Core Viewpoint - Nabors Industries has entered into a definitive agreement to sell its subsidiary Quail Tools for a total consideration of $600 million, which will significantly reduce its net debt by over 25% and enhance financial flexibility [1][5][6]. Financial Impact - The sale includes cash of $375 million and a seller note of $250 million, with expected cash taxes of approximately $5 million [1]. - Following the transaction, Nabors anticipates a reduction in net debt by $625 million, decreasing from $2.3 billion to approximately $1.675 billion [5][6]. - The transaction is expected to deliver annual interest savings exceeding $50 million [5]. Business Performance - Quail Tools is projected to generate adjusted EBITDA of around $150 million in 2025, excluding any synergies that may be realized by Superior Energy Services [3]. - The retained businesses from the Parker acquisition are expected to generate at least $55 million in adjusted EBITDA for the full year 2025 [6]. Strategic Rationale - The transaction is viewed as a win-win for both Nabors and Superior, with potential for significant synergies in the tubular rental space [4]. - The decision to sell Quail was challenging due to its strong performance and customer base, but the metrics of the transaction indicate substantial value creation for shareholders [6]. Market Position - Quail Tools is recognized as a leading provider of high-performance downhole tubulars in the U.S. oil and gas drilling market, while Superior also operates in both U.S. and international markets [2].

Financial Data and Key Metrics Changes - The company reported consolidated GAAP diluted earnings per share for Q1 2025 at $1.75, down from $1.93 in the prior year, while operating earnings per share was $1.92 compared to $1.95 in the previous year [16] - Restaurant level margin percentage remained flat year-over-year at 23.2%, aided by the completion of a new beverage partner contract [13] Business Line Data and Key Metrics Changes - Jack in the Box achieved positive same-store sales growth of 40 basis points for the quarter, despite challenges from California wildfires and unusual weather, which negatively impacted sales by approximately 20 basis points [11] - Del Taco faced a challenging quarter with pressured same-store sales and is also expected to post negative same-store sales in Q2, although a menu optimization initiative has shown encouraging results [14] Market Data and Key Metrics Changes - The company opened five restaurants and closed six in Q1, with expectations to open between 35 and 45 restaurants for fiscal year 2025 [13] - Del Taco's restaurant count at the end of the quarter was 589, with one opening and six closures [15] Company Strategy and Development Direction - The company is focused on capital allocation and cash flow improvement, with a slight reduction in capital expenditure guidance for the year [17][18] - The strategy includes a barbell approach to marketing, value leadership, and digital evolution to drive sales [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing macro pressures and anticipated negative same-store sales results for Q2, but expressed confidence in the marketing calendar and digital capabilities to drive future sales [12][39] - The leadership transition is seen as an opportunity to build on a strong foundation for growth and maximize long-term potential [9][22] Other Important Information - The company repurchased 124,000 shares for $5 million during the quarter, but plans to halt further repurchase activity for the year to focus on reducing leverage [16][17] - An updated capital expenditure range for the year is set at $100 million to $105 million, reflecting a slight reduction [18] Q&A Session Summary Question: Capital allocation and cash flow focus - Management confirmed a sharpened focus on capital allocation and cash flow, indicating that further announcements regarding free cash flow acceleration opportunities are expected in May [27][30] Question: Company store openings strategy - Management stated that while there is a place for company store builds, the focus will be on complementing franchisee growth rather than leading it [36] Question: Consumer environment and sales strategy - Management acknowledged the cautious consumer environment but expressed confidence in their sales strategy, emphasizing value and menu innovation to reestablish positive momentum [38]