Nabors Industries posts $11.2M net loss in Q3 2026
Nabors expects further sequential adjusted EBITDA growth in Q4 and remains on track for an annualized run rate of approximately $1 billion heading into 2027.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
Nabors Industries Ltd. reported third-quarter 2026 operating revenue of $872.2 million, up 7% sequentially, and adjusted EBITDA of $245.5 million, up nearly 11%. Net loss attributable to Nabors shareholders was $11.165 million. Adjusted free cash flow was $74.5 million, compared with $12.3 million in the second quarter. International Drilling adjusted EBITDA was $145.7 million, and daily adjusted gross margin reached $19,060; U.S. Drilling adjusted EBITDA was $99.4 million.
For full-year 2026, management expects adjusted EBITDA of approximately $930 million and adjusted free cash flow of $100 million to $110 million, including approximately $20 million of cash consumption at SANAD. Nabors redeemed $100 million of its 9.125% notes with cash on hand. Management expects further sequential adjusted EBITDA growth in the fourth quarter and remains on track for an annualized adjusted EBITDA run rate of approximately $1 billion heading into 2027.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointOperating revenue rose 7% sequentially to $872.2 million.
- Moderate pointAdjusted EBITDA increased nearly 11% sequentially to $245.5 million.
- Moderate pointAdjusted free cash flow reached $74.5 million, up $62 million sequentially.
Negative
- None.
Filing Explained
Nabors says third-quarter adjusted free cash flow of $74,523 thousand is not residual cash available for discretionary spending.
This Form 8-K reports Nabors’ results for the completed quarter ended
Adjusted free cash flow subtracts capital spending, net of asset-sale proceeds, from operating cash flow, before acquisition-related costs.
The filing lists net debt of
8-K Event Classification
Key Figures
Key Terms
Adjusted EBITDA financial
Adjusted free cash flow financial
adjusted gross margin financial
Net debt financial
Earnings Snapshot
Full-year 2026 adjusted EBITDA of approximately $930 million; adjusted free cash flow of $100 million to $110 million; consolidated capital spending of $710 million to $720 million.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much revenue and adjusted EBITDA did NBR report for Q3 2026?
What is Nabors' 2026 capital spending outlook?
Why will SANAD's rig count be lower in Q4 2026?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
(Exact name of registrant as specified in its charter)
| (State or Other Jurisdiction of Incorporation or Organization) |
(Commission File Number) | (I.R.S. Employer Identification No.) |
| N/A | ||
| (Address of principal executive offices) | (Zip Code) |
(
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| Title of each class | Trading Symbol(s) | Name of exchange on which registered | ||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth
company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 2.02 Results of Operations and Financial Condition.
On October 27, 2026, Nabors Industries Ltd. (“Nabors”) issued a press release announcing its results of operations for the three months ended September 30, 2026. A copy of that release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.
On October 28, 2026, Nabors will hold a conference call at 10:00 a.m. Central Time, regarding the Company’s financial results for the quarter ended September 30, 2026. Information about the call - including dial-in information, recording and replay of the call, and supplemental information - is available on the Investor Relations page of www.nabors.com.
The information in this Item 2.02, including Exhibits 99.1 and 99.2, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act, of 1934 or otherwise subject to liabilities of that Section or Sections 11 and 12(a)(2) of the Securities Act of 1933.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. |
Description | |
| 99.1 | Press Release | |
| 99.2 | Investor Information | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Nabors Industries Ltd. | |||
| Date: October 27, 2026 | By: | /s/ Mark D. Andrews | |
| Name: | Mark D. Andrews | ||
| Title: | Vice President & Corporate Secretary | ||
Exhibit 99.1
 |
NEWS RELEASE |
Record International Drilling Margin. $75 Million in Adjusted Free Cash Flow. Nabors Reports Third Quarter 2026 Results.
HAMILTON, Bermuda, October 27, 2026 /PRNewswire/ Nabors Industries Ltd. (“Nabors” or the “Company”) (NYSE: NBR) today reported third quarter 2026 operating revenues of $872 million, up 7% sequentially. Net loss attributable to Nabors’ shareholders was $11 million. Adjusted EBITDA was $246 million, up nearly 11% from the second quarter.
Record International Drilling daily adjusted gross margin, a larger Lower 48 working fleet, and growth in Drilling Solutions drove the sequential improvement. Higher profitability, lower capital spending and improved working capital contributed to $75 million in adjusted free cash flow.
Selected Financial Information
(In millions, except rig activity)
| Three Months Ended | ||||||||||||
| September 30 | June 30, | September 30 | ||||||||||
| 2026 | 2026 | 2025 | ||||||||||
| Operating revenues | $ | 872.2 | $ | 814.8 | $ | 818.2 | ||||||
| Adjusted EBITDA | $ | 245.5 | $ | 221.7 | $ | 236.3 | ||||||
| Adjusted operating income | $ | 85.8 | $ | 61.1 | $ | 76.0 | ||||||
| Adjusted free cash flow | $ | 74.5 | $ | 12.3 | $ | 5.6 | ||||||
| Average rigs working: | ||||||||||||
| Lower 48 | 72.8 | 67.8 | 59.2 | |||||||||
| International Drilling | 94.9 | 93.4 | 89.2 | |||||||||
| Average total rigs working | 177.1 | 171.2 | 158.4 | |||||||||
The quarter ended September 30, 2025 includes revenue of $34 million, EBITDA of $20 million, and operating income of $14 million from Quail Tools, which was sold in August 2025.
3Q 2026 Highlights
| o | International Drilling daily adjusted gross margin reached a record $19,060, up $1,526, or 8.7%, sequentially. Strong field performance across multiple countries and high-margin rig deployments drove the increase. |
1
|
NEWS RELEASE |
| o | The SANAD land drilling joint venture successfully deployed its 17th newbuild rig in Saudi Arabia. One additional newbuild is scheduled for deployment in 2026 and two in the first quarter of 2027, bringing the total newbuild fleet to 20. |
| o | Nabors signed a multiyear contract to deploy one rig in Venezuela in early 2027. The deployment will mark Nabors’ return to drilling operations in the country. |
| o | Nabors rigs helped two Lower 48 operators achieve new drilling records. A PACE®-B rig in North Dakota achieved an impressive drilling performance of more than 27,600 feet in 148 hours, with an average rate of penetration of nearly 187 feet per hour. A PACE®-X rig in South Texas achieved a record performance by drilling an 18,500-foot well in under six days, averaging more than 3,200 feet per day. The operator recorded its fastest drilling performance in the basin to date. |
| o | Canrig secured commitments for four additional RZR™ rig floor automation modules, which will bring the total deployed to six. Strong client interest supports the outlook for additional awards. |
Anthony G. Petrello, Nabors Chairman, CEO and President, commented, “We delivered higher earnings and $75 million in adjusted free cash flow. Each of our four reporting segments met or exceeded its targets.
“International Drilling achieved a record daily adjusted gross margin. Strong field performance and new rig deployments with attractive economics drove the increase. We expect further margin improvement in the fourth quarter, despite a lower SANAD rig count following the suspension of five rigs.
“Our Lower 48 rig count grew as expected, and daily adjusted gross margin again exceeded guidance. We remain constructive on this market. Advanced drilling technology and reliable field delivery position us to continue increasing both rig count and daily margin.
“Drilling Solutions’ business delivered double-digit sequential adjusted EBITDA growth. Greater adoption of our Performance Software and Downhole Services on Nabors rigs in the Lower 48 drove the gains. International growth in Surface and Tubular services also contributed to the segment’s improvement.”
Segment Results
International Drilling adjusted EBITDA increased to $146 million from $131 million in the second quarter. Daily adjusted gross margin rose by more than $1,500 to $19,060, reflecting strong field performance and contributions from the recently deployed rig in Argentina and the SANAD newbuild.
U.S. Drilling adjusted EBITDA increased to $99 million from $94 million in the second quarter. A 7% increase in the average Lower 48 working fleet and higher daily adjusted gross margin drove the improvement.
2
|
NEWS RELEASE |
Drilling Solutions adjusted EBITDA increased to $44 million from $40 million in the second quarter, driven primarily by growth on Nabors rigs in the Lower 48 and growth in international markets.
Rig Technologies adjusted EBITDA increased to $5 million from $3 million in the second quarter. Both aftermarket revenue and capital equipment sales increased sequentially.
Adjusted Free Cash Flow
Consolidated adjusted free cash flow was $75 million, up $62 million sequentially. Higher profitability, lower capital spending at SANAD and across the rest of Nabors, together with lower working capital drove the improvement, partially offset by higher cash interest payments.
Miguel Rodriguez, Nabors CFO, stated, “Third quarter adjusted free cash flow exceeded our expectations. SANAD newbuild spending was below forecast as certain construction milestones shifted to later periods. Outside SANAD, controlled capital spending and improved working capital supported the cash generation.
“We anticipate delivering full-year 2026 adjusted EBITDA of approximately $930 million, reaching the upper end of our prior guidance. This outlook reflects the strength of the business, including the impact of rig suspensions in Saudi Arabia. We now expect full-year consolidated adjusted free cash flow of $100 to $110 million, including approximately $20 million of cash consumption at SANAD. This revised guidance is materially higher than our previous guidance.
“We now expect full-year consolidated capital spending of $710 to $720 million, including $295 to $305 million for SANAD’s newbuild program.
“During the quarter, we redeemed $100 million of our 9.125% notes with cash on hand, continuing to deliver on our commitment to reduce gross debt. The redemption lowers cash interest expense, further strengthening our balance sheet.”
Outlook
Nabors expects the following metrics for the fourth quarter of 2026:
U.S. Drilling
| o | Lower 48 average rig count of 75 rigs |
| o | Lower 48 daily adjusted gross margin of $14,500 to $14,700 |
| o | Alaska and Gulf of America combined adjusted EBITDA of approximately $12 million |
International
| o | Average rig count of 92 to 93 rigs |
| o | Daily adjusted gross margin of approximately $19,500 |
3
|
NEWS RELEASE |
Drilling Solutions
| o | Adjusted EBITDA of approximately $46 million |
Rig Technologies
| o | Adjusted EBITDA of approximately $8 million |
Capital Expenditures
| o | Capital expenditures of $250 to $260 million, including $140 to $150 million for SANAD newbuilds in Saudi Arabia |
Adjusted Free Cash Flow
| o | Adjusted free cash flow of $60 to $70 million, including approximately $20 million of cash consumption at SANAD |
Mr. Petrello concluded, “Our third quarter results demonstrate the earnings power of our diversified portfolio. We expect further sequential adjusted EBITDA growth in the fourth quarter, led by U.S. Drilling. We remain on track to achieve an annualized adjusted EBITDA run rate of approximately $1 billion heading into 2027.”
4
|
NEWS RELEASE |
About Nabors Industries
Nabors Industries (NYSE: NBR) is a leading provider of advanced technology for the energy industry. With operations in approximately 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.
Non-GAAP Disclaimer
This press release presents 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 the United States of America (“GAAP”). Adjusted operating income (loss) represents income (loss) before income taxes, interest expense, investment income (loss), gain on bargain purchase, and other, net. Adjusted EBITDA is computed similarly, but also excludes depreciation and amortization expenses. Adjusted gross margin represents adjusted operating income (loss) plus general and administrative costs, research and engineering costs and depreciation and amortization. In addition, adjusted EBITDA and adjusted operating income (loss) exclude certain cash expenses that the Company is obligated to make. Net debt is calculated as total debt minus the sum of cash, cash equivalents and short-term investments.
Adjusted free cash flow represents net cash provided by operating activities less cash used for capital expenditures, net of proceeds from sales of assets, and before cash paid for acquisition-related costs. Management believes that adjusted free cash flow is an important liquidity measure for the Company and that it is useful to investors and management as a measure of the Company’s ability to generate cash flow, after reinvesting in the Company for future growth, that could be available for paying down debt or other financing cash flows, such as dividends to shareholders. Adjusted free cash flow does not represent the residual cash flow available for discretionary expenditures. Adjusted free cash flow is a non-GAAP financial measure that should be considered in addition to, not as a substitute for or superior to, cash flow from operations reported in accordance with GAAP.
5
|
NEWS RELEASE |
Each of these non-GAAP measures 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, adjusted operating income (loss), net debt, and adjusted free cash flow, because it believes that these financial measures accurately reflect the Company’s ongoing profitability, performance and liquidity. Securities analysts and investors also use these measures as some of the metrics on which they analyze the Company’s performance. Other companies in this industry may compute these measures differently. Reconciliations of consolidated adjusted EBITDA and adjusted operating income (loss) to income (loss) before income taxes, net debt to total debt, and adjusted free cash flow to net cash provided by operations, which are their nearest comparable GAAP financial measures, are included in the tables at the end of this press release. We do not provide a forward-looking reconciliation of our outlook for Segment Adjusted EBITDA, Segment Gross Margin or Adjusted Free Cash Flow, as the amount and significance of items required to develop meaningful comparable GAAP financial measures cannot be estimated at this time without unreasonable efforts. These special items could be meaningful.
Investor Contacts: William C. Conroy, CFA, Vice President of Corporate Development & Investor Relations, via email william.conroy@nabors.com, or Kara K. Peak, Director of Corporate Development & Investor Relations, via email kara.peak@nabors.com. To request investor materials, contact Nabors' corporate headquarters in Hamilton, Bermuda via email mark.andrews@nabors.com
6
NABORS INDUSTRIES LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(Unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| September 30, | June 30, | September 30, | ||||||||||||||||||
| (In thousands, except per share amounts) | 2026 | 2025 | 2026 | 2026 | 2025 | |||||||||||||||
| Revenues and other income: | ||||||||||||||||||||
| Operating revenues | $ | 872,194 | $ | 818,190 | $ | 814,795 | $ | 2,470,537 | $ | 2,387,164 | ||||||||||
| Investment income (loss) | 4,143 | 7,323 | 2,131 | 9,161 | 20,048 | |||||||||||||||
| Total revenues and other income | 876,337 | 825,513 | 816,926 | 2,479,698 | 2,407,212 | |||||||||||||||
| Costs and other deductions: | ||||||||||||||||||||
| Direct costs | 536,577 | 491,828 | 507,551 | 1,537,597 | 1,428,009 | |||||||||||||||
| General and administrative expenses | 76,733 | 77,076 | 71,375 | 219,868 | 228,308 | |||||||||||||||
| Research and engineering | 13,341 | 12,978 | 14,209 | 41,056 | 39,735 | |||||||||||||||
| Depreciation and amortization | 159,744 | 160,347 | 160,549 | 476,479 | 490,046 | |||||||||||||||
| Interest expense | 42,087 | 54,334 | 42,678 | 128,526 | 164,741 | |||||||||||||||
| Gain on disposition of Quail Tools | - | (415,557 | ) | - | - | (415,557 | ) | |||||||||||||
| Gain on bargain purchase | - | - | - | - | (116,499 | ) | ||||||||||||||
| Other, net | 11,428 | 24,470 | 5,682 | 3,717 | 75,334 | |||||||||||||||
| Total costs and other deductions | 839,910 | 405,476 | 802,044 | 2,407,243 | 1,894,117 | |||||||||||||||
| Income (loss) before income taxes | 36,427 | 420,037 | 14,882 | 72,455 | 513,095 | |||||||||||||||
| Income tax expense (benefit) | 20,443 | 117,571 | 16,405 | 53,732 | 155,655 | |||||||||||||||
| Net income (loss) | 15,984 | 302,466 | (1,523 | ) | 18,723 | 357,440 | ||||||||||||||
| Less: Net (income) loss attributable to noncontrolling interest | (27,149 | ) | (28,268 | ) | (20,807 | ) | (67,384 | ) | (81,164 | ) | ||||||||||
| Net income (loss) attributable to Nabors | $ | (11,165 | ) | $ | 274,198 | $ | (22,330 | ) | $ | (48,661 | ) | $ | 276,276 | |||||||
| Earnings (losses) per share: | ||||||||||||||||||||
| Basic | $ | (1.24 | ) | $ | 18.25 | $ | (2.04 | ) | $ | (4.81 | ) | $ | 18.99 | |||||||
| Diluted | $ | (1.24 | ) | $ | 16.85 | $ | (2.04 | ) | $ | (4.81 | ) | $ | 17.54 | |||||||
| Weighted-average number of common shares outstanding: | ||||||||||||||||||||
| Basic | 14,503 | 14,098 | 14,273 | 14,330 | 12,880 | |||||||||||||||
| Diluted | 14,503 | 15,321 | 14,273 | 14,330 | 14,092 | |||||||||||||||
| Adjusted EBITDA | $ | 245,543 | $ | 236,308 | $ | 221,660 | $ | 672,016 | $ | 691,112 | ||||||||||
| Adjusted operating income (loss) | $ | 85,799 | $ | 75,961 | $ | 61,111 | $ | 195,537 | $ | 201,066 | ||||||||||
7
NABORS INDUSTRIES LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
| September 30, | June 30, | December 31, | ||||||||||
| (In thousands) | 2026 | 2026 | 2025 | |||||||||
| ASSETS | ||||||||||||
| Current assets: | ||||||||||||
| Cash and short-term investments | $ | 475,145 | $ | 509,833 | $ | 940,738 | ||||||
| Accounts receivable, net | 511,663 | 443,417 | 391,705 | |||||||||
| Other current assets | 218,306 | 243,929 | 219,130 | |||||||||
| Total current assets | 1,205,114 | 1,197,179 | 1,551,573 | |||||||||
| Property, plant and equipment, net | 2,884,274 | 2,908,061 | 2,920,019 | |||||||||
| Other long-term assets | 353,929 | 314,705 | 318,065 | |||||||||
| Total assets | $ | 4,443,317 | $ | 4,419,945 | $ | 4,789,657 | ||||||
| LIABILITIES AND EQUITY | ||||||||||||
| Current liabilities: | ||||||||||||
| Current debt | $ | - | $ | - | $ | 377,492 | ||||||
| Trade accounts payable | 370,483 | 365,472 | 300,467 | |||||||||
| Other current liabilities | 309,510 | 268,167 | 315,042 | |||||||||
| Total current liabilities | 679,993 | 633,639 | 993,001 | |||||||||
| Long-term debt | 2,022,758 | 2,120,276 | 2,117,187 | |||||||||
| Other long-term liabilities | 245,298 | 224,152 | 241,826 | |||||||||
| Total liabilities | 2,948,049 | 2,978,067 | 3,352,014 | |||||||||
| Redeemable noncontrolling interest in subsidiary | 502,718 | 495,886 | 482,446 | |||||||||
| Equity: | ||||||||||||
| Shareholders' equity | 565,912 | 544,128 | 590,727 | |||||||||
| Noncontrolling interest | 426,638 | 401,864 | 364,470 | |||||||||
| Total equity | 992,550 | 945,992 | 955,197 | |||||||||
| Total liabilities and equity | $ | 4,443,317 | $ | 4,419,945 | $ | 4,789,657 | ||||||
8
NABORS INDUSTRIES LTD. AND SUBSIDIARIES
SEGMENT REPORTING
(Unaudited)
The following tables set forth certain information with respect to our reportable segments and rig activity:
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| September 30, | June 30, | September 30, | ||||||||||||||||||
| (In thousands, except rig activity) | 2026 | 2025 | 2026 | 2026 | 2025 | |||||||||||||||
| Operating revenues: | ||||||||||||||||||||
| U.S. Drilling | $ | 274,925 | $ | 249,836 | $ | 252,459 | $ | 768,528 | $ | 736,020 | ||||||||||
| International Drilling | 458,544 | 407,235 | 432,497 | 1,310,537 | 1,173,923 | |||||||||||||||
| Drilling Solutions | 116,065 | 141,942 | 110,640 | 332,927 | 405,404 | |||||||||||||||
| Rig Technologies (1) | 41,747 | 35,597 | 37,485 | 106,454 | 116,289 | |||||||||||||||
| Other reconciling items (2) | (19,087 | ) | (16,420 | ) | (18,286 | ) | (47,909 | ) | (44,472 | ) | ||||||||||
| Total operating revenues | $ | 872,194 | $ | 818,190 | $ | 814,795 | $ | 2,470,537 | $ | 2,387,164 | ||||||||||
| Adjusted EBITDA: (3) | ||||||||||||||||||||
| U.S. Drilling | $ | 99,391 | $ | 94,161 | $ | 94,081 | $ | 281,537 | $ | 288,693 | ||||||||||
| International Drilling | 145,718 | 127,551 | 130,533 | 397,532 | 360,695 | |||||||||||||||
| Drilling Solutions | 43,913 | 60,666 | 40,013 | 122,588 | 178,020 | |||||||||||||||
| Rig Technologies (1) | 4,987 | 3,770 | 3,180 | 8,672 | 14,507 | |||||||||||||||
| Other reconciling items (4) | (48,466 | ) | (49,840 | ) | (46,147 | ) | (138,313 | ) | (150,803 | ) | ||||||||||
| Total adjusted EBITDA | $ | 245,543 | $ | 236,308 | $ | 221,660 | $ | 672,016 | $ | 691,112 | ||||||||||
| Adjusted operating income (loss): (5) | ||||||||||||||||||||
| U.S. Drilling | $ | 33,385 | $ | 31,429 | $ | 30,961 | $ | 88,970 | $ | 102,816 | ||||||||||
| International Drilling | 64,275 | 45,476 | 45,860 | 150,892 | 114,485 | |||||||||||||||
| Drilling Solutions | 36,150 | 49,982 | 32,125 | 100,147 | 133,260 | |||||||||||||||
| Rig Technologies (1) | 3,037 | 877 | 1,497 | 2,646 | 6,933 | |||||||||||||||
| Other reconciling items (4) | (51,048 | ) | (51,803 | ) | (49,332 | ) | (147,118 | ) | (156,428 | ) | ||||||||||
| Total adjusted operating income (loss) | $ | 85,799 | $ | 75,961 | $ | 61,111 | $ | 195,537 | $ | 201,066 | ||||||||||
| Rig activity: | ||||||||||||||||||||
| Average Rigs Working: (7) | ||||||||||||||||||||
| Lower 48 | 72.8 | 59.2 | 67.8 | 68.7 | 60.7 | |||||||||||||||
| Other US | 9.4 | 10.0 | 10.0 | 9.8 | 9.2 | |||||||||||||||
| U.S. Drilling | 82.2 | 69.2 | 77.8 | 78.5 | 69.9 | |||||||||||||||
| International Drilling | 94.9 | 89.2 | 93.4 | 93.6 | 86.7 | |||||||||||||||
| Total average rigs working | 177.1 | 158.4 | 171.2 | 172.1 | 156.6 | |||||||||||||||
| Daily Rig Revenue: (6),(8) | ||||||||||||||||||||
| Lower 48 | $ | 34,764 | $ | 34,017 | $ | 33,555 | $ | 33,704 | $ | 34,002 | ||||||||||
| Other US | 48,612 | 70,035 | 50,073 | 51,141 | 68,302 | |||||||||||||||
| U.S. Drilling (10) | 36,343 | 39,219 | 35,680 | 35,880 | 38,527 | |||||||||||||||
| International Drilling | 52,524 | 49,596 | 50,860 | 51,262 | 49,583 | |||||||||||||||
| Daily Adjusted Gross Margin: (6),(9) | ||||||||||||||||||||
| Lower 48 | $ | 14,016 | $ | 13,151 | $ | 13,784 | $ | 13,677 | $ | 13,778 | ||||||||||
| Other US | 14,203 | 31,527 | 17,318 | 17,067 | 31,408 | |||||||||||||||
| U.S. Drilling (10) | 14,037 | 15,805 | 14,238 | 14,100 | 16,104 | |||||||||||||||
| International Drilling | 19,060 | 17,931 | 17,534 | 17,842 | 17,635 | |||||||||||||||
9
| (1) | Includes our oilfield equipment manufacturing activities. |
| (2) | Represents the elimination of inter-segment transactions related to our Rig Technologies operating segment. |
| (3) | Adjusted EBITDA represents net income (loss) before income tax expense (benefit), investment income (loss), interest expense, gain on disposition of Quail Tools, gain on bargain purchase, other, net and depreciation and amortization. Adjusted EBITDA is a non-GAAP financial measure and should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. In addition, adjusted EBITDA excludes certain cash expenses that the Company is obligated to make. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including adjusted EBITDA and adjusted operating income (loss), because it believes that these financial measures accurately reflect the Company’s ongoing profitability and performance. Securities analysts and investors use this measure as one of the metrics on which they analyze the Company’s performance. Other companies in this industry may compute these measures differently. A reconciliation of this non-GAAP measure to net income (loss), which is the most closely comparable GAAP measure, is provided in the table set forth immediately following the heading "Reconciliation of Non-GAAP Financial Measures to Net Income (Loss)". |
| (4) | Represents the elimination of inter-segment transactions and unallocated corporate expenses. |
| (5) | Adjusted operating income (loss) represents net income (loss) before income tax expense (benefit), investment income (loss), interest expense, gain on disposition of Quail Tools, gain on bargain purchase and other, net. Adjusted operating income (loss) is a non-GAAP financial measure and should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. In addition, adjusted operating income (loss) excludes certain cash expenses that the Company is obligated to make. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including adjusted EBITDA and adjusted operating income (loss), because it believes that these financial measures accurately reflect the Company’s ongoing profitability and performance. Securities analysts and investors use this measure as one of the metrics on which they analyze the Company’s performance. Other companies in this industry may compute these measures differently. A reconciliation of this non-GAAP measure to net income (loss), which is the most closely comparable GAAP measure, is provided in the table set forth immediately following the heading "Reconciliation of Non-GAAP Financial Measures to Net Income (Loss)". |
| (6) | Rig revenue days represents the number of days the Company's rigs are contracted and performing under a contract during the period. These would typically include days in which operating, standby and move revenue is earned. |
| (7) | Average rigs working represents a measure of the average number of rigs operating during a given period. For example, one rig operating 45 days during a quarter represents approximately 0.5 average rigs working for the quarter. On an annual period, one rig operating 182.5 days represents approximately 0.5 average rigs working for the year. Average rigs working can also be calculated as rig revenue days during the period divided by the number of calendar days in the period. |
| (8) | Daily rig revenue represents operating revenue, divided by the total number of revenue days during the quarter. |
| (9) | Daily adjusted gross margin represents operating revenue less direct costs, divided by the total number of rig revenue days during the quarter. |
| (10) | The U.S. Drilling segment includes the Lower 48, Alaska, and Gulf of Mexico operating areas. |
10
| NABORS INDUSTRIES LTD. AND SUBSIDIARIES | ||||||||||||||||||||
| Reconciliation of Earnings per Share | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| September 30, | June 30, | September 30, | ||||||||||||||||||
| (in thousands, except per share amounts) | 2026 | 2025 | 2026 | 2026 | 2025 | |||||||||||||||
| BASIC EPS: | ||||||||||||||||||||
| Net income (loss) (numerator): | ||||||||||||||||||||
| Income (loss), net of tax | $ | 15,984 | $ | 302,466 | $ | (1,523 | ) | $ | 18,723 | $ | 357,440 | |||||||||
| Less: net (income) loss attributable to noncontrolling interest | (27,149 | ) | (28,268 | ) | (20,807 | ) | (67,384 | ) | (81,164 | ) | ||||||||||
| Less: deemed dividends to SPAC public shareholders | — | (750 | ) | — | — | (750 | ) | |||||||||||||
| Less: distributed and undistributed earnings allocated to unvested shareholders | — | (8,828 | ) | — | — | (9,106 | ) | |||||||||||||
| Less: accrued distribution on redeemable noncontrolling interest in subsidiary | (6,832 | ) | (7,344 | ) | (6,757 | ) | (20,272 | ) | (21,792 | ) | ||||||||||
| Numerator for basic earnings per share: | ||||||||||||||||||||
| Adjusted income (loss), net of tax - basic | $ | (17,997 | ) | $ | 257,276 | $ | (29,087 | ) | $ | (68,933 | ) | $ | 244,628 | |||||||
| Weighted-average number of shares outstanding - basic | 14,503 | 14,098 | 14,273 | 14,330 | 12,880 | |||||||||||||||
| Earnings (losses) per share: | ||||||||||||||||||||
| Total Basic | $ | (1.24 | ) | $ | 18.25 | $ | (2.04 | ) | $ | (4.81 | ) | $ | 18.99 | |||||||
| DILUTED EPS: | ||||||||||||||||||||
| Adjusted income (loss), net of tax - basic | $ | (17,997 | ) | $ | 257,276 | $ | (29,087 | ) | $ | (68,933 | ) | $ | 244,628 | |||||||
| Add: after tax interest expense of convertible notes | — | 848 | — | — | 2,544 | |||||||||||||||
| Add: effect of reallocating undistributed earnings of unvested shareholders | — | 28 | — | — | 24 | |||||||||||||||
| Adjusted income (loss), net of tax - diluted | $ | (17,997 | ) | $ | 258,152 | $ | (29,087 | ) | $ | (68,933 | ) | $ | 247,196 | |||||||
| Weighted-average number of shares outstanding - basic | 14,503 | 14,098 | 14,273 | 14,330 | 12,880 | |||||||||||||||
| Add: if converted dilutive effect of convertible notes | — | 1,176 | — | — | 1,176 | |||||||||||||||
| Add: dilutive effect of potential common shares | — | 47 | — | — | 36 | |||||||||||||||
| Weighted-average number of shares outstanding - diluted | 14,503 | 15,321 | 14,273 | 14,330 | 14,092 | |||||||||||||||
| Earnings (losses) per share: | ||||||||||||||||||||
| Total Diluted | $ | (1.24 | ) | $ | 16.85 | $ | (2.04 | ) | $ | (4.81 | ) | $ | 17.54 | |||||||
11
NABORS INDUSTRIES LTD. AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF ADJUSTED EBITDA BY SEGMENT TO ADJUSTED OPERATING INCOME (LOSS) BY SEGMENT
(Unaudited)
| (In thousands) | ||||||||||||||||||||||||
| Three Months Ended September 30, 2026 | ||||||||||||||||||||||||
| U.S. Drilling | International Drilling | Drilling Solutions | Rig Technologies | Other reconciling items | Total | |||||||||||||||||||
| Adjusted operating income (loss) | $ | 33,385 | $ | 64,275 | $ | 36,150 | $ | 3,037 | $ | (51,048 | ) | $ | 85,799 | |||||||||||
| Depreciation and amortization | 66,006 | 81,443 | 7,763 | 1,950 | 2,582 | 159,744 | ||||||||||||||||||
| Adjusted EBITDA | $ | 99,391 | $ | 145,718 | $ | 43,913 | $ | 4,987 | $ | (48,466 | ) | $ | 245,543 | |||||||||||
| Three Months Ended September 30, 2025 | ||||||||||||||||||||||||
| U.S. Drilling | International Drilling | Drilling Solutions | Rig Technologies | Other reconciling items | Total | |||||||||||||||||||
| Adjusted operating income (loss) | $ | 31,429 | $ | 45,476 | $ | 49,982 | $ | 877 | $ | (51,803 | ) | $ | 75,961 | |||||||||||
| Depreciation and amortization | 62,732 | 82,075 | 10,684 | 2,893 | 1,963 | 160,347 | ||||||||||||||||||
| Adjusted EBITDA | $ | 94,161 | $ | 127,551 | $ | 60,666 | $ | 3,770 | $ | (49,840 | ) | $ | 236,308 | |||||||||||
| Three Months Ended June 30, 2026 | ||||||||||||||||||||||||
| U.S. Drilling | International Drilling | Drilling Solutions | Rig Technologies | Other reconciling items | Total | |||||||||||||||||||
| Adjusted operating income (loss) | $ | 30,961 | $ | 45,860 | $ | 32,125 | $ | 1,497 | $ | (49,332 | ) | $ | 61,111 | |||||||||||
| Depreciation and amortization | 63,120 | 84,673 | 7,888 | 1,683 | 3,185 | 160,549 | ||||||||||||||||||
| Adjusted EBITDA | $ | 94,081 | $ | 130,533 | $ | 40,013 | $ | 3,180 | $ | (46,147 | ) | $ | 221,660 | |||||||||||
| Nine Months Ended September 30, 2026 | ||||||||||||||||||||||||
| U.S. Drilling | International Drilling | Drilling Solutions | Rig Technologies | Other reconciling items | Total | |||||||||||||||||||
| Adjusted operating income (loss) | $ | 88,970 | $ | 150,892 | $ | 100,147 | $ | 2,646 | $ | (147,118 | ) | $ | 195,537 | |||||||||||
| Depreciation and amortization | 192,567 | 246,640 | 22,441 | 6,026 | 8,805 | 476,479 | ||||||||||||||||||
| Adjusted EBITDA | $ | 281,537 | $ | 397,532 | $ | 122,588 | $ | 8,672 | $ | (138,313 | ) | $ | 672,016 | |||||||||||
| Nine Months Ended September 30, 2025 | ||||||||||||||||||||||||
| U.S. Drilling | International Drilling | Drilling Solutions | Rig Technologies | Other reconciling items | Total | |||||||||||||||||||
| Adjusted operating income (loss) | $ | 102,816 | $ | 114,485 | $ | 133,260 | $ | 6,933 | $ | (156,428 | ) | $ | 201,066 | |||||||||||
| Depreciation and amortization | 185,877 | 246,210 | 44,760 | 7,574 | 5,625 | 490,046 | ||||||||||||||||||
| Adjusted EBITDA | $ | 288,693 | $ | 360,695 | $ | 178,020 | $ | 14,507 | $ | (150,803 | ) | $ | 691,112 | |||||||||||
12
NABORS INDUSTRIES LTD. AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF ADJUSTED GROSS MARGIN BY SEGMENT TO ADJUSTED OPERATING INCOME (LOSS) BY SEGMENT
(Unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| September 30, | June 30, | September 30, | ||||||||||||||||||
| (In thousands) | 2026 | 2025 | 2026 | 2026 | 2025 | |||||||||||||||
| Lower 48 - U.S. Drilling | ||||||||||||||||||||
| Adjusted operating income (loss) | $ | 31,434 | $ | 13,689 | $ | 24,722 | $ | 73,561 | $ | 54,199 | ||||||||||
| Plus: General and administrative costs | 5,018 | 4,745 | 4,974 | 15,316 | 14,043 | |||||||||||||||
| Plus: Research and engineering | 1,253 | 1,121 | 1,198 | 3,594 | 2,832 | |||||||||||||||
| GAAP Gross Margin | 37,705 | 19,555 | 30,894 | 92,471 | 71,074 | |||||||||||||||
| Plus: Depreciation and amortization | 56,230 | 52,120 | 54,093 | 163,918 | 157,425 | |||||||||||||||
| Adjusted gross margin | $ | 93,935 | $ | 71,675 | $ | 84,987 | $ | 256,389 | $ | 228,499 | ||||||||||
| Other - U.S. Drilling | ||||||||||||||||||||
| Adjusted operating income (loss) | $ | 1,951 | $ | 17,740 | $ | 6,239 | $ | 15,409 | $ | 48,617 | ||||||||||
| Plus: General and administrative costs | 411 | 568 | 407 | 1,276 | 1,869 | |||||||||||||||
| Plus: Research and engineering | 115 | 85 | 86 | 281 | 211 | |||||||||||||||
| GAAP Gross Margin | 2,477 | 18,393 | 6,732 | 16,966 | 50,697 | |||||||||||||||
| Plus: Depreciation and amortization | 9,776 | 10,612 | 9,027 | 28,649 | 28,452 | |||||||||||||||
| Adjusted gross margin | $ | 12,253 | $ | 29,005 | $ | 15,759 | $ | 45,615 | $ | 79,149 | ||||||||||
| U.S. Drilling | ||||||||||||||||||||
| Adjusted operating income (loss) | $ | 33,385 | $ | 31,429 | $ | 30,961 | $ | 88,970 | $ | 102,816 | ||||||||||
| Plus: General and administrative costs | 5,429 | 5,313 | 5,381 | 16,592 | 15,912 | |||||||||||||||
| Plus: Research and engineering | 1,368 | 1,206 | 1,284 | 3,875 | 3,043 | |||||||||||||||
| GAAP Gross Margin | 40,182 | 37,948 | 37,626 | 109,437 | 121,771 | |||||||||||||||
| Plus: Depreciation and amortization | 66,006 | 62,732 | 63,120 | 192,567 | 185,877 | |||||||||||||||
| Adjusted gross margin | $ | 106,188 | $ | 100,680 | $ | 100,746 | $ | 302,004 | $ | 307,648 | ||||||||||
| International Drilling | ||||||||||||||||||||
| Adjusted operating income (loss) | $ | 64,275 | $ | 45,476 | $ | 45,860 | $ | 150,892 | $ | 114,485 | ||||||||||
| Plus: General and administrative costs | 18,855 | 18,015 | 16,748 | 53,212 | 52,260 | |||||||||||||||
| Plus: Research and engineering | 1,824 | 1,665 | 1,826 | 5,399 | 4,578 | |||||||||||||||
| GAAP Gross Margin | 84,954 | 65,156 | 64,434 | 209,503 | 171,323 | |||||||||||||||
| Plus: Depreciation and amortization | 81,443 | 82,075 | 84,673 | 246,640 | 246,210 | |||||||||||||||
| Adjusted gross margin | $ | 166,397 | $ | 147,231 | $ | 149,107 | $ | 456,143 | $ | 417,533 | ||||||||||
Adjusted gross margin by segment represents adjusted operating income (loss) plus general and administrative costs, research and engineering costs and depreciation and amortization.
13
NABORS INDUSTRIES LTD. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO NET INCOME (LOSS)
(Unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| September 30, | June 30, | September 30, | ||||||||||||||||||
| (In thousands) | 2026 | 2025 | 2026 | 2026 | 2025 | |||||||||||||||
| Net income (loss) | $ | 15,984 | $ | 302,466 | $ | (1,523 | ) | $ | 18,723 | $ | 357,440 | |||||||||
| Income tax expense (benefit) | 20,443 | 117,571 | 16,405 | 53,732 | 155,655 | |||||||||||||||
| Income (loss) before income taxes | 36,427 | 420,037 | 14,882 | 72,455 | 513,095 | |||||||||||||||
| Investment (income) loss | (4,143 | ) | (7,323 | ) | (2,131 | ) | (9,161 | ) | (20,048 | ) | ||||||||||
| Interest expense | 42,087 | 54,334 | 42,678 | 128,526 | 164,741 | |||||||||||||||
| Gain on disposition of Quail Tools | - | (415,557 | ) | - | - | (415,557 | ) | |||||||||||||
| Gain on bargain purchase | - | - | - | - | (116,499 | ) | ||||||||||||||
| Other, net | 11,428 | 24,470 | 5,682 | 3,717 | 75,334 | |||||||||||||||
| Adjusted operating income (loss) (1) | 85,799 | 75,961 | 61,111 | 195,537 | 201,066 | |||||||||||||||
| Depreciation and amortization | 159,744 | 160,347 | 160,549 | 476,479 | 490,046 | |||||||||||||||
| Adjusted EBITDA (2) | $ | 245,543 | $ | 236,308 | $ | 221,660 | $ | 672,016 | $ | 691,112 | ||||||||||
(1) Adjusted operating income (loss) represents net income (loss) before income tax expense (benefit), investment income (loss), interest expense, gain on disposition of Quail Tools, gain on bargain purchase and other, net. Adjusted operating income (loss) is a non-GAAP financial measure and should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. In addition, adjusted operating income (loss) excludes certain cash expenses that the Company is obligated to make. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including adjusted EBITDA and adjusted operating income (loss), because it believes that these financial measures accurately reflect the Company’s ongoing profitability and performance. Securities analysts and investors use this measure as one of the metrics on which they analyze the Company’s performance. Other companies in this industry may compute these measures differently.
(2) Adjusted EBITDA represents net income (loss) before income tax expense (benefit), investment income (loss), interest expense, gain on disposition of Quail Tools, gain on bargain purchase, other, net and depreciation and amortization. Adjusted EBITDA is a non-GAAP financial measure and should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. In addition, adjusted EBITDA excludes certain cash expenses that the Company is obligated to make. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including adjusted EBITDA and adjusted operating income (loss), because it believes that these financial measures accurately reflect the Company’s ongoing profitability and performance. Securities analysts and investors use this measure as one of the metrics on which they analyze the Company’s performance. Other companies in this industry may compute these measures differently.
14
NABORS INDUSTRIES LTD. AND SUBSIDIARIES
RECONCILIATION OF NET DEBT TO TOTAL DEBT
(Unaudited)
| September 30, | June 30, | December 31, | ||||||||||
| (In thousands) | 2026 | 2026 | 2025 | |||||||||
| Current debt | $ | - | $ | - | $ | 377,492 | ||||||
| Long-term debt | 2,022,758 | 2,120,276 | 2,117,187 | |||||||||
| Total Debt | 2,022,758 | 2,120,276 | 2,494,679 | |||||||||
| Less: Cash and short-term investments | 475,145 | 509,833 | 940,738 | |||||||||
| Net Debt | $ | 1,547,613 | $ | 1,610,443 | $ | 1,553,941 | ||||||
15
NABORS INDUSTRIES LTD. AND SUBSIDIARIES
RECONCILIATION OF ADJUSTED FREE CASH FLOW TO
NET CASH PROVIDED BY OPERATING ACTIVITIES
(Unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| September 30, | June 30, | September 30, | ||||||||||||||||||
| (In thousands) | 2026 | 2025 | 2026 | 2026 | 2025 | |||||||||||||||
| Net cash provided by operating activities | $ | 238,893 | $ | 207,880 | $ | 135,242 | $ | 487,474 | $ | 447,425 | ||||||||||
| Add: Capital expenditures, net of proceeds from sales of assets | (164,370 | ) | (202,267 | ) | (122,900 | ) | (448,828 | ) | (503,277 | ) | ||||||||||
| Free cash flow | $ | 74,523 | $ | 5,613 | $ | 12,342 | $ | 38,646 | $ | (55,852 | ) | |||||||||
| Cash paid for acquisition related costs (1) | - | - | - | - | 40,816 | |||||||||||||||
| Adjusted free cash flow | $ | 74,523 | $ | 5,613 | $ | 12,342 | $ | 38,646 | $ | (15,036 | ) | |||||||||
(1) Cash paid related to the Parker Drilling acquisition
Adjusted free cash flow represents net cash provided by operating activities less cash used for capital expenditures, net of proceeds from sales of assets, and before cash paid for acquisition related costs. Management believes that adjusted free cash flow is an important liquidity measure for the company and that it is useful to investors and management as a measure of the company’s ability to generate cash flow, after reinvesting in the company for future growth, that could be available for paying down debt or other financing cash flows, such as dividends to shareholders. Adjusted free cash flow does not represent the residual cash flow available for discretionary expenditures. Adjusted free cash flow is a non-GAAP financial measure that should be considered in addition to, not as a substitute for or superior to, cash flow from operations reported in accordance with GAAP.
16
NABORS INDUSTRIES LTD. AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF QUAIL TOOLS FINANCIAL MEASURES
(Unaudited)
| Three months ended | ||||
| September 30, | ||||
| (In thousands) | 2025 | |||
| Drilling Solutions operating revenues | $ | 141,942 | ||
| Less: remaining Drilling Solutions business | (107,744 | ) | ||
| Quail Tools operating revenues | $ | 34,198 | ||
| Drilling Solutions adjusted operating income (loss) | $ | 49,982 | ||
| Less: remaining Drilling Solutions business | (35,720 | ) | ||
| Quail Tools adjusted operating income (loss) | $ | 14,262 | ||
| Quail Tools depreciation and amortization | 6,043 | |||
| Quail Tools adjusted EBITDA | $ | 20,305 | ||
17
Exhibit 99.2
| N A B O R S . C O M Technology. Expertise. Performance. Drilling for a better tomorrow. DELIVERING ENERGY. ADVANCING THE WORLD. 3Q 2026 Earnings Presentation NYSE: NBR www.nabors.com |
| FORWARD-LOOKING STATEMENTS We often discuss expectations regarding our future markets, demand for our products and services, and our performance in our annual, quarterly, and current reports, press releases, and other written and oral statements. Such statements, including statements in this document that relate to matters that are not historical facts, are “forward-looking statements” within the meaning of the safe harbor provisions of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. These “forward-looking statements” are based on our analysis of currently available competitive, financial and economic data and our operating plans. They are inherently uncertain, and investors should recognize that events and actual results could turn out to be significantly different from our expectations. Factors to consider when evaluating these forward-looking statements include, but are not limited to: • geopolitical events, pandemics, global and regional conflicts and other macro-events and their respective and collective impact on our operations as well as oil and gas markets and prices; • fluctuations and volatility in worldwide prices of and demand for oil and natural gas; • fluctuations in levels of oil and natural gas exploration and development activities; • fluctuations in the demand for our services; • competitive and technological changes and other developments in the oil and gas and oilfield services industries; • our ability to renew customer contracts in order to maintain competitiveness; • the existence of operating risks inherent in the oil and gas and oilfield services industries; • the possibility of the loss of one or a number of our large customers; • the amount and nature of our future capital expenditures and how we expect to fund our capital • expenditures; • the occurrence of cybersecurity incidents, attacks or other breaches to our information technology systems; • the impact of our long-term indebtedness and other financial commitments on our financial and operating • flexibility; • our access to, and the cost of, capital, including the impact of a downgrade in our credit rating, covenant restrictions, availability under our secured revolving credit facility, future issuances of debt or equity securities and the global interest rate environment; • our dependence on our operating subsidiaries and investments to meet our financial obligations; • our ability to retain skilled employees; • our ability to complete, and realize the expected benefits of, strategic transactions, such as our acquisition of Parker Drilling Company (“Parker”); • changes in tax laws and the possibility of changes in other laws and regulations; • the possibility of political or economic instability, civil disturbance, war or acts of terrorism in any of the countries in which we do business; • global views on and the regulatory environment related to energy transition and our ability to implement our energy transition initiatives; • potential long-lived asset impairments; • the possibility of changes to U.S. trade policies and regulations, including the imposition of new tariffs, trade embargoes or sanctions; • general economic conditions, including the capital and credit markets; and • our ability to utilize NOLs. Our businesses depend, to a large degree, on the level of spending by oil and gas companies for exploration, development and production activities. Therefore, sustained lower oil or natural gas prices that have a material impact on exploration, development or production activities could also materially affect our financial position, results of operations and cash flows. The above description of risks and uncertainties is by no means all-inclusive but is designed to highlight what we believe are important factors to consider. For a discussion of these factors and other risks and uncertainties, please refer to our filings with the Securities and Exchange Commission ("SEC"), including those contained in our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q, which are available at the SEC's website at www.sec.gov. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law. Non-GAAP Financial Measures This presentation refers to certain “non-GAAP” financial measures, such as adjusted EBITDA, net debt, and adjusted gross margin. The components of these non-GAAP measures are computed by using amounts that are determined in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Other companies in our industry may compute these metrics differently. These measures have limitations and should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. 2 |
| THE NABORS PLATFORM 3 INTERNATIONAL DRILLING 51% 3Q 2026 REVENUE BY SEGMENT U.S. DRILLING 31% DRILLING SOLUTIONS 13% RIG TECHNOLOGIES 5% ONE PLATFORM. SHARED DATA. BETTER EXECUTION. DRILLING OPERATIONS U.S. & key international markets DRILLING SOLUTIONS RIG TECHNOLOGIES Equipment, automation, digitization & lifecycle support Advanced software analytics & real-time insights Vertically integrated drilling and technology solutions. Aligned to drive advanced drilling performance. |
| VERTICAL INTEGRATION DRIVES SIGNIFICANT VALUE 4 INTERNATIONAL DRILLING U.S. DRILLING DRILLING SOLUTIONS* RIG TECHNOLOGIES Automated technology that enables greater efficiency and consistency. Deploying fit-for-purpose rigs in major markets. Operating a fleet of high-spec rigs across key U.S. basins. Using the rig as an integrated platform to deliver differentiated services. Integration across operations, solutions, and technology allows Nabors to optimize performance, reliability, and customer outcomes. * Drilling Solutions is also referred to as “NDS” throughout this presentation. |
| >$9 million Reduction in annual interest Building shareholder value 3Q HIGHLIGHTS. 5 MOMENTUM ACCELERATES. Note: For the reconciliation of adjusted gross margin to the most comparable GAAP measures see non-GAAP reconciliations in Appendix INTERNATIONAL DRILLING 95 average rig count up 1.5 rigs sequentially >$19,000 average daily gross margin a record high, and expecting another record next quarter Growing our presence in key markets BALANCE SHEET PROGRESS 73 average rig count up 5 rigs sequentially >$14,000 average daily gross margin up $232 sequentially, materially exceeding our guidance Driven by strong commercial and operational excellence DRILLING SOLUTIONS ~47% adjusted gross margin 15% of total adjusted EBITDA from operations Driven by strong commercial and operational excellence LOWER 48 DRILLING BROAD-BASED IMPROVEMENT Sequential EBITDA growth across every operating segment ABOVE EXPECTATIONS Results exceeded implied guidance KEEPING OUR COMMITMENTS Reduced gross debt $100 million gross debt reduction fulfilling our commitment |
| 6 These drivers support value creation through operational performance, disciplined capital allocation, and technology-enabled differentiation. Selective international growth aligned with customer demand and returns. Disciplined focus on improving capital structure and reducing debt. Operational excellence in the U.S. Lower 48. Technology-led innovation with demonstrated results. 1 2 3 4 |
| 7 OUR INTERNATIONAL FRANCHISE DEEP ROOTS. STRONG POSITIONS. EXPANDING OPPORTUNITIES. 1 Selective International Growth Aligned with Customer Demand and Returns Decades of investment in assets, relationships, infrastructure and technology have created durable regional platforms. DRILLING NDS RIG TECHNOLOGIES MIDDLE EAST • SANAD market leadership serves as a cornerstone platform in Saudi Arabia. • Three deep-gas drilling rigs in Kuwait. • NDS is the premier casing-running contractor in UAE and Saudi Arabia. LATIN AMERICA MIDDLE EAST Integrated capabilities across established markets. LATIN AMERICA • Drilling market leader in Argentina and Colombia. • Strong and growing NDS penetration. • Four offshore platform rigs in Mexico. • Deploying an idle U.S. rig for a multi-year contract in Venezuela. STRATEGICALLY POSITIONED FOR GROWTH Tracking 80+ opportunities globally OUR DISCIPLINED APPROACH • Prioritizing markets with attractive resource potential and established customer relationships. • Leveraging our portfolio of existing assets, infrastructure and technology. |
| $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2024 2025 2026 INTERNATIONAL DRILLING DAILY METRICS Daily Rig Revenue Daily Adjusted Gross Margin 50 55 60 65 70 75 80 85 90 95 100 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2024 2025 2026 INTERNATIONAL DRILLING AVERAGE RIG COUNT 8 IMPROVING INTERNATIONAL RIG ECONOMICS INTERNATIONAL DRILLING Disciplined capital deployment focused on returns and long-term contracts. SANAD newbuilds and redeployments in core markets are increasingly generating premium pricing. Selective International Growth Aligned with Customer Demand and Returns 17% GROWTH In average working rig count Industry rig counts in markets where we operate were essentially flat over the same period of time. Note: Daily rig revenue and adjusted daily gross margin for drilling rigs only, excludes Nabors Drilling Solutions 1 Since 1Q 2024: 19% GROWTH In average daily adjusted gross margin |
| 9 3 2 2 1 1 -3 -1 -1 -1 -1 1 -5 85 94 96 92 Rig Count 70 75 80 85 90 95 100 105 110 STRATEGIC GROWTH IN KEY INTERNATIONAL MARKETS 9 GLOBAL GROWTH PLATFORM Disciplined deployment into the world’s most attractive drilling markets – aligned with customer demand and target returns. Note: Estimates are based on current market conditions and information received from third parties, which are subject to change Selective International Growth Aligned with Customer Demand and Returns INTERNATIONAL DRILLING RIG COUNT +11 rigs Since YE 24 through September 30, 2026 ~20 Countries 1 AWARDED / SUSPENSIONS OPERATING END OF CONTRACT |
| $0 $10,000 $20,000 $30,000 $40,000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2024 2025 2026 L48 DRILLING DAILY METRICS Daily Rig Revenue Daily Adjusted Gross Margin L48 DRILLING 28% GROWTH In working rig count We gained market share over the same period of time. Since our trough in November 2025: 7% GROWTH In average daily adjusted gross margin 0 10 20 30 40 50 60 70 80 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2024 2025 2026 L48 DRILLING AVERAGE RIG COUNT 10 EFFICIENCY AND PERFORMANCE IMPROVING MARGINS Operational efficiency, performance, pricing and cost discipline supported by a high-quality customer portfolio are improving Lower 48 margins. 2 Operational Excellence in the U.S. Lower 48 Note: Daily rig revenue and adjusted daily gross margin for drilling rigs only, excludes Nabors Drilling Solutions |
| L48 DRILLING 11 ~20% DECLINE IN LOWER-48 MARKETED RIGS Operational Excellence in the U.S. Lower 48 -34% -13% -26% -23% -14% NBR Peer #1 Peer #2 Peer #3 Peer #4 YEAR-END MARKETED RIG COUNTS FOR SELECTED CONTRACTORS, 2023-2025 2023 2024 2025 2023 2024 2025 2023 2024 2025 2023 2024 2025 2023 2024 2025 Total L48 Marketed Rigs: 760 → 600 (~20% decline) Higher utilization supports progressive pricing power. 2 |
| 400 600 800 $- $20 $40 $60 $80 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2024 2025 2026 U.S BKR Rig Count $ millions U.S. NDS U.S. Revenue BKR Rig Count 0 200 400 600 800 1000 1200 $- $10 $20 $30 $40 $50 $60 $70 $80 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2024 2025 2026 Select country BKR rig count $ millions INTERNATIONAL NDS International Revenue BKR Rig Count U.S. INTERNATIONAL 12 DRILLING SOLUTIONS – GLOBAL MARKET REACH Technology-Led Innovation with Demonstrated Results L48 – OFFSHORE - ALASKA * Select country rig count per Baker Hughes - countries in which NDS operated ** On 8/3/25 Baker Hughes updated its worldwide rig count to reflect more than 230 rigs operating in Saudi Arabia >15 COUNTRIES ($ millions) 2Q’25 3Q’25 4Q’25 1Q’26 2Q’26 3Q’26 Revenue $41 $42 $41 $40 $44 $47 Avg. rig count 571 540 548 548 554 589 ($ millions) 2Q’25 3Q’25 4Q’25 1Q’26 2Q’26 3Q’26 Revenue $67 $66 $67 $67 $67 $69 Avg. rig count 721 935 942 972 895 979 Excluding Quail Tools 3 * ** |
| 0% 20% 40% 60% 80% 100% $- $100 $200 $300 $400 $500 2021 2022 2023 2024 2025 9/30/26* $ millions REVENUE, ADJUSTED EBITDA & FREE CASH FLOW CONVERSION** Revenue Adjusted EBITDA FCF Conversion DRILLING SOLUTIONS EXPANSION - GREATER ADOPTION & IMPROVING SERVICE-LINE MIX 13 DRILLING SOLUTIONS Technology-Led Innovation with Demonstrated Results * YTD 9/30/2026 revenue and adjusted EBITDA are annualized; adjusted free cash flow conversion is YTD ** FCF conversion is calculated as adjusted EBITDA less capex divided by adjusted EBITDA * ** Software services driving strong free cash flow conversion** ~91% FCF CONVERSION YTD 2026 NOTE: All values on this slide exclude Quail Tools 3 |
| - 100 200 300 400 500 600 1Q 2Q 3Q 2026 Average rigs working L48 MARKET AVERAGE RIGS WORKING $- $2 $4 $6 $8 $10 $12 $14 $16 1Q 2Q 3Q 2026 $ millions NDS L48 - THIRD PARTY REVENUE - 10 20 30 40 50 60 70 80 90 1Q 2Q 3Q 2026 Average rigs working L48 NABORS AVERAGE RIGS WORKING $- $5 $10 $15 $20 $25 $30 $35 1Q 2Q 3Q 2026 $ millions NDS L48 NABORS REVENUE NDS GROWTH DRIVEN BY INCREASED PRODUCT PENETRATION 14 Technology-Led Innovation with Demonstrated Results 23% 11% 12% 7% 3 LOWER 48 – NABORS RIGS LOWER 48 – THIRD PARTY RIGS |
| The deployment of a Nabors PACE®-B rig at Project Obsidian in Oregon marks an important step in advancing our geothermal investment strategy and unlocking a compelling long-term growth opportunity in an attractive adjacent energy market. FROM VENTURE INVESTMENT TO FIELD DEPLOYMENT. INITIAL PHASE PHASE I OF III 50 MW PHASE I CAPACITY 300–500°C SUPERHOT ROCK FIRST-OF-ITS-KIND SUPERHOT GEOTHERMAL PROJECT Project Obsidian is targeted to be a 1+ GW power plant using a combination of Quaise’s millimeter wave drilling technology and proven conventional drilling. 15 |
| 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 3Q'26 Gross Leverage (x) 2.0x 3.2x 3.2x 2.6x 2.2x 2.4x 2.5x 3.3x 5.8x 7.5x 4.8x 4.2x 5.3x 6.8x 3.6x 3.5x 2.9x 2.8x 2.3x Gross Debt ($ billions) $3.8 $3.9 $4.4 $4.6 $4.4 $3.9 $4.3 $3.7 $3.6 $4.0 $3.6 $3.3 $3.0 $3.3 $2.5 $3.1 $2.5 $2.5 $2.0 0.0x 1.0x 2.0x 3.0x 4.0x 5.0x 6.0x 7.0x 8.0x $- $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 $5.0 Gross leverage $ billions GROSS DEBT AND GROSS LEVERAGE Gross Leverage (x) Gross Debt ($ billions) GROSS LEVERAGE REDUCED TO LOWEST LEVEL SINCE 2013 16 Disciplined Focus on Improving Capital Structure and Reducing Debt * Gross Leverage is period-end gross debt divided by trailing twelve-month adjusted EBITDA 4 * * |
| SIGNIFICANT HEADWAY TOWARD ~1x NET LEVERAGE GOAL 17 4 Disciplined Focus on Improving Capital Structure and Reducing Debt 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 3Q'26 Net Leverage (x) 1.7x 2.3x 2.6x 2.3x 1.8x 2.1x 2.2x 3.0x 5.3x 6.7x 4.1x 3.6x 4.4x 4.7x 2.9x 2.3x 2.4x 1.7x 1.7x Net Debt ($ billions) $3.2 $2.8 $3.6 $4.1 $3.6 $3.4 $3.8 $3.4 $3.3 $3.7 $3.1 $2.9 $2.5 $2.3 $2.1 $2.1 $2.1 $1.6 $1.5 0.0x 1.0x 2.0x 3.0x 4.0x 5.0x 6.0x 7.0x 8.0x $- $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 Net leverage $ billions NET DEBT AND NET LEVERAGE Net Leverage (x) Net Debt ($ billions) * Net Leverage is period-end net debt divided by trailing twelve-month adjusted EBITDA * * |
| 250 550 550 700 100 $0 $200 $400 $600 $800 2027 2028 2029 2030 2031 2032 $ millions 18 ACTIVELY MANAGING MATURITY PROFILE Disciplined Focus on Improving Capital Structure and Reducing Debt Notes Gross Debt Management AFTER THE ˚100 MILLION PARTIAL REDEMPTION OF 2030 NOTES: (Completed in 3Q 2026) * Cash includes short-term investments ($ millions) 12/31/24 12/31/25 6/30/26 9/30/26 Gross Debt $2,505 $2,495 $2,120 $2,023 Cash* $397 $941 $510 $475 Net Debt $2,108 $1,554 $1,610 $1,548 4 |
| 19 EXECUTING TO PLAN. POSITIONED TO DELIVER. Raising our free cash flow projection for 2026. U.S. DRILLING • Lower 48 average rig count of ~75, exit 76-77 rigs • Lower 48 average daily adjusted gross margin of $14,500 - $14,700 • Alaska and Gulf of America adjusted EBITDA of ~$12 million INTERNATIONAL DRILLING • Average rig count of 92 – 93, exit 92 rigs • Average daily adjusted gross margin of ~$19,500 DRILLING SOLUTIONS • Adjusted EBITDA of ~$46 million RIG TECHNOLOGIES • Adjusted EBITDA of ~$8 million CAPITAL EXPENDITURES • Capital expenditures of $250 - $260 million, including $140 - $150 million for SANAD newbuilds in Saudi Arabia ADJUSTED FREE CASH FLOW FOURTH QUARTER 2026 OUTLOOK • Adjusted free cash flow generation of $60-70 million, including free cash consumption at SANAD of ~$20 million |
| 20 EXECUTING TO PLAN. POSITIONED TO DELIVER. Raising our free cash flow projection for 2026. FULL YEAR 2026 OUTLOOK ~˚930 MILLION CAPITAL EXPENDITURES ˚710 - ˚720 MILLION ADJUSTED EBITDA ˚100 - ˚110 MILLION ADJUSTED FREE CASH FLOW Including ~$20 million of SANAD free cash consumption Including $295 - $305 million for SANAD newbuilds |
|
| RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO NET INCOME (LOSS) 22 Adjusted EBITDA represents net income (loss) before, income taxes, investment income (loss), interest expense, gain on disposition of Quail Tools, other, net and depreciation and amortization. Adjusted EBITDA is a non-GAAP financial measure and should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. In addition, adjusted EBITDA excludes certain cash expenses that the Company is obligated to make. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including adjusted EBITDA and adjusted operating income (loss), because it believes that these financial measures accurately reflect the Company’s ongoing profitability and performance. Securities analysts and investors use this measure as one of the metrics on which they analyze the Company’s performance. Other companies in this industry may compute these measures differently. A reconciliation of this non-GAAP measure to net income (loss), which is the most closely comparable GAAP measure, is provided in the table below. (In thousands) September 30 June 30, September 30, 2025 2026 2026 Net income (loss) 302,466 $ (1,523) $ 15,984 $ Income tax expense (benefit) 117,571 16,405 20,443 Income (loss) before income taxes 420,037 14,882 36,427 Investment (income) loss (7,323) (2,131) (4,143) Interest Expense 54,334 42,678 42,087 Gain on disposition of Quail Tools (415,557) - - Other, net 24,470 5,682 11,428 Adjusted Operating Income (loss) 75,961 61,111 85,799 Depreciation and Amortization 160,347 160,549 159,744 Adjusted EBITDA $ 236,308 221,660 $ 245,543 $ Three Months Ended |
| RECONCILIATION OF U.S. DRILLING SEGMENT ADJUSTED GROSS MARGIN TO U.S. DRILLING SEGMENT ADJUSTED OPERATING INCOME 23 Adjusted gross margin by segment represents adjusted operating income (loss) plus general and administrative costs, research and engineering costs and depreciation and amortization. September 30, June 30, September 30, 2025 2026 2026 Lower 48 - U.S. - Drilling Adjusted operating income 13,689 $ 24,722 $ 31,434 $ Plus: General and administrative costs 4,745 4,974 5,018 Plus: Research and engineering 1,121 1,198 1,253 GAAP Gross Margin 19,555 30,894 37,705 Plus: Depreciation and amortization 52,120 54,093 56,230 Adjusted gross margin $ 84,987 71,675 $ 93,935 $ Other - U.S. - Drilling Adjusted operating income 17,740 $ 6,239 $ 1,951 $ Plus: General and administrative costs 568 407 411 Plus: Research and engineering 85 86 115 GAAP Gross Margin 18,393 6,732 2,477 Plus: Depreciation and amortization 9,027 10,612 9,776 Adjusted gross margin $ 15,759 29,005 $ 12,253 $ U.S. - Drilling Adjusted operating income 31,429 $ 30,961 $ 33,385 $ Plus: General and administrative costs 5,313 5,381 5,429 Plus: Research and engineering 1,206 1,284 1,368 GAAP Gross Margin 37,948 37,626 40,182 Plus: Depreciation and amortization 63,120 62,732 66,006 Adjusted gross margin $ 100,680 100,746 $ 106,188 $ (In thousands) |
| RECONCILIATION OF NET DEBT TO TOTAL DEBT 24 Net debt is computed by subtracting the sum of cash, cash equivalents and short-term investments from total debt. This non-GAAP measure 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 net debt, because it believes that this financial measure accurately measures the Company’s liquidity. In addition, securities analysts and investors use this measure as one of the metrics on which they analyze the Company’s performance. Other companies in this industry may compute this measure differently. A reconciliation of net debt to total debt, which is the nearest comparable GAAP financial measure, is provided in the table below. December 31, June 30, September 30, 2025 2026 2026 Current Debt 377,492 $ - $ - $ Long-Term Debt 2,117,187 2,120,276 2,022,758 Total Debt 2,494,679 2,120,276 2,022,758 Cash & Short-term Investments 940,738 509,833 475,145 Net Debt 1,553,941 1,610,443 1,547,613 (In thousands) |
| RECONCILIATION OF ADJUSTED EBITDA BY SEGMENT TO ADJUSTED OPERATING INCOME 25 Three Months Ended September 30, 2026 U.S. Drilling International Drilling Drilling Solutions Rig Technologies Other reconciling items Total Adjusted operating income (loss) 33,385 $ 64,275 $ 36,150 $ 3,037 $ (51,048) $ 85,799 $ Depreciation and amortization 66,006 81,443 7,763 1,950 2,582 159,744 Adjusted EBITDA $ 99,391 145,718 $ 43,913 $ 4,987 $ (48,466) $ 245,543 $ Three Months Ended June 30, 2026 U.S. Drilling International Drilling Drilling Solutions Rig Technologies Other reconciling items Total Adjusted operating income (loss) 30,961 $ 45,860 $ 32,125 $ 1,497 $ (49,332) $ 61,111 $ Depreciation and amortization 63,120 84,673 7,888 1,683 3,185 160,549 Adjusted EBITDA $ 94,081 130,533 $ 40,013 $ 3,180 $ (46,147) $ 221,660 $ Three Months Ended September 30, 2025 U.S. Drilling International Drilling Drilling Solutions Rig Technologies Other reconciling items Total Adjusted operating income (loss) 31,429 $ 45,476 $ 49,982 $ 877 $ (51,803) $ 75,961 $ Depreciation and amortization 62,732 82,075 10,684 2,893 1,963 160,347 Adjusted EBITDA $ 94,161 127,551 $ 60,666 $ 3,770 $ (49,840) $ 236,308 $ (In thousands) |
| Jun. 30, 2025 Sep. 30, 2025 Dec. 31, 2025 Mar. 31, 2026 Jun. 30, 2026 Sep. 30, 2026 Drilling Solutions - U.S. 103,193 $ 76,361 $ 41,140 $ 39,647 $ 43,972 $ 47,145 $ Drilling Solutions - International 65,581 67,090 66,739 66,575 66,668 68,920 Total Drilling Solutions - operating revenues $ 170,283 141,942 $ 107,879 $ 106,222 $ 110,640 $ 116,065 $ Drilling Solutions - U.S. 103,193 $ 76,361 $ 41,140 $ 39,647 $ 43,972 $ 47,145 $ Quail Tools (34,198) (62,582) - - - - Total Drilling Solutions - operating revenues excluding Quail Tools $ 42,163 40,611 $ 41,140 $ 39,647 $ 43,972 $ 47,145 $ 26 (In thousands) For the three months ended RECONCILIATION OF DRILLING SOLUTIONS BY GEOGRAPHY |
| RECONCILIATION OF ADJUSTED FREE CASHFLOW TO NET CASH PROVIDED BY OPERATING ACTIVITIES 27 Adjusted free cash flow represents net cash provided by operating activities less cash used for capital expenditures, net of proceeds from sales of assets, and before cash paid for acquisition related costs. Management believes that adjusted free cash flow is an important liquidity measure for the company and that it is useful to investors and management as a measure of the company’s ability to generate cash flow, after reinvesting in the company for future growth, that could be available for paying down debt or other financing cash flows, such as dividends to shareholders. Adjusted free cash flow does not represent the residual cash flow available for discretionary expenditures. Adjusted free cash flow is a non-GAAP financial measure that should be considered in addition to, not as a substitute for or superior to, cash flow from operations reported in accordance with GAAP. Three Months Ended (In thousands) September 30 June 30 September 30 2025 2026 2026 Net cash provided by operating activities 207,880 $ 135,242 $ 238,893 $ Add: Capital expenditures, net of proceeds from sales of assets (202,267) (122,900) (164,370) Adjusted free cash flow $ 5,613 12,342 $ 74,523 $ |
| NABORS INDUSTRIES LTD. NABORS CORPORATE SERVICES 515 W. Greens Road Suite 1200 Houston, TX 77067-4525 @ n a b o r s g l o b a l NABORS INDUSTRIES LTD NYSE: NBR nabors.com CONTACT US: William C. Conroy, CFA VP - Corporate Development and Investor Relations William.Conroy@nabors.com Kara K. Peak Director - Corporate Development and Investor Relations Kara.Peak@nabors.com |
