Nabors Industries Ltd. · NYSE:NBR
Nabors Industries — Corporate Update (January 2019)
13 slides from Nabors Industries's corporate update, Jan 8, 2019
Slide 1: Forward-Looking Statements
Forward-Looking Statements This presentation discusses certain forward-looking statements including new rig technology, rig margin improvement potential, job growth opportunities, cost savings, expectations regarding the performance of our industry, our current and future markets and demand for our
Slide 2: Non-GAAP Financial Measures
Non-GAAP Financial Measures The above description of risks and uncertainties is by no means all-inclusive, but is designed to highlight what we believe are important factors to consider. For a discussion of these factors and other risks and uncertainties, please refer to our filings with the Securit
Slide 3: Current Market Environment
Current Market Environment • WTI crude price weakened to $43-$50 range at end of 2018 • Lower 48 • • • Commodity price drop creates uncertainty within the client base Oil price volatility could lead U.S. customers to scale back investment Leading edge dayrates have stabilized at current attractive l
Slide 4: Recent Company Highlights
Recent Company Highlights • Lower 48 • • End-of-year rig count at 114 Estimate 4Q daily gross margin above $9,000 • International • • End-of-year rig count at 93 (after sale of Argentina workover rigs) 4Q daily gross margin below third-quarter actual • Net Debt reduction of approximately $230 millio
Slide 5: 2019 Priorities
2019 Priorities Cautious Start to the New Year • Continued focus on cost reductions • Reduce annual combined G&A and R&E expenses by 10% • Target 2019 capital spending to $400 million • Management proposal to reduce quarterly dividend on common shares, beginning with payment in 2Q, to $0.01 per shar
Slide 6: Key Investment Highlights
Key Investment Highlights 1 One of the world’s largest global land drilling fleets 2 Capitalizing on global drilling rebound 3 Differentiated cyclical resilience through International 4 Modern super-spec L48 Fleet 5 Growth and margin expansion through NDS and automation 6 Committed to free cash flow
Slide 7: Lower 48 Direction
Lower 48 Direction Industry rig count grew by 27 rigs in the fourth quarter, to 1056 • Super-Spec rigs fully utilized at significant premiums with strong day rates • Rig upgrade candidates at attractive returns are limited in current market environment • We expect margin re-price to market expansion
Slide 8: International Direction
International Direction Rig count continues to increase, with stable pricing and limited pricing traction in certain markets • Sold seven non-contributing small workover rigs in Argentina During 4Q, deployed two rigs in Colombia, one in Saudi Arabia, and one in Russia. During 2019 expect to deploy t
Slide 9: Debt Maturity Profile - Preliminary as of 12/31/18
Debt Maturity Profile - Preliminary as of 12/31/18 All figures in billions Capacity + Cash) (1) Debt balances reflect preliminary carrying values as of 31-December-2018 (2) Revolving Credit Lines subject to covenants (3) Annual figures shown at maturity value. Nearest Maturity in 2020 (3) $2,500 $2,
Slide 10: Near-Term Drivers
Near-Term Drivers L48 Margins 1 Project Free Cash Flow expansion throughout 2018-2019 Operations began April 1, 2018 with healthy margin and cash contribution 2 MODS™-400 Protects Saudi Arabia business and offers upside with newbuild deployments.Recently renewed 25 long-term contracts. SANAD 3 Incre
Slide 11: Near-Term Drivers
Near-Term QRETCIIOM Project Free Cash Flow expansion throughout 2018-2019 (2) Nese Operations began April 1, 2018 with healthy margin and cash contribution Protects Saudi Arabia business and offers upside with newbuild (3) SANAD deployments. Recently renewed 25 long-term contracts. Incremental reven
Slide 12: Reconciliation of Net Debt to Total Debt
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 accordance wi
Slide 13: Reconciliation of Net Debt to Total Debt
Reconciliation of Net Debt to Total Deb Net debt is computed by subtracting the sum of cash, cash equivalents, and short-term investments from tetal debt. This non-GAAP measure has, limitations and therefore should not he used in isolation or asa substitute for the amounts reported in accordance wit