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NABORS INDUSTRIES LTDJuly 20262Q 2026 Earnings Presentation
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N A B O R S . C O M We often discuss expectations regarding our future markets, demand for our products and services, and ourperformance in our annual, quarterly, and current reports, press releases, and other written and oral statements.Such statements, including statements in this document that relate to matters that are not historical facts, are“forward-looking statements” within the meaning of the safe harbor provisions of Section 27A of the U.S. SecuritiesAct of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. These “forward-looking statements” arebased on our analysis of currently available competitive, financial and economic data and our operating plans. Theyare inherently uncertain, and investors should recognize that events and actual results could turn out to besignificantly different from our expectations.Factors to consider when evaluating these forward-looking statements include, but are not limited to:•geopolitical events, pandemics and other macro-events and their respective and collective impact on our operations as well as oil and gas markets and prices; •fluctuations and volatility in worldwide prices of and demand for oil and natural gas;•fluctuations in levels of oil and natural gas exploration and development activities;•fluctuations in the demand for our services;•competitive and technological changes and other developments in the oil and gas and oilfield services industries;•our ability to renew customer contracts in order to maintain competitiveness;•the existence of operating risks inherent in the oil and gas and oilfield services industries;•the possibility of the loss of one or a number of our large customers;•the amount and nature of our future capital expenditures and how we expect to fund our capital expenditures;•the occurrence of cybersecurity incidents, attacks and other breaches to our information technology systems;•the impact of long-term indebtedness and other financial commitments on our financial and operating flexibility;•our access to and the cost of capital, including the impact of a further downgrade in our credit rating, covenant restrictions, availability under our revolving credit facility, and future issuances of debt or equity securities and the global interest rate environment;•our dependence on our operating subsidiaries and investments to meet our financial obligations;Forward-Looking StatementsNABORS INDUSTRIES 2 •our ability to retain skilled employees;•our ability to realize the expected benefits of strategic transactions we may undertake;•changes in tax laws and the possibility of changes in other laws and regulation;•global views on and the regulatory environment related to energy transition and our ability to implement our energy transition initiatives; •potential long-lived asset impairments •the possibility of changes to U.S. trade policies and regulations including the imposition of trade embargoes, sanctions or tariffs, by either the U.S. or any other country in which we operate or have supply lines; •general economic conditions, including the capital and credit markets;•our ability to utilize NOLs.Our businesses depend, to a large degree, on the level of spending by oil and gas companies for exploration,development and production activities. Therefore, sustained lower oil or natural gas prices that have a materialimpact on exploration, development or production activities could also materially affect our financial position, resultsof operations and cash flows.The above description of risks and uncertainties is by no means all-inclusive but is designed to highlight what webelieve are important factors to consider. For a discussion of these factors and other risks and uncertainties, pleaserefer to our filings with the Securities and Exchange Commission ("SEC"), including those contained in our AnnualReports on Form 10-K and Quarterly Reports on Form 10-Q, which are available at the SEC's website atwww.sec.gov. We undertake no obligation to publicly update or revise any forward-looking statement as a result ofnew information, future events or otherwise, except as otherwise required by law.Non-GAAP Financial MeasuresThis presentation refers to certain “non-GAAP” financial measures, such as adjusted EBITDA, net debt, adjusted grossmargin and adjusted free cash flow. The components of these non-GAAP measures are computed by using amountsthat are determined in accordance with accounting principles generally accepted in the United States of America(“GAAP”). Other companies in our industry may compute these metrics differently. These measures have limitationsand should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP.
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N A B O R S . C O M 30%52%13%5%2Q 2026Revenue by Segment U.S. Drilling International Drilling Drilling Solutions Rig Technologies3 The Industry’s Most Innovative TechnologyNABORS INDUSTRIES Vertically Integrated Drilling and Technology Solutions Drilling OperationsRig TechnologiesDrilling Solutions Aligned to drive advanced drilling performance U.S. & INTERNATIONAL
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Vertical Integration Drives Significant ValueRig TechnologiesRig equipment & technology that enablesautomation, efficiency and consistency Drilling Solutions (NDS)Using the rig as an integrated platform to deliver differentiated servicesNABORS INDUSTRIES 4N A B O R S . C O MU.S. DrillingOperating a fleet of high-spec rigs across key U.S. basins International DrillingDeploying fit-for-purpose rigs in major marketsIntegration across operations, solutions, and technology allows Nabors to optimize performance, reliability, and customer outcomes.
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N A B O R S . C O M Recent Highlights – Momentum AcceleratesNABORS INDUSTRIES 5 Note: For the reconciliation of adjusted free cashflow, adjusted EBITDA and adjusted gross margin or other non-GAAP metrics to the most comparable GAAP measures see non-GAAP reconciliations in Appendix * Adjusted EBITDA less capex divided by adjusted EBITDAINTERNATIONALDRILLING 93.4average rig count up 0.8 rigs sequentially$17,534average daily gross margin up $654 sequentially, modestly above the guidance range Sustained operational performance across key markets MIDDLE EAST / SANADMaintained operational cadence in the Middle East2Rigs added:1 newbuild1 reactivationGrowing presence through SANAD JV 67.8average rig count up 2.5 rigs sequentially$13,784average daily gross margin up $607 sequentially, exceeding the high end of our guidance rangeDriven by strong commercial and operational excellence DRILLING SOLUTIONS~46%adjusted gross margin15%of total adjusted EBITDA from operationsDriven by strong commercial and operational excellenceLOWER 48DRILLINGBROAD-BASED IMPROVEMENTSequential EBITDA growth across every operating segment ABOVE EXPECTATIONSResults exceeded implied guidance RESILIENT PERFORMANCEMiddle East disruption impact was limited due to global supply chain footprint
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N A B O R S . C O M 6 Key Value Drivers Selective international growth aligned with customer demand and returns 1 Operational excellence in the U.S. Lower 48 2 Technology-led innovation with demonstrated results 3 Disciplined focus on improving capital structure and reducing debt 4These drivers support value creation through operational performance, disciplined capital allocation, and technology-enabled differentiation.
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N A B O R S . C O M 505560657075808590951001Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q2023 2024 2025 2026International DrillingAverage Rig Count1Improving International Rig EconomicsSelective International Growth Aligned with Customer Demand and Returns 7Note: Daily rig revenue and adjusted daily gross margin for drilling rigs only, excludes Nabors Drilling Solutions$0$10,000$20,000$30,000$40,000$50,000$60,0001Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q2023 2024 2025 '26International Drilling Daily MetricsDaily Rig RevenueAdjusted Daily Gross Margin Disciplined capital deployment focused on returns and long-term contracts,SANAD newbuilds,and redeployments in core markets, progressively at a pricing premium >17% growthsince year-end 2023The rig count in markets where we operate was essentially flat over the same period of time.NABORS INTERNATIONAL RIG COUNT$0$10,000$20,000$30,000$40,000$50,000$60,0001Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q2023 2024 2025 2026International Drilling Daily MetricsDaily Rig RevenueAdjusted Daily Gross Margin
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N A B O R S . C O M $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,0002021 2022 2023 2024 2025 1H'26International Drilling Daily MetricsDaily Rig RevenueDaily Gross Margin01020304050607080901002021 2022 2023 2024 2025 1H'26International DrillingAverage Rig CountDisciplined capital deployment focused on returns and long-term contracts,SANAD newbuilds,and redeployments in core markets, progressively at a pricing premium1Improving International Rig EconomicsSelective International Growth Aligned with Customer Demand and Returns 8Note: Daily rig revenue and adjusted daily gross margin for drilling rigs only, excludes Nabors Drilling Solutions >17% growth since year-end 2023The rig count in markets where we operate was essentially flat over the same period of time.NABORS INTERNATIONAL RIG COUNT
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N A B O R S . C O M 92211-3-1-1-1-131185949398 Rig Count7075808590951001051101Strategic Growth in International Markets 9Note: Estimates are based on current market conditions and information received from third parties, which are subject to change. Selective International Growth Aligned with Customer Demand and ReturnsAwarded/RestartInternational Drilling Rig CountOperatingEnd of contractActively pursuing multiple incremental opportunities with attractive returns
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N A B O R S . C O M 01020304050607080901001Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q2023 2024 2025 2026L48 Drilling AverageRig Count$0$10,000$20,000$30,000$40,0001Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q2023 2024 2025 2026L48 Drilling Daily MetricsDaily Rig RevenueAdjusted Daily Gross Margin2Efficiency and Performance Support Stabilizing Margins in a Challenging MarketOperational Excellence in the U.S. Lower 48 10Note: Daily rig revenue and adjusted daily gross margin for drilling rigs only, excludes Nabors Drilling Solutions Operational efficiency, performance, pricing and cost discipline enabled by high quality customer portfolio, support stabilizing margins in the Lower 48
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N A B O R S . C O M 01020304050607080901002021 2022 2023 2024 2025 1H'26Lower 48 DrillingAverage Rig Count $- $8,000 $16,000 $24,000 $32,000 $40,0002021 2022 2023 2024 2025 1H'26Lower 48 DrillingDaily MetricsDaily Rig RevenueAdjusted Daily Gross MarginOperational efficiency, performance, pricing and cost discipline enabled by high quality customer portfolio, support stabilizing margins in the Lower 48 2Efficiency and Performance Support Stabilizing Margins in a Challenging MarketOperational Excellence in the U.S. Lower 48 11Note: Daily rig revenue and adjusted daily gross margin for drilling rigs only, excludes Nabors Drilling Solutions
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N A B O R S . C O M -34%-13%-26%-23%-14%NBR Peer #1 Peer #2 Peer #3 Peer #4 ~20% Decline in Lower-48 Industry Marketed RigsOperational Excellence in the U.S. Lower 48 12Year-end marketed rig counts for selected contractors, 2023-2025Total L48 Marketed Rigs:760 ڵ600(~20% decline)202320232023202320232024202420242024202420252025202520252025Higher utilization supporting progressive pricing power2
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N A B O R S . C O M 13 Nabors Drilling SolutionsLeveraging ‘Rig as a Platform’Managed Pressure Drilling Performance Software Wellbore Placement Automated Casing Running Data Integration / Technology-Led Innovation with Demonstrated Results3 BOP Rentals
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N A B O R S . C O M 14NDS – Technology that Enhances PerformanceOur Portfolio: SolutionPerformance SoftwareRockit® and REVit®SmartSuiteTM*RigCLOUD®Integrated ServicesCasing RunningManaged Pressure Drilling Surface ToolsWellbore PlacementFunctionPerformance SoftwareAutomated drilling optimizationRig-based automation software Real-time and analytics platformIntegrated ServicesAutomated sequencing; mechanized pipe handlingFine-tuning formation pressureDrill pipe and BOP rentalsReal-time formation and directional dataBenefitPerformance SoftwareFaster, more consistent ROP, reduced human errorPrecision control; improved consistency and efficiencyInformed decision-making; lower invisible flat timeIntegrated ServicesSafer, consistent casing operations; reduced manual laborCommercializes complex wells; improves drilling efficiencyA turnkey solution for drilling equipmentBetter well placement, higher reservoir contact*A suite of over 50 apps including SmartNAV® and SmartSLIDE® – directional guidance steering and automated slide drilling controls Technology-Led Innovation with Demonstrated Results3
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N A B O R S . C O M 15A Framework to Analyze NDS NDS Enables Smart Operations with Data-Driven SolutionsTechnology-Led Innovation with Demonstrated Results3 Efficiency, consistency and safetyAutomation and remote operationsWell complexityLateral lengthsAddressable MarketGrowth DriversContentPenetration•Number of services per rig•Mix of performance solutions and integrated services per rigValue-based pricing$ / RIGSU.S. and international marketsNabors and third-party rigsINDUSTRY RIG COUNT▲▲▲▲
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N A B O R S . C O M 0200400600800 $- $20 $40 $60 $801Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q2023 2024 2025 2026U.S BKR Rig Count$ millionsNDS - U.S.NDS U.S. RevenueBKR Rig Count020040060080010001200 $- $20 $40 $60 $801Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q2023 2024 2025 2026Select country BKR rig count$ millionsNDS – International(1)NDS International RevenueBKR Rig CountU.S.16 NDS – Global Market ReachInternationalL48 – Offshore – Alaska(1) Select country rig count per Baker Hughes - countries in which NDS operated>15 Countries2Q’261Q’264Q’253Q’252Q’251Q’25($ millions)$44.0$39.6$41.1$42.2$40.6$39.4NDS U.S. Rev.554548548540571588Avg. rig count2Q’261Q’264Q’253Q’252Q’251Q’25($ millions)$66.7$66.6$66.7$65.6$67.1$40.3NDS Int’l Rev.895972942935721816Avg. rig countTechnology-Led Innovation with Demonstrated Results3Note: NDS-U.S. graphic and table exclude Quail ToolsNote: On 8/3/25 Baker Hughes updated its worldwide rig count to reflect more than 230 rigs operating in Saudi Arabia
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N A B O R S . C O M 0%20%40%60%80%100% $- $100 $200 $300 $400 $5002021 2022 2023 2024 2025 1H'26*NDS Revenue, Adjusted EBITDA* and Free Cashflow Conversion** RevenueAdjusted EBITDAFCF ConversionNDS Expansion from Greater Adoption and Improving Service-line MixTechnology-Led Innovation with Demonstrated Results 17 3 NOTE: All values on this slide exclude Quail Tools* 1H 2026 revenue and adjusted EBITDA are annualized** FCF conversion is calculated as adjusted EBITDA less capex divided by adjusted EBITDA**Software services driving strong free cash flow conversion**92%1H 2026 *
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N A B O R S . C O M Lower 48 – Nabors Rigs18 NDS Growth Driven by Increased Product PenetrationLower 48 – Third PartyTechnology-Led Innovation with Demonstrated Results3 $- $2 $4 $6 $8 $10 $12 $14 $161Q 2Q2026MillionsNDS L48Third Party Rig Revenue - 100 200 300 400 500 6001Q 2Q2026Average Rigs WorkingL48 Third-party Market Average Rigs Working12%1% $- $5 $10 $15 $20 $25 $30 $351Q 2Q2026MillionsNDS L48Nabors Rig Revenue - 10 20 30 40 50 60 70 80 90 1001Q 2Q2026Average Rigs WorkingL48 Nabors Average Rigs Working11%4%
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N A B O R S . C O M PACE-X Ultra : The Next-Generation, High-Spec Rig Technology-Led Innovation with Demonstrated Results 19 3 — Eric Kolstad, EVP of Wells of Caturus EnergyThe integration of this leading-edge technology represents the highest standard of power and performance in the industry and, just as importantly, demonstrates our continued commitment to safe and sustainable operations while improving drilling cycle time. PACE-X Ultra PACE®-X1,000,000 lbs.800,000 lbs.Mast Rating35,000 ft of 5-7/8” drill pipe25,000 ftRacking CapacityC500 High-Torque or Sigma65,000+ ft/lbs. 500 Ton AC51,400 ft/lbs.Canrig Top Drive6 x CAT 3512C with Smart EMS and DGB24 x CAT 3512CEngines/Generators3 x 2,000 HP 10,000 PSI Mud Pressure 3 x 1,600 HP7,500 PSI Mud Pressure Mud Pumps The Most Capable Drilling System in the Lower 48Expanding Next-Gen FleetBuilt for Longer, Deeper, More Complex WellsPremium Dayrates and TermFull-Service Model Driving Market Premium >$40k All-In Daily Revenue(Including ancillary and NDS services)
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N A B O R S . C O M A New Standard for Rig Floor PerformanceTechnology-Led Innovation with Demonstrated Results3 INTRODUCING THE Canrig Titan Now in commercial serviceExceptional early field results AUTOMATED WRENCH Superior torque accuracyFaster connection time with consistent make-up in one biteLower Cost of Ownership Improved safety - fewer risks by lowering crew exposure
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N A B O R S . C O M 21 Quaise Energy Moves From Venture Investment to Field Deployment Technology-Led Innovation with Demonstrated Results3A Nabors rig is now operating at Project Obsidian in Central Oregon – turning our geothermal investment thesis into an active commercial relationship.FIRST-OF-ITS-KIND SUPERHOT GEOTHERMAL PROJECT 300-500ºCSUPERHOT ROCK50 MWPHASE I OF IIIINITIAL PHASEPHASE I OF IIIProject Obsidian is planned to be a 1+ GW power plant using a combination of conventional drilling and millimeter wave drilling technology.
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N A B O R S . C O M 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2Q'26Gross Leverage (x)2.0x 3.2x 3.2x 2.6x 2.2x 2.4x 2.5x 3.3x 5.8x 7.5x 4.8x 4.2x 5.3x 6.8x 3.6x 3.5x 2.9x 2.8x 2.4xGross Debt ($ billion)$3.8 $3.9 $4.4 $4.6 $4.4 $3.9 $4.3 $3.7 $3.6 $4.0 $3.6 $3.3 $3.0 $3.3 $2.5 $3.1 $2.5 $2.5 $2.10.0x1.0x2.0x3.0x4.0x5.0x6.0x7.0x8.0x $- $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 $5.0 Gross Leverage BillionGross Debt and Gross LeverageGross Leverage (x)Gross Debt ($ billion)Gross Leverage Reduced to Lowest Level Since 2013Disciplined Focus on Improving Capital Structure and Reducing Debt 22 4 * Gross Leverage is year end gross debt divided by TTM Adjusted EBITDA*
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N A B O R S . C O M 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2Q'26Net Leverage (x)1.7x 2.3x 2.6x 2.3x 1.8x 2.1x 2.2x 3.0x 5.3x 6.7x 4.1x 3.6x 4.4x 4.7x 2.9x 2.3x 2.4x 1.7x 1.8xNet Debt ($ billion)$3.2 $2.8 $3.6 $4.1 $3.6 $3.4 $3.8 $3.4 $3.3 $3.7 $3.1 $2.9 $2.5 $2.3 $2.1 $2.1 $2.1 $1.6 $1.60.0x1.0x2.0x3.0x4.0x5.0x6.0x7.0x8.0x $- $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5BillionNet Debt and Net LeverageNet Leverage (x)Net Debt ($ billion)Significant Headway toward ~1x Net Leverage GoalDisciplined Focus on Improving Capital Structure and Reducing Debt 23 4 * Net Leverage is year end net debt divided by TTM Adjusted EBITDA*
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N A B O R S . C O M - -250 650 550 700 $0$200$400$600$8002026 2027 2028 2029 2030 2031 2032MillionActively Managing Maturity ProfileDisciplined Focus on Improving Capital Structure and Reducing Debt 24Notes4As of 6/30/26As of 12/31/25As of 12/31/24($ millions)$2,120$2,495$2,505Gross Debt$510$941$397Cash*$1,610$1,554$2,108Net Debt* Cash includes short-term investmentsClear runway to manageable 2029 maturityClear runway to manageable 2029 maturity
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Appendix25
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N A B O R S . C O M Reconciliation of Non-GAAP Financial Measures to Net Income (Loss) 26 Adjusted EBITDA represents net income (loss) before, income taxes, investment income (loss), interest expense, gain on bargain purchase, other, net and depreciation and amortization. Adjusted EBITDA is a non-GAAP financial measure and should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. In addition, adjusted EBITDA excludes certain cash expenses that the Company is obligated to make. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including adjusted EBITDA and adjusted operating income (loss), because it believes that these financial measures accurately reflect the Company’s ongoing profitability and performance. Securities analysts and investors use this measure as one of the metrics on which they analyze the Company’s performance. Other companies in this industry may compute these measures differently. A reconciliation of this non-GAAP measure to net income (loss), which is the most closely comparable GAAP measure, is provided in the table below.(In thousands)June 30, March 31, June 30,2025 2026 2026Net income (loss) (2,205)$ 4,262$ (1,523)$ Income tax expense (benefit) 23,077 16,884 16,405 Income (loss) before income taxes 20,872 21,146 14,882 Investment (income) loss (6,129) (2,887) (2,131) Interest Expense 56,081 43,761 42,678 Gain on bargain purchase (3,500) - - Other, net6,074 (13,393) 5,682 Adjusted Operating Income (loss) 73,398 48,627 61,111 Depreciation and Amortization 175,061 156,186 160,549 Adjusted EBITDA248,459$ 204,813$ 221,660$ Three Months Ended
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N A B O R S . C O M Reconciliation of U.S. Drilling Segment Adjusted Gross Margin to U.S. Drilling Segment Adjusted Operating Income 27 Adjusted gross margin by segment represents adjusted operating income (loss) plus general and administrative costs, research and engineering costs and depreciation and amortization. June 30, March 31 Ju ne 30,2025 2026 2026Lower 48 - U.S. - DrillingAdjusted operating income 21,515$ 17,405$ 24,722$ Plus: General and administrative costs 4,481 5,324 4,974 Plus: Research and engineering888 1,143 1,198 GAAP Gross Margin 26,884 23,872 30,894 Plus: Depreciation and amortization52,080 53,595 54,093 Adjusted gross margin78,964$ 77,467$ 84,987$ Other - U.S. - DrillingAdjusted operating income 18,273$ 7,219$ 6,239$ Plus: General and administrative costs 896 458 407 Plus: Research and engineering64 80 86 GAAP Gross Margin 19,233 7,757 6,732 Plus: Depreciation and amortization9,953 9,846 9,027 Adjusted gross margin29,186$ 17,603$ 15,759$ U.S. - DrillingAdjusted operating income 39,788$ 24,624$ 30,961$ Plus: General and administrative costs 5,377 5,782 5,381 Plus: Research and engineering952 1,223 1,284 GAAP Gross Margin 46,117 31,629 37,626 Plus: Depreciation and amortization62,033 63,441 63,120 Adjusted gross margin108,150$ 95,070$ 100,746$ (In thousands)Three Months Ended
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N A B O R S . C O M Reconciliation of Net Debt to Total Debt 28 Net debt is computed by subtracting the sum of cash, cash equivalents and short-term investments from total debt. This non-GAAP measure has limitations and therefore should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including net debt, because it believes that this financial measure accurately measures the Company’s liquidity. In addition, securities analysts and investors use this measure as one of the metrics on which they analyze the Company’s performance. Other companies in this industry may compute this measure differently. A reconciliation of net debt to total debt, which is the nearest comparable GAAP financial measure, is provided in the table below.December 31, March 31, June 30,2025 2026 2026Current Debt 377,492$ -$ -$ Long-Term Debt2,117,187 2,118,729 2,120,276 Total Debt 2,494,679 2,118,729 2,120,276 Cash & Short-term Investments940,738 500,853 509,833 Net Debt1,553,941 1,617,876 1,610,443 (In thousands)
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N A B O R S . C O M Three Months Ended June 30, 2026U.S. DrillingInternational DrillingDrilling SolutionsRig TechnologiesOther reconciling itemsTotalAdjusted operating income (loss) 30,961$ 45,860$ 32,125$ 1,497$ (49,332)$ 61,111$ Depreciation and amortization63,120 84,673 7,888 1,683 3,185 160,549 Adjusted EBITDA94,081$ 130,533$ 40,013$ 3,180$ (46,147)$ 221,660$ Three Months Ended March 31, 2026U.S. DrillingInternational DrillingDrilling SolutionsRig TechnologiesOther reconciling itemsTotalAdjusted operating income (loss) 24,624$ 40,757$ 31,872$ (1,888)$ (46,738)$ 48,627$ Depreciation and amortization63,441 80,524 6,790 2,393 3,038 156,186 Adjusted EBITDA88,065$ 121,281$ 38,662$ 505$ (43,700)$ 204,813$ Three Months Ended June 30, 2025U.S. DrillingInternational DrillingDrilling SolutionsRig TechnologiesOther reconciling itemsTotalAdjusted operating income (loss) 39,788$ 36,051$ 50,365$ 1,721$ (54,527)$ 73,398$ Depreciation and amortization62,033 81,607 26,136 3,453 1,832 175,061 Adjusted EBITDA101,821$ 117,658$ 76,501$ 5,174$ (52,695)$ 248,459$ Reconciliation of Adjusted EBITDA by Segment to Adjusted Operating Income (Loss) by Segment 29 (In thousands)
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N A B O R S . C O M Mar. 31, 2025Jun. 30, 2025Sep. 30, 2025Dec. 31, 2025Mar. 31, 2026Jun. 30, 2026Drilling Solutions - U.S. 52,832$ 103,193$ 76,361$ 41,140$ 39,647$ 43,972$ Drilling Solutions - International40,347 67,090 65,581 66,739 66,575 66,668 Total Drilling Solutions - operating revenues93,179$ 170,283$ 141,942$ 107,879$ 106,222$ 110,640$ Drilling Solutions - U.S. 52,832$ 103,193$ 76,361$ 41,140$ 39,647$ 43,972$ Quail Tools(13,429) (62,582) (34,198) - - - Total Drilling Solutions - operating revenues excluding Quail Tools39,403$ 40,611$ 42,163$ 41,140$ 39,647$ 43,972$ Reconciliation of Drilling Solutions Revenue by Geography 30 (In thousands)For the three months ended
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N A B O R S . C O M Reconciliation of Adjusted Free Cash Flow to Net Cash Provided by Operating Activities 31 Adjusted free cash flow represents net cash provided by operating activities less cash used for capital expenditures, net of proceeds from sales of assets, and before cash paid for acquisition related costs. Management believes that adjusted free cash flow is an important liquidity measure for the Company and that it is useful to investors and management as a measure of the company’s ability to generate cash flow, after reinvesting in the Company for future growth, that could be available for paying down debt or other financing cash flows, such as dividends to shareholders. Adjusted free cash flow does not represent the residual cash flow available for discretionary expenditures. Adjusted free cash flow is a non-GAAP financial measure that should be considered in addition to, not as a substitute for or superior to, cash flow from operations reported in accordance with GAAP.Three Months Ended(In thousands)June 30 March 31 June 302025 2026 2026Net cash provided by operating activities 151,810$ 113,339$ 135,242$ Add: Capital expenditures, net of proceeds from sales of assets (141,849) (161,558) (122,900) Free cash flow 9,961$ (48,219)$ 12,342$ Cash paid for acquisition related costs30,635$ -$ -$ Adjusted free cash flow40,596$ (48,219)$ 12,342$
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NABORS INDUSTRIES LTD. NABORS.COMNABORS CORPORATE SERVICES515 W. Greens RoadSuite 1200Houston, TX 77067-4525 @ n a b o r s g l o b a lContact Us: William C. Conroy, CFAVP - Corporate Development and Investor RelationsWilliam.Conroy@nabors.comKara K. PeakDirector - Corporate Development and Investor RelationsKara.Peak@nabors.com