Q3 2024 Nabors Industries Ltd Earnings Call Transcript
Key Points
- Nabors Industries Ltd (NBR) reported an adjusted EBITDA of $222 million for the third quarter, aligning with expectations.
- The acquisition of Parker Wellbore is expected to accelerate Nabors' strategy, particularly in the drilling solutions segment, and is anticipated to be beneficial for shareholders.
- International markets remain a strong growth area for Nabors, with several rig deployments expected by the end of 2024 and additional opportunities in 2025.
- The company's drilling solutions and rig technologies segments generated a combined EBITDA of over $40 million, with an increased contribution to the company's consolidated EBITDA.
- Nabors' focus on technology and innovation, including automation and performance software, is driving growth and improving margins, particularly in international markets.
- The US Lower 48 industry rig count decreased by approximately 3% sequentially, indicating a challenging domestic market environment.
- Three rigs in Saudi Arabia were suspended for a year, impacting operations, although these were lower-margin rigs.
- The company's free cash flow was impacted by significant capital expenditures, particularly related to the SANAD newbuild program.
- Revenue from the US drilling segment decreased slightly, reflecting a challenging pricing environment and contract rollovers.
- Rig technologies segment experienced a decline in EBITDA due to lower sales of energy transition products and spare parts in the US.
Good day, and welcome to the third-quarter 2024 Nabors Industries earnings conference 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.
Good morning, everyone. Thank you for joining Nabors' third-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. With us today,
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