Q2 2024 Nabors Industries Ltd Earnings Call Transcript
Key Points
- Total adjusted EBITDA in the second quarter exceeded expectations, reaching $218 million.
- International segment showed strong performance with an increase in rig count and new deployments in Algeria, Argentina, and Saudi Arabia.
- Drilling solutions and rig technologies segments generated a combined EBITDA of $40 million, accounting for more than 18% of total EBITDA.
- Successful capital structure management with an expanded and extended credit facility and issuance of $550 million in seven-year notes.
- Strong focus on sustainability with initiatives like the PowerTAP module, which reduces diesel fuel consumption and emissions.
- Lower 48 industry land rig count declined by 37 rigs, or 6%, during the second quarter.
- US drilling segment experienced a decrease in revenue by $12.3 million, or 4.5%, primarily due to rig count reductions.
- Lower 48 drilling EBITDA decreased by $6.8 million, or 6.9%, compared to the prior quarter.
- Revenue from rig technologies was slightly below the first-quarter level due to sluggish capital equipment revenue in the US.
- Continued high levels of churn in the Lower 48 market, impacting rig count and pricing margins.
Good day, and welcome to Q2 2024 Nabors Industries Limited earnings call. (Operator Instructions). Please note, this event is being recorded.
I would now like to turn the conference over to William Conroy, Vice President of Corporate Development and Investor Relations. Please go ahead, sir.
Good morning, everyone. Thank you for joining Nabors second-quarter 2024 earnings conference call. Today, we will follow our customary format with Tony Petrello, our Chairman, President, and Chief Executive Officer; and William Restrepo, our Chief Financial Officer; providing their perspectives on the quarter's results along with insights into our markets and how we expect Nabors to perform in these markets.
In support of these remarks, a slide deck is available, both as a download within the webcast and in the Investor Relations section of nabors.com. Instructions for the replay of this call are posted on the website as well.
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