Nabors Industries Ltd. · NYSE:NBR
Nabors Industries — Q1 2020 Earnings Presentation
13 slides from Nabors Industries's earnings presentation, May 6, 2020
Slide 1: Nabors Industries 1Q 2020 Earnings Presentation
NABORS INDUSTRIES 1Q 2020 Earnings Presentation Wednesday, May 6, 2020 Wednesday, May 6th 2020
Slide 2: Forward Looking Statements
Forward Looking Statements We often discuss expectations regarding our future markets, demand for our products and services, and Our businesses depend, to a large degree, on the level of spending by oil and gas companies for exploration, our performance in our annual, quarterly, and current reports,
Slide 3: Recent Company Highlights
Recent Company Highlights Proactive multifaceted response globally safeguarding employee health, business continuity and financial sustainability Amended the 2018 RCF and extended nearly $1 billion of debt maturities Repurchased ~ $135 million of debt in the open market International deployments: •
Slide 4: 1Q Rig Utilization and Availability
1Q Rig Utilization and Availability 1Q20 Average Average Rig Fleet (1) Rigs Working Utilization U.S. Lower 48 High Spec 110 87 84% Legacy 80 2 1% U.S. Lower 48 190 89 47% U.S. Offshore 12 4 33% Alaska 16 3 19% Canada 35 17 49% International 148 87 59% Total Fleet 401 200 50% (1) As of March 31, 2020
Slide 5: Lower 48 Rig Utilization by Type on 3/31/2020
Lower 48 Rig Utilization by Type on 3/31/2020 (1) Rig Type Total Rigs Active(1) Total % Util. High Spec 78 110 71% Legacy 2 80 3% Total 80 190 42% (1) Count as of March 31, 2020. 5
Slide 6: Focus on Mission Zero -- Driving Safety Performance
Focus on Mission Zero -- Driving Safety Performance IADC Lower 48 solidly 1.50 outperforming the 0.99 industry-average NBR reported TRIR 6
Slide 7: Successfully Improving Customer Mix
Successfully Improving Customer Mix % of Lower 48 Revenue Market Peak - 2014 1Q 2020 24% Growing position with 41% 48% 4% the top customers in 72% the Lower 48 11% Tier 1 Tier 2 Tier 3 7
Slide 8: Continuing to Build Market Share with the Supermajors
Continuing to Build Market Share with the Supermajors 2014 1Q 2020 The leader in the NBR 9% 13% Supermajors 22% HP 7% 6% 34% market, PTEN 8% ESI Nabors gained 22% PDS 11% 12% compared to Other 39% 28% market peak in 54 Active AC 1500 Rigs with 109 Active AC 1500 Rigs 2014 Supermajors with Supermajor
Slide 9: Powering Rigs with Alternative/Dual Fuel
Powering Rigs with Alternative/Dual Fuel Nabors has long history of deploying rigs powered by alternative power sources • Deployed first unit in 1985 on North Slope • Highline capable • Gas capable w/turbine • Today’s active North Slope fleet is highline-capable • Lower 48 Highline power Natural gas
Slide 10: Tubular Running Services
Tubular Running Services Reinventing workflows, while delivering superior returns Automation and Leverage global Superior Financial 1 Integration 2 footprint to drive growth 3 Returns • Integrated field organization creates synergies • Growing relative presence in U.S. and and lowers cost of deliver
Slide 11: Drilling Automation
Drilling Automation Industry leading digital products supported by scalable workflows Product Description Competitive Advantages Value Creation Intuitive directional steering • Most sought after oscillation system by Operators and DD service providers Deployed on tens of control system that increase
Slide 12: Future of Wellbore Placement
Future of Wellbore Placement Current Approach VERSUS New Approach with Automation and Digital Workflows Currently, requires 24 people to Between 5 to 8 people required for 6 rigs, up to an 80% reduction staff 6 rigs (4 people per rig) 6 RIGS MANAGED PER POD Option 1: 3 roving field persons for 6 rig
Slide 13: Debt Maturity Profile as of March 31, 2020
Debt Maturity Profile as of March 31, 2020 Debt @ 03/31/2020 As of May 1, 2020 Total Debt: $3.39Bn(2) outstanding balances maturing in 2020 & 2021 are Cash & Cash Equivalents $0.49Bn $139 million & $177 million, Total Debt less Cash & Cash Equiv. $2.90Bn(2) respectively (1)(2) (1) (1) Annual figures