Nabors Industries Ltd. today reported fourth quarter 2019 operating revenues of $714 million, compared to operating revenues of $758 million in the third quarter.
Highlights are below:
- Reduced total debt during the fourth quarter by $184 million to $3.3 billion and reduced net debt by $218 million to $2.9 billion
- Amended 2018 Credit Agreement in December 2019 to provide additional covenant flexibility
- Issued $1 billion of six- and eight-year notes in January 2020. Successfully tendered for approximately $950 million of existing ’21 and ’23 notes
- Generated cash provided by operating activities of $254 million in the fourth quarter, which translates into free cash flow of $232 million Â
- Averaged 98 rigs working in Lower 48 during the quarter, at average daily gross margin of $10,218
Anthony G. Petrello, Nabors Chairman, CEO and President, commented, “I am pleased with our fourth-quarter results, particularly considering the decrease in industry activity in the U.S. The strength of our financial results during the quarter allowed us to reduce net debt by $218 million, to $2.88 billion. We also completed a series of transactions during and after the quarter that enhance our financial flexibility.
“Our operating performance further confirms that we are pursuing the correct strategic initiatives. We remain dedicated to providing our customers with a market-leading value proposition, combining the highest quality global rig fleet, crews and drilling technologies. Â
“In the U.S. Lower 48, E&P operators continued to rationalize their activity levels through the fourth quarter. Although our rig count has fallen, our daily rig margins were essentially unchanged versus the third quarter. We remain disciplined in our pricing, and our excellent operating performance has reinforced our rate structure. The demand for high-specification rigs in the major oil basins in the Lower 48 remained resilient through the end of the year. For the full year, the Company’s average Lower 48 rig count increased by 1%, in stark contrast to the industry’s decline of 9%.
Full report here – Nabors Industries
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