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Nabors Announces Third Quarter 2021 Results

Oct 26, 2021

HAMILTON, Bermuda, Oct. 26, 2021 /PRNewswire/ -- Nabors Industries Ltd. ("Nabors" or the "Company") (NYSE: NBR) today reported third quarter 2021 operating revenues of $524 million, compared to operating revenues of $489 million in the second quarter of 2021. The net loss from continuing operations attributable to Nabors shareholders for the quarter was $122 million, or $15.79 per share. The third quarter included a $13 million after tax expense, or $1.63 per share, related to the purchase of technology in the energy transition space. This compares to a loss of $196 million, or $26.59 per share, in the second quarter. The second quarter results included charges of $81 million after taxes, comprised mainly of an impairment of assets in Canada related to the sale of our Canada drilling rigs, and a tax reserve for contingencies in our International segment. Third quarter adjusted EBITDA was $125 million compared to $117 million in the second quarter.

Anthony G. Petrello, Nabors Chairman, CEO and President, commented, "Our performance in the third quarter was noteworthy on a number of fronts. Adjusted EBITDA increased by 7% versus the second quarter even with the sale of Canada drilling operations. All of our current segments grew sequentially.  Once again, our free cash flow generation was excellent. That performance drove another improvement in our leverage. We reached notable milestones in our technology portfolio, which reinforces our leadership in innovation. In particular, we successfully deployed the industry's first fully-automated rig for an operator in the Permian Basin. The PACE®-R801 utilizes Nabors' full portfolio of digital solutions. It recently completed drilling its initial well with a total depth of 20,000 feet. We are proud of the performance delivered by this transformative and unique addition to our technology portfolio.

"In the third quarter, global oil prices remained above the $60 mark. Since the end of the quarter, they have climbed above $80. Natural gas prices have risen to levels not seen in over a decade. In turn, oilfield activity has strengthened. In our two largest markets – Saudi Arabia and the United States – both the industry's and our own rig counts grew. In the U.S., pricing increased as industry utilization rose. Looking through the balance of this year and into 2022, we are optimistic that a continued favorable commodity environment will drive strong increases in rig count and pricing."

Consolidated and Segment Results

International Drilling adjusted EBITDA increased sequentially by 7%, to $76.2 million. The rig count averaged 67 rigs, a one rig decrease from the second quarter. This change was driven primarily by rigs moving between clients in Latin America, partially offset by the reactivation of temporarily idled rigs in Saudi Arabia. Average margin per day was $14,375, an increase of $955, driven by $7 million in early termination revenue somewhat offset by the impact of lost margin from rig moves in Mexico.

The U.S. Drilling segment reported $62.1 million in adjusted EBITDA for the third quarter of 2021, a 4% increase from the prior quarter. Nabors' average Lower 48 rig count, at 68, increased by more than four rigs, or 6%. Average daily margins in the Lower 48 were $7,025, in line with the prior quarter. The U.S. Drilling segment's rig count currently stands at 78, with 72 rigs in the Lower 48.

In Drilling Solutions, adjusted EBITDA of $15.6 million increased by 22% reflecting stronger activity in performance drilling software, especially in the U.S., and in casing running services in both our U.S. and international markets.

In Rig Technologies, adjusted EBITDA increased to $3.0 million in the third quarter, up from $2.0 million in the second quarter. Higher international deliveries of capital equipment were the primary driver of this increase.

Outlook for the Fourth Quarter of 2021

International

  • Quarterly average rig count is expected to increase by approximately four rigs over the third quarter average, primarily reflecting reactivations of two suspended rigs in Saudi Arabia and additional rigs in Latin America.
  • Daily drilling margin is expected to decline to $13,000 - $13,500, primarily reflecting the non-recurring early termination revenue received in the third quarter.

U.S. Drilling

  • Quarterly average Lower 48 rig count is expected to increase by approximately five rigs over the third quarter average.
  • Lower 48 daily drilling margin is expected to remain in line with the third quarter level, as the Company anticipates offsetting planned compensation increases with higher dayrates.
  • Quarterly average Alaska rig count is expected to increase by approximately one rig over the third quarter level, while the quarterly average U.S. Offshore rig count is expected to remain substantially in line with the third quarter average.

Drilling Solutions

  • Adjusted EBITDA is expected to increase by approximately 10% over the third quarter level.

Rig Technologies

  • Adjusted EBITDA is expected to increase moderately above the third quarter level.

Capital Expenditures

  • Capital expenditures for the full year are expected to total approximately $270 million, including approximately $90 million supporting SANAD's newbuild rig program. This translates into targeted fourth quarter capital expenditures of $91 million, of which $32 million is for SANAD newbuilds.

Free Cash Flow and Capital Discipline

Free cash flow, defined as net cash provided by operating activities less net cash used by investing activities, as presented in the Company's cash flow statement, totaled $133 million in the third quarter. This amount included proceeds from the sale of Canada drilling assets of $94 million offset by $16 million for energy transition investments. Capital expenditures accounted for $63 million while cash interest payments totaled $78 million. The Company improved net debt, defined as total debt less cash, cash equivalents and short-term investments, by $120 million. For the first nine months of 2021, the Company generated free cash flow of $261 million.

William Restrepo, Nabors CFO, stated, "The third quarter was a further demonstration of Nabors' leading operational performance both in the U.S. and internationally, with the potential for meaningful growth in the year ahead. Our strong performance is also translating into robust free cash flow generation that has allowed us to reduce our net debt materially. We expect further net debt reductions in the fourth quarter and in 2022.

"With our rapid progress in technology introduction, our modern industry leading fleet and our close relationships with customers across the globe, Nabors has never been stronger operationally. And with our deleveraging efforts of the last five years, our capital structure and debt profile are considerably stronger than they have been in a long time. We believe we are much better positioned to keep reducing our leverage, while taking advantage of the exciting opportunities presented by an improving industry environment.""  

Mr. Petrello concluded, "We are pleased with the level of our operational and financial performance. These allowed us to make further progress on our goals to generate free cash flow and reduce net debt. We have implemented multiple financial strategies to improve our leverage and they are delivering the desired results.

"We continue to advance on our Sustainability plans. We are on target to meet our commitment to reduce GHG emissions by 5% in the U.S. this year, and our Environmental and Social score metrics once again improved. We expect to make significant additional improvements on our emissions in the coming year.

"We took further steps to advance our efforts in the energy transition. We completed the third geothermal investment; all three companies in our portfolio have potentially disruptive technology. We also made additional development progress in the areas of energy storage, hydrogen, and carbon capture.  

"As we approach the close of 2021 and look into 2022, we are optimistic that industry fundamentals will improve further. Nabors has the industry's most talented workforce and a global fleet that is second-to-none. We have the most robust offering of apps and digital automation technology in the industry, and we are working to extend that leadership. With this combination, I am confident we will continue our advancement towards the achievement of our financial goals while simultaneously creating significant value for all of our stakeholders."

About Nabors Industries

Nabors Industries is a leading provider of advanced technology for the energy industry. With operations in approximately 20 countries, Nabors has established a global network of people, technology and equipment to deploy solutions that deliver safe, efficient and sustainable energy production. By leveraging its core competencies, particularly in drilling, engineering, automation, data science and manufacturing, Nabors aims to help shape the future of energy and enable the transition to a lower carbon world. Learn more about Nabors and its 100-year history of energy technology leadership: www.nabors.com.

Forward-looking Statements

The information included in this press release includes forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. Such forward-looking statements are subject to a number of risks and uncertainties, as disclosed by Nabors from time to time in its filings with the Securities and Exchange Commission. As a result of these factors, Nabors' actual results may differ materially from those indicated or implied by such forward-looking statements. The forward-looking statements contained in this press release reflect management's estimates and beliefs as of the date of this press release. Nabors does not undertake to update these forward-looking statements. 

Non-GAAP Disclaimer

This press release presents certain "non-GAAP" financial measures.  The components of these non-GAAP measures are computed by using amounts that are determined in accordance with accounting principles generally accepted in the United States of America ("GAAP").  Adjusted operating income (loss) represents income (loss) from continuing operations before income taxes, interest expense, earnings (losses) from unconsolidated affiliates, investment income (loss), (gain)/loss on debt buybacks and exchanges, impairments and other charges and other, net. Adjusted EBITDA is computed similarly, but also excludes depreciation and amortization expenses. In addition, adjusted EBITDA and adjusted operating income (loss) exclude certain cash expenses that the Company is obligated to make. Net debt is calculated as total debt minus the sum of cash, cash equivalents and short-term investments.  Free cash flow represents net cash provided by operating activities less cash used for investing activities. Free cash flow is an indicator of our ability to generate cash flow after required spending to maintain or expand our asset base. Management believes that this non-GAAP measure is useful information to investors when comparing our cash flows with the cash flows of other companies. Each of these non-GAAP measures has limitations and therefore should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including adjusted EBITDA, adjusted operating income (loss), net debt, and free cash flow, because it believes that these financial measures accurately reflect the Company's ongoing profitability and performance.  Securities analysts and investors also use these measures as some of the metrics on which they analyze the Company's performance. Other companies in this industry may compute these measures differently.  Reconciliations of consolidated adjusted EBITDA and adjusted operating income (loss) to income (loss) from continuing operations before income taxes, net debt to total debt, and free cash flow to cash flow provided by operations, which are their nearest comparable GAAP financial measures, are included in the tables at the end of this press release. 

Investor Contacts:  William C. Conroy, Vice President of Corporate Development & Investor Relations, +1 281-775-2423 or via e-mail william.conroy@nabors.com, or Kara Peak, Director of Corporate Development & Investor Relations, +1 281-775-4954 or via email kara.peak@nabors.com. To request investor materials, contact Nabors' corporate headquarters in Hamilton, Bermuda at +441-292-1510 or via e-mail mark.andrews@nabors.com

 

NABORS INDUSTRIES LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(Unaudited)

           
  

Three Months Ended

 

Nine Months Ended

  

September 30,

 

June 30,

 

September 30,

(In thousands, except per share amounts)

 

2021

 

2020

 

2021

 

2021

 

2020

           

Revenues and other income:

          

Operating revenues 

 

$            524,165

 

$            438,352

 

$            489,333

 

$         1,474,009

 

$         1,690,647

Investment income (loss)

 

200

 

(742)

 

(62)

 

1,401

 

(1,904)

Total revenues and other income

 

524,365

 

437,610

 

489,271

 

1,475,410

 

1,688,743

           

Costs and other deductions:

          

Direct costs

 

336,538

 

270,397

 

312,466

 

939,658

 

1,058,794

General and administrative expenses

 

52,897

 

46,168

 

51,580

 

159,137

 

149,796

Research and engineering

 

9,498

 

7,565

 

7,965

 

24,930

 

26,279

Depreciation and amortization

 

173,375

 

206,862

 

174,775

 

525,426

 

645,045

Interest expense

 

42,217

 

52,403

 

41,714

 

126,906

 

158,331

Other, net

 

22,758

 

4,592

 

66,455

 

96,559

 

290,973

Total costs and other deductions

 

637,283

 

587,987

 

654,955

 

1,872,616

 

2,329,218

           

Income (loss) from continuing operations before income taxes

 

(112,918)

 

(150,377)

 

(165,684)

 

(397,206)

 

(640,475)

Income tax expense (benefit)

 

2,784

 

(3,695)

 

24,719

 

37,228

 

18,444

           

Income (loss) from continuing operations, net of tax

 

(115,702)

 

(146,682)

 

(190,403)

 

(434,434)

 

(658,919)

Income (loss) from discontinued operations, net of tax

 

(20)

 

22

 

8

 

7

 

(48)

           

Net income (loss)

 

(115,722)

 

(146,660)

 

(190,395)

 

(434,427)

 

(658,967)

Less: Net (income) loss attributable to noncontrolling interest

 

(6,778)

 

(10,805)

 

(5,614)

 

(21,168)

 

(38,437)

Net income (loss) attributable to Nabors

 

(122,500)

 

(157,465)

 

(196,009)

 

(455,595)

 

(697,404)

Less: Preferred stock dividend

 

-

 

(3,653)

 

-

 

(3,653)

 

(10,958)

Net income (loss) attributable to Nabors common shareholders

 

$           (122,500)

 

$           (161,118)

 

$           (196,009)

 

$           (459,248)

 

$           (708,362)

           

Amounts attributable to Nabors common shareholders:

          

Net income (loss) from continuing operations

 

$           (122,480)

 

$           (161,140)

 

$           (196,017)

 

$           (459,255)

 

$           (708,314)

Net income (loss) from discontinued operations

 

(20)

 

22

 

8

 

7

 

(48)

Net income (loss) attributable to Nabors common shareholders

 

$           (122,500)

 

$           (161,118)

 

$           (196,009)

 

$           (459,248)

 

$           (708,362)

           

Earnings (losses) per share:

          

Basic from continuing operations

 

$               (15.79)

 

$               (23.42)

 

$               (26.59)

 

$               (62.26)

 

$             (102.25)

Basic from discontinued operations

 

-

 

-

 

-

 

-

 

(0.01)

Total Basic

 

$               (15.79)

 

$               (23.42)

 

$               (26.59)

 

$               (62.26)

 

$             (102.26)

           

Diluted from continuing operations

 

$               (15.79)

 

$               (23.42)

 

$               (26.59)

 

$               (62.26)

 

$             (102.25)

Diluted from discontinued operations

 

-

 

-

 

-

 

-

 

(0.01)

Total Diluted

 

$               (15.79)

 

$               (23.42)

 

$               (26.59)

 

$               (62.26)

 

$             (102.26)

           
           

Weighted-average number of common shares outstanding:

          

   Basic 

 

7,907

 

7,064

 

7,460

 

7,490

 

7,056

   Diluted 

 

7,907

 

7,064

 

7,460

 

7,490

 

7,056

           
           

Adjusted EBITDA

 

$            125,232

 

$            114,222

 

$            117,322

 

$            350,284

 

$            455,778

           

Adjusted operating income (loss)

 

$             (48,143)

 

$             (92,640)

 

$             (57,453)

 

$           (175,142)

 

$           (189,267)

 

NABORS INDUSTRIES LTD. AND SUBSIDIARIES

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 
        
        
  

September 30,

 

June 30,

 

December 31,

 

(In thousands)

 

2021

 

2021

 

2020

 
  

(Unaudited)

   

ASSETS

       

Current assets:

       

Cash and short-term investments

 

$             771,884

 

$             399,897

 

$             481,746

 

Accounts receivable, net

 

282,726

 

312,136

 

362,977

 

Assets held for sale

 

16,785

 

111,682

 

16,562

 

Other current assets

 

251,232

 

263,424

 

270,180

 

     Total current assets

 

1,322,627

 

1,087,139

 

1,131,465

 

Property, plant and equipment, net

 

3,443,737

 

3,562,350

 

3,985,707

 

Other long-term assets

 

408,462

 

392,829

 

386,256

 

     Total assets

 

$          5,174,826

 

$          5,042,318

 

$          5,503,428

 
        

LIABILITIES AND EQUITY

       

Current liabilities:

       

Current portion of debt

 

$                         -

 

$                         -

 

$                         -

 

Other current liabilities

 

516,088

 

529,116

 

515,469

 

     Total current liabilities

 

516,088

 

529,116

 

515,469

 

Long-term debt

 

3,075,520

 

2,823,125

 

2,968,701

 

Other long-term liabilities

 

348,542

 

354,637

 

319,610

 

     Total liabilities

 

3,940,150

 

3,706,878

 

3,803,780

 
        

Redeemable noncontrolling interest in subsidiary

 

400,853

 

398,497

 

442,840

 
        

Equity:

       

Shareholders' equity

 

709,021

 

818,919

 

1,151,384

 

Noncontrolling interest

 

124,802

 

118,024

 

105,424

 

     Total equity

 

833,823

 

936,943

 

1,256,808

 

     Total liabilities and equity

 

$          5,174,826

 

$          5,042,318

 

$          5,503,428

 

 

NABORS INDUSTRIES LTD. AND SUBSIDIARIES

SEGMENT REPORTING

(Unaudited)

            

The following tables set forth certain information with respect to our reportable segments and rig activity:

    
            
            
   

Three Months Ended

 

Nine Months Ended

   

September 30,

 

June 30,

 

September 30,

(In thousands, except rig activity)

 

2021

 

2020

 

2021

 

2021

 

2020

            

Operating revenues:

          
 

U.S. Drilling

 

$            173,441

 

$            130,243

 

$            161,606

 

$            477,346

 

$            578,928

 

Canada Drilling

 

6,034

 

10,774

 

12,313

 

39,336

 

39,929

 

International Drilling

 

270,008

 

248,392

 

255,282

 

772,128

 

886,580

 

Drilling Solutions

 

45,880

 

29,324

 

39,111

 

120,697

 

117,837

 

Rig Technologies (1)

 

42,053

 

28,466

 

34,552

 

102,353

 

104,198

 

Other reconciling items (2)

 

(13,251)

 

(8,847)

 

(13,531)

 

(37,851)

 

(36,825)

 

Total operating revenues

 

$            524,165

 

$            438,352

 

$            489,333

 

$         1,474,009

 

$         1,690,647

            

Adjusted EBITDA: (3)

          
 

U.S. Drilling

 

$              62,132

 

$              60,520

 

$              59,784

 

$            180,702

 

$            239,988

 

Canada Drilling

 

1,607

 

2,150

 

3,008

 

14,274

 

9,517

 

International Drilling

 

76,211

 

71,885

 

71,322

 

210,144

 

256,904

 

Drilling Solutions

 

15,620

 

7,129

 

12,796

 

39,874

 

35,979

 

Rig Technologies (1)

 

3,005

 

1,309

 

2,035

 

4,507

 

1,307

 

Other reconciling items (4)

 

(33,343)

 

(28,771)

 

(31,623)

 

(99,216)

 

(87,917)

 

Total adjusted EBITDA

 

$            125,232

 

$            114,222

 

$            117,322

 

$            350,284

 

$            455,778

            

Adjusted operating income (loss): (5)

          
 

U.S. Drilling

 

$             (19,700)

 

$             (39,162)

 

$             (20,869)

 

$             (63,905)

 

$             (69,961)

 

Canada Drilling

 

1,371

 

(3,507)

 

(2,608)

 

2,670

 

(9,265)

 

International Drilling

 

(7,297)

 

(16,872)

 

(8,439)

 

(34,368)

 

(20,743)

 

Drilling Solutions

 

8,607

 

(3,583)

 

6,524

 

19,841

 

8,699

 

Rig Technologies (1)

 

1,926

 

(1,807)

 

(692)

 

(1,335)

 

(11,450)

 

Other reconciling items (4)

 

(33,050)

 

(27,709)

 

(31,369)

 

(98,045)

 

(86,547)

 

Total adjusted operating income (loss)

 

$             (48,143)

 

$             (92,640)

 

$             (57,453)

 

$           (175,142)

 

$           (189,267)

            

Rig activity:

          

Average Rigs Working: (6)

          
 

     Lower 48

 

67.6

 

48.2

 

63.5

 

62.5

 

64.7

 

     Other US

 

5.0

 

5.2

 

5.7

 

5.0

 

6.4

 

U.S. Drilling

 

72.6

 

53.4

 

69.2

 

67.5

 

71.1

 

Canada Drilling

 

4.1

 

7.4

 

8.2

 

8.6

 

8.8

 

International Drilling

 

67.0

 

71.3

 

68.3

 

66.7

 

80.1

 

Total average rigs working

 

143.7

 

132.1

 

145.7

 

142.8

 

160.0

            

Daily Rig Revenue:

          
 

     Lower 48

 

$              21,312

 

$              21,764

 

$              21,015

 

$              21,314

 

$              25,120

 

     Other US

 

88,175

 

71,175

 

78,215

 

83,177

 

76,214

 

U.S. Drilling (8)

 

25,940

 

26,548

 

25,694

 

25,908

 

29,712

 

Canada Drilling

 

16,056

 

15,867

 

16,512

 

16,693

 

16,622

 

International Drilling

 

43,789

 

37,842

 

41,102

 

42,410

 

40,375

            

Daily Rig Margin: (7)

          
 

     Lower 48

 

$                7,025

 

$                9,527

 

$                7,017

 

$                7,450

 

$                9,964

 

     Other US

 

53,947

 

48,636

 

48,657

 

52,251

 

45,861

 

U.S. Drilling (8)

 

10,272

 

13,314

 

10,424

 

10,777

 

13,190

 

Canada Drilling

 

5,654

 

4,203

 

4,993

 

6,758

 

4,880

 

International Drilling

 

14,375

 

12,678

 

13,420

 

13,582

 

13,446

 

  

(1)

Includes our oilfield equipment manufacturing, automated systems, and downhole tools.

             

(2)

Represents the elimination of inter-segment transactions related to our Rig Technologies operating segment.

             

(3)

Adjusted EBITDA represents income (loss) from continuing operations before income taxes, interest expense, depreciation and amortization, earnings (losses) from unconsolidated affiliates, investment income (loss), impairments and other charges and other, net. Adjusted EBITDA is a non-GAAP financial measure and should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. In addition, adjusted EBITDA excludes certain cash expenses that the Company is obligated to make. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including adjusted EBITDA and adjusted operating income (loss), because it believes that these financial measures accurately reflect the Company's ongoing profitability and performance.  Securities analysts and investors use this measure as one of the metrics on which they analyze the Company's performance.  Other companies in this industry may compute these measures differently.  A reconciliation of this non-GAAP measure to income (loss) from continuing operations before income taxes, which is the most closely comparable GAAP measure, is provided in the table set forth immediately following the heading "Reconciliation of Non-GAAP Financial Measures to Income (loss) from Continuing Operations before Income Taxes".

             

(4)

Represents the elimination of inter-segment transactions and unallocated corporate expenses.

             

(5)

Adjusted operating income (loss) represents income (loss) from continuing operations before income taxes, interest expense, earnings (losses) from unconsolidated affiliates, investment income (loss), impairments and other charges and other, net. Adjusted operating income (loss) is a non-GAAP financial measure and should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. In addition, adjusted operating income (loss) excludes certain cash expenses that the Company is obligated to make. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including adjusted EBITDA and adjusted operating income (loss), because it believes that these financial measures accurately reflect the Company's ongoing profitability and performance.  Securities analysts and investors use this measure as one of the metrics on which they analyze the Company's performance.  Other companies in this industry may compute these measures differently.  A reconciliation of this non-GAAP measure to income (loss) from continuing operations before income taxes, which is the most closely comparable GAAP measure, is provided in the table set forth immediately following the heading "Reconciliation of Non-GAAP Financial Measures to Income (loss) from Continuing Operations before Income Taxes".

             

(6)

Represents a measure of the average number of rigs operating during a given period.  For example, one rig operating 45 days during a quarter represents approximately 0.5 average rigs working for the quarter.  On an annual period, one rig operating 182.5 days represents approximately 0.5 average rigs working for the year.

             

(7)

Daily rig margin represents operating revenue less operating expenses, divided by the total number of revenue days during the quarter.   

             

(8)

The U.S. Drilling segment includes the Lower 48, Alaska, and Gulf of Mexico operating areas.

    

 

NABORS INDUSTRIES LTD. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO 

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

(Unaudited)

           
           
  

Three Months Ended

 

Nine Months Ended

  

September 30,

 

June 30,

 

September 30,

(In thousands)

 

2021

 

2020

 

2021

 

2021

 

2020

           

Adjusted EBITDA

 

$            125,232

 

$            114,222

 

$            117,322

 

$            350,284

 

$            455,778

Depreciation and amortization 

 

(173,375)

 

(206,862)

 

(174,775)

 

(525,426)

 

(645,045)

Adjusted operating income (loss)

 

(48,143)

 

(92,640)

 

(57,453)

 

(175,142)

 

(189,267)

           

Investment income (loss)

 

200

 

(742)

 

(62)

 

1,401

 

(1,904)

Interest expense

 

(42,217)

 

(52,403)

 

(41,714)

 

(126,906)

 

(158,331)

Other, net

 

(22,758)

 

(4,592)

 

(66,455)

 

(96,559)

 

(290,973)

Income (loss) from continuing operations before income taxes

 

$           (112,918)

 

$           (150,377)

 

$           (165,684)

 

$           (397,206)

 

$           (640,475)

 

NABORS INDUSTRIES LTD. AND SUBSIDIARIES

RECONCILIATION OF NET DEBT TO TOTAL DEBT

 
       
  

September 30,

 

June 30,

 

December 31,

(In thousands)

 

2021

 

2021

 

2020

  

(Unaudited)

  
       

Current portion of debt

 

$                         -

 

$                         -

 

$                         -

Long-term debt

 

3,075,520

 

2,823,125

 

2,968,701

     Total Debt

 

3,075,520

 

2,823,125

 

2,968,701

Less: Cash and short-term investments

 

771,884

 

399,897

 

481,746

     Net Debt

 

$          2,303,636

 

$          2,423,228

 

$          2,486,955

 

NABORS INDUSTRIES LTD. AND SUBSIDIARIES

RECONCILIATION OF FREE CASH FLOW TO

NET CASH PROVIDED BY OPERATING ACTIVITIES

(Unaudited)

 
       
  

Three Months Ended

 

Nine Months Ended

  

September 30,

 

June 30,

 

September 30,

(In thousands)

 

2021

 

2021

 

2021

       

Net cash provided by operating activities

 

$             113,280

 

$             133,713

 

$                  326,483

Net cash provided by (used for) investing activities

 

19,831

 

(65,800)

 

(65,088)

Free cash flow

 

$             133,111

 

$               67,913

 

$                  261,395

 

 

Free cash flow represents net cash provided by operating activities less cash used for investing activities. Free cash flow is an indicator of our ability to generate cash flow after required spending to maintain or expand our asset base. Management believes that this non-GAAP measure is useful information to investors when comparing our cash flows with the cash flows of other companies. This non-GAAP measure has limitations and therefore should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. However, management evaluates the performance of the consolidated Company based on several criteria, including free cash flow, because it believes that these financial measures accurately reflect the Company's ongoing profitability and performance.

 

SOURCE Nabors Industries Ltd.