Nabors Industries presents at EnerCom’s The Oil & Gas Conference®
Nabors Industries Ltd. (ticker: NBR) owns and operates the world’s largest land-based drilling rig fleet and is a leading provider of offshore platform work-over and drilling rigs in the U.S. and multiple international markets. Nabors also provides innovative drilling technology, directional drilling operations and drilling instrumentation, and software. Through its various subsidiaries, Nabors manufactures and sells top drives, catwalks, wrenches, drawworks, and other drilling related equipment, which are installed on both onshore and offshore drilling rigs.
Q2 highlights
- Increased U.S. Drilling average daily margins to $9,381 from $8,171 in Q1
- L48 Margins increased to $7,402 from $6,938, a 7% sequential increase
- Full quarter of full operating rate for MODSTM 400 Platform Rig (“Big Foot”)
- During the quarter, we issued equity with net proceeds of $581m
- Sold three jackups in the Middle East for a total consideration of $82m
- Generated positive cash flow in Q2 2018 excluding the jackup sale and equity offerings
- Reduced net-debt by $681m in the quarter (Net-Debt to Cap = 51%)
- Recent US Rig Awards – six PACE®-F upgrades and three PACE®-M550 upgrades in the Permian; deployments expected now through 1H 2019
- Four remaining PACE®-B upgrades expected to deploy in the remainder of 2018
- MODSTM 202 platform rig expected to commence work in the Gulf of Mexico in 4Q18
- Since the end of 1Q18, we have received awards for 11 international rigs, almost all for 2018 deployment; four rigs commenced in Colombia in 2Q
Breakout session at the EnerCom conference
During Nabors’ breakout session at the 2018 EnerCom conference, management was asked the following questions:
- Could you talk a little about how the upside of the new build deployment within the JV in Saudi works and how it works with the other JV that you’re not a part of?
- How long do you suspect the typical first terms of the contracts to last once they’ve moved into your JV?
- Can you comment on some of the new builds coming out of the JV? Are they going to be oil developments or more natural gas developments? Are any of them unconventional?
- Are the rigs you would theoretically use for your conventional plays be different from those that you would use for an unconventional?
- What are your thoughts on the Canadian market?
- How many “Super-Spec rig” additions are going to be made to the fleet by the end of 2018?
- How many rigs are upgradeable to “super-spec” status in the market?
- Do you have an outlook of oil prices in the next few years?
You can listen to Nabors’ presentation here.
