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Nabors Industries (NYSE: NBR) | Company Profile, History, Competitors

 

Nabors Industries (NYSE: NBR) is the world's largest land-based drilling company with operations in over 20 countries. The company also manufactures and sells specialized drilling equipment. It was founded in 1952 and headquartered in Hamilton, Bermuda.

Nabors was founded in 1952 by Clair Nabors as a oil service provider in Prudhoe Bay Field on Alaska's North Slope. It has since expanded to be one of the largest land-based drillers in the world. Nabors provides land-based drilling rigs to the lower 48 US states and Alaska,Gulf of Mexico and Canada.

Business Overview

Nabors operates in five main segments:
  • International Drilling (58% of 2017 Revenues): Consists of 139 land-based drilling rigs in 20 countries as of 2017
  • US Land Drilling (31% of 2017 Revenues): Consists of 225 land-based drilling rigs in the lower 48 states as Alaska as well as 14 platform rigs marketed in Gulf of Mexico as of 2017
  • Canada Land Drilling (3% of 2017 Revenues): Consists of 42 land-based drilling rigs in Canada as of 2017
  • Rig Services (9% of 2017 Revenues): Sells equipment for onshore and offshore drilling rigs
  • Drilling Solutions (6% of 2017 Revenues): Provides drilling technologies for drilling operations

International Drilling Segment

Nabors is the largest international land driller in the world. The land rigs are capable of drilling up to depths of 10,000-25,000 feet. The customers are primarily national oil companies and oil majors.

The company has exposure in Latin America and in Saudi Arabia. In Latin America, Nabors provides services in Argentina, Colombia and Mexico. Nabors has a 50/50 joint venture with Saudi Aramco (SANAD JV) to own, manage and operate onshore drilling rigs in Saudi Arabia.

US Land Drilling Segment

Nabors provides high specification rigs in the US market. These rigs can drill longer laterals in the US shale plays. In the high specification rigs market, Nabors is the 3rd largest US land driller behind Helmerich & Payne and Patterson-UTI Energy.

Canada Land Drilling Segment

Nabors provides high specification rigs in the Canada market. The conditions in Canada are highly seasonal with reduced activity in the summer months.

Rig Services Segment

Nabors manufactures and sells top drives and drilling equipment for onshore and offshore drilling rigs under the Canrig brand.

Drilling Solutions Segment

Nabors Drilling Solutions (NDS) focuses on developing specialized drilling technologies including surface automation, rig instrumentation, optimization software and directional drilling services.

History

In 1952, the company was founded by Clair Nabors as a oil service provider in Prudhoe Bay Field on Alaska's North Slope. After the bankruptcy of its parent, Anglo Energy, the company was acquired by an investor group led by Gene Isenberg and Marty Whitman. Through the 1980s until now, the company grew through a number of acquisitions. In 2015, the company spun out its Completions business when it merged with C&J Energy Services.

Management

Anthony G. Petrello (CEO): Anthony Petrello serves as CEO since 2012. Prior, he served in various roles at the company including COO and Deputy Chairman. He had also worked as a lawyer at Baker & McKenzie LLP.

William J. Restrepo (CFO): William Restrepo serves as CFO since 2014. Prior, he served as CFO of Pacific Drilling, Treasurer at Smith International, CFO at Seitel and also worked at Schlumberger.

Financials

 $ USD in millions    2013    2014 2015 2016 2017
 Revenues $6,152 
$6,804 
$3,864 
$2,228 
$2,564 
 Gross Profit $2,170 
$2,299 
 $1,493 
 $884 
 $846 
 Operating Profit $271 
($423)
 ($212) ($755)($344)
 Net Income$139 
($660)
($365)($1,007)($534)
 EPS$0.47 
($2.28)
($1.29)
($3.64)
($1.90)

References