HAMILTON, Bermuda, April 24,
2023 /PRNewswire/ -- Nabors Industries
Ltd. ("Nabors" or the "Company") (NYSE: NBR) today reported
first quarter 2023 operating revenues of $779 million, an increase of 2.5%, compared to
operating revenues of $760 million in
the fourth quarter of 2022. The net income attributable to Nabors
shareholders for the quarter was $49
million, or $4.11 per diluted
share. This compares to a loss of $69
million, or $7.87 per diluted
share, in the fourth quarter. The first quarter results included a
gain, related to mark-to-market treatment of Nabors warrants, of
$34 million, or $3.48 per diluted share. The quarter also
included a $25 million, or
$2.06 per diluted share, gain on the
redemption of debt. Results for the fourth quarter of 2022 included
a mark-to-market charge of $36
million, or $3.98 per diluted
share, for the warrants. Excluding the impact of the Nabors
warrants on each quarter's results and the debt redemption gain,
the net loss improved sequentially by $28
million. First quarter adjusted EBITDA was $240 million, compared to $230 million in the previous quarter.
Anthony G. Petrello, Nabors
Chairman, CEO and President, commented, "Our overall results for
the first quarter were essentially in line with our expectations.
Total adjusted EBITDA increased, driven by growth in the U.S.
Drilling and Drilling Solutions segments. In U.S. Drilling,
adjusted daily gross margin in the Lower 48 market reached a new
record. Drilling Solutions' growth was broad-based across service
lines.
"In the Lower 48, we continued repricing our rigs upward. Daily
rig revenue increased by more than $3,700. Daily gross margin increased by more than
$2,000.
"In our International segment, results benefitted from a full
quarter of our second newbuild rig in Saudi Arabia. The remaining three rigs of the
initial five awards are expected to commence operations over the
balance of 2023. Construction of the second tranche of five units
commenced during the quarter, with deployment expected to begin
around the end of 2023.
"Revenue and adjusted EBITDA in our Drilling Solutions segment
increased by 5% in the first quarter. Third party revenue increased
10% sequentially, affirming our strategy to target this market.
"In the Rig Technologies segment, revenue and adjusted EBITDA
from our Energy Transition solutions increased, demonstrating the
growing demand for this portfolio. Installations of several of
these solutions increased in the first quarter, demonstrating their
rapid acceptance in the market.
"Also during the quarter, the planned business combination
between Nabors affiliate Nabors Energy Transition Corporation
(NYSE: NETC, NETC.U, NETC.WS) and Vast Pty Ltd ("Vast") was
announced. With its innovative technology, Vast is positioned at
the forefront of next-generation concentrated solar power. This
combination reinforces Nabors' commitment to the energy
transition."
Segment Results
The U.S. Drilling segment reported $156.5
million in adjusted EBITDA for the first quarter of 2023, a
9% increase from the prior quarter. Nabors' average Lower 48 rig
count, at 93, decreased by two rigs. Daily adjusted gross margin in
the Lower 48 market averaged $16,690,
more than 14% above the prior quarter.
International Drilling adjusted EBITDA totaled $88.6 million. Improved performance and higher
dayrates on renewal contracts in Saudi
Arabia contributed to the results. The International rig
count averaged 76.4, up one rig sequentially. Daily adjusted gross
margin for the first quarter averaged $15,222, up $320
from the prior quarter.
Drilling Solutions adjusted EBITDA increased sequentially by 5%
to $31.9 million. Growth was
especially strong in the Performance Software and Managed Pressure
Drilling product lines.
In Rig Technologies, adjusted EBITDA totaled $5.0 million, compared to $7.6 million in the fourth quarter. Delays in
deliveries of capital equipment components largely accounted for
the sequential decline in adjusted EBITDA.
Adjusted Free Cash Flow
Adjusted free cash flow totaled $37
million in the first quarter, primarily driven by higher
financial results, strong collections, and disciplined capital
spending. Capital expenditures for the first quarter totaled
$119 million, including $37 million supporting the newbuilds in
Saudi Arabia.
At the end of the first quarter, net debt was $2.087 billion.
William Restrepo, Nabors CFO,
stated, "We are pleased with the strength of our cash flow
generation in the first quarter, as well as our expectations for
the second quarter and the remainder of the year. Despite the
softness in several of the Lower 48's predominantly gas basins, our
rig count and pricing held up relatively well in this market, and
we continued to deliver increases in daily revenue, gross margin,
and EBITDA. Our International and Drilling Solutions segments
continued to demonstrate solid performance, with multiple paths
toward continued growth.
"Our target of $400 million in
adjusted free cash flow for 2023 remains unchanged. We reconfirm
our commitment to improve our capital structure and reduce leverage
this year.
"Recently, that priority was highlighted by the issue of
$250 million of convertible notes
maturing in 2029, with the proceeds used to redeem our 9% senior
notes due in 2025. This transaction effectively extends the
maturity of approximately $209
million of our outstanding notes by four years and reduces
the annual cost of our debt by more than $15
million. In addition, during the second quarter we intend to
redeem the remaining $52 million of
the September 2023 notes using the
quarter's cash flow generation."
Outlook
Nabors expects the following metrics for the second quarter
2023:
U.S. Drilling
- Lower 48 average rig count of 85 rigs
- Lower 48 adjusted gross margin per day of approximately
$16,900 - $17,000
International
- Rig count approximately in-line with the first quarter
average
- Adjusted gross margin per day of approximately $15,900 - $16,100
Drilling Solutions
- Adjusted EBITDA up by approximately 3% above the first quarter
level
Rig Technologies
- Adjusted EBITDA up by approximately $2 - $3 million vs
the first quarter
Capital Expenditures
- Capital expenditures of $140
million, of which approximately $55
million supports newbuilds in Saudi Arabia
- Expect reductions in our prior target capital expenditures for
the full year 2023 in the Lower 48 and Colombia in line with the current market
environment
Adjusted Free Cash Flow
- Adjusted free cash flow for the full year 2023 of approximately
$400 million
Mr. Petrello concluded, "Our first quarter results demonstrate
the strength of our strategy. Our commitments to value-based rig
pricing and disciplined capital spending, coupled with continued
focus on growth of our advanced performance solutions and
international operations, position us to make further progress on
our financial goals in 2023."
About Nabors Industries
Nabors Industries (NYSE: NBR) is a leading provider of advanced
technology for the energy industry. With presence in more than 20
countries, Nabors has established a global network of people,
technology and equipment to deploy solutions that deliver safe,
efficient and responsible energy production. By leveraging its core
competencies, particularly in drilling, engineering, automation,
data science and manufacturing, Nabors aims to innovate the future
of energy and enable the transition to a lower-carbon world. Learn
more about Nabors and its energy technology leadership:
www.nabors.com.
Forward-looking Statements
The information included in this press release includes
forward-looking statements within the meaning of the Securities Act
of 1933 and the Securities Exchange Act of 1934. Such
forward-looking statements are subject to a number of risks and
uncertainties, as disclosed by Nabors from time to time in its
filings with the Securities and Exchange Commission. As a result of
these factors, Nabors' actual results may differ materially from
those indicated or implied by such forward-looking
statements. The forward-looking statements contained in this
press release reflect management's estimates and beliefs as of the
date of this press release. Nabors does not undertake to
update these forward-looking statements.
Non-GAAP Disclaimer
This press release presents certain "non-GAAP" financial
measures. The components of these non-GAAP measures are
computed by using amounts that are determined in accordance with
accounting principles generally accepted in the United States of America
("GAAP"). Adjusted operating income (loss) represents income
(loss) from continuing operations before income taxes, interest
expense, investment income (loss), and other, net. Adjusted EBITDA
is computed similarly, but also excludes depreciation and
amortization expenses. In addition, adjusted EBITDA and adjusted
operating income (loss) exclude certain cash expenses that the
Company is obligated to make. Net debt is calculated as total debt
minus the sum of cash, cash equivalents and short-term
investments.
Adjusted free cash flow represents net cash provided by
operating activities less cash used for capital expenditures, net
of proceeds from sales of assets. Management believes that
adjusted free cash flow is an important liquidity measure for the
company and that it is useful to investors and management as a
measure of the company's ability to generate cash flow, after
reinvesting in the company for future growth, that could be
available for paying down debt or other financing cash flows, such
as dividends to shareholders. Management believes that this
non-GAAP measure is useful information to investors when comparing
our cash flows with the cash flows of other companies.
Each of these non-GAAP measures has limitations and therefore
should not be used in isolation or as a substitute for the amounts
reported in accordance with GAAP. However, management evaluates the
performance of its operating segments and the consolidated Company
based on several criteria, including Adjusted EBITDA, adjusted
operating income (loss), net debt, and adjusted free cash flow,
because it believes that these financial measures accurately
reflect the Company's ongoing profitability and
performance. Securities analysts and investors also use these
measures as some of the metrics on which they analyze the Company's
performance. Other companies in this industry may compute these
measures differently. Reconciliations of consolidated adjusted
EBITDA and adjusted operating income (loss) to income (loss) from
continuing operations before income taxes, net debt to total debt,
and adjusted free cash flow to net cash provided by operations,
which are their nearest comparable GAAP financial measures, are
included in the tables at the end of this press release. We do
not provide a forward-looking reconciliation of our outlook for
Segment Adjusted EBITDA, Segment Gross Margin or Adjusted Free Cash
Flow, as the amount and significance of items required to develop
meaningful comparable GAAP financial measures cannot be estimated
at this time without unreasonable efforts. These special items
could be meaningful.
Investor Contacts: William C.
Conroy, CFA, Vice President of Corporate Development &
Investor Relations, +1 281-775-2423 or via e-mail
william.conroy@nabors.com, or Kara
Peak, Director of Corporate Development & Investor
Relations, +1 281-775-4954 or via email kara.peak@nabors.com. To
request investor materials, contact Nabors' corporate headquarters
in Hamilton, Bermuda at
+441-292-1510 or via e-mail mark.andrews@nabors.com.
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
December
31,
|
|
(In thousands,
except per share amounts)
|
|
2023
|
|
2022
|
|
2022
|
|
|
|
|
|
|
|
|
Revenues and other
income:
|
|
|
|
|
|
|
|
Operating
revenues
|
|
$
779,139
|
|
$
568,539
|
|
$
760,148
|
|
Investment income
(loss)
|
|
9,866
|
|
163
|
|
9,194
|
|
Total revenues and
other income
|
|
789,005
|
|
568,702
|
|
769,342
|
|
|
|
|
|
|
|
|
Costs and other
deductions:
|
|
|
|
|
|
|
|
Direct costs
|
|
462,329
|
|
372,712
|
|
457,184
|
|
General and
administrative expenses
|
|
61,730
|
|
53,639
|
|
59,031
|
|
Research and
engineering
|
|
15,074
|
|
11,678
|
|
13,911
|
|
Depreciation and
amortization
|
|
163,031
|
|
164,359
|
|
168,841
|
|
Interest
expense
|
|
45,141
|
|
46,910
|
|
44,245
|
|
Other, net
|
|
(42,375)
|
|
80,401
|
|
58,124
|
|
Total costs and other
deductions
|
|
704,930
|
|
729,699
|
|
801,336
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
|
84,075
|
|
(160,997)
|
|
(31,994)
|
|
Income tax expense
(benefit)
|
|
23,015
|
|
13,671
|
|
26,161
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
61,060
|
|
(174,668)
|
|
(58,155)
|
|
Less: Net (income) loss
attributable to noncontrolling interest
|
|
(11,836)
|
|
(9,828)
|
|
(10,911)
|
|
Net income (loss)
attributable to Nabors
|
|
$
49,224
|
|
$
(184,496)
|
|
$
(69,066)
|
|
|
|
|
|
|
|
|
Earnings (losses) per
share:
|
|
|
|
|
|
|
|
Basic
|
|
$
4.39
|
|
$
(22.51)
|
|
$
(7.87)
|
|
Diluted
|
|
$
4.11
|
|
$
(22.51)
|
|
$
(7.87)
|
|
|
|
|
|
|
|
|
Weighted-average number
of common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
|
9,160
|
|
8,311
|
|
9,101
|
|
Diluted
|
|
9,867
|
|
8,311
|
|
9,101
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
240,006
|
|
$
130,510
|
|
$
230,022
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss)
|
|
$
76,975
|
|
$
(33,849)
|
|
$
61,181
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
(In
thousands)
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and short-term
investments
|
|
$
475,732
|
|
$
452,315
|
|
|
Accounts receivable,
net
|
|
307,005
|
|
327,397
|
|
|
Other current
assets
|
|
230,506
|
|
220,911
|
|
|
Total current
assets
|
|
1,013,243
|
|
1,000,623
|
|
|
Property, plant and
equipment, net
|
|
2,976,831
|
|
3,026,100
|
|
|
Other long-term
assets
|
|
709,902
|
|
703,131
|
|
|
Total assets
|
|
$
4,699,976
|
|
$
4,729,854
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Trade accounts
payable
|
|
$
306,543
|
|
$
314,041
|
|
|
Other current
liabilities
|
|
233,935
|
|
282,349
|
|
|
Total current
liabilities
|
|
540,478
|
|
596,390
|
|
|
Long-term
debt
|
|
2,562,327
|
|
2,537,540
|
|
|
Other long-term
liabilities
|
|
323,694
|
|
380,529
|
|
|
Total liabilities
|
|
3,426,499
|
|
3,514,459
|
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interest in subsidiary
|
|
691,095
|
|
678,604
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
Shareholders'
equity
|
|
402,711
|
|
368,956
|
|
|
Noncontrolling
interest
|
|
179,671
|
|
167,835
|
|
|
Total equity
|
|
582,382
|
|
536,791
|
|
|
Total liabilities and
equity
|
|
$
4,699,976
|
|
$
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
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
(In thousands,
except rig activity)
|
|
2023
|
|
2022
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues:
|
|
|
|
|
|
|
|
|
U.S.
Drilling
|
|
$
350,652
|
|
$
217,583
|
|
$
332,845
|
|
|
International
Drilling
|
|
320,048
|
|
279,030
|
|
317,577
|
|
|
Drilling
Solutions
|
|
75,043
|
|
54,182
|
|
71,307
|
|
|
Rig Technologies
(1)
|
|
58,479
|
|
36,736
|
|
62,803
|
|
|
Other reconciling items
(2)
|
|
(25,083)
|
|
(18,992)
|
|
(24,384)
|
|
|
Total operating
revenues
|
|
$
779,139
|
|
$
568,539
|
|
$
760,148
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA:
(3)
|
|
|
|
|
|
|
|
|
U.S.
Drilling
|
|
$
156,489
|
|
$
74,265
|
|
$
144,142
|
|
|
International
Drilling
|
|
88,608
|
|
71,248
|
|
88,838
|
|
|
Drilling
Solutions
|
|
31,914
|
|
20,000
|
|
30,336
|
|
|
Rig Technologies
(1)
|
|
4,954
|
|
(1,044)
|
|
7,561
|
|
|
Other reconciling items
(4)
|
|
(41,959)
|
|
(33,959)
|
|
(40,855)
|
|
|
Total adjusted
EBITDA
|
|
$
240,006
|
|
$
130,510
|
|
$
230,022
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss): (5)
|
|
|
|
|
|
|
|
|
U.S.
Drilling
|
|
$
85,869
|
|
$
(5,851)
|
|
$
68,293
|
|
|
International
Drilling
|
|
1,957
|
|
(6,327)
|
|
1,750
|
|
|
Drilling
Solutions
|
|
27,138
|
|
14,709
|
|
24,800
|
|
|
Rig Technologies
(1)
|
|
3,694
|
|
(2,751)
|
|
6,118
|
|
|
Other reconciling items
(4)
|
|
(41,683)
|
|
(33,629)
|
|
(39,780)
|
|
|
Total adjusted
operating income (loss)
|
|
$
76,975
|
|
$
(33,849)
|
|
$
61,181
|
|
|
|
|
|
|
|
|
|
|
|
Rig
activity:
|
|
|
|
|
|
|
|
|
Average Rigs Working:
(7)
|
|
|
|
|
|
|
|
|
Lower 48
|
|
93.3
|
|
83.4
|
|
95.1
|
|
|
Other US
|
|
7.0
|
|
6.9
|
|
7.0
|
|
|
U.S.
Drilling
|
|
100.3
|
|
90.3
|
|
102.1
|
|
|
International
Drilling
|
|
76.4
|
|
72.0
|
|
75.7
|
|
|
Total average rigs
working
|
|
176.7
|
|
162.3
|
|
177.8
|
|
|
|
|
|
|
|
|
|
|
|
Daily Rig Revenue:
(6),(8)
|
|
|
|
|
|
|
|
|
Lower 48
|
|
$
36,453
|
|
$
23,030
|
|
$
32,719
|
|
|
Other US
|
|
70,690
|
|
72,089
|
|
72,497
|
|
|
U.S. Drilling
(10)
|
|
38,842
|
|
26,781
|
|
35,447
|
|
|
International
Drilling
|
|
46,517
|
|
43,065
|
|
45,616
|
|
|
|
|
|
|
|
|
|
|
|
Daily Adjusted Gross
Margin: (6),(9)
|
|
|
|
|
|
|
|
|
Lower 48
|
|
$
16,690
|
|
$
7,694
|
|
$
14,599
|
|
|
Other US
|
|
37,114
|
|
37,236
|
|
36,592
|
|
|
U.S. Drilling
(10)
|
|
18,115
|
|
9,953
|
|
16,107
|
|
|
International
Drilling
|
|
15,222
|
|
13,134
|
|
14,902
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
NON-GAAP FINANCIAL
MEASURES
|
|
RECONCILIATION OF
ADJUSTED EBITDA BY SEGMENT TO ADJUSTED OPERATING INCOME (LOSS) BY
SEGMENT
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2023
|
|
|
|
U.S.
Drilling
|
|
International
Drilling
|
|
Drilling
Solutions
|
|
Rig
Technologies
|
|
Other
reconciling
items
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss)
|
|
$
85,869
|
|
$
1,957
|
|
$
27,138
|
|
$
3,694
|
|
$
(41,683)
|
|
$
76,975
|
|
Depreciation and
amortization
|
|
70,620
|
|
86,651
|
|
4,776
|
|
1,260
|
|
(276)
|
|
163,031
|
|
Adjusted
EBITDA
|
|
$ 156,489
|
|
$
88,608
|
|
$
31,914
|
|
$
4,954
|
|
$
(41,959)
|
|
$
240,006
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2022
|
|
|
|
U.S.
Drilling
|
|
International
Drilling
|
|
Drilling
Solutions
|
|
Rig
Technologies
|
|
Other
reconciling
items
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss)
|
|
$
(5,851)
|
|
$
(6,327)
|
|
$
14,709
|
|
$
(2,751)
|
|
$
(33,629)
|
|
$
(33,849)
|
|
Depreciation and
amortization
|
|
80,116
|
|
77,575
|
|
5,291
|
|
1,707
|
|
(330)
|
|
164,359
|
|
Adjusted
EBITDA
|
|
$
74,265
|
|
$
71,248
|
|
$
20,000
|
|
$
(1,044)
|
|
$
(33,959)
|
|
$
130,510
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2022
|
|
|
|
U.S.
Drilling
|
|
International
Drilling
|
|
Drilling
Solutions
|
|
Rig
Technologies
|
|
Other
reconciling
items
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss)
|
|
$
68,293
|
|
$
1,750
|
|
$
24,800
|
|
$
6,118
|
|
$
(39,780)
|
|
$
61,181
|
|
Depreciation and
amortization
|
|
75,849
|
|
87,088
|
|
5,536
|
|
1,443
|
|
(1,075)
|
|
168,841
|
|
Adjusted
EBITDA
|
|
$ 144,142
|
|
$
88,838
|
|
$
30,336
|
|
$
7,561
|
|
$
(40,855)
|
|
$
230,022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
(In
thousands)
|
|
2023
|
|
2022
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
Lower 48 - U.S.
Drilling
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss)
|
|
$
74,071
|
|
$
(14,596)
|
|
$
58,299
|
|
|
Plus: General and
administrative costs
|
|
5,056
|
|
4,447
|
|
4,977
|
|
|
Plus: Research and
engineering
|
|
1,519
|
|
1,638
|
|
1,637
|
|
|
GAAP Gross
Margin
|
|
80,646
|
|
(8,511)
|
|
64,913
|
|
|
Plus: Depreciation and
amortization
|
|
59,507
|
|
66,243
|
|
62,768
|
|
|
Adjusted gross
margin
|
|
$
140,153
|
|
$
57,732
|
|
$
127,681
|
|
|
|
|
|
|
|
|
|
|
|
Other - U.S.
Drilling
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss)
|
|
$
11,798
|
|
$
8,745
|
|
$
9,994
|
|
|
Plus: General and
administrative costs
|
|
345
|
|
383
|
|
324
|
|
|
Plus: Research and
engineering
|
|
128
|
|
132
|
|
166
|
|
|
GAAP Gross
Margin
|
|
12,271
|
|
9,260
|
|
10,484
|
|
|
Plus: Depreciation and
amortization
|
|
11,111
|
|
13,873
|
|
13,081
|
|
|
Adjusted gross
margin
|
|
$
23,382
|
|
$
23,133
|
|
$
23,565
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Drilling
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss)
|
|
$
85,869
|
|
$
(5,851)
|
|
$
68,293
|
|
|
Plus: General and
administrative costs
|
|
5,401
|
|
4,830
|
|
5,301
|
|
|
Plus: Research and
engineering
|
|
1,647
|
|
1,770
|
|
1,803
|
|
|
GAAP Gross
Margin
|
|
92,917
|
|
749
|
|
75,397
|
|
|
Plus: Depreciation and
amortization
|
|
70,618
|
|
80,116
|
|
75,849
|
|
|
Adjusted gross
margin
|
|
$
163,535
|
|
$
80,865
|
|
$
151,246
|
|
|
|
|
|
|
|
|
|
|
|
International
Drilling
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss)
|
|
$
1,957
|
|
$
(6,327)
|
|
$
1,750
|
|
|
Plus: General and
administrative costs
|
|
14,336
|
|
12,483
|
|
13,368
|
|
|
Plus: Research and
engineering
|
|
1,785
|
|
1,368
|
|
1,542
|
|
|
GAAP Gross
Margin
|
|
18,078
|
|
7,524
|
|
16,660
|
|
|
Plus: Depreciation and
amortization
|
|
86,651
|
|
77,575
|
|
87,089
|
|
|
Adjusted gross
margin
|
|
$
104,729
|
|
$
85,099
|
|
$
103,749
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
March
31,
|
|
December
31,
|
|
|
(In
thousands)
|
|
2023
|
|
2022
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
61,060
|
|
(174,668)
|
|
(58,155)
|
|
|
Income tax expense
(benefit)
|
|
23,015
|
|
13,671
|
|
26,161
|
|
|
Income (loss) from
continuing operations before income taxes
|
|
84,075
|
|
(160,997)
|
|
(31,994)
|
|
|
Investment (income)
loss
|
|
(9,866)
|
|
(163)
|
|
(9,194)
|
|
|
Interest
expense
|
|
45,141
|
|
46,910
|
|
44,245
|
|
|
Other, net
|
|
(42,375)
|
|
80,401
|
|
58,124
|
|
|
Adjusted operating
income (loss) (1)
|
|
76,975
|
|
(33,849)
|
|
61,181
|
|
|
Depreciation and
amortization
|
|
163,031
|
|
164,359
|
|
168,841
|
|
|
Adjusted EBITDA
(2)
|
|
$
240,006
|
|
$
130,510
|
|
$
230,022
|
|
|
|
|
|
|
|
|
|
|
(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)
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
(In
thousands)
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
$
2,562,327
|
|
$
2,537,540
|
|
|
Less: Cash and
short-term investments
|
|
475,732
|
|
452,315
|
|
|
Net Debt
|
|
$
2,086,595
|
|
$
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
|
|
|
|
March
31,
|
|
December
31,
|
|
|
(In
thousands)
|
|
2023
|
|
2022
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
154,050
|
|
41,354
|
|
$
199,989
|
|
|
Add: Capital
expenditures, net of proceeds from sales of assets
|
|
(116,752)
|
|
(80,587)
|
|
(98,682)
|
|
|
|
|
|
|
|
|
|
|
Adjusted free cash
flow
|
|
$
37,298
|
|
$
(39,233)
|
|
$
101,307
|
|
|
|
|
|
|
|
|
|
|
Adjusted free cash flow
represents net cash provided by operating activities less cash used
for capital expenditures, net of proceeds from sales of
assets. Management believes that adjusted free cash flow is
an important liquidity measure for the company and that it is
useful to investors and management as a measure of the company's
ability to generate cash flow, after reinvesting in the company for
future growth, that could be available for paying down debt or
other financing cash flows, such as dividends to
shareholders. Adjusted free cash flow does not represent the
residual cash flow available for discretionary expenditures.
Adjusted free cash flow is a non-GAAP financial measure that should
be considered in addition to, not as a substitute for or superior
to, cash flow from operations reported in accordance with
GAAP.
|
View original
content:https://www.prnewswire.com/news-releases/nabors-announces-first-quarter-2023-results-301805915.html
SOURCE Nabors Industries Ltd.
