Barclays CEO Energy Power Conference September 4, 2014 Presenter: William Restrepo Chief Financial Officer
2011: Tony Petrello Assumes CEO Role Embark in a New Direction Streamlining the business Strengthening balance sheet and financial flexibility Drilling Ahead Instituting new strategic direction Enhancing operational…
Embark in a New Direction Streamlining the Business Transaction E&P 2012 Other assets Sale of Peak Alaska 2013 E&P Other assets, Airborne Planned NCPS merger with C&J Energy 2014 Sale of GOM rigs and Other 2012-14 Total…
Embark in a New Direction Streamlining the Business Actions Combine CS and PS segments into one organization Consolidate Alaska and U.S. Offshore into NDUSA Merge engineering groups into single centralized unit Benefits Eliminate…
Embark in a New Direction Streamlining the Business Anticipated Merger NCPS with C&J Energy Retain 53% equity interest in combined entity Create critical mass Capitalize on technology and increased scale Facilitate international…
Embark in a New Direction Streamlining the Business Nabors Post-transaction Benefits Refocus on Drilling businesses Reduce internal competition for capital Increase proportion of revenue contractually covered Strategy Target…
Embark in a New Direction Progress in 2012-2014E C&J Energy Services Merger Strengthened Financial Flexibility Reduced net debt by 809 million Reduced annualized interest expense by 62 million Improved debt metrics significantly…
Drilling Ahead 10
Drilling Ahead Unmatched Global Position and Opportunity Set Largest fleet of land drilling rigs in the industry: 500 Vertically-integrated drilling equipment and technology Global footprint with dominant position in attractive…
Drilling Ahead Next 5 Years Proprietary Market Survey Conducted by 3rd Party Firm Interviews with 60 Oil & Gas Operators 40 North America based majors to mid-cap E&Ps 20 International NOCs and IOCs International 1 in drilling…
Drilling Ahead Next 5 Years Nabors Global Market Study International Summary Nabors holds prime slot in two markets with the highest expected five-year growth Nabors is a leader in the high value/high growth Saudi Arabia and Latin…
Drilling Ahead Next 5 Years Nabors Global Market Study North America Summary 2-4% - projected NAM total rig demand CAGR 5-7% - projected High Spec rig demand CAGR 10-12% - projected Ultra High Spec rig demand CAGR Accelerating…
Drilling Ahead Strong Contractual Backlog Clear Path to Improving Performance International Rigs Under Contract Revenue backlog 3,500M U.S. Lower-48 Rigs Under Contract Revenue backlog 800M Other Segments Revenue backlog 400M…
Drilling Ahead Accelerating Newbuilds 118 Rigs Planned for Delivery in 3 Years New and Substantially-Upgraded Rigs 60 50 40 30 20 10 0 2013 2014 2015 16
Drilling Ahead Enhancing ROCE Return-on-Capital Improvement Opportunities Near-term 7-Point Improvement in PACE-X ROCE Growing the Numerator Value Pricing and Pricing Discipline Operating Expenses Improving the Denominator Capital…
Drilling Ahead Leverage from New Rigs Growing Accretion through Mix Shift to High-spec Rigs Average Daily Rig Margin by Rig Type 3.5x 3.0x 118 planned newbuild deployments 2.5x 2013-2015 2.0x 1.5x 1.0x 0.5x 0.0x Legacy…
Drilling Ahead Strong Pricing Gains Actual Lower-48 AC Rig Fleet (Excluding PACE-X Rigs) 112% Revenue per Day Trend, Normalized for Mix 110% 108% 106% 104% 102% 100% Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14…
Drilling Ahead Robust Outlook Lower-48 Positive pricing momentum Strong AC newbuild demand International Middle East Latin America Repricing renewals to current market Canada Stronger year-round demand Evaluating potential…
Summary Why Nabors Significant progress on streamlining the business, evidenced by the C&J transaction Intensified focus on global drilling business with emphasis on return on capital Strong global growth outlook Optimized…
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