ENERGY CONFERENCE – Nabors Industries Ltd.

Nabors Industries Ltd. · Mar 26, 2014 · 28 slides

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Slides

Howard Weil 42nd Annual Energy Conference March 24-26, 2014
Company Profile 3
Worldwide Rig Fleet Status Actively Marketed Rigs Only As of December 31, 2013 8 JACKUPS 4 BARGE RIGS 38 PLATFORM RIGS 5 Drilling 20 Workover/Re-Drilling 3 Workover 18 Drilling 549 LAND WORKOVER RIGS 490 LAND DRILLING RIGS…
Nabors Historical Stock Price Focused on re-establishing historical valuation 60 2,500,000 50 2,000,000 40 1,500,000 30 1,000,000 20 500,000 10 0 0 EBITDA Stock Price Consensus EBITDA 5
2Q12 Refocusing of Businesses Strategic Plan Streamlining the business Enhancing operational excellence Driving technology and innovation Strengthening customer alignment Improving balance sheet quality and flexibility 6
Streamlining the Business Drilling & Rig Services 2013 Revenue 6.3 bn(2) U.S. Lower 48 286 rigs(1) Completion & Drilling & Rig U.S. Offshore 24 rigs Production Services Services Alaska 19 rigs Canada 64 rigs Production Services…
Improving Operational Efficiency Reduced TRIR by 14% 2012 2013 Change Total Recordable Incidence Rate 1.18 1.01 (14%) (per 200,000 man hours) Total Recordable Incidence Rate TRIR 6 5 4 IADC US Land 3 2 Nabors 1 0…
Driving Technology & Innovation PACE Rig Performance Feet/Day in SCOOP - 2013 Feet per Day PACE-X Competitor A1 Competitor A2 Competitor B PACE-X rigs outperformed competitors by an average of 17% in the Scoop Feet/Day in…
Improving Financial Flexibility Realized cash proceeds of over 600 million through the sale of non-strategic assets and businesses Generated Free Cash Flow from operations of approximately 300 million Refinanced 785mm (70%) of 2019,…
Customer Alignment U.S. Drilling Customers by Revenue NCPS Customers by Revenue 19% 14% 10% Major 7% Major 28% 3% Large-Cap Large-Cap Mid-Cap Mid-Cap 18% 16% Small/Micro-Cap Small/Micro-Cap 48% Private Private 38%…
Macro Outlook: Rig Demand Growth 12
Nabors Global Market Study Broad-Based Blind Study Conducted by 3rd Party Firm Customers view Nabors as a best-in-class performer International customers view Nabors as the top driller in both market share and customer perception…
Continued Shift to Pad Drilling More Wells per Pad Pad Drilling 2010A 2013A 2018E % of Wells Drilled on Pads 20% 50% 70% Avg. of Wells per Pad 2.2 4.0 6+ Source: Global Market Study NBR Land Rigs AC SCR Mech Total Moving Systems…
Nabors Outlook: Near & Longer Term 15
Drilling & Rig Services SPECIALTY RIGS OFFSHORE RIGS LAND RIGS - Unique niche - Unique niche - Proprietary technology - Global leadership position - High market share - Technical leadership - Premium fleet - Highly innovative…
International Outlook Sustained upturn in the International rig market Market strength evidenced by renewals and rate increases New rig construction and major upgrades are impactful, and all should deploy within twelve months…
International Land Rigs: Gaining Traction 130 Pro forma impact of 2Q13 and 3Q13 announced contracts 120 110 100 90 80 130 Nabors International Land Rig Count 125 20% Increase 70 120 in Land Rigs 115 60 110 105 50…
Lower 48 Outlook Growth is increasingly driven by newbuild PACE-X rig deployments Active newbuild program supporting planned deployment in 2014 of 20 units including 5 rigs already delivered in 2014 Current build rate 2 per month;…
PACE-X Rig Deployments & Rig Years 50 45 40 35 30 25 20 5.2 PACE-X Rig Years through 4Q13 15 10 5 0 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 Deployments Cumulative Deployments Cumulative Rig Year PACE-X Contract…
US Land Drilling Efficiencies Flattening Initial signs of diminishing efficiency improvements in key shale plays bodes well for high-tech rig demand Wells per Rig 5.50 5.30 Wells/Rig Trendline 5.10 4.90 4.70 4.50…
Alaska & Offshore Outlook Improving prospects in Alaska and U.S. Offshore Discussions underway for multiple additional large projects in Alaska Utilization for our GOM platform rigs is stable, and discussions are underway with…
Canada Outlook Number of potential projects targeting Canadian natural gas liquids that continue to generate interest in the northwest part of the Western Canadian Sedimentary Basin Montney, Horn River and Duvernay areas are…
Completion & Production Services WORKOVER & WELL SERVICING COILED TUBING - Leadership position - Long term growth prospect - Synergies with pressure pumping - Installed Infrastructure - Synergies with workover & well servicing -…
Production Services Outlook Growing population of oil wells Increased activity and service intensity from maturing horizontal oil wells Shrinking supply of rigs capable of being reactivated, compounded by attrition of older base…
Production Services Rates and Hours Workover & Well Servicing Rig Rates & Hours 1,000,000 700 900,000 600 800,000 700,000 500 600,000 400 500,000 400,000 300 300,000 200 200,000 100 100,000 0 0 2010 2011 2012 2013 Rig…
Completion Services Outlook Punishing weather in 1Q has greatly constrained our ability to work in Northern operating areas 1Q operating results worse than expected Beyond the winter weather, outlook improving Expiring take-or-pay…
Completion Services Outlook Horizontal Rig Count driving HHP Usage 1,200 13,500,000 1,180 13,000,000 1,160 Est. HHP Usage 12,500,000 Estimated HHP Usage 1,140 Horizontal Rig Count 1,120 12,000,000 1,100 Horizontal…
Summary: Why Nabors Clear Path to Improving Performance Contract visibility Bottoming out of U.S. Land Visible upside in other drilling segments Strong demographic in Well Servicing Appearance of market bottom in Pressure Pumping…

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