HAMILTON, Bermuda, Feb. 8, 2022 /PRNewswire/ -- Nabors Industries
Ltd. ("Nabors" or the "Company") (NYSE: NBR) today reported
fourth quarter 2021 operating revenues of $544 million, compared to operating revenues of
$524 million in the third quarter of
2021. The net loss from continuing operations attributable to
Nabors shareholders for the quarter was $114
million, or $14.60 per share.
This compares to a loss of $122
million, or $15.79 per share
in the prior quarter. Fourth quarter adjusted EBITDA was
$132 million compared to $125 million in the third quarter.
Anthony G. Petrello, Nabors
Chairman, CEO and President, commented, "With our fourth quarter
financial results, we closed the year 2021 on a high note.
Quarterly EBITDA increased by 5% sequentially even including the
impact of the significant early termination revenue booked in the
third quarter. On a normalized basis, all of our segments had
strong growth, with U.S. Drilling, Drilling Solutions and Rig
Technologies leading the way.
"Our Lower 48 activity and pricing surged ahead, with leading
edge dayrates improving by as much as $4,000 per day toward the end of the fourth
quarter. In the quarter, the contribution from our Drilling
Solutions segment accounted for 15% of the Company's total EBITDA.
This proportion sets a new record high since the formation of NDS
in 2016. When combined with Rig Technologies, these two technology
businesses accounted for 18% of our total EBITDA. This contribution
demonstrates the scale and market acceptance of our
industry-leading innovation. Our International segment added rigs
toward the end of the fourth quarter and positioned itself for a
strong 2022 as we continue to deploy rigs in Saudi Arabia and Latin America.
"The backdrop for our performance was the constructive commodity
price environment in the fourth quarter, with WTI remaining above
the $65 mark. Since the fears
surrounding the impact of the Omicron variant began to subside in
early December, oil prices have increased steadily and have
recently exceeded $90. Oilfield
activity has strengthened, and in turn, rig dayrates have improved
while margins are beginning to widen. Looking through the balance
of 2022, we are optimistic that operators will respond to the
favorable commodity environment with higher drilling activity."
Consolidated and Segment Results
The U.S. Drilling segment reported $69.2
million in adjusted EBITDA for the fourth quarter of 2021,
an 11% increase from the prior quarter. Nabors' average Lower 48
rig count, at 75, increased by more than seven rigs, or 11%.
Average daily margins in the Lower 48 were $7,161, an increase of $136 from the prior quarter. The U.S. Drilling
segment's rig count currently stands at 90, with 83 rigs working in
the Lower 48.
International Drilling adjusted EBITDA decreased sequentially by
4%, to $73.2 million. Excluding the
prior quarter's $8 million gain from
early termination revenue, International adjusted EBITDA increased
by 7%. Rig count averaged 71 rigs, up four rigs from the third
quarter. This improvement was driven primarily by activity
increases across markets in Latin
America and by the reactivation of temporarily idled rigs in
Saudi Arabia. Average margin per
day was $13,172, in line with the
prior quarter, excluding the impact of the early termination
revenue.
In Drilling Solutions, adjusted EBITDA increased by 25% to
$19.6 million, driven by growth in
the Company's performance drilling software in the U.S. and casing
running services in the international markets. Gross margin for
this segment exceeded 50%.
In Rig Technologies, adjusted EBITDA increased to $3.8 million in the fourth quarter, up from
$3.0 million in the third quarter.
Higher aftermarket revenues were the primary driver of this
increase.
Free Cash Flow and Capital Discipline
Free cash flow totaled $50 million
in the fourth quarter, despite a surge in revenue toward the end of
the fourth quarter that increased accounts receivable
significantly. For the full year 2021, the Company generated free
cash flow of $312 million.
Capital expenditures were $64
million, including $11 million
for the SANAD newbuild rigs. For the full year 2021, capital
expenditures totaled $244 million, of
which the SANAD newbuilds accounted for $69
million. For the full year 2022, total capital expenditures
of approximately $380 million are
expected. This amount includes $150
million for SANAD's newbuild rig program. This amount also
includes approximately $230 million
supporting Nabors' existing global operations, and is essentially
in line with the expected increase in the number of working
rigs.
The Company's year-end net debt was $2,271 million, a reduction of $32 million in the fourth quarter. For the full
year, net debt decreased by $216
million. During the year, SANAD distributed a total of
$118 million dollars to its
shareholders, $18 million of which
was distributed in the fourth quarter.
During the fourth quarter, the Company completed the placement
of $700 million of Senior Priority
Guaranteed Notes due in 2027. This transaction was followed by the
replacement in January of the Company's Revolving Credit Facility,
which was scheduled to mature in 2023, with a new facility maturing
in 2026.
Outlook for the First Quarter of 2022
Nabors expects the following quarterly metrics:
U.S. Drilling
- An increase in average Lower 48 rig count of 9 - 10 rigs over
the fourth quarter average
- Lower 48 daily drilling margin of $7,500 - $7,600,
reflecting higher dayrates driven by increasing utilization
levels
- An improvement in average Alaska rig count of approximately one rig over
the fourth quarter level, while the quarterly average U.S. Offshore
rig count remains in line with the fourth quarter average. The U.S.
Offshore business is expected to be impacted by
recertification-related downtime on one of the rigs
International
- Average rig count in line with the fourth quarter, with rig
additions expected in subsequent quarters of 2022
- Daily drilling margin of approximately $13,000
Drilling Solutions
- Adjusted EBITDA approximately equal to the fourth quarter
level
Rig Technologies
- Adjusted EBITDA of breakeven or higher
Capital Expenditures
- Capital expenditures of $95
million to $100 million, with
approximately $35 million for SANAD's
newbuild rigs
William Restrepo, Nabors CFO,
stated, "During this last quarter, as has been the case for the
last couple of years, Nabors continued to lead the industry in
operational performance in the U.S. and internationally. Our daily
drilling margins have outperformed in the Lower 48 and our industry
leading consolidated EBITDA has continued its steady increase since
it bottomed last year. We remain the leader in technology and
innovation as measured by our Drilling Solutions margins and
customer penetration.
"Our performance in the fourth quarter enabled us to continue
generating free cash flow and reducing our net debt. The robust
market environment entering 2022 should allow us to make additional
progress on our long-term goals as we move through the year.
"The completion of the two recent financing transactions,
totaling over a billion dollars, materially reduces our near-term
debt maturities and extends our liquidity runway. With the lower
amount of debt coming due through 2024, we intend to address those
maturities with free cash flow. With the closing of the new credit
facility, we have increased our Senior Priority Guaranteed Note
capacity to more than $400 million.
Together with our Priority Guaranteed Note capacity, we have nearly
$1 billion available for future debt
refinancing."
Mr. Petrello added, "We are pleased with our operational and
financial accomplishments in the fourth quarter. We made
significant improvements in our financial metrics in 2021. These
improvements have increased our financial flexibility, and we see a
path to further delevering in the future.
"Also during 2021, we made significant progress on our
Sustainability goals. We reduced our field-level Lower 48 GHG
emissions intensity by 10%, doubling our annual target. For 2022,
we are targeting further reductions, as we experience increasing
interest from our stakeholders to work with our customers toward
net zero emissions. Our safety performance, measured by TRIR, set
another all-time record. And we deployed the industry's first
fully-automated land rig, R801, which removes rig staff from harm's
way during drilling operations. The systems and equipment installed
on this rig, which can be employed on other Nabors rigs as well as
those of third-party contractors, creates a path for existing rigs
to benefit from a significant technology upgrade without requiring
a newbuild. A further benefit is an expansion in the available
talent pool able to work on our rigs.
"Last year we made additional advances in our efforts supporting
the energy transition. We completed investments in three geothermal
companies, all with potentially disruptive technology. We made
headway on our own initiatives in fuel management, energy storage,
hydrogen, and carbon capture. And we launched Nabors Energy
Transition Corp. (NYSE: NETC), a special purpose acquisition
company focused on opportunities in the energy transition, which
completed its initial public offering in November."
Mr. Petrello concluded, "As we look into 2022, we are optimistic
that industry fundamentals will improve consistent with a
constructive commodity price outlook. Nabors is well positioned to
take advantage of an expanding market, with our highly skilled
workforce and our unmatched rig fleet. We have the broadest, most
impactful portfolio of digital automation technology in the
drilling sector. There are tremendous opportunities to apply our
core strengths to extend our leadership position in drilling
technology, while enabling the responsible production of
hydrocarbons. With our own improving financial position and our
technology and innovation capabilities, we are ideally placed to
generate value across our stakeholder base."
About Nabors Industries
Nabors Industries (NYSE: NBR) is a leading provider of advanced
technology for the energy industry. With operations in more than 15
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,
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, 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
|
|
Year
Ended
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
(In thousands,
except per share amounts)
|
|
2021
|
|
2020
|
|
2021
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
Revenues and other
income:
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues
|
|
$
543,539
|
|
$
443,396
|
|
$
524,165
|
|
$
2,017,548
|
|
$
2,134,043
|
Investment income
(loss)
|
|
156
|
|
3,342
|
|
200
|
|
1,557
|
|
1,438
|
Total revenues and
other income
|
|
543,695
|
|
446,738
|
|
524,365
|
|
2,019,105
|
|
2,135,481
|
|
|
|
|
|
|
|
|
|
|
|
Costs and other
deductions:
|
|
|
|
|
|
|
|
|
|
|
Direct
costs
|
|
347,238
|
|
274,278
|
|
336,538
|
|
1,286,896
|
|
1,333,072
|
General and
administrative expenses
|
|
54,422
|
|
53,719
|
|
52,897
|
|
213,559
|
|
203,515
|
Research and
engineering
|
|
10,223
|
|
7,285
|
|
9,498
|
|
35,153
|
|
33,564
|
Depreciation and
amortization
|
|
167,955
|
|
208,654
|
|
173,375
|
|
693,381
|
|
853,699
|
Interest
expense
|
|
44,570
|
|
47,943
|
|
42,217
|
|
171,476
|
|
206,274
|
Impairments and other
charges
|
|
1,312
|
|
71,328
|
|
3,068
|
|
66,731
|
|
410,631
|
Other, net
|
|
8,858
|
|
(151,377)
|
|
19,690
|
|
39,998
|
|
(199,707)
|
Total costs and other
deductions
|
|
634,578
|
|
511,830
|
|
637,283
|
|
2,507,194
|
|
2,841,048
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations before income taxes
|
|
(90,883)
|
|
(65,092)
|
|
(112,918)
|
|
(488,089)
|
|
(705,567)
|
Income tax expense
(benefit)
|
|
18,393
|
|
38,842
|
|
2,784
|
|
55,621
|
|
57,286
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations, net of tax
|
|
(109,276)
|
|
(103,934)
|
|
(115,702)
|
|
(543,710)
|
|
(762,853)
|
Income (loss) from
discontinued operations, net of tax
|
|
13
|
|
55
|
|
(20)
|
|
20
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
(109,263)
|
|
(103,879)
|
|
(115,722)
|
|
(543,690)
|
|
(762,846)
|
Less: Net (income)
loss attributable to noncontrolling interest
|
|
(4,414)
|
|
(4,358)
|
|
(6,778)
|
|
(25,582)
|
|
(42,795)
|
Net income (loss)
attributable to Nabors
|
|
(113,677)
|
|
(108,237)
|
|
(122,500)
|
|
(569,272)
|
|
(805,641)
|
Less: Preferred stock
dividend
|
|
-
|
|
(3,653)
|
|
-
|
|
(3,653)
|
|
(14,611)
|
Net income (loss)
attributable to Nabors common shareholders
|
$
(113,677)
|
|
$
(111,890)
|
|
$
(122,500)
|
|
$
(572,925)
|
|
$
(820,252)
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable
to Nabors common shareholders:
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
from continuing operations
|
|
$
(113,690)
|
|
$
(111,945)
|
|
$
(122,480)
|
|
$
(572,945)
|
|
$
(820,259)
|
Net income (loss)
from discontinued operations
|
|
13
|
|
55
|
|
(20)
|
|
20
|
|
7
|
Net income (loss)
attributable to Nabors common shareholders
|
$
(113,677)
|
|
$
(111,890)
|
|
$
(122,500)
|
|
$
(572,925)
|
|
$
(820,252)
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (losses) per
share:
|
|
|
|
|
|
|
|
|
|
|
Basic from continuing
operations
|
|
$
(14.60)
|
|
$
(16.46)
|
|
$
(15.79)
|
|
$
(76.58)
|
|
$
(118.69)
|
Basic from
discontinued operations
|
|
-
|
|
0.01
|
|
-
|
|
-
|
|
-
|
Total
Basic
|
|
$
(14.60)
|
|
$
(16.45)
|
|
$
(15.79)
|
|
$
(76.58)
|
|
$
(118.69)
|
|
|
|
|
|
|
|
|
|
|
|
Diluted from
continuing operations
|
|
$
(14.60)
|
|
$
(16.46)
|
|
$
(15.79)
|
|
$
(76.58)
|
|
$
(118.69)
|
Diluted from
discontinued operations
|
|
-
|
|
0.01
|
|
-
|
|
-
|
|
-
|
Total
Diluted
|
|
$
(14.60)
|
|
$
(16.45)
|
|
$
(15.79)
|
|
$
(76.58)
|
|
$
(118.69)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
7,950
|
|
7,067
|
|
7,907
|
|
7,605
|
|
7,059
|
Diluted
|
|
7,950
|
|
7,067
|
|
7,907
|
|
7,605
|
|
7,059
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
131,656
|
|
$
108,114
|
|
$
125,232
|
|
$
481,940
|
|
$
563,892
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss)
|
|
$
(36,299)
|
|
$
(100,540)
|
|
$
(48,143)
|
|
$
(211,441)
|
|
$
(289,807)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
|
(In
thousands)
|
|
2021
|
|
2021
|
|
2020
|
|
|
|
|
(Unaudited)
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and short-term
investments
|
|
$
991,488
|
|
$
771,884
|
|
$
481,746
|
|
|
Accounts receivable,
net
|
|
287,572
|
|
282,726
|
|
362,977
|
|
|
Assets held for
sale
|
|
16,561
|
|
16,785
|
|
16,562
|
|
|
Other current
assets
|
|
222,188
|
|
251,232
|
|
270,180
|
|
|
Total current
assets
|
|
1,517,809
|
|
1,322,627
|
|
1,131,465
|
|
|
Property, plant and
equipment, net
|
|
3,332,498
|
|
3,443,737
|
|
3,985,707
|
|
|
Other long-term
assets
|
|
675,057
|
|
408,462
|
|
386,256
|
|
|
Total assets
|
|
$
5,525,364
|
|
$
5,174,826
|
|
$
5,503,428
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Current portion of
debt
|
|
$
-
|
|
$
-
|
|
$
-
|
|
|
Other current
liabilities
|
|
525,228
|
|
516,088
|
|
515,469
|
|
|
Total current
liabilities
|
|
525,228
|
|
516,088
|
|
515,469
|
|
|
Long-term
debt
|
|
3,262,795
|
|
3,075,520
|
|
2,968,701
|
|
|
Other long-term
liabilities
|
|
343,120
|
|
348,542
|
|
319,610
|
|
|
Total liabilities
|
|
4,131,143
|
|
3,940,150
|
|
3,803,780
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interest in subsidiary
|
|
675,283
|
|
400,853
|
|
442,840
|
|
|
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
590,656
|
|
709,021
|
|
1,151,384
|
|
|
Noncontrolling
interest
|
|
128,282
|
|
124,802
|
|
105,424
|
|
|
Total equity
|
|
718,938
|
|
833,823
|
|
1,256,808
|
|
|
Total liabilities and
equity
|
|
$
5,525,364
|
|
$
5,174,826
|
|
$
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
|
|
Year
Ended
|
|
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
(In thousands,
except rig activity)
|
|
2021
|
|
2020
|
|
2021
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Drilling
|
|
$
192,310
|
|
$
134,129
|
|
$
173,441
|
|
$
669,656
|
|
$
713,057
|
|
|
Canada
Drilling
|
|
-
|
|
14,824
|
|
6,034
|
|
39,336
|
|
54,753
|
|
|
International
Drilling
|
|
271,069
|
|
245,093
|
|
270,008
|
|
1,043,197
|
|
1,131,673
|
|
|
Drilling
Solutions
|
|
51,776
|
|
31,997
|
|
45,880
|
|
172,473
|
|
149,834
|
|
|
Rig Technologies
(1)
|
|
46,920
|
|
27,357
|
|
42,053
|
|
149,273
|
|
131,555
|
|
|
Other reconciling
items (2)
|
|
(18,536)
|
|
(10,004)
|
|
(13,251)
|
|
(56,387)
|
|
(46,829)
|
|
|
Total operating
revenues
|
|
$
543,539
|
|
$
443,396
|
|
$
524,165
|
|
$
2,017,548
|
|
$
2,134,043
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA:
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Drilling
|
|
$
69,249
|
|
$
62,162
|
|
$
62,132
|
|
$
249,951
|
|
$
302,150
|
|
|
Canada
Drilling
|
|
223
|
|
3,501
|
|
1,607
|
|
14,497
|
|
13,018
|
|
|
International
Drilling
|
|
73,168
|
|
64,490
|
|
76,211
|
|
283,312
|
|
321,394
|
|
|
Drilling
Solutions
|
|
19,559
|
|
10,262
|
|
15,620
|
|
59,433
|
|
46,241
|
|
|
Rig Technologies
(1)
|
|
3,842
|
|
511
|
|
3,005
|
|
8,349
|
|
1,818
|
|
|
Other reconciling
items (4)
|
|
(34,385)
|
|
(32,812)
|
|
(33,343)
|
|
(133,601)
|
|
(120,729)
|
|
|
Total adjusted
EBITDA
|
|
$
131,656
|
|
$
108,114
|
|
$
125,232
|
|
$
481,940
|
|
$
563,892
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss): (5)
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Drilling
|
|
$
(12,587)
|
|
$
(26,215)
|
|
$
(19,700)
|
|
$
(76,492)
|
|
$
(96,176)
|
|
|
Canada
Drilling
|
|
223
|
|
(2,501)
|
|
1,371
|
|
2,893
|
|
(11,766)
|
|
|
International
Drilling
|
|
(5,749)
|
|
(35,462)
|
|
(7,297)
|
|
(40,117)
|
|
(56,205)
|
|
|
Drilling
Solutions
|
|
12,930
|
|
(2,532)
|
|
8,607
|
|
32,771
|
|
6,167
|
|
|
Rig Technologies
(1)
|
|
1,493
|
|
(2,031)
|
|
1,926
|
|
158
|
|
(13,481)
|
|
|
Other reconciling
items (4)
|
|
(32,609)
|
|
(31,799)
|
|
(33,050)
|
|
(130,654)
|
|
(118,346)
|
|
|
Total adjusted
operating income (loss)
|
|
$
(36,299)
|
|
$
(100,540)
|
|
$
(48,143)
|
|
$
(211,441)
|
|
$
(289,807)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rig
activity:
|
|
|
|
|
|
|
|
|
|
|
|
Average Rigs Working:
(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
Lower 48
|
|
74.7
|
|
53.6
|
|
67.6
|
|
65.6
|
|
61.9
|
|
|
Other US
|
|
6.0
|
|
5.0
|
|
5.0
|
|
5.3
|
|
6.0
|
|
|
U.S.
Drilling
|
|
80.7
|
|
58.6
|
|
72.6
|
|
70.9
|
|
67.9
|
|
|
Canada
Drilling
|
|
-
|
|
9.7
|
|
4.1
|
|
6.5
|
|
9.0
|
|
|
International
Drilling
|
|
71.4
|
|
62.6
|
|
67.0
|
|
67.9
|
|
75.7
|
|
|
Total average rigs
working
|
|
152.1
|
|
130.9
|
|
143.7
|
|
145.3
|
|
152.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Daily Rig
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Lower 48
|
|
$
21,739
|
|
$
20,949
|
|
$
21,312
|
|
$
21,436
|
|
$
24,212
|
|
|
Other US
|
|
77,833
|
|
66,841
|
|
88,175
|
|
81,641
|
|
74,264
|
|
|
U.S. Drilling
(8)
|
|
25,911
|
|
24,862
|
|
25,940
|
|
25,909
|
|
28,660
|
|
|
Canada
Drilling
|
|
-
|
|
16,600
|
|
16,056
|
|
16,693
|
|
16,616
|
|
|
International
Drilling
|
|
41,239
|
|
42,551
|
|
43,789
|
|
42,100
|
|
40,827
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Daily Rig Margin:
(7)
|
|
|
|
|
|
|
|
|
|
|
|
|
Lower 48
|
|
$
7,161
|
|
$
9,541
|
|
$
7,025
|
|
$
7,367
|
|
$
9,872
|
|
|
Other US
|
|
47,734
|
|
44,811
|
|
53,947
|
|
50,953
|
|
45,642
|
|
|
U.S. Drilling
(8)
|
|
10,179
|
|
12,548
|
|
10,272
|
|
10,605
|
|
13,051
|
|
|
Canada
Drilling
|
|
-
|
|
4,633
|
|
5,654
|
|
6,927
|
|
4,813
|
|
|
International
Drilling
|
|
13,172
|
|
13,486
|
|
14,375
|
|
13,474
|
|
13,454
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
Year
Ended
|
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
(In
thousands)
|
|
2021
|
|
2020
|
|
2021
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
131,656
|
|
$
108,114
|
|
$
125,232
|
|
$
481,940
|
|
$
563,892
|
|
Depreciation and
amortization
|
|
(167,955)
|
|
(208,654)
|
|
(173,375)
|
|
(693,381)
|
|
(853,699)
|
|
Adjusted operating
income (loss)
|
|
(36,299)
|
|
(100,540)
|
|
(48,143)
|
|
(211,441)
|
|
(289,807)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment income
(loss)
|
|
156
|
|
3,342
|
|
200
|
|
1,557
|
|
1,438
|
|
Interest
expense
|
|
(44,570)
|
|
(47,943)
|
|
(42,217)
|
|
(171,476)
|
|
(206,274)
|
|
Impairments and other
charges
|
|
(1,312)
|
|
(71,328)
|
|
(3,068)
|
|
(66,731)
|
|
(410,631)
|
|
Other, net
|
|
(8,858)
|
|
151,377
|
|
(19,690)
|
|
(39,998)
|
|
199,707
|
|
Income (loss) from
continuing operations before income taxes
|
|
$
(90,883)
|
|
$
(65,092)
|
|
$
(112,918)
|
|
$
(488,089)
|
|
$
(705,567)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
RECONCILIATION OF
NET DEBT TO TOTAL DEBT
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
|
(In
thousands)
|
|
2021
|
|
2021
|
|
2020
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current portion of
debt
|
|
$
-
|
|
$
-
|
|
$
-
|
|
|
Long-term
debt
|
|
3,262,795
|
|
3,075,520
|
|
2,968,701
|
|
|
Total Debt
|
|
3,262,795
|
|
3,075,520
|
|
2,968,701
|
|
|
Less: Cash and
short-term investments
|
|
991,488
|
|
771,884
|
|
481,746
|
|
|
Net Debt
|
|
$
2,271,307
|
|
$
2,303,636
|
|
$
2,486,955
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
RECONCILIATION OF
FREE CASH FLOW TO
|
NET CASH PROVIDED
BY OPERATING ACTIVITIES
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
(In
thousands)
|
|
2021
|
|
2021
|
|
2021
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
102,293
|
|
$
113,280
|
|
$
428,776
|
|
Net cash provided by
(used for) investing activities
|
|
(52,137)
|
|
19,831
|
|
(117,225)
|
|
Free cash
flow
|
|
$
50,156
|
|
$
133,111
|
|
$
311,551
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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-fourth-quarter-2021-results-301478078.html
SOURCE Nabors Industries Ltd.