• Revenue: $736 million, a 1% increase from the prior quarter.
• Adjusted EBITDA: $206.3 million, down from $220.5 million in the previous quarter.
• US Drilling Revenue: $231 million, a 4.5% decline sequentially.
• International Drilling Revenue: $382 million, a 3% increase from the prior quarter.
• Drilling Solutions Revenue: $93.2 million, a 22.6% increase.
• Rig Technologies Revenue: $44.2 million, a $12 million decline sequentially.
• Lower 48 Rig Count: Averaged 61, with a decrease of 5 rigs from the fourth quarter.
• International Rig Count: Averaged 85 rigs, including Parker's contribution.
• Daily Rig Margin (Lower 48): $14,276 per day, a decline from the previous quarter.
• Capital Expenditures: $144 million excluding Parker, with a target of $710-$720 million for 2025.
• Free Cash Flow Consumption: Approximately $61 million excluding Parker.
• Parker Acquisition Contribution: $7.8 million to first quarter EBITDA.
• Debt Reduction: Repurchased $11.4 million face value of notes at a discount.

• Warning! GuruFocus has detected 5 Warning Signs with NBR.

Release Date: April 30, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Nabors Industries Ltd (NYSE:NBR) completed the acquisition of Parker Wellbore, with operations performing in line with expectations and synergy targets on track.
• The international drilling business, particularly in Saudi Arabia, performed well, contributing positively to the quarter's results.
• Nabors Industries Ltd (NYSE:NBR) is on track to achieve $40 million in cost synergies from the Parker acquisition in 2025.
• The company has managed to add several rigs in the lower 48 market and continues to deploy rigs in international markets.
• Nabors Industries Ltd (NYSE:NBR) expects to generate significant free cash flow in 2025 to reduce debt, despite material cash consumption.

Negative Points

• The US lower 48 market experienced a decline in daily rig margins due to increased costs and operational inefficiencies.
• Nabors Industries Ltd (NYSE:NBR) suspended operations in Russia due to expanded US sanctions, impacting financial performance.
• The company faced challenges with high levels of churn in the US market, affecting operational efficiencies and margins.
• Tariff uncertainties and potential impacts on the global economy pose risks to Nabors Industries Ltd (NYSE:NBR)'s operations.
• Nabors Industries Ltd (NYSE:NBR) experienced decreased activity in certain international markets, unrelated to current recession fears.

Q & A Highlights

Q: Have you started accruing any debt in the SANAD joint venture? A: William Restrepo, Chief Financial Officer: No, and we don't plan to for now as there's no need.

Q: Do you know if Saudi Aramco is finished with the rig releases, or do you expect more this quarter? A: Anthony Petrello, CEO: Last year, there were 31 land rigs suspended, and this quarter, there were eight. However, there were also additions, with 21 last year and seven this quarter. The net change was 11 rigs. Aramco's condensate production from gas is influencing these numbers. While there are contingency plans for more suspensions, they haven't been called upon yet.

Q: Do you expect a restart of a rig in Mexico, and has Pemex indicated this will happen? A: Anthony Petrello, CEO: Yes, Pemex is keen to restart the rig, and we continue discussions about payment issues. William Restrepo, CFO: It's in their schedule, and we believe it will start as planned. We managed to collect the same amount we invoiced in the first quarter and are working on a larger payment in the second quarter.

Q: How do you think about accelerating value realization from SANAD, potentially via an IPO? A: Anthony Petrello, CEO: An IPO is a clear path for value realization, especially given the attractive valuations in the Middle East. Both Aramco and we are considering this option, and it could create significant value for shareholders.

Q: Can you provide more details on the synergies expected from the Parker acquisition? A: William Restrepo, CFO: Initially, we didn't have full access to the company data. Now, we see higher corporate cost reductions and more overlap in costs that can be eliminated. There are also improvements in real estate and contract exits.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.