Nabors Closes Acquisition of Parker Wellbore and Announces Updated Investor Presentation
Rhea-AI Summary
Nabors Industries (NYSE: NBR) has completed its acquisition of Parker Wellbore, strengthening its position in drilling and value-added services. The acquisition includes Quail Tools, a leading provider of high-performance downhole tubulars in U.S. markets, and Parker's significant presence in tubular running services across multiple regions.
The company projects Parker's business to generate approximately $150 million in annualized 2025 adjusted EBITDA before expense synergies, which are estimated at $40 million by year-end 2025. Post-closing capital expenses for 2025 are estimated at $70 million.
The strategic benefits include immediate free cash flow accretion, enhanced scale, improved leverage metrics, and expansion of Nabors' Drilling Solutions business capabilities and market reach. The company has published an updated investor presentation detailing the acquisition's impact and providing additional financial information about its Saudi Arabia drilling business, including the SANAD joint venture with Saudi Aramco.
Positive
- Immediate accretion to free cash flow
- Expected $150M annual adjusted EBITDA contribution from Parker by 2025
- $40M in projected cost synergies by end of 2025
- Expansion into key markets with Quail Tools' leading position in downhole tubulars
- Enhanced scale and improved leverage metrics
Negative
- Significant capital expenditure requirement of $70M for 2025
- Integration execution risks across multiple regions and business units
News Market Reaction – NBR
On the day this news was published, NBR gained 7.04%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Parker's solutions portfolio includes Quail Tools ("Quail"), the leading rental provider of high-performance downhole tubulars in the
Anthony Petrello, Chairman, President and CEO of Nabors, commented on the closing of the acquisition, "With the successful completion of the Parker transaction, we are accelerating the growth of our Drilling Solutions business across several important markets, while bolstering our global drilling business. We are excited to welcome a strong and talented organization to the Nabors team. Our customers will benefit from the best practices that both organizations employ, and we expect to create incremental value for them by combining our offerings. Our immediate priority is to ensure seamless integration, and to capture the synergies we have projected."
"I would like to thank both teams for their dedication to the integration planning process, while maintaining outstanding customer service. The teams have worked exceedingly well together during this period, giving reason for optimism as we move forward. I also want to thank Sandy Esslemont, Parker's President and CEO, for his leadership and to wish him continued success."
Nabors expects the acquisition to deliver robust strategic and financial benefits, specifically:
- Strengthening Nabors Drilling Solutions business, expanding capabilities and market reach
- Immediate accretion to free cash flow
- Enhanced scale and improved leverage metrics
- Estimated recurring synergy realization of
$40 million
Financial Outlook
Nabors expects the Parker business to produce annualized 2025 adjusted EBITDA of approximately
Updated Investor Presentation
Nabors has published an updated investor presentation on its website, highlighting the expected impact of the acquisition of the Parker Wellbore business. In addition, the presentation provides more financial detail for the expected contribution of the
About Nabors Industries
Nabors Industries (NYSE: NBR) is a leading provider of advanced technology for the energy industry. With presence in more than 20 countries, Nabors has established a global network of people, technology and equipment to deploy solutions that deliver safe, efficient and responsible energy production. By leveraging its core competencies, particularly in drilling, engineering, automation, data science and manufacturing, Nabors aims to innovate the future of energy and enable the transition to a lower-carbon world. Learn more about Nabors and its energy technology leadership: www.nabors.com.
Forward-looking Statements
The information included in this press release includes forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. Such forward-looking statements are subject to a number of risks and uncertainties, as disclosed by Nabors from time to time in its filings with the Securities and Exchange Commission. As a result of these factors, Nabors' actual results may differ materially from those indicated or implied by such forward-looking statements. The forward-looking statements contained in this press release reflect management's estimates and beliefs as of the date of this press release. Nabors does not undertake to update these forward-looking statements except as required by law.
Non-GAAP Disclaimer
This press release may present certain "non-GAAP" financial measures. The components of these non-GAAP measures are computed by using amounts that are determined in accordance with accounting principles generally accepted in
As a non-GAAP measure, Adjusted EBITDA has limitations and therefore should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including Adjusted EBITDA because it believes that this financial measure accurately reflects the Company's ongoing profitability and performance. Securities analysts and investors also use this measure as some of the metrics on which they analyze the Company's performance. Other companies in this industry may compute Adjusted EBITDA differently. These differences could be meaningful. We do not provide a forward-looking reconciliation of our outlook for Adjusted EBITDA as the amount and significance of items required to develop meaningful comparable GAAP financial measures cannot be estimated at this time without unreasonable efforts.
Investor Contacts: William C. Conroy, CFA, Vice President of Corporate Development & Investor Relations, +1 281-775-2423 or via e-mail william.conroy@nabors.com or Kara Peak, Director of Corporate Development & Investor Relations, +1 281-775-4954 or via email kara.peak@nabors.com. To request investor materials, contact Nabors' corporate headquarters in
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SOURCE Nabors Industries Ltd.
FAQ
What is the projected 2025 EBITDA for Parker Wellbore under Nabors ownership?
How much cost synergy does Nabors expect from the Parker Wellbore acquisition?
What are the key assets acquired in the Parker Wellbore acquisition?
What is the estimated capital expenditure for the acquired Parker business in 2025?
What geographical markets does the Parker Wellbore acquisition add to NBR's operations?
