Raymond James 33rd Annual Institutional Investors Conference March 6, 2012 Presenter: Denny Smith Director, Corporate Development
Forward-Looking Statements We often discuss expectations regarding our markets, demand for our products and services, and our future performance in our annual and quarterly reports, press releases, and other written and oral statements.…
A Great Platform An unparalleled asset base Established worldwide infrastructure Supply chain advantages Access to virtually all major worldwide markets Customer relationships with most major players Ideal corporate structure for…
Nabors Global Infrastructure Largest portfolio of premium assets 755 LAND WORKOVER RIGS 499 LAND DRILLING RIGS 12 JACKUPS 7 Drilling 5 Workover 733k PRESSURE 4 BARGE RIGS 39 PLATFORM RIGS PUMPING HHP 25 Workover/Re-Drilling…
Nabors Global AC Rig Fleet New build rigs for US lower 48 land are only part of the Nabors story To Be 12/31/11 Delivered Total Alaska Drilling 3 0 3 US Lower 48 Land Drilling 119 25 144 Canada Drilling 24(1) 2 26 International…
Global Fleet - Cash Flow Equivalent to US Land Rigs More to Nabors than just US land drilling Actual 4Q2011 Equivalent US Rig Years Lower 48 Rig Count (1) Alaska 5.0 15 US Lower 48 216.7 217 Canada 45.2 66 International 113.2 115…
Assets Strategically Positioned in Major US Unconventional Plays Working Frac Well Svc Fluid Svc Frac Shale Plays & Basin Drilling Rigs Crews CTU Rigs Trucks Tanks Marcellus 14 4 3 27 155 720 Haynesville 32 1 - 9 43 186 Bakken/Rockies 76…
Refining Our Business Enhance balance sheet flexibility Review each Business Unit for: Strategic fit Execution effectiveness Capital efficiency Realign with Customers Drilling & Rig Services Completion & Production…
Re-Establish Balance Sheet Flexibility Increased Focus on Balance Sheet Management and Net Debt Reduction Balance Sheet Data as of December 31, 2011 ( Millions) Cash & Securities 540 Accounts Receivable 1,577 Working Capital 1,286…
Re-Establish Balance Sheet Flexibility Liquidity Current liquidity approximately 1.0 billion Expect 2012 OCF to fund all capital expenditures, redeem current debt and provide significant free cash flow Total debt Weighted average…
Re-Establish Balance Sheet Flexibility De-levering Increase EBITDA to reduce net debt More discipline and higher hurdles for new projects Monetize non-performing and non-strategic assets 11
Our Business Lines: An Overview Accelerating Operating Cash Flow 4Q Consolidated Run Rate exceeds Prior High and Increasing GAAP FY 2008 FY 2011 4Q11 Annualized US Lower 48 839 703 826 US Well Servicing 214 153 180 US Offshore 102…
Our Business Lines: An Overview Operating Segments by Line of Business Drilling and Rig Services US Lower 48 GOM Offshore Canada Ryan Alaska Peak International Canrig Completion and Production Services US Workover and Well…
Business Line & Asset Class Evaluation Criteria Leadership position Attractive investment returns Capable of growth or otherwise strategic 14
Drilling Rigs & Services 15
Drilling Rigs & Services US Lower 48 Land Drilling: 107 127 115 120 Total Working Rigs: 222 now 247 w/ new builds 16
Drilling Rigs & Services US Lower 48 Land Drilling: Nabors Including Frac Shale Plays and Basins Rigs New Builds Crews Marcellus 13 14 3 Haynesville/Tuscaloosa 32 32 1 Permian 26 26 3 Barnett 3 3 2 Eagle Ford 38 43 3 Woodford 3 3 1…
Drilling Rigs & Services US Lower 48 Land Drilling - Premium Fleet Makeup NDUSA Rig Fleet of Rigs Util. AC Rigs 12/31/11 119 100% SCR Upgraded 65 85% SCR 44 50% Mechanical 41 68% Current Total 269 83% AC Rigs still to be deployed…
Lower 48 Summary by Basin Approx. Basin Oil/Gas Working Rigs Market Share Marcellus Gas 13 6% Haynesville Gas 26 13% Bakken/Rockies Oil/Gas 71 20% Eagle Ford Oil 41 15% Permian Oil 28 8% Barnett Gas 3 13% Granite Wash Oil/Gas 18…
U.S. Lower 48 Land Drilling Term Contracts in Force at 12/31/11 Quarter end number of rigs subject to term contracts(1) 4Q11 1Q12 2Q12 3Q12 4Q12 3Q 2011 144 124 104 86 69 4Q 2011 186 158 131 101 75 2011 Contract Signatures…
Drilling Rigs & Services International: 2011 EBITDA: 397.1MM; 2011 EBIT: 123.8MM 1Q12 should reflect the bottom 4Q11 and 1Q12 impacted by delays in contract awards, start- ups, rig upgrades, and jackup dry docking 4Q rig count…
Drilling Rigs & Services Canada: 2011 EBITDA: 170.6MM; 2011 EBIT: 94.6MM Very strong 4Q at 36.5MM EBIT 85% of rigs are active in oil & liquids rich basins, deploying 5 additional upgraded rigs in 1Q12 Busy winter in Horn River in…
Canada Summary by Basin Working Approx. Basin Oil/Gas Rigs Term Contracts Market Share Horn River Gas 6 4.0 24.0% Montney Oil/Gas 8 0.0 19.0% Duvernay Oil 13 2.0 11.0% Oil Sands Oil 7 2.0 6.0% Cardium Oil 11 0.0 13.0% Saskatchewan…
Canrig: A Technology Success Story Innovation 200th ROCKITTM system installed in 2011 REVITTM Stick-Slip system commercialized in 2011 over 45 installations to date Over 35% of services and rentals revenue in 2011 came from new…
Completion & Production Services 25
Completion & Production Services US Pressure Pumping: Total Large Frac Crews: 25 Including planned additions 26
Pressure Pumping Summary by Basin Approx. Market Basin Oil/Gas of Crews LTSA Spot Position Marcellus Gas 4.0 2.0 2.0 T-4th Haynesville Gas 1.0 0.0 1.0 T-4th Bakken/Rockies Oil/Gas 11.0 8.0 3.0 2nd Eagle Ford Oil/Gas 4.0 2.0 2.0…
Completion & Production Services US Pressure Pumping: 2011 EBITDA: 331.1MM; 2011 EBIT: 229.1MM Q4 over Q3 operating income margin improved 10% or 184 BP Increasingly competitive in certain markets, particularly those most active…
Completion & Production Services US Pressure Pumping: Opportunities Supply chain integration into Nabors Material warehousing and storage economies Margin improvement Sand hauling and logistics capture of revenue Water…
Completion & Production Services US Well Servicing: Operating Facilities District California 16 Mid-Continent 12 Rocky Mountain 16 Northeast 9 Southeast 24 Western 21 Total 98 32
Evaluate Each Business Line Oil & Gas: Expeditiously monetize in an orderly and optimal manner Net Cash Cash Invested Proceeds to Date Position 2,100MM 917MM (1,183)MM Wholly Owned Net Acreage: (000s Acres) British Columbia Shales…
Summary Great opportunity for Nabors and its shareholders Unequalled global asset quality and infrastructure Virtually every segment improving with good longer-term outlook Numerous attractive growth opportunities Urgent action…
Quarterly Adjusted Income (Loss) Derived from Operating Activities (000s) 4Q11 3Q11 4Q10 US Lower 48 130,114 104,877 85,308 Nabors Well Services 24,237 22,839 12,132 US Offshore 3,422 2,457 (5,142) Alaska 5,343 3,021 11,252…
Non-GAAP Financial Information Within the preceding slides in this presentation, we present, both historically and on a forward-looking basis, our adjusted income (loss) derived from operating activities, which is a non-GAAP financial…
Non-GAAP Financial Information (continued) The following table provides a reconciliation of adjusted income (loss) derived from operating activities for our reportable segments to income (loss) from continuing operations before income…
Loading...
