NBR Stock Overview
Nabors Industries Ltd. provides drilling and drilling-related services for land-based and offshore oil and natural gas wells.
Nabors Industries Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$98.55|
|52 Week High||US$207.67|
|52 Week Low||US$72.46|
|1 Month Change||-29.98%|
|3 Month Change||-29.98%|
|1 Year Change||3.65%|
|3 Year Change||15.94%|
|5 Year Change||-74.73%|
|Change since IPO||12.63%|
Recent News & Updates
Nabors Industries: A Positive Outlook For Demand Is Helping
Summary Revenues were $630.943 million in the second quarter of 2022, up from $489.33 million a year ago. The total working rigs increased to 173 rigs from 168 in 1Q22. Daily adjusted gross margin in the Lower 48 market averaged $8,706, more than 13% higher than the prior quarter. I recommend buying between $129 and $126 with potential lower support at $110. Introduction Nabors Industries (NBR) released its second quarter of 2022 results on August 3, 2022. Note: This is a quarterly update from my preceding article published on June 6, 2022. I have covered Nabors Industries in Seeking Alpha since Sept. 2014. 1 - 1Q22 Results Snapshot Revenues were $630.943 million in the second quarter of 2022, up from $489.33 million a year ago. Nabors' total costs and expenses increased to $692.3 million from $654.9 million in 2Q21 due to much higher direct expenses, general and administrative costs, and research and engineering expenses. NBR reported a second-quarter 2022 loss of $82.92 million or $9.41 per share. The figures beat analysts' expectations. NBR 2Q22 highlights (NBR Presentation) The second-quarter adjusted EBITDA was $158.04 million compared to $117.32 million in the second quarter of 2021. Nabors Industries exited 2Q22 with 96.4 rigs running in the US. The daily margin increased to $10,738 per day, up slightly year over year in the second quarter. For the International segment, NBR exited 2Q22 with 74.3 rigs with a daily margin stable at $14,331 per day. 2 - Stock performance Nabors Industries has done very well on a one-year basis and is up 59%. However, NBR and HP have dropped significantly since May. Data by YCharts 3 - Investment Thesis The investment thesis is a challenging exercise for this onshore drilling company. The situation has improved significantly in the past two quarters. The company is generating free cash flow due to a surge in drilling demand and higher commodity pricing, which boosted land drilling rig day rates to a level not seen for a long time. Westwood Global Energy Group is turning optimistic for onshore drilling but is still cautious due to a rig oversupply. It wrote on August 25, 2022: Despite a positive outlook for demand, the oversupply of rigs will remain a key factor in the sector, with demand unlikely to return to the pre 2014 downturn levels that led to a surge in newbuild rig construction. While utilisation in 2022 has increased to 45%, from 43% in 2021, and is forecast to grow to 53% by 2026, numbers will remain well below maximum capacity. At the same time, the increased focus on automated rigs, which currently account for just 16% of the overall rig fleet, could also lead to demand outweighing supply of these rigs, a trend that is already being noted in the U.S. specifically, where some drilling contractors are expecting to exhaust their available supplies of super-spec rigs by mid-2023. As I said in my preceding article, because the company is highly associated with oil prices, I suggest trading LIFO in your long-term position to compensate for the adverse effects of any fluctuations and lessen the overall risk attached to this volatile sector. This dual strategy is what I am recommending in my marketplace and forms the backbone of my Gold and Oil marketplace. 3.1 Nabors Fleet Status Snapshot 2Q22 The total working rigs increased to 173 rigs from 168 in 1Q22. Nabors' average Lower 48 working rig count was 91 in 2Q22. For the international segment, it was 74. Utilization average 52%. CFO William Restrepo said in the press release: We expect similar improvement in the third quarter. Utilization for our high-spec Lower 48 rigs currently stands at 81%. With the current market tightness, pricing is rising rapidly. Margins are expanding, a trend we expect to continue in coming quarters. The accelerating market and our pricing momentum in the Lower 48, as well as stronger than expected fundamentals in the International segment, have significantly outpaced the estimates embedded in our previous EBITDA outlook for 2022 and 2023. NBR Fleet status 2Q22 (NBR Presentation) Nabors Industries - Balance Sheet In 2Q22: The Raw Numbers Nabors Industries 2Q21 3Q21 4Q21 1Q22 2Q22 Total Revenues and other income in $ Million 489.33 524.17 543.54 568.64 630.94 Net income in $ Million -196.01 -122.50 -113.68 -184.50 -82.92 EBITDA $ Million 50.81 102.57 121.64 50.27 144.33 EPS diluted in $/share -26.59 -15.79 -14.60 -22.51 -9.41 Operating cash flow in $ Million 133.71 113.28 102.29 41.35 120.80 CapEx in $ Million 77.00 65.72 54.14 84.26 76.63 Free Cash Flow in $ Million 56.71 47.56 48.16 -42.90 44.16 Total cash $ Million 399.90 771.88 991.49 394.04 417.98 Long-term debt in $ Million 2,823.1 3,075.5 3,262.8 2,610.1 2601.5 Shares outstanding (Basic) in Million 7.46 7.91 7.95 8.31 9.08 Courtesy: NBR PR * Estimated by Fun Trading. Balance Sheet Snapshot 1 - Revenues and other income were $630.94 million in 2Q22 NBR Quarterly Revenues history (Fun Trading) Note: Operating income plus investment income was $631.765 million. Nabors Industries reported second-quarter 2022 operating revenues totaling $630.94 million, up from $489.33 million in the same quarter last year (please look at the chart above). The quarter's net loss was $82.92 million, or $9.41 per diluted share, compared to a loss of $196.01 million, or $26.59 per share, during the second quarter of 2022. CEO Anthony Petrello said in the conference call: In the second quarter all operating segments performed well, exceeding the expectations we laid out on last quarter. This performance reinforces our strategy. The second-quarter adjusted EBITDA was $158.04 million compared to $117.32 million in the second quarter of 2021. 1.1 - Revenues per segment: . NBR Quarterly revenues detail in 2Q22 (Fun Trading) 1.1.1 - U.S. Drilling: The quarterly operating revenues were $253.008 million, up 16.3% from $217.58 million in 1Q22. Nabors' average Lower 48 rig count is 89.3, increased by nearly six rigs. Daily adjusted gross margin in the Lower 48 market averaged $8,706, more than 13% higher than the prior quarter. 1.1.2 - International Drilling: The quarterly operating revenues were up 8.7% to $296.32 million ($279.03 million in 1Q22). It is the primary segment for Nabors and represents 47% of the revenues. The International rig count averaged 74.3 rigs, up more than two rigs from the prior quarter. Daily adjusted gross margin for the second quarter averaged $14,331, up $1,197 from the preceding quarter. 1.1.3 - Drilling Solutions: Revenues were $55.88 million in the second quarter of 2022, up from $36.74 million in 1Q22. It mainly reflects increasing activity in the US with higher volumes in performance drilling software and managed pressure drilling.
Nabors Non-GAAP EPS of -$6.99 beats by $0.68, revenue of $631.77M beats by $18.95M
Nabors press release (NYSE:NBR): Q2 Non-GAAP EPS of -$6.99 beats by $0.68. Revenue of $631.77M (+29.1% Y/Y) beats by $18.95M.
Is Nabors Industries (NYSE:NBR) Using Debt In A Risky Way?
Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...
|NBR||US Energy Services||US Market|
Return vs Industry: NBR exceeded the US Energy Services industry which returned 0.4% over the past year.
Return vs Market: NBR exceeded the US Market which returned -23.7% over the past year.
|NBR Average Weekly Movement||12.0%|
|Energy Services Industry Average Movement||8.9%|
|Market Average Movement||6.9%|
|10% most volatile stocks in US Market||15.7%|
|10% least volatile stocks in US Market||2.8%|
Stable Share Price: NBR is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 12% a week.
Volatility Over Time: NBR's weekly volatility (12%) has been stable over the past year, but is still higher than 75% of US stocks.
About the Company
Nabors Industries Ltd. provides drilling and drilling-related services for land-based and offshore oil and natural gas wells. The company operates through five segments: U.S. Drilling, Canada Drilling, International Drilling, Drilling Solutions, and Rig Technologies.
Nabors Industries Fundamentals Summary
|NBR fundamental statistics|
Is NBR overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|NBR income statement (TTM)|
|Cost of Revenue||US$1.46b|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||-54.51|
|Net Profit Margin||-22.65%|
How did NBR perform over the long term?See historical performance and comparison
Is NBR undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 5/6
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for NBR?
Other financial metrics that can be useful for relative valuation.
|What is NBR's n/a Ratio?|
Price to Sales Ratio vs Peers
How does NBR's PS Ratio compare to its peers?
|NBR PS Ratio vs Peers|
|Company||PS||Estimated Growth||Market Cap|
DO Diamond Offshore Drilling
PTEN Patterson-UTI Energy
NBR Nabors Industries
Price-To-Sales vs Peers: NBR is good value based on its Price-To-Sales Ratio (0.4x) compared to the peer average (1.3x).
Price to Earnings Ratio vs Industry
How does NBR's PE Ratio compare vs other companies in the US Energy Services Industry?
Price-To-Sales vs Industry: NBR is good value based on its Price-To-Sales Ratio (0.4x) compared to the US Energy Services industry average (0.7x)
Price to Sales Ratio vs Fair Ratio
What is NBR's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PS Ratio||0.4x|
|Fair PS Ratio||1.2x|
Price-To-Sales vs Fair Ratio: NBR is good value based on its Price-To-Sales Ratio (0.4x) compared to the estimated Fair Price-To-Sales Ratio (1.2x).
Share Price vs Fair Value
What is the Fair Price of NBR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: NBR ($98.55) is trading below our estimate of fair value ($978.23)
Significantly Below Fair Value: NBR is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.
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How is Nabors Industries forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
Future Growth Score5/6
Future Growth Score 5/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NBR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).
Earnings vs Market: NBR is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: NBR is expected to become profitable in the next 3 years.
Revenue vs Market: NBR's revenue (15.4% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: NBR's revenue (15.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: NBR's Return on Equity is forecast to be high in 3 years time (25%)
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How has Nabors Industries performed over the past 5 years?
Past Performance Score0/6
Past Performance Score 0/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NBR is currently unprofitable.
Growing Profit Margin: NBR is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: NBR is unprofitable, and losses have increased over the past 5 years at a rate of 1.7% per year.
Accelerating Growth: Unable to compare NBR's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: NBR is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (44.1%).
Return on Equity
High ROE: NBR has a negative Return on Equity (-36.65%), as it is currently unprofitable.
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How is Nabors Industries's financial position?
Financial Health Score3/6
Financial Health Score 3/6
Short Term Liabilities
Long Term Liabilities
Stable Cash Runway
Forecast Cash Runway
Financial Position Analysis
Short Term Liabilities: NBR's short term assets ($923.4M) exceed its short term liabilities ($524.1M).
Long Term Liabilities: NBR's short term assets ($923.4M) do not cover its long term liabilities ($3.0B).
Debt to Equity History and Analysis
Debt Level: NBR's net debt to equity ratio (170.4%) is considered high.
Reducing Debt: NBR's debt to equity ratio has increased from 121.9% to 203.1% over the past 5 years.
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: Whilst unprofitable NBR has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: NBR is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 30.5% per year.
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What is Nabors Industries's current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Cash Flow Coverage
Forecast Dividend Yield
Dividend Yield vs Market
|Nabors Industries Dividend Yield vs Market|
|Company (Nabors Industries)||0%|
|Market Bottom 25% (US)||1.7%|
|Market Top 25% (US)||4.7%|
|Industry Average (Energy Services)||2.4%|
|Analyst forecast in 3 Years (Nabors Industries)||0.001%|
Notable Dividend: Unable to evaluate NBR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate NBR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if NBR's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if NBR's dividend payments have been increasing.
Earnings Payout to Shareholders
Earnings Coverage: NBR is not paying a notable dividend for the US market.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as NBR has not reported any payouts.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Tony Petrello (67 yo)
Mr. Anthony G. Petrello, also known as Tony, serves as a President, Chief Executive Officer, Secretary and Director at Nabors Energy Transition Corp. since March 2021. He also serves as a Chairman at Nabor...
CEO Compensation Analysis
|Tony Petrello's Compensation vs Nabors Industries Earnings|
|Date||Total Comp.||Salary||Company Earnings|
|Jun 30 2022||n/a||n/a|
|Mar 31 2022||n/a||n/a|
|Dec 31 2021||US$10m||US$2m|
|Sep 30 2021||n/a||n/a|
|Jun 30 2021||n/a||n/a|
|Mar 31 2021||n/a||n/a|
|Dec 31 2020||US$18m||US$1m|
|Sep 30 2020||n/a||n/a|
|Jun 30 2020||n/a||n/a|
|Mar 31 2020||n/a||n/a|
|Dec 31 2019||US$14m||US$2m|
|Sep 30 2019||n/a||n/a|
|Jun 30 2019||n/a||n/a|
|Mar 31 2019||n/a||n/a|
|Dec 31 2018||US$15m||US$2m|
|Sep 30 2018||n/a||n/a|
|Jun 30 2018||n/a||n/a|
|Mar 31 2018||n/a||n/a|
|Dec 31 2017||US$14m||US$2m|
|Sep 30 2017||n/a||n/a|
|Jun 30 2017||n/a||n/a|
|Mar 31 2017||n/a||n/a|
|Dec 31 2016||US$15m||US$2m|
|Sep 30 2016||n/a||n/a|
|Jun 30 2016||n/a||n/a|
|Mar 31 2016||n/a||n/a|
|Dec 31 2015||US$28m||US$2m|
Compensation vs Market: Tony's total compensation ($USD9.98M) is above average for companies of similar size in the US market ($USD4.14M).
Compensation vs Earnings: Tony's compensation has been consistent with company performance over the past year.
Experienced Management: NBR's management team is seasoned and experienced (6.8 years average tenure).
Experienced Board: NBR's board of directors are seasoned and experienced ( 10.7 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
|15 Dec 21||SellUS$56,500||John Kotts||Individual||680||US$83.10|
|Owner Type||Number of Shares||Ownership Percentage|
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 14.3%.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
Nabors Industries Ltd.'s employee growth, exchange listings and data sources
- Name: Nabors Industries Ltd.
- Ticker: NBR
- Exchange: NYSE
- Founded: 1952
- Industry: Oil and Gas Drilling
- Sector: Energy
- Implied Market Cap: US$928.182m
- Shares outstanding: 9.42m
- Website: https://www.nabors.com
Number of Employees
- Nabors Industries Ltd.
- Crown House
- Second Floor
- HM 08
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|NBR||NYSE (New York Stock Exchange)||Yes||Common Shares||US||USD||Jan 1968|
|NBI1||DB (Deutsche Boerse AG)||Yes||Common Shares||DE||EUR||Jan 1968|
|0A6M||LSE (London Stock Exchange)||Yes||Common Shares||GB||USD||Jan 1968|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/09/27 00:00|
|End of Day Share Price||2022/09/27 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.