Notable items for the quarter:
- EPS of ($0.86), including
$0.72 in items, impairments and other
charges related to the downturn, and $0.12 loss from unconsolidated affiliates
- Deployed 5 remaining PACE®-X rigs to Colombia
- Repurchased 8.3 million shares at a cost of $78.4
million
HAMILTON, Bermuda, Oct. 27, 2015 /PRNewswire/ -- Nabors
Industries Ltd. ("Nabors") (NYSE:NBR) today reported
third-quarter operating revenues of $848
million, compared to $863
million in the second quarter of 2015, and $1.81 billion in the third quarter of last year.
The comparable third quarter of last year included $612 million in revenue from Completion and
Production Services, a business line that merged with C&J
Energy Services on March 24,
2015. The Completion and Production Services business is no
longer consolidated with Nabors, and Nabors' results reflect
equity-method accounting for this investment on a quarter-lag
basis.
Net income from continuing operations reported for the third
quarter was a loss of $250.9 million
or $0.86 per diluted share.
This compares to a second-quarter net income loss from continuing
operations of $41.9 million or
$0.14 per diluted share. The
current results include $250.9
million in pre-tax charges or $0.79 per diluted share. The largest
portion of the charges consisted of the impairment of Nabors'
holdings in C&J Energy Services in the amount of $180.6 million. The balance consisted of
numerous small asset impairments and severance costs. These
impairments were partially offset by favorable tax adjustments of
$19.1 million ($0.07 per diluted share). The quarter also
includes a net loss of $35.1 million
or $0.12 per diluted share
attributable to Nabors' equity share of C&J Energy Services
second quarter results.
Anthony Petrello, Nabors'
Chairman and CEO, commented, "Our third-quarter results were
essentially in line, as increased revenue and cash flow
internationally were offset by lower results in North America due to lower activity and
increased exposure to spot market pricing. We expect more
moderate sequential decreases through the seasonally weak second
quarter of next year with gradual declines in rig activity and more
rigs converting to spot pricing both in North America and internationally. The
recent new rig deployments internationally have been on time and
within budget, mitigating the impact of the idling of other high
contribution rigs that would likely have been renewed had it not
been for the weakening environment. Our PACE®-X
rigs continue to experience over 90% utilization and are
increasingly viewed as best-in-class for pad drilling.
"Our view of the timing and shape of the recovery remains
unchanged with an expectation of a protracted trough followed by a
more gradual recovery than recent cycles. Accordingly, we
continue to exercise stringent control over our operating, support
and capital spending in order to meet our minimum goal of breakeven
free cash flow. Our solid financial position and sizable
liquidity allow us to remain opportunistic should attractive
long-term strategic opportunities
arise."
Segment Results
Adjusted income derived from operating activities ("adjusted
income") in Drilling and Rig Services decreased 57% to $45.5 million from $104.9
million in the second quarter of this year. Adjusted
EBITDA in this business line was $286.0
million, primarily attributable to the International
segment. For the quarter the Company averaged 242 rigs
operating at an average gross margin of $14,657 per rig day. Future quarters are
expected to show more moderate income declines as the weak
commodity price environment persists and customer spending
continues to slow.
International adjusted income decreased by 11% sequentially to
$74.0 million, reflecting the impact
of lower utilization. Going forward, the Company continues to
foresee the potential for further declines in its International
results as several impactful drilling programs continue to wind
down. Despite the softening conditions, full-year results for
the International segment are still expected to increase compared
to 2014.
In North America, our U.S.
Drilling segment experienced further decline during the quarter,
resulting in a decrease in adjusted income of $45.5 million from the prior quarter. In
the Lower 48, activity declined throughout the quarter with 14%
fewer rigs working. Canada
marginally improved during the third quarter after its seasonal
break up, while utilization in Alaska declined seasonally by nearly 13%.
In the U.S. Gulf of Mexico,
commencement of the full operating dayrate for our newest platform
rig continues to be delayed for an indefinite period of time due to
issues with the installation of the customer's platform.
Rig Services, which consists of the Company's manufacturing and
directional drilling operations, reported negative adjusted income
of $10.4 million, as the industry's
newbuild activity and drilling activity has declined.
Financial Discussion
William Restrepo, Nabors' Chief
Financial Officer, stated, "Nabors is taking measures to maintain
our financial flexibility and commitment to free cash flow
throughout this downcycle. We are targeting annualized
G&A reductions of at least $110
million on a comparable basis, and continue to reduce direct
rig operating and field support costs in line with our expectations
of near-term drilling activity. Third quarter capital
expenditures were $166 million, and
we are on pace to spend approximately $900
million for the year, well below anticipated adjusted
EBITDA.
"During the quarter we established a $325
million five-year term loan on attractive terms with three
large global banks. This represented an opportunity to lock
in an attractive LIBOR spread of 117.5 basis points and in
anticipation of the maturity of our $350
million senior unsecured notes due September next
year. We also took advantage of equity market volatility
during the quarter by repurchasing 8.3 million shares of our common
stock at an average cost of $9.47 per
share. We remain committed to emerge from this cycle a
stronger and even more financially sound drilling company."
About Nabors
The Nabors companies own and operate approximately 476 land
drilling rigs throughout the world. Nabors' actively marketed
offshore fleet consists of six jackups and 36 platform rigs in
the United States and multiple
international markets. Nabors also manufactures top drives, other
rig components and drilling instrumentation systems. Nabors
participates in most of the significant oil and gas markets in the
world.
Forward-looking Statements
The information above 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 certain 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 release reflect management's estimates as of the
date of the release. Nabors does not undertake to update
these forward-looking statements.
Media Contact:
Dennis A. Smith, Director of
Corporate Development & Investor Relations, +1
281-775-8038. To request investor materials, contact Nabors'
corporate headquarters in Hamilton,
Bermuda at +441-292-1510 or via e-mail at
mark.andrews@nabors.com
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF INCOME (LOSS)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands,
except per share amounts)
|
|
2015
|
|
2014
|
|
2015
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Revenues and other
income:
|
|
|
|
|
|
|
|
|
|
|
Operating revenues
|
|
$ 847,553
|
|
$ 1,813,762
|
|
$ 863,305
|
|
$ 3,125,565
|
|
$ 5,020,361
|
Earnings
(losses) from unconsolidated affiliates
|
|
(35,100)
|
|
(2,851)
|
|
(1,116)
|
|
(29,714)
|
|
(5,872)
|
Investment income (loss)
|
|
(22)
|
|
2,189
|
|
1,181
|
|
2,128
|
|
10,235
|
Total revenues and
other income
|
|
812,431
|
|
1,813,100
|
|
863,370
|
|
3,097,979
|
|
5,024,724
|
|
|
|
|
|
|
|
|
|
|
|
Costs and other
deductions:
|
|
|
|
|
|
|
|
|
|
|
Direct
costs
|
|
518,174
|
|
1,181,986
|
|
488,522
|
|
1,926,306
|
|
3,310,220
|
General
and administrative expenses
|
|
81,748
|
|
138,967
|
|
86,290
|
|
295,171
|
|
406,863
|
Depreciation and amortization
|
|
240,107
|
|
286,581
|
|
218,196
|
|
739,322
|
|
851,528
|
Interest
expense
|
|
44,448
|
|
43,138
|
|
44,469
|
|
135,518
|
|
134,251
|
Losses
(gains) on sales and disposals of
|
|
|
|
|
|
|
|
|
|
|
long-lived assets and other
expense (income), net
|
|
259,731
|
|
(1,513)
|
|
1,338
|
|
205,227
|
|
16,467
|
Total costs and other
deductions
|
|
1,144,208
|
|
1,649,159
|
|
838,815
|
|
3,301,544
|
|
4,719,329
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations before income taxes
|
|
(331,777)
|
|
163,941
|
|
24,555
|
|
(203,565)
|
|
305,395
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
|
(80,898)
|
|
61,511
|
|
66,445
|
|
(35,158)
|
|
86,275
|
|
|
|
|
|
|
|
|
|
|
|
Subsidiary preferred
stock dividend
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,984
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations, net of tax
|
|
(250,879)
|
|
102,430
|
|
(41,890)
|
|
(168,407)
|
|
217,136
|
Income (loss) from
discontinued operations, net of tax
|
|
(45,275)
|
|
4,005
|
|
5,025
|
|
(41,067)
|
|
4,488
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
(296,154)
|
|
106,435
|
|
(36,865)
|
|
(209,474)
|
|
221,624
|
Less: Net (income) loss
attributable to noncontrolling interest
|
|
320
|
|
(387)
|
|
44
|
|
453
|
|
(1,213)
|
Net income (loss)
attributable to Nabors
|
|
$ (295,834)
|
|
$ 106,048
|
|
$ (36,821)
|
|
$ (209,021)
|
|
$ 220,411
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (losses) per
share: (1)
|
|
|
|
|
|
|
|
|
|
|
Basic
from continuing operations
|
|
$ (.86)
|
|
$
.34
|
|
$ (.14)
|
|
$
(.57)
|
|
$
.72
|
Basic
from discontinued operations
|
|
(.16)
|
|
.02
|
|
.01
|
|
(.15)
|
|
.02
|
Basic
|
|
$ (1.02)
|
|
$
.36
|
|
$ (.13)
|
|
$
(.72)
|
|
$
.74
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
from continuing operations
|
|
$ (.86)
|
|
$
.34
|
|
$ (.14)
|
|
$
(.57)
|
|
$
.71
|
Diluted
from discontinued operations
|
|
(.16)
|
|
.01
|
|
.01
|
|
(.15)
|
|
.02
|
Diluted
|
|
$ (1.02)
|
|
$
.35
|
|
$ (.13)
|
|
$
(.72)
|
|
$
.73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number
|
|
|
|
|
|
|
|
|
|
|
of
common shares outstanding: (1)
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
284,112
|
|
292,621
|
|
286,085
|
|
285,186
|
|
292,613
|
Diluted
|
|
284,112
|
|
295,005
|
|
286,085
|
|
285,186
|
|
295,353
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(2)
|
|
$ 247,631
|
|
$ 489,958
|
|
$ 288,177
|
|
$ 910,274
|
|
$ 1,297,406
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income
(loss) derived from operating activities (3)
|
|
$ 7,524
|
|
$ 203,377
|
|
$ 69,981
|
|
$ 170,952
|
|
$ 445,878
|
|
|
(1)
|
See "Computation of
Earnings (Losses) Per Share" included herein as a separate
schedule.
|
|
|
(2)
|
Adjusted EBITDA is computed by subtracting the sum of
direct costs and general and administrative expenses and earnings
(losses) from our equity method investment from the sum of
Operating revenues and Earnings (losses) from unconsolidated
affiliates. Adjusted EBITDA is a non-GAAP measure and should not be
used in isolation as a substitute for the amounts reported in
accordance with GAAP. However, management evaluates the performance
of our business units and the consolidated company based on several
criteria, including adjusted EBITDA and adjusted income (loss)
derived from operating activities, because we believe that these
financial measures accurately reflect our ongoing profitability. A
reconciliation of this non-GAAP measure to income (loss) from
continuing operations before income taxes, which is a GAAP measure,
is provided in the table set forth immediately following the
heading "Reconciliation of Non-GAAP Financial Measures to Income
(loss) from Continuing Operations before Income
Taxes".
|
(3)
|
Adjusted income
(loss) derived from operating activities is computed by subtracting
the sum of direct costs, general and administrative expenses,
depreciation and amortization and earnings (losses) from our equity
method investment from the sum of Operating revenues and Earnings
(losses) from unconsolidated affiliates. These amounts should not
be used as a substitute for those amounts reported in accordance
with GAAP. However, management evaluates the performance of our
business units and the consolidated company based on several
criteria, including adjusted income (loss) derived from operating
activities, because it believes that these financial measures
accurately reflect our ongoing profitability. A
reconciliation of this non-GAAP measure to income (loss) from
continuing operations before income taxes, which is a GAAP measure,
is provided in the table set forth immediately following the
heading "Reconciliation of Non-GAAP Financial Measures to Income
(loss) from Continuing Operations before Income Taxes".
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
June
30,
|
|
December
31,
|
(In
thousands)
|
|
2015
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and short-term
investments
|
|
$
276,562
|
|
$ 469,897
|
|
$ 536,169
|
Accounts receivable,
net
|
|
871,385
|
|
908,563
|
|
1,517,503
|
Assets held for
sale
|
|
78,400
|
|
136,677
|
|
146,467
|
Other current
assets
|
|
492,728
|
|
454,018
|
|
541,735
|
Total current
assets
|
|
1,719,075
|
|
1,969,155
|
|
2,741,874
|
Long-term investments
and other receivables
|
|
2,455
|
|
2,617
|
|
2,806
|
Property, plant and
equipment, net
|
|
7,287,531
|
|
7,405,441
|
|
8,599,125
|
Goodwill
|
|
150,032
|
|
139,756
|
|
173,928
|
Investment in
unconsolidated affiliates
|
|
460,543
|
|
676,234
|
|
58,251
|
Other long-term
assets
|
|
309,545
|
|
324,080
|
|
303,958
|
Total assets
|
|
$ 9,929,181
|
|
$ 10,517,283
|
|
$ 11,879,942
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Current
debt
|
|
$
8,982
|
|
$ 66,359
|
|
$
6,190
|
Other current
liabilities
|
|
1,040,569
|
|
1,156,394
|
|
1,561,285
|
Total current
liabilities
|
|
1,049,551
|
|
1,222,753
|
|
1,567,475
|
Long-term
debt
|
|
3,737,773
|
|
3,691,357
|
|
4,348,859
|
Other long-term
liabilities
|
|
630,458
|
|
663,798
|
|
1,044,819
|
Total liabilities
|
|
5,417,782
|
|
5,577,908
|
|
6,961,153
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
Shareholders'
equity
|
|
4,502,313
|
|
4,931,960
|
|
4,908,619
|
Noncontrolling
interest
|
|
9,086
|
|
7,415
|
|
10,170
|
Total equity
|
|
4,511,399
|
|
4,939,375
|
|
4,918,789
|
Total liabilities and
equity
|
|
$ 9,929,181
|
|
$ 10,517,283
|
|
$ 11,879,942
|
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)
|
|
2015
|
|
2014
|
|
2015
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Reportable
segments:
|
|
|
|
|
|
|
|
|
|
|
Operating revenues
and Earnings (losses) from unconsolidated affiliates:
|
|
|
|
|
|
|
|
|
|
|
Drilling and Rig Services:
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
|
$ 259,939
|
|
$ 571,736
|
|
$ 321,169
|
|
$ 1,034,929
|
|
$ 1,615,106
|
Canada
|
|
29,929
|
|
80,491
|
|
21,413
|
|
109,182
|
|
246,973
|
International
|
|
516,180
|
|
427,558
|
|
458,545
|
|
1,413,886
|
|
1,191,520
|
Rig Services
(1)
|
|
73,521
|
|
191,437
|
|
100,599
|
|
318,204
|
|
502,509
|
Subtotal
Drilling and Rig Services
|
|
879,569
|
|
1,271,222
|
|
901,726
|
|
2,876,201
|
|
3,556,108
|
|
|
|
|
|
|
|
|
|
|
|
Completion and Production Services:
|
|
|
|
|
|
|
|
|
|
|
Completion
Services
|
|
-
|
|
352,018
|
|
-
|
|
207,860
|
|
856,329
|
Production
Services
|
|
-
|
|
259,863
|
|
-
|
|
158,512
|
|
793,641
|
Subtotal
Completion and Production Services
|
|
-
|
|
611,881
|
|
-
|
|
366,372
|
|
1,649,970
|
|
|
|
|
|
|
|
|
|
|
|
Other reconciling items (2)
|
|
(32,016)
|
|
(69,341)
|
|
(38,421)
|
|
(117,008)
|
|
(185,717)
|
Total operating
revenues
|
|
$ 847,553
|
|
$ 1,813,762
|
|
$ 863,305
|
|
$ 3,125,565
|
|
$ 5,020,361
|
Earnings (losses)
from unconsolidated affiliates (3)
|
|
(35,100)
|
|
(2,851)
|
|
(1,116)
|
|
(29,714)
|
|
(5,872)
|
Total operating
revenues and earnings (losses) from unconsolidated
affiliates
|
$ 812,453
|
|
$ 1,810,911
|
|
$ 862,189
|
|
$ 3,095,851
|
|
$ 5,014,489
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA:
(4)
|
|
|
|
|
|
|
|
|
|
|
Drilling and Rig Services:
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
|
$ 94,505
|
|
$ 234,980
|
|
$ 136,499
|
|
$ 418,749
|
|
$ 628,678
|
Canada
|
|
7,516
|
|
25,804
|
|
3,732
|
|
29,716
|
|
80,139
|
International
|
|
186,451
|
|
159,588
|
|
176,994
|
|
564,473
|
|
436,915
|
Rig Services
(1)
|
|
(2,455)
|
|
30,153
|
|
6,341
|
|
25,469
|
|
63,820
|
Subtotal
Drilling and Rig Services (5)
|
|
286,017
|
|
450,525
|
|
323,566
|
|
1,038,407
|
|
1,209,552
|
|
|
|
|
|
|
|
|
|
|
|
Completion and Production Services:
|
|
|
|
|
|
|
|
|
|
|
Completion
Services
|
|
-
|
|
40,507
|
|
-
|
|
(27,847)
|
|
61,467
|
Production
Services
|
|
-
|
|
49,312
|
|
-
|
|
23,043
|
|
167,635
|
Subtotal
Completion and Production Services (6)
|
|
-
|
|
89,819
|
|
-
|
|
(4,804)
|
|
229,102
|
|
|
|
|
|
|
|
|
|
|
|
Other reconciling items (7)
|
|
(38,386)
|
|
(50,386)
|
|
(35,389)
|
|
(123,329)
|
|
(141,248)
|
Total adjusted
EBITDA
|
|
$ 247,631
|
|
$ 489,958
|
|
$ 288,177
|
|
$ 910,274
|
|
$ 1,297,406
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income
(loss) derived from operating activities: (8)
|
|
|
|
|
|
|
|
|
|
|
Drilling and Rig Services:
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
|
$ (14,034)
|
|
$ 117,212
|
|
$ 31,445
|
|
$ 94,449
|
|
$ 279,683
|
Canada
|
|
(4,085)
|
|
11,517
|
|
(8,268)
|
|
(5,995)
|
|
37,902
|
International
|
|
74,039
|
|
68,452
|
|
83,255
|
|
262,335
|
|
167,154
|
Rig Services
(1)
|
|
(10,434)
|
|
21,136
|
|
(1,575)
|
|
864
|
|
38,923
|
Subtotal
Drilling and Rig Services (5)
|
|
45,486
|
|
218,317
|
|
104,857
|
|
351,653
|
|
523,662
|
|
|
|
|
|
|
|
|
|
|
|
Completion and Production Services:
|
|
|
|
|
|
|
|
|
|
|
Completion
Services
|
|
-
|
|
14,211
|
|
-
|
|
(55,243)
|
|
(20,005)
|
Production
Services
|
|
-
|
|
21,182
|
|
-
|
|
(3,296)
|
|
81,662
|
Subtotal
Completion and Production Services (6)
|
|
-
|
|
35,393
|
|
-
|
|
(58,539)
|
|
61,657
|
|
|
|
|
|
|
|
|
|
|
|
Other reconciling items (7)
|
|
(37,962)
|
|
(50,333)
|
|
(34,876)
|
|
(122,162)
|
|
(139,441)
|
Total
adjusted income (loss) derived from operating activities
|
|
$ 7,524
|
|
$ 203,377
|
|
$ 69,981
|
|
$ 170,952
|
|
$ 445,878
|
|
|
|
|
|
|
|
|
|
|
|
Rig
activity:
|
|
|
|
|
|
|
|
|
|
|
Rig years:
(9)
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
|
103.0
|
|
216.0
|
|
119.5
|
|
129.8
|
|
212.7
|
Canada
|
|
17.2
|
|
34.3
|
|
9.7
|
|
17.5
|
|
33.2
|
International (10)
|
|
121.3
|
|
130.1
|
|
127.1
|
|
126.1
|
|
129.1
|
Total rig
years
|
|
241.5
|
|
380.4
|
|
256.3
|
|
273.4
|
|
375.0
|
Rig hours:
(11)
|
|
|
|
|
|
|
|
|
|
|
U.S.
Production Services
|
|
-
|
|
205,604
|
|
-
|
|
129,652
|
|
626,336
|
Canada
Production Services
|
|
-
|
|
36,509
|
|
-
|
|
23,947
|
|
106,720
|
Total rig
hours
|
|
-
|
|
242,113
|
|
-
|
|
153,599
|
|
733,056
|
|
|
(1)
|
Includes our other
services comprised of our drilling technology and top drive
manufacturing, directional drilling, rig instrumentation and
software services.
|
|
|
(2)
|
Represents the
elimination of inter-segment transactions.
|
|
|
(3)
|
Represents our share
of the net income (loss) of our unconsolidated affiliates accounted
for by the equity method inclusive of $(31.5) million, $(0.8)
million and $(35.9) million for the three months ended September
30, 2015 and June 30, 2015 and the nine months ended September 30,
2015, respectively, representing our share of the net loss of
C&J Energy Services, Ltd., reported on a one-quarter
lag.
|
|
|
(4)
|
Adjusted EBITDA is computed by subtracting the sum of
direct costs and general and administrative expenses and earnings
(losses) from our equity method investment from the sum of
Operating revenues and Earnings (losses) from unconsolidated
affiliates. Adjusted EBITDA is a non-GAAP measure and should not be
used in isolation as a substitute for the amounts reported in
accordance with GAAP. However, management evaluates the performance
of our business units and the consolidated company based on several
criteria, including adjusted EBITDA and adjusted income (loss)
derived from operating activities, because we believe that these
financial measures accurately reflect our ongoing profitability. A
reconciliation of this non-GAAP measure to income (loss) from
continuing operations before income taxes, which is a GAAP measure,
is provided in the table set forth immediately following the
heading "Reconciliation of Non-GAAP Financial Measures to Income
(loss) from Continuing Operations before Income
Taxes".
|
(5)
|
Includes earnings
(losses), net from unconsolidated affiliates, accounted for using
the equity method, of $(2.9) million and $(0.3) million for the
three months ended September 30, 2014 and June 30, 2015,
respectively and $5.9 million and $(6.1) million for the nine
months ended September 30, 2015 and 2014, respectively.
|
|
|
(6)
|
Includes earnings
(losses), net from unconsolidated affiliates, accounted for using
the equity method, of $0.3 million and $0.2 million for the nine
months ended September 30, 2015 and 2014, respectively.
|
|
|
(7)
|
Represents the
elimination of inter-segment transactions and unallocated corporate
expenses.
|
|
|
(8)
|
Adjusted income
(loss) derived from operating activities is computed by subtracting
the sum of direct costs, general and administrative expenses,
depreciation and amortization and earnings (losses) from our equity
method investment from the sum of Operating revenues and Earnings
(losses) from unconsolidated affiliates. These amounts should not
be used as a substitute for the amounts reported in accordance with
GAAP. However, management evaluates the performance of our business
units and the consolidated company based on several criteria,
including adjusted income (loss) derived from operating activities,
because it believes that these financial measures accurately
reflect our ongoing profitability. A reconciliation of this
non-GAAP measure to income (loss) from continuing operations before
income taxes, which is a GAAP measure, is provided in the table set
forth immediately following the heading "Reconciliation of Non-GAAP
Financial Measures to Income (loss) from Continuing Operations
before Income Taxes".
|
|
|
(9)
|
Excludes
well-servicing rigs, which are measured in rig hours.
Includes our equivalent percentage ownership of rigs owned by
unconsolidated affiliates. Rig years represent a measure of
the number of equivalent rigs operating during a given
period. For example, one rig operating 182.5 days during a
365-day period represents 0.5 rig years.
|
|
|
(10)
|
International rig
years includes our equivalent percentage ownership of rigs owned by
unconsolidated affiliates, which totaled 2.5 years during the three
months ended September 30, 2014 and 2.5 years for the nine months
ended September 30, 2014. As of May 24, 2015, this was no
longer an unconsolidated affiliate.
|
|
|
(11)
|
Rig hours represents
the number of hours that our well-servicing rig fleet operated
during the period. This fleet was included in the Completion
and Production Services business line that was merged with C&J
Energy Services, Inc. in March 2015, therefore we will no longer
report this performance metric.
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES TO
|
INCOME (LOSS) FROM
CONTINUING OPERATIONS BEFORE INCOME TAXES
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
|
2015
|
|
2014
|
|
2015
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$ 247,631
|
|
$ 489,958
|
|
$ 288,177
|
|
$ 910,274
|
|
$ 1,297,406
|
Less: Depreciation
and amortization
|
|
240,107
|
|
286,581
|
|
218,196
|
|
739,322
|
|
851,528
|
Adjusted income
(loss) derived from operating activities
|
|
7,524
|
|
203,377
|
|
69,981
|
|
170,952
|
|
445,878
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (losses)
from equity method investment
|
|
(35,100)
|
|
-
|
|
(800)
|
|
(35,900)
|
|
-
|
Interest
expense
|
|
(44,448)
|
|
(43,138)
|
|
(44,469)
|
|
(135,518)
|
|
(134,251)
|
Investment income
(loss)
|
|
(22)
|
|
2,189
|
|
1,181
|
|
2,128
|
|
10,235
|
Gains (losses) on
sales and disposals of long-lived
assets and other income (expense), net
|
|
|
|
|
|
|
|
|
|
|
|
(259,731)
|
|
1,513
|
|
(1,338)
|
|
(205,227)
|
|
(16,467)
|
Income (loss) from
continuing operations before income taxes
|
|
$(331,777)
|
|
$ 163,941
|
|
$ 24,555
|
|
$(203,565)
|
|
$ 305,395
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
COMPUTATION OF
EARNINGS (LOSSES) PER SHARE
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
A reconciliation of
the numerators and denominators of the basic and diluted earnings
(losses) per share computations is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands,
except per share amounts)
|
|
2015
|
|
2014
|
|
2015
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
BASIC
EPS:
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations, net of tax
|
|
$(250,879)
|
|
$ 102,430
|
|
$(41,890)
|
|
$(168,407)
|
|
$ 217,136
|
Less:
Net (income) loss attributable to noncontrolling
interest
|
|
320
|
|
(387)
|
|
44
|
|
453
|
|
(1,213)
|
Less:
Redemption of preferred shares
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(1,688)
|
Less:
Earnings allocated to unvested shareholders
|
|
5,834
|
|
(1,579)
|
|
720
|
|
4,523
|
|
(3,286)
|
Adjusted income
(loss) from continuing operations - basic and diluted
|
|
$ (244,725)
|
|
$ 100,464
|
|
$(41,126)
|
|
$ (163,431)
|
|
$ 210,949
|
Income (loss) from
discontinued operations, net of tax
|
|
$ (45,275)
|
|
$ 4,005
|
|
$ 5,025
|
|
$ (41,067)
|
|
$ 4,488
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares outstanding-basic
|
|
284,112
|
|
292,621
|
|
286,085
|
|
285,186
|
|
292,613
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (losses) per
share:
|
|
|
|
|
|
|
|
|
|
|
Basic from continuing
operations
|
|
$ (.86)
|
|
$ .34
|
|
$ (.14)
|
|
$ (.57)
|
|
$ .72
|
Basic from discontinued
operations
|
|
(.16)
|
|
.02
|
|
.01
|
|
(.15)
|
|
.02
|
Total
Basic
|
|
$ (1.02)
|
|
$ .36
|
|
$ (.13)
|
|
$ (.72)
|
|
$ .74
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED
EPS:
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations attributed to common shareholders
|
|
$(244,725)
|
|
$ 100,464
|
|
$(41,126)
|
|
$(163,431)
|
|
$ 210,949
|
Add: Effect of
reallocating undistributed earnings of unvested
shareholders
|
|
-
|
|
11
|
|
-
|
|
-
|
|
25
|
Adjusted income
(loss) from continuing operations attributed to common
shareholders
|
$ (244,725)
|
|
$ 100,475
|
|
$(41,126)
|
|
$ (163,431)
|
|
$ 210,974
|
Income (loss) from
discontinued operations
|
|
$ (45,275)
|
|
$ 4,005
|
|
$ 5,025
|
|
$ (41,067)
|
|
$ 4,488
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number of shares outstanding-basic
|
|
284,112
|
|
292,621
|
|
286,085
|
|
285,186
|
|
292,613
|
Add: dilutive effect
of potential common shares
|
|
-
|
|
2,384
|
|
-
|
|
-
|
|
2,740
|
Weighted-average number of diluted shares outstanding
|
|
284,112
|
|
295,005
|
|
286,085
|
|
285,186
|
|
295,353
|
|
|
|
|
|
|
|
|
|
|
|
Diluted from continuing
operations
|
|
$ (.86)
|
|
$ .34
|
|
$ (.14)
|
|
$ (.57)
|
|
$ .71
|
Diluted from discontinued
operations
|
|
(.16)
|
|
.01
|
|
.01
|
|
(.15)
|
|
.02
|
Total
Diluted
|
|
$ (1.02)
|
|
$ .35
|
|
$ (.13)
|
|
$ (.72)
|
|
$ .73
|
|
Restricted stock
grants that contain non-forfeitable rights to dividends are
considered participating securities. As such, these grants are
included in our basic and diluted earnings (losses) per share
computation using the two-class method of accounting. For all
periods presented, the computation of diluted earnings (losses) per
share excluded outstanding stock options with exercise prices
greater than the average market price of Nabors' common shares
because their inclusion would have been anti-dilutive and because
they were not considered participating securities. The average
number of options that were excluded from diluted earnings (losses)
per share that would have potentially diluted earnings (losses) per
share were 9,416,647, 5,389,090 and 9,860,422 shares during the
three months ended September 30, 2015 and 2014 and June 30, 2015,
respectively, and 9,910,476 and 6,341,624 shares during the nine
months ended September 30, 2015 and 2014, respectively. In any
period during which the average market price of Nabors' common
shares exceeds the exercise prices of these stock options, such
stock options are included in our diluted earnings (losses) per
share computation using the if-converted method of
accounting.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/nabors-announces-third-quarter-results-300167249.html
SOURCE Nabors Industries Ltd.