Nabors Industries Ltd. · NYSE:NBR
Nabors Industries — Q1 2014 Earnings Presentation
22 slides from Nabors Industries's earnings presentation, Apr 23, 2014
Slide 1: 1Q14 Earnings Presentation
vert_photos1.jpgnbr_alt_logo_horz2.jpg1Q14 Earnings Presentation April 23, 2014 Presenters: Anthony G. Petrello Chairman, President & Chief Executive Officer William Restrepo Vice President & Chief Financial Officer
Slide 2: Forward-Looking Statements
nbr_alt_logo_horz2.jpgForward-Looking Statements 2 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 i
Slide 3: Recent Highlights
nbr_alt_logo_horz2.jpg\\Houfile1\Home1\Tyler.Renaudin\Desktop\125_K8V0477.jpg3 Recent Highlights
Slide 4: Improving Financial Flexibility
vert_photos2.jpgnbr_alt_logo_horz2.jpgImproving Financial Flexibility 4 (1)Capitalization defined as Net Debt plus Shareholders’ Equity Note: Subtotals may not total due to rounding High 3/31/12 End 2013 12/31/13 Current 3/31/14 Change 2012-2013 Change High-1Q14 ($MM's) Total Debt $4,773 $3,914 $3,8
Slide 5: Financial Summary
vert_photos2.jpgnbr_alt_logo_horz2.jpg5 Financial Summary ($000’s except EPS) 1Q13 2Q13 3Q13 4Q13 1Q14 Revenue $1,538,373 $1,459,326 $1,548,965 $1,605,390 $1,587,173 EBITDA 412,503 355,814 439,337 437,242 391,168 Operating Income 143,138 89,604 165,893 159,584 109,041 Diluted EPS(1) $0.31 $0.08 ($0.
Slide 6: Drilling & Rig Services
nbr_alt_logo_horz2.jpgG:\NCS\Investor_Relations\Marketing & Branding\Photos\NDUSA\North Dakota\NAB11_0415.jpg6 Drilling & Rig Services
Slide 7: Drilling & Rig Services
nbr_alt_logo_horz2.jpg7 Drilling & Rig Services Adjusted Income (Loss) Derived from Operating Activities ($000’s) 1Q13 2Q13 3Q13 4Q13 1Q14 Drilling & Rig Services: U.S. $77,595 $69,813 $92,710 $75,378 $72,494 Canada 30,518 3,895 12,244 14,536 26,160 International 21,469 32,481 54,271 69,612 48,119 R
Slide 8: Global Rig Fleet Details
nbr_alt_logo_horz2.jpgGlobal Rig Fleet Details 8 AC SCR Mech Total Moving Systems Alaska Land 5 12 2 19 13 Lower 48 172 88 26 286 151 Offshore 9 40 1 50 n/a Canada 17 19 28 64 20 International Land 37 71 28 136 60 Total 240 230 85 555 244 Rig Counts include contracted rigs scheduled to be delivered
Slide 9: Driving Technology & Innovation; Q14 Rig Utilization & Availability
nbr_alt_logo_horz2.jpgG:\NCS\Investor_Relations\Marketing & Branding\US Marketing Pitch Book\Backup\PACE X Rendering Photo.bmpDriving Technology & Innovation PACE® Rig Performance PACE-X Competitor A1 Competitor A2 Competitor B Feet/Day in SCOOP - 2013 PACE-B Competitor A Competitor B Feet/Day in Ba
Slide 10: US Land Drilling Efficiencies Flattening; PACE-X Rig Deployments
vert_photos2.jpgnbr_alt_logo_horz2.jpg4.60 4.80 5.00 5.20 5.40 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 Wells per Rig US Land Drilling Efficiencies Flattening >Initial signs of diminishing efficiency improvements in key shale plays bode well for high-tech rig demand Source: Baker Hughes U.S. Lan
Slide 11: International Working Rigs
nbr_alt_logo_horz2.jpgInternational Working Rigs 13 Algeria 10 Ecuador 6 Kurdistan 2 Romania 1 Angola 1 India 4 Kuwait 2 Russia 5 Argentina 21 Iraq 2 Malaysia 2 Saudi Arabia 32 Colombia 6 Italy 1 Mexico 12 UAE 1 Congo 1 Kazakhstan 1 Oman 4 Venezuela 5 PNG 2 Yemen 2 Total 123 As of 3/31/14 nbr_alt_lo
Slide 12: International Outlook
nbr_alt_logo_horz2.jpg\\Houfile1\Home1\Tyler.Renaudin\Desktop\Cresson Plant-024.jpg15 Completion & Production Services International Outlook >Sustained upturn in the International rig market >Market strength evidenced by renewals and rate increases >New rig construction and major upgrades are impact
Slide 13: Completion & Production Services Adjusted Income Derived from Operating Activities
nbr_alt_logo_horz2.jpgCompletion & Production Services Adjusted Income Derived from Operating Activities 16 ($000’s) 1Q13 2Q13 3Q13 4Q13 1Q14 Completion & Production Services: Completion Services $17,756 $6,870 $13,024 $14,072 ($33,635) Production Services 26,014 23,471 25,909 26,736 30,591 Total $4
Slide 14: U.S. Completion & Production Services Fleet
nbr_alt_logo_horz2.jpgU.S. Completion & Production Services Fleet Region Rigs Frac Crews Trucks Frac Tanks CTU Cementing Wireline SWD Western 181 550 1,824 16 12 Rockies 74 9 58 322 1 9 10 2 Mid-Con 34 1 99 447 8 11 3 Northeast 7 5 100 599 40 15 West Texas 107 3 327 1,236 3 4 3 13 South Texas 28 3 2
Slide 15: Key Takeaways
vert_photos2.jpgnbr_alt_logo_horz2.jpgKey Takeaways 19 >International poised for strong growth beginning in 2H 2014 >U.S. Drilling benefits from PACE®-X deployments and tightening rig market >Larger global opportunity set relative to U.S. peers >Opportunities for additional high-impact investments i
Slide 16: Appendix
nbr_alt_logo_horz2.jpg\\Houfile1\Home1\Tyler.Renaudin\Desktop\007_G5A9435.jpg20 Appendix
Slide 17: EBITDA
nbr_alt_logo_horz2.jpgEBITDA 21 ($000’s) 1Q13 2Q13 3Q13 4Q13 1Q14 Drilling & Rig Services $346,238 $316,630 $384,188 $380,242 $382,238 Completion & Production Services 97,842 81,515 90,814 96,425 $53,402 Other reconciling items (31,577) (42,331) (35,665) (39,425) (44,472) Total $412,503 $355,814 $43
Slide 18: Nabors Global Infrastructure Margins and Activities
nbr_alt_logo_horz2.jpg22 Nabors Global Infrastructure Margins and Activities 2Q13 3Q13 4Q13 1Q14 Drilling Margin (1) Rig Yrs Margin (1) Rig Yrs Margin (1) Rig Yrs Margin (1) Rig Yrs U.S. Lower 48 $9,388 175.5 $11,357 178.6 $9,992 183.1 $9,423 187.2 U.S. Offshore 20,888 15.6 18,717 11.9 21,543 10.7 1
Slide 19: Key Takeaways
vert_photos2.jpgnbr_alt_logo_horz2.jpgKey Takeaways 19 >International poised for strong growth beginning in 2H 2014 >U.S. Drilling benefits from PACE®-X deployments and tightening rig market >Larger global opportunity set relative to U.S. peers >Opportunities for additional high-impact investments i
Slide 20: Appendix
nbr_alt_logo_horz2.jpg\\Houfile1\Home1\Tyler.Renaudin\Desktop\007_G5A9435.jpg20 Appendix
Slide 21: EBITDA
nbr_alt_logo_horz2.jpgEBITDA 21 ($000’s) 1Q13 2Q13 3Q13 4Q13 1Q14 Drilling & Rig Services $346,238 $316,630 $384,188 $380,242 $382,238 Completion & Production Services 97,842 81,515 90,814 96,425 $53,402 Other reconciling items (31,577) (42,331) (35,665) (39,425) (44,472) Total $412,503 $355,814 $43
Slide 22: Nabors Global Infrastructure Margins and Activities
nbr_alt_logo_horz2.jpg22 Nabors Global Infrastructure Margins and Activities 2Q13 3Q13 4Q13 1Q14 Drilling Margin (1) Rig Yrs Margin (1) Rig Yrs Margin (1) Rig Yrs Margin (1) Rig Yrs U.S. Lower 48 $9,388 175.5 $11,357 178.6 $9,992 183.1 $9,423 187.2 U.S. Offshore 20,888 15.6 18,717 11.9 21,543 10.7 1