Nabors Industries Ltd. · NYSE:NBR
Nabors Industries — Q4 2019 Earnings Presentation
22 slides from Nabors Industries's earnings presentation, Feb 20, 2020
Slide 1: Nabors Industries 4Q 2019 Earnings Presentation
Thursday, February 20, 2020 NABORS INDUSTRIES 4Q 2019 Earnings Presentation Friday, February 21, 2020
Slide 2: Forward Looking Statements
2 Forward Looking Statements 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 docu
Slide 3: Recent Company Highlights
3 Recent Company Highlights Amended the 2018 RCF and extended nearly $ 1 billion of debt maturities Increased U.S. Drilling average daily margin to $12,642 in 4Q from $12,400 in 3Q • Lower 48 daily margin held essentially flat at $10,218 as industry rig count declines by 7 % Increased International
Slide 4: Financial Overview
FINANCIAL OVERVIEW 4
Slide 5: Financial Summary
5 Financial Summary (1) See reconciliations in the Appendix (2) Diluted Earnings (Losses) Per Share from continuing operations ($000 except EPS) 4Q18 1Q19 2Q19 3Q19 4Q19 Operating Revenues $782,080 $799,640 $771,406 $758,076 $714,261 Income (Loss) from Continuing Operations before income taxes ($143
Slide 6: Debt Maturity Profile as of December 31, 2019
6 Debt Maturity Profile as of December 31, 2019 (Revolver Capacity + Cash) (2)(3) (1) Annual figures shown in millions at maturity value. (2) Debt balances reflect carrying values as of December 31, 2019. See reconciliation of Net Debt to Total Debt in the Appendix. (3) Availability under Revolving
Slide 7: Debt Maturity Profile Proforma for Offerings & Tender
7 Debt Maturity Profile Proforma for Offerings & Tender (1) Annual figures shown in millions at maturity value . (1) (1) Tenders accepted in January 2020
Slide 8: Business Segments
BUSINESS SEGMENTS 8
Slide 9: Lower 48 Rig Utilization by Type
9 Lower 48 Rig Utilization by Type (1) As of December 31, 2019. (1) Rig Type Total Rigs Active Total Util. AC % PACE ® - X 41 47 87% PACE ® - M750 7 7 100% PACE ® - M800 6 6 100% PACE ® - M1000 4 4 100% PACE ® - B 23 29 79% PACE ® - S 5 11 45% UPGRADED PACE ® - F 4 6 67% Total High Spec 90 110 82% P
Slide 10: Focus on Mission Zero
Focus on Mission Zero 10 Lower 48 solidly outperforming the industry average reported TRIR 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 TRIR 0.93 1.71 NBR IADC
Slide 11: Successfully Improving Customer Mix
48% 11% 41% Market Peak - 2014 70% 1% 30% 4Q 2019 11 Successfully Improving Customer Mix Tier 1 Tier 2 Tier 3 Growing position with the top customers in the Lower 48
Slide 12: Continuing to Build Market Share with the Super Majors
Continuing to Build Market Share with the Super Majors “ Nabors has invested heavily in their fleet and support services. They’ve also made tough decisions to ensure the right talent is in their front - line leadership positions.” “ Best in - basin rig performance. Attentive corporate and field pers
Slide 13: Nabors Drilling Operations as of December 31, 2019
13 Nabors Drilling Operations as of December 31, 2019 Please refer to disclaimers on slide 2 of the presentation deck. U.S. 101 Saudi Arabia 42 Canada 15 Colombia 11 Argentina 10 Kazakhstan 6 Oman 4 Mexico 3 Russia 3 Venezuela 3 Algeria 2 India 2 Kuwait 2 Total of 204
Slide 14: Powering Rigs with Alternative/Dual Fuel
14 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 • 40 dual - fuel - capable rigs • 3 running on highline power
Slide 15: Tubular Running Services
Tubular Running Services Reinventing workflows, while delivering superior returns Automation and Integration Integrated and efficient delivery built on Nabors SmartRig ® platform enabling: • Superior service quality & safety • Unmatched connection integrity • Repeatable and consistent performance •
Slide 16: Drilling Automation
16 Drilling Automation Industry leading digital products supported by scalable workflows Product Description Competitive Advantages Value Creation ROCKit ® Pilot ROCKit ® Navigator™ REVit® An intuitive directional steering control system that increases performance of slide drilling, through drill st
Slide 17: Blue Force Mud Motors and MWD Technology
Incorporates industry leading technology; preferred choice of operators and end users Current motor fleet consists of 282 buildable assets that are utilized domestically and internationally 2019 Nabors’ Blue Force® motors were utilized to drill 1,247 wells for a total footage of 4,530,096 Reliabilit
Slide 18: Appendix
APPENDIX 18
Slide 19: Financial Summary
19 Financial Summary (1) Margin = gross margin per rig per day for the period. Gross margin is computed by subtracting direct costs from operating rev en ues for the period. 4Q18 1Q19 2Q19 3Q19 4Q19 Margin (1) Avg. Rigs Working Margin (1) Avg. Rigs Working Margin (1) Avg. Rigs Working Margin (1) Avg
Slide 20: Reconciliation of Adjusted EBITDA to Income (Loss) from Continuing Operations Before Income Taxes
20 Reconciliation of Adjusted EBITDA to Income (Loss) from Cont. Operations Before Income Taxes Adjusted operating income (loss) represents income (loss) from continuing operations before income taxes, interest expense, e arn ings (losses) from unconsolidated affiliates, investment income (loss), im
Slide 21: Reconciliation of Free Cash Flow to Net Cash Provided by Operating Activities
21 Reconciliation of Free Cash Flow to Net Cash Provided by Operating Activities Free cash flow represents net cash provided by operating activities less cash used for investing activities. Free cash flow i s a n indicator of our ability to generate cash flow after required spending to maintain or e
Slide 22: Reconciliation of Net Debt to Total Debt
22 Reconciliation of Net Debt to Total Debt Net debt is computed by subtracting the sum of cash, cash equivalents 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 accordanc