HAMILTON, Bermuda, April 24, 2024 /PRNewswire/ -- Nabors Industries Ltd. ("Nabors" or the "Company") (NYSE:NBR) today reported first quarter 2024 operating revenues of $734 million, compared to operating revenues of $726 million in the fourth quarter of 2023. The net loss attributable to Nabors shareholders for the quarter was $34 million, compared to a net loss of $17 million in the fourth quarter. This equates to a loss of $4.54 per diluted share, compared to a loss per diluted share of $2.70 in the fourth quarter. The first quarter results included a gain, related to mark-to-market treatment of Nabors warrants, of $6 million, or $0.62 per diluted share, compared to a gain of $10 million, or $1.14 per diluted share, in the fourth quarter. First quarter adjusted EBITDA was $221 million, compared to $230 million in the previous quarter. Highlights Nabors was awarded three rigs in Argentina, on multiyear contracts with attractive economics.  The Company will redeploy inactive rigs from the Lower 48 market. These awards further solidify Nabors' position in this key market. Received notification of commercial qualification for three rigs in a major market in the Middle East. The Company plans to deploy existing in-country rigs for this opportunity. A Lower 48 drilling contractor has begun standardizing its entire fleet to Nabors RigCLOUD® platform. This development clearly demonstrates the value of Nabors third-party strategy. Canrig received an order for six land drilling packages from an existing client in the Middle East. This latest order is recognition of the excellent track record we have established with this customer. Nabors was named a double finalist for the Reuters Global Energy Transition Awards 2024 in the "Portfolio Transformation" and "Technology Whitespace" categories. Anthony G. Petrello, Nabors Chairman, CEO and President, commented, "Our first quarter operating results were stronger than we expected, driven by resilient pricing and lower costs in our Lower 48 drilling operations, as well as higher than forecast OEM repair revenue and energy transition revenue in our Rig Technologies segment. "Rig count increased in our International segment, driven by rig startups in Saudi Arabia and Algeria, as part of our commitment to deploy seven rigs in these two countries during 2024. We have also received recent awards in Argentina for three more rigs. I believe we are in the midst of the largest opportunity that we've seen in the last decade to strengthen our international business. "Pricing in the Lower 48 market remained firm, as utilization of our highest specification rigs stayed strong across several important markets. Average rig count increased compared to the prior quarter, but was slightly below our estimates, mainly reflecting activity reductions in natural gas basins. Results in our Drilling Solutions segment reflected reduced activity in the Lower 48, partially offset by better growth from international markets." Segment Results The U.S. Drilling segment reported first quarter adjusted EBITDA of $120.4 million, compared to $118.4 million in the fourth quarter of 2023. Nabors' first quarter Lower 48 average rig count totaled 72, up from 70 in the prior quarter. Daily adjusted gross margin in that market averaged $16,011, a decrease of $229 sequentially. International Drilling adjusted EBITDA totaled $102.5 million, compared to $105.5 million in the fourth quarter. Rig count averaged 81, up from 80 in the previous quarter, driven by rig startups in Algeria and the prior start of a newbuild in Saudi Arabia. The impact of this higher rig count was offset by downtime related to rig certification requirements following recent contract renewals in Saudi Arabia, as well as labor unrest on several rigs in Colombia. Daily adjusted gross margin for the fourth quarter averaged $16,061. International Drilling segment revenue of $349 million increased by 9% compared to the first quarter of 2023, as average rig count increased by nearly five rigs. Drilling Solutions adjusted EBITDA was $31.8 million, compared to $34.5 million in the fourth quarter. Revenue on Nabors rigs operating in the Lower 48 and international markets increased sequentially. In Rig Technologies, adjusted EBITDA reached $6.8 million, versus $8.8 million in the fourth quarter. OEM rental and repair EBITDA increased sequentially, while other aftermarket, capital equipment, and energy transition EBITDA declined following seasonally strong year end deliveries. Adjusted Free Cash Flow Adjusted free cash flow was $8 million in the first quarter. Capital expenditures totaled $112 million, which included $35 million supporting the newbuilds in Saudi Arabia. This compares to $124 million in the fourth quarter, including $43 million supporting the newbuilds. William Restrepo, Nabors CFO, stated, "Results across our operations were higher than we forecast. The strength of the international drilling markets continues to surprise us to the upside with the recent awards in Argentina and the notification on a tender in another Middle East market, on top of the material ongoing deployments in Saudi Arabia and Algeria. We restarted two rigs in Algeria during the first quarter, and a third in early April. Algeria has historically been an important market for Nabors, and the recommencement of operations with existing rigs marks a key development for us. Looking to the second quarter, we expect our international rig count to increase with a newbuild in Saudi Arabia and the fourth rig in Algeria. We expect the ongoing deployments and the more recent awards, as well as several open opportunities, to generate a material increase in our International EBITDA over the already targeted increase for 2025. "Firm pricing in the Lower 48 bolstered daily gross margin. We again reduced costs in this market. Looking to the second quarter, we continue to experience sluggish activity in the natural gas basins. This should keep average rig count slightly below the average for the first quarter. "We retired both the convertible notes that were due in January 2024 and the senior notes due in 2025, with the proceeds from our $650 million notes offering in the fourth quarter of 2023. Our next maturity is in 2026.  "We still have a number of open international tenders and active negotiations. It's increasingly evident that the robust trends in our international segment should continue to provide us with high return opportunities with attractive payback periods. Nonetheless, we intend to avoid taking on more than we can afford. We will remain focused on generating free cash flow and reducing our net debt." Outlook Nabors expects the following metrics for the second quarter of 2024: U.S. Drilling              Lower 48 average rig count of approximately 70 rigs Lower 48 daily adjusted gross margin of approximately $15,500 Alaska and Gulf of Mexico adjusted EBITDA of approximately $21 million International Average rig count up by two to three rigs versus the first quarter average Daily adjusted gross margin of approximately $15,700 Drilling Solutions Adjusted EBITDA of $30 - $32 million Rig Technologies Adjusted EBITDA of $8 - $10 million Capital Expenditures Capital expenditures of approximately $190 million, with approximately $70 million for the newbuilds in Saudi Arabia Full-year capital expenditures of approximately $590 million, including funding for the recent rig awards Mr. Petrello concluded, "I am pleased with our early success to secure additional backlog in our international business. We are targeting several more opportunities and are optimistic for additional success. We also see growing adoption of our advanced technology, both in the U.S. on third-party rigs and in international markets. These developments validate our strategy and should drive future free cash flow." About Nabors Industries Nabors Industries (NYSE:NBR) is a leading provider of advanced technology for the energy industry. With presence in more than 20 countries, Nabors has established a global network of people, technology and equipment to deploy solutions that deliver safe, efficient and responsible energy production. By leveraging its core competencies, particularly in drilling, engineering, automation, data science and manufacturing, Nabors aims to innovate the future of energy and enable the transition to a lower-carbon world. Learn more about Nabors and its energy technology leadership: www.nabors.com. Forward-looking Statements The information included in this press release includes forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. Such forward-looking statements are subject to a number of risks and uncertainties, as disclosed by Nabors from time to time in its filings with the Securities and Exchange Commission. As a result of these factors, Nabors' actual results may differ materially from those indicated or implied by such forward-looking statements. The forward-looking statements contained in this press release reflect management's estimates and beliefs as of the date of this press release. Nabors does not undertake to update these forward-looking statements.  Non-GAAP Disclaimer This press release presents certain "non-GAAP" financial measures. The components of these non-GAAP measures are computed by using amounts that are determined in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Adjusted operating income (loss) represents income (loss) from continuing operations before income taxes, interest expense, investment income (loss), and other, net. Adjusted EBITDA is computed similarly, but also excludes depreciation and amortization expenses. In addition, adjusted EBITDA and adjusted operating income (loss) exclude certain cash expenses that the Company is obligated to make. Net debt is calculated as total debt minus the sum of cash, cash equivalents and short-term investments. Adjusted free cash flow represents net cash provided by operating activities less cash used for capital expenditures, net of proceeds from sales of assets. Management believes that adjusted free cash flow is an important liquidity measure for the company and that it is useful to investors and management as a measure of the company's ability to generate cash flow, after reinvesting in the company for future growth, that could be available for paying down debt or other financing cash flows, such as dividends to shareholders. Management believes that this non-GAAP measure is useful information to investors when comparing our cash flows with the cash flows of other companies. Each of these non-GAAP measures has limitations and therefore should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including Adjusted EBITDA, adjusted operating income (loss), net debt, and adjusted free cash flow, because it believes that these financial measures accurately reflect the Company's ongoing profitability and performance. Securities analysts and investors also use these measures as some of the metrics on which they analyze the Company's performance. Other companies in this industry may compute these measures differently. Reconciliations of consolidated adjusted EBITDA and adjusted operating income (loss) to income (loss) from continuing operations before income taxes, net debt to total debt, and adjusted free cash flow to net cash provided by operations, which are their nearest comparable GAAP financial measures, are included in the tables at the end of this press release. We do not provide a forward-looking reconciliation of our outlook for Segment Adjusted EBITDA, Segment Gross Margin or Adjusted Free Cash Flow, as the amount and significance of items required to develop meaningful comparable GAAP financial measures cannot be estimated at this time without unreasonable efforts. These special items could be meaningful. Investor Contacts:  William C. Conroy, CFA, Vice President of Corporate Development & Investor Relations, +1 281-775-2423 or via e-mail or Kara Peak, Director of Corporate Development & Investor Relations, +1 281-775-4954 or via email To request investor materials, contact Nabors' corporate headquarters in Hamilton, Bermuda at +441-292-1510 or via e-mail NABORS INDUSTRIES LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (Unaudited) Three Months Ended March 31, December 31, (In thousands, except per share amounts) 2024 2023 2023 Revenues and other income: Operating revenues  $ 733,704 $ 779,139 $ 725,801 Investment income (loss) 10,201 9,866 12,042 Total revenues and other income 743,905 789,005 737,843 Costs and other deductions: Direct costs 437,077 462,329 424,769 General and administrative expenses 61,751 61,730 57,003 Research and engineering 13,863 15,074 13,926 Depreciation and amortization 157,685 163,031 161,228 Interest expense 50,379 45,141 49,938 Other, net 16,108 (42,375) 7,878 Total costs and other deductions 736,863 704,930 714,742 Income (loss) before income taxes 7,042 84,075 23,101 Income tax expense (benefit) 16,044 23,015 19,244 Net income (loss) (9,002) 61,060 3,857 Less: Net (income) loss attributable to noncontrolling interest (25,331) (11,836) (20,560) Net income (loss) attributable to Nabors $ (34,333) $   49,224 $  (16,703) Earnings (losses) per share:    Basic  $      (4.54) $       4.39 $       (2.70)    Diluted  $      (4.54) $       4.11 $       (2.70) Weighted-average number of common shares outstanding:    Basic  9,176 9,160 9,133    Diluted  9,176 9,867 9,133 Adjusted EBITDA $ 221,013 $ 240,006 $ 230,103 Adjusted operating income (loss) $   63,328 $   76,975 $   68,875   NABORS INDUSTRIES LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) March 31, December 31, (In thousands) 2024 2023 ASSETS Current assets: Cash and short-term investments $    425,560 $   1,070,178 Accounts receivable, net 416,873 347,837 Other current assets 231,926 227,663      Total current assets 1,074,359 1,645,678 Property, plant and equipment, net 2,841,294 2,898,728 Other long-term assets 729,319 733,559      Total assets $ 4,644,972 $  5,277,965 LIABILITIES AND EQUITY Current liabilities: Current debt $                - $     629,621 Trade accounts payable 319,436 294,442 Other current liabilities 282,982 289,918      Total current liabilities 602,418 1,213,981 Long-term debt 2,512,175 2,511,519 Other long-term liabilities 256,956 271,380      Total liabilities 3,371,549 3,996,880 Redeemable noncontrolling interest in subsidiary 750,600 739,075 Equity: Shareholders' equity 286,338 326,614 Noncontrolling interest 236,485 215,396      Total equity 522,823 542,010      Total liabilities and equity $ 4,644,972 $  5,277,965   NABORS INDUSTRIES LTD. AND SUBSIDIARIES SEGMENT REPORTING (Unaudited) The following tables set forth certain information with respect to our reportable segments and rig activity: Three Months Ended March 31, December 31, (In thousands, except rig activity) 2024 2023 2023