Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 30, 2021 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2021 | |
Entity File Number | 001-32657 | |
Entity Registrant Name | NABORS INDUSTRIES LTD. | |
Entity Incorporation, State or Country Code | D0 | |
Entity Tax Identification Number | 98-0363970 | |
Entity Address, Address Line One | Crown House | |
Entity Address, Address Line Two | Second Floor | |
Entity Address, Address Line Three | 4 Par-la-Ville Road | |
Entity Address, City or Town | Hamilton | |
Entity Address, Country | BM | |
Entity Address, Postal Zip Code | HM08 | |
City Area Code | 441 | |
Local Phone Number | 292-1510 | |
Title of 12(b) Security | Common shares, $.05 par value per share | |
Trading Symbol | NBR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 8,241,552 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001163739 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 399,881 | $ 472,246 |
Short-term investments | 16 | 9,500 |
Accounts receivable, net of allowance of $70,047 and $69,807, respectively | 312,136 | 362,977 |
Inventory, net | 147,362 | 160,585 |
Assets held for sale | 111,682 | 16,562 |
Other current assets | 116,062 | 109,595 |
Total current assets | 1,087,139 | 1,131,465 |
Property, plant and equipment, net | 3,562,350 | 3,985,707 |
Deferred income taxes | 251,108 | 247,171 |
Other long-term assets | 141,721 | 139,085 |
Total assets | 5,042,318 | 5,503,428 |
Current liabilities: | ||
Trade accounts payable | 232,543 | 220,922 |
Accrued liabilities | 270,890 | 276,085 |
Income taxes payable | 19,070 | 10,157 |
Current lease liabilities | 6,613 | 8,305 |
Total current liabilities | 529,116 | 515,469 |
Long-term debt | 2,823,125 | 2,968,701 |
Other long-term liabilities | 352,348 | 318,034 |
Deferred income taxes | 2,289 | 1,576 |
Total liabilities | 3,706,878 | 3,803,780 |
Commitments and contingencies (Note 8) | ||
Redeemable noncontrolling interest in subsidiary (Note 3) | 398,497 | 442,840 |
Shareholders' equity: | ||
Preferred shares, par value $0.001 per share: Series A 6% Cumulative Mandatory Convertible; $50 per share liquidation preference; outstanding 0 and 4,870, respectively | 5 | |
Common shares, par value $0.05 per share: Authorized common shares 32,000; issued 9,181 and 8,383, respectively | 459 | 419 |
Capital in excess of par value | 3,433,144 | 3,423,935 |
Accumulated other comprehensive income (loss) | (8,624) | (11,124) |
Retained earnings (accumulated deficit) | (1,290,309) | (946,100) |
Less: treasury shares, at cost, 1,090 and 1,090 common shares, respectively | (1,315,751) | (1,315,751) |
Total shareholders' equity | 818,919 | 1,151,384 |
Noncontrolling interest | 118,024 | 105,424 |
Total equity | 936,943 | 1,256,808 |
Total liabilities and equity | $ 5,042,318 | $ 5,503,428 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Accounts receivable, net of allowance | $ 70,047 | $ 69,807 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, rate (as a percent) | 6.00% | 6.00% |
Preferred stock, liquidation preference (in dollars per share) | $ 50 | $ 50 |
Preferred stock, shares outstanding | 0 | 4,870,000 |
Common shares, par value (in dollars per share) | $ 0.05 | $ 0.05 |
Common shares, shares authorized | 32,000,000 | 32,000,000 |
Common shares, shares issued | 9,181,000 | 8,383,000 |
Treasury shares, at cost | 1,090,000 | 1,090,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenues and other income: | ||||
Operating revenues | $ 489,333 | $ 533,931 | $ 949,844 | $ 1,252,295 |
Investment income (loss) | (62) | 2,036 | 1,201 | (1,162) |
Total revenues and other income | 489,271 | 535,967 | 951,045 | 1,251,133 |
Costs and other deductions: | ||||
Direct costs | 312,466 | 326,557 | 603,120 | 788,397 |
General and administrative expenses | 51,580 | 46,244 | 106,240 | 103,628 |
Research and engineering | 7,965 | 7,305 | 15,432 | 18,714 |
Depreciation and amortization | 174,775 | 211,120 | 352,051 | 438,183 |
Interest expense | 41,714 | 51,206 | 84,689 | 105,928 |
Impairments and other charges | 59,868 | 57,852 | 62,351 | 334,286 |
Other, net | 6,587 | (30,795) | 11,450 | (47,905) |
Total costs and other deductions | 654,955 | 669,489 | 1,235,333 | 1,741,231 |
Income (loss) from continuing operations before income taxes | (165,684) | (133,522) | (284,288) | (490,098) |
Income tax expense (benefit): | ||||
Current | 27,195 | (336) | 38,098 | (7,539) |
Deferred | (2,476) | 4,782 | (3,654) | 29,678 |
Total income tax expense (benefit) | 24,719 | 4,446 | 34,444 | 22,139 |
Income (loss) from continuing operations, net of tax | (190,403) | (137,968) | (318,732) | (512,237) |
Income (loss) from discontinued operations, net of tax | 8 | 23 | 27 | (70) |
Net income (loss) | (190,395) | (137,945) | (318,705) | (512,307) |
Less: Net (income) loss attributable to noncontrolling interest | (5,614) | (10,167) | (14,390) | (27,632) |
Net income (loss) attributable to Nabors | (196,009) | (148,112) | (333,095) | (539,939) |
Less: Preferred stock dividend | (3,653) | (3,653) | (7,305) | |
Net income (loss) attributable to Nabors common shareholders | (196,009) | (151,765) | (336,748) | (547,244) |
Amounts attributable to Nabors common shareholders: | ||||
Net income (loss) from continuing operations | (196,017) | (151,788) | (336,775) | (547,174) |
Net income (loss) from discontinued operations | 8 | 23 | 27 | (70) |
Net income (loss) attributable to Nabors common shareholders | $ (196,009) | $ (151,765) | $ (336,748) | $ (547,244) |
Earnings (losses) per share: | ||||
Basic from continuing operations (in dollars per share) | $ (26.59) | $ (22.13) | $ (46.90) | $ (78.85) |
Basic from discontinued operations (in dollars per share) | (0.01) | |||
Total Basic (in dollars per share) | (26.59) | (22.13) | (46.90) | (78.86) |
Diluted from continuing operations (in dollars per share) | (26.59) | (22.13) | (46.90) | (78.85) |
Diluted from discontinued operations (in dollars per share) | (0.01) | |||
Total Diluted (in dollars per share) | $ (26.59) | $ (22.13) | $ (46.90) | $ (78.86) |
Weighted-average number of common shares outstanding: | ||||
Basic (in shares) | 7,460 | 7,052 | 7,281 | 7,052 |
Diluted (in shares) | 7,460 | 7,052 | 7,281 | 7,052 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||
Net income (loss) attributable to Nabors | $ (196,009) | $ (148,112) | $ (333,095) | $ (539,939) |
Other comprehensive income (loss), before tax: | ||||
Translation adjustment attributable to Nabors | 2,092 | 6,671 | 4,320 | (10,694) |
Pension liability amortization and adjustment | 52 | 52 | (1,796) | 104 |
Unrealized gains (losses) and amortization on cash flow hedges | 142 | 284 | ||
Other comprehensive income (loss), before tax | 2,144 | 6,865 | 2,524 | (10,306) |
Income tax expense (benefit) related to items of other comprehensive income (loss) | 12 | 47 | 24 | 94 |
Other comprehensive income (loss), net of tax | 2,132 | 6,818 | 2,500 | (10,400) |
Comprehensive income (loss) attributable to Nabors | (193,877) | (141,294) | (330,595) | (550,339) |
Net income (loss) attributable to noncontrolling interest | 5,614 | 10,167 | 14,390 | 27,632 |
Comprehensive income (loss) attributable to noncontrolling interest | 5,614 | 10,167 | 14,390 | 27,632 |
Comprehensive income (loss) | $ (188,263) | $ (131,127) | $ (316,205) | $ (522,707) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (318,705) | $ (512,307) |
Adjustments to net income (loss): | ||
Depreciation and amortization | 352,052 | 438,182 |
Deferred income tax expense (benefit) | (3,649) | 29,682 |
Impairments and other charges | 58,710 | 310,296 |
Amortization of debt discount and deferred financing costs | 10,592 | 16,208 |
Losses (gains) on debt buyback | (8,185) | (51,678) |
Losses (gains) on long-lived assets, net | 17,488 | 2,428 |
Losses (gains) on investments, net | (775) | 4,733 |
Provision (recovery) of bad debt | 240 | 10,164 |
Share-based compensation | 10,741 | 15,756 |
Foreign currency transaction losses (gains), net | 2,499 | 2,130 |
Noncontrolling interest | (14,390) | (27,632) |
Other | 684 | 352 |
Changes in operating assets and liabilities, net of effects from acquisitions: | ||
Accounts receivable | 45,385 | 89,981 |
Inventory | 12,685 | (724) |
Other current assets | (6,624) | 7,926 |
Other long-term assets | (3,643) | 10,273 |
Trade accounts payable and accrued liabilities | 28,324 | (127,830) |
Income taxes payable | 8,697 | 8,823 |
Other long-term liabilities | 21,077 | (24,991) |
Net cash provided by (used for) operating activities | 213,203 | 201,772 |
Cash flows from investing activities: | ||
Purchases of investments | (28) | (16) |
Sales and maturities of investments | 11,369 | 1,861 |
Capital expenditures | (117,785) | (106,766) |
Proceeds from sales of assets and insurance claims | 21,525 | 12,772 |
Net cash (used for) provided by investing activities | (84,919) | (92,149) |
Cash flows from financing activities: | ||
Proceeds from issuance of long-term debt | 1,000,000 | |
Reduction in long-term debt | (21,800) | (1,218,622) |
Debt issuance costs | (2,421) | (16,023) |
Proceeds from revolving credit facilities | 110,000 | 1,240,000 |
Reduction in revolving credit facilities | (225,000) | (1,035,000) |
Repurchase of common and preferred shares | (13,858) | |
Dividends to common and preferred shareholders | (7,315) | (15,232) |
Distributions to noncontrolling interest | (50,867) | (1,005) |
Other | (1,990) | (1,576) |
Net cash (used for) provided by financing activities | (199,393) | (61,316) |
Effect of exchange rate changes on cash and cash equivalents | (1,349) | (3,336) |
Net increase (decrease) in cash and cash equivalents and restricted cash | (72,458) | 44,971 |
Cash and cash equivalents and restricted cash, beginning of period | 475,280 | 442,038 |
Cash and cash equivalents and restricted cash, end of period | 402,822 | 487,009 |
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | ||
Cash and cash equivalents, beginning of period | 472,246 | 435,990 |
Restricted cash, beginning of period | 3,034 | 6,048 |
Cash and cash equivalents and restricted cash, beginning of period | 475,280 | 442,038 |
Cash and cash equivalents, end of period | 399,881 | 484,336 |
Restricted cash, end of period | 2,941 | 2,673 |
Cash and cash equivalents and restricted cash, end of period | $ 402,822 | $ 487,009 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Mandatory Convertible Preferred SharesPreferred Stock | Common Stock | Capital in Excess of Par Value | Accumulated Other Comprehensive Income | Retained Earnings (Accumulated Deficit) | Treasury Shares | Non-controlling Interest | Total |
Balance at the beginning of the period at Dec. 31, 2019 | $ 6 | $ 416 | $ 3,412,972 | $ (11,788) | $ (104,775) | $ (1,314,020) | $ 67,354 | $ 2,050,165 |
Balance (in shares) at Dec. 31, 2019 | 5,613 | 416,198 | ||||||
Increase (Decrease) in Equity | ||||||||
Net income (loss) | (539,939) | 27,632 | (512,307) | |||||
Dividends declared to common shareholders | (3,633) | (3,633) | ||||||
Dividends declared to preferred shareholders | (7,305) | (7,305) | ||||||
Repurchase of shares | $ (1) | (12,127) | (1,731) | (13,859) | ||||
Repurchase of shares (in shares) | (743) | |||||||
Other comprehensive income (loss), net of tax | (10,400) | (10,400) | ||||||
Share-based compensation | 15,757 | 15,757 | ||||||
Noncontrolling interest contributions (distributions) | (1,004) | (1,004) | ||||||
Accrued distribution on redeemable noncontrolling interest in subsidiary | (8,739) | (8,739) | ||||||
Other | $ 3 | (1,549) | 357 | (1,189) | ||||
Other (in shares) | (407,809) | |||||||
Balance at the end of the period at Jun. 30, 2020 | $ 5 | $ 419 | 3,415,053 | (22,188) | (664,391) | (1,315,751) | 94,339 | 1,507,486 |
Balance (in shares) at Jun. 30, 2020 | 4,870 | 8,389 | ||||||
Balance at the beginning of the period at Mar. 31, 2020 | $ 5 | $ 419 | 3,408,454 | (29,006) | (508,200) | (1,315,751) | 85,177 | 1,641,098 |
Balance (in shares) at Mar. 31, 2020 | 4,870 | 419,466 | ||||||
Increase (Decrease) in Equity | ||||||||
Net income (loss) | (148,112) | 10,167 | (137,945) | |||||
Dividends declared to common shareholders | (119) | (119) | ||||||
Dividends declared to preferred shareholders | (3,653) | (3,653) | ||||||
Other comprehensive income (loss), net of tax | 6,818 | 6,818 | ||||||
Accrued distribution on redeemable noncontrolling interest in subsidiary | (4,307) | (4,307) | ||||||
Other | 6,599 | (1,005) | 5,594 | |||||
Other (in shares) | (411,077) | |||||||
Balance at the end of the period at Jun. 30, 2020 | $ 5 | $ 419 | 3,415,053 | (22,188) | (664,391) | (1,315,751) | 94,339 | 1,507,486 |
Balance (in shares) at Jun. 30, 2020 | 4,870 | 8,389 | ||||||
Balance at the beginning of the period at Dec. 31, 2020 | $ 5 | $ 419 | 3,423,935 | (11,124) | (946,100) | (1,315,751) | 105,424 | 1,256,808 |
Balance (in shares) at Dec. 31, 2020 | 4,870 | 8,383 | ||||||
Increase (Decrease) in Equity | ||||||||
Net income (loss) | (333,095) | 14,390 | (318,705) | |||||
Deferred dividends for earned PSUs | (10) | (10) | ||||||
Dividends declared to preferred shareholders | (3,653) | (3,653) | ||||||
Conversion of preferred shares | $ (5) | $ 34 | (34) | (5) | ||||
Conversion of preferred shares (in shares) | (4,870) | 668 | ||||||
Issuance of warrants on common shares | (2,719) | (2,719) | ||||||
Other comprehensive income (loss), net of tax | 2,500 | 2,500 | ||||||
Share-based compensation | 10,740 | 10,740 | ||||||
Noncontrolling interest contributions (distributions) | (1,790) | (1,790) | ||||||
Accrued distribution on redeemable noncontrolling interest in subsidiary | (4,732) | (4,732) | ||||||
Other | $ 6 | (1,497) | (1,491) | |||||
Other (in shares) | 130 | |||||||
Balance at the end of the period at Jun. 30, 2021 | $ 459 | 3,433,144 | (8,624) | (1,290,309) | (1,315,751) | 118,024 | 936,943 | |
Balance (in shares) at Jun. 30, 2021 | 9,181 | |||||||
Balance at the beginning of the period at Mar. 31, 2021 | $ 5 | $ 417 | 3,429,089 | (10,756) | (1,089,251) | (1,315,751) | 114,201 | 1,127,954 |
Balance (in shares) at Mar. 31, 2021 | 4,870 | 8,503 | ||||||
Increase (Decrease) in Equity | ||||||||
Net income (loss) | (196,009) | 5,614 | (190,395) | |||||
Conversion of preferred shares | $ (5) | $ 34 | (34) | (5) | ||||
Conversion of preferred shares (in shares) | (4,870) | 668 | ||||||
Issuance of warrants on common shares | (2,719) | (2,719) | ||||||
Other comprehensive income (loss), net of tax | 2,132 | 2,132 | ||||||
Share-based compensation | 3,965 | 3,965 | ||||||
Noncontrolling interest contributions (distributions) | (1,791) | (1,791) | ||||||
Accrued distribution on redeemable noncontrolling interest in subsidiary | (2,330) | (2,330) | ||||||
Other | $ 8 | 124 | 132 | |||||
Other (in shares) | 10 | |||||||
Balance at the end of the period at Jun. 30, 2021 | $ 459 | $ 3,433,144 | $ (8,624) | $ (1,290,309) | $ (1,315,751) | $ 118,024 | $ 936,943 | |
Balance (in shares) at Jun. 30, 2021 | 9,181 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020 | Jun. 30, 2020 | |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Dividends declared to common shareholders (in dollars per share) | $ 0.01 | $ 0.01 |
Dividends declared to preferred shareholders (in dollars per share) | $ 0.75 | $ 1.50 |
General
General | 6 Months Ended |
Jun. 30, 2021 | |
General. | |
General | Note 1 General Unless the context requires otherwise, references in this report to “we,” “us,” “our,” “the Company,” or “Nabors” mean Nabors Industries Ltd., together with our subsidiaries where the context requires. References in this report to “Nabors Delaware” mean Nabors Industries, Inc., a wholly owned subsidiary of Nabors. Our business is comprised of our global land-based and offshore drilling rig operations and other rig related services and technologies. These services and technologies include tubular running services, wellbore placement solutions, directional drilling, measurement-while-drilling (“MWD”), logging-while-drilling (“LWD”) systems and services, equipment manufacturing, rig instrumentation and drilling optimization software. With operations in approximately 20 countries, we are a global provider of drilling and drilling-related services for land-based and offshore oil and natural gas wells, with a fleet of rigs and drilling-related equipment which, as of June 30, 2021 included: ● 354 actively marketed rigs for land-based drilling operations in the United States, Canada and approximately 14 other countries throughout the world; and ● 29 actively marketed rigs for offshore drilling operations in the United States and multiple international markets. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 2 Summary of Significant Accounting Policies Interim Financial Information The accompanying unaudited condensed consolidated financial statements of Nabors have been prepared in conformity with generally accepted accounting principles in the United States (“U.S. GAAP”). Pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC” or “Commission”), certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been omitted. Therefore, these financial statements should be read together with our annual report on Form 10-K for the year ended December 31, 2020 (“2020 Annual Report”). In management’s opinion, the unaudited condensed consolidated financial statements contain all adjustments Principles of Consolidation Our condensed consolidated financial statements include the accounts of Nabors, as well as all majority owned and non-majority owned subsidiaries consolidated in accordance with U.S. GAAP. All significant intercompany accounts and transactions are eliminated in consolidation. In addition to the consolidation of our majority owned subsidiaries, we also consolidate variable interest entities (“VIE”) when we are determined to be the primary beneficiary of a VIE. Determination of the primary beneficiary of a VIE is based on whether an entity has (1) the power to direct activities that most significantly impact the economic performance of the VIE and (2) the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. Our joint venture, SANAD, which is equally owned by Saudi Aramco and Nabors, has been consolidated. As we have the power to direct activities that most significantly impact SANAD’s economic performance, including operations, maintenance and certain sourcing and procurement, we have determined Nabors to be the primary beneficiary. See Note 3—Joint Ventures. Inventory Inventory is stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out or weighted-average cost methods and includes the cost of materials, labor and manufacturing overhead. Inventory included the following: June 30, December 31, 2021 2020 (In thousands) Raw materials $ 118,150 $ 133,424 Work-in-progress 2,881 3,452 Finished goods 26,331 23,709 $ 147,362 $ 160,585 Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which changes accounting requirements for the recognition of credit losses from an incurred or probable impairment methodology to a current expected credit losses (CECL) methodology. The guidance is effective for interim and annual periods beginning after December 15, 2019. The guidance has been applied using the modified retrospective method with a cumulative effect adjustment to beginning retained earnings. Trade receivables (including the allowance for credit losses) are the only financial instrument in scope for ASU 2016-13 currently held by the Company. The adoption of this guidance did not have a material impact on our condensed consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which removes certain exceptions for intraperiod allocations and interim tax calculations and adds guidance to simplify accounting for income taxes. The guidance is effective for interim and annual periods beginning after December 15, 2020. The adoption of this guidance did not have a material impact on our condensed consolidated financial statements. |
Joint Ventures
Joint Ventures | 6 Months Ended |
Jun. 30, 2021 | |
Joint Ventures | |
Joint Ventures | Note 3 Joint Ventures During 2016, we entered into an agreement with Saudi Aramco to form a joint venture known as SANAD to own, manage and operate onshore drilling rigs in the Kingdom of Saudi Arabia. SANAD is equally owned by Saudi Aramco and Nabors. During 2017, Nabors and Saudi Aramco each contributed $20 million in cash for the purpose of capitalizing the joint venture upon formation. In addition, since inception Nabors and Saudi Aramco have each contributed a combination of drilling rigs, drilling rig equipment and other assets, including cash, each with a value of approximately $394 million to the joint venture. The contributions were received in exchange for redeemable ownership interests which accrue interest annually, have a twenty-five year maturity and are required to be converted to authorized capital should certain events occur, including the accumulation of specified losses. In the accompanying condensed consolidated balance sheet, Nabors has reported Saudi Aramco’s share of authorized capital as a component of noncontrolling interest in equity and Saudi Aramco’s share of the redeemable ownership interests as redeemable noncontrolling interest in subsidiary, classified as mezzanine equity. The accrued interest on the redeemable ownership interest is a non-cash financing activity and is reported as an increase in the redeemable noncontrolling interest in subsidiary line in our condensed consolidated balance sheet. In January 2021, SANAD settled approximately $100 million of the accrued interest from inception to December 31, 2020, by making a cash payment to each partner for their respective amounts. The assets and liabilities included in the condensed balance sheet below are (1) assets that can either be used to settle obligations of the VIE or be made available in the future to the equity owners through dividends, distributions or in exchange of the redeemable ownership interests (upon mutual agreement of the owners) or (2) liabilities for which creditors do not have recourse to other assets of Nabors. The condensed balance sheet of SANAD, as included in our condensed consolidated balance sheet, is presented below. June 30, December 31, 2021 2020 (In thousands) Assets: Cash and cash equivalents $ 304,924 $ 368,981 Accounts receivable 70,273 79,711 Other current assets 11,105 17,148 Property, plant and equipment, net 456,050 428,331 Other long-term assets 20,223 2,590 Total assets $ 862,575 $ 896,761 Liabilities: Accounts payable $ 60,269 $ 61,808 Accrued liabilities 29,792 18,791 Total liabilities $ 90,061 $ 80,599 |
Accounts Receivable Sales Agree
Accounts Receivable Sales Agreement | 6 Months Ended |
Jun. 30, 2021 | |
Accounts Receivable Sales Agreement | |
Accounts Receivable Sales Agreement | Note 4 Accounts Receivable Sales Agreement On September 13, 2019, we entered into a $250 million accounts receivable sales facility, consisting of a Receivables Sales Agreement and a Receivables Purchase Agreement (collectively, the “A/R Facility”) whereby certain U.S. operating subsidiaries of the Company (collectively, the “Originators”), sold or contributed, and will on an ongoing basis continue to sell or contribute, certain of their domestic trade accounts receivables to a wholly-owned, bankruptcy-remote, special purpose entity (the “SPE” or “Seller”). The SPE in turn sells, transfers, conveys and assigns to third-party financial institutions (the “Purchasers”) all the rights, title and interest in and to its pool of eligible receivables. The sale of these receivables qualified for sale accounting treatment in accordance with ASC 860. During the period of this program, cash receipts from the Purchasers at the time of the sale were classified as operating activities in our consolidated statement of cash flows. Subsequent collections on the pledged receivables, which were not sold, will be classified as operating cash flows in our consolidated statement of cash flows at the time of collection. On July 13, 2021, we entered into the First Amendment to the Receivables Purchase Agreement which extends the term of the A/R Facility by two years , to August 13, 2023. However, the expiration of the agreement could be accelerated to the earlier of (i) December 31, 2022, if by that date the Company’s 2018 Revolving Credit Facility is not amended to extend its termination date to as least October 11, 2024 and immediately after giving effect to such amendment the consolidated cash balance of the company is not at least $220 million or (ii) July 19, 2022, if any of the 5.5 % Senior Notes due 2023 of Nabors Delaware remain outstanding as of such date. The amendment also reduced the commitments of the Purchasers from $250 million to $150 million, with the possibility of being increased up to $200 million. Nabors Delaware and/or another subsidiary of Nabors act as servicers of the sold receivables. The servicers administer, collect and otherwise enforce these receivables and are compensated for doing so on terms that are generally consistent with what would be charged by an unrelated servicer. The servicers initially receive payments made by obligors on the receivables, then remit those payments in accordance with the Receivables Purchase Agreement. The servicers and the Originators have contingent indemnification obligations to the SPE, and the SPE has contingent indemnification obligations to the Purchasers, in each case customary for transactions of this type. These contingent indemnification obligations are guaranteed by the Company pursuant to an Indemnification Guarantee in favor of the Purchasers. The Purchasers have no recourse for receivables that are uncollectible as a result of the insolvency or inability to pay of the account debtors. The amount available for sale to the Purchasers under the A/R Facility fluctuates over time based on the total amount of eligible receivables generated during the normal course of business after excluding excess concentrations and certain other ineligible receivables. As of June 30, 2021, approximately $84.0 million had been sold to and as yet uncollected by the Purchasers. As of December 31, 2020, the corresponding number was approximately $54.0 million. Trade accounts receivable sold by the SPE to the Purchasers are derecognized from our condensed consolidated balance sheet. The fair value of the sold receivables approximated book value due to the short-term nature of the receivables and, as a result, no gain or loss on the sale of the receivables was recorded. Trade receivables pledged by the SPE as collateral to the Purchasers (excluding receivables sold to the Purchasers) totaled $40.9 million and $63.1 million as of June 30, 2021 and December 31, 2020, respectively, and are included in accounts receivable, net in our condensed consolidated balance sheet. The assets of the SPE cannot be used by the Company for general corporate purposes. Additionally, creditors of the SPE do not have recourse to assets of the Company (other than assets of the SPE). |
Debt
Debt | 6 Months Ended |
Jun. 30, 2021 | |
Debt | |
Debt | Note 5 Debt Debt consisted of the following: June 30, December 31, 2021 2020 (In thousands) 4.625% senior notes due September 2021 (1) $ 82,428 $ 86,329 5.50% senior notes due January 2023 24,446 28,443 5.10% senior notes due September 2023 120,141 121,077 0.75% senior exchangeable notes due January 2024 253,733 279,700 5.75% senior notes due February 2025 586,308 610,818 6.50% senior priority guaranteed notes due February 2025 50,485 50,485 9.00% senior priority guaranteed notes due February 2025 218,082 192,032 7.25% senior guaranteed notes due January 2026 559,978 559,978 7.50% senior guaranteed notes due January 2028 389,609 389,609 2018 revolving credit facility 557,500 672,500 2,842,710 2,990,971 Less: deferred financing costs 19,585 22,270 Long-term debt $ 2,823,125 $ 2,968,701 (1) The 4.625% senior notes due September 2021 are classified as long-term because we have the ability and intent to repay this obligation utilizing our 2018 Revolving Credit Facility. During the six months ended June 30, 2021, we repurchased $30.5 million aggregate principal amount outstanding of our senior unsecured notes for approximately $22.4 million in cash, including principal and $0.6 million in accrued and unpaid interest. In connection with these repurchases, we recognized a net gain of approximately $8.2 million for the six months ended June 30, 2021, which is included in Other, net in our condensed consolidated statement of income (loss). Exchange Transactions During the first quarter of 2021, we entered into two private exchange transactions in which Nabors Delaware exchanged 9.0% Senior Priority Guaranteed Notes due 2025 (the “9.0% Exchange Notes”) for various amounts of existing outstanding notes. Nabors Delaware did not receive any cash proceeds from the issuance of the Exchange Notes. Collectively from the series of exchanges, Nabors Industries, Inc. issued $26.1 million aggregate principal amount of the 9.0% Exchange Notes in exchange for $40.0 million aggregate principal amount of various Nabors Delaware’s outstanding Notes. We recorded a minimal gain in connection with the exchange transactions, which was accounted for in accordance with ASC 470-60, Troubled Debt Restructuring by Debtors. Under ASC 470-60, a gain is recorded in an amount equal to the sum of the future undiscounted payments (principal and interest) related to the new Exchange Notes plus the costs incurred in connection with the transaction, less the carrying value of the notes that were exchanged. In relation to the transactions, we recorded million related to future contractual interest payments on the new Exchange Notes and have included this amount in accrued liabilities and other long-term liabilities. The aggregate principal amounts and recognized gain for such transactions were as follows (in thousands): Six months ended June 30, 2021 Exchanged 0.75% senior exchangeable notes due January 2024 $ 35,000 5.75% senior notes due February 2025 5,000 Aggregate principal amount exchanged 40,000 Aggregate principal amount of debt issued in exchanges 26,050 0.75% Senior Exchangeable Notes Due January 2024 In January 2017, Nabors Delaware issued $575.0 million in aggregate principal amount of 0.75% exchangeable senior unsecured notes due 2024, which are fully and unconditionally guaranteed by Nabors. The notes bear interest at a rate of 0.75% per year payable semiannually on January 15 and July 15 of each year, beginning on July 15, 2017. As of The exchangeable notes are currently exchangeable, under certain conditions, at an exchange rate of .8018 common shares of Nabors per $1,000 principal amount of exchangeable notes (equivalent to an exchange price of approximately $1,247.19 per common share). The exchangeable notes were originally bifurcated for accounting purposes into debt and equity components of $411.2 million and $163.8 million, respectively, based on the terms of the notes and the relative fair value at the issuance date. Upon any exchange, as a result of an amendment to the notes, Nabors Delaware will settle its exchange obligation in cash. 2018 Revolving Credit Facility In October 2018, Nabors Delaware and Nabors Drilling Canada Limited (“Nabors Canada” and together with Nabors Delaware, the “Borrowers”) entered into a credit agreement dated October 11, 2018 by and among the Borrowers, the Guarantors identified therein, HSBC Bank Canada, as the Canadian lender (the “Canadian Lender”) the issuing banks and other lenders party thereto (the “US Lenders” and, together with the Canadian Lender, the “Lenders”) and Citibank, N.A., as administrative agent solely for the U.S. Lenders (as may be amended, restated, supplemented or otherwise modified from time to time, the “2018 Revolving Credit Facility”). The 2018 Revolving Credit Facility originally had a borrowing capacity of $1.267 billion and is fully and unconditionally guaranteed by Nabors and certain of its wholly owned subsidiaries. The 2018 Revolving Credit Facility matures at the earlier of (a) October 11, 2023 and (b) July 19, 2022, if any of Nabors Delaware’s existing 5.50 % senior notes due January 2023 remain outstanding as of such date. The 2018 Revolving Credit Facility contains certain affirmative and negative covenants. Amendment No. 1 to the 2018 Revolving Credit Facility provided for additional currencies in which letters of credit could be issued. On December 13, 2019, Amendment No. 2 was entered into which reduced the borrowing capacity to $1.0136 billion ($981.6 million for Nabors Delaware and $32.0 million for Nabors Canada), and replaced the net funded debt to capitalization covenant with a covenant to maintain net funded indebtedness at no greater than 5.5 times EBITDA. Amendment No. 3 to the 2018 Revolving Credit Facility was entered into on March 3, 2020, in order to permit letters of credit from the Canadian Lender on the portion of the facility dedicated to Canadian borrowings. In September 2020, Amendment No. 4 was entered into in order to revise certain of the covenant and collateral requirements under the 2018 Revolving Credit Facility. Amendment No. 4 provides the Lenders with a first lien security interest in certain drilling rigs located in the U.S. and Canada and replaced the prior covenant to maintain net funded debt at no greater than 5.5 times EBITDA with a new covenant to maintain minimum liquidity of no less than $160.0 million at any time. of the aggregate amount of unrestricted cash and cash equivalents held in deposit account of a commercial bank outside of the U.S. or Canada, plus (c) available commitments under the 2018 Revolving Credit Facility. :1, which was the case as of the date of this report. On July 29, 2021, in connection with the closing of the sale of substantially all of our Canada Drilling assets, we entered into a Canadian Amending Agreement with the Canadian Lender under which we repaid all outstanding loans owed to the Canadian Lender under the 2018 Revolving Credit Facility, the first lien security interest in the Canada assets was released and the commitments of the Canadian Lender under the 2018 Revolving Credit Facility were terminated. As of June 30, 2021, we had $557.5 million outstanding under our 2018 Revolving Credit Facility and the net book value of the collateralized assets under the 2018 Revolving Credit Facility was $1.26 billion. The weighted average interest rate on borrowings under the 2018 Revolving Credit Facility at June 30, 2021 was 3.62%. In order to make any future borrowings under the 2018 Revolving Credit Facility, Nabors and certain of its wholly owned subsidiaries are subject to compliance with the conditions and covenants contained therein, including compliance with applicable financial ratios. As of the date of this report, we were in compliance with all covenants under the 2018 Revolving Credit Facility. We expect to remain in compliance with all covenants under the 2018 Revolving Credit Facility during the twelve-month period following the date of this report based on our current operational and financial projections. However, we can make no assurance of continued compliance if our current projections or material underlying assumptions prove to be incorrect. If we fail to comply with the covenants, the revolving credit commitment could be terminated, and any outstanding borrowings under the facility could be declared immediately due and payable. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2021 | |
Shareholders' Equity | |
Shareholders' Equity | Note 6 Shareholders’ Equity Common shares At a special meeting of shareholders held April 20, 2020, our shareholders authorized a combination of our common shares (the “Reverse Stock Split”) at a ratio of not less than 1-for-15 and not greater than 1-for-50, with the exact ratio to be set within that range at the sole direction of our Board of Directors (the “Board”). On April 20, 2020, the Board set the Reverse Stock Split ratio at 1-for-50. As a result of the Reverse Stock Split, 50 pre-reverse split common shares automatically combined into one new common share, without any action on the part of the shareholders. Nabors’ authorized number of common shares were also proportionally decreased from 800,000,000 to 16,000,000 common shares. Subsequently, the par value of each common share was proportionally increased from Common stock warrants On May 27, 2021, the Board declared a distribution to holders of the Company’s common shares of warrants to purchase its common shares (the “Warrants”). Holders of Nabors common shares received two warrants on June 11, 2021 to shareholders of record as of June 4, 2021. Each Warrant represents the right to purchase one common share at an initial exercise price of $166.66667 per Warrant, subject to certain adjustments (the “Exercise Price”). In addition, Warrants submitted for exercise may be eligible to receive an additional one higher than the sum of the volume weighted average prices of Nabors’ common shares on each of the second, third and fourth days before any Warrant holder exercises its Warrants. Payment for common shares on exercise of Warrants may be in (i) cash or (ii)“Designated Notes,” which the Company initially defines as (a) Nabors Delaware’s (i) 5.10% Notes due 2023, (ii) 0.75% Exchangeable Notes due 2024, (iii) 5.75% Notes due 2025 and (b) the Company’s 7.25% Notes due 2026 exercisable or convertible into or exchangeable for common shares) at a price (or having a conversion price) that is less than 95% of the market price of the common shares. The common stock warrants are recognized as derivative liabilities in accordance with ASC 815-40. Accordingly, the Company recognizes the warrant instruments as liabilities at fair value and adjusts the instruments to fair value at each reporting period. The liabilities are subject to re-measurement at each balance sheet date until exercised, and any change in fair value is recognized in the Company’s statement of operations. The fair value of the Warrants was initially measured at fair value using a Monte Carlo pricing model and subsequently, the fair value of the Warrants have been estimated using a Monte Carlo pricing model at each measurement date. At distribution, the fair value of the Warrants was million. At June 30, 2021, the fair value of the Warrants was Convertible Preferred Shares During 2018, we issued 5.75 million of our 6% Series A Mandatory Convertible Preferred Shares (the “mandatory convertible preferred shares”), par value $0.001 per share, with a liquidation preference of $50 per share. As of December 31, 2020, we had 4.9 million mandatory convertible preferred shares outstanding. The mandatory convertible preferred shares automatically converted into common shares on May 3, 2021 at which time approximately 668,000 common shares were issued. Shareholder Rights Plan On May 5, 2020, our Board adopted a shareholder rights plan and declared a dividend of one right (a “Right”) for each outstanding common share to shareholders of record on May 15, 2020. Each Right entitles the holder to purchase from Nabors one one-thousandth of a Series B Junior Participating Preferred Share, par value $0.001 per share (the “Series B Preferred Shares’), of Nabors at a price of $58.08 per one one-thousandth of a Series B Preferred Share, subject to adjustment. The description of the Rights is set forth in a Rights Agreement, dated May 5, 2020 (the “Rights Agreement”), by and between Nabors and Computershare Trust Company, N.A., as Rights Agent. The Rights expired on April 30, 2021. Initially, the Rights were not be exercisable and would trade with our common shares. Under the Rights Agreement, the Rights would become exercisable only if a person or group or persons acting together (each, an “acquiring person”) acquires beneficial ownership of 4.9 % or more of our outstanding common shares. The Rights Agreement was amended on May 27, 2020, to permit the shareholder identified therein, together with affiliates and associates, to beneficially own up to 10% of our outstanding common shares. If the Rights were triggered, each holder of a Right (other than the acquiring person, whose Rights would become void) would be entitled to purchase additional shares of our common stock at a 50% discount. In addition, if we were acquired in a merger or other business combination after an Acquiring Person acquired more than 4.9% of our outstanding common shares ( 10% for the shareholder identified in the amendment), each holder of a Right would then be entitled to purchase shares of the acquiring company’s stock at a 50% discount. Our Board, at its option, could exchange each Right (other than Rights owned by the acquiring person that have become void) in whole or in part, at an exchange ratio of one common share per outstanding Right, subject to adjustment. Except as provided in the Rights Agreement, our Board was entitled to redeem the Rights at $0.01 per Right. A |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Measurements | |
Fair Value Measurements | Note 7 Fair Value Measurements Fair value is the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date (exit price). We utilize market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market-corroborated, or generally unobservable. We primarily apply the market approach for recurring fair value measurements and endeavor to utilize the best information available. Accordingly, we employ valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. The use of unobservable inputs is intended to allow for fair value determinations in situations where there is little, if any, market activity for the asset or liability at the measurement date. We are able to classify fair value balances utilizing a fair value hierarchy based on the observability of those inputs. Under the fair value hierarchy: ● Level 1 measurements include unadjusted quoted market prices for identical assets or liabilities in an active market; ● Level 2 measurements include quoted market prices for identical assets or liabilities in an active market that have been adjusted for items such as effects of restrictions for transferability and those that are not quoted but are observable through corroboration with observable market data, including quoted market prices for similar assets; and ● Level 3 measurements include those that are unobservable and of a subjective nature. Recurring Fair Value Measurements The fair value of the common stock warrants was initially measured at fair value using a Monte Carlo option pricing model and subsequently, the fair value of the warrants have been estimated using the Monte Carlo pricing model for each measurement date. The estimated fair value of the warrants is determined using Level 3 inputs. Inherent in the option pricing simulation are assumptions related to expected stock-price volatility, expected life and risk-free interest rate. The Company estimates the volatility of its common stock warrants based on implied and historical volatility of the company’s traded common stock. The risk-free interest rate is based on the U.S. Treasury zero-coupon yield curve on the grant date for a maturity similar to the expected remaining life of the warrants. The expected life of the warrants is based on the Company’s ability to initiate expiration, subject to a 20 business day notice period. Nonrecurring Fair Value Measurements We applied fair value measurements to our nonfinancial assets and liabilities measured on a nonrecurring basis, which consist of measurements primarily related to assets held for sale, goodwill, intangible assets and other long-lived assets and assets acquired and liabilities assumed in a business combination. Based upon our review of the fair value hierarchy, the inputs used in these fair value measurements were considered Level 3 inputs. Fair Value of Financial Instruments We estimate the fair value of our financial instruments in accordance with U.S. GAAP. The fair value of our long-term debt and revolving credit facilities is estimated based on quoted market prices or prices quoted from third-party financial institutions. The fair value of our debt instruments is determined using Level 2 measurements. The carrying and fair values of these liabilities were as follows: June 30, 2021 December 31, 2020 Carrying Fair Carrying Fair Value Value Value Value (In thousands) 4.625% senior notes due September 2021 $ 82,428 $ 82,718 $ 86,329 $ 78,862 5.50% senior notes due January 2023 24,446 23,683 28,443 18,768 5.10% senior notes due September 2023 120,141 116,524 121,077 78,435 0.75% senior exchangeable notes due January 2024 253,733 257,391 279,700 169,458 5.75% senior notes due February 2025 586,308 540,195 610,818 318,871 6.50% senior priority guaranteed notes due February 2025 50,485 49,156 50,485 44,059 9.00% senior priority guaranteed notes due February 2025 218,082 229,869 192,032 185,221 7.25% senior guaranteed notes due January 2026 559,978 550,240 559,978 396,106 7.50% senior guaranteed notes due January 2028 389,609 376,409 389,609 267,369 2018 revolving credit facility 557,500 557,500 672,500 672,500 $ 2,842,710 $ 2,783,685 $ 2,990,971 $ 2,229,649 Less: deferred financing costs 19,585 22,270 $ 2,823,125 $ 2,968,701 The fair values of our cash equivalents, trade receivables and trade payables approximate their carrying values due to the short-term nature of these instruments. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 8 Commitments and Contingencies Contingencies Income Tax We operate in a number of countries and our tax returns filed in those jurisdictions are subject to review and examination by tax authorities within those jurisdictions. We do not recognize the benefit of income tax positions we believe are more likely than not to be disallowed upon challenge by a tax authority. If any tax authority successfully challenges our operational structure, intercompany pricing policies or the taxable presence of our subsidiaries in certain countries, if the terms of certain income tax treaties are interpreted in a manner that is adverse to our structure, or if we lose a material tax dispute in any country, our effective tax rate on our worldwide earnings could change substantially. In certain jurisdictions we have recognized deferred tax assets and liabilities. Judgment and assumptions are required in determining whether deferred tax assets will be fully or partially utilized. When we estimate that all or some portion of certain deferred tax assets such as net operating loss carryforwards will not be utilized, we establish a valuation allowance for the amount we determine to be more likely than not unrealizable. We continually evaluate strategies that could allow for future utilization of our deferred assets. Any change in the ability to utilize such deferred assets will be accounted for in the period of the event affecting the valuation allowance. If facts and circumstances cause us to change our expectations regarding future tax consequences, the resulting adjustments could have a material effect on our financial results or cash flow. At this time, we consider it more likely than not that we will have sufficient taxable income in the future that will allow us to realize the deferred tax assets that we have recognized. However, it is possible that some of our recognized deferred tax assets, relating to net operating loss carryforwards, could expire unused or could carryforward indefinitely without utilization. Therefore, unless we are able to generate sufficient taxable income from our component operations, a substantial valuation allowance to reduce our deferred tax assets may be required, which would materially increase our tax expense in the period the allowance is recognized and materially adversely affect our results of operations and statement of financial condition. Litigation Nabors and its subsidiaries are defendants or otherwise involved in a number of lawsuits in the ordinary course of business. We estimate the range of our liability related to pending litigation when we believe the amount and range of loss can be estimated. We record our best estimate of a loss when the loss is considered probable. When a liability is probable and there is a range of estimated loss with no best estimate in the range, we record the minimum estimated liability related to the lawsuits or claims. As additional information becomes available, we assess the potential liability related to our pending litigation and claims and revise our estimates. Due to uncertainties related to the resolution of lawsuits and claims, the ultimate outcome may differ from our estimates. For matters where an unfavorable outcome is reasonably possible and significant, we disclose the nature of the matter and a range of potential exposure, unless an estimate cannot be made at the time of disclosure. In the opinion of management and based on liability accruals provided, our ultimate exposure with respect to these pending lawsuits and claims is not expected to have a material adverse effect on our consolidated financial position or cash flows, although they could have a material adverse effect on our results of operations for a particular reporting period. In March 2011, the Court of Ouargla entered a judgment of approximately $21.0 million (at June 30, 2021 exchange rates) against us relating to alleged violations of Algeria’s foreign currency exchange controls, which require that goods and services provided locally be invoiced and paid in local currency. The case relates to certain foreign currency payments made to us by CEPSA, a Spanish operator, for wells drilled in 2006. Approximately $7.5 million of the total contract amount was paid offshore in foreign currency, and approximately $3.2 million was paid in local currency. The judgment includes fines and penalties of approximately four times the amount at issue. We have appealed the ruling based on our understanding that the law in question applies only to resident entities incorporated under Algerian law. An intermediate court of appeals upheld the lower court’s ruling, and we appealed the matter to the Supreme Court. On September 25, 2014, the Supreme Court overturned the verdict against us, and the case was reheard by the Ouargla Court of Appeals on March 22, 2015 in light of the Supreme Court’s opinion. On March 29, 2015, the Ouargla Court of Appeals reinstated the initial judgment against us. We appealed this decision again to the Supreme Court and the Court has annulled the decision of the Ouargla Court of Appeals. Accordingly, the case is being sent back to the Court of Ouargla for further proceedings on October 10, 2021 consistent with the Supreme Court’s ruling. While our payments were consistent with our historical operations in the country, and, we believe, those of other multinational corporations there, as well as interpretations of the law by the Central Bank of Algeria, the ultimate resolution of this matter could result in a loss of up to $13.0 million in excess of amounts accrued. Following a routine audit conducted in May and June of 2018 by the Atyrau Oblast Ecology Department (the “AOED”), our joint venture in Kazakhstan, KMG Nabors Drilling Company (“KNDC”), was administratively fined for not having emissions permits for KNDC owned or leased equipment. Prior to this audit, the AOED had always accepted the operator’s permits for all their subcontractors. However, because of major personnel changes, AOED changed their position and is now requiring that the owner/lessor of the equipment that emits the pollutants must have its own permits. Administrative fines have been issued to KNDC and were paid in the amount of $0.8 million for violations regarding the failure to have proper permits. AOED had also assessed additional “environmental damages” in the amount of $3.4 million for the period while KNDC did not hold its’ own emissions permit. However, KNDC appealed this fine and the AOED Economic Court ruled in KNDC’s favor. AOED appealed this decision, which was reversed on February 21, 2020. KNDC has further appealed and is awaiting rulings. Additional damages in the form of later year audits and taxes were assumed exposing KNDC to possible penalties and fines. KNDC and the operator have executed an agreement (SLA) formalizing the operator’s obligation to reimburse KNDC for many of the financial expenses related to this case as well as penalties and expenses related to future audit periods. Since 2019 KNDC holds its own permits. Another audit by AOED was performed for the second half of 2018, and KNDC is awaiting final rulings. Meanwhile, KNDC has received notice from government officials that certain of our employees may be held personally responsible. We continue to be engaged and are monitoring the situation. Off-Balance Sheet Arrangements (Including Guarantees) We are a party to some transactions, agreements or other contractual arrangements defined as “off-balance sheet arrangements” that could have a material future effect on our financial position, results of operations, liquidity and capital resources. The most significant of these off-balance sheet arrangements include the A/R Facility (see Note 4—Accounts Receivable Sales Agreement) and certain agreements and obligations under which we provide financial or performance assurance to third parties. Certain of these financial or performance assurances serve as guarantees, including standby letters of credit issued on behalf of insurance carriers in conjunction with our workers’ compensation insurance program and other financial surety instruments such as bonds. In addition, we have provided indemnifications, which serve as guarantees, to some third parties. These guarantees include indemnification provided by Nabors to our share transfer agent and our insurance carriers. We are not able to estimate the potential future maximum payments that might be due under our indemnification guarantees. Management believes the likelihood that we would be required to perform or otherwise incur any material losses associated with any of these guarantees is remote. The following table summarizes the total maximum amount of financial guarantees issued by Nabors: Maximum Amount 2021 2022 2023 Thereafter Total (In thousands) Financial standby letters of credit and other financial surety instruments $ 46,462 140,828 112 50 $ 187,452 |
Earnings (Losses) Per Share
Earnings (Losses) Per Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings (Losses) Per Share | |
Earnings (Losses) Per Share | Note 9 Earnings (Losses) Per Share ASC 260, Earnings per Share, requires companies to treat unvested share-based payment awards that have nonforfeitable rights to dividends or dividend equivalents as a separate class of securities in calculating earnings (losses) per share. We have granted and expect to continue to grant to employees restricted stock grants that contain nonforfeitable rights to dividends. Such grants are considered participating securities under ASC 260. As such, we are required to include these grants in the calculation of our basic earnings (losses) per share and calculate basic earnings (losses) per share using the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. The participating security holders are not contractually obligated to share in losses. Therefore, losses are not allocated to the participating security holders. Basic earnings (losses) per share is computed utilizing the two-class method and is calculated based on the weighted-average number of common shares outstanding during the periods presented. Diluted earnings (losses) per share is computed using the weighted-average number of common and common equivalent shares outstanding during the periods utilizing the two-class method for stock options and unvested restricted shares. A reconciliation of the numerators and denominators of the basic and diluted earnings (losses) per share computations is as follows: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (In thousands, except per share amounts) BASIC EPS: Net income (loss) (numerator): Income (loss) from continuing operations, net of tax $ (190,403) $ (137,968) $ (318,732) $ (512,237) Less: net (income) loss attributable to noncontrolling interest (5,614) (10,167) (14,390) (27,632) Less: preferred stock dividends — (3,653) (3,653) (7,305) Less: accrued distribution on redeemable noncontrolling interest in subsidiary (2,330) (4,307) (4,732) (8,739) Less: distributed and undistributed earnings allocated to unvested shareholders — — — (125) Numerator for basic earnings per share: Adjusted income (loss) from continuing operations, net of tax - basic $ (198,347) $ (156,095) $ (341,507) $ (556,038) Income (loss) from discontinued operations, net of tax $ 8 $ 23 $ 27 $ (70) Weighted-average number of shares outstanding - basic 7,460 7,052 7,281 7,052 Earnings (losses) per share: Basic from continuing operations $ (26.59) $ (22.13) $ (46.90) $ (78.85) Basic from discontinued operations — — — (0.01) Total Basic $ (26.59) $ (22.13) $ (46.90) $ (78.86) DILUTED EPS: Adjusted income (loss) from continuing operations, net of tax - basic $ (198,347) $ (156,095) $ (341,507) $ (556,038) Add: effect of reallocating undistributed earnings of unvested shareholders — — — — Adjusted income (loss) from continuing operations, net of tax - diluted $ (198,347) $ (156,095) $ (341,507) $ (556,038) Income (loss) from discontinued operations, net of tax $ 8 $ 23 $ 27 $ (70) Weighted-average number of shares outstanding - basic 7,460 7,052 7,281 7,052 Add: dilutive effect of potential common shares — — — — Weighted-average number of shares outstanding - diluted 7,460 7,052 7,281 7,052 Earnings (losses) per share: Diluted from continuing operations $ (26.59) $ (22.13) $ (46.90) $ (78.85) Diluted from discontinued operations — — — (0.01) Total Diluted $ (26.59) $ (22.13) $ (46.90) $ (78.86) For all periods presented, the computation of diluted earnings (losses) per share excludes outstanding stock options with exercise prices greater than the average market price of Nabors’ common shares, because their inclusion would be anti-dilutive and because they are not considered participating securities. In any period during which the average market price of Nabors’ common shares exceeds the exercise prices of these stock options, such stock options will be included in our diluted earnings (losses) per share computation using the if-converted method of accounting. Restricted stock is included in our basic and diluted earnings (losses) per share computation using the two-class method of accounting in all periods because such stock is considered participating securities. For periods in which we experience a net loss from continuing operations, all potential common shares have been excluded from the calculation of weighted-average shares outstanding, because their inclusion would be anti-dilutive. The average number of shares from options that were excluded from diluted earnings (losses) per share that would potentially dilute earnings per share in the future were as follows: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (In thousands) Potentially dilutive securities excluded as anti-dilutive 75 67 74 67 Additionally, through the first quarter of 2021, we excluded 0.79 million common shares from the computation of diluted shares issuable upon the conversion of mandatory convertible preferred shares, because their effect would be anti-dilutive under the if-converted method. Starting in the second quarter of 2021, we excluded 5.0 million shares from the computation of diluted shares related to the warrants issued because their effect would be anti-dilutive under the if-converted method. |
Impairments and Other Charges
Impairments and Other Charges | 6 Months Ended |
Jun. 30, 2021 | |
Impairments and Other Charges | |
Impairments and Other Charges | Note 10 Impairments and Other Charges The components of impairments and other charges are provided below: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (in thousands) Goodwill impairments $ — $ — $ — $ 27,798 Intangible asset impairment — 1 — 83,625 US Drilling — 4,961 — 87,333 Canada Drilling 58,000 — 58,000 — International Drilling — 32,591 215 63,076 Drilling Solutions — 8,832 — 28,641 Rig Technologies — (90) 418 2,708 Oil and gas related assets — — — 12,286 Severance and transaction related costs 1,513 11,176 2,592 11,835 Other assets 355 381 1,126 16,984 Total $ 59,868 $ 57,852 $ 62,351 334,286 We review our assets for impairment when events or changes in circumstances indicate that their carrying amounts may not be recoverable. If the estimated undiscounted future cash flows are not sufficient to support the asset’s recorded value, an impairment charge is recognized to the extent the carrying amount of the long-lived asset exceeds its estimated fair value. Management considers a number of factors such as estimated future cash flows from the assets, appraisals and current market value analysis in determining fair value. The determination of future cash flows requires the estimation of utilization, dayrates, operating margins, sustaining capital and remaining economic life. Such estimates can change based on market conditions, technological advances in the industry or changes in regulations governing the industry. A significantly prolonged period of lower oil and natural gas prices could continue to adversely affect the demand for and prices of our services, which could result in future impairment charges. For the three and six months ended June 30, 2021 Canada Drilling During the three months ended June 30, 2021, we recognized an impairment of $58.0 million related to the reclassification of the Canada Drilling assets to assets held for sale. Rig Technologies As a result of our periodic analysis on inventories for our Rig Technologies segment, we recorded a $0.4 million provision for obsolescence. Severance and transaction related costs During the six months ended June 30, 2021, we recognized charges of $2.6 million due to severance and other related costs incurred to right-size our cost structure. Other assets We wrote down or provided for $1.1 million of certain other assets including receivables related to our operations. The charges were primarily attributable to markets which have been adversely impacted by foreign sanctions or other political risk issues as well as bankruptcies or other financial problems. For the three and six months ended June 30, 2020 Goodwill impairments We have historically performed our annual goodwill impairment test during the second quarter of each year. In addition to our annual impairment test, we are required to regularly assess whether a triggering event has occurred which would require interim impairment testing. Due to industry conditions during the first quarter of 2020 and the corresponding impact on future expectations of demand for our products and services, including the effect on our stock price, we determined a triggering event had occurred and performed a quantitative impairment assessment of our goodwill. Based on the results of our goodwill test performed, we recognized impairment charges to write off the remaining goodwill balances attributable to our Drilling Solutions and Rig Technologies operating segments of $11.4 million and $16.4 million, respectively. Intangible asset impairments We also reviewed our intangible assets for impairment in the first quarter of 2020 as a result of the industry conditions. The fair value of our intangible assets is determined using discounted cash flow models. Based on our updated projections of future cash flows, the fair value of our intangible assets did not support the carrying value. As such, we recognized an impairment of $83.6 million to write off all remaining intangible assets attributable to our Drilling Solutions and Rig Technologies operating segments. US Drilling Due to the sharp decline in activity as a result of industry conditions in the US in the first part of the year relative to the same period in the prior year, we recorded impairments of $33.3 million and functionally retired $54.0 million of our lower specification rigs in the Lower 48 and Alaska markets totaling approximately $87.3 million. We determined that the assets were either functionally obsolete, would be no longer used, or the carrying value was not fully recoverable and was in excess of its fair value. International Drilling We impaired $30.5 million during the three months ended March 31, 2020, which represented rig and drilling-related equipment in international markets which have been impacted by market conditions and other factors. During the second quarter of 2020, we wrote off all the remaining value on our rig and drilling-related equipment in Venezuela due to our lack of work in the country and limited visibility to any possibility of further work. Drilling Solutions We impaired or retired $28.6 million of fixed assets, equipment and inventory in our Drilling Solutions segment as a result of the significant decline in utilization experienced over the first half of the year due to industry conditions. We determined that the assets were either functionally obsolete, would be no longer used, or the carrying value was not fully recoverable and was in excess of its fair value. Rig Technologies Oil & gas related assets In the first quarter of 2020, we recognized an impairment of $12.3 million to various assets related to our retained interest in the oil and gas properties located on the North Slope of Alaska. Severance and transaction related costs During the six months ended June 30, 2020, we recognized charges of $11.8 million due to severance and other related costs incurred to right-size our cost structure. Other assets We wrote down or provided for $17.0 million of certain other assets including receivables related to our operations. The charges were primarily attributable to markets which have been adversely impacted by foreign sanctions or other political risk issues as well as bankruptcies or other financial problems. |
Supplemental Balance Sheet and
Supplemental Balance Sheet and Income Statement Information | 6 Months Ended |
Jun. 30, 2021 | |
Supplemental Balance Sheet and Income Statement Information | |
Supplemental Balance Sheet and Income Statement Information | Note 11 Supplemental Balance Sheet and Income Statement Information Accrued liabilities included the following: June 30, December 31, 2021 2020 (In thousands) Accrued compensation $ 71,278 $ 82,462 Deferred revenue and proceeds on insurance and asset sales 69,654 61,473 Other taxes payable 29,027 28,602 Workers’ compensation liabilities 7,788 7,788 Interest payable 70,245 62,935 Litigation reserves 14,621 13,976 Dividends declared and payable — 3,653 Other accrued liabilities 8,277 15,196 $ 270,890 $ 276,085 Investment income (loss) includes the following: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (In thousands) Interest and dividend income $ (290) $ 1,230 $ 1,003 $ 3,603 Gains (losses) on marketable securities 228 806 198 (4,765) $ (62) $ 2,036 $ 1,201 $ (1,162) Other, net included the following: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (In thousands) Losses (gains) on sales, disposals and involuntary conversions of long-lived assets $ 8,965 $ 1,037 $ 17,488 $ 2,428 Litigation expenses and reserves 1,847 1,412 3,341 2,112 Foreign currency transaction losses (gains) 148 2,727 2,527 2,082 (Gain) loss on debt buyback (123) (35,936) (8,185) (51,678) Other losses (gains) (4,250) (35) (3,721) (2,849) $ 6,587 $ (30,795) $ 11,450 $ (47,905) The changes in accumulated other comprehensive income (loss), by component, included the following: Gains Defined (losses) on benefit Foreign cash flow pension plan currency hedges items items Total (In thousands (1) ) As of January 1, 2020 $ (65) $ (3,778) $ (7,945) $ (11,788) Other comprehensive income (loss) before reclassifications — — (10,694) (10,694) Amounts reclassified from accumulated other comprehensive income (loss) 214 80 — 294 Net other comprehensive income (loss) 214 80 (10,694) (10,400) As of June 30, 2020 $ 149 $ (3,698) $ (18,639) $ (22,188) (1) All amounts are net of tax. Gains Defined (losses) on benefit Foreign cash flow pension plan currency hedges items items Total (In thousands (1) ) As of January 1, 2021 $ 2 $ (3,616) $ (7,510) $ (11,124) Other comprehensive income (loss) before reclassifications — (1,900) 4,320 2,420 Amounts reclassified from accumulated other comprehensive income (loss) — 80 — 80 Net other comprehensive income (loss) — (1,820) 4,320 2,500 As of June 30, 2021 $ 2 $ (5,436) $ (3,190) $ (8,624) (1) All amounts are net of tax. The line items that were reclassified to net income included the following: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (In thousands) Interest expense $ — $ 142 $ — $ 284 General and administrative expenses 52 52 104 104 Total income (loss) from continuing operations before income tax (52) (194) (104) (388) Tax expense (benefit) (12) (47) (24) (94) Reclassification adjustment for (gains)/ losses included in net income (loss) $ (40) $ (147) $ (80) $ (294) |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2021 | |
Segment Information | |
Segment Information | Note 12 Segment Information The following table sets forth financial information with respect to our reportable operating segments: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (In thousands) Operating revenues: U.S. Drilling $ 161,606 $ 173,784 $ 303,905 $ 448,685 Canada Drilling 12,313 3,564 33,302 29,155 International Drilling 255,282 301,078 502,120 638,188 Drilling Solutions 39,111 33,129 74,817 88,513 Rig Technologies 34,552 33,582 60,300 75,732 Other reconciling items (1) (13,531) (11,206) (24,600) (27,978) Total $ 489,333 $ 533,931 $ 949,844 $ 1,252,295 Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (In thousands) Adjusted operating income (loss): (2) U.S. Drilling $ (20,869) $ (23,395) $ (44,205) $ (30,799) Canada Drilling (2,608) (5,795) 1,299 (5,758) International Drilling (8,439) 276 (27,071) (3,871) Drilling Solutions 6,524 1,733 11,234 12,282 Rig Technologies (692) (1,492) (3,261) (9,643) Total segment adjusted operating income (loss) $ (26,084) $ (28,673) $ (62,004) $ (37,789) Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (In thousands) Reconciliation of segment adjusted operating income (loss) to net income (loss) from continuing operations before income taxes: Total segment adjusted operating income (loss) (2) $ (26,084) $ (28,673) $ (62,004) $ (37,789) Other reconciling items (3) (31,369) (28,622) (64,995) (58,838) Investment income (loss) (62) 2,036 1,201 (1,162) Interest expense (41,714) (51,206) (84,689) (105,928) Impairments and other charges (59,868) (57,852) (62,351) (334,286) Other, net (6,587) 30,795 (11,450) 47,905 Income (loss) from continuing operations before income taxes $ (165,684) $ (133,522) $ (284,288) $ (490,098) June 30, December 31, 2021 2020 (In thousands) Total assets: U.S. Drilling $ 1,724,672 $ 1,871,008 Canada Drilling 109,437 174,123 International Drilling 2,493,823 2,688,912 Drilling Solutions 82,705 100,278 Rig Technologies 208,611 225,954 Other reconciling items (3) 423,070 443,153 Total $ 5,042,318 $ 5,503,428 (1) Represents the elimination of inter-segment transactions related to our Rig Technologies operating segment. (2) Adjusted operating income (loss) represents income (loss) from continuing operations before income taxes, interest expense, earnings (losses) from unconsolidated affiliates, investment income (loss), impairments and other charges and other, net. Management evaluates the performance of our operating segments using adjusted operating income (loss), which is a segment performance measure, because it believes that this financial measure reflects our ongoing profitability and performance. In addition, securities analysts and investors use this measure as one of the metrics on which they analyze our performance. A reconciliation to income (loss) from continuing operations before income taxes is provided in the above table. (3) Represents the elimination of inter-segment transactions and unallocated corporate expenses and assets. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2021 | |
Revenue Recognition | |
Revenue Recognition | Note 13 Revenue Recognition We recognize revenue when control of a good or service promised in a contract (i.e., performance obligation) is transferred to a customer. Control is obtained when a customer has the ability to direct the use of and obtain substantially all of the remaining benefits from that good or service. Contract drilling revenues are recorded over time utilizing the input method based on time elapsed. The measurement of progress considers the transfer of the service to the customer as we provide daily drilling services. We receive payment after the services have been performed by billing customers periodically (typically monthly). However, a portion of our revenues are recognized at a point-in-time as control is transferred at a distinct point in time such as with the sale of our top drives and other capital equipment. Within our drilling contracts, we have identified one performance obligation in which the transaction price is allocated. Disaggregation of revenue In the following table, revenue is disaggregated by geographical region. The table also includes a reconciliation of the disaggregated revenue with the reportable segments: Three Months Ended June 30, 2021 U.S. Drilling Canada Drilling International Drilling Drilling Solutions Rig Technologies Other Total (In thousands) Lower 48 $ 121,360 $ — $ — $ 21,436 $ 15,448 $ — $ 158,244 U.S. Offshore Gulf of Mexico 32,967 — — 1,822 — — 34,789 Alaska 7,279 — — 185 14 — 7,478 Canada — 12,313 — 204 1,383 — 13,900 Middle East & Asia — — 174,339 9,457 13,575 — 197,371 Latin America — — 57,931 5,658 163 — 63,752 Europe, Africa & CIS — — 23,012 349 3,969 — 27,330 Eliminations & other — — — — — (13,531) (13,531) Total $ 161,606 $ 12,313 $ 255,282 $ 39,111 $ 34,552 $ (13,531) $ 489,333 Six Months Ended June 30, 2021 U.S. Drilling Canada Drilling International Drilling Drilling Solutions Rig Technologies Other Total (In thousands) Lower 48 $ 230,896 $ — $ — $ 39,884 $ 27,985 $ — $ 298,765 U.S. Offshore Gulf of Mexico 60,159 — — 4,558 — — 64,717 Alaska 12,850 — — 322 14 — 13,186 Canada — 33,302 — 658 2,283 — 36,243 Middle East & Asia — — 342,525 18,448 22,655 — 383,628 Latin America — — 113,839 10,224 176 — 124,239 Europe, Africa & CIS — — 45,756 723 7,187 — 53,666 Eliminations & other — — — — — (24,600) (24,600) Total $ 303,905 $ 33,302 $ 502,120 $ 74,817 $ 60,300 $ (24,600) $ 949,844 Three Months Ended June 30, 2020 U.S. Drilling Canada Drilling International Drilling Drilling Solutions Rig Technologies Other Total (In thousands) Lower 48 $ 128,814 $ — $ — $ 19,325 $ 12,108 $ — $ 160,247 U.S. Offshore Gulf of Mexico 36,682 — — 1,867 — — 38,549 Alaska 8,288 — — 244 27 — 8,559 Canada — 3,564 — 78 584 — 4,226 Middle East & Asia — — 193,313 10,496 16,581 — 220,390 Latin America — — 49,700 555 (30) — 50,225 Europe, Africa & CIS — — 58,065 564 4,312 — 62,941 Eliminations & other — — — — — (11,206) (11,206) Total $ 173,784 $ 3,564 $ 301,078 $ 33,129 $ 33,582 $ (11,206) $ 533,931 Six Months Ended June 30, 2020 U.S. Drilling Canada Drilling International Drilling Drilling Solutions Rig Technologies Other Total (In thousands) Lower 48 $ 349,043 $ — $ — $ 55,037 $ 32,640 $ — $ 436,720 U.S. Offshore Gulf of Mexico 75,738 — — 5,033 — — 80,771 Alaska 23,904 — — 1,230 18 — 25,152 Canada — 29,155 — 808 2,196 — 32,159 Middle East & Asia — — 394,490 21,534 32,134 — 448,158 Latin America — — 133,919 3,382 122 — 137,423 Europe, Africa & CIS — — 109,779 1,489 8,622 — 119,890 Eliminations & other — — — — — (27,978) (27,978) Total $ 448,685 $ 29,155 $ 638,188 $ 88,513 $ 75,732 $ (27,978) $ 1,252,295 Contract balances We perform our obligations under a contract with a customer by transferring goods or services in exchange for consideration from the customer. We recognize a contract asset or liability when we transfer goods or services to a customer and bill an amount which differs from the revenue allocated to the related performance obligations. The timing of revenue recognition may differ from the timing of invoicing to customers and these timing differences result in receivables, contract assets, or contract liabilities (deferred revenue) on our condensed consolidated balance sheet. In general, we receive payments from customers based on dayrates as stipulated in our contracts (i.e. operating rate, standby rate). The invoices billed to the customer are based on the varying rates applicable to the operating status on each rig. Accounts receivable are recorded when the right to consideration becomes unconditional. Dayrate contracts also may contain fees charged to the customer for up-front rig modifications, mobilization and demobilization of equipment and personnel. These fees are associated with contract fulfillment activities, and the related revenue (subject to any constraint on estimates of variable consideration) is allocated to a single performance obligation and recognized ratably over the initial term of the contract. Mobilization fees are generally billable to the customer in the initial phase of a contract and generate contract liabilities until they are recognized as revenue. Demobilization fees are generally received at the end of the contract and generate contract assets when they are recognized as revenue prior to becoming receivables from the customer. We receive reimbursements from our customers for the purchase of supplies, equipment, personnel services and other services provided at their request. Reimbursable revenues are variable and subject to uncertainty as the amounts received and timing thereof are dependent on factors outside of our influence. Accordingly, these revenues are constrained and not recognized until the uncertainty is resolved, which typically occurs when the related costs are incurred on behalf of the customer. We are generally considered a principal in these transactions and record the associated revenues at the gross amounts billed to the customer. The opening and closing balances of our receivables, contract assets and current and long-term contract liabilities are as follows: Contract Contract Contract Contract Contract Assets Assets Liabilities Liabilities Receivables (Current) (Long-term) (Current) (Long-term) (In millions) As of December 31, 2020 $ 427.2 $ 23.5 $ 6.8 $ 42.8 $ 44.2 As of June 30, 2021 $ 379.8 $ 26.6 $ 5.3 $ 46.9 $ 35.6 Approximately 39% of the contract liability balance at the beginning of the period is expected to be recognized as revenue during 2021 2022 2023 Additionally, 68% of the contract asset balance at the beginning of the period is expected to be recognized as expense during 2021, of which 35% was recognized during the six months ended June 30, 2021, and 26% is expected to be recognized during 2022. The remaining 6% of the contract asset balance at the beginning of the period is expected to be recognized as expense during 2023 or thereafter. This disclosure does not include variable consideration allocated entirely to a wholly unsatisfied performance obligation or promise to transfer a distinct good or service that forms part of a single performance obligation. |
Assets Held for Sale
Assets Held for Sale | 6 Months Ended |
Jun. 30, 2021 | |
Assets Held for Sale | |
Assets Held for Sale | Note 14 Assets Held for Sale Assets held for sale as of June 30, 2021 and December 31, 2020 was $111.7 million and $16.6 million, respectively. At June 30, 2021, land-based drilling rigs and related equipment and property which the company has entered into an agreement to sell. The sale closed during July 2021. The carrying value of the assets held for sale represents the lower of carrying value or fair value less costs to sell. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Summary of Significant Accounting Policies | |
Interim Financial Information | Interim Financial Information The accompanying unaudited condensed consolidated financial statements of Nabors have been prepared in conformity with generally accepted accounting principles in the United States (“U.S. GAAP”). Pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC” or “Commission”), certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been omitted. Therefore, these financial statements should be read together with our annual report on Form 10-K for the year ended December 31, 2020 (“2020 Annual Report”). In management’s opinion, the unaudited condensed consolidated financial statements contain all adjustments |
Principles of Consolidation | Principles of Consolidation Our condensed consolidated financial statements include the accounts of Nabors, as well as all majority owned and non-majority owned subsidiaries consolidated in accordance with U.S. GAAP. All significant intercompany accounts and transactions are eliminated in consolidation. In addition to the consolidation of our majority owned subsidiaries, we also consolidate variable interest entities (“VIE”) when we are determined to be the primary beneficiary of a VIE. Determination of the primary beneficiary of a VIE is based on whether an entity has (1) the power to direct activities that most significantly impact the economic performance of the VIE and (2) the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. Our joint venture, SANAD, which is equally owned by Saudi Aramco and Nabors, has been consolidated. As we have the power to direct activities that most significantly impact SANAD’s economic performance, including operations, maintenance and certain sourcing and procurement, we have determined Nabors to be the primary beneficiary. See Note 3—Joint Ventures. |
Inventory | Inventory Inventory is stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out or weighted-average cost methods and includes the cost of materials, labor and manufacturing overhead. Inventory included the following: June 30, December 31, 2021 2020 (In thousands) Raw materials $ 118,150 $ 133,424 Work-in-progress 2,881 3,452 Finished goods 26,331 23,709 $ 147,362 $ 160,585 |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which changes accounting requirements for the recognition of credit losses from an incurred or probable impairment methodology to a current expected credit losses (CECL) methodology. The guidance is effective for interim and annual periods beginning after December 15, 2019. The guidance has been applied using the modified retrospective method with a cumulative effect adjustment to beginning retained earnings. Trade receivables (including the allowance for credit losses) are the only financial instrument in scope for ASU 2016-13 currently held by the Company. The adoption of this guidance did not have a material impact on our condensed consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which removes certain exceptions for intraperiod allocations and interim tax calculations and adds guidance to simplify accounting for income taxes. The guidance is effective for interim and annual periods beginning after December 15, 2020. The adoption of this guidance did not have a material impact on our condensed consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Summary of Significant Accounting Policies | |
Inventory | June 30, December 31, 2021 2020 (In thousands) Raw materials $ 118,150 $ 133,424 Work-in-progress 2,881 3,452 Finished goods 26,331 23,709 $ 147,362 $ 160,585 |
Joint Ventures (Tables)
Joint Ventures (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Joint Ventures | |
Schedule of condensed balance sheet of SANAD | June 30, December 31, 2021 2020 (In thousands) Assets: Cash and cash equivalents $ 304,924 $ 368,981 Accounts receivable 70,273 79,711 Other current assets 11,105 17,148 Property, plant and equipment, net 456,050 428,331 Other long-term assets 20,223 2,590 Total assets $ 862,575 $ 896,761 Liabilities: Accounts payable $ 60,269 $ 61,808 Accrued liabilities 29,792 18,791 Total liabilities $ 90,061 $ 80,599 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt | |
Debt | June 30, December 31, 2021 2020 (In thousands) 4.625% senior notes due September 2021 (1) $ 82,428 $ 86,329 5.50% senior notes due January 2023 24,446 28,443 5.10% senior notes due September 2023 120,141 121,077 0.75% senior exchangeable notes due January 2024 253,733 279,700 5.75% senior notes due February 2025 586,308 610,818 6.50% senior priority guaranteed notes due February 2025 50,485 50,485 9.00% senior priority guaranteed notes due February 2025 218,082 192,032 7.25% senior guaranteed notes due January 2026 559,978 559,978 7.50% senior guaranteed notes due January 2028 389,609 389,609 2018 revolving credit facility 557,500 672,500 2,842,710 2,990,971 Less: deferred financing costs 19,585 22,270 Long-term debt $ 2,823,125 $ 2,968,701 (1) The 4.625% senior notes due September 2021 are classified as long-term because we have the ability and intent to repay this obligation utilizing our 2018 Revolving Credit Facility. |
The aggregate principal amounts and recognized gain | The aggregate principal amounts and recognized gain for such transactions were as follows (in thousands): Six months ended June 30, 2021 Exchanged 0.75% senior exchangeable notes due January 2024 $ 35,000 5.75% senior notes due February 2025 5,000 Aggregate principal amount exchanged 40,000 Aggregate principal amount of debt issued in exchanges 26,050 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Measurements | |
Fair value of financial instruments | June 30, 2021 December 31, 2020 Carrying Fair Carrying Fair Value Value Value Value (In thousands) 4.625% senior notes due September 2021 $ 82,428 $ 82,718 $ 86,329 $ 78,862 5.50% senior notes due January 2023 24,446 23,683 28,443 18,768 5.10% senior notes due September 2023 120,141 116,524 121,077 78,435 0.75% senior exchangeable notes due January 2024 253,733 257,391 279,700 169,458 5.75% senior notes due February 2025 586,308 540,195 610,818 318,871 6.50% senior priority guaranteed notes due February 2025 50,485 49,156 50,485 44,059 9.00% senior priority guaranteed notes due February 2025 218,082 229,869 192,032 185,221 7.25% senior guaranteed notes due January 2026 559,978 550,240 559,978 396,106 7.50% senior guaranteed notes due January 2028 389,609 376,409 389,609 267,369 2018 revolving credit facility 557,500 557,500 672,500 672,500 $ 2,842,710 $ 2,783,685 $ 2,990,971 $ 2,229,649 Less: deferred financing costs 19,585 22,270 $ 2,823,125 $ 2,968,701 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies | |
Summary of total maximum amount of financial guarantees issued | Maximum Amount 2021 2022 2023 Thereafter Total (In thousands) Financial standby letters of credit and other financial surety instruments $ 46,462 140,828 112 50 $ 187,452 |
Earnings (Losses) Per Share (Ta
Earnings (Losses) Per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings (Losses) Per Share | |
Earnings (losses) per share computations | Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (In thousands, except per share amounts) BASIC EPS: Net income (loss) (numerator): Income (loss) from continuing operations, net of tax $ (190,403) $ (137,968) $ (318,732) $ (512,237) Less: net (income) loss attributable to noncontrolling interest (5,614) (10,167) (14,390) (27,632) Less: preferred stock dividends — (3,653) (3,653) (7,305) Less: accrued distribution on redeemable noncontrolling interest in subsidiary (2,330) (4,307) (4,732) (8,739) Less: distributed and undistributed earnings allocated to unvested shareholders — — — (125) Numerator for basic earnings per share: Adjusted income (loss) from continuing operations, net of tax - basic $ (198,347) $ (156,095) $ (341,507) $ (556,038) Income (loss) from discontinued operations, net of tax $ 8 $ 23 $ 27 $ (70) Weighted-average number of shares outstanding - basic 7,460 7,052 7,281 7,052 Earnings (losses) per share: Basic from continuing operations $ (26.59) $ (22.13) $ (46.90) $ (78.85) Basic from discontinued operations — — — (0.01) Total Basic $ (26.59) $ (22.13) $ (46.90) $ (78.86) DILUTED EPS: Adjusted income (loss) from continuing operations, net of tax - basic $ (198,347) $ (156,095) $ (341,507) $ (556,038) Add: effect of reallocating undistributed earnings of unvested shareholders — — — — Adjusted income (loss) from continuing operations, net of tax - diluted $ (198,347) $ (156,095) $ (341,507) $ (556,038) Income (loss) from discontinued operations, net of tax $ 8 $ 23 $ 27 $ (70) Weighted-average number of shares outstanding - basic 7,460 7,052 7,281 7,052 Add: dilutive effect of potential common shares — — — — Weighted-average number of shares outstanding - diluted 7,460 7,052 7,281 7,052 Earnings (losses) per share: Diluted from continuing operations $ (26.59) $ (22.13) $ (46.90) $ (78.85) Diluted from discontinued operations — — — (0.01) Total Diluted $ (26.59) $ (22.13) $ (46.90) $ (78.86) |
Potentially dilutive securities excluded as anti-dilutive | Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (In thousands) Potentially dilutive securities excluded as anti-dilutive 75 67 74 67 |
Impairments and Other Charges (
Impairments and Other Charges (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Impairments and Other Charges | |
Schedule of impairments and other charges | Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (in thousands) Goodwill impairments $ — $ — $ — $ 27,798 Intangible asset impairment — 1 — 83,625 US Drilling — 4,961 — 87,333 Canada Drilling 58,000 — 58,000 — International Drilling — 32,591 215 63,076 Drilling Solutions — 8,832 — 28,641 Rig Technologies — (90) 418 2,708 Oil and gas related assets — — — 12,286 Severance and transaction related costs 1,513 11,176 2,592 11,835 Other assets 355 381 1,126 16,984 Total $ 59,868 $ 57,852 $ 62,351 334,286 |
Supplemental Balance Sheet an_2
Supplemental Balance Sheet and Income Statement Information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Supplemental Balance Sheet and Income Statement Information | |
Accrued liabilities | June 30, December 31, 2021 2020 (In thousands) Accrued compensation $ 71,278 $ 82,462 Deferred revenue and proceeds on insurance and asset sales 69,654 61,473 Other taxes payable 29,027 28,602 Workers’ compensation liabilities 7,788 7,788 Interest payable 70,245 62,935 Litigation reserves 14,621 13,976 Dividends declared and payable — 3,653 Other accrued liabilities 8,277 15,196 $ 270,890 $ 276,085 |
Schedule of investment income (loss) | Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (In thousands) Interest and dividend income $ (290) $ 1,230 $ 1,003 $ 3,603 Gains (losses) on marketable securities 228 806 198 (4,765) $ (62) $ 2,036 $ 1,201 $ (1,162) |
Other, net | Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (In thousands) Losses (gains) on sales, disposals and involuntary conversions of long-lived assets $ 8,965 $ 1,037 $ 17,488 $ 2,428 Litigation expenses and reserves 1,847 1,412 3,341 2,112 Foreign currency transaction losses (gains) 148 2,727 2,527 2,082 (Gain) loss on debt buyback (123) (35,936) (8,185) (51,678) Other losses (gains) (4,250) (35) (3,721) (2,849) $ 6,587 $ (30,795) $ 11,450 $ (47,905) |
Schedule of changes in accumulated other comprehensive income (loss) | Gains Defined (losses) on benefit Foreign cash flow pension plan currency hedges items items Total (In thousands (1) ) As of January 1, 2020 $ (65) $ (3,778) $ (7,945) $ (11,788) Other comprehensive income (loss) before reclassifications — — (10,694) (10,694) Amounts reclassified from accumulated other comprehensive income (loss) 214 80 — 294 Net other comprehensive income (loss) 214 80 (10,694) (10,400) As of June 30, 2020 $ 149 $ (3,698) $ (18,639) $ (22,188) (1) All amounts are net of tax. Gains Defined (losses) on benefit Foreign cash flow pension plan currency hedges items items Total (In thousands (1) ) As of January 1, 2021 $ 2 $ (3,616) $ (7,510) $ (11,124) Other comprehensive income (loss) before reclassifications — (1,900) 4,320 2,420 Amounts reclassified from accumulated other comprehensive income (loss) — 80 — 80 Net other comprehensive income (loss) — (1,820) 4,320 2,500 As of June 30, 2021 $ 2 $ (5,436) $ (3,190) $ (8,624) (1) All amounts are net of tax. |
Schedule of line items that were reclassified from net income | Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (In thousands) Interest expense $ — $ 142 $ — $ 284 General and administrative expenses 52 52 104 104 Total income (loss) from continuing operations before income tax (52) (194) (104) (388) Tax expense (benefit) (12) (47) (24) (94) Reclassification adjustment for (gains)/ losses included in net income (loss) $ (40) $ (147) $ (80) $ (294) |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Information | |
Financial information with respect to operating segments | Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (In thousands) Operating revenues: U.S. Drilling $ 161,606 $ 173,784 $ 303,905 $ 448,685 Canada Drilling 12,313 3,564 33,302 29,155 International Drilling 255,282 301,078 502,120 638,188 Drilling Solutions 39,111 33,129 74,817 88,513 Rig Technologies 34,552 33,582 60,300 75,732 Other reconciling items (1) (13,531) (11,206) (24,600) (27,978) Total $ 489,333 $ 533,931 $ 949,844 $ 1,252,295 Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (In thousands) Adjusted operating income (loss): (2) U.S. Drilling $ (20,869) $ (23,395) $ (44,205) $ (30,799) Canada Drilling (2,608) (5,795) 1,299 (5,758) International Drilling (8,439) 276 (27,071) (3,871) Drilling Solutions 6,524 1,733 11,234 12,282 Rig Technologies (692) (1,492) (3,261) (9,643) Total segment adjusted operating income (loss) $ (26,084) $ (28,673) $ (62,004) $ (37,789) Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (In thousands) Reconciliation of segment adjusted operating income (loss) to net income (loss) from continuing operations before income taxes: Total segment adjusted operating income (loss) (2) $ (26,084) $ (28,673) $ (62,004) $ (37,789) Other reconciling items (3) (31,369) (28,622) (64,995) (58,838) Investment income (loss) (62) 2,036 1,201 (1,162) Interest expense (41,714) (51,206) (84,689) (105,928) Impairments and other charges (59,868) (57,852) (62,351) (334,286) Other, net (6,587) 30,795 (11,450) 47,905 Income (loss) from continuing operations before income taxes $ (165,684) $ (133,522) $ (284,288) $ (490,098) June 30, December 31, 2021 2020 (In thousands) Total assets: U.S. Drilling $ 1,724,672 $ 1,871,008 Canada Drilling 109,437 174,123 International Drilling 2,493,823 2,688,912 Drilling Solutions 82,705 100,278 Rig Technologies 208,611 225,954 Other reconciling items (3) 423,070 443,153 Total $ 5,042,318 $ 5,503,428 (1) Represents the elimination of inter-segment transactions related to our Rig Technologies operating segment. (2) Adjusted operating income (loss) represents income (loss) from continuing operations before income taxes, interest expense, earnings (losses) from unconsolidated affiliates, investment income (loss), impairments and other charges and other, net. Management evaluates the performance of our operating segments using adjusted operating income (loss), which is a segment performance measure, because it believes that this financial measure reflects our ongoing profitability and performance. In addition, securities analysts and investors use this measure as one of the metrics on which they analyze our performance. A reconciliation to income (loss) from continuing operations before income taxes is provided in the above table. (3) Represents the elimination of inter-segment transactions and unallocated corporate expenses and assets. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue Recognition | |
Summary of revenue is disaggregation by geographical region | Three Months Ended June 30, 2021 U.S. Drilling Canada Drilling International Drilling Drilling Solutions Rig Technologies Other Total (In thousands) Lower 48 $ 121,360 $ — $ — $ 21,436 $ 15,448 $ — $ 158,244 U.S. Offshore Gulf of Mexico 32,967 — — 1,822 — — 34,789 Alaska 7,279 — — 185 14 — 7,478 Canada — 12,313 — 204 1,383 — 13,900 Middle East & Asia — — 174,339 9,457 13,575 — 197,371 Latin America — — 57,931 5,658 163 — 63,752 Europe, Africa & CIS — — 23,012 349 3,969 — 27,330 Eliminations & other — — — — — (13,531) (13,531) Total $ 161,606 $ 12,313 $ 255,282 $ 39,111 $ 34,552 $ (13,531) $ 489,333 Six Months Ended June 30, 2021 U.S. Drilling Canada Drilling International Drilling Drilling Solutions Rig Technologies Other Total (In thousands) Lower 48 $ 230,896 $ — $ — $ 39,884 $ 27,985 $ — $ 298,765 U.S. Offshore Gulf of Mexico 60,159 — — 4,558 — — 64,717 Alaska 12,850 — — 322 14 — 13,186 Canada — 33,302 — 658 2,283 — 36,243 Middle East & Asia — — 342,525 18,448 22,655 — 383,628 Latin America — — 113,839 10,224 176 — 124,239 Europe, Africa & CIS — — 45,756 723 7,187 — 53,666 Eliminations & other — — — — — (24,600) (24,600) Total $ 303,905 $ 33,302 $ 502,120 $ 74,817 $ 60,300 $ (24,600) $ 949,844 Three Months Ended June 30, 2020 U.S. Drilling Canada Drilling International Drilling Drilling Solutions Rig Technologies Other Total (In thousands) Lower 48 $ 128,814 $ — $ — $ 19,325 $ 12,108 $ — $ 160,247 U.S. Offshore Gulf of Mexico 36,682 — — 1,867 — — 38,549 Alaska 8,288 — — 244 27 — 8,559 Canada — 3,564 — 78 584 — 4,226 Middle East & Asia — — 193,313 10,496 16,581 — 220,390 Latin America — — 49,700 555 (30) — 50,225 Europe, Africa & CIS — — 58,065 564 4,312 — 62,941 Eliminations & other — — — — — (11,206) (11,206) Total $ 173,784 $ 3,564 $ 301,078 $ 33,129 $ 33,582 $ (11,206) $ 533,931 Six Months Ended June 30, 2020 U.S. Drilling Canada Drilling International Drilling Drilling Solutions Rig Technologies Other Total (In thousands) Lower 48 $ 349,043 $ — $ — $ 55,037 $ 32,640 $ — $ 436,720 U.S. Offshore Gulf of Mexico 75,738 — — 5,033 — — 80,771 Alaska 23,904 — — 1,230 18 — 25,152 Canada — 29,155 — 808 2,196 — 32,159 Middle East & Asia — — 394,490 21,534 32,134 — 448,158 Latin America — — 133,919 3,382 122 — 137,423 Europe, Africa & CIS — — 109,779 1,489 8,622 — 119,890 Eliminations & other — — — — — (27,978) (27,978) Total $ 448,685 $ 29,155 $ 638,188 $ 88,513 $ 75,732 $ (27,978) $ 1,252,295 |
Summary of contract assets, current and long-term contract liabilities | Contract Contract Contract Contract Contract Assets Assets Liabilities Liabilities Receivables (Current) (Long-term) (Current) (Long-term) (In millions) As of December 31, 2020 $ 427.2 $ 23.5 $ 6.8 $ 42.8 $ 44.2 As of June 30, 2021 $ 379.8 $ 26.6 $ 5.3 $ 46.9 $ 35.6 |
General (Details)
General (Details) | 6 Months Ended |
Jun. 30, 2021itemcountry | |
General | |
Number of countries company has actively marketed rigs for land based drilling operations | country | 20 |
Actively marketed rigs for offshore based drilling operations | 29 |
United States and Canada | |
General | |
Actively marketed rigs for land based drilling operations | 354 |
Countries Other Than United States and Canada | |
General | |
Actively marketed rigs for land based drilling operations | 14 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Inventory (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Inventory, net | ||
Raw materials | $ 118,150 | $ 133,424 |
Work-in-progress | 2,881 | 3,452 |
Finished goods | 26,331 | 23,709 |
Total inventory | $ 147,362 | $ 160,585 |
Joint Ventures (Details)
Joint Ventures (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Jan. 31, 2021 | Dec. 31, 2017 | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Assets: | ||||||
Cash and cash equivalents | $ 399,881 | $ 472,246 | $ 484,336 | $ 435,990 | ||
Accounts receivable | 312,136 | 362,977 | ||||
Other current assets | 116,062 | 109,595 | ||||
Property, plant and equipment, net | 3,562,350 | 3,985,707 | ||||
Other long-term assets | 141,721 | 139,085 | ||||
Total assets | 5,042,318 | 5,503,428 | ||||
Liabilities: | ||||||
Accounts payable | 232,543 | 220,922 | ||||
Accrued liabilities | 270,890 | 276,085 | ||||
Total liabilities | 3,706,878 | 3,803,780 | ||||
SANAD | ||||||
Joint Ventures | ||||||
Settled accrued interest | $ 100,000 | |||||
Assets: | ||||||
Cash and cash equivalents | 304,924 | 368,981 | ||||
Accounts receivable | 70,273 | 79,711 | ||||
Other current assets | 11,105 | 17,148 | ||||
Property, plant and equipment, net | 456,050 | 428,331 | ||||
Other long-term assets | 20,223 | 2,590 | ||||
Total assets | 862,575 | 896,761 | ||||
Liabilities: | ||||||
Accounts payable | 60,269 | 61,808 | ||||
Accrued liabilities | 29,792 | 18,791 | ||||
Total liabilities | $ 90,061 | $ 80,599 | ||||
SANAD | Saudi Aramco | ||||||
Joint Ventures | ||||||
Cash contribution for joint venture | $ 20,000 | |||||
Additional contribution amount | $ 394,000 | |||||
Maturity period | 25 years |
Accounts Receivable Sales Agr_2
Accounts Receivable Sales Agreement (Details) - USD ($) $ in Thousands | Jul. 13, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 13, 2019 |
Accounts Receivable Sales Agreement | ||||||
Cash and cash equivalents | $ 399,881 | $ 472,246 | $ 484,336 | $ 435,990 | ||
5.50% senior notes due January 2023 | ||||||
Accounts Receivable Sales Agreement | ||||||
Interest rate (as a percent) | 5.50% | |||||
Accounts Receivable Sales Agreement | ||||||
Accounts Receivable Sales Agreement | ||||||
Agreement amount | $ 150,000 | $ 250,000 | ||||
Agreement expiration term extension (in years) | 2 years | |||||
Accounts receivables sold to purchasers | $ 84,000 | 54,000 | ||||
Gain (loss) on sale of receivables | 0 | |||||
Trade receivables pledged as collateral | $ 40,900 | $ 63,100 | ||||
Accounts Receivable Sales Agreement | Maximum | Forecast | ||||||
Accounts Receivable Sales Agreement | ||||||
Possible amount that the agreement could be increased | $ 200,000 | |||||
Acceleration Of Expiration [Member] | 5.50% senior notes due January 2023 | ||||||
Accounts Receivable Sales Agreement | ||||||
Interest rate (as a percent) | 5.50% | |||||
Acceleration Of Expiration [Member] | Minimum | Forecast | ||||||
Accounts Receivable Sales Agreement | ||||||
Cash and cash equivalents | $ 220,000 |
Debt (Details)
Debt (Details) | 1 Months Ended | 6 Months Ended | |||||
Sep. 30, 2020USD ($) | Jan. 31, 2017USD ($)$ / shares | Jun. 30, 2021USD ($) | Mar. 31, 2021 | Dec. 31, 2020USD ($) | Dec. 13, 2019USD ($) | Oct. 11, 2018USD ($) | |
Debt | |||||||
Long-term Debt, Gross | $ 2,842,710,000 | $ 2,990,971,000 | |||||
Less: deferred financing costs | 19,585,000 | 22,270,000 | |||||
Long-term debt | 2,823,125,000 | 2,968,701,000 | |||||
Gain (Loss) on debt repurchase | 8,200,000 | ||||||
Revolving credit facility | 557,500,000 | 672,500,000 | |||||
2018 revolving credit facility | |||||||
Debt | |||||||
Revolving credit facility | $ 557,500,000 | ||||||
Maximum borrowing capacity | $ 1,013,600,000 | $ 1,267,000,000 | |||||
Weighted average interest rate (as a percent) | 3.62% | ||||||
Debt instrument, covenant, minimum liquidity, amount | $ 160,000,000 | ||||||
Debt covenant threshold amount added to restricted cash and cash equivalents for minimum liquidity | 75,000,000 | ||||||
Debt covenant threshold percentage | $ 75 | ||||||
Collateralized assets, net value | $ 1,260,000,000 | ||||||
2018 revolving credit facility | Maximum | |||||||
Debt | |||||||
Debt to EBITDA ratio | 5.5 | 5.5 | |||||
2018 revolving credit facility | Guarantor Subsidiaries | Minimum | |||||||
Debt | |||||||
Debt instrument, guarantor coverage ratio | 4.25 | ||||||
2018 revolving credit facility | Nabors Delaware | |||||||
Debt | |||||||
Interest rate on senior notes due (as a percent) | 5.50% | ||||||
Maximum borrowing capacity | $ 981,600,000 | ||||||
2018 revolving credit facility | Nabors Canada | |||||||
Debt | |||||||
Maximum borrowing capacity | $ 32,000,000 | ||||||
Senior Notes. | |||||||
Debt | |||||||
Principal amount redeemed | 30,500,000 | ||||||
Repayment of long-term debt including accrued and unpaid interest | 22,400,000 | ||||||
Payment of accrued and unpaid interest | 600,000 | ||||||
4.625% senior notes due September 2021 | |||||||
Debt | |||||||
Senior Notes | $ 82,428,000 | 86,329,000 | |||||
Interest rate on senior notes due (as a percent) | 4.625% | ||||||
5.50% senior notes due January 2023 | |||||||
Debt | |||||||
Senior Notes | $ 24,446,000 | 28,443,000 | |||||
Interest rate on senior notes due (as a percent) | 5.50% | ||||||
5.10% senior notes due September 2023 | |||||||
Debt | |||||||
Senior Notes | $ 120,141,000 | 121,077,000 | |||||
Interest rate on senior notes due (as a percent) | 5.10% | ||||||
0.75% senior exchangeable notes due January 2024 | |||||||
Debt | |||||||
Senior Notes | $ 253,733,000 | 279,700,000 | |||||
Interest rate on senior notes due (as a percent) | 0.75% | 0.75% | |||||
5.75% senior notes due February 2025 | |||||||
Debt | |||||||
Senior Notes | $ 586,308,000 | 610,818,000 | |||||
Interest rate on senior notes due (as a percent) | 5.75% | ||||||
7.25% senior notes due January 2026 | |||||||
Debt | |||||||
Interest rate on senior notes due (as a percent) | 7.25% | ||||||
7.50% senior notes due January 2028 | |||||||
Debt | |||||||
Interest rate on senior notes due (as a percent) | 7.50% | ||||||
6.50% senior priority guaranteed notes due February 2025 | |||||||
Debt | |||||||
Senior Notes | $ 50,485,000 | 50,485,000 | |||||
Interest rate on senior notes due (as a percent) | 6.50% | ||||||
9.00% senior priority guaranteed notes due February 2025 | |||||||
Debt | |||||||
Senior Notes | $ 218,082,000 | 192,032,000 | |||||
Interest rate on senior notes due (as a percent) | 9.00% | ||||||
7.25% senior guaranteed notes due January 2026 | |||||||
Debt | |||||||
Senior Notes | $ 559,978,000 | 559,978,000 | |||||
Interest rate on senior notes due (as a percent) | 7.25% | ||||||
7.50% senior guaranteed notes due January 2028 | |||||||
Debt | |||||||
Senior Notes | $ 389,609,000 | $ 389,609,000 | |||||
Interest rate on senior notes due (as a percent) | 7.50% | ||||||
Debt Exchange Transactions | |||||||
Debt | |||||||
Future contractual interest payments | $ 9,400,000 | ||||||
Aggregate principal amount exchanged | 40,000,000 | ||||||
Aggregate principal amount of debt issued in exchanges | 26,050,000 | ||||||
Debt Exchange Transactions | Nabors Delaware | |||||||
Debt | |||||||
Aggregate principal amount exchanged | 40,000,000 | ||||||
Debt Exchange Transactions | 0.75% senior exchangeable notes due January 2024 | |||||||
Debt | |||||||
Long-term Debt | 287,300,000 | ||||||
Aggregate amount of senior notes | $ 575,000,000 | ||||||
Interest rate on senior notes due (as a percent) | 0.75% | ||||||
Debt exchangeable notes | $ 411,200,000 | ||||||
Equity component | $ 163,800,000 | ||||||
Exchange rate of common shares | 0.8018 | ||||||
Principal amount of notes | $ 1,000 | ||||||
Exchange price per common share (in dollars per share) | $ / shares | $ 1,247.19 | ||||||
Aggregate principal amount exchanged | 35,000,000 | ||||||
Debt Exchange Transactions | 5.75% senior notes due February 2025 | |||||||
Debt | |||||||
Aggregate principal amount exchanged | 5,000,000 | ||||||
Debt Exchange Transactions | 9.00% senior priority guaranteed notes due February 2025 | |||||||
Debt | |||||||
Aggregate amount of senior notes | $ 26,100,000 | ||||||
Interest rate on senior notes due (as a percent) | 9.00% | 9.00% |
Shareholders Equity (Details)
Shareholders Equity (Details) | Jun. 11, 2021shares | May 03, 2021shares | May 27, 2020 | May 05, 2020$ / sharesshares | Apr. 20, 2020USD ($)$ / sharesshares | Jun. 30, 2020$ / shares | Jun. 30, 2021USD ($)$ / sharesshares | Jun. 30, 2020$ / shares | Dec. 31, 2020$ / sharesshares | Dec. 31, 2018$ / sharesshares | May 27, 2021USD ($)item$ / sharesshares | Apr. 24, 2020shares | Apr. 19, 2020$ / sharesshares | Jan. 31, 2017 |
Common shares | ||||||||||||||
Reverse stock split ratio | 50 | |||||||||||||
Common shares, shares authorized | 16,000,000 | 32,000,000 | 32,000,000 | 32,000,000 | 800,000,000 | |||||||||
Fractional common shares issued | 0 | |||||||||||||
Common shares, par value (in dollars per share) | $ / shares | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.001 | ||||||||||
Common stock shares authorized increase percentage | 100.00% | |||||||||||||
Common stock shares authorized amount | $ | $ 1,600,000 | |||||||||||||
Preferred stock, rate (as a percent) | 6.00% | 6.00% | ||||||||||||
Preferred shares, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | ||||||||||||
Preferred stock, liquidation preference (in dollars per share) | $ / shares | 50 | $ 50 | ||||||||||||
Preferred Stock, Dividends Per Share, Declared | $ / shares | $ 0.75 | $ 0.75 | $ 1.50 | |||||||||||
Number of right share for each outstanding common share | 1 | |||||||||||||
Number of warrants received per common share held | 0.40 | |||||||||||||
Number of warrants issued | 3,236,430 | |||||||||||||
Gain for the decrease in liability | $ | $ 1,700,000 | |||||||||||||
Exercise price (in dollars per share) | $ / shares | $ 166.66667 | |||||||||||||
Number of additional securities | 0.333 | |||||||||||||
Multiplying factor for exercise of warrants | item | 3 | |||||||||||||
Percentage volume weighted average price of stock times factor must exceed sum of volume weighted average prices of second, third and fourth days before exercise | 6.00% | |||||||||||||
Conversion price percentage | 95.00% | |||||||||||||
Fair value of the Warrants | $ | $ 1,000,000 | $ 2,700,000 | ||||||||||||
Minimum percentage beneficial ownership to trigger rights exercise (as a percent) | 10.00% | 4.90% | ||||||||||||
Percentage discount that a rights holder is entitled to when purchasing additional shares (as a percent) | 50.00% | |||||||||||||
Price per share at which the Rights may be redeemed | 0.01 | |||||||||||||
Exchange ratio after rights trigger | 1 | |||||||||||||
Preferred stock, shares outstanding | 0 | 4,870,000 | ||||||||||||
5.10% senior notes due September 2023 | ||||||||||||||
Common shares | ||||||||||||||
Interest rate (as a percent) | 5.10% | |||||||||||||
0.75% senior exchangeable notes due January 2024 | ||||||||||||||
Common shares | ||||||||||||||
Interest rate (as a percent) | 0.75% | 0.75% | ||||||||||||
5.75% senior notes due February 2025 | ||||||||||||||
Common shares | ||||||||||||||
Interest rate (as a percent) | 5.75% | |||||||||||||
7.25% senior notes due January 2026 | ||||||||||||||
Common shares | ||||||||||||||
Interest rate (as a percent) | 7.25% | |||||||||||||
Specific Shareholder | ||||||||||||||
Common shares | ||||||||||||||
Minimum percentage beneficial ownership to trigger rights exercise (as a percent) | 10.00% | |||||||||||||
Acquiring Company | ||||||||||||||
Common shares | ||||||||||||||
Percentage discount that a rights holder is entitled to when purchasing additional shares (as a percent) | 50.00% | |||||||||||||
Minimum | ||||||||||||||
Common shares | ||||||||||||||
Reverse stock split ratio | 15 | |||||||||||||
Additional ownership percentage acquired for right trigger | 0.50% | |||||||||||||
Maximum | ||||||||||||||
Common shares | ||||||||||||||
Reverse stock split ratio | 50 | |||||||||||||
Mandatory Convertible Preferred Shares | ||||||||||||||
Common shares | ||||||||||||||
Preferred stock, shares issued | 5,750,000 | |||||||||||||
Preferred stock, rate (as a percent) | 6.00% | |||||||||||||
Preferred shares, par value (in dollars per share) | $ / shares | $ 0.001 | |||||||||||||
Preferred stock, liquidation preference (in dollars per share) | $ / shares | $ 50 | |||||||||||||
Preferred stock, shares outstanding | 4,900,000 | |||||||||||||
Series B Preferred Stock | ||||||||||||||
Common shares | ||||||||||||||
Preferred shares, par value (in dollars per share) | $ / shares | $ 0.001 | |||||||||||||
Number of right share for each outstanding common share | 1 | |||||||||||||
Number of shares each right entitled to purchase | 0.001 | |||||||||||||
Exercise price (in dollars per share) | $ / shares | $ 58.08 | |||||||||||||
Common Stock | Mandatory Convertible Preferred Shares | ||||||||||||||
Common shares | ||||||||||||||
Shares issued | 668,000 |
Fair Value Measurements - Debt
Fair Value Measurements - Debt (Details) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021USD ($)D | Dec. 31, 2020USD ($) | Jan. 31, 2017 | |
Fair Value of Financial Instruments | |||
Number of business day notice period | D | 20 | ||
Less: deferred financing costs | $ 19,585 | $ 22,270 | |
4.625% senior notes due September 2021 | |||
Fair Value of Financial Instruments | |||
Interest rate on senior notes due (as a percent) | 4.625% | ||
5.50% senior notes due January 2023 | |||
Fair Value of Financial Instruments | |||
Interest rate on senior notes due (as a percent) | 5.50% | ||
5.10% senior notes due September 2023 | |||
Fair Value of Financial Instruments | |||
Interest rate on senior notes due (as a percent) | 5.10% | ||
0.75% senior exchangeable notes due January 2024 | |||
Fair Value of Financial Instruments | |||
Interest rate on senior notes due (as a percent) | 0.75% | 0.75% | |
5.75% senior notes due February 2025 | |||
Fair Value of Financial Instruments | |||
Interest rate on senior notes due (as a percent) | 5.75% | ||
6.50% senior priority guaranteed notes due February 2025 | |||
Fair Value of Financial Instruments | |||
Interest rate on senior notes due (as a percent) | 6.50% | ||
9.00% senior priority guaranteed notes due February 2025 | |||
Fair Value of Financial Instruments | |||
Interest rate on senior notes due (as a percent) | 9.00% | ||
7.25% senior guaranteed notes due January 2026 | |||
Fair Value of Financial Instruments | |||
Interest rate on senior notes due (as a percent) | 7.25% | ||
7.50% senior guaranteed notes due January 2028 | |||
Fair Value of Financial Instruments | |||
Interest rate on senior notes due (as a percent) | 7.50% | ||
Fair Value | |||
Fair Value of Financial Instruments | |||
Debt | $ 2,783,685 | 2,229,649 | |
Fair Value | 2018 revolving credit facility | |||
Fair Value of Financial Instruments | |||
Debt | 557,500 | 672,500 | |
Fair Value | 4.625% senior notes due September 2021 | |||
Fair Value of Financial Instruments | |||
Debt | 82,718 | 78,862 | |
Fair Value | 5.50% senior notes due January 2023 | |||
Fair Value of Financial Instruments | |||
Debt | 23,683 | 18,768 | |
Fair Value | 5.10% senior notes due September 2023 | |||
Fair Value of Financial Instruments | |||
Debt | 116,524 | 78,435 | |
Fair Value | 0.75% senior exchangeable notes due January 2024 | |||
Fair Value of Financial Instruments | |||
Debt | 257,391 | 169,458 | |
Fair Value | 5.75% senior notes due February 2025 | |||
Fair Value of Financial Instruments | |||
Debt | 540,195 | 318,871 | |
Fair Value | 6.50% senior priority guaranteed notes due February 2025 | |||
Fair Value of Financial Instruments | |||
Debt | 49,156 | 44,059 | |
Fair Value | 9.00% senior priority guaranteed notes due February 2025 | |||
Fair Value of Financial Instruments | |||
Debt | 229,869 | 185,221 | |
Fair Value | 7.25% senior guaranteed notes due January 2026 | |||
Fair Value of Financial Instruments | |||
Debt | 550,240 | 396,106 | |
Fair Value | 7.50% senior guaranteed notes due January 2028 | |||
Fair Value of Financial Instruments | |||
Debt | 376,409 | 267,369 | |
Carrying Value | |||
Fair Value of Financial Instruments | |||
Debt | 2,842,710 | 2,990,971 | |
Less: deferred financing costs | 19,585 | 22,270 | |
Debt, net of financing costs | 2,823,125 | 2,968,701 | |
Carrying Value | 2018 revolving credit facility | |||
Fair Value of Financial Instruments | |||
Debt | 557,500 | 672,500 | |
Carrying Value | 4.625% senior notes due September 2021 | |||
Fair Value of Financial Instruments | |||
Debt | 82,428 | 86,329 | |
Carrying Value | 5.50% senior notes due January 2023 | |||
Fair Value of Financial Instruments | |||
Debt | 24,446 | 28,443 | |
Carrying Value | 5.10% senior notes due September 2023 | |||
Fair Value of Financial Instruments | |||
Debt | 120,141 | 121,077 | |
Carrying Value | 0.75% senior exchangeable notes due January 2024 | |||
Fair Value of Financial Instruments | |||
Debt | 253,733 | 279,700 | |
Carrying Value | 5.75% senior notes due February 2025 | |||
Fair Value of Financial Instruments | |||
Debt | 586,308 | 610,818 | |
Carrying Value | 6.50% senior priority guaranteed notes due February 2025 | |||
Fair Value of Financial Instruments | |||
Debt | 50,485 | 50,485 | |
Carrying Value | 9.00% senior priority guaranteed notes due February 2025 | |||
Fair Value of Financial Instruments | |||
Debt | 218,082 | 192,032 | |
Carrying Value | 7.25% senior guaranteed notes due January 2026 | |||
Fair Value of Financial Instruments | |||
Debt | 559,978 | 559,978 | |
Carrying Value | 7.50% senior guaranteed notes due January 2028 | |||
Fair Value of Financial Instruments | |||
Debt | $ 389,609 | $ 389,609 |
Commitments and Contingencies -
Commitments and Contingencies - Litigation (Details) $ in Millions | 1 Months Ended | 6 Months Ended | 12 Months Ended |
Mar. 31, 2011USD ($) | Jun. 30, 2021USD ($) | Dec. 31, 2018USD ($) | |
Court of Ouargla Algeria Foreign Currency Controls | |||
Commitments and Contingencies, Disclosure | |||
Litigation amount as per judgment | $ 21 | ||
Payment of contract amount in foreign currency | 7.5 | ||
Payment of contract amount in domestic currency | $ 3.2 | ||
Approximate multiplier of the amount at issue for fines and penalties | 4 | ||
Court of Ouargla Algeria Foreign Currency Controls | Maximum | |||
Commitments and Contingencies, Disclosure | |||
Potential judgment in excess of accrual | $ 13 | ||
KMG Nabors Drilling Company Joint Venture | Atyrau Oblast Ecology Department | |||
Commitments and Contingencies, Disclosure | |||
Administrative fines | $ 0.8 | ||
KMG Nabors Drilling Company Joint Venture | Atyrau Oblast Ecology Department | Minimum | |||
Commitments and Contingencies, Disclosure | |||
Environmental damages | $ 3.4 |
Commitments and Contingencies_2
Commitments and Contingencies - Financial Guarantees (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Summary of total maximum amount of financial guarantees issued | |
2021 | $ 46,462 |
2022 | 140,828 |
2023 | 112 |
Thereafter | 50 |
Total | $ 187,452 |
Earnings (Losses) Per Share (De
Earnings (Losses) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Net income (loss) (numerator): | ||||
Income (loss) from continuing operations, net of tax | $ (190,403) | $ (137,968) | $ (318,732) | $ (512,237) |
Less: net (income) loss attributable to noncontrolling interest | (5,614) | (10,167) | (14,390) | (27,632) |
Less: preferred stock dividends | (3,653) | (3,653) | (7,305) | |
Less: accrued distribution on redeemable noncontrolling interest in subsidiary | (2,330) | (4,307) | (4,732) | (8,739) |
Less: distributed and undistributed earnings allocated to unvested shareholders | (125) | |||
Adjusted income (loss) from continuing operations, net of tax - basic | (198,347) | (156,095) | (341,507) | (556,038) |
Income (loss) from discontinued operations, net of tax | $ 8 | $ 23 | $ 27 | $ (70) |
Weighted-average number of shares outstanding - basic | 7,460 | 7,052 | 7,281 | 7,052 |
Earnings (losses) Per Share: | ||||
Basic from continuing operations (in dollars per share) | $ (26.59) | $ (22.13) | $ (46.90) | $ (78.85) |
Basic from discontinued operations (in dollars per share) | (0.01) | |||
Total Basic (in dollars per share) | $ (26.59) | $ (22.13) | $ (46.90) | $ (78.86) |
DILUTED EPS: | ||||
Adjusted income (loss) from continuing operations, net of tax - basic | $ (198,347) | $ (156,095) | $ (341,507) | $ (556,038) |
Adjusted income (loss) from continuing operations, net of tax - diluted | (198,347) | (156,095) | (341,507) | (556,038) |
Income (loss) from discontinued operations, net of tax | $ 8 | $ 23 | $ 27 | $ (70) |
Weighted-average number of shares outstanding - basic | 7,460 | 7,052 | 7,281 | 7,052 |
Weighted-average number of shares outstanding - diluted | 7,460 | 7,052 | 7,281 | 7,052 |
Earnings (losses) per share: | ||||
Diluted from continuing operations (in dollars per share) | $ (26.59) | $ (22.13) | $ (46.90) | $ (78.85) |
Diluted from discontinued operations (in dollars per share) | (0.01) | |||
Total Diluted (in dollars per share) | $ (26.59) | $ (22.13) | $ (46.90) | $ (78.86) |
Earnings (Losses) Per Share - E
Earnings (Losses) Per Share - Exclusions from Diluted Earnings (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Potentially dilutive securities excluded as anti-dilutive | 75 | 67 | 74 | 67 | |
Mandatory Convertible Preferred Shares | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Potentially dilutive securities excluded as anti-dilutive | 5,000 | 790 |
Impairments and Other Charges_2
Impairments and Other Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Impairments and Other Charges | |||||
Goodwill impairments | $ 27,798 | ||||
Impairment of Intangible Assets (Excluding Goodwill) | $ 1 | 83,625 | |||
Oil and gas related assets | $ 12,300 | 12,286 | |||
Severance and transaction related costs | $ 1,513 | 11,176 | $ 2,592 | 11,835 | |
Other assets | 355 | 381 | 1,126 | 16,984 | |
Total | 59,868 | 57,852 | 62,351 | 334,286 | |
Other Machinery and Equipment | |||||
Impairments and Other Charges | |||||
Intangible asset impairment | 28,600 | ||||
U.S. Drilling | |||||
Impairments and Other Charges | |||||
Impairment of Long-Lived Assets Held-for-use | 33,300 | ||||
U.S. Drilling | Drilling, workover rigs and related equipment | |||||
Impairments and Other Charges | |||||
Intangible asset impairment | 54,000 | ||||
Impairment of Long-Lived Assets Held-for-use | 4,961 | 87,300 | 87,333 | ||
Canada Drilling | Other Machinery and Equipment | |||||
Impairments and Other Charges | |||||
Intangible asset impairment | 58,000 | 58,000 | |||
International Drilling | Drilling, workover rigs and related equipment | |||||
Impairments and Other Charges | |||||
Recorded impairment | 30,500 | ||||
Impairment of Long-Lived Assets Held-for-use | 32,591 | 215 | 63,076 | ||
Drilling Solutions | |||||
Impairments and Other Charges | |||||
Goodwill impairments | 11,400 | ||||
Rig Technologies | |||||
Impairments and Other Charges | |||||
Goodwill impairments | $ 16,400 | ||||
Intangible asset impairment | (90) | 418 | 2,708 | ||
Provision for obsolescence | $ 400 | 2,700 | 400 | 2,700 | |
Rig Technologies | Other Machinery and Equipment | |||||
Impairments and Other Charges | |||||
Impairment of Long-Lived Assets Held-for-use | $ 8,832 | $ 28,641 | |||
Drilling and Rig Services | |||||
Impairments and Other Charges | |||||
Impairment of Intangible Assets (Excluding Goodwill) | $ 83,600 |
Supplemental Balance Sheet an_3
Supplemental Balance Sheet and Income Statement Information - Accrued Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Accrued liabilities | ||
Accrued compensation | $ 71,278 | $ 82,462 |
Deferred revenue and proceeds on insurance and asset sales | 69,654 | 61,473 |
Other taxes payable | 29,027 | 28,602 |
Workers' compensation liabilities | 7,788 | 7,788 |
Interest payable | 70,245 | 62,935 |
Litigation reserves | 14,621 | 13,976 |
Dividends declared and payable | 3,653 | |
Other accrued liabilities | 8,277 | 15,196 |
Accrued liabilities | $ 270,890 | $ 276,085 |
Supplemental Balance Sheet an_4
Supplemental Balance Sheet and Income Statement Information - Investment income (loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Investment income (loss) | ||||
Interest and dividend income, including correction | $ (290) | |||
Interest and dividend income | $ 1,230 | $ 1,003 | $ 3,603 | |
Gains (losses) on marketable securities | 228 | 806 | 198 | (4,765) |
Investment income (loss) | $ (62) | $ 2,036 | $ 1,201 | $ (1,162) |
Supplemental Balance Sheet an_5
Supplemental Balance Sheet and Income Statement Information - Other Expense (Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Other expense (income) | ||||
Losses (gains) on sales, disposals and involuntary conversions of long-lived assets | $ 8,965 | $ 1,037 | $ 17,488 | $ 2,428 |
Litigation expenses and reserves | 1,847 | 1,412 | 3,341 | 2,112 |
Foreign currency transaction losses (gains) | 148 | 2,727 | 2,527 | 2,082 |
(Gain) loss on debt buyback | (123) | (35,936) | (8,185) | (51,678) |
Other losses (gains) | (4,250) | (35) | (3,721) | (2,849) |
Other, net | $ 6,587 | $ (30,795) | $ 11,450 | $ (47,905) |
Supplemental Balance Sheet an_6
Supplemental Balance Sheet and Income Statement Information - Accumulated Other Comp Inc (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Changes in accumulated other comprehensive income (loss) | ||||
Balance at the beginning of the period | $ 1,151,384 | |||
Other comprehensive income (loss), net of tax | $ 2,132 | $ 6,818 | 2,500 | $ (10,400) |
Balance at the end of the period | 818,919 | 818,919 | ||
Accumulated Other Comprehensive Income | ||||
Changes in accumulated other comprehensive income (loss) | ||||
Balance at the beginning of the period | (11,124) | (11,788) | ||
Other comprehensive income (loss) before reclassifications | 2,420 | (10,694) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 80 | 294 | ||
Other comprehensive income (loss), net of tax | 2,500 | (10,400) | ||
Balance at the end of the period | (8,624) | (22,188) | (8,624) | (22,188) |
Gains (losses) on cash flow hedges | ||||
Changes in accumulated other comprehensive income (loss) | ||||
Balance at the beginning of the period | 2 | (65) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 214 | |||
Other comprehensive income (loss), net of tax | 214 | |||
Balance at the end of the period | 2 | 149 | 2 | 149 |
Defined benefit pension plan items | ||||
Changes in accumulated other comprehensive income (loss) | ||||
Balance at the beginning of the period | (3,616) | (3,778) | ||
Other comprehensive income (loss) before reclassifications | (1,900) | |||
Amounts reclassified from accumulated other comprehensive income (loss) | 80 | 80 | ||
Other comprehensive income (loss), net of tax | (1,820) | 80 | ||
Balance at the end of the period | (5,436) | (3,698) | (5,436) | (3,698) |
Foreign currency items | ||||
Changes in accumulated other comprehensive income (loss) | ||||
Balance at the beginning of the period | (7,510) | (7,945) | ||
Other comprehensive income (loss) before reclassifications | 4,320 | (10,694) | ||
Other comprehensive income (loss), net of tax | 4,320 | (10,694) | ||
Balance at the end of the period | $ (3,190) | $ (18,639) | $ (3,190) | $ (18,639) |
Supplemental Balance Sheet an_7
Supplemental Balance Sheet and Income Statement Information - Reclass Accumulated Other (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Unrealized (gains) losses on available-for-sale securities that were reclassified from net income | ||||
Interest expense | $ 41,714 | $ 51,206 | $ 84,689 | $ 105,928 |
General and administrative expenses | 51,580 | 46,244 | 106,240 | 103,628 |
Income (loss) from continuing operations before income taxes | (165,684) | (133,522) | (284,288) | (490,098) |
Tax expense (benefit) | 24,719 | 4,446 | 34,444 | 22,139 |
Net income (loss) | (190,395) | (137,945) | (318,705) | (512,307) |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Unrealized (gains) losses on available-for-sale securities that were reclassified from net income | ||||
Interest expense | 142 | 284 | ||
General and administrative expenses | 52 | 52 | 104 | 104 |
Income (loss) from continuing operations before income taxes | (52) | (194) | (104) | (388) |
Tax expense (benefit) | (12) | (47) | (24) | (94) |
Net income (loss) | $ (40) | $ (147) | $ (80) | $ (294) |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Operating revenues and earnings (losses) from unconsolidated affiliates: | |||||
Total operating revenues | $ 489,333 | $ 533,931 | $ 949,844 | $ 1,252,295 | |
Reconciliation of segment adjusted operating income (loss) to net income (loss) from continuing operations before income taxes: | |||||
Adjusted operating income (loss) | (26,084) | (28,673) | (62,004) | (37,789) | |
Investment income (loss) | (62) | 2,036 | 1,201 | (1,162) | |
Interest expense | (41,714) | (51,206) | (84,689) | (105,928) | |
Impairments and other charges | (59,868) | (57,852) | (62,351) | (334,286) | |
Other, net | (6,587) | 30,795 | (11,450) | 47,905 | |
Income (loss) from continuing operations before income taxes | (165,684) | (133,522) | (284,288) | (490,098) | |
ASSETS | |||||
Total assets | 5,042,318 | 5,042,318 | $ 5,503,428 | ||
Operating segment | |||||
Reconciliation of segment adjusted operating income (loss) to net income (loss) from continuing operations before income taxes: | |||||
Adjusted operating income (loss) | (26,084) | (28,673) | (62,004) | (37,789) | |
Other reconciling items | |||||
Reconciliation of segment adjusted operating income (loss) to net income (loss) from continuing operations before income taxes: | |||||
Adjusted operating income (loss) | (31,369) | (28,622) | (64,995) | (58,838) | |
ASSETS | |||||
Total assets | 423,070 | 423,070 | 443,153 | ||
U.S. Drilling | |||||
Operating revenues and earnings (losses) from unconsolidated affiliates: | |||||
Total operating revenues | 161,606 | 173,784 | 303,905 | 448,685 | |
U.S. Drilling | Operating segment | |||||
Operating revenues and earnings (losses) from unconsolidated affiliates: | |||||
Total operating revenues | 161,606 | 173,784 | 303,905 | 448,685 | |
Reconciliation of segment adjusted operating income (loss) to net income (loss) from continuing operations before income taxes: | |||||
Adjusted operating income (loss) | (20,869) | (23,395) | (44,205) | (30,799) | |
ASSETS | |||||
Total assets | 1,724,672 | 1,724,672 | 1,871,008 | ||
Canada Drilling | |||||
Operating revenues and earnings (losses) from unconsolidated affiliates: | |||||
Total operating revenues | 12,313 | 3,564 | 33,302 | 29,155 | |
Canada Drilling | Operating segment | |||||
Operating revenues and earnings (losses) from unconsolidated affiliates: | |||||
Total operating revenues | 12,313 | 3,564 | 33,302 | 29,155 | |
Reconciliation of segment adjusted operating income (loss) to net income (loss) from continuing operations before income taxes: | |||||
Adjusted operating income (loss) | (2,608) | (5,795) | 1,299 | (5,758) | |
ASSETS | |||||
Total assets | 109,437 | 109,437 | 174,123 | ||
International Drilling | |||||
Operating revenues and earnings (losses) from unconsolidated affiliates: | |||||
Total operating revenues | 255,282 | 301,078 | 502,120 | 638,188 | |
International Drilling | Operating segment | |||||
Operating revenues and earnings (losses) from unconsolidated affiliates: | |||||
Total operating revenues | 255,282 | 301,078 | 502,120 | 638,188 | |
Reconciliation of segment adjusted operating income (loss) to net income (loss) from continuing operations before income taxes: | |||||
Adjusted operating income (loss) | (8,439) | 276 | (27,071) | (3,871) | |
ASSETS | |||||
Total assets | 2,493,823 | 2,493,823 | 2,688,912 | ||
Drilling Solutions | |||||
Operating revenues and earnings (losses) from unconsolidated affiliates: | |||||
Total operating revenues | 39,111 | 33,129 | 74,817 | 88,513 | |
Drilling Solutions | Operating segment | |||||
Operating revenues and earnings (losses) from unconsolidated affiliates: | |||||
Total operating revenues | 39,111 | 33,129 | 74,817 | 88,513 | |
Reconciliation of segment adjusted operating income (loss) to net income (loss) from continuing operations before income taxes: | |||||
Adjusted operating income (loss) | 6,524 | 1,733 | 11,234 | 12,282 | |
ASSETS | |||||
Total assets | 82,705 | 82,705 | 100,278 | ||
Rig Technologies | Operating segment | |||||
Reconciliation of segment adjusted operating income (loss) to net income (loss) from continuing operations before income taxes: | |||||
Adjusted operating income (loss) | (692) | $ (1,492) | (3,261) | $ (9,643) | |
ASSETS | |||||
Total assets | $ 208,611 | $ 208,611 | $ 225,954 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | $ 489,333 | $ 533,931 | $ 949,844 | $ 1,252,295 |
U.S. Drilling | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 161,606 | 173,784 | 303,905 | 448,685 |
Canada Drilling | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 12,313 | 3,564 | 33,302 | 29,155 |
International Drilling | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 255,282 | 301,078 | 502,120 | 638,188 |
Drilling Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 39,111 | 33,129 | 74,817 | 88,513 |
Rig Technologies | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 34,552 | 33,582 | 60,300 | 75,732 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | (13,531) | (11,206) | (24,600) | (27,978) |
Operating segment | Lower 48 | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 158,244 | 160,247 | 298,765 | 436,720 |
Operating segment | U.S. Offshore Gulf Of Mexico | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 34,789 | 38,549 | 64,717 | 80,771 |
Operating segment | Alaska | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 7,478 | 8,559 | 13,186 | 25,152 |
Operating segment | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 13,900 | 4,226 | 36,243 | 32,159 |
Operating segment | Middle East & Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 197,371 | 220,390 | 383,628 | 448,158 |
Operating segment | Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 63,752 | 50,225 | 124,239 | 137,423 |
Operating segment | Europe, Africa & CIS | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 27,330 | 62,941 | 53,666 | 119,890 |
Operating segment | U.S. Drilling | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 161,606 | 173,784 | 303,905 | 448,685 |
Operating segment | U.S. Drilling | Lower 48 | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 121,360 | 128,814 | 230,896 | 349,043 |
Operating segment | U.S. Drilling | U.S. Offshore Gulf Of Mexico | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 32,967 | 36,682 | 60,159 | 75,738 |
Operating segment | U.S. Drilling | Alaska | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 7,279 | 8,288 | 12,850 | 23,904 |
Operating segment | Canada Drilling | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 12,313 | 3,564 | 33,302 | 29,155 |
Operating segment | Canada Drilling | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 12,313 | 3,564 | 33,302 | 29,155 |
Operating segment | International Drilling | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 255,282 | 301,078 | 502,120 | 638,188 |
Operating segment | International Drilling | Middle East & Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 174,339 | 193,313 | 342,525 | 394,490 |
Operating segment | International Drilling | Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 57,931 | 49,700 | 113,839 | 133,919 |
Operating segment | International Drilling | Europe, Africa & CIS | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 23,012 | 58,065 | 45,756 | 109,779 |
Operating segment | Drilling Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 39,111 | 33,129 | 74,817 | 88,513 |
Operating segment | Drilling Solutions | Lower 48 | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 21,436 | 19,325 | 39,884 | 55,037 |
Operating segment | Drilling Solutions | U.S. Offshore Gulf Of Mexico | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 1,822 | 1,867 | 4,558 | 5,033 |
Operating segment | Drilling Solutions | Alaska | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 185 | 244 | 322 | 1,230 |
Operating segment | Drilling Solutions | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 204 | 78 | 658 | 808 |
Operating segment | Drilling Solutions | Middle East & Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 9,457 | 10,496 | 18,448 | 21,534 |
Operating segment | Drilling Solutions | Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 5,658 | 555 | 10,224 | 3,382 |
Operating segment | Drilling Solutions | Europe, Africa & CIS | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 349 | 564 | 723 | 1,489 |
Operating segment | Rig Technologies | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 34,552 | 33,582 | 60,300 | 75,732 |
Operating segment | Rig Technologies | Lower 48 | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 15,448 | 12,108 | 27,985 | 32,640 |
Operating segment | Rig Technologies | Alaska | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 14 | 27 | 14 | 18 |
Operating segment | Rig Technologies | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 1,383 | 584 | 2,283 | 2,196 |
Operating segment | Rig Technologies | Middle East & Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 13,575 | 16,581 | 22,655 | 32,134 |
Operating segment | Rig Technologies | Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 163 | (30) | 176 | 122 |
Operating segment | Rig Technologies | Europe, Africa & CIS | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 3,969 | 4,312 | 7,187 | 8,622 |
Other reconciling items | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | (13,531) | (11,206) | (24,600) | (27,978) |
Other reconciling items | Other | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | (13,531) | (11,206) | (24,600) | (27,978) |
Other reconciling items (3) | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | $ 13,531 | $ 11,206 | $ 24,600 | $ 27,978 |
Revenue Recognition - Changes i
Revenue Recognition - Changes in Contract Assets and Contract Liabilities (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Accounts receivables current | ||
Contract Receivables | $ 379.8 | $ 427.2 |
Contract with customer assets current | ||
Contract Assets (Current) | 26.6 | 23.5 |
Contract with customer non-current asset | ||
Contract Assets (Long-term) | 5.3 | 6.8 |
Contract with customer liability current | ||
Contract Liabilities (Current) | 46.9 | 42.8 |
Contract with customer liability non-current | ||
Contract Liabilities (Long-term) | $ 35.6 | $ 44.2 |
Contract Asset Balance | ||
2021 | 68.00% | |
Contract percentage recognized | 35.00% | |
2022 | 26.00% | |
2023 or thereafter | 6.00% |
Revenue Recognition - Remaining
Revenue Recognition - Remaining Performance Obligation (Details) | Jun. 30, 2021 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Remaining performance obligations | |
Percentage of remaining performance obligation expected to be recognized in period | 13.00% |
Revenue, Remaining performance obligation, expected timing of satisfaction period | 6 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-02 | |
Remaining performance obligations | |
Percentage of remaining performance obligation expected to be recognized in period | 39.00% |
Revenue, Remaining performance obligation, expected timing of satisfaction period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Remaining performance obligations | |
Percentage of remaining performance obligation expected to be recognized in period | 20.00% |
Revenue, Remaining performance obligation, expected timing of satisfaction period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Remaining performance obligations | |
Percentage of remaining performance obligation expected to be recognized in period | 41.00% |
Revenue, Remaining performance obligation, expected timing of satisfaction period | 12 months |
Assets Held for Sale (Details)
Assets Held for Sale (Details) $ in Thousands | Jun. 30, 2021USD ($)item | Dec. 31, 2020USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Assets held for sale | $ 111,682 | $ 16,562 |
Canada Drilling segment holdings | Disposal Group, Held-for-sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Assets held for sale | $ 95,000 | |
Number of land based drilling | item | 35 |