Nabors Announces Second Quarter 2024 Results
Highlights
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Nabors Lower 48 rigs continued to set the standard for performance on challenging wells. A major operator in theDelaware Basin drilled its fastest four-mile lateral, utilizing a Nabors PACE®-X rig and a package of NDS technology. A second large operator, in the Eagle Ford, drilled a single-run, four-mile lateral in 14 days, using a Nabors PACE®-M1000 rig. - A large operator in the Bakken committed to Nabors' full automation suite across all of its rigs, including SmartDRILL™ and SmartSLIDE®. With these installations, NDS will reach record penetration of its automated directional drilling solution on Nabors rigs.
- A major operator committed funding to support the next generation of Nabors' RZR red zone robotics drillfloor automation module. This includes an installation on one of this client's rigs in the Permian, and the opportunity to scale up from there.
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Kuwait Oil Company formally awarded multiyear contracts for three high-specification rigs. The Company plans to deploy existing in-country rigs for this opportunity.
"Rig count continued to grow in our International segment, as we started up previously awarded rigs. With a substantial number of additional rig awards already in hand, across the
"Stable pricing supported our results in the Lower 48 market. Our average rig count decreased somewhat compared to the prior quarter, essentially in line with our expectation. Activity declines in the Northeast and
Segment Results
The
International Drilling adjusted EBITDA totaled
Drilling Solutions adjusted EBITDA was
In Rig Technologies, adjusted EBITDA increased to
Adjusted Free Cash Flow
Adjusted free cash flow was
"In the
"We achieved significant milestones to solidify our capital structure. During the second quarter, we increased the amount on our revolving credit facility and extended it until 2029. More recently, we placed
"The strong results drove our cash generation. Adjusted free cash flow for the first half of the year reached
Outlook
Nabors expects the following metrics for the third quarter of 2024:
- Lower 48 average rig count of approximately 70 rigs
- Lower 48 daily adjusted gross margin of
$15,100-$15,200 -
Alaska andGulf of Mexico combined adjusted EBITDA of approximately$20 million
International
- Average rig count up by approximately one rig versus the second quarter average
- Daily adjusted gross margin of
$16,200-$16,300
Drilling Solutions
- Adjusted EBITDA up sequentially by approximately 6%
Rig Technologies
- Adjusted EBITDA up sequentially by approximately
$1.5 million
Capital Expenditures
- Capital expenditures of
$190-$200 million , with$80-$85 million for the newbuilds inSaudi Arabia - Full-year capital expenditures of approximately
$590 million , including funding for the recent rig awards
Adjusted Free Cash Flow
- Full-year adjusted free cash flow of
$100-$200 million
About
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
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
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:
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) |
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(Unaudited) |
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Three Months Ended |
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Six Months Ended |
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(In thousands, except per share amounts) |
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2024 |
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2023 |
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2024 |
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2024 |
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2023 |
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Revenues and other income: |
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Operating revenues |
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$ 734,798 |
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$ 767,067 |
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$ 733,704 |
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$ 1,468,502 |
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$ 1,546,206 |
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Investment income (loss) |
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8,181 |
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11,743 |
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10,201 |
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18,382 |
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21,609 |
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Total revenues and other income |
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742,979 |
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778,810 |
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743,905 |
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1,486,884 |
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1,567,815 |
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Costs and other deductions: |
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Direct costs |
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440,225 |
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455,531 |
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437,077 |
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877,302 |
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917,860 |
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General and administrative expenses |
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62,154 |
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63,232 |
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61,751 |
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123,905 |
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124,962 |
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Research and engineering |
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14,362 |
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13,281 |
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13,863 |
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28,225 |
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28,355 |
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Depreciation and amortization |
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160,141 |
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159,698 |
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157,685 |
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317,826 |
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322,729 |
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Interest expense |
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51,493 |
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46,164 |
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50,379 |
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101,872 |
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91,305 |
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Other, net |
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12,079 |
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(1,775) |
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16,108 |
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28,187 |
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(44,150) |
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Total costs and other deductions |
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740,454 |
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736,131 |
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736,863 |
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1,477,317 |
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1,441,061 |
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Income (loss) before income taxes |
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2,525 |
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42,679 |
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7,042 |
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9,567 |
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126,754 |
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Income tax expense (benefit) |
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15,554 |
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26,448 |
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16,044 |
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31,598 |
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49,463 |
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Net income (loss) |
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(13,029) |
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16,231 |
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(9,002) |
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(22,031) |
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77,291 |
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Less: Net (income) loss attributable to noncontrolling interest |
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(19,226) |
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(11,620) |
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(25,331) |
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(44,557) |
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(23,456) |
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Net income (loss) attributable to Nabors |
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$ (32,255) |
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$ 4,611 |
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$ (34,333) |
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$ (66,588) |
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$ 53,835 |
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Earnings (losses) per share: |
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Basic |
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$ (4.29) |
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$ (0.31) |
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$ (4.54) |
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$ (8.83) |
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$ 4.05 |
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Diluted |
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$ (4.29) |
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$ (0.31) |
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$ (4.54) |
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$ (8.83) |
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$ 3.79 |
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Weighted-average number of common shares outstanding: |
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Basic |
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9,207 |
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9,195 |
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9,176 |
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9,191 |
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9,178 |
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Diluted |
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9,207 |
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9,195 |
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9,176 |
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9,191 |
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10,141 |
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Adjusted EBITDA |
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$ 218,057 |
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$ 235,023 |
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$ 221,013 |
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$ 439,070 |
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$ 475,029 |
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Adjusted operating income (loss) |
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$ 57,916 |
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$ 75,325 |
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$ 63,328 |
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$ 121,244 |
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$ 152,300 |
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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(Unaudited) |
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(In thousands) |
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2024 |
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2024 |
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2023 |
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ASSETS |
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Current assets: |
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Cash and short-term investments |
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$ 473,608 |
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$ 425,560 |
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$ 1,070,178 |
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Accounts receivable, net |
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368,550 |
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416,873 |
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347,837 |
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Other current assets |
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235,632 |
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231,926 |
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227,663 |
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Total current assets |
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1,077,790 |
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1,074,359 |
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1,645,678 |
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Property, plant and equipment, net |
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2,813,148 |
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2,841,294 |
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2,898,728 |
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Other long-term assets |
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724,755 |
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729,319 |
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733,559 |
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Total assets |
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$ 4,615,693 |
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$ 4,644,972 |
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$ 5,277,965 |
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LIABILITIES AND EQUITY |
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Current liabilities: |
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Current debt |
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$ - |
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$ - |
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$ 629,621 |
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Trade accounts payable |
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331,468 |
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319,436 |
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294,442 |
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Other current liabilities |
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259,454 |
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282,982 |
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289,918 |
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Total current liabilities |
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590,922 |
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602,418 |
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1,213,981 |
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Long-term debt |
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2,514,169 |
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2,512,175 |
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2,511,519 |
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Other long-term liabilities |
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247,587 |
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256,956 |
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271,380 |
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Total liabilities |
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3,352,678 |
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3,371,549 |
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3,996,880 |
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Redeemable noncontrolling interest in subsidiary |
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761,415 |
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750,600 |
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739,075 |
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Equity: |
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Shareholders' equity |
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250,371 |
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286,338 |
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326,614 |
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Noncontrolling interest |
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251,229 |
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236,485 |
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215,396 |
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Total equity |
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501,600 |
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522,823 |
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542,010 |
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Total liabilities and equity |
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$ 4,615,693 |
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$ 4,644,972 |
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$ 5,277,965 |
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SEGMENT REPORTING |
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(Unaudited) |
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The following tables set forth certain information with respect to our reportable segments and rig activity: |
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Three Months Ended |
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Six Months Ended |
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(In thousands, except rig activity) |
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2024 |
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2023 |
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2024 |
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2024 |
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2023 |
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Operating revenues: |
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$ 259,723 |
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$ 314,830 |
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$ 271,989 |
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$ 531,712 |
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$ 665,482 |
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International Drilling |
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356,733 |
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337,650 |
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349,359 |
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706,092 |
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657,698 |
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Drilling Solutions |
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82,961 |
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76,855 |
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75,574 |
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158,535 |
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151,898 |
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Rig Technologies (1) |
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49,546 |
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63,565 |
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50,156 |
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99,702 |
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122,044 |
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Other reconciling items (2) |
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(14,165) |
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(25,833) |
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(13,374) |
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(27,539) |
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(50,916) |
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Total operating revenues |
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$ 734,798 |
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$ 767,067 |
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$ 733,704 |
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$ 1,468,502 |
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$ 1,546,206 |
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Adjusted EBITDA: (3) |
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$ 114,020 |
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$ 141,446 |
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$ 120,403 |
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$ 234,423 |
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$ 297,935 |
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International Drilling |
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106,371 |
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98,331 |
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102,498 |
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208,869 |
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186,939 |
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Drilling Solutions |
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32,468 |
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32,756 |
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31,787 |
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64,255 |
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64,670 |
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Rig Technologies (1) |
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7,330 |
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6,408 |
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6,801 |
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14,131 |
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11,362 |
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Other reconciling items (4) |
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(42,132) |
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(43,918) |
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(40,476) |
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(82,608) |
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(85,877) |
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Total adjusted EBITDA |
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$ 218,057 |
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$ 235,023 |
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$ 221,013 |
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$ 439,070 |
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$ 475,029 |
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Adjusted operating income (loss): (5) |
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$ 45,085 |
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$ 75,408 |
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$ 50,529 |
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$ 95,614 |
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$ 161,277 |
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International Drilling |
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23,672 |
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10,407 |
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22,476 |
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46,148 |
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12,364 |
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Drilling Solutions |
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27,319 |
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28,351 |
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26,893 |
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54,212 |
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55,489 |
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Rig Technologies (1) |
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4,860 |
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5,052 |
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4,209 |
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9,069 |
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8,746 |
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Other reconciling items (4) |
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(43,020) |
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(43,893) |
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(40,779) |
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(83,799) |
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(85,576) |
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Total adjusted operating income (loss) |
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$ 57,916 |
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$ 75,325 |
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$ 63,328 |
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$ 121,244 |
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$ 152,300 |
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Rig activity: |
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Average Rigs Working: (7) |
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Lower 48 |
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68.7 |
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81.6 |
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71.9 |
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70.3 |
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87.4 |
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Other US |
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6.3 |
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7.0 |
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6.8 |
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6.5 |
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7.0 |
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75.0 |
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88.6 |
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78.7 |
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76.8 |
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94.4 |
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International Drilling |
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84.4 |
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77.1 |
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81.0 |
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82.7 |
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76.8 |
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Total average rigs working |
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159.4 |
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165.7 |
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159.7 |
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159.5 |
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171.2 |
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Daily Rig Revenue: (6),(8) |
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Lower 48 |
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$ 35,334 |
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$ 36,751 |
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$ 35,468 |
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$ 35,402 |
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$ 36,593 |
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Other US |
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68,008 |
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65,860 |
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64,402 |
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66,135 |
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68,263 |
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38,076 |
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39,049 |
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37,968 |
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38,020 |
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38,940 |
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International Drilling |
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46,469 |
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48,106 |
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47,384 |
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46,917 |
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47,319 |
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Daily Adjusted Gross Margin: (6),(9) |
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Lower 48 |
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$ 15,598 |
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$ 16,890 |
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$ 16,011 |
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$ 15,809 |
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$ 16,784 |
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Other US |
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38,781 |
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35,932 |
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35,184 |
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36,912 |
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36,520 |
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17,544 |
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18,394 |
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17,667 |
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17,607 |
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18,246 |
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International Drilling |
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16,050 |
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16,276 |
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16,061 |
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16,056 |
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15,754 |
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(1) |
Includes our oilfield equipment manufacturing activities. |
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(2) |
Represents the elimination of inter-segment transactions related to our Rig Technologies operating segment. |
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(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)". |
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(4) |
Represents the elimination of inter-segment transactions and unallocated corporate expenses. |
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(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)". |
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(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. |
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(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. |
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(8) |
Daily rig revenue represents operating revenue, divided by the total number of revenue days during the quarter. |
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(9) |
Daily adjusted gross margin represents operating revenue less direct costs, divided by the total number of rig revenue days during the quarter. |
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(10) |
The |
|
|
|
|
|
|
||||||||||||||
Reconciliation of Earnings per Share |
|
||||||||||||||
(Unaudited) |
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|||||||||||
|
|
|
|
|
|
|
|||||||||
(in thousands, except per share amounts) |
2024 |
|
2023 |
|
2024 |
|
2024 |
|
2023 |
|
|||||
|
|
||||||||||||||
BASIC EPS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) (numerator): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss), net of tax |
$ |
(13,029) |
|
$ |
16,231 |
|
$ |
(9,002) |
|
$ |
(22,031) |
|
$ |
77,291 |
|
Less: net (income) loss attributable to noncontrolling interest |
|
(19,226) |
|
|
(11,620) |
|
|
(25,331) |
|
|
(44,557) |
|
|
(23,456) |
|
Less: distributed and undistributed earnings allocated to unvested shareholders |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(1,869) |
|
Less: accrued distribution on redeemable noncontrolling interest in subsidiary |
|
(7,283) |
|
|
(7,436) |
|
|
(7,283) |
|
|
(14,566) |
|
|
(14,790) |
|
Numerator for basic earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income (loss), net of tax - basic |
$ |
(39,538) |
|
$ |
(2,825) |
|
$ |
(41,616) |
|
$ |
(81,154) |
|
$ |
37,176 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number of shares outstanding - basic |
|
9,207 |
|
|
9,195 |
|
|
9,176 |
|
|
9,191 |
|
|
9,178 |
|
Earnings (losses) per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Basic |
$ |
(4.29) |
|
$ |
(0.31) |
|
$ |
(4.54) |
|
$ |
(8.83) |
|
$ |
4.05 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED EPS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income (loss) from continuing operations, net of tax - basic |
$ |
(39,538) |
|
$ |
(2,825) |
|
$ |
(41,616) |
|
$ |
(81,154) |
|
$ |
37,176 |
|
Add: after tax interest expense of convertible notes |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,272 |
|
Add: effect of reallocating undistributed earnings of unvested shareholders |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
10 |
|
Adjusted income (loss), net of tax - diluted |
$ |
(39,538) |
|
$ |
(2,825) |
|
$ |
(41,616) |
|
$ |
(81,154) |
|
$ |
38,458 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number of shares outstanding - basic |
|
9,207 |
|
|
9,195 |
|
|
9,176 |
|
|
9,191 |
|
|
9,178 |
|
Add: if converted dilutive effect of convertible notes |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
918 |
|
Add: dilutive effect of potential common shares |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
45 |
|
Weighted-average number of shares outstanding - diluted |
|
9,207 |
|
|
9,195 |
|
|
9,176 |
|
|
9,191 |
|
|
10,141 |
|
Earnings (losses) per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Diluted |
$ |
(4.29) |
|
$ |
(0.31) |
|
$ |
(4.54) |
|
$ |
(8.83) |
|
$ |
3.79 |
|
|
|
||||||||||||
|
NON-GAAP FINANCIAL MEASURES |
||||||||||||
|
RECONCILIATION OF ADJUSTED EBITDA BY SEGMENT TO ADJUSTED OPERATING INCOME (LOSS) BY SEGMENT |
||||||||||||
|
(Unaudited) |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
||||||||||
|
|
|
Drilling |
|
International Drilling |
|
Drilling Solutions |
|
Rig Technologies |
|
Other reconciling items |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income (loss) |
|
$ 45,085 |
|
$ 23,672 |
|
$ 27,319 |
|
$ 4,860 |
|
$ (43,020) |
|
$ 57,916 |
|
Depreciation and amortization |
|
68,935 |
|
82,699 |
|
5,149 |
|
2,470 |
|
888 |
|
160,141 |
|
Adjusted EBITDA |
|
|
|
$ 106,371 |
|
$ 32,468 |
|
$ 7,330 |
|
$ (42,132) |
|
$ 218,057 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
||||||||||
|
|
|
Drilling |
|
International Drilling |
|
Drilling Solutions |
|
Rig Technologies |
|
Other reconciling items |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income (loss) |
|
$ 75,408 |
|
$ 10,407 |
|
$ 28,351 |
|
$ 5,052 |
|
$ (43,893) |
|
$ 75,325 |
|
Depreciation and amortization |
|
66,038 |
|
87,924 |
|
4,405 |
|
1,356 |
|
(25) |
|
159,698 |
|
Adjusted EBITDA |
|
|
|
$ 98,331 |
|
$ 32,756 |
|
$ 6,408 |
|
$ (43,918) |
|
$ 235,023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
||||||||||
|
|
|
Drilling |
|
International Drilling |
|
Drilling Solutions |
|
Rig Technologies |
|
Other reconciling items |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income (loss) |
|
$ 50,529 |
|
$ 22,476 |
|
$ 26,893 |
|
$ 4,209 |
|
$ (40,779) |
|
$ 63,328 |
|
Depreciation and amortization |
|
69,874 |
|
80,022 |
|
4,894 |
|
2,592 |
|
303 |
|
157,685 |
|
Adjusted EBITDA |
|
|
|
$ 102,498 |
|
$ 31,787 |
|
$ 6,801 |
|
$ (40,476) |
|
$ 221,013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
||||||||||
|
|
|
Drilling |
|
International Drilling |
|
Drilling Solutions |
|
Rig Technologies |
|
Other reconciling items |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income (loss) |
|
$ 95,614 |
|
$ 46,148 |
|
$ 54,212 |
|
$ 9,069 |
|
$ (83,799) |
|
$ 121,244 |
|
Depreciation and amortization |
|
138,809 |
|
162,721 |
|
10,043 |
|
5,062 |
|
1,191 |
|
317,826 |
|
Adjusted EBITDA |
|
|
|
$ 208,869 |
|
$ 64,255 |
|
$ 14,131 |
|
$ (82,608) |
|
$ 439,070 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
||||||||||
|
|
|
Drilling |
|
International Drilling |
|
Drilling Solutions |
|
Rig Technologies |
|
Other reconciling items |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income (loss) |
|
|
|
$ 12,364 |
|
$ 55,489 |
|
$ 8,746 |
|
$ (85,576) |
|
$ 152,300 |
|
Depreciation and amortization |
|
136,658 |
|
174,575 |
|
9,181 |
|
2,616 |
|
(301) |
|
322,729 |
|
Adjusted EBITDA |
|
|
|
$ 186,939 |
|
$ 64,670 |
|
$ 11,362 |
|
$ (85,877) |
|
$ 475,029 |
|
|||||||||||
NON-GAAP FINANCIAL MEASURES |
|||||||||||
RECONCILIATION OF ADJUSTED GROSS MARGIN BY SEGMENT TO ADJUSTED OPERATING INCOME (LOSS) BY SEGMENT |
|||||||||||
(Unaudited) |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
||||||
|
|
|
|
|
|
|
|
||||
(In thousands) |
|
2024 |
|
2023 |
|
2024 |
|
2024 |
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Lower 48 - |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income (loss) |
|
$ 32,841 |
|
$ 60,496 |
|
$ 39,264 |
|
$ 72,105 |
|
$ 134,567 |
|
Plus: General and administrative costs |
|
4,390 |
|
5,209 |
|
4,823 |
|
9,213 |
|
10,264 |
|
Plus: Research and engineering |
|
909 |
|
1,189 |
|
964 |
|
1,873 |
|
2,708 |
|
GAAP Gross Margin |
|
38,140 |
|
66,894 |
|
45,051 |
|
83,191 |
|
147,539 |
|
Plus: Depreciation and amortization |
|
59,332 |
|
58,533 |
|
59,733 |
|
119,065 |
|
118,041 |
|
Adjusted gross margin |
|
$ 97,472 |
|
$ 125,427 |
|
$ 104,784 |
|
$ 202,256 |
|
$ 265,580 |
|
|
|
|
|
|
|
|
|
|
|
|
Other - |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income (loss) |
|
$ 12,244 |
|
$ 14,912 |
|
$ 11,265 |
|
$ 23,509 |
|
$ 26,710 |
|
Plus: General and administrative costs |
|
306 |
|
323 |
|
325 |
|
631 |
|
668 |
|
Plus: Research and engineering |
|
45 |
|
132 |
|
47 |
|
92 |
|
259 |
|
GAAP Gross Margin |
|
12,595 |
|
15,367 |
|
11,637 |
|
24,232 |
|
27,637 |
|
Plus: Depreciation and amortization |
|
9,602 |
|
7,504 |
|
10,142 |
|
19,744 |
|
18,616 |
|
Adjusted gross margin |
|
$ 22,197 |
|
$ 22,871 |
|
$ 21,779 |
|
$ 43,976 |
|
$ 46,253 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income (loss) |
|
$ 45,085 |
|
$ 75,408 |
|
$ 50,529 |
|
$ 95,614 |
|
$ 161,277 |
|
Plus: General and administrative costs |
|
4,696 |
|
5,532 |
|
5,148 |
|
9,844 |
|
10,932 |
|
Plus: Research and engineering |
|
954 |
|
1,321 |
|
1,011 |
|
1,965 |
|
2,967 |
|
GAAP Gross Margin |
|
50,735 |
|
82,261 |
|
56,688 |
|
107,423 |
|
175,176 |
|
Plus: Depreciation and amortization |
|
68,934 |
|
66,037 |
|
69,875 |
|
138,809 |
|
136,657 |
|
Adjusted gross margin |
|
$ 119,669 |
|
$ 148,298 |
|
$ 126,563 |
|
$ 246,232 |
|
$ 311,833 |
|
|
|
|
|
|
|
|
|
|
|
|
International Drilling |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income (loss) |
|
$ 23,672 |
|
$ 10,407 |
|
$ 22,476 |
|
$ 46,148 |
|
$ 12,364 |
|
Plus: General and administrative costs |
|
15,434 |
|
14,089 |
|
14,415 |
|
29,849 |
|
28,424 |
|
Plus: Research and engineering |
|
1,404 |
|
1,821 |
|
1,508 |
|
2,912 |
|
3,606 |
|
GAAP Gross Margin |
|
40,510 |
|
26,317 |
|
38,399 |
|
78,909 |
|
44,394 |
|
Plus: Depreciation and amortization |
|
82,700 |
|
87,924 |
|
80,022 |
|
162,722 |
|
174,576 |
|
Adjusted gross margin |
|
$ 123,210 |
|
$ 114,241 |
|
$ 118,421 |
|
$ 241,631 |
|
$ 218,970 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted gross margin by segment represents adjusted operating income (loss) plus general and administrative costs, research and engineering costs and depreciation and amortization |
|
||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO NET INCOME (LOSS) |
||||||||||
(Unaudited) |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
||||||
|
|
|
|
|
|
|
||||
(In thousands) |
|
2024 |
|
2023 |
|
2024 |
|
2024 |
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ (13,029) |
|
$ 16,231 |
|
$ (9,002) |
|
$ (22,031) |
|
$ 77,291 |
Income tax expense (benefit) |
|
15,554 |
|
26,448 |
|
16,044 |
|
31,598 |
|
49,463 |
Income (loss) from continuing operations before income taxes |
|
2,525 |
|
42,679 |
|
7,042 |
|
9,567 |
|
126,754 |
Investment (income) loss |
|
(8,181) |
|
(11,743) |
|
(10,201) |
|
(18,382) |
|
(21,609) |
Interest expense |
|
51,493 |
|
46,164 |
|
50,379 |
|
101,872 |
|
91,305 |
Other, net |
|
12,079 |
|
(1,775) |
|
16,108 |
|
28,187 |
|
(44,150) |
Adjusted operating income (loss) (1) |
|
57,916 |
|
75,325 |
|
63,328 |
|
121,244 |
|
152,300 |
Depreciation and amortization |
|
160,141 |
|
159,698 |
|
157,685 |
|
317,826 |
|
322,729 |
Adjusted EBITDA (2) |
|
$ 218,057 |
|
$ 235,023 |
|
$ 221,013 |
|
$ 439,070 |
|
$ 475,029 |
|
|
|
|
|
|
|
|
|
|
|
(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. |
|
|
||||||
|
RECONCILIATION OF NET DEBT TO TOTAL DEBT |
||||||
|
(Unaudited) |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
|
2024 |
|
2024 |
|
2023 |
|
|
|
|
|
|
|
|
|
Current debt |
|
$ - |
|
$ - |
|
$ 629,621 |
|
Long-term debt |
|
2,514,169 |
|
2,512,175 |
|
2,511,519 |
|
Total Debt |
|
2,514,169 |
|
2,512,175 |
|
3,141,140 |
|
Less: Cash and short-term investments |
|
473,608 |
|
425,560 |
|
1,070,178 |
|
Net Debt |
|
$ 2,040,561 |
|
$ 2,086,615 |
|
$ 2,070,962 |
|
||||||
RECONCILIATION OF ADJUSTED FREE CASH FLOW TO |
||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES |
||||||
(Unaudited) |
||||||
|
|
|||||
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
||
|
|
|
|
|
|
|
(In thousands) |
|
2024 |
|
2024 |
|
2024 |
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
$ 181,659 |
|
$ 107,239 |
|
$ 288,898 |
Add: Capital expenditures, net of proceeds from sales of assets |
|
(125,010) |
|
(99,125) |
|
(224,135) |
|
|
|
|
|
|
|
Adjusted free cash flow |
|
$ 56,649 |
|
$ 8,114 |
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$ 64,763 |
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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-second-quarter-2024-results-302204506.html
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