HAMILTON, Bermuda, Feb. 20, 2020 /PRNewswire/ --
- Reduced total debt during the fourth quarter by $184 million to $3.3
billion and reduced net debt by $218
million to $2.9 billion
- Amended 2018 Credit Agreement in December 2019 to provide additional covenant
flexibility
- Issued $1 billion of six- and
eight-year notes in January 2020.
Successfully tendered for approximately $950
million of existing '21 and '23 notes
- Generated cash provided by operating activities of $254 million in the fourth quarter, which
translates into free cash flow of $232
million
- Averaged 98 rigs working in Lower 48 during the quarter, at
average daily gross margin of $10,218
Nabors Industries Ltd. ("Nabors" or the "Company") (NYSE:
NBR) today reported fourth quarter 2019 operating revenues of
$714 million, compared to operating
revenues of $758 million in the third
quarter. Net loss from continuing operations attributable to
Nabors common shareholders for the quarter was $267 million, or $0.77 per share, compared to a loss of
$123 million, or $0.37 per share, in the prior quarter. The fourth
quarter's net loss included the impact of the Company's periodic
review for potential asset impairments. In addition, the Company
wrote down certain assets in geographic locations which have been
shut down or where political risk has increased. After-tax charges
totaled $186 million, or $0.53 per share, primarily related to these
impairments of fixed assets, goodwill and intangibles, as well as
other asset write-downs. The third quarter's results included
after-tax charges of $23.3 million,
or $0.06 per share, related to a
foreign tax settlement and currency losses.
For the fourth quarter, adjusted EBITDA was $203 million as compared to $207 million in the prior quarter. A 9.6% decline
in the U.S. land rig count and a soft market for rig components
were partially offset by improved drilling activity outside the
U.S. and better results for Nabors Drilling Solutions.
Anthony G. Petrello, Nabors
Chairman, CEO and President, commented, "I am pleased with our
fourth-quarter results, particularly considering the decrease in
industry activity in the U.S. The strength of our financial
results during the quarter allowed us to reduce net debt by
$218 million, to $2.88 billion. We also completed a series
of transactions during and after the quarter that enhance our
financial flexibility.
"Our operating performance further confirms that we are pursuing
the correct strategic initiatives. We remain dedicated to providing
our customers with a market-leading value proposition, combining
the highest quality global rig fleet, crews and drilling
technologies.
"In the U.S. Lower 48, E&P operators continued to
rationalize their activity levels through the fourth quarter.
Although our rig count has fallen, our daily rig margins were
essentially unchanged versus the third quarter. We remain
disciplined in our pricing, and our excellent operating performance
has reinforced our rate structure. The demand for
high-specification rigs in the major oil basins in the Lower 48
remained resilient through the end of the year. For the full year,
the Company's average Lower 48 rig count increased by 1%, in stark
contrast to the industry's decline of 9%.
"Our Drilling Solutions segment continued its sequential growth
trajectory in the fourth quarter. For the full year, a 1% increase
in revenues yielded a 34% increase in adjusted EBITDA as a result
of increasing adoption of our automation and integration
technologies, which have allowed us to offset the softer market in
the U.S., while increasing our margins. We have a broad
portfolio of advanced products and services, which enhance drilling
performance and ultimately generate value for our customers, as
well as Nabors. Our newest NavigatorTM automated
directional guidance platform has drilled more than 1000 wells,
including 370 wells drilled with our ROCKit® Pilot
steering control system. Today 80 percent of our directional jobs
running these technologies are de-manned or manless at the
rig. Our drilling automation offerings provide: consistency
of drilling outcomes at the highest level; lower-cost remote
operations; and fewer employees in harm's way. These solutions
continue to gain traction with our customers."
Consolidated and Segment Results
The U.S. Drilling segment reported $113
million in adjusted EBITDA for the fourth quarter of 2019, a
$7.8 million reduction from the prior
quarter. A decline in the Lower 48 was somewhat offset by a
modest improvement in the U.S. Offshore. During the quarter, the
Lower 48 rig count decreased by 10 rigs while average margins per
rig day were stable at $10,218.
The Company expects competitive pressures to reduce daily
margins to approximately $10,000 in
the first quarter of 2020. This segment's rig count currently
stands at 98, with 90 rigs working in the Lower 48. Based on
the Company's current outlook, the first quarter Lower 48 rig count
should range between 90 and 92, and begin to increase in the second
quarter.
International Drilling adjusted EBITDA increased sequentially by
1%, to $96 million. The quarterly
average rig count declined by one to 87, while the average margin
per day improved by more than $400 to
$14,144. This increase was a
result of additional progress from previously-implemented
initiatives to improve operating costs, as well as favorable
operating performance. The segment's cash flow generation
improved materially quarter over quarter. The international working
rig count currently stands at 88. The Company expects first quarter
adjusted EBITDA to decline slightly, due mainly to
certification-related rig downtime.
Canada Drilling adjusted EBITDA increased significantly to
$5.3 million, as that market ramps
toward its usual seasonal peak. Both average daily gross
margin and the average working rig count jumped during the quarter.
For the first quarter of 2020, the Company expects an
improvement in daily margin and a further increase in rig
count.
In Drilling Solutions, adjusted EBITDA of $24.8 million was $1.3
million higher than the third quarter, despite the decrease
in the industry rig count in the Lower 48. These results
capped three consecutive increases in quarterly segment adjusted
EBITDA, in the face of declining U.S. rig count over the same
periods. In the fourth quarter, profitability was buoyed by an
increase in higher-margin integrated tubular running services (TRS)
work. In the Lower 48, integrated TRS jobs comprised 51% of
fourth-quarter jobs, up from less than 3% in the first quarter this
year.
In the Rig Technologies segment, fourth-quarter adjusted EBITDA
was a loss of $1.6 million, a
decrease of $3.7 million from the
third quarter. That decline was mainly due to lower sales of parts,
and a decrease in repair activity.
Capital Expenditures and Liquidity
Free cash flow, defined as cash provided by operating activities
less cash used for investing activities, reached $232 million, as compared to $82 million in the prior quarter. The fourth
quarter results included significant reductions in working capital
and capital expenditures, while the third quarter results included
approximately $70 million in
semiannual cash interest payments.
William Restrepo, Nabors Chief
Financial Officer, stated, "As the land drilling market in the U.S.
gas basins weakened and many of our more U.S.-focused peers
experienced significant drops in both EBITDA and free cash flow,
Nabors delivered our strongest quarter of the year, with stable
adjusted EBITDA and sharply increased free cash flow."
"Capital expenditures were $61
million in the fourth quarter, $26
million less than the preceding quarter. For the full year
2019, capital expenditures totaled $424
million. For 2020 we expect capital expenditures of
approximately $350 million to
$370 million. With this
expected reduction as well as initiatives for working capital and
other items, we are targeting free cash flow of at least
$300 million in 2020.
"In December, we amended our 2018 Credit Agreement. Notably, the
amendment replaced the previous capitalization covenant with a more
relevant covenant comparing net funded indebtedness to EBITDA, as
those terms are defined in the 2018 Credit Agreement.
Following that, in January we issued $1 billion of new senior guaranteed notes, with
$600 million due in 2026 and
$400 million due in 2028. Those
issuances were paired with a successful tender for approximately
$950 million of our previously
outstanding notes due in 2021 and 2023. Combined, these
transactions extended the maturity of approximately $1 billion of debt by more than four years and
significantly reduced nearer-term debt maturities."
Mr. Petrello concluded, "Our short-term expectations have grown
more cautious in North America.
The impacts of the coronavirus outbreak on global economic activity
in general, and oil demand specifically, are uncertain. That has
resulted in downward pressure on commodity prices, which adds
additional friction to what was already a slow ramp in activity in
the New Year. For our International operations, the view is more
positive. Activity in those markets is less responsive to
short-term declines in oil prices. Demand for high specification
rigs remains strong, which should continue to support an increasing
rig count and higher pricing, particularly as the availability of
rigs tightens.
"We remain more confident across all of our segments over the
longer-term. Signals in the market suggest the current oil
supply/demand situation will tighten. Notwithstanding the potential
for near-term volatility, over time we expect improving
consolidated results.
"Our focus on improving free cash flow, generating returns on
capital, and reducing debt are unwavering. Our fourth-quarter
results demonstrate that we can reach these goals."
About Nabors
Nabors, (NYSE: NBR) owns and operates one of the world's largest
land-based drilling rig fleets and provides offshore platform rigs
in the United States and several
international markets. Nabors also provides directional drilling
services, tubular services, performance software, and innovative
technologies for its own rig fleet and those of third parties.
Leveraging our advanced drilling automation capabilities, Nabors
highly skilled workforce continues to set new standards for
operational excellence and transform our industry.
Forward-looking Statements
The information included in this press release includes
forward-looking statements within the meaning of the Securities Act
of 1933 and the Securities Exchange Act of 1934. Such
forward-looking statements are subject to a number of risks and
uncertainties, as disclosed by Nabors from time to time in its
filings with the Securities and Exchange Commission. As a result of
these factors, Nabors' actual results may differ materially from
those indicated or implied by such forward-looking
statements. The forward-looking statements contained in this
press release reflect management's estimates and beliefs as of the
date of this press release. Nabors does not undertake to
update these forward-looking statements.
Non-GAAP Disclaimer
This press release presents certain "non-GAAP" financial
measures. The components of these non-GAAP measures are
computed by using amounts that are determined in accordance with
accounting principles generally accepted in the United States of America ("GAAP").
Adjusted operating income (loss) represents income (loss) from
continuing operations before income taxes, interest expense,
earnings (losses) from unconsolidated affiliates, investment income
(loss), impairments and other charges 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.
Free cash flow represents net cash provided by operating
activities less cash used for investing activities. Free cash flow
is an indicator of our ability to generate cash flow after required
spending to maintain or expand our asset base. 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 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 free cash flow to cash flow provided by operations, which are
their nearest comparable GAAP financial measures, are included in
the tables at the end of this press release.
Media Contact: Dennis A.
Smith, Senior Vice President of Corporate Development &
Investor Relations, +1 281-775-8038 or William C. Conroy, Senior Director of Corporate
Development & Investor Relations, +1 281-775-2423. To
request investor materials, contact Nabors' corporate headquarters
in Hamilton, Bermuda at
+441-292-1510 or via e-mail 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)
|
|
2019
|
|
2018
|
|
2019
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
Revenues and other
income:
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues
|
|
$
714,261
|
|
$
782,080
|
|
$
758,076
|
|
$
3,043,383
|
|
$
3,057,619
|
Earnings (losses)
from unconsolidated affiliates
|
|
-
|
|
-
|
|
-
|
|
(5)
|
|
1
|
Investment income
(loss)
|
|
1,509
|
|
(5,458)
|
|
(1,437)
|
|
10,218
|
|
(9,499)
|
Total revenues and
other income
|
|
715,770
|
|
776,622
|
|
756,639
|
|
3,053,596
|
|
3,048,121
|
|
|
|
|
|
|
|
|
|
|
|
Costs and other
deductions:
|
|
|
|
|
|
|
|
|
|
|
Direct
costs
|
|
436,249
|
|
510,402
|
|
475,461
|
|
1,929,331
|
|
1,976,974
|
General and
administrative expenses
|
|
62,572
|
|
56,615
|
|
63,577
|
|
258,731
|
|
265,822
|
Research and
engineering
|
|
12,915
|
|
13,444
|
|
12,004
|
|
50,359
|
|
56,147
|
Depreciation and
amortization
|
|
225,824
|
|
226,643
|
|
221,557
|
|
876,091
|
|
866,870
|
Interest
expense
|
|
49,177
|
|
53,731
|
|
51,291
|
|
204,311
|
|
227,124
|
Impairments and other
charges
|
|
186,201
|
|
54,012
|
|
3,939
|
|
290,471
|
|
144,446
|
Other, net
|
|
889
|
|
5,369
|
|
4,695
|
|
33,224
|
|
29,532
|
Total costs and other
deductions
|
|
973,827
|
|
920,216
|
|
832,524
|
|
3,642,518
|
|
3,566,915
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations before income taxes
|
|
(258,057)
|
|
(143,594)
|
|
(75,885)
|
|
(588,922)
|
|
(518,794)
|
Income tax expense
(benefit)
|
|
26,476
|
|
21,957
|
|
23,903
|
|
91,576
|
|
79,269
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations, net of tax
|
|
(284,533)
|
|
(165,551)
|
|
(99,788)
|
|
(680,498)
|
|
(598,063)
|
Income (loss) from
discontinued operations, net of tax
|
|
22
|
|
(71)
|
|
157
|
|
(12)
|
|
(14,663)
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
(284,511)
|
|
(165,622)
|
|
(99,631)
|
|
(680,510)
|
|
(612,726)
|
Less: Net (income) loss
attributable to noncontrolling interest
|
|
21,827
|
|
(17,796)
|
|
(19,297)
|
|
(22,375)
|
|
(28,222)
|
Net income (loss)
attributable to Nabors
|
|
$
(262,684)
|
|
$
(183,418)
|
|
$
(118,928)
|
|
$
(702,885)
|
|
$
(640,948)
|
Less: Preferred stock
dividend
|
|
$
(4,309)
|
|
$
(4,312)
|
|
$
(4,310)
|
|
$
(17,244)
|
|
$
(12,305)
|
Net income (loss)
attributable to Nabors common shareholders
|
|
$
(266,993)
|
|
$
(187,730)
|
|
$
(123,238)
|
|
$
(720,129)
|
|
$
(653,253)
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable
to Nabors common shareholders:
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
from continuing operations
|
|
$
(267,015)
|
|
$
(187,659)
|
|
$
(123,395)
|
|
$
(720,117)
|
|
$
(638,590)
|
Net income (loss)
from discontinued operations
|
|
22
|
|
(71)
|
|
157
|
|
(12)
|
|
(14,663)
|
Net income (loss)
attributable to Nabors common shareholders
|
|
$
(266,993)
|
|
$
(187,730)
|
|
$
(123,238)
|
|
$
(720,129)
|
|
$
(653,253)
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (losses) per
share:
|
|
|
|
|
|
|
|
|
|
|
Basic
from continuing operations
|
|
$
(0.77)
|
|
$
(0.55)
|
|
$
(0.37)
|
|
$
(2.11)
|
|
$
(1.95)
|
Basic
from discontinued operations
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(0.04)
|
Total
Basic
|
|
$
(0.77)
|
|
$
(0.55)
|
|
$
(0.37)
|
|
$
(2.11)
|
|
$
(1.99)
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
from continuing operations
|
|
$
(0.77)
|
|
$
(0.55)
|
|
$
(0.37)
|
|
$
(2.11)
|
|
$
(1.95)
|
Diluted
from discontinued operations
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(0.04)
|
Total
Diluted
|
|
$
(0.77)
|
|
$
(0.55)
|
|
$
(0.37)
|
|
$
(2.11)
|
|
$
(1.99)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of common shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
352,135
|
|
350,236
|
|
352,026
|
|
351,617
|
|
334,397
|
Diluted
|
|
352,135
|
|
350,236
|
|
352,026
|
|
351,617
|
|
334,397
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
202,525
|
|
$
201,619
|
|
$
207,034
|
|
$
804,962
|
|
$
758,676
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss)
|
|
$
(23,299)
|
|
$
(25,024)
|
|
$
(14,523)
|
|
$
(71,129)
|
|
$
(108,194)
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
(In
thousands)
|
|
2019
|
|
2019
|
|
2018
|
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and short-term
investments
|
|
$
452,496
|
|
$
418,937
|
|
$
481,802
|
Accounts receivable,
net
|
|
453,042
|
|
613,527
|
|
756,320
|
Assets held for
sale
|
|
2,530
|
|
8,037
|
|
12,250
|
Other current
assets
|
|
340,598
|
|
339,847
|
|
343,191
|
Total current
assets
|
|
1,248,666
|
|
1,380,348
|
|
1,593,563
|
Property, plant and
equipment, net
|
|
4,930,549
|
|
5,152,236
|
|
5,467,870
|
Goodwill
|
|
28,380
|
|
90,543
|
|
183,914
|
Other long-term
assets
|
|
553,063
|
|
650,370
|
|
608,597
|
Total assets
|
|
$
6,760,658
|
|
$
7,273,497
|
|
$
7,853,944
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Current portion of
debt
|
|
$
-
|
|
$
1,058
|
|
$
561
|
Other current
liabilities
|
|
656,548
|
|
681,246
|
|
831,516
|
Total current
liabilities
|
|
656,548
|
|
682,304
|
|
832,077
|
Long-term
debt
|
|
3,333,220
|
|
3,516,592
|
|
3,585,884
|
Other long-term
liabilities
|
|
295,333
|
|
313,497
|
|
280,796
|
Total liabilities
|
|
4,285,101
|
|
4,512,393
|
|
4,698,757
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interest in subsidiary
|
|
425,392
|
|
420,217
|
|
404,861
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
Shareholders'
equity
|
|
1,982,811
|
|
2,251,705
|
|
2,700,850
|
Noncontrolling
interest
|
|
67,354
|
|
89,182
|
|
49,476
|
Total equity
|
|
2,050,165
|
|
2,340,887
|
|
2,750,326
|
Total liabilities and
equity
|
|
$
6,760,658
|
|
$
7,273,497
|
|
$
7,853,944
|
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)
|
|
2019
|
|
2018
|
|
2019
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues:
|
|
|
|
|
|
|
|
|
|
|
U.S.
Drilling
|
|
$ 289,517
|
|
$ 303,834
|
|
$
307,808
|
|
$
1,240,936
|
|
$
1,083,227
|
Canada
Drilling
|
|
19,379
|
|
29,026
|
|
12,191
|
|
68,274
|
|
105,000
|
International
Drilling
|
|
331,703
|
|
345,082
|
|
328,278
|
|
1,324,142
|
|
1,469,038
|
Drilling
Solutions
|
|
60,499
|
|
66,812
|
|
62,286
|
|
252,790
|
|
250,242
|
Rig Technologies
(1)
|
|
52,616
|
|
61,357
|
|
63,106
|
|
260,226
|
|
270,988
|
Other reconciling
items (2)
|
|
(39,453)
|
|
(24,031)
|
|
(15,593)
|
|
(102,985)
|
|
(120,876)
|
Total operating
revenues
|
|
$ 714,261
|
|
$ 782,080
|
|
$
758,076
|
|
$
3,043,383
|
|
$
3,057,619
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA:
(3)
|
|
|
|
|
|
|
|
|
|
|
U.S.
Drilling
|
|
$ 113,128
|
|
$ 113,945
|
|
$
120,936
|
|
$
483,993
|
|
$
373,288
|
Canada
Drilling
|
|
5,302
|
|
9,450
|
|
1,466
|
|
15,283
|
|
31,006
|
International
Drilling
|
|
96,155
|
|
94,030
|
|
95,214
|
|
363,980
|
|
457,448
|
Drilling
Solutions
|
|
24,776
|
|
23,025
|
|
23,471
|
|
91,754
|
|
68,663
|
Rig Technologies
(1)
|
|
(1,569)
|
|
(1,274)
|
|
2,173
|
|
1,468
|
|
(9,375)
|
Other reconciling
items (4)
|
|
(35,267)
|
|
(37,557)
|
|
(36,226)
|
|
(151,516)
|
|
(162,354)
|
Total adjusted
EBITDA
|
|
$ 202,525
|
|
$ 201,619
|
|
$
207,034
|
|
$
804,962
|
|
$
758,676
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss): (5)
|
|
|
|
|
|
|
|
|
|
|
U.S.
Drilling
|
|
$
6,811
|
|
$
8,977
|
|
$
12,427
|
|
$
64,313
|
|
$
(21,298)
|
Canada
Drilling
|
|
(3,186)
|
|
929
|
|
(5,701)
|
|
(14,483)
|
|
(6,166)
|
International
Drilling
|
|
1,152
|
|
(481)
|
|
2,466
|
|
(8,903)
|
|
74,221
|
Drilling
Solutions
|
|
16,672
|
|
11,853
|
|
16,145
|
|
59,465
|
|
37,626
|
Rig Technologies
(1)
|
|
(5,954)
|
|
(5,212)
|
|
(641)
|
|
(11,247)
|
|
(25,762)
|
Other reconciling
items (4)
|
|
(38,794)
|
|
(41,090)
|
|
(39,219)
|
|
(160,274)
|
|
(166,815)
|
Total adjusted
operating income (loss)
|
|
$ (23,299)
|
|
$ (25,024)
|
|
$
(14,523)
|
|
$
(71,129)
|
|
$
(108,194)
|
|
|
|
|
|
|
|
|
|
|
|
Rig
activity:
|
|
|
|
|
|
|
|
|
|
|
Average Rigs Working:
(6)
|
|
|
|
|
|
|
|
|
|
|
U.S.
Drilling
|
|
104.2
|
|
117.3
|
|
114.1
|
|
115.3
|
|
113.2
|
Canada
Drilling
|
|
12.3
|
|
18.3
|
|
7.7
|
|
10.9
|
|
16.9
|
International
Drilling
|
|
87.1
|
|
88.0
|
|
87.7
|
|
88.3
|
|
92.9
|
Total average rigs
working
|
|
203.6
|
|
223.6
|
|
209.5
|
|
214.5
|
|
223.0
|
|
(1) Includes our
oilfield equipment manufacturing, automated systems, and downhole
tools.
|
|
|
|
|
|
|
|
|
|
|
|
(2) Represents the
elimination of inter-segment transactions.
|
|
|
|
|
|
|
|
|
|
|
|
(3) Adjusted EBITDA
represents income (loss) from continuing operations before income
taxes, interest expense, depreciation and amortization, earnings
(losses) from unconsolidated affiliates, investment income (loss),
impairments and other charges and other, net. 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 income (loss) from continuing operations before income
taxes, 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 Income (loss)
from Continuing Operations before Income Taxes".
|
|
|
|
|
|
|
|
|
|
|
|
(4) Represents the
elimination of inter-segment transactions and unallocated corporate
expenses.
|
|
|
|
|
|
|
|
|
|
|
|
(5) Adjusted
operating income (loss) represents income (loss) from continuing
operations before income taxes, interest expense, earnings (losses)
from unconsolidated affiliates, investment income (loss),
impairments and other charges 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 income (loss) from continuing operations before income
taxes, 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 Income (loss)
from Continuing Operations before Income Taxes".
|
|
|
|
|
|
|
|
|
|
|
|
(6) 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.
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES TO
|
INCOME (LOSS) FROM
CONTINUING OPERATIONS BEFORE INCOME TAXES
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
|
2019
|
|
2018
|
|
2019
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
202,525
|
|
$
201,619
|
|
$
207,034
|
|
$
804,962
|
|
$
758,676
|
Depreciation and
amortization
|
|
(225,824)
|
|
(226,643)
|
|
(221,557)
|
|
(876,091)
|
|
(866,870)
|
Adjusted operating
income (loss)
|
|
(23,299)
|
|
(25,024)
|
|
(14,523)
|
|
(71,129)
|
|
(108,194)
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (losses)
from unconsolidated affiliates
|
|
-
|
|
-
|
|
-
|
|
(5)
|
|
1
|
Investment income
(loss)
|
|
1,509
|
|
(5,458)
|
|
(1,437)
|
|
10,218
|
|
(9,499)
|
Interest
expense
|
|
(49,177)
|
|
(53,731)
|
|
(51,291)
|
|
(204,311)
|
|
(227,124)
|
Impairments and other
charges
|
|
(186,201)
|
|
(54,012)
|
|
(3,939)
|
|
(290,471)
|
|
(144,446)
|
Other, net
|
|
(889)
|
|
(5,369)
|
|
(4,695)
|
|
(33,224)
|
|
(29,532)
|
Income (loss) from
continuing operations before income taxes
|
|
$(258,057)
|
|
$(143,594)
|
|
$
(75,885)
|
|
$(588,922)
|
|
$(518,794)
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
RECONCILIATION OF
NET DEBT TO TOTAL DEBT
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
(In
thousands)
|
|
2019
|
|
2019
|
|
2018
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current portion of
debt
|
|
$
-
|
|
$
1,058
|
|
$
561
|
Long-term
debt
|
|
3,333,220
|
|
3,516,592
|
|
3,585,884
|
Total Debt
|
|
3,333,220
|
|
3,517,650
|
|
3,586,445
|
Less: Cash and
short-term investments
|
|
452,496
|
|
418,937
|
|
481,802
|
Net Debt
|
|
$
2,880,724
|
|
$
3,098,713
|
|
$
3,104,643
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
RECONCILIATION OF
FREE CASH FLOW TO
|
NET CASH PROVIDED
BY OPERATING ACTIVITIES
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
|
|
|
|
|
|
(In
thousands)
|
|
2019
|
|
2019
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
253,730
|
|
$
157,743
|
|
$
684,558
|
Less: Net cash used
for investing activities
|
|
(22,156)
|
|
(75,496)
|
|
(355,856)
|
Free cash
flow
|
|
$
231,574
|
|
$
82,247
|
|
$
328,702
|
|
Free cash flow
represents net cash provided by operating activities less cash used
for investing activities. Free cash flow is an indicator of our
ability to generate cash flow after required spending to maintain
or expand our asset base. Management believes that this non-GAAP
measure is useful information to investors when comparing our cash
flows with the cash flows of other companies. 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 the consolidated
Company based on several criteria, including free cash flow,
because it believes that these financial measures accurately
reflect the Company's ongoing profitability and
performance.
|
View original
content:http://www.prnewswire.com/news-releases/nabors-announces-fourth-quarter-2019-results-301008767.html
SOURCE Nabors Industries Ltd.