Nabors Industries Ltd. · NYSE:NBR
Nabors Industries — Barclays CEO Energy-Power Conference 2020
24 slides from Nabors Industries's conference presentation, Sep 9, 2020
Slide 1: Nabors Industries Ltd. Barclays CEO Energy-Power Conference
9/9/2020Nabors Industries Ltd. Barclays CEO Energy-Power ConferencePresented by: William Restrepo Chief Financial Officer1
Slide 2: Forward-Looking Statements
Forward-Looking StatementsWe 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
Slide 3: Largest Global Land Driller
Largest Global Land Driller10,000Employees60+Nationalities15+COUNTRIESIN MARKETS COMPRISING70%OF GLOBAL O&G PRODUCTION United States Saudi Arabia Colombia Argentina Kazakhstan Oman Canada Mexico Kuwait India Algeria Norway UAE Malaysia350+Land Rigs30+Platform Rigs Russia Indonesia3
Slide 4: Nabors Industries – Generating Value for Stakeholders
Nabors Industries – Generating Value for StakeholdersEnsure client success• Enhance drilling performance • Increase reservoir contact • Deliver better wellsForward looking innovator• Leading the digital drilling revolution • Portfolio of integrated servicesPrioritize FCF and debt reductionNabors’ vi
Slide 5: Strategically Positioned With Our Diversified Portfolio
Strategically Positioned With Our Diversified PortfolioDrilling OperationsSTRONG MULTI-DIMENSIONAL GLOBAL SCALEDrilling SolutionsRig Technologies46% Int’l2019 TotalREVENUE58% Int’l1H 2020Working in tandem to generate superior drilling performance2019 Total54% DomesticREVENUE7% Offshore1H 202042% Dom
Slide 6: Redefining the Drilling Ecosystem
Redefining the Drilling EcosystemAdd gray swooshDIGITALIZATIONAUTOMATION INTEGRATIONFOUNDATION Enabled by rig and reduces cycle time Consolidates workflows Replaces 3rd party providers Reduces staffing at the wellsite Pad optimal Integrated subsystems Modular controls6
Slide 7: Nabors' Three Pillars of Strategy
Nabors’ Three Pillars of StrategyKeys to Nabors’ SuccessDrive Operational Excellence and Improve SafetyLead Digital Revolution in DrillingImprove Financial Strength with Free Cash FlowDriving progress on all three pillars simultaneously7
Slide 8: First Pillar of Strategy: Focus on Operational Excellence
First Pillar of StrategyFOCUS ON OPERATIONAL EXCELLENCEDeliver operational excellence in all aspects of our business: operations, financial and ESGFirst Half 2020 Update• Growing market share in key basins of the Lower 48• Industry’s highest Lower 48 margins supported by fleet quality, leading drill
Slide 9: Growing Share with Top L48 E&Ps
Growing Share with Top 20 L48 E&PsDRIVE OPERATIONAL EXCELLENCEFebruary 202018%31%33%June 202023%NBR HP PTEN5% 13%33%3% 15%25%PDS OtherSource: EnverusClients increasingly prefer Nabors rigs,even as market decline increases customers’ optionality among drillers9
Slide 10: Strong Growth in the Lower 48 Margin
Strong Growth in the Lower 48 MarginDRIVE OPERATIONAL EXCELLENCE$11,000$10,000$9,000$8,000$7,000$6,000$5,000Lower 48 Gross Margin per DayUp 51%Solid Margin Growth Driven by: Fleet quality Drilling performance Technology Safety10
Slide 11: Focus on Environmental, Social and Governance
Focus on Environmental, Social and GovernanceDRIVE OPERATIONAL EXCELLENCEPositively impacting our employees, contractors, customers, and the communities we serves• Reduced engine oil use by >300,000 gallons• Completed 17 environmental awareness reviews• Introduced noise-limiting Canrig® Sigma topdri
Slide 12: Focus on Mission Zero
Focus on Mission ZeroDRIVE OPERATIONAL EXCELLENCEStriving to achieve Mission Zero• Nabors is the TRIR leader among major drilling contractors • Nabors TRIR continues to improve while IADC U.S. Land TRIR worsened significantly from 0.89 (Q1 2020) to 1.83 (Q2 2020)2.52.01.51.00.5TRIR Comparison1.84 1.
Slide 13: Second Pillar of Strategy: Extend Superior Technology Roadmap
Second Pillar of StrategyEXTEND SUPERIOR TECHNOLOGY ROADMAP WITH DIGITALIZATION AND NEXT-GEN EQUIPMENTAdvance leadership of the technology transformation to improve safety & performance, while reducing costFirst Half 2020 Update• Introduced RigCLOUD® into the market• Continued penetration of SmartNA
Slide 14: Growing Smart Apps in a Difficult Market
Growing Smart Apps in a Difficult MarketLEAD DIGITAL REVOLUTIONTotal Wells Drilled (1) SmartSLIDE™ 515 SmartNAV™ 1,165SmartApps Penetration RatesNabors Lower 48 Rigs39%Market acceptance of Nabors apps increasing based on:• Technology that generates real value for customers• Optimal mix of scalabilit
Slide 15: The Future of Wellbore Placement is Here
The Future of Wellbore Placement is HereLEAD DIGITAL REVOLUTIONLegacy Service24 people / 6 rigs 5 to 8 people / 6 rigs6 RIGS MANAGED PER POD IN SmartDOCTM3 to 6 field personnel support 6 rigs= DIRECTIONAL DRILLER (DD)= MWD ENGINEERREMOTE DIGITAL SPECIALIST DAY AND NIGHTRIGLINE 24/7 Digital Operation
Slide 16: RigCLOUD Platform
RigCLOUD® PlatformLEAD DIGITAL REVOLUTIONDRIVES APP GROWTH – DIFFERENTIATES NABORS IN THE MARKETData is delivered from edge devices 2 to the cloudEcosystem with Real-time Collaborative Apps3 Real-time visibility and analytics drive performanceRigCLOUD ® EdgeRemote VisualizationRigCLOUD ® LiveOpsRigC
Slide 17: Advancing Automation
Advancing AutomationLEAD DIGITAL REVOLUTIONLeading Robotic Technology• Leading change to next generation of robotic rig equipment through partnerships driving further digital transformation • Full size simulation capabilities and “twin”• All electric, environmentally friendlyCanrig® Sigma PC-3000 Wh
Slide 18: Third Pillar of Strategy: Improve Financial Strength
Third Pillar of StrategyIMPROVE FINANCIAL STRENGTHReduce Debt with Free Cash FlowFirst Half 2020 Update• Building on 2019 free cash flow(1)• 2020 YTD net debt reduction of nearly $100 million• Extended nearly $1 billion in debt maturities• Cash, cash equivalents and S-T investments total $494 millio
Slide 19: Strong Focus on Overhead Costs and Capital Discipline
Strong Focus on Overhead Costs and Capital DisciplineIMPROVE FINANCIAL STRENGTHActions Supporting 2020 Free Cash Flow Totaling $220 millionConsistent reductions in capital spending($ in Millions)Reduced overhead costsRe-evaluated structure and processes$600 $500 $400 $300 $200 $100 $0Capital Expendi
Slide 20: Significant Improvement in Net Debt
Significant Improvement in Net DebtIMPROVE FINANCIAL STRENGTHApproaching $1 billion net debt reduction since 2017 $2.2 billion target$3.9$3.7$3.5$3.3$3.1$2.9$2.7$2.5Net Debt (1)Down 25% since 20177.0x6.0x5.0x4.0x3.0x2.0xNet Debt to EBITDA(2)3+ Turn Improvement2017 2018 2019 1H 20202012 2013 2014 201
Slide 21: Debt Maturity Profile as of June 30, 2020
Debt Maturity Profile as of June 30, 2020IMPROVE FINANCIAL STRENGTH$1,000$800$600$400560484775600484454Debt @ 6/30/2020Total Debt $3.28Bn(2)Cash & Cash Equivalents $0.48Bn$200139 155 193400Total Debt less Cash & Cash Equivalents$2.79Bn(2)$0 2020 2021 2022 2023 2024 2025 2026 2027 2028 Available Liqu
Slide 22: Investment Thesis
Investment ThesisDriving the Evolution of Drilling Technology with the Leading Position in Automated Drilling Systems and Digitalization, the Largest Footprint on a Global Scale and the Most Advanced Rig Fleet22
Slide 23: Investment Thesis: High-Value Growth While Improving Leverage
Investment ThesisHIGH-VALUE GROWTH WHILE IMPROVING LEVERAGEMultiple avenues for growth • Global drilling • Drilling Automation • RoboticsDiversification • Targeting lines of business with high margins and low capital intensityImproving leverage and liquidity • Reducing debt with free cash flow • Ext
Slide 24: Contact us
Contact us:William C. Conroy, CFAEmail: William.conroy@nabors.comKara K. PeakEmail: kara.peak@nabors.comHouston Office515 West Greens Road, Suite 1200 Houston, TX 77067nabors.com
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