HAMILTON, Bermuda, Jan. 8, 2019 /PRNewswire/ -- Nabors
Industries Ltd. ("Nabors" or the "Company") (NYSE: NBR) today
announced that William Restrepo,
Nabors Chief Financial Officer, will participate in the Goldman
Sachs Energy Conference on Wednesday morning January 9, 2019, wherein he will discuss the
industry environment and Nabors outlook for 2019.
In connection with Mr. Restrepo's participation at the
conference, the Company is announcing the following financial
highlights for the fourth quarter:
- Reduced net debt by approximately $230
million and total debt by $150
million based upon preliminary fourth quarter financial
information.
- Preliminary year-end 2018 net debt was approximately
$3.12 billion on total debt of
approximately $3.59 billion
- Repurchased $108 million of long
term debt during the fourth quarter
- Full-year 2018 capital spending was well under $500 million
Nabors fourth quarter financials are not yet finalized. The
company does not intend for the above metrics to be taken as an
indication of GAAP financial results for the fourth quarter. They
are only intended to provide investors with advance information on
Nabors' financial position, given investors' level of interest on
that specific issue. Nabors will release its full financial and
operational results for the fourth quarter and full year of 2018 in
late February.
Mr. Restrepo commented, "As anticipated, fourth quarter cash
flow generation allowed us to reduce our net debt significantly.
The industry experienced a sharp drop in oil prices during the
fourth quarter of 2018. Given the recent oil price rally this past
week, it is uncertain to what extent this volatility could lead our
U.S. customers to scale back investment. To date, there has
been minimal negative impact on U.S. activity and the demand for
our high-specification rigs in the Lower 48 remains strong, with
leading edge dayrates at attractive levels.
Our goal is to remain focused on cash generation and reduce our
leverage, as previously announced. To that end, we are
targeting a $200 to $250 million net debt reduction during 2019."
Consistent with those objectives, and to ensure we can reach our
Nabors' 2019 planned objectives in a volatile market, we are
prudently taking the following premptive steps:
- Targeting 2019 capital spending at the $400 million level
- Optimizing 2019 G&A and R&E expenses through a
reduction of approximately 10% compared to 2018
- Planning an 83% reduction in the quarterly cash dividend to
common shareholders, to $0.01 per
share, beginning in the second quarter of 2019
Anthony G. Petrello, Nabors
Chairman, CEO and President, commented, "We believe our combination
of top quality personnel, superior assets, market position and
technology serves us well in any environment. We will
continue our focus on reducing our leverage over the next two to
three years. We can accomplish this through stringent capital
allocation and still continue the progress we have made in
modernizing our fleet, introducing new automation technologies and
enhancing our performance drilling capabilities. We continue
to expect 2019 to be an improvement over 2018 and another good step
forward for the company."
About Nabors
Nabors (NYSE: NBR) owns and operates one of the world's
largest land-based drilling rig fleets and is a provider of
offshore platform rigs in the United
States and numerous international markets. Nabors also
provides directional drilling services, performance tools, and
innovative technologies for its own rig fleet and those of third
parties. Leveraging our advanced drilling automation capabilities,
Nabors highly skilled workforce continues to set new standards for
operational excellence and transform our industry.
Forward-looking Statements
The information included in this press release includes
forward-looking statements within the meaning of the Securities Act
of 1933 and the Securities Exchange Act of 1934. Such
forward-looking statements are subject to a number of risks and
uncertainties, as disclosed by Nabors from time to time in its
filings with the Securities and Exchange Commission. As a result,
of these factors, Nabors' actual results may differ materially from
those indicated or implied by such forward-looking
statements. The forward-looking statements contained in this
press release reflect management's estimates and beliefs as of the
date of this press release. Nabors does not undertake to
update these forward-looking statements.
Non-GAAP Disclaimer
This press release presents certain "non-GAAP" financial
measures. The components of these non-GAAP measures are
computed by using amounts that are determined in accordance with
accounting principles generally accepted in the United States of America ("GAAP").
Net debt is calculated as total debt minus the sum of cash and cash
equivalents and short-term investments. 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, management evaluates the performance of its operating
segments and the consolidated Company based on several criteria,
including net debt, because it believes that these financial
measures accurately reflect the Company's ongoing profitability and
performance. Securities analysts and investors also use these
measures as some of the metrics on which they analyze the Company's
performance. Other companies in this industry may compute these
measures differently. A reconciliation of net debt to total
debt, which is the nearest comparable GAAP financial measures, is
included in the tables at the end of this press release.
Media Contact: Dennis A.
Smith, Vice President of Corporate Development &
Investor Relations, +1 281-775-8038 or William C. Conroy, Senior Director of Corporate
Development & Investor Relations, +1 281-775-2423. To
request investor materials, contact Nabors' corporate headquarters
in Hamilton, Bermuda at
+441-292-1510 or via e-mail at mark.andrews@nabors.com
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
RECONCILIATION OF
NET DEBT TO TOTAL DEBT
|
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
(In
thousands)
|
|
2018
|
|
2018
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current portion of
debt
|
|
$
-
|
|
$
-
|
Long-term
debt
|
|
3.74
|
|
3.59
|
Total Debt
|
|
3.74
|
|
3.59
|
Less: Cash and
short-term investments
|
|
0.39
|
|
0.47
|
Net Debt
|
|
$
3.35
|
|
$
3.12
|
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SOURCE Nabors Industries Ltd.