HAMILTON, Bermuda, Oct. 26, 2021 /PRNewswire/ -- Nabors Industries
Ltd. ("Nabors" or the "Company") (NYSE: NBR) today reported
third quarter 2021 operating revenues of $524 million, compared to operating revenues of
$489 million in the second quarter of
2021. The net loss from continuing operations attributable to
Nabors shareholders for the quarter was $122
million, or $15.79 per share.
The third quarter included a $13
million after tax expense, or $1.63 per share, related to the purchase of
technology in the energy transition space. This compares to a loss
of $196 million, or $26.59 per share, in the second quarter. The
second quarter results included charges of $81 million after taxes, comprised mainly of an
impairment of assets in Canada
related to the sale of our Canada
drilling rigs, and a tax reserve for contingencies in our
International segment. Third quarter adjusted EBITDA was
$125 million compared to $117 million in the second quarter.
Anthony G. Petrello, Nabors
Chairman, CEO and President, commented, "Our performance in the
third quarter was noteworthy on a number of fronts. Adjusted EBITDA
increased by 7% versus the second quarter even with the sale of
Canada drilling operations. All of
our current segments grew sequentially. Once again, our free
cash flow generation was excellent. That performance drove another
improvement in our leverage. We reached notable milestones in our
technology portfolio, which reinforces our leadership in
innovation. In particular, we successfully deployed the industry's
first fully-automated rig for an operator in the Permian
Basin. The PACE®-R801 utilizes Nabors' full portfolio of
digital solutions. It recently completed drilling its initial well
with a total depth of 20,000 feet. We are proud of the performance
delivered by this transformative and unique addition to our
technology portfolio.
"In the third quarter, global oil prices remained above the
$60 mark. Since the end of the
quarter, they have climbed above $80.
Natural gas prices have risen to levels not seen in over a decade.
In turn, oilfield activity has strengthened. In our two largest
markets – Saudi Arabia and
the United States – both the
industry's and our own rig counts grew. In the U.S., pricing
increased as industry utilization rose. Looking through the balance
of this year and into 2022, we are optimistic that a continued
favorable commodity environment will drive strong increases in rig
count and pricing."
Consolidated and Segment Results
International Drilling adjusted EBITDA increased sequentially by
7%, to $76.2 million. The rig count
averaged 67 rigs, a one rig decrease from the second quarter. This
change was driven primarily by rigs moving between clients in
Latin America, partially offset by
the reactivation of temporarily idled rigs in Saudi Arabia. Average margin per day was
$14,375, an increase of $955, driven by $7
million in early termination revenue somewhat offset by the
impact of lost margin from rig moves in Mexico.
The U.S. Drilling segment reported $62.1
million in adjusted EBITDA for the third quarter of 2021, a
4% increase from the prior quarter. Nabors' average Lower 48 rig
count, at 68, increased by more than four rigs, or 6%. Average
daily margins in the Lower 48 were $7,025, in line with the prior quarter. The U.S.
Drilling segment's rig count currently stands at 78, with 72 rigs
in the Lower 48.
In Drilling Solutions, adjusted EBITDA of $15.6 million increased by 22% reflecting
stronger activity in performance drilling software, especially in
the U.S., and in casing running services in both our U.S. and
international markets.
In Rig Technologies, adjusted EBITDA increased to $3.0 million in the third quarter, up from
$2.0 million in the second quarter.
Higher international deliveries of capital equipment were the
primary driver of this increase.
Outlook for the Fourth Quarter of 2021
International
- Quarterly average rig count is expected to increase by
approximately four rigs over the third quarter average, primarily
reflecting reactivations of two suspended rigs in Saudi Arabia and additional rigs in
Latin America.
- Daily drilling margin is expected to decline to $13,000 - $13,500,
primarily reflecting the non-recurring early termination revenue
received in the third quarter.
U.S. Drilling
- Quarterly average Lower 48 rig count is expected to increase by
approximately five rigs over the third quarter average.
- Lower 48 daily drilling margin is expected to remain in line
with the third quarter level, as the Company anticipates offsetting
planned compensation increases with higher dayrates.
- Quarterly average Alaska rig
count is expected to increase by approximately one rig over the
third quarter level, while the quarterly average U.S. Offshore rig
count is expected to remain substantially in line with the third
quarter average.
Drilling Solutions
- Adjusted EBITDA is expected to increase by approximately 10%
over the third quarter level.
Rig Technologies
- Adjusted EBITDA is expected to increase moderately above the
third quarter level.
Capital Expenditures
- Capital expenditures for the full year are expected to total
approximately $270 million, including
approximately $90 million supporting
SANAD's newbuild rig program. This translates into targeted fourth
quarter capital expenditures of $91
million, of which $32 million
is for SANAD newbuilds.
Free Cash Flow and Capital Discipline
Free cash flow, defined as net cash provided by operating
activities less net cash used by investing activities, as presented
in the Company's cash flow statement, totaled $133 million in the third quarter. This amount
included proceeds from the sale of Canada drilling assets of $94 million offset by $16
million for energy transition investments. Capital
expenditures accounted for $63
million while cash interest payments totaled $78 million. The Company improved net debt,
defined as total debt less cash, cash equivalents and short-term
investments, by $120 million. For the
first nine months of 2021, the Company generated free cash flow of
$261 million.
William Restrepo, Nabors CFO,
stated, "The third quarter was a further demonstration of Nabors'
leading operational performance both in the U.S. and
internationally, with the potential for meaningful growth in the
year ahead. Our strong performance is also translating into robust
free cash flow generation that has allowed us to reduce our net
debt materially. We expect further net debt reductions in the
fourth quarter and in 2022.
"With our rapid progress in technology introduction, our modern
industry leading fleet and our close relationships with customers
across the globe, Nabors has never been stronger operationally. And
with our deleveraging efforts of the last five years, our capital
structure and debt profile are considerably stronger than they have
been in a long time. We believe we are much better positioned to
keep reducing our leverage, while taking advantage of the exciting
opportunities presented by an improving industry
environment.""
Mr. Petrello concluded, "We are pleased with the level of our
operational and financial performance. These allowed us to make
further progress on our goals to generate free cash flow and reduce
net debt. We have implemented multiple financial strategies to
improve our leverage and they are delivering the desired
results.
"We continue to advance on our Sustainability plans. We are on
target to meet our commitment to reduce GHG emissions by 5% in the
U.S. this year, and our Environmental and Social score metrics once
again improved. We expect to make significant additional
improvements on our emissions in the coming year.
"We took further steps to advance our efforts in the energy
transition. We completed the third geothermal investment; all three
companies in our portfolio have potentially disruptive technology.
We also made additional development progress in the areas of energy
storage, hydrogen, and carbon capture.
"As we approach the close of 2021 and look into 2022, we are
optimistic that industry fundamentals will improve further. Nabors
has the industry's most talented workforce and a global fleet that
is second-to-none. We have the most robust offering of apps and
digital automation technology in the industry, and we are working
to extend that leadership. With this combination, I am confident we
will continue our advancement towards the achievement of our
financial goals while simultaneously creating significant value for
all of our stakeholders."
About Nabors Industries
Nabors Industries is a leading provider of advanced technology
for the energy industry. With operations in approximately 20
countries, Nabors has established a global network of people,
technology and equipment to deploy solutions that deliver safe,
efficient and sustainable energy production. By leveraging its core
competencies, particularly in drilling, engineering, automation,
data science and manufacturing, Nabors aims to help shape the
future of energy and enable the transition to a lower carbon world.
Learn more about Nabors and its 100-year history of 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,
earnings (losses) from unconsolidated affiliates, investment income
(loss), (gain)/loss on debt buybacks and exchanges, 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.
Investor Contacts: William C.
Conroy, 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)
|
|
2021
|
|
2020
|
|
2021
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
Revenues and other
income:
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues
|
|
$
524,165
|
|
$
438,352
|
|
$
489,333
|
|
$
1,474,009
|
|
$
1,690,647
|
Investment income
(loss)
|
|
200
|
|
(742)
|
|
(62)
|
|
1,401
|
|
(1,904)
|
Total revenues and
other income
|
|
524,365
|
|
437,610
|
|
489,271
|
|
1,475,410
|
|
1,688,743
|
|
|
|
|
|
|
|
|
|
|
|
Costs and other
deductions:
|
|
|
|
|
|
|
|
|
|
|
Direct costs
|
|
336,538
|
|
270,397
|
|
312,466
|
|
939,658
|
|
1,058,794
|
General and
administrative expenses
|
|
52,897
|
|
46,168
|
|
51,580
|
|
159,137
|
|
149,796
|
Research and
engineering
|
|
9,498
|
|
7,565
|
|
7,965
|
|
24,930
|
|
26,279
|
Depreciation and
amortization
|
|
173,375
|
|
206,862
|
|
174,775
|
|
525,426
|
|
645,045
|
Interest
expense
|
|
42,217
|
|
52,403
|
|
41,714
|
|
126,906
|
|
158,331
|
Other, net
|
|
22,758
|
|
4,592
|
|
66,455
|
|
96,559
|
|
290,973
|
Total costs and other
deductions
|
|
637,283
|
|
587,987
|
|
654,955
|
|
1,872,616
|
|
2,329,218
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations before income taxes
|
|
(112,918)
|
|
(150,377)
|
|
(165,684)
|
|
(397,206)
|
|
(640,475)
|
Income tax expense
(benefit)
|
|
2,784
|
|
(3,695)
|
|
24,719
|
|
37,228
|
|
18,444
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations, net of tax
|
|
(115,702)
|
|
(146,682)
|
|
(190,403)
|
|
(434,434)
|
|
(658,919)
|
Income (loss) from
discontinued operations, net of tax
|
|
(20)
|
|
22
|
|
8
|
|
7
|
|
(48)
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
(115,722)
|
|
(146,660)
|
|
(190,395)
|
|
(434,427)
|
|
(658,967)
|
Less: Net (income) loss
attributable to noncontrolling interest
|
|
(6,778)
|
|
(10,805)
|
|
(5,614)
|
|
(21,168)
|
|
(38,437)
|
Net income (loss)
attributable to Nabors
|
|
(122,500)
|
|
(157,465)
|
|
(196,009)
|
|
(455,595)
|
|
(697,404)
|
Less: Preferred stock
dividend
|
|
-
|
|
(3,653)
|
|
-
|
|
(3,653)
|
|
(10,958)
|
Net income (loss)
attributable to Nabors common shareholders
|
|
$
(122,500)
|
|
$
(161,118)
|
|
$
(196,009)
|
|
$
(459,248)
|
|
$
(708,362)
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to
Nabors common shareholders:
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) from
continuing operations
|
|
$
(122,480)
|
|
$
(161,140)
|
|
$
(196,017)
|
|
$
(459,255)
|
|
$
(708,314)
|
Net income (loss) from
discontinued operations
|
|
(20)
|
|
22
|
|
8
|
|
7
|
|
(48)
|
Net income (loss)
attributable to Nabors common shareholders
|
|
$
(122,500)
|
|
$
(161,118)
|
|
$
(196,009)
|
|
$
(459,248)
|
|
$
(708,362)
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (losses) per
share:
|
|
|
|
|
|
|
|
|
|
|
Basic from continuing
operations
|
|
$
(15.79)
|
|
$
(23.42)
|
|
$
(26.59)
|
|
$
(62.26)
|
|
$
(102.25)
|
Basic from discontinued
operations
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(0.01)
|
Total Basic
|
|
$
(15.79)
|
|
$
(23.42)
|
|
$
(26.59)
|
|
$
(62.26)
|
|
$
(102.26)
|
|
|
|
|
|
|
|
|
|
|
|
Diluted from continuing
operations
|
|
$
(15.79)
|
|
$
(23.42)
|
|
$
(26.59)
|
|
$
(62.26)
|
|
$
(102.25)
|
Diluted from
discontinued operations
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(0.01)
|
Total
Diluted
|
|
$
(15.79)
|
|
$
(23.42)
|
|
$
(26.59)
|
|
$
(62.26)
|
|
$
(102.26)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number
of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
7,907
|
|
7,064
|
|
7,460
|
|
7,490
|
|
7,056
|
Diluted
|
|
7,907
|
|
7,064
|
|
7,460
|
|
7,490
|
|
7,056
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
125,232
|
|
$
114,222
|
|
$
117,322
|
|
$
350,284
|
|
$
455,778
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss)
|
|
$
(48,143)
|
|
$
(92,640)
|
|
$
(57,453)
|
|
$
(175,142)
|
|
$
(189,267)
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
June
30,
|
|
December
31,
|
|
(In
thousands)
|
|
2021
|
|
2021
|
|
2020
|
|
|
|
(Unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and short-term
investments
|
|
$
771,884
|
|
$
399,897
|
|
$
481,746
|
|
Accounts receivable,
net
|
|
282,726
|
|
312,136
|
|
362,977
|
|
Assets held for
sale
|
|
16,785
|
|
111,682
|
|
16,562
|
|
Other current
assets
|
|
251,232
|
|
263,424
|
|
270,180
|
|
Total current
assets
|
|
1,322,627
|
|
1,087,139
|
|
1,131,465
|
|
Property, plant and
equipment, net
|
|
3,443,737
|
|
3,562,350
|
|
3,985,707
|
|
Other long-term
assets
|
|
408,462
|
|
392,829
|
|
386,256
|
|
Total assets
|
|
$
5,174,826
|
|
$
5,042,318
|
|
$
5,503,428
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Current portion of
debt
|
|
$
-
|
|
$
-
|
|
$
-
|
|
Other current
liabilities
|
|
516,088
|
|
529,116
|
|
515,469
|
|
Total current
liabilities
|
|
516,088
|
|
529,116
|
|
515,469
|
|
Long-term
debt
|
|
3,075,520
|
|
2,823,125
|
|
2,968,701
|
|
Other long-term
liabilities
|
|
348,542
|
|
354,637
|
|
319,610
|
|
Total liabilities
|
|
3,940,150
|
|
3,706,878
|
|
3,803,780
|
|
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interest in subsidiary
|
|
400,853
|
|
398,497
|
|
442,840
|
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
709,021
|
|
818,919
|
|
1,151,384
|
|
Noncontrolling
interest
|
|
124,802
|
|
118,024
|
|
105,424
|
|
Total equity
|
|
833,823
|
|
936,943
|
|
1,256,808
|
|
Total liabilities and
equity
|
|
$
5,174,826
|
|
$
5,042,318
|
|
$
5,503,428
|
|
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)
|
|
2021
|
|
2020
|
|
2021
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Drilling
|
|
$
173,441
|
|
$
130,243
|
|
$
161,606
|
|
$
477,346
|
|
$
578,928
|
|
Canada
Drilling
|
|
6,034
|
|
10,774
|
|
12,313
|
|
39,336
|
|
39,929
|
|
International
Drilling
|
|
270,008
|
|
248,392
|
|
255,282
|
|
772,128
|
|
886,580
|
|
Drilling
Solutions
|
|
45,880
|
|
29,324
|
|
39,111
|
|
120,697
|
|
117,837
|
|
Rig Technologies
(1)
|
|
42,053
|
|
28,466
|
|
34,552
|
|
102,353
|
|
104,198
|
|
Other reconciling items
(2)
|
|
(13,251)
|
|
(8,847)
|
|
(13,531)
|
|
(37,851)
|
|
(36,825)
|
|
Total operating
revenues
|
|
$
524,165
|
|
$
438,352
|
|
$
489,333
|
|
$
1,474,009
|
|
$
1,690,647
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA:
(3)
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Drilling
|
|
$
62,132
|
|
$
60,520
|
|
$
59,784
|
|
$
180,702
|
|
$
239,988
|
|
Canada
Drilling
|
|
1,607
|
|
2,150
|
|
3,008
|
|
14,274
|
|
9,517
|
|
International
Drilling
|
|
76,211
|
|
71,885
|
|
71,322
|
|
210,144
|
|
256,904
|
|
Drilling
Solutions
|
|
15,620
|
|
7,129
|
|
12,796
|
|
39,874
|
|
35,979
|
|
Rig Technologies
(1)
|
|
3,005
|
|
1,309
|
|
2,035
|
|
4,507
|
|
1,307
|
|
Other reconciling items
(4)
|
|
(33,343)
|
|
(28,771)
|
|
(31,623)
|
|
(99,216)
|
|
(87,917)
|
|
Total adjusted
EBITDA
|
|
$
125,232
|
|
$
114,222
|
|
$
117,322
|
|
$
350,284
|
|
$
455,778
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss): (5)
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Drilling
|
|
$
(19,700)
|
|
$
(39,162)
|
|
$
(20,869)
|
|
$
(63,905)
|
|
$
(69,961)
|
|
Canada
Drilling
|
|
1,371
|
|
(3,507)
|
|
(2,608)
|
|
2,670
|
|
(9,265)
|
|
International
Drilling
|
|
(7,297)
|
|
(16,872)
|
|
(8,439)
|
|
(34,368)
|
|
(20,743)
|
|
Drilling
Solutions
|
|
8,607
|
|
(3,583)
|
|
6,524
|
|
19,841
|
|
8,699
|
|
Rig Technologies
(1)
|
|
1,926
|
|
(1,807)
|
|
(692)
|
|
(1,335)
|
|
(11,450)
|
|
Other reconciling items
(4)
|
|
(33,050)
|
|
(27,709)
|
|
(31,369)
|
|
(98,045)
|
|
(86,547)
|
|
Total adjusted
operating income (loss)
|
|
$
(48,143)
|
|
$
(92,640)
|
|
$
(57,453)
|
|
$
(175,142)
|
|
$
(189,267)
|
|
|
|
|
|
|
|
|
|
|
|
|
Rig
activity:
|
|
|
|
|
|
|
|
|
|
|
Average Rigs Working:
(6)
|
|
|
|
|
|
|
|
|
|
|
|
Lower 48
|
|
67.6
|
|
48.2
|
|
63.5
|
|
62.5
|
|
64.7
|
|
Other US
|
|
5.0
|
|
5.2
|
|
5.7
|
|
5.0
|
|
6.4
|
|
U.S.
Drilling
|
|
72.6
|
|
53.4
|
|
69.2
|
|
67.5
|
|
71.1
|
|
Canada
Drilling
|
|
4.1
|
|
7.4
|
|
8.2
|
|
8.6
|
|
8.8
|
|
International
Drilling
|
|
67.0
|
|
71.3
|
|
68.3
|
|
66.7
|
|
80.1
|
|
Total average rigs
working
|
|
143.7
|
|
132.1
|
|
145.7
|
|
142.8
|
|
160.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Daily Rig
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
Lower 48
|
|
$
21,312
|
|
$
21,764
|
|
$
21,015
|
|
$
21,314
|
|
$
25,120
|
|
Other US
|
|
88,175
|
|
71,175
|
|
78,215
|
|
83,177
|
|
76,214
|
|
U.S. Drilling
(8)
|
|
25,940
|
|
26,548
|
|
25,694
|
|
25,908
|
|
29,712
|
|
Canada
Drilling
|
|
16,056
|
|
15,867
|
|
16,512
|
|
16,693
|
|
16,622
|
|
International
Drilling
|
|
43,789
|
|
37,842
|
|
41,102
|
|
42,410
|
|
40,375
|
|
|
|
|
|
|
|
|
|
|
|
|
Daily Rig Margin:
(7)
|
|
|
|
|
|
|
|
|
|
|
|
Lower 48
|
|
$
7,025
|
|
$
9,527
|
|
$
7,017
|
|
$
7,450
|
|
$
9,964
|
|
Other US
|
|
53,947
|
|
48,636
|
|
48,657
|
|
52,251
|
|
45,861
|
|
U.S. Drilling
(8)
|
|
10,272
|
|
13,314
|
|
10,424
|
|
10,777
|
|
13,190
|
|
Canada
Drilling
|
|
5,654
|
|
4,203
|
|
4,993
|
|
6,758
|
|
4,880
|
|
International
Drilling
|
|
14,375
|
|
12,678
|
|
13,420
|
|
13,582
|
|
13,446
|
|
|
(1)
|
Includes our oilfield
equipment manufacturing, automated systems, and downhole
tools.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Represents the
elimination of inter-segment transactions related to our Rig
Technologies operating segment.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7)
|
Daily rig margin
represents operating revenue less operating expenses, divided by
the total number of revenue days during the
quarter.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(8)
|
The U.S. Drilling
segment includes the Lower 48, Alaska, and Gulf of Mexico operating
areas.
|
|
|
|
|
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)
|
|
2021
|
|
2020
|
|
2021
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
125,232
|
|
$
114,222
|
|
$
117,322
|
|
$
350,284
|
|
$
455,778
|
Depreciation and
amortization
|
|
(173,375)
|
|
(206,862)
|
|
(174,775)
|
|
(525,426)
|
|
(645,045)
|
Adjusted operating
income (loss)
|
|
(48,143)
|
|
(92,640)
|
|
(57,453)
|
|
(175,142)
|
|
(189,267)
|
|
|
|
|
|
|
|
|
|
|
|
Investment income
(loss)
|
|
200
|
|
(742)
|
|
(62)
|
|
1,401
|
|
(1,904)
|
Interest
expense
|
|
(42,217)
|
|
(52,403)
|
|
(41,714)
|
|
(126,906)
|
|
(158,331)
|
Other, net
|
|
(22,758)
|
|
(4,592)
|
|
(66,455)
|
|
(96,559)
|
|
(290,973)
|
Income (loss) from
continuing operations before income taxes
|
|
$
(112,918)
|
|
$
(150,377)
|
|
$
(165,684)
|
|
$
(397,206)
|
|
$
(640,475)
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
RECONCILIATION OF
NET DEBT TO TOTAL DEBT
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
June
30,
|
|
December
31,
|
(In
thousands)
|
|
2021
|
|
2021
|
|
2020
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Current portion of
debt
|
|
$
-
|
|
$
-
|
|
$
-
|
Long-term
debt
|
|
3,075,520
|
|
2,823,125
|
|
2,968,701
|
Total Debt
|
|
3,075,520
|
|
2,823,125
|
|
2,968,701
|
Less: Cash and
short-term investments
|
|
771,884
|
|
399,897
|
|
481,746
|
Net Debt
|
|
$
2,303,636
|
|
$
2,423,228
|
|
$
2,486,955
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
RECONCILIATION OF
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)
|
|
2021
|
|
2021
|
|
2021
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
113,280
|
|
$
133,713
|
|
$
326,483
|
Net cash provided by
(used for) investing activities
|
|
19,831
|
|
(65,800)
|
|
(65,088)
|
Free cash
flow
|
|
$
133,111
|
|
$
67,913
|
|
$
261,395
|
|
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:https://www.prnewswire.com/news-releases/nabors-announces-third-quarter-2021-results-301409156.html
SOURCE Nabors Industries Ltd.