Nabors Industries Ltd. Q3 FY2025 earnings call

• Completed sale of Quail Tools for $625 million, improving capital structure. - International Drilling segment grew due to stronger activity in Eastern Hemisphere markets. - U.S. Lower 48 rig count faced pressure but Alaska and offshore were strong. - Deployed PACE-X Ultra rig in Lower 48, which exceeded expectations. - Progress on Parker Wellbore integration, realizing cost synergies.

International Drilling: Revenue was $407.2 million, EBITDA $127.6 million, EBITDA margin 31.3%. Average rig count increased to 91. U.S. Drilling: Third quarter revenue $249.8 million, EBITDA $94.2 million. Lower 48 revenue $185.4 million, EBITDA $94.2 million. Alaska and U.S. offshore combined revenue $64.4 million, EBITDA $28.4 million. Drilling Solutions: Revenue $141.9 million, EBITDA $60.7 million. Excluding Quail, EBITDA increased. Rig Technologies: Revenue $35.6 million, EBITDA $3.8 million.

• Fourth quarter EBITDA expected to be essentially in line with third quarter, excluding Quail. - Lower 48 rig count expected 57-59 in Q4, daily adjusted gross margin ~$13,000. - International drilling average rig count ~91, Drilling Solutions EBITDA ~$39 million, Rig Technologies EBITDA ~$5.5 million.

• Uncertainties in the global macro environment. - Uncertainty in U.S. Lower 48 activity and collections from PEMEX. - Potential suspension of rigs in Mexico.

Q: On U.S. Lower 48, any outlook beyond fourth quarter on daily revenue, cost, or margin trends?

A: Tony Petrello mentioned daily revenue increased sequentially due to performance bonuses, and Miguel Rodriguez noted daily revenue on leading edge basis is stable, with focus on operating expense to improve margin.

Q: On Saudi onshore activity, sense of net activity adds and Nabors' participation?

A: Miguel Rodriguez said Aramco may bring back around 50% of suspended rigs, tender issued with Nabors responding for their 3 rigs.

Q: Thoughts on growth in unconventional activity outside North America?

A: Tony Petrello mentioned Argentina has growth opportunities, Algeria, Alaska, and Middle East have gas stories related to power needs and LNG export potential.