HAMILTON,
Bermuda, Feb. 6, 2024 /PRNewswire/ -- Nabors
Industries Ltd. ("Nabors" or the "Company") (NYSE: NBR) today
reported fourth quarter 2023 operating revenues of $726 million, compared to operating revenues of
$734 million in the third quarter.
The net loss attributable to Nabors shareholders for the quarter
was $17 million, compared to a net
loss of $49 million in the third
quarter. This equates to a loss of $2.70 per diluted share, compared to a loss per
diluted share of $6.26 in the third
quarter. The fourth quarter results included a gain, related to
mark-to-market treatment of Nabors warrants, of $10 million, or $1.14 per diluted share, compared to a charge of
$8 million, or $0.86 per diluted share, in the third quarter.
Fourth quarter adjusted EBITDA was $230
million, compared to $210
million in the previous quarter.
Full-year 2023 operating revenues were
$3.0 billion, compared to
$2.7 billion in the prior year. This
13% overall increase was driven by growth in all company segments.
Nabors Drilling Solutions and Rig Technologies both expanded by
24%. U.S. Drilling revenue increased by 10%, while International
Drilling was 12% higher than in 2022.
For the full year 2023, the net loss attributable
to Nabors shareholders was $11.8
million, compared to a loss of $350.3
million in 2022. Adjusted operating income improved to
$269.9 million from $44.3 million. Adjusted EBITDA for 2023 was
$915 million, compared to
$709 million in the prior year, which
translates into 29% year-on-year growth.
Anthony G.
Petrello, Nabors Chairman, CEO and President, commented,
"Our fourth quarter operating results exceeded our expectations
across all of our segments. In the U.S., daily rig margins in the
Lower 48 increased sequentially, as daily revenue expanded and
daily expenses were lower. Similarly, daily margins in our
International business widened.
"Pricing in the Lower 48 market held firm, as
utilization of the highest specification rigs remained high.
Average rig count was slightly below our estimates, as several rigs
started later in the quarter than anticipated. In our International
segment, rig count increased as deployments in Saudi Arabia and Colombia contributed. The International daily
margin expanded, driven by better overall operating performance,
and specifically by the newbuild deployments in Saudi Arabia. The improvement in our Drilling
Solutions segment largely reflected growth from the third party and
international markets. Rig Technologies benefitted from higher
volumes in both capital equipment and the aftermarket."
Highlights
- Nabors Drilling Solutions was selected by a major operator in
the Middle East to deploy NDS's
rig automation technology. Initially, the award covers five working
rigs, with the potential for significant expansion.
- ExxonMobil has selected Nabors to support its lithium
production project in Arkansas.
Nabors has commenced operations on this project with one of its
high-specification PACE®-X rigs.
- One of the largest Lower 48 operators named a Nabors PACE®-X
rig its Rig of the Year, for the second consecutive year, based on
its performance against rigs from six other drilling contractors.
This award recognizes the Nabors crew and rig technology for their
accomplishments.
- Nabors was selected to provide technical and operational
support to a local drilling contractor in Libya, under a Technical Services Agreement.
Earlier in the year, this same contractor purchased two rigs from
Nabors, which are now being deployed in Libya.
- Nabors and SLB (NYSE: SLB) jointly announced a collaboration to
scale automated drilling solutions for operators and drilling
contractors. This integration of both companies' platforms expands
the breadth of drilling automation technologies available to
customers, and increases their flexibility to utilize existing rig
control systems from either Nabors or SLB. The announcement follows
technology agreements earlier in 2023 with Corva and with
Halliburton (NYSE: HAL).
- Nabors Energy Transition Corporation, the special purpose
acquisition company sponsored by Nabors, and Vast Renewables
Limited completed their previously announced business
combination.
Segment Results
The U.S. Drilling segment reported fourth quarter
adjusted EBITDA of $118.4 million,
compared to $117.4 million in the
third quarter. Nabors exited the year with 74 rigs on revenue in
the Lower 48 market, while the fourth quarter average rig count
totaled 70. Daily adjusted gross margin in the Lower 48 market
averaged $16,240, an increase of
$385 sequentially. This improvement
reflected slightly higher daily revenue and reduced operating
expenses. For the full year, EBITDA margins for U.S. Drilling
increased by 600 basis points to 44.2%.
International Drilling adjusted EBITDA totaled
$105.5 million, compared to
$96.2 million in the third quarter.
The additional rigs in Saudi
Arabia and Colombia drove
the increase. International rig count averaged 80, up from 77 in
the previous quarter. Daily adjusted gross margin for the fourth
quarter averaged $16,651, up
approximately 6% from the third quarter, on improved operational
performance.
Drilling Solutions adjusted EBITDA increased
sequentially by approximately $4.1
million, to $34.5 million.
Revenue growth of 6% was led by a 13% expansion in international
operations. Drilling Solutions gross margin increased by 120 basis
points to 52.4%.
In Rig Technologies, adjusted EBITDA reached
$8.8 million, a 22% sequential
improvement. Seasonal increases in third-party equipment revenue
and higher aftermarket sales led to wider margins.
Adjusted Free Cash Flow
Adjusted free cash flow was $52 million in the fourth quarter, a $57 million improvement versus the prior period.
Capital expenditures totaled $124
million, which included $43
million for the newbuilds in Saudi
Arabia. This compares to $157
million in the third quarter, including $52 million supporting the newbuilds.
William Restrepo,
Nabors CFO, stated, "Results across our operations were impressive.
EBITDA rebounded close to the levels of the first half and was
significantly above our projections. In the Lower 48, we were able
to add the expected number of rigs, albeit later in the quarter
than we originally envisioned. Our revenue per day and daily gross
margin improved sequentially. Market pricing for rigs was stable,
and our efforts to reduce costs paid off. Looking ahead to the
first quarter, we expect a high level of rig churn to keep our
average rig count essentially in line with the fourth quarter exit
rate. As operating rigs continue to reprice to the current market,
we expect some erosion in daily margin.
"Internationally we deployed rigs at attractive
pricing. Reduced operating expenses and improved execution,
particularly in Saudi Arabia,
drove higher daily gross margins. In the first quarter, we expect
newbuilds in Saudi Arabia and the
initial startups in Algeria to
increase our rig count.
"Drilling Solutions and Rig Technologies fourth
quarter results benefitted from strong performance software and
casing running revenue, as well as higher seasonal capital
equipment shipments.
"During the fourth quarter, we completed a
$650 million senior note offering due
in 2030. With the proceeds, we have already retired both of our
nearest pending maturities: the convertibles due in January 2024 and the senior notes due in 2025.
Our next maturity is in 2026.
"As we enter 2024, we expect to build on our 2023
results. In the U.S., our annual average rig count for 2024 should
approach the prior year's level. We have a robust international
deployment schedule in 2024, and the number of incremental
opportunities continues to grow. Adoption of the NDS portfolio is
still expanding, particularly on third party rigs and in
international markets. Increased global drilling activity should
benefit Rig Technologies. Additionally, increasing client focus on
improving their operating efficiencies should drive demand for our
automation solutions, while their goal to simultaneously reduce
their environmental impact should drive demand for our energy
transition offering.
"We still have a number of open international
tenders and potential upside in activity level for the Lower 48.
While it is still early in the year, we do expect to deliver a
significant improvement in adjusted free cash flow, compared to the
level of 2023. We plan to allocate the 2024 cash flow generation to
reducing our net debt."
Outlook
Nabors expects the following metrics for the
first quarter of 2024:
U.S.
Drilling
- Lower 48 average rig count of 73 - 75 rigs
- Lower 48 daily adjusted gross margin of approximately
$15,300
- Alaska and Gulf of Mexico adjusted EBITDA up by
$1.5 to $2.0
million
International
- Average rig count up by approximately two rigs versus the
fourth quarter average
- Daily adjusted gross margin of approximately $16,100 - $16,300
Drilling Solutions
- Adjusted EBITDA of $30 -
$31 million
Rig Technologies
- Adjusted EBITDA of $5 -
$6 million
Capital Expenditures
- Capital expenditures of $170 -
$180 million, with approximately
$50 million for the newbuilds in
Saudi Arabia
Mr. Petrello concluded, "As we look to 2024, we
expect our financial performance to accelerate. International rig
awards already in hand should drive growth this year. We are
currently in negotiations and tendering for a significant number of
additional international rigs. Assuming we are successful, those
would provide further growth into and through 2025. At the same
time, demand for our advanced technology solutions is expanding
across the global customer set. With these drivers, I am optimistic
we are on the right path."
About Nabors Industries
Nabors Industries (NYSE: NBR) is a leading
provider of advanced technology for the energy industry. With
presence in more than 20 countries, Nabors has established a global
network of people, technology and equipment to deploy solutions
that deliver safe, efficient and responsible energy production. By
leveraging its core competencies, particularly in drilling,
engineering, automation, data science and manufacturing, Nabors
aims to innovate the future of energy and enable the transition to
a lower-carbon world. Learn more about Nabors and its energy
technology leadership: www.nabors.com.
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"). Adjusted operating income (loss) represents income
(loss) from continuing operations before income taxes, interest
expense, investment income (loss), and other, net. Adjusted EBITDA
is computed similarly, but also excludes depreciation and
amortization expenses. In addition, adjusted EBITDA and adjusted
operating income (loss) exclude certain cash expenses that the
Company is obligated to make. Net debt is calculated as total debt
minus the sum of cash, cash equivalents and short-term
investments.
Adjusted free cash flow represents net cash provided by
operating activities less cash used for capital expenditures, net
of proceeds from sales of assets. Management believes that
adjusted free cash flow is an important liquidity measure for the
company and that it is useful to investors and management as a
measure of the company's ability to generate cash flow, after
reinvesting in the company for future growth, that could be
available for paying down debt or other financing cash flows, such
as dividends to shareholders. Management believes that this
non-GAAP measure is useful information to investors when comparing
our cash flows with the cash flows of other companies.
Each of these non-GAAP measures 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 Adjusted EBITDA, adjusted
operating income (loss), net debt, and adjusted free cash flow,
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. Reconciliations of consolidated adjusted
EBITDA and adjusted operating income (loss) to income (loss) from
continuing operations before income taxes, net debt to total debt,
and adjusted free cash flow to net cash provided by operations,
which are their nearest comparable GAAP financial measures, are
included in the tables at the end of this press release. We do not
provide a forward-looking reconciliation of our outlook for Segment
Adjusted EBITDA, Segment Gross Margin or Adjusted Free Cash Flow,
as the amount and significance of items required to develop
meaningful comparable GAAP financial measures cannot be estimated
at this time without unreasonable efforts. These special items
could be meaningful.
Investor Contacts: William C. Conroy, CFA, Vice President
of Corporate Development & Investor Relations, +1 281-775-2423
or via e-mail william.conroy@nabors.com, or Kara Peak, Director of Corporate Development
& Investor Relations, +1 281-775-4954 or via
email kara.peak@nabors.com. To request investor materials,
contact Nabors' corporate headquarters in Hamilton, Bermuda at +441-292-1510 or via
e-mail mark.andrews@nabors.com
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
(In thousands,
except per share amounts)
|
|
2023
|
|
2022
|
|
2023
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
Revenues and other
income:
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues
|
|
$
725,801
|
|
$
760,148
|
|
$
733,974
|
|
$
3,005,981
|
|
$
2,653,766
|
Investment income
(loss)
|
|
12,042
|
|
9,194
|
|
10,169
|
|
43,820
|
|
14,992
|
Total revenues and
other income
|
|
737,843
|
|
769,342
|
|
744,143
|
|
3,049,801
|
|
2,668,758
|
|
|
|
|
|
|
|
|
|
|
|
Costs and other
deductions:
|
|
|
|
|
|
|
|
|
|
|
Direct costs
|
|
424,769
|
|
457,184
|
|
447,751
|
|
1,790,380
|
|
1,666,004
|
General and
administrative expenses
|
|
57,003
|
|
59,031
|
|
62,182
|
|
244,147
|
|
228,431
|
Research and
engineering
|
|
13,926
|
|
13,911
|
|
14,016
|
|
56,297
|
|
49,939
|
Depreciation and
amortization
|
|
161,228
|
|
168,841
|
|
161,337
|
|
645,294
|
|
665,072
|
Interest
expense
|
|
49,938
|
|
44,245
|
|
44,042
|
|
185,285
|
|
177,895
|
Other, net
|
|
7,878
|
|
58,124
|
|
35,546
|
|
(726)
|
|
127,099
|
Total costs and other
deductions
|
|
714,742
|
|
801,336
|
|
764,874
|
|
2,920,677
|
|
2,914,440
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
|
23,101
|
|
(31,994)
|
|
(20,731)
|
|
129,124
|
|
(245,682)
|
Income tax expense
(benefit)
|
|
19,244
|
|
26,161
|
|
10,513
|
|
79,220
|
|
61,536
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
3,857
|
|
(58,155)
|
|
(31,244)
|
|
49,904
|
|
(307,218)
|
Less: Net (income) loss
attributable to noncontrolling interest
|
|
(20,560)
|
|
(10,911)
|
|
(17,672)
|
|
(61,688)
|
|
(43,043)
|
Net income (loss)
attributable to Nabors
|
|
$
(16,703)
|
|
$
(69,066)
|
|
$
(48,916)
|
|
$
(11,784)
|
|
$
(350,261)
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (losses) per
share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
(2.70)
|
|
$
(7.87)
|
|
$
(6.26)
|
|
$
(5.49)
|
|
$
(40.52)
|
Diluted
|
|
$
(2.70)
|
|
$
(7.87)
|
|
$
(6.26)
|
|
$
(5.49)
|
|
$
(40.52)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number
of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
9,133
|
|
9,101
|
|
9,148
|
|
9,159
|
|
8,898
|
Diluted
|
|
9,133
|
|
9,101
|
|
9,148
|
|
9,159
|
|
8,898
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
230,103
|
|
$
230,022
|
|
$
210,025
|
|
$
915,157
|
|
$
709,392
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss)
|
|
$
68,875
|
|
$
61,181
|
|
$
48,688
|
|
$
269,863
|
|
$
44,320
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
(In
thousands)
|
|
2023
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and short-term
investments
|
|
$
1,070,178
|
|
$
406,643
|
|
$
452,315
|
Accounts receivable,
net
|
|
347,837
|
|
324,970
|
|
327,397
|
Other current
assets
|
|
227,663
|
|
228,941
|
|
220,911
|
Total current
assets
|
|
1,645,678
|
|
960,554
|
|
1,000,623
|
Property, plant and
equipment, net
|
|
2,898,728
|
|
2,945,964
|
|
3,026,100
|
Other long-term
assets
|
|
733,559
|
|
820,332
|
|
703,131
|
Total assets
|
|
$
5,277,965
|
|
$
4,726,850
|
|
$
4,729,854
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Current debt
|
|
$
629,621
|
|
$
-
|
|
$
-
|
Trade accounts
payable
|
|
294,442
|
|
287,228
|
|
314,041
|
Other current
liabilities
|
|
289,918
|
|
241,475
|
|
282,349
|
Total current
liabilities
|
|
1,213,981
|
|
528,703
|
|
596,390
|
Long-term
debt
|
|
2,511,519
|
|
2,501,339
|
|
2,537,540
|
Other long-term
liabilities
|
|
271,380
|
|
314,441
|
|
380,529
|
Total liabilities
|
|
3,996,880
|
|
3,344,483
|
|
3,514,459
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interest in subsidiary
|
|
739,075
|
|
834,195
|
|
678,604
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
Shareholders'
equity
|
|
326,614
|
|
348,234
|
|
368,956
|
Noncontrolling
interest
|
|
215,396
|
|
199,938
|
|
167,835
|
Total equity
|
|
542,010
|
|
548,172
|
|
536,791
|
Total liabilities and
equity
|
|
$
5,277,965
|
|
$
4,726,850
|
|
$
4,729,854
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
SEGMENT
REPORTING
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
The following tables
set forth certain information with respect to our reportable
segments and rig activity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
(In thousands,
except rig activity)
|
|
2023
|
|
2022
|
|
2023
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Drilling
|
|
$
265,762
|
|
$
332,845
|
|
$
276,385
|
|
$
1,207,629
|
|
$
1,100,614
|
|
International
Drilling
|
|
342,771
|
|
317,577
|
|
344,780
|
|
1,345,249
|
|
1,199,282
|
|
Drilling
Solutions
|
|
77,028
|
|
71,307
|
|
72,831
|
|
301,757
|
|
243,349
|
|
Rig Technologies
(1)
|
|
59,287
|
|
62,803
|
|
61,437
|
|
242,768
|
|
195,129
|
|
Other reconciling items
(2)
|
|
(19,047)
|
|
(24,384)
|
|
(21,459)
|
|
(91,422)
|
|
(84,608)
|
|
Total operating
revenues
|
|
$
725,801
|
|
$
760,148
|
|
$
733,974
|
|
$
3,005,981
|
|
$
2,653,766
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA:
(3)
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Drilling
|
|
$
118,371
|
|
$
144,142
|
|
$
117,357
|
|
$
533,663
|
|
$
420,264
|
|
International
Drilling
|
|
105,540
|
|
88,838
|
|
96,175
|
|
388,654
|
|
328,454
|
|
Drilling
Solutions
|
|
34,502
|
|
30,336
|
|
30,419
|
|
129,591
|
|
98,699
|
|
Rig Technologies
(1)
|
|
8,811
|
|
7,561
|
|
7,221
|
|
27,394
|
|
14,699
|
|
Other reconciling items
(4)
|
|
(37,121)
|
|
(40,855)
|
|
(41,147)
|
|
(164,145)
|
|
(152,724)
|
|
Total adjusted
EBITDA
|
|
$
230,103
|
|
$
230,022
|
|
$
210,025
|
|
$
915,157
|
|
$
709,392
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss): (5)
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Drilling
|
|
$
51,494
|
|
$
68,293
|
|
$
49,582
|
|
$
262,353
|
|
$
108,506
|
|
International
Drilling
|
|
18,642
|
|
1,750
|
|
9,862
|
|
40,868
|
|
(879)
|
|
Drilling
Solutions
|
|
30,127
|
|
24,800
|
|
25,341
|
|
110,957
|
|
77,868
|
|
Rig Technologies
(1)
|
|
5,788
|
|
6,118
|
|
4,995
|
|
19,529
|
|
8,906
|
|
Other reconciling items
(4)
|
|
(37,176)
|
|
(39,780)
|
|
(41,092)
|
|
(163,844)
|
|
(150,081)
|
|
Total adjusted
operating income (loss)
|
|
$
68,875
|
|
$
61,181
|
|
$
48,688
|
|
$
269,863
|
|
$
44,320
|
|
|
|
|
|
|
|
|
|
|
|
|
Rig
activity:
|
|
|
|
|
|
|
|
|
|
|
Average Rigs Working:
(7)
|
|
|
|
|
|
|
|
|
|
|
|
Lower 48
|
|
70.3
|
|
95.1
|
|
73.7
|
|
79.6
|
|
90.0
|
|
Other US
|
|
6.0
|
|
7.0
|
|
6.7
|
|
6.7
|
|
7.2
|
|
U.S.
Drilling
|
|
76.3
|
|
102.1
|
|
80.4
|
|
86.3
|
|
97.2
|
|
International
Drilling
|
|
79.6
|
|
75.7
|
|
77.2
|
|
77.6
|
|
74.2
|
|
Total average rigs
working
|
|
155.9
|
|
177.8
|
|
157.6
|
|
163.9
|
|
171.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Daily Rig Revenue:
(6),(8)
|
|
|
|
|
|
|
|
|
|
|
|
Lower 48
|
|
$
35,776
|
|
$
32,719
|
|
$
35,697
|
|
$
36,202
|
|
$
27,836
|
|
Other US
|
|
62,346
|
|
72,497
|
|
56,163
|
|
63,866
|
|
71,333
|
|
U.S. Drilling
(10)
|
|
37,865
|
|
35,447
|
|
37,397
|
|
38,338
|
|
31,037
|
|
International
Drilling
|
|
46,782
|
|
45,616
|
|
48,528
|
|
47,484
|
|
44,311
|
|
|
|
|
|
|
|
|
|
|
|
|
Daily Adjusted Gross
Margin: (6),(9)
|
|
|
|
|
|
|
|
|
|
|
|
Lower 48
|
|
$
16,240
|
|
$
14,599
|
|
$
15,855
|
|
$
16,446
|
|
$
10,678
|
|
Other US
|
|
34,641
|
|
36,592
|
|
27,631
|
|
33,850
|
|
37,062
|
|
U.S. Drilling
(10)
|
|
17,687
|
|
16,107
|
|
16,833
|
|
17,790
|
|
12,625
|
|
International
Drilling
|
|
16,651
|
|
14,902
|
|
15,778
|
|
15,992
|
|
14,257
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Includes our oilfield
equipment manufacturing activities.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Represents the
elimination of inter-segment transactions related to our Rig
Technologies operating segment.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Adjusted EBITDA
represents net income (loss) before income tax expense (benefit),
investment income (loss), interest expense, other, net and
depreciation and amortization. Adjusted EBITDA is a non-GAAP
financial measure and should not be used in isolation or as a
substitute for the amounts reported in accordance with GAAP. In
addition, adjusted EBITDA excludes certain cash expenses that the
Company is obligated to make. However, management evaluates the
performance of its operating segments and the consolidated Company
based on several criteria, including adjusted EBITDA and adjusted
operating income (loss), because it believes that these financial
measures accurately reflect the Company's ongoing profitability and
performance. Securities analysts and investors use this
measure as one of the metrics on which they analyze the Company's
performance. Other companies in this industry may compute
these measures differently. A reconciliation of this non-GAAP
measure to net income (loss), which is the most closely comparable
GAAP measure, is provided in the table set forth immediately
following the heading "Reconciliation of Non-GAAP Financial
Measures to Net Income (Loss)".
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
Represents the
elimination of inter-segment transactions and unallocated corporate
expenses.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5)
|
Adjusted operating
income (loss) represents net income (loss) before income tax
expense (benefit), investment income (loss), interest expense
and other, net. Adjusted operating income (loss) is a non-GAAP
financial measure and should not be used in isolation or as a
substitute for the amounts reported in accordance with GAAP. In
addition, adjusted operating income (loss) excludes certain cash
expenses that the Company is obligated to make. However, management
evaluates the performance of its operating segments and the
consolidated Company based on several criteria, including adjusted
EBITDA and adjusted operating income (loss), because it believes
that these financial measures accurately reflect the Company's
ongoing profitability and performance. Securities analysts
and investors use this measure as one of the metrics on which they
analyze the Company's performance. Other companies in this
industry may compute these measures differently. A
reconciliation of this non-GAAP measure to net income (loss), which
is the most closely comparable GAAP measure, is provided in the
table set forth immediately following the heading "Reconciliation
of Non-GAAP Financial Measures to Net Income (Loss)".
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6)
|
Rig revenue days
represents the number of days the Company's rigs are contracted and
performing under a contract during the period. These would
typically include days in which operating, standby and move revenue
is earned.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7)
|
Average rigs working
represents a measure of the average number of rigs operating during
a given period. For example, one rig operating 45 days during
a quarter represents approximately 0.5 average rigs working for the
quarter. On an annual period, one rig operating 182.5 days
represents approximately 0.5 average rigs working for the
year. Average rigs working can also be calculated as rig
revenue days during the period divided by the number of calendar
days in the period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(8)
|
Daily rig revenue
represents operating revenue, divided by the total number of
revenue days during the quarter.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(9)
|
Daily adjusted gross
margin represents operating revenue less direct costs, divided by
the total number of rig revenue days during the
quarter.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(10)
|
The U.S. Drilling
segment includes the Lower 48, Alaska, and Gulf of Mexico operating
areas.
|
|
|
|
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
|
Reconciliation of
Earnings per Share
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
(in thousands,
except per share amounts)
|
2023
|
|
2022
|
|
2023
|
|
2023
|
|
2022
|
|
|
|
BASIC
EPS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
(numerator):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss), net of
tax
|
$
|
3,857
|
|
$
|
(58,155)
|
|
$
|
(31,244)
|
|
$
|
49,904
|
|
$
|
(307,218)
|
|
Less: net (income) loss
attributable to noncontrolling interest
|
|
(20,560)
|
|
|
(10,911)
|
|
|
(17,672)
|
|
|
(61,688)
|
|
|
(43,043)
|
|
Less: deemed dividends
to SPAC public shareholders
|
|
(458)
|
|
|
—
|
|
|
(823)
|
|
|
(8,638)
|
|
|
—
|
|
Less: accrued
distribution on redeemable noncontrolling interest in
subsidiary
|
|
(7,517)
|
|
|
(2,602)
|
|
|
(7,517)
|
|
|
(29,824)
|
|
|
(10,324)
|
|
Numerator for basic
earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income (loss),
net of tax - basic
|
$
|
(24,678)
|
|
$
|
(71,668)
|
|
$
|
(57,256)
|
|
$
|
(50,246)
|
|
$
|
(360,585)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number
of shares outstanding - basic
|
|
9,133
|
|
|
9,101
|
|
|
9,148
|
|
|
9,159
|
|
|
8,898
|
|
Earnings (losses) per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Basic
|
$
|
(2.70)
|
|
$
|
(7.87)
|
|
$
|
(6.26)
|
|
$
|
(5.49)
|
|
$
|
(40.52)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED
EPS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income (loss),
net of tax - diluted
|
$
|
(24,678)
|
|
$
|
(71,668)
|
|
$
|
(57,256)
|
|
$
|
(50,246)
|
|
$
|
(360,585)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number
of shares outstanding - diluted
|
|
9,133
|
|
|
9,101
|
|
|
9,148
|
|
|
9,159
|
|
|
8,898
|
|
Earnings (losses) per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Diluted
|
$
|
(2.70)
|
|
$
|
(7.87)
|
|
$
|
(6.26)
|
|
$
|
(5.49)
|
|
$
|
(40.52)
|
|
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
|
NON-GAAP FINANCIAL
MEASURES
|
|
RECONCILIATION OF
ADJUSTED EBITDA BY SEGMENT TO ADJUSTED OPERATING INCOME (LOSS) BY
SEGMENT
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
|
|
|
|
|
Three Months Ended
December 30, 2023
|
|
|
|
U.S.
Drilling
|
|
International
Drilling
|
|
Drilling
Solutions
|
|
Rig
Technologies
|
|
Other
reconciling
items
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss)
|
|
$
51,494
|
|
$
18,642
|
|
$
30,127
|
|
$
5,788
|
|
$ (37,176)
|
|
$ 68,875
|
|
Depreciation and
amortization
|
|
66,877
|
|
86,898
|
|
4,375
|
|
3,023
|
|
55
|
|
161,228
|
|
Adjusted
EBITDA
|
|
$118,371
|
|
$
105,540
|
|
$
34,502
|
|
$
8,811
|
|
$ (37,121)
|
|
$
230,103
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 30, 2022
|
|
|
|
U.S.
Drilling
|
|
International
Drilling
|
|
Drilling
Solutions
|
|
Rig
Technologies
|
|
Other
reconciling
items
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss)
|
|
$
68,293
|
|
$
1,750
|
|
$
24,800
|
|
$
6,118
|
|
$ (39,780)
|
|
$ 61,181
|
|
Depreciation and
amortization
|
|
75,849
|
|
87,088
|
|
5,536
|
|
1,443
|
|
(1,075)
|
|
168,841
|
|
Adjusted
EBITDA
|
|
$144,142
|
|
$
88,838
|
|
$
30,336
|
|
$
7,561
|
|
$ (40,855)
|
|
$
230,022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2023
|
|
|
|
U.S.
Drilling
|
|
International
Drilling
|
|
Drilling
Solutions
|
|
Rig
Technologies
|
|
Other
reconciling
items
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss)
|
|
$
49,582
|
|
$
9,862
|
|
$
25,341
|
|
$
4,995
|
|
$ (41,092)
|
|
$ 48,688
|
|
Depreciation and
amortization
|
|
67,775
|
|
86,313
|
|
5,078
|
|
2,226
|
|
(55)
|
|
161,337
|
|
Adjusted
EBITDA
|
|
$117,357
|
|
$
96,175
|
|
$
30,419
|
|
$
7,221
|
|
$ (41,147)
|
|
$
210,025
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December
31, 2023
|
|
|
|
U.S.
Drilling
|
|
International
Drilling
|
|
Drilling
Solutions
|
|
Rig
Technologies
|
|
Other
reconciling
items
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss)
|
|
$262,353
|
|
$
40,868
|
|
$ 110,957
|
|
$
19,529
|
|
$
(163,844)
|
|
$
269,863
|
|
Depreciation and
amortization
|
|
271,310
|
|
347,786
|
|
18,634
|
|
7,865
|
|
(301)
|
|
645,294
|
|
Adjusted
EBITDA
|
|
$533,663
|
|
$
388,654
|
|
$ 129,591
|
|
$
27,394
|
|
$
(164,145)
|
|
$
915,157
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December
31, 2022
|
|
|
|
U.S.
Drilling
|
|
International
Drilling
|
|
Drilling
Solutions
|
|
Rig
Technologies
|
|
Other
reconciling
items
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss)
|
|
$108,506
|
|
$
(879)
|
|
$
77,868
|
|
$
8,906
|
|
$
(150,081)
|
|
$ 44,320
|
|
Depreciation and
amortization
|
|
311,758
|
|
329,333
|
|
20,831
|
|
5,793
|
|
(2,643)
|
|
665,072
|
|
Adjusted
EBITDA
|
|
$420,264
|
|
$
328,454
|
|
$
98,699
|
|
$
14,699
|
|
$
(152,724)
|
|
$
709,392
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
NON-GAAP FINANCIAL
MEASURES
|
RECONCILIATION OF
ADJUSTED GROSS MARGIN BY SEGMENT TO ADJUSTED OPERATING INCOME
(LOSS) BY SEGMENT
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
(In
thousands)
|
|
2023
|
|
2022
|
|
2023
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
Lower 48 - U.S.
Drilling
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss)
|
|
$
40,108
|
|
$
58,299
|
|
$
40,366
|
|
$
215,041
|
|
$
68,317
|
|
Plus: General and
administrative costs
|
|
4,087
|
|
4,977
|
|
5,239
|
|
19,590
|
|
18,960
|
|
Plus: Research and
engineering
|
|
1,276
|
|
1,637
|
|
1,389
|
|
5,373
|
|
6,539
|
|
GAAP Gross
Margin
|
|
45,471
|
|
64,913
|
|
46,994
|
|
240,004
|
|
93,816
|
|
Plus: Depreciation and
amortization
|
|
59,545
|
|
62,768
|
|
60,447
|
|
238,033
|
|
256,907
|
|
Adjusted gross
margin
|
|
$
105,016
|
|
$
127,681
|
|
$
107,441
|
|
$
478,037
|
|
$
350,723
|
|
|
|
|
|
|
|
|
|
|
|
|
Other - U.S.
Drilling
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss)
|
|
$
11,386
|
|
$
9,994
|
|
$
9,216
|
|
$
47,312
|
|
$
40,189
|
|
Plus: General and
administrative costs
|
|
315
|
|
324
|
|
331
|
|
1,314
|
|
1,357
|
|
Plus: Research and
engineering
|
|
89
|
|
166
|
|
90
|
|
438
|
|
594
|
|
GAAP Gross
Margin
|
|
11,790
|
|
10,484
|
|
9,637
|
|
49,064
|
|
42,140
|
|
Plus: Depreciation and
amortization
|
|
7,332
|
|
13,081
|
|
7,329
|
|
33,277
|
|
54,852
|
|
Adjusted gross
margin
|
|
$
19,122
|
|
$
23,565
|
|
$
16,966
|
|
$
82,341
|
|
$
96,992
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Drilling
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss)
|
|
$
51,494
|
|
$
68,293
|
|
$
49,582
|
|
$
262,353
|
|
$
108,506
|
|
Plus: General and
administrative costs
|
|
4,402
|
|
5,301
|
|
5,570
|
|
20,904
|
|
20,317
|
|
Plus: Research and
engineering
|
|
1,365
|
|
1,803
|
|
1,479
|
|
5,811
|
|
7,133
|
|
GAAP Gross
Margin
|
|
57,261
|
|
75,397
|
|
56,631
|
|
289,068
|
|
135,956
|
|
Plus: Depreciation and
amortization
|
|
66,877
|
|
75,849
|
|
67,776
|
|
271,310
|
|
311,759
|
|
Adjusted gross
margin
|
|
$
124,138
|
|
$
151,246
|
|
$
124,407
|
|
$
560,378
|
|
$
447,715
|
|
|
|
|
|
|
|
|
|
|
|
|
International
Drilling
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss)
|
|
$
18,642
|
|
$
1,750
|
|
$
9,862
|
|
$
40,868
|
|
$
(879)
|
|
Plus: General and
administrative costs
|
|
14,899
|
|
13,368
|
|
14,300
|
|
57,624
|
|
51,505
|
|
Plus: Research and
engineering
|
|
1,560
|
|
1,542
|
|
1,622
|
|
6,789
|
|
5,903
|
|
GAAP Gross
Margin
|
|
35,101
|
|
16,660
|
|
25,784
|
|
105,281
|
|
56,529
|
|
Plus: Depreciation and
amortization
|
|
86,899
|
|
87,089
|
|
86,313
|
|
347,786
|
|
329,335
|
|
Adjusted gross
margin
|
|
$
122,000
|
|
$
103,749
|
|
$
112,097
|
|
$
453,067
|
|
$
385,864
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted gross margin
by segment represents adjusted operating income (loss) plus general
and administrative
|
|
|
|
|
costs, research and
engineering costs and depreciation and amortization.
|
|
|
|
|
|
|
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES TO NET INCOME (LOSS)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
(In
thousands)
|
|
2023
|
|
2022
|
|
2023
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
3,857
|
|
$
(58,155)
|
|
$
(31,244)
|
|
$
49,904
|
|
$
(307,218)
|
Income tax expense
(benefit)
|
|
19,244
|
|
26,161
|
|
10,513
|
|
79,220
|
|
61,536
|
Income (loss) from
continuing operations before income taxes
|
|
23,101
|
|
(31,994)
|
|
(20,731)
|
|
129,124
|
|
(245,682)
|
Investment (income)
loss
|
|
(12,042)
|
|
(9,194)
|
|
(10,169)
|
|
(43,820)
|
|
(14,992)
|
Interest
expense
|
|
49,938
|
|
44,245
|
|
44,042
|
|
185,285
|
|
177,895
|
Other, net
|
|
7,878
|
|
58,124
|
|
35,546
|
|
(726)
|
|
127,099
|
Adjusted operating
income (loss) (1)
|
|
68,875
|
|
61,181
|
|
48,688
|
|
269,863
|
|
44,320
|
Depreciation and
amortization
|
|
161,228
|
|
168,841
|
|
161,337
|
|
645,294
|
|
665,072
|
Adjusted EBITDA
(2)
|
|
$
230,103
|
|
$
230,022
|
|
$
210,025
|
|
$
915,157
|
|
$
709,392
|
|
|
|
|
|
|
|
|
|
|
|
(1) Adjusted operating
income (loss) represents net income (loss) before income tax
expense (benefit), investment income (loss), interest expense, and
other, net. Adjusted operating income (loss) is a non-GAAP
financial measure and should not be used in isolation or as a
substitute for the amounts reported in accordance with GAAP. In
addition, adjusted operating income (loss) excludes certain cash
expenses that the Company is obligated to make. However, management
evaluates the performance of its operating segments and the
consolidated Company based on several criteria, including adjusted
EBITDA and adjusted operating income (loss), because it believes
that these financial measures accurately reflect the Company's
ongoing profitability and performance. Securities analysts
and investors use this measure as one of the metrics on which they
analyze the Company's performance. Other companies in this
industry may compute these measures
differently.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Adjusted EBITDA
represents net income (loss) before income tax expense (benefit),
investment income (loss), interest expense, other, net and
depreciation and amortization. Adjusted EBITDA is a non-GAAP
financial measure and should not be used in isolation or as a
substitute for the amounts reported in accordance with GAAP. In
addition, adjusted EBITDA excludes certain cash expenses that the
Company is obligated to make. However, management evaluates the
performance of its operating segments and the consolidated Company
based on several criteria, including adjusted EBITDA and adjusted
operating income (loss), because it believes that these financial
measures accurately reflect the Company's ongoing profitability and
performance. Securities analysts and investors use this
measure as one of the metrics on which they analyze the Company's
performance. Other companies in this industry may compute
these measures differently.
|
|
|
|
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
RECONCILIATION OF
NET DEBT TO TOTAL DEBT
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
(In
thousands)
|
|
2023
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
Current debt
|
|
$
629,621
|
|
$
-
|
|
$
-
|
Long-term
debt
|
|
2,511,519
|
|
2,501,339
|
|
2,537,540
|
Total Debt
|
|
3,141,140
|
|
2,501,339
|
|
2,537,540
|
Less: Cash and
short-term investments
|
|
1,070,178
|
|
406,643
|
|
452,315
|
Net Debt
|
|
$
2,070,962
|
|
$
2,094,696
|
|
$
2,085,225
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
RECONCILIATION OF
ADJUSTED FREE CASH FLOW TO
|
NET CASH PROVIDED BY
OPERATING ACTIVITIES
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
(In
thousands)
|
|
2023
|
|
2023
|
|
2023
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
181,921
|
|
$
133,425
|
|
$
637,862
|
|
Add: Capital
expenditures, net of proceeds from sales of assets
|
|
(129,700)
|
|
(138,583)
|
|
(526,718)
|
|
|
|
|
|
|
|
|
|
Adjusted free cash
flow
|
|
$
52,221
|
|
$
(5,158)
|
|
$
111,144
|
|
|
|
|
|
|
|
|
|
Adjusted free cash flow
represents net cash provided by operating activities less cash used
for capital expenditures, net of proceeds from sales of
assets. Management believes that adjusted free cash flow is
an important liquidity measure for the company and that it is
useful to investors and management as a measure of the company's
ability to generate cash flow, after reinvesting in the company for
future growth, that could be available for paying down debt or
other financing cash flows, such as dividends to
shareholders. Adjusted free cash flow does not represent the
residual cash flow available for discretionary expenditures.
Adjusted free cash flow is a non-GAAP financial measure that should
be considered in addition to, not as a substitute for or superior
to, cash flow from operations reported in accordance with
GAAP.
|
View original
content:https://www.prnewswire.com/news-releases/nabors-announces-fourth-quarter-2023-results-302055253.html
SOURCE Nabors Industries Ltd.