Nabors Industries Ltd. · NYSE:NBR
Nabors Industries — Q4 2017 Earnings Presentation
17 slides from Nabors Industries's earnings presentation, Feb 28, 2018
Slide 1: Forward-Looking Statements
2 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 matters
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
3 Our businesses depend, to a large degree, on the level of spending by oil and gas companies for exploration, development and production activities. Therefore, sustained lower oil or natural gas prices that have a material impact on exploration, development or production activities could also mater
Slide 3: Recent Company Highlights
4 Recent Company Highlights Closed acquisition of Tesco Corporation in ~$180mm all-stock transaction (Dec 15, 2017) Commenced operations on SANAD joint venture with Saudi Aramco (Dec 1, 2017) Acquired Robotic Drilling Systems AS ("RDS") in September, a provider of automated tubular and tool handling
Slide 4: Recent Company Highlights
Closed acquisition of Tesco Corporation in ~$180mm all-stock transaction (Dec 15, 2017) Commenced operations on SANAD joint venture with Saudi Aramco (Dec 1, 2017) Acquired Robotic Drilling Systems AS ("RDS") in September, a provider of automated tubular and tool handling equipment for the onshore a
Slide 5: Financial Summary
6 Financial Summary See reconciliations in the Appendix Diluted Earnings (Losses) Per Share from continuing operations Includes impairments of $0.87 per share related to the impairment of certain assets and other charges ($000 except EPS) 4Q16 1Q17 2Q17 3Q17 4Q17 Operating Revenues $538,948 $562,550
Slide 6: Current Debt and Liquidity
Current Debt and Liquidity (As of December 31, 2017) (1) See reconciliations in the Appendix (2) Capitalization defined as Net Debt plus Shareholders’ Equity (3) Coverage defined as TTM Adjusted EBITDA / TTM Interest Expense (4) Leverage defined as Net Debt / TTM Adjusted EBITDA Note: Subtotals may
Slide 7: Current Debt and Liquidity
Current Debt and Liquidity (As of December 31, 2017) High 4Q16 3Q17 4Q17 Change 4Q17 from 3/31/12 12/31/16 9/30/17 12/31/17 ($MM's) 3Q17 Total Debt $4,750 $3,579 $3,959 $4,028 $69 Cash and ST Investments 494 295 220 365 145 Net Debt") $4,256 $3,283 $3,738 $3,663 ($76) Shareholders’ Equity 5,811 3,24
Slide 8: Rig Fleet: 4Q17 Rig Utilization & Availability
Rig Fleet(1) 4Q17 Average Rigs Working Average Utilization U.S. Lower 48 AC > 1500HP 114 88 77% AC Others 72 10 14% SCR Rigs 24 3 13% U.S. Lower 48 Total 210 101 48% U.S. Offshore 14 2 17% Alaska 16 3 19% Canada 42 14 33% International 163 91 56% Subtotal 445 211 47% PACE®-R800 Rig Construction 1 PA
Slide 9: Lower 48 Rig Utilization by Type
10 Walking Skidding Pad Not Pad Total Capable Capable Rigs Active Total Util. Active Total Util. Active Total Total Active Total Util. Active Total Util. AC 89 139 64% 6 20 30% 95 159 60% 5 27 19% 100 186 54% PACE X 47 47 100% 0 0 0% 47 47 100% 0 0 0% 47 47 100% PACE M800 6 6 100% 0 0 0% 6 6 100% 0
Slide 10: Nabors Drilling Operations
11 Nabors Drilling Operations As of December 31, 2017 Total = 216 116 US 108 Colombia 8 Algeria 4 Ecuador 1 Saudi Arabia 45 Venezuela 5 Kuwait 3 Italy 1 Argentina 15 Oman 4 India 3 UAE 1 Canada 13 Kazakhstan 3 Mexico 2 Russia 0
Slide 11: The New Nabors with Tesco
12 The New Nabors with Tesco Expanded Footprint and Doubled Patent Count NBR Only Tesco Only Both 15,300+ Employees ~1,000 New Employees 28 Active Countries 5 New Countries 450+ Patents ~Doubles Patent Count 2,600+ TDs Sold ~Doubles TD Footprint 2018 Initial Cost Synergy Target: $20mm Expected 2018
Slide 12: PACE-M1000 - Nabors SMARTRig System
13 PACE®-M1000 - Nabors SMARTRigTM System Setting the New Gold Standard for Shale Drilling Pad Optimal Capability With Automated Walking System Side-SaddleTM Rig Configuration Hydraulic Raised Mast & Substructure Hook Load 1,000,000 lbs Setback 900,000 lbs Racking Capacity 30,000ft of 5-7/8” Drill P
Slide 13: PACE-M1000 - Nabors SMARTRig System
4 Pad Optimal Capability With Automated Walking System 2) Side-Saddle™ Rig Configuration 3) Hydraulic Raised Mast & Substructure 4) Hook Load 1,000,000 Ibs 5) Setback 900,000 Ibs 6) Racking Capacity 30,000ft of 5-7/8” Drill Pipe 7) Rigtelligent™ - Integrated Operating System 8) NDS-Ready™ Package PA
Slide 14: Rig Margins & Activity
15 Rig Margins & Activity (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. 1Q17 2Q17 3Q17 4Q17 Drilling Margin(1) Avg. Rigs Working Margin(1) Avg. Rigs Working Margin(1) Avg. Rigs Working Margin(1)
Slide 15: Reconciliation of Adjusted EBITDA to Income (Loss) from Continuing Operations
16 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 c
Slide 16: Reconciliation of Net Debt to Total Debt
17 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
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