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Nabors Announces Second Quarter 2021 Results

Nabors Announces Second Quarter 2021 Results

Jul 27, 2021

HAMILTON, Bermuda, July 27, 2021 /PRNewswire/ -- Nabors Industries Ltd. ("Nabors" or the "Company") (NYSE: NBR) today reported second quarter 2021 operating revenues of $489 million, compared to operating revenues of $461 million in the first quarter of 2021. The net loss from continuing operations attributable to Nabors common shareholders for the quarter was $196 million, or $26.59 per share. The second quarter results included charges of $81 million comprised mainly of an impairment of assets in Canada, related to the pending sale of our Canada drilling rigs, and a tax reserve for contingencies in our International segment. This compares to a loss from continuing operations of $141 million, or $20.16 per share in the prior quarter. Excluding the above unusual items in the second quarter, the net loss improved by $26 million, primarily reflecting higher adjusted EBITDA, and lower depreciation and income tax expense. Second quarter adjusted EBITDA was $117 million, compared to $108 million in the first quarter.

Anthony G. Petrello, Nabors Chairman, CEO and President, commented, "Our second quarter results validate our strategy as we made concrete progress on our goals. All of our segments performed well. Second quarter adjusted EBITDA was 9% higher than the first quarter, and above our expectations. We benefitted from continued activity increases in U.S. and International markets. Sequential improvements were achieved in our Drilling Solutions business, as well as Rig Technologies, which recorded its highest performance in the last year.

"We had another outstanding quarter in terms of free cash flow generation, which drove further progress in cutting our debt.

"During the second quarter, global oil prices increased steadily. Oilfield activity responded, and in particular in our drilling markets. The Lower 48 land drilling market grew by 16% on average in the second quarter. Activity also strengthened in our major international markets, notably for Nabors, in Saudi Arabia and Latin America. With the strength in commodity markets since the pandemic lows, we expect continued increases in drilling activity both in the U.S. and internationally. In tandem with improved utilization, we also expect pricing to increase in the second half of 2021."

Consolidated and Segment Results

The U.S. Drilling segment reported $59.8 million in adjusted EBITDA for the second quarter of 2021, a 2% increase from the prior quarter. For the quarter, Nabors' average Lower 48 rig count, at 64, increased by more than seven rigs, or 13%. Average daily margins in the Lower 48 were $7,017, as rigs were added at current market rates. The U.S. Drilling segment's rig count currently stands at 72, with 67 rigs in the Lower 48. Based on the Company's current outlook, the third quarter average Lower 48 rig count is expected to increase by four to six rigs over the second quarter average.  Nabors expects third quarter Lower 48 drilling margins in line with the second quarter level. For the third quarter, for the U.S. Offshore and Alaska operations, the Company expects adjusted EBITDA similar to the second quarter.

International Drilling adjusted EBITDA increased sequentially by 14%, to $71.3 million. The rig count averaged 68 rigs, a 5% increase from the first quarter. This improvement was driven primarily by new contracts in Colombia and the resumption of drilling rigs that had been temporarily idled in Saudi Arabia. Average margin per day was $13,420, an increase of more than $500, driven by improved performance in Saudi Arabia and more generally in the Eastern Hemisphere.

The third quarter outlook for the International segment includes a slight decline in rig count, and daily margins in line with the second quarter. This change in rig count reflects idle time as one of the Company's rigs moves between customers and an additional rig moves between platforms to accommodate the client's change in activity profile.

In Drilling Solutions, adjusted EBITDA of $12.8 million increased by 12% compared to the previous quarter, due to stronger activity across all service lines. The main contributors to the improvement were performance drilling software and casing running services. The Company expects third quarter Drilling Solutions adjusted EBITDA to increase versus the second quarter. 

In the Rig Technologies segment, second quarter adjusted EBITDA was $2.0 million, an improvement of $2.6 million compared to the first quarter. The increase was mainly due to a better sales mix of repairs and capital equipment. The Company expects third quarter adjusted EBITDA for Rig Technologies above the second quarter level.

Canada Drilling reported second quarter adjusted EBITDA of $3.0 million, reflecting the usual seasonal reduction in activity. The previously announced sale of the Canada drilling assets is expected to close around the end of July.

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 $68 million in the second quarter after funding capital expenditures of $77 million. The Company improved total debt by $76 million during the second quarter and improved net debt, defined as total debt less cash, cash equivalents and short-term investments, by $58 million. For the full year, capital expenditures are expected to total approximately $300 million, including roughly $100 million funded by SANAD, to support the SANAD rig newbuild program.

William Restrepo, Nabors CFO, stated, "The improving commodity markets are favorable for oilfield activity. We have seen clients become increasingly selective in their vendors, favoring those that can deliver high performance with advanced drilling and information solutions, combined with best in class safety results. We believe our fleet capabilities combined with our smart app portfolio continue to be industry leading.

"We have seen a strong activity response by our client base to the improvement in commodity prices over the past year. The Lower 48 appears poised to strengthen further, especially among private and smaller operators. We are optimistic for growth in our International markets later in 2021.

"Our commitment to capital discipline was once again demonstrated by strong free cash flow generation. With our cash flow performance, we have funded the global operation, including the newbuild rigs for SANAD, while improving our net debt. We recently launched an innovative delevering transaction with the issuance of warrants to shareholders. We believe the exercise of these warrants will be one more milestone in our progress towards a strong capital structure."  

Mr. Petrello concluded, "The second quarter results exceeded our expectations. We made solid progress on our twin goals to generate free cash flow and reduce net debt. Our improving operating performance and timely asset sales demonstrate our commitment to optimizing our capital allocation and improving our leverage.

"Our commitment to ESG and Sustainability continues. We recently improved our performance in both Environmental and Social score metrics, and are working to advance these efforts further.

"We made additional progress on our initiatives in the energy transition. We are making investments in geothermal companies with potentially disruptive technology. We also signed agreements that give us access to technologies in fuel efficiency and emissions reduction, as well as carbon capture. These efforts are in addition to our own internal initiatives focused on power management and energy storage.  

"In parallel, we are pressing our leadership position further in the automation and digitalization of the well construction process. We are determined to continue delivering and realizing value with our advanced solutions.

"For the second half of 2021, we expect further improvement in oilfield industry fundamentals, notwithstanding the challenges posed by the COVID Delta variant. With our outstanding workforce, global fleet capability that is second to none, and our growing technology portfolio, we believe we will make even more progress on our financial goals this year."

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. 

Media Contact:  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

 

Six Months Ended

   

June 30,

 

March 31,

 

June 30,

 

(In thousands, except per share amounts)

 

2021

 

2020

 

2021

 

2021

 

2020

            
 

Revenues and other income:

          
 

Operating revenues 

 

$           489,333

 

$           533,931

 

$           460,511

 

$           949,844

 

$        1,252,295

 

Investment income (loss)

 

(62)

 

2,036

 

1,263

 

1,201

 

(1,162)

 

Total revenues and other income

 

489,271

 

535,967

 

461,774

 

951,045

 

1,251,133

            
 

Costs and other deductions:

          
 

Direct costs

 

312,466

 

326,557

 

290,654

 

603,120

 

788,397

 

General and administrative expenses

 

51,580

 

46,244

 

54,660

 

106,240

 

103,628

 

Research and engineering

 

7,965

 

7,305

 

7,467

 

15,432

 

18,714

 

Depreciation and amortization

 

174,775

 

211,120

 

177,276

 

352,051

 

438,183

 

Interest expense

 

41,714

 

51,206

 

42,975

 

84,689

 

105,928

 

Impairments and other charges

 

59,868

 

57,852

 

2,483

 

62,351

 

334,286

 

Other, net

 

6,587

 

(30,795)

 

4,863

 

11,450

 

(47,905)

 

Total costs and other deductions

 

654,955

 

669,489

 

580,378

 

1,235,333

 

1,741,231

            
 

Income (loss) from continuing operations before income taxes

 

(165,684)

 

(133,522)

 

(118,604)

 

(284,288)

 

(490,098)

 

Income tax expense (benefit)

 

24,719

 

4,446

 

9,725

 

34,444

 

22,139

            
 

Income (loss) from continuing operations, net of tax

 

(190,403)

 

(137,968)

 

(128,329)

 

(318,732)

 

(512,237)

 

Income (loss) from discontinued operations, net of tax

 

8

 

23

 

19

 

27

 

(70)

            
 

Net income (loss)

 

(190,395)

 

(137,945)

 

(128,310)

 

(318,705)

 

(512,307)

 

Less: Net (income) loss attributable to noncontrolling interest

 

(5,614)

 

(10,167)

 

(8,776)

 

(14,390)

 

(27,632)

 

Net income (loss) attributable to Nabors

 

(196,009)

 

(148,112)

 

(137,086)

 

(333,095)

 

(539,939)

 

Less: Preferred stock dividend

 

-

 

(3,653)

 

(3,653)

 

(3,653)

 

(7,305)

 

Net income (loss) attributable to Nabors common shareholders

$         (196,009)

 

$         (151,765)

 

$         (140,739)

 

$         (336,748)

 

$         (547,244)

            
 

Amounts attributable to Nabors common shareholders:

          
 

Net income (loss) from continuing operations

 

$         (196,017)

 

$         (151,788)

 

$         (140,758)

 

$         (336,775)

 

$         (547,174)

 

Net income (loss) from discontinued operations

 

8

 

23

 

19

 

27

 

(70)

 

Net income (loss) attributable to Nabors common shareholders

$         (196,009)

 

$         (151,765)

 

$         (140,739)

 

$         (336,748)

 

$         (547,244)

            
 

Earnings (losses) per share:

          
 

Basic from continuing operations

 

$              (26.59)

 

$              (22.13)

 

$              (20.16)

 

$              (46.90)

 

$              (78.85)

 

Basic from discontinued operations

 

-

 

-

 

-

 

-

 

(0.01)

 

Total Basic

 

$              (26.59)

 

$              (22.13)

 

$              (20.16)

 

$              (46.90)

 

$              (78.86)

            
 

Diluted from continuing operations

 

$              (26.59)

 

$              (22.13)

 

$              (20.16)

 

$              (46.90)

 

$              (78.85)

 

Diluted from discontinued operations

 

-

 

-

 

-

 

-

 

(0.01)

 

Total Diluted

 

$              (26.59)

 

$              (22.13)

 

$              (20.16)

 

$              (46.90)

 

$              (78.86)

            
            
 

Weighted-average number of common shares outstanding:

          
 

   Basic 

 

7,460

 

7,052

 

7,102

 

7,281

 

7,052

 

   Diluted 

 

7,460

 

7,052

 

7,102

 

7,281

 

7,052

            
            
 

Adjusted EBITDA

 

$           117,322

 

$           153,825

 

$           107,730

 

$           225,052

 

$           341,556

            
 

Adjusted operating income (loss)

 

$            (57,453)

 

$            (57,295)

 

$            (69,546)

 

$         (126,999)

 

$            (96,627)

 

NABORS INDUSTRIES LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

         
         
  

June 30,

 

March 31,

 

December 31,

  

(In thousands)

 

2021

 

2021

 

2020

  
  

(Unaudited)

    

ASSETS

        

Current assets:

        

Cash and short-term investments

 

$            399,897

 

$            417,561

 

$            481,746

  

Accounts receivable, net

 

312,136

 

331,453

 

362,977

  

Assets held for sale

 

111,682

 

16,563

 

16,562

  

Other current assets

 

263,424

 

270,454

 

270,180

  

     Total current assets

 

1,087,139

 

1,036,031

 

1,131,465

  

Property, plant and equipment, net

 

3,562,350

 

3,829,222

 

3,985,707

  

Other long-term assets

 

392,829

 

389,653

 

386,256

  

     Total assets

 

$         5,042,318

 

$         5,254,906

 

$         5,503,428

  
         

LIABILITIES AND EQUITY

        

Current liabilities:

        

Current portion of debt

 

$                         -

 

$                         -

 

$                         -

  

Other current liabilities

 

529,116

 

490,797

 

515,469

  

     Total current liabilities

 

529,116

 

490,797

 

515,469

  

Long-term debt

 

2,823,125

 

2,898,879

 

2,968,701

  

Other long-term liabilities

 

354,637

 

341,109

 

319,610

  

     Total liabilities

 

3,706,878

 

3,730,785

 

3,803,780

  
         

Redeemable noncontrolling interest in subsidiary

 

398,497

 

396,167

 

442,840

  
         

Equity:

        

Shareholders' equity

 

818,919

 

1,013,753

 

1,151,384

  

Noncontrolling interest

 

118,024

 

114,201

 

105,424

  

     Total equity

 

936,943

 

1,127,954

 

1,256,808

  

     Total liabilities and equity

 

$         5,042,318

 

$         5,254,906

 

$         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

 

Six Months Ended

 
   

June 30,

 

March 31,

 

June 30,

 

(In thousands, except rig activity)

 

2021

 

2020

 

2021

 

2021

 

2020

 
             

Operating revenues:

           
 

U.S. Drilling

 

$           161,606

 

$           173,784

 

$           142,299

 

$           303,905

 

$           448,685

 
 

Canada Drilling

 

12,313

 

3,564

 

20,989

 

33,302

 

29,155

 
 

International Drilling

 

255,282

 

301,078

 

246,838

 

502,120

 

638,188

 
 

Drilling Solutions

 

39,111

 

33,129

 

35,706

 

74,817

 

88,513

 
 

Rig Technologies (1)

 

34,552

 

33,582

 

25,748

 

60,300

 

75,732

 
 

Other reconciling items (2)

 

(13,531)

 

(11,206)

 

(11,069)

 

(24,600)

 

(27,978)

 
 

Total operating revenues

 

$           489,333

 

$           533,931

 

$           460,511

 

$           949,844

 

$        1,252,295

 
             

Adjusted EBITDA: (3)

           
 

U.S. Drilling

 

$             59,784

 

$             77,659

 

$             58,786

 

$           118,570

 

$           179,468

 
 

Canada Drilling

 

3,008

 

(564)

 

9,659

 

12,667

 

7,367

 
 

International Drilling

 

71,322

 

93,510

 

62,611

 

133,933

 

185,019

 
 

Drilling Solutions

 

12,796

 

9,411

 

11,458

 

24,254

 

28,850

 
 

Rig Technologies (1)

 

2,035

 

3,176

 

(533)

 

1,502

 

(2)

 
 

Other reconciling items (4)

 

(31,623)

 

(29,367)

 

(34,250)

 

(65,873)

 

(59,146)

 
 

Total adjusted EBITDA

 

$           117,322

 

$           153,825

 

$           107,730

 

$           225,052

 

$           341,556

 
             

Adjusted operating income (loss): (5)

           
 

U.S. Drilling

 

$            (20,869)

 

$            (23,395)

 

$            (23,336)

 

$            (44,205)

 

$            (30,799)

 
 

Canada Drilling

 

(2,608)

 

(5,795)

 

3,907

 

1,299

 

(5,758)

 
 

International Drilling

 

(8,439)

 

276

 

(18,632)

 

(27,071)

 

(3,871)

 
 

Drilling Solutions

 

6,524

 

1,733

 

4,710

 

11,234

 

12,282

 
 

Rig Technologies (1)

 

(692)

 

(1,492)

 

(2,569)

 

(3,261)

 

(9,643)

 
 

Other reconciling items (4)

 

(31,369)

 

(28,622)

 

(33,626)

 

(64,995)

 

(58,838)

 
 

Total adjusted operating income (loss)

 

$            (57,453)

 

$            (57,295)

 

$            (69,546)

 

$         (126,999)

 

$            (96,627)

 
             

Rig activity:

           

Average Rigs Working: (6)

           
 

     Lower 48

 

63.5

 

57.2

 

56.2

 

59.9

 

73.1

 
 

     Other US

 

5.7

 

6.6

 

4.3

 

5.0

 

7.0

 
 

U.S. Drilling

 

69.2

 

63.8

 

60.5

 

64.9

 

80.1

 
 

Canada Drilling

 

8.2

 

2.2

 

13.7

 

10.9

 

9.5

 
 

International Drilling

 

68.3

 

82.4

 

64.8

 

66.5

 

84.6

 
 

Total average rigs working

 

145.7

 

148.4

 

139.0

 

142.3

 

174.2

 
             

Daily Rig Revenue:

           
 

     Lower 48

 

$             21,015

 

$             24,744

 

$             21,656

 

$             21,314

 

$             26,238

 
 

     Other US

 

78,215

 

74,825

 

83,793

 

80,624

 

78,089

 
 

U.S. Drilling (8)

 

25,694

 

29,927

 

26,115

 

25,890

 

30,776

 
 

Canada Drilling

 

16,512

 

18,105

 

16,995

 

16,813

 

16,920

 
 

International Drilling

 

41,102

 

40,129

 

42,347

 

41,704

 

41,456

 
             

Daily Rig Margin: (7)

           
 

     Lower 48

 

$               7,017

 

$             10,449

 

$               8,466

 

$               7,694

 

$             10,110

 
 

     Other US

 

48,657

 

46,032

 

54,974

 

51,385

 

44,828

 
 

U.S. Drilling (8)

 

10,424

 

14,132

 

11,803

 

11,064

 

13,148

 
 

Canada Drilling

 

4,993

 

899

 

8,160

 

6,968

 

5,146

 
 

International Drilling

 

13,420

 

14,091

 

12,917

 

13,176

 

13,773

 
             
             

(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

 

Six Months Ended

 
  

June 30,

 

March 31,

 

June 30,

 

(In thousands)

 

2021

 

2020

 

2021

 

2021

 

2020

 
            

Adjusted EBITDA

 

$           117,322

 

$           153,825

 

$           107,730

 

$           225,052

 

$           341,556

 

Depreciation and amortization 

 

(174,775)

 

(211,120)

 

(177,276)

 

(352,051)

 

(438,183)

 

Adjusted operating income (loss)

 

(57,453)

 

(57,295)

 

(69,546)

 

(126,999)

 

(96,627)

 
            

Investment income (loss)

 

(62)

 

2,036

 

1,263

 

1,201

 

(1,162)

 

Interest expense

 

(41,714)

 

(51,206)

 

(42,975)

 

(84,689)

 

(105,928)

 

Impairments and other charges

 

(59,868)

 

(57,852)

 

(2,483)

 

(62,351)

 

(334,286)

 

Other, net

 

(6,587)

 

30,795

 

(4,863)

 

(11,450)

 

47,905

 

Income (loss) from continuing operations before income taxes

 

$         (165,684)

 

$         (133,522)

 

$         (118,604)

 

$         (284,288)

 

$         (490,098)

 

 

NABORS INDUSTRIES LTD. AND SUBSIDIARIES

  

RECONCILIATION OF NET DEBT TO TOTAL DEBT

  
 
           
  

June 30,

 

March 31,

 

December 31,

    

(In thousands)

 

2021

 

2021

 

2020

    
  

(Unaudited)

      
           

Current portion of debt

 

$                         -

 

$                         -

 

$                         -

    

Long-term debt

 

2,823,125

 

2,898,879

 

2,968,701

    

     Total Debt

 

2,823,125

 

2,898,879

 

2,968,701

    

Less: Cash and short-term investments

 

399,897

 

417,561

 

481,746

    

     Net Debt

 

$         2,423,228

 

$         2,481,318

 

$         2,486,955

    
           

 

NABORS INDUSTRIES LTD. AND SUBSIDIARIES

RECONCILIATION OF FREE CASH FLOW TO

NET CASH PROVIDED BY OPERATING ACTIVITIES

(Unaudited)

 
         
  

Three Months Ended

 

Six Months Ended

  
  

June 30,

 

March 31,

 

June 30,

  

(In thousands)

 

2021

 

2021

 

2021

  
         

Net cash provided by operating activities

 

$            133,713

 

$              79,490

 

$            213,203

  

Less: Net cash used for investing activities

 

(65,800)

 

(19,119)

 

(84,919)

  

Free cash flow

 

$              67,913

 

$              60,371

 

$            128,284

  
         
         
         

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.