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Mar 31, 2021
Nabors Q1 2021 Earnings Report
Nabors' first quarter results exceeded expectations, maintaining strong execution across the portfolio.
Key Takeaways
Nabors reported first quarter 2021 operating revenues of $461 million. The net loss from continuing operations attributable to Nabors common shareholders for the quarter was $141 million, or $20.16 per share. First quarter adjusted EBITDA of $108 million was in line with the strong fourth quarter. Nabors cut total debt by $70 million during the first quarter.
First quarter results exceeded expectations, with strong execution across the portfolio.
Adjusted EBITDA of $108 million was in line with the strong fourth quarter.
Global oil inventories drew down further, contributing to the rise in commodity prices and increased drilling activity.
Free cash flow generation was outstanding, and total debt was reduced by $70 million.
Forward Guidance
Nabors anticipates continued increases in drilling activity both in the U.S. and internationally, with pricing expected to generally increase in the second half of 2021. Second quarter average Lower 48 rig count is expected to increase by approximately six to seven rigs over the first quarter average. Nabors expects second quarter drilling margins to exceed $7,000.
Positive Outlook
- Continued increases in drilling activity expected in the U.S. and internationally.
- Pricing expected to generally increase in the second half of 2021.
- Second quarter average Lower 48 rig count is expected to increase by approximately six to seven rigs over the first quarter average.
- Nabors expects second quarter drilling margins to exceed $7,000.
- Second quarter Drilling Solutions adjusted EBITDA to be in line with the first quarter.
Challenges Ahead
- Second quarter outlook for the International segment includes daily margins softening by up to $500.
- Following the seasonal activity peak, the Company expects an average rig count of slightly more than six rigs versus almost 14 in the prior quarter.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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