Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): October 25, 2023

NABORS INDUSTRIES LTD.

(Exact name of registrant as specified in its charter)

Bermuda	001-32657	98-0363970

(State or Other Jurisdiction of Incorporation or Organization)	(Commission File Number)	(I.R.S. Employer Identification No.)

Crown House 4 Par-la-Ville Road Second Floor Hamilton, HM08 Bermuda		N/A
(Address of principal executive offices)		(Zip Code)

(441) 292-1510

(Registrant’s telephone number, including area code)

N/A

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Title of each class		Trading Symbol(s)		Name of exchange on which registered
Common shares		NBR		NYSE

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 2.02 Results of Operations and Financial Condition.

On October 25, 2023, Nabors Industries Ltd. (“Nabors”) issued a press release announcing its results of operations for the three months ended September 30, 2023. A copy of that release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.

On October 26th, 2023, Nabors will hold a conference call at 1:00 p.m. Central Time, regarding the Company’s financial results for the quarter ended September 30, 2023. Information about the call—including dial-in information, recording and replay of the call, and supplemental information—is available on the Investor Relations page of www.nabors.com.

The information in this Item 2.02, including Exhibits 99.1 and 99.2, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act, of 1934 or otherwise subject to liabilities of that Section or Sections 11 and 12(a)(2) of the Securities Act of 1933.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.		Description

99.1		Press Release

99.2		Investor Information

104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	NABORS INDUSTRIES LTD.

Date: October 25, 2023	By:	/s/ Mark D. Andrews
		Name: Mark D. Andrews
		Title: Corporate Secretary

Exhibit 99.1

NEWS RELEASE

Nabors Announces Third Quarter 2023 Results

HAMILTON, Bermuda, October 25, 2023 /PRNewswire/ - Nabors Industries Ltd. (“Nabors” or the “Company”) (NYSE: NBR) today reported third quarter 2023 operating revenues of $734 million, compared to operating revenues of $767 million in the second quarter. The net loss attributable to Nabors shareholders for the quarter was $49 million, compared to net income of $5 million in the second quarter. This equates to a loss of $6.26 per diluted share, compared to a loss per diluted share of $0.31 in the second quarter. The third quarter results included a charge, related to mark-to-market treatment of Nabors warrants, of $8 million, or $0.86 per diluted share, compared to a gain of $18 million, or $1.95 per diluted share, in the second quarter. Third quarter adjusted EBITDA was $210 million, compared to $235 million in the previous quarter.

Anthony G. Petrello, Nabors Chairman, CEO and President, commented, “Drilling activity across our markets generally met our expectations. As we had anticipated in the Lower 48, rig count decreased in the third quarter but it appears to have bottomed, while leading-edge pricing also seems to have stabilized. The reduced drilling activity in the U.S. did impact our Nabors Drilling Solutions and Rig Technologies results somewhat more than we expected. In line with our forecasts, international markets have continued to expand with higher pricing.

“During the quarter we experienced challenges with our newbuild rigs and some of their critical components in Saudi Arabia, which resulted in deployment delays and significant downtime. We are currently addressing the quality assurance issues on these assets delivered by our third-party supplier. We expect our supplier’s performance to improve rapidly as its local manufacturing experience increases.

“On the positive side, margins in our Lower 48 operation remained at higher levels than in any prior upcycle. During the third quarter we saw the early signs of the expected market upturn. In preparation, we have 14 warm stacked rigs ready to return to work immediately at minimum cost, as soon as drilling activity turns around.

“In our International segment, multiple rigs commenced operations, contributing to an increase in sequential revenue. We are encouraged by the prospects for a significant number of additional rigs in our international markets through 2024 and beyond.

“Broad demand for our technology portfolio in Nabors Drilling Solutions drove meaningful increases in U.S. third-party and international revenue.

“In Rig Technologies, our Energy Transition initiatives continued to gain momentum as we expanded our PowerTAP deployments, and our customers increased their demand for our innovative solutions.”

Segment Results

The U.S. Drilling segment reported $117.4 million in adjusted EBITDA for the third quarter of 2023. Nabors’ average Lower 48 rig count totaled 74. Daily adjusted gross margin in the Lower 48 market averaged $15,855.

NEWS RELEASE

International Drilling adjusted EBITDA totaled $96.2 million. Improved results across multiple markets were offset by start-up expenses in Saudi Arabia and lower rig count in Colombia and Kuwait. International rig count averaged 77, in line with the previous quarter. Daily adjusted gross margin for the third quarter averaged $15,778, down approximately 3% from the prior quarter.

Drilling Solutions adjusted EBITDA declined sequentially by approximately $2.3 million, to $30.4 million. Growth of 8% in both U.S. third-party revenue and international operations was more than offset by decreased Lower 48 activity on the reductions in Nabors rig count.

In Rig Technologies, adjusted EBITDA totaled $7.2 million, compared to $6.4 million in the second quarter. Increases in aftermarket margins and growth from the Energy Transition products accounted for the sequential improvement in adjusted EBITDA.

Adjusted Free Cash Flow

Adjusted free cash flow was negative $5 million in the third quarter. Capital expenditures totaled $157 million, which included $52 million for the newbuilds in Saudi Arabia. This compares to $152 million in the second quarter, including $66 million supporting the newbuilds in Saudi Arabia.

At the end of the third quarter, net debt was $2.1 billion.

William Restrepo, Nabors CFO, stated, “The results delivered by our operating rigs were encouraging. Our rig count in the Lower 48 held up well in the third quarter despite total market rig count landing a bit below expectations. In addition, our revenue per day and daily gross margin remained near the record high levels set the prior quarter. We remain well positioned to take advantage of any recovery in U.S. drilling activity. Internationally we continued to deploy rigs at attractive pricing, offsetting the contract expirations in Colombia and Kuwait. In the fourth quarter we expect rig count increases in the U.S. as well as in international markets, as compared to the current levels. And we expect Nabors Drilling Solutions to resume its growth trajectory.

“During the quarter, on top of the $5 million EBITDA shortfall on our new builds in Saudi Arabia, we faced several unexpected items that negatively affected our adjusted free cash flow. Most of these were one-offs or timing shifts across quarters. Capital expenditures were the largest of these items as they exceeded our forecast by $33 million. This increase was driven by higher capital spending in Saudi Arabia and by the $9.5 million purchase of our operating base in Vaca Muerta, Argentina. We had been attempting without success to lock in this critical facility over the last couple of years and had the opportunity to do so during the third quarter. We expect capital spending to fall materially in the fourth quarter as these items should not repeat. In addition, our accounts receivable and other working capital items were approximately $40 million higher than we had forecast at the end of last quarter. We expect this impact to reverse in the fourth quarter.

“Mainly as a result of higher capital expenditures, an EBITDA shortfall in Saudi Arabia of $11 million in the second half, and lower NDS and Rig Technologies EBITDA of about $13 million combined in the second half, our full year free cash flow is now expected to total $225 to $250 million, as compared to our prior forecast at the end of the second quarter of $300 to $350 million. The impact from higher capital expenditures during the second half, an increment of approximately $40 million, comes from the acceleration of deployments in Algeria, which will shift $20 million in capital expenditures from early 2024 into the fourth quarter of 2023, from capital spending in Saudi Arabia which is expected to be some $10 million higher than forecast earlier, and from the acquisition of the Vaca Muerta base, which was not part of our prior forecast.

NEWS RELEASE

“We are now beginning the forecasting process for 2024. Although we are not yet ready to discuss these projections, we do expect meaningful year over year increases in both EBITDA and free cash flow.”

Outlook

Nabors expects the following metrics for the fourth quarter 2023:

U.S. Drilling

Lower 48 average rig count of 72 - 74 rigs

Lower 48 adjusted gross margin per day of $15,000 - $15,200

Alaska and Gulf of Mexico adjusted EBITDA up by $1.5 million

International

Rig count up by one to two rigs versus the third quarter average

Adjusted gross margin per day of approximately $16,200 - $16,300

Drilling Solutions

Adjusted EBITDA up by approximately 10% vs the third quarter

Rig Technologies

Adjusted EBITDA up by approximately 20% vs the third quarter

Capital Expenditures

Capital expenditures of $95 million, with approximately $35 million for the newbuilds in Saudi Arabia

Adjusted Free Cash Flow

Adjusted free cash flow for the fourth quarter of $165 to $190 million and for the full year 2023 of $225 to $250 million

Mr. Petrello concluded, “As we look to the fourth quarter, we expect improvements in our financial results, especially in free cash flow. With the international expansion already in hand, and the indications we have seen for growth in the U.S., we are positioned for meaningful improvement in 2024. The momentum we are now generating with our Energy Transition initiatives gives us additional confidence in this positive outlook.”

NEWS RELEASE

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.

NEWS RELEASE

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									Nine Months Ended
	September 30,						June 30,			September 30,
(In thousands, except per share amounts)	2023			2022			2023			2023			2022
Revenues and other income:
Operating revenues	$	733,974		$	694,136		$	767,067		$	2,280,180		$	1,893,618
Investment income (loss)		10,169			4,813			11,743			31,778			5,798
Total revenues and other income		744,143			698,949			778,810			2,311,958			1,899,416

Costs and other deductions:
Direct costs		447,751			432,311			455,531			1,365,611			1,208,820
General and administrative expenses		62,182			57,594			63,232			187,144			169,400
Research and engineering		14,016			13,409			13,281			42,371			36,028
Depreciation and amortization		161,337			169,857			159,698			484,066			496,231
Interest expense		44,042			43,841			46,164			135,347			133,650
Other, net		35,546			(25,954	)		(1,775	)		(8,604	)		68,975
Total costs and other deductions		764,874			691,058			736,131			2,205,935			2,113,104

Income (loss) before income taxes		(20,731	)		7,891			42,679			106,023			(213,688	)
Income tax expense (benefit)		10,513			12,352			26,448			59,976			35,376

Net income (loss)		(31,244	)		(4,461	)		16,231			46,047			(249,064	)
Less: Net (income) loss attributable to noncontrolling interest		(17,672	)		(9,322	)		(11,620	)		(41,128	)		(32,132	)
Net income (loss) attributable to Nabors	$	(48,916	)	$	(13,783	)	$	4,611		$	4,919		$	(281,196	)

Earnings (losses) per share:
Basic	$	(6.26	)	$	(1.80	)	$	(0.31	)	$	(2.79	)	$	(32.72	)
Diluted	$	(6.26	)	$	(1.80	)	$	(0.31	)	$	(2.79	)	$	(32.72	)

Weighted-average number of common shares outstanding:
Basic		9,148			9,099			9,195			9,168			8,830
Diluted		9,148			9,099			9,195			9,168			8,830

Adjusted EBITDA	$	210,025		$	190,822		$	235,023		$	685,054		$	479,370

Adjusted operating income (loss)	$	48,688		$	20,965		$	75,325		$	200,988		$	(16,861	)

NABORS INDUSTRIES LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)


	September 30,		June 30,		December 31,
(In thousands)	2023		2023		2022
ASSETS
Current assets:
Cash and short-term investments	$	406,643	$	429,059	$	452,315
Accounts receivable, net		324,970		297,388		327,397
Other current assets		228,941		251,687		220,911
Total current assets		960,554		978,134		1,000,623
Property, plant and equipment, net		2,945,964		2,963,898		3,026,100
Other long-term assets		820,332		521,235		703,131
Total assets	$	4,726,850	$	4,463,267	$	4,729,854

LIABILITIES AND EQUITY
Current liabilities:
Trade accounts payable	$	287,228	$	301,751	$	314,041
Other current liabilities		241,475		242,514		282,349
Total current liabilities		528,703		544,265		596,390
Long-term debt		2,501,339		2,503,250		2,537,540
Other long-term liabilities		314,441		310,263		380,529
Total liabilities		3,344,483		3,357,778		3,514,459

Redeemable noncontrolling interest in subsidiary		834,195		513,817		678,604

Equity:
Shareholders' equity		348,234		402,650		368,956
Noncontrolling interest		199,938		189,022		167,835
Total equity		548,172		591,672		536,791
Total liabilities and equity	$	4,726,850	$	4,463,267	$	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									Nine Months Ended
	September 30,						June 30,			September 30,
(In thousands, except rig activity)	2023			2022			2023			2023			2022
Operating revenues:
U.S. Drilling	$	276,385		$	297,178		$	314,830		$	941,867		$	767,769
International Drilling		344,780			306,355			337,650			1,002,478			881,705
Drilling Solutions		72,831			61,981			76,855			224,729			172,042
Rig Technologies (1)		61,437			50,496			63,565			183,481			132,326
Other reconciling items (2)		(21,459	)		(21,874	)		(25,833	)		(72,375	)		(60,224	)
Total operating revenues	$	733,974		$	694,136		$	767,067		$	2,280,180		$	1,893,618

Adjusted EBITDA: (3)
U.S. Drilling	$	117,357		$	114,486		$	141,446		$	415,292		$	276,122
International Drilling		96,175			85,922			98,331			283,114			239,616
Drilling Solutions		30,419			25,612			32,756			95,089			68,363
Rig Technologies (1)		7,221			4,818			6,408			18,583			7,138
Other reconciling items (4)		(41,147	)		(40,016	)		(43,918	)		(127,024	)		(111,869	)
Total adjusted EBITDA	$	210,025		$	190,822		$	235,023		$	685,054		$	479,370

Adjusted operating income (loss): (5)
U.S. Drilling	$	49,582		$	37,776		$	75,408		$	210,859		$	40,213
International Drilling		9,862			(907	)		10,407			22,226			(2,629	)
Drilling Solutions		25,341			20,099			28,351			80,830			53,068
Rig Technologies (1)		4,995			3,412			5,052			13,741			2,788
Other reconciling items (4)		(41,092	)		(39,415	)		(43,893	)		(126,668	)		(110,301	)
Total adjusted operating income (loss)	$	48,688		$	20,965		$	75,325		$	200,988		$	(16,861	)

Rig activity:
Average Rigs Working: (7)
Lower 48		73.7			92.1			81.6			82.8			88.3
Other US		6.7			7.7			7.0			6.9			7.2
U.S. Drilling		80.4			99.8			88.6			89.7			95.5
International Drilling		77.2			74.6			77.1			76.9			73.6
Total average rigs working		157.6			174.4			165.7			166.6			169.1

Daily Rig Revenue: (6),(8)
Lower 48	$	35,697		$	29,190		$	36,751		$	36,324		$	26,050
Other US		56,163			70,661			65,860			64,312			70,953
U.S. Drilling (10)		37,397			32,380			39,049			38,474			29,449
International Drilling		48,528			44,658			48,106			47,728			43,859

Daily Adjusted Gross Margin: (6),(9)
Lower 48	$	15,855		$	11,165		$	16,890		$	16,505		$	9,225
Other US		27,631			38,034			35,932			33,618			37,215
U.S. Drilling (10)		16,833			13,232			18,394			17,820			11,371
International Drilling		15,778			14,589			16,276			15,762			14,033

(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									Nine Months Ended
	September 30,						June 30,			September 30,
(in thousands, except per share amounts)	2023			2022			2023			2023			2022
BASIC EPS:
Net income (loss) (numerator):
Income (loss), net of tax	$	(31,244	)	$	(4,461	)	$	16,231		$	46,047		$	(249,064	)
Less: net (income) loss attributable to noncontrolling interest		(17,672	)		(9,322	)		(11,620	)		(41,128	)		(32,132	)
Less: deemed dividends to SPAC public shareholders		(823	)		—			—			(8,180	)		—
Less: accrued distribution on redeemable noncontrolling interest in subsidiary		(7,517	)		(2,601	)		(7,436	)		(22,307	)		(7,720	)
Numerator for basic earnings per share:
Adjusted income (loss), net of tax - basic	$	(57,256	)	$	(16,384	)	$	(2,825	)	$	(25,568	)	$	(288,916	)

Weighted-average number of shares outstanding - basic		9,148			9,099			9,195			9,168			8,830
Earnings (losses) per share:
Total Basic	$	(6.26	)	$	(1.80	)	$	(0.31	)	$	(2.79	)	$	(32.72	)

DILUTED EPS:
Adjusted income (loss), net of tax - diluted	$	(57,256	)	$	(16,384	)	$	(2,825	)	$	(25,568	)	$	(288,916	)

Weighted-average number of shares outstanding - diluted		9,148			9,099			9,195			9,168			8,830
Earnings (losses) per share:
Total Diluted	$	(6.26	)	$	(1.80	)	$	(0.31	)	$	(2.79	)	$	(32.72	)

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 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

	Three Months Ended September 30, 2022
	U.S. Drilling		International Drilling			Drilling Solutions		Rig Technologies		Other reconciling items			Total
Adjusted operating income (loss)	$	37,776	$	(907	)	$	20,099	$	3,412	$	(39,415	)	$	20,965
Depreciation and amortization		76,710		86,829			5,513		1,406		(601	)		169,857
Adjusted EBITDA	$	114,486	$	85,922		$	25,612	$	4,818	$	(40,016	)	$	190,822

	Three Months Ended June 30, 2023
	U.S. Drilling		International Drilling		Drilling Solutions		Rig Technologies		Other reconciling items			Total
Adjusted operating income (loss)	$	75,408	$	10,407	$	28,351	$	5,052	$	(43,893	)	$	75,325
Depreciation and amortization		66,038		87,924		4,405		1,356		(25	)		159,698
Adjusted EBITDA	$	141,446	$	98,331	$	32,756	$	6,408	$	(43,918	)	$	235,023

	Nine Months Ended September 30, 2023
	U.S. Drilling		International Drilling		Drilling Solutions		Rig Technologies		Other reconciling items			Total
Adjusted operating income (loss)	$	210,859	$	22,226	$	80,830	$	13,741	$	(126,668	)	$	200,988
Depreciation and amortization		204,433		260,888		14,259		4,842		(356	)		484,066
Adjusted EBITDA	$	415,292	$	283,114	$	95,089	$	18,583	$	(127,024	)	$	685,054

	Nine Months Ended September 30, 2022
	U.S. Drilling		International Drilling			Drilling Solutions		Rig Technologies		Other reconciling items			Total
Adjusted operating income (loss)	$	40,213	$	(2,629	)	$	53,068	$	2,788	$	(110,301	)	$	(16,861	)
Depreciation and amortization		235,909		242,245			15,295		4,350		(1,568	)		496,231
Adjusted EBITDA	$	276,122	$	239,616		$	68,363	$	7,138	$	(111,869	)	$	479,370

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							Nine Months Ended
	September 30,					June 30,		September 30,
(in thousands)	2023		2022			2023		2023		2022
Lower 48 - U.S. Drilling
Adjusted operating income (loss)	$	40,366	$	25,551		$	60,496	$	174,933	$	10,018
Plus: General and administrative costs		5,239		4,798			5,209		15,503		13,983
Plus: Research and engineering		1,389		1,652			1,189		4,098		4,902
GAAP Gross Margin		46,994		32,001			66,894		194,534		28,903
Plus: Depreciation and amortization		60,447		62,583			58,533		178,487		194,139
Adjusted gross margin	$	107,441	$	94,584		$	125,427	$	373,021	$	223,042

Other - U.S. Drilling
Adjusted operating income (loss)	$	9,216	$	12,225		$	14,912	$	35,926	$	30,195
Plus: General and administrative costs		331		343			323		999		1,034
Plus: Research and engineering		90		157			132		349		428
GAAP Gross Margin		9,637		12,725			15,367		37,274		31,657
Plus: Depreciation and amortization		7,329		14,127			7,504		25,945		41,770
Adjusted gross margin	$	16,966	$	26,852		$	22,871	$	63,219	$	73,427

U.S. Drilling
Adjusted operating income (loss)	$	49,582	$	37,776		$	75,408	$	210,859	$	40,213
Plus: General and administrative costs		5,570		5,141			5,532		16,502		15,017
Plus: Research and engineering		1,479		1,809			1,321		4,447		5,330
GAAP Gross Margin		56,631		44,726			82,261		231,808		60,560
Plus: Depreciation and amortization		67,776		76,710			66,037		204,432		235,909
Adjusted gross margin	$	124,407	$	121,436		$	148,298	$	436,240	$	296,469

International Drilling
Adjusted operating income (loss)	$	9,862	$	(907	)	$	10,407	$	22,226	$	(2,629	)
Plus: General and administrative costs		14,300		12,599			14,089		42,725		38,137
Plus: Research and engineering		1,622		1,558			1,821		5,229		4,360
GAAP Gross Margin		25,784		13,250			26,317		70,180		39,868
Plus: Depreciation and amortization		86,313		86,830			87,924		260,887		242,247
Adjusted gross margin	$	112,097	$	100,080		$	114,241	$	331,067	$	282,115

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									Nine Months Ended
	September 30,						June 30,			September 30,
(In thousands)	2023			2022			2023			2023			2022
Net income (loss)		(31,244	)		(4,461	)		16,231			46,047			(249,064	)
Income tax expense (benefit)		10,513			12,352			26,448			59,976			35,376
Income (loss) from continuing operations before income taxes		(20,731	)		7,891			42,679			106,023			(213,688	)
Investment (income) loss		(10,169	)		(4,813	)		(11,743	)		(31,778	)		(5,798	)
Interest expense		44,042			43,841			46,164			135,347			133,650
Other, net		35,546			(25,954	)		(1,775	)		(8,604	)		68,975
Adjusted operating income (loss) (1)		48,688			20,965			75,325			200,988			(16,861	)
Depreciation and amortization		161,337			169,857			159,698			484,066			496,231
Adjusted EBITDA (2)	$	210,025		$	190,822		$	235,023		$	685,054		$	479,370

(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)


	September 30,		June 30,		December 31,
(In thousands)	2023		2023		2022
Long-term debt	$	2,501,339	$	2,503,250	$	2,537,540
Less: Cash and short-term investments		406,643		429,059		452,315
Net Debt	$	2,094,696	$	2,074,191	$	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						Nine Months Ended
	September 30,			June 30,			September 30,
(In thousands)	2023			2023			2023
Net cash provided by operating activities	$	133,425		$	168,466		$	455,941
Add: Capital expenditures, net of proceeds from sales of assets		(138,583	)		(141,683	)		(397,018	)
Adjusted free cash flow	$	(5,158	)	$	26,783		$	58,923

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.

Exhibit 99.2

NABORS INDUSTRIES LTD. October 26, 2023 3Q 2023 Earnings Presentation

N A B O R S . C O M 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 document that relate to matters that are not historical facts, are “forward-looking statements” within the meaning of the safe harbor provisions of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. These “forward-looking statements” are based on our analysis of currently available competitive, financial and economic data and our operating plans. They are inherently uncertain, and investors should recognize that events and actual results could turn out to be significantly different from our expectations. Factors to consider when evaluating these forward-looking statements include, but are not limited to: • geopolitical events, pandemics (including COVID-19) and other macro-events and their respective and collective impact on our operations as well as oil and gas markets and prices; • fluctuations and volatility in worldwide prices of and demand for oil and natural gas; • fluctuations in levels of oil and natural gas exploration and development activities; • fluctuations in the demand for our services; • competitive and technological changes and other developments in the oil and gas and oilfield services industries; • our ability to renew customer contracts in order to maintain competitiveness; • the existence of operating risks inherent in the oil and gas and oilfield services industries; • the possibility of the loss of one or a number of our large customers; • the impact of long-term indebtedness and other financial commitments on our financial and operating flexibility; • our access to and the cost of capital, including the impact of a further downgrade in our credit rating, covenant restrictions, availability under our revolving credit facility, and future issuances of debt or equity securities and the global interest rate environment; • our dependence on our operating subsidiaries and investments to meet our financial obligations; 2 Forward Looking Statements • our ability to retain skilled employees; • our ability to complete, and realize the expected benefits of, strategic transactions; • changes in tax laws and the possibility of changes in other laws and regulation; • the possibility of changes to U.S. trade policies and regulations including the imposition of trade embargoes or sanctions; and • global views on and the regulatory environment related to energy transition and our ability to implement our energy transition initiatives; • the possibility of changes to U.S. trade policies and regulations including the imposition of trade embargoes, sanctions or tariffs; and • general economic conditions, including the capital and credit markets. Our businesses depend, to a large degree, on the level of spending by oil and gas companies for exploration, development and production activities. Therefore, sustained lower oil or natural gas prices that have a material impact on exploration, development or production activities could also materially affect our financial position, results of operations and cash flows. 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 Securities and Exchange Commission ("SEC"), including those contained in our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q, which are available at the SEC's website at www.sec.gov. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law. Non-GAAP Financial Measures This presentation refers to certain “non-GAAP” financial measures, such as adjusted EBITDA, net debt, adjusted gross margin and adjusted free cash flow. 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”). Reconciliations of non-GAAP measures to the most comparable GAAP measures are provided in the Appendix at the end of this presentation.

N A B O R S . C O M 3 September 30 Rig Utilization and Availability RIG FLEET(1)(2) 326 RIGS ON REVENUE(1) 155 UTILIZATION AT 9/30/2023 49% TOTAL U.S. OFFSHORE 12 3 25% 16 4 25% ALASKA INTERNATIONAL 133 77 58% 111 71 64% U.S. LOWER-48 HIGH SPEC(2) (1) As of September 30, 2023 (2) Excludes non-high spec rigs in the Lower 48

N A B O R S . C O M Focus on leverage Expecting $225-$250M FCF in 2023 Net debt reduction of $66M, or 3%, from 3Q a year ago RCF undrawn on Sept 30th 3Q 2023 adjusted EBITDA of $210M Adjusted EBITDA up 10% year-on-year Drilling Solutions progress 3Q adjusted EBITDA of $30M Adjusted gross margin(1) of 51% in 3Q Grew 3Q U.S. third party and international revenue each by 8% vs 2Q Adjusted EBITDA up 19% year-on-year 12 International awards Saudi Arabia update: • 4th newbuild was deployed in mid-3Q • 4 rigs anticipated to start in 2024 • Awarded third tranche of 5 newbuild rigs Awarded 2 rigs in Colombia in 3Q Awarded 4 rigs in Algeria Opportunities for additional rigs in Latin America and Middle East ESG momentum Growing revenue and EBITDA from our Energy Transition portfolio SMARTPower™ 5 commercial installs On target to meet emissions reduction goal for 2023 Recent Highlights Note: For reconciliations of adjusted EBITDA, adjusted gross margin, net debt and adjusted free cash flow to the most comparable GAAP measure, see non-GAAP measures in the Appendix Stabilization in L48 rig count and leading edge pricing Daily adjusted gross margin higher than that of any quarter prior to 2023 (1) Adjusted gross margin percent represents adjusted gross margin divided by total revenue

N A B O R S . C O M Performance excellence in the Lower-48 Expanding & enhancing our International segment Advancing technology & innovation with demonstrated results Progress on our commitment to de-lever Leading in Sustainability and the Energy Transition Five Keys to Excellence 1 2 3 4 5

N A B O R S . C O M $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2021 2022 2023 L48 Drilling Adjusted Daily Gross Margin(1) $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2021 2022 2023 L48 Drilling Daily Rig Revenue(1) 6 Powerful daily revenue and margins 1 Performance Excellence In The Lower-48 Daily Revenue and Margin Holding above Prior Cycle Highs (1) Daily rig revenue and adjusted daily gross margin for drilling rigs only, does not include Nabors Drilling Solutions

N A B O R S . C O M $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2021 2022 2023 L48 Drilling Adjusted Daily Gross Margin(1) 0 10 20 30 40 50 60 70 80 90 100 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2021 2022 2023 L48 Drilling Average Rig Count 7 Disciplined pricing maintains attractive daily margins 1 Performance Excellence In The Lower-48 Margins Remain Robust as Rig Count Challenged by Commodity Prices (1) Adjusted daily gross margin for drilling rigs only, does not include Nabors Drilling Solutions

N A B O R S . C O M $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2021 2022 2023 International Drilling Adjusted Daily Gross Margin(1) $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2021 2022 2023 International Drilling Daily Rig Revenue(1) Working to enhance both the top and bottom line 9 International Focus Growing Dayrates and Margin 2 Resilience Leading to Growth in Our International Segment (1) Daily rig revenue and adjusted daily gross margin for drilling rigs only, does not include Nabors Drilling Solutions

N A B O R S . C O M 50 55 60 65 70 75 80 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2021 2022 2023 International Drilling Average Rig Count $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2021 2022 2023 International Drilling Adjusted Daily Gross Margin(1) Increases in rig activity while generating solid margins 10 Growing International Rig Count with Attractive Margins 2 Resilience Leading to Growth in Our International Segment (1) Adjusted daily gross margin for drilling rigs only, does not include Nabors Drilling Solutions

N A B O R S . C O M 40 45 50 55 1Q 2Q 3Q 4Q 1QA 2QA 3QA 4QF 1Q 2Q 3Q 4Q 2022 A 2023 2024 F SANAD Estimated Average Rig Count Potential* 11 Significant Growth Trajectory in Saudi Arabia Resilience Leading to Growth in Our International Segment • Awarded 15 total rigs to-date • 50 rigs to be deployed over 10 years • First startup in 3Q’22, second in 4Q’22, third in 2Q’23, fourth in 3Q’23 and four more expected in 2024 • Capital expense funded organically by SANAD • 6-year initial contracts, payout within 5 years, plus 4-year renewal at market rate Newbuild Program Generating Revenue • These estimates are based on current market conditions and expectations are based on information received from third parties, which are subject to change. The estimates do not represent guidance or projections. 2

N A B O R S . C O M 30% 35% 40% 45% 50% 55% 60% 65% $- $10 $20 $30 $40 $50 $60 $70 $80 $90 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2021 2022 2023 NDS Revenue & Adjusted Gross Margin Revenue Adjusted gross margin Adjusted GM % 13 NDS Capitalizing on Higher Penetration Improving Outlook For Our Technology & Innovation Revenue(1) Up 104% Adjusted GM(1) Up 124% Expanding our high-value / high-margin low-capital technology services 3 Adjusted gross margin of 51% in 3Q 2023 (1) Compared to 1Q 2021 “The results [of the collaboration] are delivering faster ROP, lower vibration and reducing thousands of distractions per well for drillers.” Curtis Cheatham, VP of Research and Development at Corva on Predictive Drilling collaboration

N A B O R S . C O M 14 3 Improving Outlook For Our Technology & Innovation Successful Predictive-Drilling Closed Loop Test in Delaware Basin • ROP (Rate of Penetration) and WOB (Weight on Bit) maintained in an optimal band while also reducing variance between crews • Vibration filters actively adjust to reduce bit and tool wear, with an observed 9.7% reduction in average vibration • On-bottom ROP in the lateral improved 36% with Predictive Drilling turned on versus off, within wells and against offsets • Enables real-time remote control of the rig Auto Driller through seamless cloud-to-cloud connection, with no additional rig devices

N A B O R S . C O M 0 500 1000 1500 2000 2500 3000 3500 4000 Q2'18 Q4'18 Q2'19 Q4'19 Q2'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2 '23 Q3 '23 Cumulative Number of Wells Drilled 15 Smart Suite Growth Maintains Upward Trajectory Improving Outlook For Our Technology & Innovation 3,500+ Wells Drilled 65+ Million Feet Drilled SmartDRILL® Automation Commercialization SmartNAV® & SmartSLIDE® Solutions Commercialization Third-Party SmartDRILL® Deployment 3 Third-Party SmartSLIDE® Deployment

N A B O R S . C O M $- $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2018 2019 2020 2021 2022 2023 Billions Net Debt 17 Significant Headway toward Financial Goals 4 Progress on Our Commitment to De-lever ~ $1.8B Net Debt(1) reduction from previous high in 1Q 2018 $1.8B (1) Net Debt is a non-GAAP metric; see reconciliations in the Appendix

N A B O R S . C O M 5 Leading in Sustainability and the Energy Transition Energy Innovation vs. Energy Exclusion Remove tradeoffs between energy sources 19 A Shared Path Forward Capitalize on Strengths and Adjacencies Can we add value to other industries? Collaboration is Key to Success Leverage collective strengths to accelerate progress

N A B O R S . C O M 5 Leading in Sustainability and the Energy Transition 20 Nabors Initiatives to Lower Emissions Pursuing Multiple Decarbonization Pathways Cleaner Fuels Energy Storage Engine Optimization Emissions Monitoring Alternative Energy

5 Leading in Sustainability and the Energy Transition Emissions Monitoring Energy Storage Alternative Energy Our Venture Portfolio Future energy system needs clean, dispatchable and scalable energy solutions N A B O R S . C O M 21

N A B O R S . C O M 22 Ubiquitous Ability to create heat reservoirs by drilling into deep rock formations Innovative Drilling Technologies Reducing cost per energy-unit produced by using and combining new technologies Baseload Reliable and available 24/7 Renewable Subsurface heat replenished naturally Nabors and its predecessor entities have been continuously innovating in the energy sector for over 100 years Geothermal Market Technology Advancements Technological advancements are enabling wide-scale commercial geothermal development Leading in Sustainability and the Energy Transition 5

N A B O R S . C O M Appendix 23

N A B O R S . C O M September 30, June 30, September 30, 2022 2023 2023 Net income (loss) ($4,461) $16,231 ($31,244) Income tax expense (benefit) 12,352 26,448 10,513 Income (loss) from continuing operations before income taxes $7,891 $42,679 ($20,731) Investment (income) loss (4,813) (11,743) (10,169) Interest Expense 43,841 46,164 44,042 Other, net (25,954) (1,775) 35,546 Adjusted Operating Income (loss) 20,965 75,325 48,688 Depreciation and Amortization 169,857 159,698 161,337 Adjusted EBITDA $190,822 $235,023 $210,025 (In Thousands) Three Months Ended 24 Reconciliation of Non-GAAP Financial Measures to Net Income (Loss) Adjusted EBITDA represents net income (loss) before income (loss) from discontinued operations, net of tax, income taxes, 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 below.

N A B O R S . C O M September 30, June 30, September 30, 2022 2023 2023 Lower 48 - U.S. - Drilling Adjusted operating income 25,551 $ 60,496 $ 40,366 $ Plus: General and administrative costs 4,798 5,209 5,239 Plus: Research and engineering 1,652 1,189 1,389 GAAP Gross Margin 32,001 66,894 46,994 Plus: Depreciation and amortization 62,583 58,533 60,447 Adjusted gross margin 94,584 $ 125,427 $ 107,441 $ Other - U.S. - Drilling Adjusted operating income 12,225 $ 14,912 $ 9,216 $ Plus: General and administrative costs 343 323 331 Plus: Research and engineering 157 132 90 GAAP Gross Margin 12,725 15,367 9,637 Plus: Depreciation and amortization 14,127 7,504 7,329 Adjusted gross margin 26,852 $ 22,871 $ 16,966 $ U.S. - Drilling Adjusted operating income 37,776 $ 75,408 $ 49,582 $ Plus: General and administrative costs 5,141 5,532 5,570 Plus: Research and engineering 1,809 1,321 1,479 GAAP Gross Margin 44,726 82,261 56,631 Plus: Depreciation and amortization 76,710 66,037 67,776 Adjusted gross margin 121,436 $ 148,298 $ 124,407 $ (In Thousands) Three Months Ended 25 Reconciliation of U.S. Drilling Segment Adjusted Gross Margin to U.S. Drilling Segment Adjusted Operating Income Adjusted gross margin by segment represents adjusted operating income (loss) plus general and administrative costs, research and engineering costs and depreciation and amortization.

N A B O R S . C O M September 30, June 30, September 30, 2022 2023 2023 Long-Term Debt $2,585,517 $2,503,250 $2,501,339 Cash & Short-term Investments $425,070 $429,059 $406,643 Net Debt $2,160,447 $2,074,191 $2,094,696 (In Thousands) 26 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 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 this financial measure accurately measures the Company’s liquidity. In addition, 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 this measure differently. A reconciliation of net debt to total debt, which is the nearest comparable GAAP financial measure, is provided in the table below.

N A B O R S . C O M (In Thousands) 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 $ (In Thousands) Three Months Ended June 30, 2023 U.S. Drilling International Drilling Drilling Solutions Rig Technologies Other reconciling items Total Adjusted operating income (loss) 75,408 $ 10,407 $ 28,351 $ 5,052 $ (43,893) $ 75,325 $ Depreciation and amortization 66,038 87,924 4,405 1,356 (25) 159,698 Adjusted EBITDA 141,446 $ 98,331 $ 32,756 $ 6,408 $ (43,918) $ 235,023 $ Three Months Ended September 30, 2022 U.S. Drilling International Drilling Drilling Solutions Rig Technologies Other reconciling items Total Adjusted operating income (loss) 37,776 $ (907) $ 20,099 $ 3,412 $ (39,415) $ 20,965 $ Depreciation and amortization 76,710 86,829 5,513 1,406 (601) 169,857 Adjusted EBITDA 114,486 $ 85,922 $ 25,612 $ 4,818 $ (40,016) $ 190,822 $ 27 Reconciliation of Adjusted EBITDA by Segment to Adjusted Operating Income (Loss) by Segment Adjusted EBITDA by segment represents adjusted income (loss) plus depreciation and amortization.

N A B O R S . C O M Three Months Ended September 2023 Net cash provided by operating activities $133,425 Add: Capital expenditures, net of proceeds from sales of assets (138,583) Adjusted free cash flow ($5,158) (In Thousands) 28 Reconciliation of Adjusted Free Cash Flow to Net Cash Provided by Operating Activities 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 to return to shareholders through dividend payments or share repurchases. 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.

NABORS INDUSTRIES LTD. NABORS.COM NABORS CORPORATE SERVICES 515 W. Greens Road Suite 1200 Houston, TX 77067-4525 @ n a b o r s g l o b a l Contact Us: William C. Conroy, CFA VP - Corporate Development and Investor Relations William.Conroy@nabors.com Kara K. Peak Director - Corporate Development and Investor Relations Kara.Peak@nabors.com

Cover	Oct. 25, 2023
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Oct. 25, 2023
Entity File Number	001-32657
Entity Registrant Name	NABORS INDUSTRIES LTD.
Entity Central Index Key	0001163739
Entity Tax Identification Number	98-0363970
Entity Incorporation, State or Country Code	D0
Entity Address, Address Line One	Crown House
Entity Address, Address Line Two	4 Par-la-Ville Road
Entity Address, Address Line Three	Second Floor
Entity Address, City or Town	Hamilton
Entity Address, Country	BM
Entity Address, Postal Zip Code	HM08
City Area Code	441
Local Phone Number	292-1510
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common shares
Trading Symbol	NBR
Security Exchange Name	NYSE
Entity Emerging Growth Company	false