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].

Financial Data and Key Metrics Changes - TELUS achieved total mobile and fixed customer growth of 198,000 in Q2 2025, driven by mobile phone and connected device additions of 167,000 and fixed customer additions of 31,000 [7][8] - Postpaid mobile phone churn remained at 0.9%, consistent with Q2 of the previous year, marking the twelfth consecutive year below the 1% level [8] - TTEC EBITDA growth, including TELUS Health, was up 4%, consistent with Q1 results [8][19] - Free cash flow increased by 11% year-over-year to CAD 535 million, driven by higher EBITDA and lower capital expenditures [23][25] - Adjusted net income was CAD 342 million, with an EPS of CAD 0.22 [22] Business Line Data and Key Metrics Changes - TELUS Health reported an extraordinary adjusted EBITDA growth of 1629%, with operating revenue also reflecting significant growth [10][19] - Fixed data services revenue grew by 3% year-over-year, marking the eighteenth consecutive quarter of positive growth [19] - Mobile network revenue experienced a slight decline due to lower mobile phone ARPU, which fell by 3.3% [18][19] Market Data and Key Metrics Changes - The competitive landscape in the mobile sector remains challenging, with ongoing pressures on ARPU due to market conditions [18][19] - TELUS is the only company in the industry to deliver positive net additions in the wireline sector, highlighting its competitive advantage [9] Company Strategy and Development Direction - TELUS announced a CAD 2 billion investment to expand broadband services in Ontario and Quebec, reflecting its commitment to enhancing connectivity [5][6] - The company is focusing on bundling wireless and wireline broadband services to differentiate itself from competitors [6][10] - TELUS is pursuing a strategy of monetizing its tower infrastructure through the establishment of Terion, which will build new towers and enhance financial flexibility [13][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the Canadian market, emphasizing the importance of private investment and innovation [6][7] - The company anticipates continued improvements in its leverage ratio, aiming for a net debt to EBITDA ratio of three times by 2027 [24][26] - Management highlighted the importance of AI and digital solutions in driving operational efficiencies and enhancing customer experiences [82][83] Other Important Information - TELUS Friendly Future Foundation raised over CAD 2.6 million to support student bursaries, demonstrating the company's commitment to community engagement [16] - The company is actively pursuing partnerships to enhance its service offerings and expand its market reach [14][76] Q&A Session Summary Question: Strategic shift regarding the proposed privatization of TIAXT - Management clarified that the move is related to supporting deleveraging goals and does not indicate a change in monetization strategies for other tech ventures [31][32] Question: Financial details on the towers and EBITDA - Management did not disclose specific EBITDA figures but confirmed that all towers will operate at fair market value rent, ensuring transparency [34] Question: Long-term impact of tower deals and colocation opportunities - Management indicated that demand for data continues to rise, and the partnership with Terion will support cash flow positivity through tower construction and colocation [40] Question: Market pricing discipline and sustainability - Management expressed cautious optimism about the current pricing trends, noting that irrational pricing cannot be sustained in the long term [41][42] Question: Sustainability of fixed data growth - Management highlighted the diversity of contributions to fixed data growth and expressed confidence in the sustainability of this growth moving forward [68] Question: Update on deleveraging drivers, particularly real estate - Management discussed ongoing efforts to rationalize real estate and the potential for significant monetization opportunities in the future [72][73] Question: Role of traditional telcos in the AI ecosystem - Management identified three key areas for growth in the AI ecosystem, including leveraging existing infrastructure and enhancing internal operations through AI [81][82]

Financial Data and Key Metrics Changes - For Q1 2025, the company recorded revenue of $132.4 million and a net loss attributable to common stockholders of $200.3 million, which is expected to improve significantly upon closing the remainder of the multi-tenant portfolio sale [19][20] - AFFO was reported at $66.2 million or $0.29 per share [19] - The gross outstanding debt balance decreased by $1.3 billion from Q1 2024 to $3.9 billion at the end of Q1 2025 [20] - The net debt to adjusted EBITDA ratio improved from 8.4 times in Q1 2024 to 6.7 times in Q1 2025 [20] Business Line Data and Key Metrics Changes - The company completed the first phase of the multi-tenant portfolio sale, generating $1.1 billion in gross proceeds from 59 unencumbered properties, with net proceeds used to pay down $850 million on the revolving credit facility [7][9] - The portfolio's occupancy rate was reported at 95%, with a pro forma occupancy of 98% after selling five vacant properties for $60 million [12][13] - The weighted average remaining lease term for the portfolio is 6.3 years, with an average annual rent increase of 1.5% [6][12] Market Data and Key Metrics Changes - Geographically, 76% of straight-line rent is earned in North America and 24% in Europe, providing diversification across economic cycles [14] - The tenant base is stable, with 60% of tenants receiving an investment grade or implied investment grade rating [14] Company Strategy and Development Direction - The company aims to achieve an investment grade credit rating as part of its strategy to reduce the cost of capital and enhance financial stability [8][9] - A $300 million share repurchase program was approved, with 7.9 million shares repurchased at a weighted average price of $7.5, reflecting a strategic approach to capitalize on undervalued stock [11] - The company is strategically reducing exposure to the gas and convenience store sector, reallocating capital towards higher growth sectors [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating market volatility and highlighted the importance of a strong balance sheet for future growth [5][10] - The company reaffirmed its AFFO per share guidance range of $0.90 to $0.96 for 2025, indicating a positive outlook despite current market uncertainties [22] Other Important Information - The company has a robust pipeline of non-core dispositions totaling $2.1 billion, contributing to deleveraging efforts [9] - The weighted average interest rate on debt is 4.4%, with an interest coverage ratio of 2.5 times [20] Q&A Session Summary Question: Can you break down the remaining $300 million in the disposition pipeline by sector or geography? - Management indicated that the remaining dispositions are part of ongoing efforts to reduce leverage and are identified as non-core assets [28] Question: How will market volatility impact your ability to sell or pricing? - Management believes there will continue to be opportunities to sell assets, leveraging relationships with local brokers [29][30] Question: Is the 12% AFFO yield the hurdle rate for future buybacks? - Management expressed satisfaction with the current buyback execution and indicated that they will continue to monitor AFFO accretion [31][32] Question: What is the strategy for capital allocation regarding share buybacks, debt repayment, and future asset purchases? - Management emphasized a focus on reducing leverage and opportunistic share buybacks, while being cautious about new asset purchases [37][40] Question: Can you share insights on credit rating upgrades and potential savings? - Management noted that conversations with credit agencies are confidential but acknowledged the positive credit watch status [44][45] Question: What types of dispositions are being targeted moving forward? - Management mentioned looking at retail and office opportunities for future dispositions, while maintaining a focus on long-term goals [47][48] Question: Did Contractors Steel pay any rent in Q1? - Management confirmed that Contractors Steel did not pay rent in the first quarter [71] Question: How should we think about the run rate for AFFO in the back half of the year? - Management indicated that the income statement already accounts for the multi-tenant portfolio sale and expects a decrease in G&A expenses due to the sale [75] Question: Are there more vacant assets available for future proceeds? - Management stated that after the completion of the multi-tenant sale, the portfolio will be nearly 98% occupied, indicating limited vacancy left [81]

Financial Data and Key Metrics Changes - Consolidated net sales from continuing operations for Q1 were $485 million, down 3% year over year, and essentially flat on an organic basis [23] - Adjusted EBITDA from continuing operations was $37.2 million, down 19% from $45.8 million in the prior year [23] - Net debt at the end of the quarter was $1.04 billion, with a net leverage ratio of 4.7 times [27][28] Business Line Data and Key Metrics Changes - In the Filtration and Advanced Materials (FAM) segment, net sales were $188 million, down more than 7% year over year, reflecting lower volumes and unfavorable currency translation [24] - The Sustainable and Adhesive Solutions (SaaS) segment saw net sales of $297 million, up almost 6% on an organic basis, with adjusted EBITDA performance of $33 million, up more than 3% year over year [25][26] Market Data and Key Metrics Changes - Demand patterns reflected in Q1 showed sales were flat organically year over year, with SaaS segment growth offset by softness in FAM results, particularly in automotive and construction end markets [16][17] - Less than 7% of annual sales are currently subject to tariff exposure, indicating a strong localized supply chain [19][20] Company Strategy and Development Direction - The company is focusing on three near-term priorities: enhancing commercial execution, deleveraging the balance sheet, and conducting a strategic review of its portfolio [9][34] - A task force is reviewing cost and operating structures to achieve additional cost reductions of $10 million to $15 million in 2025, alongside previously announced reductions [13][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by a continuously suppressed demand environment and the need for operational improvements [6][8] - There is an expectation for a significant sequential step up in adjusted EBITDA performance in Q2, driven by increased volume and improved pricing [30] Other Important Information - The company plans to reduce capital expenditures to $40 million per year, down from $55 million in 2024, and aims to lower inventory levels by $20 million to $30 million in 2025 [14][29] - A goodwill impairment analysis resulted in a pretax non-cash charge of $412 million due to sustained decline in share price [27] Q&A Session Summary Question: Insights on the portfolio review - Management is evaluating how each product category contributes to the bottom line and overall portfolio diversity, with updates to be provided as progress is made [39][40] Question: Timing for cash flow generation improvements - Significant cash flow increases are expected in Q2, driven by inventory reductions and improved sequential EBITDA [42][43] Question: Margin contraction causes and dividend policy - Management identified that margin suppression is primarily due to the FAM business and is working towards improving margins through cost reductions and pricing actions [49][50] - The decision to continue paying dividends has been discussed with the board, and the current plan is to maintain the dividend [54]