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Sep 30, 2024
Nabors Q3 2024 Earnings Report
Nabors reported mixed results with international growth offsetting challenges in the U.S.
Key Takeaways
Nabors Industries reported Q3 2024 operating revenues of $732 million and a net loss of $56 million. Adjusted EBITDA was $222 million. The company is focused on international growth and the acquisition of Parker Wellbore.
International Drilling segment saw growth with higher average daily margins and rig additions.
Daily margins in the International Drilling segment exceeded $17,000.
Lower 48 market experienced stable pricing but a slight decrease in average rig count.
Nabors is acquiring Parker Wellbore to increase scale and expand its international footprint.
Forward Guidance
Nabors expects relative stability in the fourth quarter in both margin and rig count in the Lower 48 drilling business. Capital spending target for the fourth quarter is $230 million, with capital expenditures for SANAD newbuilds forecast at $105 million. Full year free cash flow is expected to close between $100 and $130 million.
Positive Outlook
- Relative stability expected in Lower 48 margin and rig count.
- SANAD rig supplier has improved performance, leading to earlier delivery of rigs.
- Path to future growth is well defined with pending rig deployments across markets.
- Global client base increasingly embracing the benefits of Nabors' solutions.
- Targeting reductions in various markets to offset increase in newbuild capital spending.
Challenges Ahead
- Capital spending target for the fourth quarter is $230 million.
- SANAD newbuild capital expenditures moving forward to 2024.
- Recent rig suspensions by Saudi Aramco.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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