Q3 2025 Nabors Industries Ltd Earnings Call Transcript
Key Points
- Nabors Industries Ltd (NBR) completed the sale of Quail Tools for $625 million, significantly improving its capital structure.
- The company reduced its net debt to approximately $1.7 billion, the lowest in over a decade, and plans to further reduce debt using proceeds from the Quail sale.
- International drilling segment showed strong performance with an 8% sequential increase in adjusted EBITDA, driven by growth in Saudi Arabia and Kuwait.
- Nabors Industries Ltd (NBR) successfully deployed the PaceX Ultra rig, which exceeded performance expectations and demonstrated the company's technological advancements.
- The company anticipates growth in natural gas drilling activity, particularly in the Middle East and Latin America, aligning with global energy trends.
- The US lower 48 drilling market remains under pressure with a decline in oil-directed activity, particularly in the Permian Basin.
- Nabors Industries Ltd (NBR) faces challenges in Mexico, with potential suspension of rigs due to customer cash conservation efforts.
- The company experienced a decrease in adjusted EBITDA margin by 96 basis points sequentially, reflecting market challenges.
- Pemex collections fell short by over $30 million, impacting the company's adjusted free cash flow.
- Nabors Industries Ltd (NBR) anticipates some erosion in pricing and lower operating expenses in the US drilling segment in the near term.
Good morning and welcome to Nabors Industries third-quarter 2025 earnings conference call. (Operator Instructions) Please note, this event is being recorded.
I would not like to turn the conference over to William Conroy, VP of corporate Development and Investor Relations. Please go ahead.
Good morning, everyone.
Thank you for joining Neighbor's Third quarter 2025 earnings conference call.
Today we will follow our customary format with Tony Petrello, our Chairman, President and Chief Executive Officer, and Miguel Rodriguez, our Chief Financial Officer, providing their perspectives on the quarter's results, along with insights into our markets and how we expect neighbors to perform in these markets. In support of these remarks, the slide deck is available both as a download within the webcast and in the investor relations section of Neighbors.com.
Instructions for the replay of this call are posted on the website as well.
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