The following is a summary of the Nabors Industries Ltd. (NBR) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Nabors Industries generated total adjusted EBITDA of $221 million in Q1 2024, exceeding expectations.

• Revenue from operations totaled $734 million, a 1.1% growth from the last quarter.

• Cost reductions were seen as daily operational expenses decreased, reflecting excellent expense management.

• Average rig count grew by four rigs, contributing to increased revenue.

• Drilling Solutions and Rig Technologies generated over 17% of total EBITDA with $39 million.

• The company expects 2024 EBITDA to be between $920 million to $930 million, showing a clear growth trajectory.

• Anticipated operational expenses include interest costs of about $180 million and cash tax of around $50 million.

• Free cash flow for the whole company is expected to be between $100 million and $200 million in 2024.

Business Progress:

• Nabors has expansion plans with schedules for the deployment of seven international rigs in 2024.

• Negotiations for three rigs in Argentina have been successful, with deployment plans in 2024 and early 2025.

• The company has made significant progress in the Middle East and Algeria.

• Energy transition strategies focus on improving operational efficiency and reducing emission intensity.

• They are working on growing NDS revenue on their own Lower 48 and international rigs.

• Continued focus on reducing net debt and improving credit scores.

• 10 rigs are planned for Saudi Arabia and 3 for Argentina, spread from 2024-2026.

• 14 deployments are pending for 2024, with an additional 3 expected for 2025, with an eye on new opportunities in Latin America, the Middle East, and the Eastern Hemisphere.

• Further expansion of Rig Tech is being considered internationally due to recent awards and the energy transition.

• It is estimated that total EBITDA run rate of all new rigs will be $125 million by the end of 2025.

More details: Nabors Industries IR

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