Q1 2026 Nabors Industries Ltd Earnings Call Transcript
Key Points
- Nabors Industries Ltd (NBR) maintained operational continuity in the Middle East despite the challenging environment, demonstrating strong management and resilience.
- The company achieved a significant increase in its U.S. Lower 48 rig count, adding 8 rigs since last year, with plans to reach 69 rigs by the second half of 2026.
- Nabors' SANAD joint venture in Saudi Arabia is on track for growth, with newbuild deployments proceeding as planned, representing a long-term growth opportunity.
- The company is focused on deploying advanced technology, such as the PACE-X Ultra rigs, which are equipped with high-performance capabilities and integrated solutions.
- Nabors Industries Ltd (NBR) is committed to debt reduction, having redeemed $379 million of senior guaranteed notes, extending its nearest maturity to June 2029.
- The Middle East conflict introduced operational inefficiencies, affecting logistics, supply chain, and crew rotations, impacting financial results.
- Despite higher oil prices, U.S. operators have not broadly adjusted activity levels, limiting immediate market opportunities for Nabors.
- The company's International Drilling segment experienced a decline in EBITDA due to labor costs in Saudi Arabia and disruptions in Colombia.
- Nabors' Rig Technologies segment faced a sequential decline in revenue and EBITDA, impacted by parts delivery delays related to the Middle East conflict.
- The company's free cash flow was negative in the first quarter, consuming $48 million, although it exceeded midpoint guidance by $35 million.
Good day, and welcome to the Nabors Industries Limited First Quarter 2026 Earnings Conference Call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to William Conroy, Vice President of Corporate Development and Investor Relations. Please go ahead.
Good morning, everyone. Thank you for joining Nabors' First Quarter 2026 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 Nabors to perform in these markets. In support of these remarks, a slide deck is available, both as a download within the webcast and in the Investor Relations section of nabors.com. Instructions for the replay of this call are posted on the website as well.
With us today, in
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
