Howard Weil 39th Annual Energy Conference March 28, 2011 Presenter: Gene Isenberg Chairman and CEO
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 Conservative and Flexible Financial Position Balance Sheet Data ( 000s) as of December 31, 2010 Cash & Securities (1) 841,490 Accounts Receivable 1,116,510 Working Capital (1) 458,550 Property, Plant and Equipment, Net 7,815,419 Total…
Nabors Key Value Drivers Combined yield significant operational leverage Pricing Financial Leverage Flexibility Global Utilization Value Infrastructure Leverage Creation Premium Capacity Assets Leverage 4
Pricing & Utilization Leverage Incremental increase yields significant upside Pricing: 5% increase in pricing applied to annualized 4Q 2010 results of all operating business units (excluding oil & gas) yields a thirty percent 30%…
Acquisitions & Growth Additions ACQUISITIONS Acquisition Actual 4Q 2010 EBIT EBIT (U.S. Millions) Costs (1) 2010 EBIT Annualized Payback Est. ROCE 2010 927.6 66.7 230.7 4x 16% GROWTH ADDITIONS Growth Capital (2) Est. ROCE 2010…
Nabors Global Infrastructure Largest portfolio of premium assets 727 LAND WORKOVER RIGS 550 LAND DRILLING RIGS 13 JACKUPS 8 Drilling 5 Workover 450k PRESSURE 3 BARGE RIGS 37 PLATFORM RIGS PUMPING HP 24…
Nabors Global Infrastructure International competitive advantages High barriers to entry Favorable international tax position Established footprint (yards, offices, facilities) Large pool of national management Large pool of TCN…
Nabors Global AC Rig Fleet New build rigs for U.S. lower 48 land is only part of the Nabors story To be 2/1/2011 delivered Total Alaska Drilling 3 0 3 U.S. Lower 48 Land Drilling 100 25 125 Canada Drilling 22* 2 24 International…
Global Fleet - Cash Flow Equivalent to US Land Rigs More to Nabors than just U.S. land drilling Actual 4Q 2010 U.S. Lower 48 Rig Years Equivalent Rig Count (1) Alaska 6.0 28 U.S. Lower 48 184.3 184 Canada 39.3 38 International 102.1…
Strategic Shift of Global Business Mix Significant movement towards oil & liquids 20% 35% 65% 80% 2006 2010 North American Gas North American Liquids & Global Oil (1) Percent of drilling, well servicing, and pressure…
Strategic Shift Marcellus Shale Expansion Platform for drilling, well servicing, pressure pumping growth Strategic Opportunities Established Operations Strategic Growth Further expansion to meet our customers 2 drilling rigs…
Business Unit Overview Alaska: Activity down with BP spending curtailment Results down 17% 09-10; 2011 down another 60% Longer-term opportunities and broader applications emerging Leading position in coiled-tubing drilling and AC…
Business Unit Overview Canada: 2010 saw continued improvement throughout the year 2011 2x 2010; Outlook continues to improve with oil activity We remain optimistic on our long-term position as market direction favors NBR fleet…
Oil & Gas Planned Sales Oil Assets: Colombia: Sale process proceeding in multiple transactions covering roughly 50% of acreage Proceeds of 250+ million expected Expect to spend additional capital on remaining acreage to position for…
U.S. Lower 48 Land Drilling As of 3/18/11, NDUSA has 194 rigs on revenue Virtually all PACE rigs committed Full utilization of PACE rigs has improved the market for SCR rigs Activity increasing in oil & liquids driven regions…
U.S. Lower 48 Land Drilling Premium Fleet Makeup NDUSA Rig Fleet A/C SCR AC Rigs 2/1/2011 100 31% 39% AC Rigs still to be deployed 25 SCR Upgraded 65 MECH SCR 60 30% Mechanical 93 U.S. Land Fleet Current Total 318 225…
U.S. Lower 48 Land Drilling Recent Achievements Bakken: NDUSA rig achieved 1,000 days without recordable incident. Drilled a horizontal well in 15.88 days (spud to td) Marcellus: NDUSA rig drilled 8,000 ft in 3.88 days (spud to td)…
International Drilling Full-year 2011 EBIT down 10% year-over-year 4Q 2011 EBIT should approximate 4Q 2010 EBIT Jackup repricing and downtime (90) million in 2011 EBIT Largest impact in 1Q 2011 and 2Q 2011 Downtime on 4 Saudi…
Superior Well Services Acquisition Leading provider of comprehensive, high-tech completion services 12 crews at 09/2010 14 currently 23 by EOY 2011 Current focus on term contracts 4Q 2010 results: 54.6 million EBIT 1Q 2011…
Summary & Outlook Macro Risk Still Present: Risk remains in North American Gas Markets Risk remains on International timing Nonetheless 2011 is Promising: International and U.S. Offshore 2nd Half Turnaround Canada growing with rig…
Quarterly Adjusted Income Derived from Operating Activities (000s) 4Q 2010 3Q 2010 4Q 2009 U.S. Lower 48 85,308 70,452 48,980 Nabors Well Services 12,132 9,049 8,758 U.S. Pressure Pumping 54,664 11,987 ---- U.S. Offshore (5,142)…
Non-GAAP Financial Information Within the preceding slides in this presentation, we present, both historically and on a forward-looking basis, our adjusted income derived from operating activities, which is a non-GAAP financial measure…
Non-GAAP Financial Information (continued) The following table provides a reconciliation of adjusted income derived from operating activities for our reportable segments to income (loss) from continuing operations before income taxes for…
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