash Taxes Adjusted FCF Lease Payment Potential Future Distributi
Slide 14: Newbuild Program Rationale
N A B O R S . C O M Newbuild Program Rationale SANAD ⟩ High-impact Growth Initiative in Saudi Arabia: A unique, large-scale expansion project in the premier global market ⟩ Strategic Partnership with Saudi Aramco: Collaborating with the world’s leading energy company ⟩ Solid Financial Returns: Recov
Slide 15: Transformational Value Creation for Our Stockholders
N A B O R S . C O M • Based on forecasted 2025 EBITDA of $300m and a 9.5x EV/EBITDA multiple • Nabors’ 50% ownership equates to $1.4bn of enterprise value today Transformational Value Creation for Our Stockholders SANAD 15 Now At Estimated Cash Flow Crossover in Late 2027 Assumes: ⟩ Multiple of 9.5x
Slide 16: Robust Businesses Outside of SANAD
N A B O R S . C O M Robust Businesses Outside of SANAD 16
Slide 17: Nabors Generated Solid FCF in Legal Entities Outside SANAD
N A B O R S . C O M Nabors Generated Solid FCF in Legal Entities Outside SANAD Nabors Industries 17 ⟩ Before Parker impact, Nabors expects to generate ~$150 million adjusted FCF outside SANAD in 2025 ⟩ Cash flow in legal entities outside SANAD available for corporate uses and Nabors debt obligations
Slide 18: Projected Operational Cash Generation for 2025
N A B O R S . C O M Projected Operational Cash Generation* for 2025 Nabors Industries 18 ⟩ Before Parker impact, total adjusted EBITDA less CAPEX for operations projected at ~$460 million in 2025, excluding SANAD ⟩ Lower 48 market expected to be a significant contributor of cash flow generation desp
Slide 19: Projected Gross Debt Reduction in 2025
N A B O R S . C O M Projected Gross Debt Reduction in 2025 Nabors Industries 19 (Millions) $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 Nabors 2025 Gross Debt Outlook $2,360 ⟩ Nabors expects to generate ~$150 million adjusted FCF outside SANAD excluding contribution from Parker ⟩ Parker’s cash at clos
Slide 20: Shifting Valuation Towards Sum-of-the-Parts
N A B O R S . C O M Shifting Valuation Towards Sum-of-the-Parts 20
Slide 21: Nabors Earnings-Power Outlook
N A B O R S . C O M Nabors Earnings-Power Outlook Nabors Industries and Parker Wellbore 21 Lower 48 Alaska and U.S. Offshore ⟩ Rig count between 62 and 64 ⟩ Daily adjusted gross margin of ~$14,600 ⟩ Combined adjusted EBITDA down ~5% ⟩ Between $710 million and $720 million ⟩ Adjusted EBITDA of ~$30 m
Slide 22: Nabors – SOTP Framework
N A B O R S . C O M Nabors – SOTP Framework Nabors Industries and Parker Wellbore 22 U.S. Drilling SANAD ⟩ ~$410 million ⟩ ~$300 million ⟩ ~$1.1 billion ⟩ ~$30 million Nabors Drilling Solutions Rig Technologies Corporate and Synergies 2025 PF Adj. EBITDA(1) Peer Multiple(2) Implied Enterprise Total
Slide 23: Appendix
N A B O R S . C O M Appendix 23
Slide 24: Valuation Metrics as of 12/31/2024
N A B O R S . C O M Valuation Metrics as of 12/31/2024 Nabors Industries 24 Cash and cash equivalents held outside of SANAD Less: Cash and cash equivalents held by SANAD Cash and cash equivalents, per Balance Sheet $ 160.3 In millions 229.4 389.7 CASH AND CASH EQUIVALENTS: (1) Note 13 in 2024 10-K (
Slide 25: Footnotes, Financial Definitions and Disclaimer
N A B O R S . C O M Footnotes, Financial Definitions and Disclaimer 25
Slide 26: Non-GAAP Definitions
N A B O R S . C O M 26 Non-GAAP Definitions We do not provide a forward-looking reconciliation of our outlook for Segment Adjusted EBITDA, Segment Gross Margin or Adjusted Free Cash Flow, as the amount and significance of items required to develop meaningful comparable GAAP financial measures cannot
Slide 27: Reconciliation of Adjusted Free Cash Flow
N A B O R S . C O M Year Ended (In thousands) December 31 2024 Net cash provided by operating activities 581,432 $ Add: Capital expenditures, net of proceeds from sales of assets (552,421) Adjusted free cash flow 29,011 $ Reconciliation of Adjusted Free Cash Flow to Net Cash Provided by Operating Ac
Slide 28: 4) NABORS
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