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What were the key takeaways from Nabors Industries's earnings call?

- **$625M Quail Sale Drives Debt Reduction**: Net debt cut to $1.7B, lowest in 10+ years.
- **International Growth**: Saudi Arabia EBITDA +8%, SANAD newbuilds on track for 25 rigs by 2030.
- **PACE-X Ultra Success**: Record 240+ ft/h drilling in Lower 48, automation package for Middle East.
- **Free Cash Flow**: $70M+ from core businesses, targeting $1.1B net debt.
- **Gas Market Expansion**: 13 rigs in Argentina, 50% Saudi rigs may return, global LNG demand growth.

**【CEO Opening Remarks】**
- Sold Quail Tools for $625M, reducing net debt to $1.7B (lowest in 10+ years), with $375M cash received at closing and $250M seller note prepaid.
- Highlighted strong performance in International Drilling (+8% EBITDA) and U.S. Drilling (37.7% margin).
- Launched PACE-X Ultra rig in Lower 48, achieving 240+ ft/h lateral drilling speed.

**【CFO Financial Commentary】**
- Q3 Adjusted EBITDA: $236M (28.9% margin), driven by $127M in International Drilling (8% growth).
- U.S. Drilling EBITDA: $94.2M (37.7% margin), despite 2.5% revenue decline.
- Free cash flow: $6M (Q3), guided to $10M (Q4), with $70M+ EBITDA from retained businesses post-Quail sale.
- Capital expenditures: $188M (31% for SANAD newbuilds), guiding to $180-190M/Q4.

**【Q&A Highlights】**
- **U.S. Activity Outlook**: 57-59 rigs expected in Q4, with stable demand in gas basins.
- **Saudi Arabia Rigs**: 50% of 80 suspended rigs may return, with Nabors' 3 rigs in tender.
- **Free Cash Flow**: $70M+ from non-SANAD businesses, targeting $1.1-1.2B net debt.
- **Argentina Growth**: 13 rigs by Q2 2026, supporting global gas development trends.
- **Technology**: PACE-X Ultra automation package to be deployed in Middle East, enhancing efficiency.

Nabors Industries Ltd. (NBR) Q3 2025 Earnings Call Transcript

- **Q2 EBITDA Beats Expectations**: $248 million, driven by Parker Wellbore ($40M+ synergies) and 4 new Middle East rigs.
- **Gas Market Growth**: Lower 48 gas-directed rig count up 20% YoY, Saudi Arabia transitioning to gas drilling (-29% oil rigs since 2024).
- **Free Cash Flow Improvement**: $41M Q2 (vs. -$61M Q1), with $14M debt repurchased at discount.
- **Key Risks**: Mexico collections lagging ($14M Q2), but $40M+ expected in Q3 from government intervention.
- **Strategic Momentum**: 20 newbuild rigs awarded in Saudi Arabia (13 operational by 2027), NDS gross margin 53% (highest in 5 years).

**【CEO Summary Section】**
- **Q2 EBITDA Performance**: Adjusted EBITDA of $248 million, in line with expectations, with full-quarter contribution from Parker Wellbore and 4 new rig deployments in the Middle East. Parker contributed $40 million in cost synergies, exceeding initial targets.
- **Market Trends**: Global oil demand stable, U.S. natural gas activity resilient (Lower 48 gas-directed rig count up 20% YoY). Saudi Arabia transitioning to gas-focused drilling, reducing oil rigs by 29% since 2024.
- **Strategic Moves**: SANAD joint venture awarded 5 new rigs (total 20 by 2027), with 13 rigs operational in Saudi Arabia. U.S. Offshore and Alaska drilling contributed $28 million EBITDA, up 38% QoQ.
- **Technology Growth**: Drilling Solutions (NDS) EBITDA at 25% of total, with Quail Tools leading Lower 48 penetration. International NDS revenue up 8% QoQ, driven by advanced downhole tools.

**【CFO Financial Commentary】**
- **Revenue & Profitability**: Q2 revenue $833 million (+13% QoQ), driven by Parker ($77 million contribution). U.S. Drilling EBITDA $101.8 million (+9.8% QoQ), offsetting margin decline (-2.6%) via higher rig count (+2 rigs).
- **Cash Flow & Debt**: Adjusted free cash flow $41 million (vs. -$61 million Q1), with $14 million debt repurchased at discount. 2025 CapEx reduced to $700-710 million (-$60 million due to delayed Saudi newbuilds).
- **Key Metrics**: U.S. Lower 48 daily margins $13,300 (Q3 guidance), International gross margin $17,534 (up $113 QoQ). NDS gross margin 53%, highest in 5 years.

**【Q&A Highlights】**
- **SANAD Expansion**: 5 new rigs awarded, 13 operational by 2027. Saudi Arabia prioritizing gas drilling, reducing oil rigs by 29% since 2024.
- **Free Cash Flow**: Q3 forecast $41 million (same as Q2), with $40 million+ collections expected from Mexico's $10 billion financing.
- **Mexico Risk**: Receivables collections below target ($14 million Q2), but government intervention may resolve $40 million+ in Q3.
- **CapEx Outlook**: 2026 CapEx ~$750 million (+$50 million vs. 2025), driven by SANAD newbuilds and fleet maintenance.
- **Strategic Focus**: Maintaining U.S. rig count stability (57-59 rigs Q3), while optimizing costs in oil-focused basins.


Nabors Industries (NBR)-30 Jul 25-2025 Q2 Earnings call transcript

- **SANAD JV Acceleration**: 11 newbuilds operational by end-Q2, targeting $300M+ 2025 EBITDA. 
- **International Deployment**: 10 rigs to deploy in Q2, offsetting 5 rig exits. 
- **US Margin Pressure**: Q1 daily margin $14,276 (down 4%), with Q2 forecast of $14,100. 
- **Parker Synergies**: $40M cost savings on track, with $130M+ EBITDA contribution. 
- **Debt Reduction**: $11.4M debt buyback in Q2, with revolver refinancing of Parker debt. 
- **Mexico Risk**: Collections sluggish, but Pemex plans rig restart in Q2. 


**【CEO Key Highlights】**
- **SANAD JV Growth**: 10 newbuild rigs operational in Q1, with 11th starting in April. SANAD is projected to generate over $300M in 2025 EBITDA, with potential for 5 newbuilds annually. 
- **International Expansion**: 10 rigs expected to deploy in Q2 (2 in Saudi Arabia, 3 in Kuwait), offsetting 5 rig reductions in Russia, UAE, and Colombia. 
- **US Market Challenges**: Lower 48 rig count fluctuated between 58-64, with Q1 daily margin of $14,276 (down 4% vs Q4). Elevated churn caused operational inefficiencies. 
- **Parker Synergies**: $40M cost savings target for 2025, with $15M+ expected in Q4. Parker's NDS segment contributed $21.7M in Q1 revenue. 

**【CFO Financial Breakdown】**
- **Q1 EBITDA**: $206.3M (down 6.6% vs Q4), driven by $13M decline in US Drilling EBITDA. 
- **Free Cash Flow**: Negative $80M-$90M, due to $70M+ CapEx underinvestment and slow collections in Mexico. 
- **Debt Management**: $11.4M debt repurchase in Q2. Parker's $178M debt refinanced via revolver, saving $10M+ in interest. 
- **2025 Guidance**: Maintain legacy Nabors EBITDA guidance; Parker to contribute $130M+ EBITDA. 

**【Q&A Key Takeaways】**
- **SANAD Debt**: No current debt accrual; JV focused on operational cash flow. 
- **Mexico Restart**: Pemex plans to resume rig in Q2, contingent on payment resolution. 
- **Tariff Impact**: $10M-$20M annualized cost increase, mitigated via vendor diversification. 
- **IPO Potential**: SANAD IPO being evaluated as a value realization tool. 
- **Rig Lead Times**: 12-month lead time for newbuilds, with awards expected in Q2. 


Nabors Industries (NBR)-30 Apr 25-2025 Q1 Earnings call transcript

- **Saudi Dominance**: SANAD's 50-rig program drives $200M+ EBITDA by 2026, with 5-year ROI on newbuilds. 
- **US Market Stagnation**: Lower 48 rig count at 62-64, offset by NDS's 54% gross margin. 
- **Free Cash Flow Breakeven**: 2025 targets $150M debt reduction via non-SANAD cash flow. 
- **Parker Synergy**: $35M annual savings and expanded service offerings. 
- **Mexico Risk**: $50M receivables delay impacts Q4, resolved in H1 2025.

**【CEO Opening Remarks】**
- **International Growth Momentum**: Deployed 10 rigs in 2024, with 10 more scheduled for 2025 (5 in Saudi Arabia, 3 in Kuwait, 1 in Argentina, 1 in Colombia). SANAD's newbuilds are generating $140M EBITDA in 2024, expected to rise to $200M in 2026. 
- **Saudi Arabia Strategic Play**: SANAD's 50-rig program ensures 10-year contracts with 5-year ROI. 2025 will see 5 newbuilds, with EBITDA per rig at $13M annually. 
- **US Market Challenges**: Lower 48 rig count dropped to 66 (Q4) due to operator capital discipline. However, NDS (Drilling Solutions) EBITDA grew to $33.8M, with 54% gross margin, offsetting US market stagnation. 
- **Parker Acquisition Synergy**: $35M annual cost savings expected, expanding tubular rental and NDS portfolios. 

**【CFO Financial Breakdown】**
- **Q4 2024 Results**: Adjusted EBITDA $221M (flat vs Q3), driven by $143M CapEx for SANAD newbuilds. Free cash flow negative ($50M shortfall) due to Mexico receivables delay and accelerated Saudi milestones. 
- **2025 Outlook**: 
  - **US Drilling**: Rig count 62-64, daily margin $14,600. Alaska/offshore EBITDA down 5%. 
  - **International**: 88-89 rigs avg, $17.6M daily margin (6.8% YoY growth). 
  - **CapEx**: $710-720M (58% for SANAD). Free cash flow breakeven, with $150M outside SANAD for debt reduction. 
  - **NDS/RigTech**: NDS EBITDA +6% to $140M, RigTech to $30M. 

**【Q&A Highlights】**
- **Saudi Newbuilds**: 5 rigs in 2025, $360M CapEx. Aramco supports 10-year contracts despite short-term rig suspensions. 
- **Mexico Collections**: $50M delayed in Q4, expected to resume in H1 2025. 
- **Argentina Model**: New cash extraction mechanisms allow repatriation of profits, supporting 3 new rigs in 2025-26. 
- **Debt Reduction**: $150M free cash flow outside SANAD to reduce gross debt in 2025. 
- **Parker Synergies**: Immediate accretion to cash flow, with $35M cost savings by end-2025.

Nabors Industries Ltd. (NBR) Q4 2024 Earnings Call Transcript

Nabors Industries (NBR)-23 Oct 24-2024 Q3 Earnings call transcript

Nabors Industries (NBR)-24 Jul 24-2024 Q2 Earnings call transcript

Nabors Industries (NBR)-25 Apr 24-2024 Q1 Earnings call transcript

Nabors Industries (NBR)-7 Feb 24-2023 Q4 Earnings call transcript

Nabors Industries (NBR)-26 Oct 23-2023 Q3 Earnings call transcript

Nabors Industries (NBR)-26 Jul 23-2023 Q2 Earnings call transcript

Nabors Industries (NBR)-25 Apr 23-2023 Q1 Earnings call transcript

Nabors Industries (NBR)-8 Feb 23-2022 Q4 Earnings call transcript

Nabors Industries (NBR)-26 Oct 22-2022 Q3 Earnings call transcript

Nabors Industries (NBR)-4 Aug 22-2022 Q2 Earnings call transcript

Nabors Industries (NBR)-28 Apr 22-2022 Q1 Earnings call transcript

Nabors Industries (NBR)-10 Feb 22-2021 Q4 Earnings call transcript

Nabors Industries (NBR)-27 Oct 21-2021 Q3 Earnings call transcript

Nabors Industries (NBR)-28 Jul 21-2021 Q2 Earnings call transcript

Nabors Industries (NBR)-30 Apr 21-2021 Q1 Earnings call transcript

Nabors Industries (NBR)-24 Feb 21-2020 Q4 Earnings call transcript

Nabors Industries (NBR)-4 Nov 20-2020 Q3 Earnings call transcript

Nabors Industries (NBR)-29 Jul 20-2020 Q2 Earnings call transcript

Nabors Industries (NBR)-6 May 20-2020 Q1 Earnings call transcript

Nabors Industries (NBR)-21 Feb 20-2019 Q4 Earnings call transcript

Nabors Industries (NBR)-30 Oct 19-2019 Q3 Earnings call transcript

Nabors Industries (NBR)-30 Jul 19-2019 Q2 Earnings call transcript

Nabors Industries (NBR)-1 May 19-2019 Q1 Earnings call transcript

Nabors Industries (NBR)-27 Feb 19-2018 Q4 Earnings call transcript

Nabors Industries (NBR)-31 Oct 18-2018 Q3 Earnings call transcript

Nabors Industries (NBR)-1 Aug 18-2018 Q2 Earnings call transcript

Nabors Industries (NBR)-2 May 18-2018 Q1 Earnings call transcript

Nabors Industries (NBR)-28 Feb 18-2017 Q4 Earnings call transcript

Nabors Industries (NBR)-25 Oct 17-2017 Q3 Earnings call transcript

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