Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in NBR, NBRWF over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. My ...

Core Insights - Nabors Industries Ltd. (NBR) is one of the largest land-drilling contractors globally, focusing on oil, gas, and geothermal drilling operations. The company's shares have increased by approximately 11.4% recently, raising questions about the sustainability of this positive trend [1][2]. Price Performance & Estimates - In the past month, Nabors Industries' shares outperformed the Oil & Gas Drilling sub-industry, which gained 4%, and the broader oil and energy sector, which rose by 3.2%. Comparatively, peers like Patterson-UTI Energy, Inc. saw a decline of 1.9%, while Transocean Ltd. and Precision Drilling Corporation had gains of 9.8% and 2.3%, respectively [3][8]. - For 2025, the Zacks Consensus Estimate projects a significant narrowing of losses for Nabors Industries from $20.28 per share a year ago to $4.86, indicating a 76% year-over-year improvement. Revenue is expected to reach $3.2 billion, reflecting a 10.2% year-over-year increase [5][9]. Factors Supporting Growth - Nabors Industries has achieved record-setting technology milestones with its PACE® series rigs, enhancing efficiency and reducing costs, which strengthens its competitive position. The introduction of the PACE-X Ultra X33 rig is expected to revolutionize shale exploration in South Texas [10]. - The company has prioritized debt reduction, generating $41 million in adjusted free cash flow in Q2 2025, a turnaround from negative cash flow in Q1. Nabors plans to use $250 million from a recent notes offering for further debt reduction [11]. - A strategic divestiture of Quail Tools for $600 million has reduced net debt by over 25% and is expected to save $50 million annually in interest, enhancing financial flexibility and shareholder value [12]. - International growth opportunities are significant, particularly in the Middle East and Latin America, with over 25 rig deployment opportunities identified. The SANAD joint venture in Saudi Arabia is expanding, providing long-term revenue visibility [13]. Challenges Facing the Company - Nabors Industries faces challenges with customer concentration, particularly with Pemex in Mexico, where payment delays have been significant. This situation could impact liquidity and earnings [14][15]. - Geopolitical and market volatility pose risks, especially in regions like Saudi Arabia and Argentina, where client slowdowns and project delays could affect performance [16]. - The company remains heavily reliant on the SANAD joint venture for growth, which is subject to Saudi Aramco's capital spending plans. Any slowdown in Aramco's expansion could negatively impact Nabors' international revenues [17]. - Nabors Industries has a long-term debt of $2.7 billion, with a total debt-to-total capital ratio of 80.7%. High interest expenses limit financial flexibility, making the company vulnerable to credit market conditions [18]. Conclusion - Nabors Industries' stock has shown strong performance relative to peers, with expected revenue and earnings improvements in 2025. The company's technological advancements and strategic debt reduction efforts position it favorably for future growth. However, high debt levels and customer concentration issues present risks that need to be managed effectively [19].

Core Points - Nabors Industries Ltd. will discuss its third-quarter operating results on October 29, 2025, at 10:00 a.m. Central Time [1] - The earnings release will occur after market close on October 28, 2025 [1] Conference Call Details - The conference call can be accessed via US Toll Free number (888) 317-6003, Canada Toll Free (866) 284-3684, and International (412) 317-6061 [2] - Participants are advised to call 10 to 15 minutes early for proper connection [2] Replay Information - The conference call will be recorded and available for replay until November 5, 2025, at 4:00 p.m. CT [3] - Replay can be accessed using the North America number (877) 344-7529 or International (412) 317-0088 with Conference Replay Entry Number: 9724612 [3] Webcast Information - A live audio webcast of the conference call will be available on Nabors' website [4] - The earnings release and any supplemental presentation will also be downloadable from the website [4] Company Overview - Nabors Industries is a leading provider of advanced technology for the energy industry, operating in over 20 countries [5] - The company focuses on drilling, engineering, automation, data science, and manufacturing to innovate energy solutions and support the transition to a lower-carbon world [5]

Core Insights - Nabors Industries Ltd. and Caturus Energy have launched the PACE-X Ultra X33 rig, the most powerful onshore drilling system in the U.S., aimed at enhancing shale exploration and extraction in South Texas [1][10] - The rig is designed for high efficiency, environmental sustainability, and increased production capacity, addressing modern shale drilling challenges [2][5][18] Technological Advancements - The PACE-X Ultra X33 rig can drill laterals up to 4 miles and reach depths over 14,000 feet, making it suitable for complex well architectures [2][10] - It features a 1-million-pound mast rating and a racking capacity of 35,000 feet, improving operational efficiency by reducing pipe management time [3][8] - Equipped with three 2,000-horsepower mud pumps, the rig operates at pressures up to 10,000 psi, ensuring stability and optimized drilling rates in high-pressure environments [4][14] Environmental Considerations - The rig incorporates Cat Dynamic Gas Blending technology, allowing the use of cleaner-burning natural gas instead of conventional diesel, enhancing fuel efficiency and reducing carbon emissions [5][6] - This initiative aligns with industry efforts towards sustainable hydrocarbon production, setting new standards for responsible drilling practices [6][18] Strategic Implications for Caturus - Caturus manages approximately 200,000 net acres in the Eagle Ford and Austin Chalk formations, currently producing over 650 million cubic feet of gas equivalent daily [7][10] - The introduction of the PACE-X Ultra X33 rig is central to Caturus' strategy to scale production to 1 billion cubic feet per day by 2029 [7][10] - Enhanced drilling capabilities will allow Caturus to pursue more complex wells, reduce cycle times, and lower operational costs, improving financial returns [8][10] Industry Impact - The deployment of the PACE-X Ultra X33 rig signifies a transformative moment for U.S. onshore oil and gas, enabling operators to access previously unreachable reserves [17][18] - By combining advanced mechanical power with sustainable technologies, the rig addresses productivity and environmental concerns, contributing to America's energy future [18]

Core Viewpoint - Nabors Industries Ltd. expresses support for Superior Energy Services, Inc. following its successful senior secured notes offering, which includes a repayment of $250 million in seller financing related to the acquisition of Quail Tools, LLC. Nabors plans to use these funds for its own debt reduction and is focused on addressing remaining balances on its 2027 and 2028 senior notes to enhance long-term shareholder value [1]. Company Overview - Nabors Industries is a leading provider of advanced technology for the energy industry, operating in over 20 countries. The company focuses on delivering safe, efficient, and responsible energy production through its expertise in drilling, engineering, automation, data science, and manufacturing [2].

Core Insights - Nabors Industries Ltd. announced participation in Pareto Securities' 32nd Annual Energy Conference on September 10, 2025, with key executives presenting [1] - The investor slide deck for the presentation is available on Nabors' Investor Relations website [2] - Nabors is a leading provider of advanced technology for the energy industry, operating in over 20 countries and focusing on safe, efficient, and responsible energy production [3] Company Overview - Nabors Industries aims to innovate the future of energy by leveraging core competencies in drilling, engineering, automation, data science, and manufacturing [3] - The company is committed to enabling the transition to a lower-carbon world through its technological advancements [3] Investor Relations - Key contacts for investor relations include William C. Conroy and Kara K. Peak, who can be reached via phone or email for inquiries [4]

Core Viewpoint - Nabors Industries has announced the redemption of $150 million of its 7.375% Senior Priority Guaranteed Notes due in 2027, marking a significant step in its debt reduction strategy [1][2]. Group 1: Debt Management - The redemption date for the notes is set for September 30, 2025, with a redemption price of 101.844% of the principal amount, plus accrued and unpaid interest [1]. - The company has already repaid the outstanding balance on its revolving credit facility, which was previously drawn to repay a term loan from Parker Wellbore [2]. Group 2: Strategic Initiatives - Proceeds from the sale of Quail Tools, which was sold for $600 million, will be utilized to further reduce debt [2][5]. - The company emphasizes that debt reduction is a key value driver for its business [2]. Group 3: Company Overview - Nabors Industries is a leading provider of advanced technology for the energy industry, operating in over 20 countries [3]. - The company focuses on drilling, engineering, automation, data science, and manufacturing to innovate energy solutions and support the transition to a lower-carbon world [3].

Core Viewpoint - Nabors Industries reported a wider-than-expected loss in Q2 2025, but operating revenues increased year-over-year, indicating mixed performance across its segments [2][3]. Financial Performance - The adjusted loss for Q2 2025 was $2.71 per share, exceeding the consensus estimate of a loss of $2.05, but improved from a loss of $4.29 per share in the prior year [2]. - Operating revenues reached $832.8 million, slightly above the consensus estimate of $831 million and up from $734.8 million a year ago [3]. - Adjusted EBITDA was $248.5 million, an increase from $218.1 million year-over-year, but below the model estimate of $306.5 million [3]. Segmental Performances - U.S. Drilling revenues were $255.4 million, down 1.6% from $259.7 million a year ago, missing the estimate of $312.7 million [4]. - International Drilling revenues increased to $385 million from $356.7 million year-over-year, but fell short of the estimate of $394.8 million [5]. - The Drilling Solutions segment saw revenues of $170.3 million, a 105.3% increase from $83 million in the prior year, exceeding the estimate of $91.1 million [5]. Financial Position - Total costs and expenses rose to $818 million from $740.5 million year-over-year, slightly above the prediction of $816.1 million [7]. - As of June 30, 2025, cash and short-term investments totaled $387.4 million, with long-term debt at approximately $2.7 billion [7]. Guidance - For Q3 2025, U.S. Drilling operations are expected to have an average rig count of 57 to 59 rigs and a daily adjusted gross margin of about $13,300 [8]. - International operations are projected to have an average rig count of 87 to 88 rigs, with a daily adjusted gross margin of approximately $17,900 [9]. - Capital expenditures for Q3 2025 are planned between $200 million and $210 million, with a total expected for the year ranging from $700 million to $710 million [10]. Cash Flow and Outlook - The company anticipates adjusted free cash flow for Q3 2025 to be consistent with Q2 levels, aiming for a full-year target of $80 million [11]. - Estimates for the stock have been trending upward, with a Zacks Rank of 3 (Hold), indicating an expectation of in-line returns in the coming months [14].

Core Insights - Nabors Industries Ltd. is a global leader in drilling and drilling-related services, operating through four segments: U.S. Drilling, International Drilling, Drilling Solutions, and Rig Technologies [1] - The company has experienced a significant decline in stock performance, with shares dropping 56.7% over the past year, underperforming its peers and the broader oil and energy sector [3] - Despite challenges, Nabors is projected to narrow its losses significantly in 2025, with a consensus estimate of a loss of $4.18 per share, a 79.4% improvement year-over-year [5][8] Financial Performance - Nabors reported Q2 2025 revenues of $833 million, an increase from $735 million in the previous year, driven by growth in rigs and solutions [7][9] - The SANAD joint venture with Saudi Aramco is expected to provide multi-year earnings visibility, with new rigs deployed and additional contracts awarded [10] - The integration of Parker Wellbore has exceeded expectations, contributing to a significant increase in EBITDA [11] Market Position and Technology - Nabors has set multiple drilling records with its PACE series rigs, reinforcing its leadership in high-spec drilling and automation [12] - The company's diversified portfolio and operational momentum suggest resilience in capturing opportunities across various geographies and service lines [9] Challenges and Risks - Nabors continues to face net losses, reporting an adjusted loss of $2.71 per share in Q2 2025, highlighting ongoing cost pressures and heavy depreciation [13] - The company has a high long-term debt of $2.7 billion, with a total debt-to-total capital ratio of 80.7%, which poses risks to financial flexibility [14] - The Lower 48 rig market remains weak, with margins under pressure and expectations of further declines in daily adjusted gross margins [15] Strategic Outlook - Nabors' capital expenditure guidance for 2025 is set at $700-$710 million, which includes significant investments in SANAD rigs and Parker Wellbore [16] - The company is positioned for long-term growth through its strategic initiatives, but short-term cash flow strains and execution risks remain [17] - Given the current market conditions and performance, a hold strategy is recommended to monitor the company's progress on debt reduction and growth initiatives [18]

Core Transaction Overview - Nabors Industries Ltd. has completed the sale of its subsidiary Quail Tools to Superior Energy Services for a total net consideration of $600 million, which includes $375 million in cash and a $250 million seller note [1][8] - The transaction establishes Superior Energy as Nabors' preferred supplier for rental drill pipe and related products [1] Financial Impact - The sale is projected to accelerate over five years of anticipated free cash flow from Nabors' combined business post Parker acquisition [2] - Quail Tools is expected to generate approximately $150 million in adjusted EBITDA in 2025 under Superior Energy's management [2] - Nabors anticipates a net debt reduction of over 25%, equating to $625 million, along with annual interest savings of $50 million [3] Strategic Focus - Post-sale, Nabors will retain its core portfolio, including drilling rigs and tubular running services, which are expected to contribute at least $55 million in annual EBITDA [4] - The combination of the Parker acquisition and the Quail Tools sale is expected to create a net positive impact for Nabors' legacy business, positioning it for sustained value creation [4] Industry Context - The transaction highlights ongoing consolidation in the oilfield services sector as companies aim to strengthen their balance sheets and prepare for long-term growth amid market volatility [6] - Leaders from both Nabors and Superior Energy expressed optimism about leveraging new synergies to enhance support for exploration and production customers globally [6] Benefits to Superior Energy - The acquisition of Quail Tools nearly doubles Superior Energy's tubular inventory and significantly expands its operational footprint in the U.S. land market [5] - The deal is expected to enhance service capabilities across major U.S. energy regions and support international expansion [5]