Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 06, 2024 | Jun. 30, 2023 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Transition Report | false | ||
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, Postal Zip Code | HM08 | ||
Entity Address, Country | BM | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 10,633,331 | ||
Entity Public Float | $ 838,071,360 | ||
Auditor Firm ID | 238 | ||
Auditor Name | PricewaterhouseCoopers LLP | ||
Auditor Location | Houston, Texas | ||
Entity Central Index Key | 0001163739 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Current assets: | |||
Cash and cash equivalents | $ 1,057,487 | $ 451,025 | |
Short-term investments | 12,691 | 1,290 | |
Accounts receivable, net of allowance of $52,864 and $52,895, respectively | 347,837 | 327,397 | |
Inventory, net | 147,798 | 127,947 | |
Other current assets | 79,865 | 92,964 | |
Total current assets | 1,645,678 | 1,000,623 | |
Property, plant and equipment, net | 2,898,728 | 3,026,100 | |
Restricted cash held in trust | 315,488 | 284,841 | |
Deferred income taxes | 238,871 | 257,320 | |
Other long-term assets | 179,200 | 160,970 | |
Total assets | [1] | 5,277,965 | 4,729,854 |
Current liabilities: | |||
Current portion of debt | 629,621 | ||
Trade accounts payable | 294,442 | 314,041 | |
Accrued liabilities | 230,240 | 247,575 | |
Income taxes payable | 54,255 | 27,990 | |
Current lease liabilities | 5,423 | 6,784 | |
Total current liabilities | 1,213,981 | 596,390 | |
Long-term debt | 2,511,519 | 2,537,540 | |
Other long-term liabilities | 270,014 | 377,671 | |
Deferred income taxes | 1,366 | 2,858 | |
Total liabilities | [1] | 3,996,880 | 3,514,459 |
Commitments and contingencies (Note 8) | |||
Redeemable noncontrolling interest in subsidiary | 739,075 | 678,604 | |
Shareholders' equity: | |||
Common shares, par value $0.05 per share: Authorized common shares 32,000; issued 10,556 and 10,505, respectively | 527 | 525 | |
Capital in excess of par value | 3,538,896 | 3,536,373 | |
Accumulated other comprehensive income (loss) | (10,832) | (11,038) | |
Retained earnings (accumulated deficit) | (1,886,226) | (1,841,153) | |
Less: treasury shares, at cost, 1,161 and 1,090 common shares, respectively | (1,315,751) | (1,315,751) | |
Total shareholders' equity | 326,614 | 368,956 | |
Noncontrolling interest | 215,396 | 167,835 | |
Total equity | 542,010 | 536,791 | |
Total liabilities and equity | $ 5,277,965 | $ 4,729,854 | |
[1] The consolidated balance sheets include assets and liabilities of consolidated joint ventures. See Note 13—Joint Ventures for additional information. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
CONSOLIDATED BALANCE SHEETS | ||
Allowance for accounts receivable | $ 52,864 | $ 52,895 |
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 | 10,556,000 | 10,505,000 |
Treasury shares, common | 1,161,283 | 1,090,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues and other income: | |||
Operating revenues | $ 3,005,981 | $ 2,653,766 | $ 2,017,548 |
Investment income (loss) | 43,820 | 14,992 | 1,557 |
Total revenues and other income | 3,049,801 | 2,668,758 | 2,019,105 |
Costs and other deductions: | |||
Direct costs | 1,790,380 | 1,666,004 | 1,286,896 |
General and administrative expenses | 244,147 | 228,431 | 213,559 |
Research and engineering | 56,297 | 49,939 | 35,153 |
Depreciation and amortization | 645,294 | 665,072 | 693,381 |
Interest expense | 185,285 | 177,895 | 171,476 |
Impairments and other charges | 66,731 | ||
Other, net | (726) | 127,099 | 39,998 |
Total costs and other deductions | 2,920,677 | 2,914,440 | 2,507,194 |
Income (loss) before income taxes | 129,124 | (245,682) | (488,089) |
Income tax expense (benefit): | |||
Current | 63,339 | 54,199 | 66,327 |
Deferred | 15,881 | 7,337 | (10,706) |
Total income tax expense (benefit) | 79,220 | 61,536 | 55,621 |
Income (loss) from continuing operations, net of tax | 49,904 | (307,218) | (543,710) |
Income (loss) from discontinued operations, net of tax | 20 | ||
Net income (loss) | 49,904 | (307,218) | (543,690) |
Less: net (income) loss attributable to noncontrolling interest | (61,688) | (43,043) | (25,582) |
Net income (loss) attributable to Nabors | (11,784) | (350,261) | (569,272) |
Less: Preferred stock dividend | (3,653) | ||
Net income (loss) attributable to Nabors common shareholders | (11,784) | (350,261) | (572,925) |
Amounts attributable to Nabors common shareholders: | |||
Net income (loss) from continuing operations | (11,784) | (350,261) | (572,945) |
Net income (loss) from discontinued operations | 20 | ||
Net income (loss) attributable to Nabors common shareholders | $ (11,784) | $ (350,261) | $ (572,925) |
Earnings (losses) per share: | |||
Basic from continuing operations | $ (5.49) | $ (40.52) | $ (76.58) |
Basic from discontinued operations | |||
Total Basic (in dollars per share) | (5.49) | (40.52) | (76.58) |
Diluted from continuing operations | (5.49) | (40.52) | (76.58) |
Diluted from discontinued operations | |||
Total Diluted (in dollars per share) | $ (5.49) | $ (40.52) | $ (76.58) |
Weighted-average number of common shares outstanding: | |||
Basic (in shares) | 9,159 | 8,898 | 7,605 |
Diluted (in shares) | 9,159 | 8,898 | 7,605 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||
Net income (loss) attributable to Nabors | $ (11,784) | $ (350,261) | $ (569,272) |
Other comprehensive income (loss), before tax: | |||
Translation adjustment attributable to Nabors | 45 | (1,993) | 2,230 |
Pension liability amortization and adjustment | 209 | 1,645 | (1,692) |
Other comprehensive income (loss), before tax | 254 | (348) | 538 |
Income tax expense (benefit) related to items of other comprehensive income (loss) | 48 | 56 | 48 |
Other comprehensive income (loss), net of tax | 206 | (404) | 490 |
Comprehensive income (loss) attributable to Nabors | (11,578) | (350,665) | (568,782) |
Comprehensive income (loss) attributable to noncontrolling interest | 61,688 | 43,043 | 25,582 |
Comprehensive income (loss) | $ 50,110 | $ (307,622) | $ (543,200) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 49,904 | $ (307,218) | $ (543,690) |
Adjustments to net income (loss): | |||
Depreciation and amortization | 645,292 | 665,072 | 693,382 |
Deferred income tax expense (benefit) | 15,881 | 7,335 | (10,711) |
Impairments and other charges | 8,318 | 72,497 | |
Amortization of debt discount and deferred financing costs | 8,735 | 8,138 | 21,359 |
Losses (gains) on debt buyback | (25,275) | (4,119) | (13,423) |
Losses (gains) on long-lived assets, net | 13,920 | 7,352 | 23,864 |
Provision (recovery) of bad debt | 31 | (2,515) | |
Share-based compensation | 15,839 | 15,828 | 19,362 |
Foreign currency transaction losses (gains), net | 37,286 | 6,689 | 4,800 |
Mark-to-market (gain) loss on warrants | (54,684) | 95,909 | |
Net gain related to investment in Vast | (7,167) | ||
Noncontrolling interest | (61,688) | (43,043) | (25,582) |
Other | 2,396 | 869 | 1,298 |
Changes in operating assets and liabilities, net of effects from acquisitions: | |||
Accounts receivable | (27,129) | (54,501) | 71,805 |
Inventory | (19,432) | 928 | 32,037 |
Other current assets | 11,644 | 3,690 | 14,166 |
Other long-term assets | (1,283) | (11,196) | 17,914 |
Trade accounts payable and accrued liabilities | (32,389) | 61,636 | 12,143 |
Income taxes payable | 24,135 | 8,616 | 5,140 |
Other long-term liabilities | 33,528 | 39,104 | 34,930 |
Net cash provided by (used for) operating activities | 637,862 | 501,089 | 428,776 |
Cash flows from investing activities: | |||
Purchases of investments | (38,283) | (21,116) | (14,697) |
Capital expenditures | (540,851) | (373,445) | (234,040) |
Proceeds from sales of assets | 14,133 | 26,713 | 124,301 |
Other | (5,423) | (860) | 7,211 |
Net cash (used for) provided by investing activities | (570,424) | (368,708) | (117,225) |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt | 900,000 | 700,000 | |
Reduction in long-term debt | (298,474) | (182,601) | (186,958) |
Debt issuance costs | (18,310) | (3,864) | (16,339) |
Proceeds from revolving credit facilities | 290,000 | 335,000 | 1,025,000 |
Reduction in revolving credit facilities | (290,000) | (795,000) | (1,237,500) |
Dividends to common and preferred shareholders | (194) | (65) | (7,380) |
Redeemable noncontrolling interest distribution related to Sanad | (10,324) | (58,524) | |
Distributions to noncontrolling interest | (2,269) | (3,489) | (3,795) |
Special purpose acquisition company redemptions by non-controlling redeemable shareholders | (286,366) | ||
Sale of non-controlling interest - special purpose acquisition company | 305,000 | 276,000 | |
Other | (6,795) | (1,189) | (2,083) |
Net cash (used for) provided by financing activities | 592,592 | (661,532) | 488,421 |
Effect of exchange rate changes on cash and cash equivalents | (22,988) | (7,219) | (1,742) |
Net increase (decrease) in cash and cash equivalents and restricted cash | 637,042 | (536,370) | 798,230 |
Cash and cash equivalents and restricted cash, beginning of period | 737,140 | 1,273,510 | 475,280 |
Cash and cash equivalents and restricted cash, end of period | 1,374,182 | 737,140 | 1,273,510 |
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | |||
Cash and cash equivalents, beginning of period | 451,025 | 991,471 | 472,246 |
Restricted cash, beginning of period | 286,115 | 282,039 | 3,034 |
Cash and cash equivalents and restricted cash, beginning of period | 737,140 | 1,273,510 | 475,280 |
Cash and cash equivalents, end of period | 1,057,487 | 451,025 | 991,471 |
Restricted cash, end of period | $ 316,695 | $ 286,115 | $ 282,039 |
Restricted cash, Balance Sheet location | Restricted cash held in trust | Restricted cash held in trust | Restricted cash held in trust |
Cash and cash equivalents and restricted cash, end of period | $ 1,374,182 | $ 737,140 | $ 1,273,510 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) shares in Thousands, $ in Thousands | Preferred Shares Mandatory Convertible Preferred Shares | Common Shares Adjusted Balance | Common Shares | Capital in Excess of Par Value Impact of adoption of ASU 2020-06 | Capital in Excess of Par Value Adjusted Balance | Capital in Excess of Par Value | Accumulated Other Comprehensive Income Adjusted Balance | Accumulated Other Comprehensive Income | Retained Earnings (Accumulated Loss) Impact of adoption of ASU 2020-06 | Retained Earnings (Accumulated Loss) Adjusted Balance | Retained Earnings (Accumulated Loss) | Treasury Shares Adjusted Balance | Treasury Shares | Non-controlling Interest Adjusted Balance | Non-controlling Interest | Impact of adoption of ASU 2020-06 | Adjusted Balance | Total |
Beginning Balance at Dec. 31, 2020 | $ 5 | $ 419 | $ 3,423,935 | $ (11,124) | $ (946,100) | $ (1,315,751) | $ 105,424 | $ 1,256,808 | ||||||||||
Beginning Balance (in shares) at Dec. 31, 2020 | 4,870 | 8,383 | ||||||||||||||||
Increase (Decrease) in Equity | ||||||||||||||||||
Net income (loss) | (569,272) | 25,582 | (543,690) | |||||||||||||||
PSU distribution equivalent rights | (75) | (75) | ||||||||||||||||
Dividends declared to preferred shareholders | (3,653) | (3,653) | ||||||||||||||||
Issuance of warrants on common shares | (2,719) | (2,719) | ||||||||||||||||
Share issuance | $ 7 | 12,865 | 12,872 | |||||||||||||||
Share issuance (in shares) | 148 | |||||||||||||||||
Other comprehensive income (loss), net of tax | 490 | 490 | ||||||||||||||||
Share-based compensation | 19,361 | 19,361 | ||||||||||||||||
Conversion of preferred shares | $ (5) | |||||||||||||||||
Conversion of preferred shares (in shares) | (4,870) | |||||||||||||||||
Conversion of preferred shares | $ 34 | (34) | (5) | |||||||||||||||
Conversion of preferred shares (in shares) | 668 | |||||||||||||||||
Noncontrolling interest contributions (distributions) | (3,793) | (3,793) | ||||||||||||||||
Contributions and other from noncontrolling interest | 6,298 | 6,298 | ||||||||||||||||
IPO SPAC warrants to public holders, net of issuance cost | 13,480 | 13,480 | ||||||||||||||||
Deemed dividends to SPAC public shareholders | (6,724) | (18,709) | (25,433) | |||||||||||||||
Accrued distribution on redeemable noncontrolling interest in subsidiary | (9,445) | (9,445) | ||||||||||||||||
Other | $ 6 | (1,564) | (1,558) | |||||||||||||||
Other (in shares) | 96 | |||||||||||||||||
Ending Balance at Dec. 31, 2021 | $ 466 | $ 466 | $ (81,881) | $ 3,372,682 | 3,454,563 | $ (10,634) | (10,634) | $ 60,701 | $ (1,477,287) | (1,537,988) | $ (1,315,751) | (1,315,751) | $ 128,282 | 128,282 | $ (21,180) | $ 697,758 | 718,938 | |
Ending Balance (in shares) at Dec. 31, 2021 | 9,295 | 9,295 | ||||||||||||||||
Increase (Decrease) in Equity | ||||||||||||||||||
Net income (loss) | (350,261) | 43,043 | (307,218) | |||||||||||||||
Warrant Exercise, net of tax | $ 52 | 152,451 | 152,503 | |||||||||||||||
Warrant exercise, net of tax (in shares) | 1,051 | |||||||||||||||||
Other comprehensive income (loss), net of tax | (404) | (404) | ||||||||||||||||
Share-based compensation | 15,828 | 15,828 | ||||||||||||||||
Noncontrolling interest contributions (distributions) | (3,490) | (3,490) | ||||||||||||||||
Deemed dividends to SPAC public shareholders | (3,321) | (3,321) | ||||||||||||||||
Accrued distribution on redeemable noncontrolling interest in subsidiary | (10,324) | (10,324) | ||||||||||||||||
Other | $ 7 | (4,588) | 40 | (4,541) | ||||||||||||||
Other (in shares) | 159 | |||||||||||||||||
Ending Balance at Dec. 31, 2022 | $ 525 | 3,536,373 | (11,038) | (1,841,153) | (1,315,751) | 167,835 | 536,791 | |||||||||||
Ending Balance (in shares) at Dec. 31, 2022 | 10,505 | |||||||||||||||||
Increase (Decrease) in Equity | ||||||||||||||||||
Net income (loss) | (11,784) | 61,688 | 49,904 | |||||||||||||||
Other comprehensive income (loss), net of tax | 206 | 206 | ||||||||||||||||
Vesting of restricted stock awards, net of shares withheld for employee taxes | $ (2) | (7,077) | (7,079) | |||||||||||||||
Vesting of restricted stock awards, net of shares withheld for employee taxes (in shares) | (50) | |||||||||||||||||
Share-based compensation | $ 8 | 15,839 | 15,847 | |||||||||||||||
Share-based compensation (in shares) | 101 | |||||||||||||||||
Noncontrolling interest contributions (distributions) | 5,237 | 5,237 | ||||||||||||||||
IPO SPAC warrants to public holders, net of issuance cost | 3,426 | 3,426 | ||||||||||||||||
Deemed dividends to SPAC public shareholders | (8,638) | (22,790) | (31,428) | |||||||||||||||
Accrued distribution on redeemable noncontrolling interest in subsidiary | (29,824) | (29,824) | ||||||||||||||||
Other | $ (4) | (6,239) | 5,173 | (1,070) | ||||||||||||||
Ending Balance at Dec. 31, 2023 | $ 527 | $ 3,538,896 | $ (10,832) | $ (1,886,226) | $ (1,315,751) | $ 215,396 | $ 542,010 | |||||||||||
Ending Balance (in shares) at Dec. 31, 2023 | 10,556 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) | 12 Months Ended |
Dec. 31, 2021 $ / shares | |
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | |
Dividends declared to preferred shareholders (in dollars per share) | $ 0.75 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2023 | |
Nature of Operations | |
Nature of Operations | Note 1 Nature of Operations Unless the context requires otherwise, references in this annual report to “we,” “us,” “our,” “the Company,” or “Nabors” mean Nabors Industries Ltd., together with our subsidiaries. References in this annual 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. We provide performance tools, directional drilling services, tubular running services and innovative technologies for our own rig fleet and those operated by third parties. In addition, we manufacture advanced drilling equipment and provide drilling rig instrumentation. Also, we have a portfolio of technologies designed to drive energy efficiency and emissions reductions for both ourselves and third-party customers. With operations in over 15 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 December 31, 2023 included: ● 291 actively marketed rigs for land-based drilling operations in the United States and various countries throughout the world; and ● 28 actively marketed rigs for offshore platform drilling operations in the United States and multiple international markets. The short- and long-term implications are difficult to predict at this time. We continue to actively monitor this dynamic situation. As of December 31, 2023, of our property, plant and equipment, net was located in Russia. For the year ending December 31, 2023, of our operating revenues was from operations in Russia. We currently have no assets or operations in Ukraine. The consolidated financial statements and related footnotes are presented in accordance with U.S. GAAP. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 2 Summary of Significant Accounting Policies Principles of Consolidation Our consolidated financial statements include the accounts of Nabors, as well as all majority owned and non-majority owned subsidiaries required to be consolidated under U.S. GAAP. All significant intercompany accounts and transactions are eliminated in consolidation. We consolidate variable interest entities (“VIE’s”) 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 determination of the primary beneficiary of a VIE considers all relationships between us and 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 13—Joint Ventures. Also, as of December 31, 2023, we are the co-sponsor of a special purpose acquisition company (SPAC) and have determined it is a VIE. Nabors is the primary beneficiary of the SPAC as we have the power to direct activities, the right to receive benefits and the obligation to absorb losses. Therefore, the SPAC has been consolidated. See Note 21—Special Purpose Acquisition Companies. Reclassification of Prior Year Presentation Certain prior year amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the reported results of operations. Cash and Cash Equivalents Cash and cash equivalents include demand deposits and various other short-term investments with original maturities of three months or less. Short-term Investments Short-term investments consist primarily of held-to maturity debt securities which we have the intent and ability to hold to maturity regardless of changes in market conditions, liquidity needs or changes in general economic conditions. These debt securities are held at cost which approximates the maturity value. Also, Equity securities are included and are stated at fair value with any changes in fair value recognized in investment income (loss) in our consolidated statements of income (loss). 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 costs methods and includes the cost of materials, labor and manufacturing overhead. Inventory, which is presented net of reserves of $23.9 million and $23.0 million as of December 31, 2023 and 2022, respectively, included the following: December 31, 2023 2022 (In thousands) Raw materials $ 144,886 $ 118,351 Work-in-progress 2,912 6,121 Finished goods — 3,475 $ 147,798 $ 127,947 Property, Plant and Equipment Property, plant and equipment, including renewals and betterments, are stated at cost, while maintenance and repairs are expensed currently. Interest costs applicable to the construction of qualifying assets are capitalized as a component of the cost of such assets. We provide for the depreciation of our drilling rigs using the units-of-production method. For each day a rig is operating, we depreciate it over an approximate 4,927 8,030 Depreciation on our buildings, oilfield hauling and mobile equipment, and other machinery and equipment is computed using the straight-line method over the estimated useful life of the asset after provision for salvage value (buildings—10 to 30 years; oilfield hauling and mobile equipment and other machinery and equipment—3 to 10 years). Amortization of capitalized leases is included in depreciation and amortization expense. Upon retirement or other disposal of fixed assets, the cost and related accumulated depreciation are removed from the respective property, plant and equipment accounts and any gains or losses are included in our consolidated statements of income (loss). 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. Significant and unanticipated changes to the assumptions could result in future impairments. A significantly prolonged period of lower oil and natural gas prices could adversely affect the demand for and prices of our services, which could result in future impairment charges. As the determination of whether impairment charges should be recorded on our long-lived assets is subject to significant management judgment, and an impairment of these assets could result in a material charge on our consolidated statements of income (loss), management believes that accounting estimates related to impairment of long-lived assets are critical. For an asset classified as held for sale, we consider the asset impaired when its carrying amount exceeds fair value less its cost to sell. Fair value is determined in the same manner as a long-lived asset that is held and used. Litigation and Insurance Reserves We estimate our reserves related to litigation and insurance based on the facts and circumstances specific to the litigation and insurance claims and our past experience with similar claims. We maintain actuarially determined accruals in our consolidated balance sheets to cover self-insurance retentions. See Note 15—Commitments and Contingencies regarding self-insurance accruals. We estimate the range of our liability related to pending litigation when we believe the amount and range of loss can reasonably 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. Revenue Recognition We recognize revenues and costs on daywork contracts daily as the work progresses over the contract term. For certain contracts, we receive lump sum payments for the mobilization of rigs and other drilling equipment. We defer revenue related to mobilization periods and recognize the revenue over the term of the related drilling contract. Costs incurred related to a mobilization period for which a contract is secured are deferred and recognized over the term of the related drilling contract. Costs incurred to relocate rigs and other drilling equipment to areas in which a contract has not been secured are expensed as incurred. We defer recognition of revenue on amounts received from customers for prepayment of services until those services are provided. We recognize revenue for top drives and other capital equipment we manufacture upon transfer of control, which generally occurs when the product has been shipped to the customer. We recognize, as operating revenue, proceeds from business interruption insurance claims in the period that the claim is realizable. Proceeds from casualty insurance settlements in excess of the carrying value of damaged assets are recognized in other, net in our consolidated statement of income (loss) in the period that the applicable proof of loss documentation is received. Proceeds from casualty insurance settlements that are expected to be less than the carrying value of damaged assets are recognized at the time the loss is incurred and recorded in other, net in our consolidated statement of income (loss). We recognize reimbursements received for out of pocket expenses incurred as revenues and account for out of pocket expenses as direct costs. Research and Engineering Research and engineering expenses are expensed as incurred and include costs associated with the research and development of new products and services and costs associated with sustaining engineering of existing products and services. Income Taxes We are a Bermuda exempted company and are not subject to income taxes in Bermuda. On December 18, 2023, Bermuda enacted a 15% corporate income tax regime (the “Bermuda CIT”) that applies to Bermuda businesses that are part of multinational enterprise groups with annual revenue of €750 million or more and is effective for tax years beginning on or after January 1, 2025. We have provided for income taxes based on the tax laws and rates in effect in the countries where we operate and earn income. The income taxes in these jurisdictions vary substantially. Our worldwide effective tax rate for financial statement purposes will continue to fluctuate from year to year due to changes in the geographic mix of pre-tax earnings. We recognize increases to our tax reserves for uncertain tax positions along with interest and penalties as an increase to other long-term liabilities. For U.S. and other jurisdictional income tax purposes, we have net operating loss carryforwards and other tax attributes that we are required to assess quarterly for potential valuation allowances. We consider the sufficiency of existing temporary differences and expected future earnings levels in determining the amount, if any, of valuation allowance required against such carryforwards and against deferred tax assets. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the balance sheet date and the amounts of revenues and expenses recognized during the reporting period. Actual results could differ from such estimates. Areas where critical accounting estimates are made by management include: ● depreciation of property, plant and equipment; ● impairment of long-lived assets; ● impairment of goodwill and intangible assets; ● income taxes; ● litigation and self-insurance reserves; and ● fair value of assets acquired and liabilities assumed. Recent Accounting Pronouncements Adopted In August 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-06, Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40 Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) for fiscal years beginning after December 15, 2023. We are currently evaluating the impact of this accounting standard update on our financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures, We consider the applicability and impact of all ASUs. We assessed ASUs not listed above and determined that they either were not applicable or do not have a material impact on our financial statements. |
Impairments and Other Charges
Impairments and Other Charges | 12 Months Ended |
Dec. 31, 2023 | |
Impairments and Other Charges | |
Impairments and Other Charges | Note 3 Impairments and Other Charges The components of impairments and other charges are provided below: Year Ended December 31, 2021 (in thousands) Canada Drilling $ 58,545 International Drilling 215 Rig Technologies 418 Severance and transaction related costs 6,228 Other assets 1,325 Total $ 66,731 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 an 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. In determining an asset’s fair value, management considers a number of factors, such as estimated future cash flows from the asset, appraisals, and current market value analysis. 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 year ended December 31, 2021 Canada Drilling During 2021, we recognized an impairment of $58.5 million related to the sale of the Canada Drilling assets in July 2021. See Note 5—Acquisitions and Dispositions Severance and transaction related costs During 2021, we recognized charges of $6.2 million due to severance and reorganization costs from ongoing cost cutting and consolidation measures that we enacted in response to the challenging industry environment. |
Accounts Receivable Purchase an
Accounts Receivable Purchase and Sales Agreement | 12 Months Ended |
Dec. 31, 2023 | |
Accounts Receivable Purchase and Sales Agreements | |
Accounts Receivable Purchase and Sales Agreements | Note 4 Accounts Receivable Purchase and Sales Agreements The Company has entered into an accounts receivable sales agreement (the “A/R Sales Agreement”) and an accounts receivable purchase agreement (the “A/R Purchase Agreement,” and, together with the A/R Sales Agreement, the “A/R Agreements”). As part of the A/R Agreements, the Company continuously sells designated eligible pools of receivables as they are originated by it and certain U.S. subsidiaries to a separate, bankruptcy-remote, special purpose entity (“SPE”) pursuant to the A/R Sales Agreement. Pursuant to the A/R Purchase Agreement, the SPE in turn sells, transfers, conveys and assigns to unaffiliated third party financial institutions (the “Purchasers”) all the rights, title and interest in and to its pool of eligible receivables (the “Eligible Receivables”). The sale of the Eligible Receivables qualifies for sale accounting treatment in accordance with ASC 860 – Transfers and Servicing. During the period of this program, cash receipts from the Purchasers at the time of the sale are classified as operating activities in our consolidated statement of cash flows and the associated receivables are derecognized from the Company’s consolidated balance sheet at the time of the sale. The remaining receivables held by the SPE were pledged to secure the collectability of the sold Eligible Receivables. Subsequent collections on the pledged receivables, which have not been sold, will be classified as operating cash flows in our consolidated statement of cash flows at the time of collection. The amount of receivables pledged as collateral as of December 31, 2023 and December 31, 2022 is approximately $67.0 million and $62.3 million, respectively. In July 2021, we entered into the First Amendment to the A/R Purchase Agreement (the “First Amendment”), which reduced the commitments of the third-party financial institutions (the “Purchasers”) from $250 million to $150 million and extended the term of the agreements by two years, to August 13, 2023. In June 2022, we entered into the Third Amendment to the A/R Purchase Agreement which extended the term of the A/R Purchase Agreement to August 13, 2024 and increased the commitments of the Purchasers under the A/R Purchase Agreement from $150 million to $250 million. Subject to Purchaser approval, the commitments of the Purchasers may be increased to $300 million. The amount available for sale to the Purchasers under the A/R Purchase Agreement 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 December 31, 2023, approximately $145.0 million had been sold to and as yet uncollected by the Purchasers. As of December 31, 2022, the corresponding number was approximately $208.0 million. |
Acquisitions and Dispositions
Acquisitions and Dispositions | 12 Months Ended |
Dec. 31, 2023 | |
Acquisitions and Dispositions | |
Acquisitions and Dispositions | Note 5 Acquisitions and Dispositions In July 2021, we closed on the sale of our Canada Drilling segment assets for approximately $94.0 million. These assets included our fleet of land-based drilling rigs and related equipment and property. This transaction did not represent a strategic shift in our operations and will not have a major effect on our operations and financial results going forward. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Measurements | |
Fair Value Measurements | Note 6 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 Our financial assets that are accounted for at fair value on a recurring basis as of December 31, 2023 and 2022 consisted of restricted cash held in trust and short-term investments. During 2023, there were no transfers of our financial assets between Level 1 and Level 2 measures. Our financial assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. As of December 31, 2023 and 2022, our restricted cash held in trust was carried at fair market value and totaled $315.5 million and $284.8 million, respectively, and our short-term investments was primarily held at cost and totaled $12.7 million and $1.3 million, respectively. Both accounts consisted of Level 1 measurements. No material Level 2 or Level 3 measurements existed for our financial assets for any of the periods presented. Our financial liabilities that are accounted for at fair value on a recurring basis as of December 31, 2023 consisted of the Warrants and are included in other long-term liabilities in the accompanying consolidated financial statements. The Warrants were carried at fair market value using their trading price and totaled $25.9 million and $80.9 million as of December 31, 2023 and 2022, respectively. Nonrecurring Fair Value Measurements We apply fair value measurements to our nonfinancial assets and liabilities measured on a nonrecurring basis, which consist of measurements primarily to assets held-for-sale, goodwill, intangible assets, equity method investments 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 generally include Level 3 inputs, but could include Leve 1 and 2 inputs. Fair Value of Debt Instruments We estimate the fair value of our debt 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, thus a Level 2 measurement. The carrying and fair values of these liabilities were as follows: As of December 31, 2023 2022 Effective Effective Interest Carrying Fair Interest Carrying Fair Rate Value Value Rate Value Value (In thousands) 5.10% senior notes due September 2023 — % $ — $ — 5.46 % $ 52,004 $ 51,354 0.75% senior exchangeable notes due January 2024 0.84 % 155,529 154,989 0.97 % 177,005 164,898 5.75% senior notes due February 2025 5.97 % 474,092 474,120 6.02 % 474,092 454,773 9.00% senior priority guaranteed notes due February 2025 — % — — 9.00 % 209,384 213,507 7.25% senior guaranteed notes due January 2026 7.53 % 555,902 535,328 7.52 % 557,902 529,432 7.375% senior priority guaranteed notes due May 2027 7.72 % 700,000 687,526 7.74 % 700,000 686,686 7.50% senior guaranteed notes due January 2028 7.69 % 389,609 334,090 7.70 % 389,609 354,400 1.75% senior exchangeable notes due June 2029 2.26 % 250,000 185,383 — % — — 9.125% senior priority guaranteed notes due January 2030 9.40 % 650,000 656,871 — % — — $ 3,175,132 $ 3,028,307 $ 2,559,996 $ 2,455,050 Less: current portion 629,621 — Less: deferred financing costs 33,992 22,456 $ 2,511,519 $ 2,537,540 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. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Compensation | |
Share-Based Compensation | Note 7 Share-Based Compensation Total share-based compensation expense, which includes stock options and restricted shares, was $15.8 million, $15.8 million and $19.2 million for 2023, 2022 and 2021, respectively. Compensation expense related to awards of restricted shares totaled $15.8 million, $15.8 million and $19.1 million 2023, 2022 and 2021, respectively, which is included in general and administrative and research and engineering expenses in our consolidated statements of income (loss). Share-based compensation expense has been allocated to our various reportable segments. See Note 18—Segment Information. In addition to the time-based restricted stock share-based awards, historically we have provided two types of performance share awards: the first, based on our performance measured against pre-determined performance metrics (“Performance Shares”) and the second, based on market conditions measured against a predetermined peer group (“TSR Shares”). In 2020, under the Amended and Restated 2016 Stock Plan, the company introduced new Performance-Based Restricted Stock Units (“PSUs”) to move away from Performance Shares. PSUs are granted at the beginning of the Stock Option Plans As of December 31, 2023, we had several stock plans under which options to purchase our common shares could be granted to key officers, directors and managerial employees of Nabors and its subsidiaries. Options granted under the plans have fair market value on the date of the grant. Options granted under the plans generally are exercisable in varying cumulative periodic installments after one year. In the case of certain key executives and directors, options granted may vest immediately on the grant date. Options granted under the plans expire ten years from the date of grant. There are approximately 0.4 million common shares available for issuance in the form of either restricted shares or stock options, under these plans as of December 31, 2023. The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model which uses assumptions for the risk-free interest rate, volatility, dividend yield and the expected term of the options. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for a period equal to the expected term of the option. Expected volatilities are based on implied volatilities from traded options on Nabors’ common shares, historical volatility of Nabors’ common shares, and other factors. We use historical data to estimate the expected term of the options and employee terminations within the option-pricing model; separate groups of employees that have similar historical exercise behavior are considered separately for valuation purposes. The expected term of the options represents the period of time that the options granted are expected to be outstanding. Stock option transactions under our various stock-based employee compensation plans are presented below: Weighted- Weighted- Average Average Remaining Aggregate Exercise Contractual Intrinsic Options Shares Price Term Value (In thousands, except exercise price and term) Options outstanding as of December 31, 2022 16 $ 391.76 Expired — 817.91 Options outstanding as of December 31, 2023 16 $ 362.76 4.22 years $ — Options exercisable as of December 31, 2023 16 $ 362.76 4.22 years $ — During 2021, we awarded options vesting immediately to purchase 963 of our common stock to certain of our directors. During 2022, we awarded options vesting immediately to purchase 1,056 of our common stock to certain of our directors. No stock options were awarded during 2023. There were no unvested options outstanding at the end of 2021, 2022 or 2023. The fair value of stock options granted during 2022 and 2021 was calculated using the Black-Scholes option pricing model and the following weighted-average assumptions: 2022 2021 Weighted average fair value of options granted $ 111.23 $ 72.69 Weighted average risk free interest rate 3.69% 0.72% Dividend yield 0.00% 0.00% Volatility (1) 111.5% 102.5% Expected life (in years) 4.0 4.0 (1) Expected volatilities are based on implied volatilities from publicly traded options to purchase Nabors’ common shares, historical volatility of Nabors’ common shares and other factors. There were no options exercised during 2023, 2022 or 2021. The total fair value of options that vested during the years ended December 31, 2022 and 2021 was $0.2 million and $0.1 million, respectively. Restricted Shares Our stock plans allow grants of restricted shares. Restricted shares are issued on the grant date but cannot be sold or transferred. Restricted share values are based on stock value at grant date. Restricted shares vest in varying periodic installments ranging up to A summary of our restricted shares as of December 31, 2023, and the changes during the year then ended, is presented below: Weighted-Average Grant-Date Fair Restricted shares Outstanding Value (In thousands, except fair value) Unvested as of December 31, 2022 163 $ 126.26 Granted 103 160.49 Vested (62) 135.53 Forfeited (19) 142.76 Unvested as of December 31, 2023 185 $ 140.56 During 2023, 2022 and 2021, we awarded 103,465, 112,203 and 82,722 restricted shares, respectively, to our employees and directors. These awards had an aggregate value at their date of grant of $16.6 million, $14.8 million and $8.7 million, respectively, and were scheduled to vest over a period of up to four years. The fair value of restricted shares that vested during 2023, 2022 and 2021 was $8.4 million, $6.3 million and $2.5 million, respectively. As of December 31, 2023, there was $18.5 million of total future compensation cost related to unvested restricted share awards that are expected to vest. That cost is expected to be recognized over a weighted-average period of 2.52 years. Restricted Shares Based on Performance Conditions The Performance Share awards granted were based upon achievement of specific financial or operational objectives. During January 2020, we awarded The following table sets forth information regarding outstanding restricted shares based on performance conditions as of December 31, 2023: Weighted-Average Grant-Date Fair Performance based restricted shares Outstanding Value (In thousands, except fair value) Outstanding as of December 31, 2022 20 $ 148.00 Vested (20) 148.00 Outstanding as of December 31, 2023 — $ — During 2023, 2022 and 2021, we granted awards to certain of our executive officers covering a total of 60,633, 49,065 and 95,902 PSUs, respectively. The number of earned PSUs that ultimately vest over The following table sets forth information regarding outstanding PSUs based on performance conditions as of December 31, 2023: Weighted-Average Grant-Date Fair Restricted Stock Units Outstanding Value (In thousands, except fair value) Outstanding as of December 31, 2022 113 $ 85.31 Granted 61 121.61 Vested (59) 96.85 Forfeited (12) 146.36 Outstanding as of December 31, 2023 103 $ 92.84 Restricted Shares Based on Market Conditions During 2023, 2022 and 2021, we granted awards for 29,621, 47,622 and 61,997 TSR Shares, respectively, which are equity classified awards and will vest on our performance compared to our peer group over a three The grant date fair value of these awards was based on a Monte Carlo model, using the following assumptions: Year Ended December 31, 2023 2022 2021 Risk free interest rate 4.13% 1.03% 0.18% Expected volatility 94.00% 92.00% 108.00% Closing stock price at grant date $ 154.87 $ 81.09 $ 60.62 Expected term (in years) 3.0 3.0 3.0 The following table sets forth information regarding outstanding restricted shares based on market conditions as of December 31, 2023: Weighted-Average Grant-Date Fair Market based restricted shares Outstanding Value (In thousands, except fair value) Outstanding as of December 31, 2022 133 $ 53.03 Granted 30 92.35 Vested (13) 111.00 Forfeited (73) 45.58 Outstanding as of December 31, 2023 77 $ 65.62 As of December 31, 2023, there was $2.6 million of total future compensation cost related to unvested TSR Share awards. The TSR Shares will amortize over a weighted average remaining period of |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment | |
Property, Plant and Equipment | Note 8 Property, Plant and Equipment The major components of our property, plant and equipment are as follows: December 31, 2023 2022 (In thousands) Land $ 32,074 $ 22,672 Buildings 140,330 134,063 Drilling rigs and related equipment 11,959,989 11,722,404 Oilfield hauling and mobile equipment 233,920 233,708 Other machinery and equipment 237,567 216,233 $ 12,603,880 $ 12,329,080 Less: accumulated depreciation and amortization (9,705,152) (9,302,980) $ 2,898,728 $ 3,026,100 Depreciation expense included in depreciation and amortization expense in our consolidated statements of income (loss) totaled $644.9 million, $663.1 million and $689.2 million during 2023, 2022 and 2021, respectively. Repair and maintenance expense included in direct costs in our consolidated statements of income (loss) totaled $228.2 million, $202.5 million and $153.9 million during 2023, 2022 and 2021, respectively. |
Financial Instruments and Risk
Financial Instruments and Risk Concentration | 12 Months Ended |
Dec. 31, 2023 | |
Financial Instruments and Risk Concentration | |
Financial Instruments and Risk Concentration | Note 9 Financial Instruments and Risk Concentration We may be exposed to certain market risks arising from the use of financial instruments in the ordinary course of business. These risks arise primarily as a result of potential changes in the fair market value of financial instruments that would result from adverse fluctuations in foreign currency exchange rates, credit risk, interest rates, and marketable and non-marketable security prices as discussed below. Foreign Currency Risk We operate in a number of international areas and are involved in transactions denominated in currencies other than U.S. dollars, which exposes us to foreign exchange rate risk or foreign currency devaluation risk. The most significant exposures arise in connection with our operations in Latin America, which usually are substantially unhedged. We have experienced certain risks specific to our operations in Argentina. Argentina’s economy is currently considered highly inflationary under U.S. GAAP, which is defined as cumulative inflation rates exceeding 100% in the most recent three-year period based on inflation data published by the respective governments. At various times, we utilize local currency borrowings (foreign-currency-denominated debt), the payment structure of customer contracts and foreign exchange contracts to selectively hedge our exposure to exchange rate fluctuations in connection with monetary assets, liabilities, cash flows and commitments denominated in certain foreign currencies. A foreign exchange contract is a foreign currency transaction, defined as an agreement to exchange different currencies at a given future date and at a specified rate. Credit Risk Our financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash equivalents, short-term and long-term investments and accounts receivable. Cash equivalents such as deposits and temporary cash investments are held by major banks or investment firms. Our short-term and long-term investments are managed within established guidelines that limit the amounts that may be invested with any one issuer and provide guidance as to issuer credit quality. We believe that the credit risk in our cash and investment portfolio is minimized as a result of the mix of our investments. In addition, our trade receivables are with a variety of U.S., international and non-U.S. national oil and gas companies. As of December 31, 2023, approximately 29% and 18% of our net accounts receivable balance was related to our operations in Saudi Arabia and Mexico, respectively. Management considers this credit risk to be limited due to the financial resources of our customers in these countries. We perform ongoing credit evaluations of our customers, and we generally do not require material collateral. We do occasionally require prepayment of amounts from customers whose creditworthiness is in question prior to providing services to them. We maintain reserves for potential credit losses, and these losses historically have been within management’s expectations. Interest Rate and Marketable and Non-marketable Security Price Risk Our financial instruments that are potentially sensitive to changes in interest rates include our floating rate debt instruments comprised of the 2022 Credit Agreement and our fixed rate debt securities comprised of our We may utilize derivative financial instruments that are intended to manage our exposure to interest rate risks. The use of derivative financial instruments could expose us to further credit risk and market risk. Credit risk in this context is the failure of a counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty would owe us, which can create credit risk for us. When the fair value of a derivative contract is negative, we would owe the counterparty, and therefore, we would not be exposed to credit risk. We attempt to minimize credit risk in derivative instruments by entering into transactions with major financial institutions that have a significant asset base. Market risk related to derivatives is the adverse effect on the value of a financial instrument that results from changes in interest rates. We try to manage market risk associated with interest-rate contracts by establishing and monitoring parameters that limit the type and degree of market risk that we undertake. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt | |
Debt | Note 10 Debt Debt consisted of the following: As of December 31, 2023 2022 (In thousands) 5.10% senior notes due September 2023 (1) $ — $ 52,004 0.75% senior exchangeable notes due January 2024 (2) 155,529 177,005 5.75% senior notes due February 2025 (2) 474,092 474,092 9.00% senior priority guaranteed notes due February 2025 — 209,384 7.25% senior guaranteed notes due January 2026 555,902 557,902 7.375% senior priority guaranteed notes due May 2027 700,000 700,000 7.50% senior guaranteed notes due January 2028 389,609 389,609 1.75% senior exchangeable notes due June 2029 250,000 — 9.125% senior priority guaranteed notes due January 2030 650,000 — $ 3,175,132 $ 2,559,996 Less: current portion 629,621 — Less: deferred financing costs 33,992 22,456 Long-term debt $ 2,511,519 $ 2,537,540 (1) The 5.10% senior notes due September 2023 were classified as long-term as of December 31, 2022 because we had the ability and intent to refinance this obligation utilizing our 2022 Credit Agreement. (2) Remaining outstanding aggregate principal balance repaid in January 2024. As of December 31, 2023, the principal amount and maturities of our primary debt for each of the five years following 2023 and thereafter are as follows: Paid at Maturity (In thousands) 2024 $ 629,621 (1) 2025 — 2026 555,902 (2) 2027 700,000 (3) 2028 389,609 (4) Thereafter 900,000 (5) $ 3,175,132 (1) Represents our 0.75% senior exchangeable notes due January 2024 and our 5.75% senior notes due February 2025 as a redemption notice for the 5.75% senior notes due February 2025 was issued December 14, 2023. (2) Represents our 7.25% senior notes due January 2026 and our 2022 credit agreement. (3) Represents our 7.375% senior priority guaranteed notes due May 2027. (4) Represents our 7.50% senior notes due January 2028. (5) Represents our 1.75% senior exchangeable notes due June 2029 and our 9.125% senior priority guaranteed notes due January 2030. Nabors Delaware’s fixed rate 5.75% senior unsecured notes are fully and unconditionally guaranteed by us. The notes rank equal in right of payment to all Nabors Delaware’s existing and future senior unsubordinated debt. The notes rank senior in right of payment to all Nabors Delaware’s existing and future senior subordinated and subordinated debt, if any. Our guarantee of the notes is unsecured and ranks equal in right of payment to all our unsecured and unsubordinated indebtedness from time to time outstanding. The notes are subject to redemption by Nabors Delaware, in whole or in part, at any time generally at a redemption price equal to the greater of (i) 100% of the principal amount of the notes then outstanding to be redeemed; or (ii) the sum of the present values of the remaining scheduled payments of principal and interest, determined in the manner set forth in the applicable indenture. In the event of a change in control triggering event, as defined in the indenture, the holders of notes may require Nabors Delaware to purchase all or any part of each note in cash equal to 101% of the principal amount plus accrued and unpaid interest, if any, to the date of purchase, except to the extent Nabors Delaware has previously exercised its right to redeem the notes. The notes have customary covenants, including limitations on the incurrence of liens and entering into sale and leaseback transactions as well as customary events of default. During 2023, 2022 and 2021, we repurchased $232.9 million, $99.3 million and $105.9 million aggregate principal amount of outstanding Nabors Delaware’s notes for approximately $238.8 million, $98.5 million and $93.8 million, respectively, in cash, reflecting principal, accrued and unpaid interest. In June 2023, the remaining balance of the million was repaid. In connection with our repurchases, during 2023, 2022 and 2021, we recognized a net gain of approximately million, respectively. Senior Notes due 2025. 9.125% Senior Priority Guaranteed Notes due January 2030 In November 2023, Nabors issued $650.0 million in aggregate principal amount of 9.125% senior priority guaranteed notes, which are fully and unconditionally guaranteed by Nabors and certain of Nabors’ indirect wholly- owned subsidiaries. Interest on the notes is payable January 31 and July 31 of each year. As of December 31, 2023, there was 1.75% Senior Exchangeable Notes Due June 2029 In February 2023, Nabors Delaware issued $250.0 million in aggregate principal amount of 1.75% senior exchangeable notes due 2029, which are fully and unconditionally guaranteed by Nabors. The notes bear interest at a rate of 1.75% per year payable semiannually on June 15 and December 15 of each year, beginning on December 15, 2023. As of December 31, 2023, there was $250.0 million in aggregate principal amount that remained outstanding. The 1.75% exchangeable notes are exchangeable, only under certain conditions, at an exchange rate of 4.7056 common shares of Nabors per $1,000 principal amount of exchangeable notes (equivalent to an exchange price of approximately $212.51 per common share). Upon any exchange, Nabors will settle its exchange obligation in cash, common shares of Nabors, or a combination of cash and common shares, at our election. The 1.75% exchangeable notes are redeemable, in whole or in part, at our option at any time on or after June 15, 2026 only if the last reported sale price per common shares exceed 130% of the exchange price on (1) each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the trading days immediately before the date of the related redemption notice; and (2) the trading day immediately before we send such notice, at a cash redemption price equal to 100% of the principal amount to be redeemed plus accrued and unpaid interest. If a “fundamental change” (as defined in the Indenture) occurs, subject to certain conditions, holders may require us to repurchase for cash any or all of their 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 December 31, 2023, there was approximately million in aggregate principal amount that remained outstanding which was paid at maturity on January 16, 2024. 2022 Credit Agreement On January 21, 2022, Nabors Delaware entered into a revolving credit agreement between Nabors Delaware, the guarantors from time to time party thereto, the issuing banks (the “Issuing Banks”) and other lenders party thereto (the “Lenders”) and Citibank, N.A., as administrative agent (the “2022 Credit Agreement”). Under the 2022 Credit Agreement, the Lenders have committed to provide to Nabors Delaware up to an aggregate principal amount at any time outstanding not in excess of $350.0 million (with an accordion feature for an additional $100.0 million, subject to lender approval) under a secured revolving credit facility, including sub-facilities provided by certain of the Lenders for letters of credit in an aggregate principal amount at any time outstanding not in excess of $100.0 million. The 2022 Credit Agreement permits the incurrence of additional indebtedness secured by liens, which may include liens on the collateral securing the facility, in an amount up to $150.0 million as well as a grower basket for term loans in an amount not to exceed $100.0 million secured by liens not on the collateral. The Company is required to maintain an interest coverage ratio (EBITDA/interest expense) of of the consolidated property, plant and equipment of the Company. The facility matures on the earlier of (a) January 21, 2026 and (b) to the extent any principal amount of Nabors Delaware’s existing th Additionally, the Company is subject to covenants, which are subject to certain exceptions and include, among others, (a) a covenant restricting our ability to incur liens (subject to the additional liens basket of up to $150.0 million), (b) a covenant restricting its ability to pay dividends or make other distributions with respect to its capital stock and to repurchase certain indebtedness and (c) a covenant restricting the ability of the Company’s subsidiaries to incur debt (subject to the grower basket of up to $100.0 million). The agreement also includes a collateral coverage requirement that the collateral rig fair value is to be no less than the collateral coverage threshold, as defined in the agreement. This requirement includes an independent appraisal report to be delivered every 6 months following the closing date. As of December 31, 2023, we had no borrowings and $47.8 million of letters of credit outstanding under our 2022 Credit Agreement. The weighted average interest rate on borrowings under the 2022 Credit Agreement at December 31, 2023 was . In order to make any future borrowings under the 2022 Credit Agreement, 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 2022 Credit Agreement. We expect to remain in compliance with all covenants under the 2022 Credit Agreement 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. Letters of Credit We had 8 letter-of-credit facilities with various banks as of December 31, 2023. Availability and borrowings under our letter-of-credit facilities are as follows: December 31, 2023 (In thousands) Credit available $ 313,667 Less: Letters of credit outstanding, inclusive of financial and performance guarantees 114,937 Remaining availability $ 198,730 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes | |
Income Taxes | Note 11 Income Taxes Income (loss) from continuing operations before income taxes consisted of the following: Year Ended December 31, United States and Other Jurisdictions 2023 2022 2021 (In thousands) United States $ 215,306 $ (19,820) $ (153,243) Other jurisdictions (86,182) (225,862) (334,846) Income (loss) from continuing operations before income taxes $ 129,124 $ (245,682) $ (488,089) Income tax expense (benefit) from continuing operations consisted of the following: Year Ended December 31, 2023 2022 2021 (In thousands) Current: U.S. federal $ 4,783 $ 1,320 $ (1,905) Outside the U.S. 55,769 48,837 60,318 State 2,787 4,042 7,914 $ 63,339 $ 54,199 $ 66,327 Deferred: U.S. federal $ 16,886 $ 681 $ (4,669) Outside the U.S. (1,898) (241) (3,608) State 893 6,897 (2,429) $ 15,881 $ 7,337 $ (10,706) Income tax expense (benefit) $ 79,220 $ 61,536 $ 55,621 A reconciliation of our statutory tax rate to our worldwide effective tax rate consists of the following: Year Ended December 31, 2023 2022 2021 (In thousands) Income tax provision at statutory (Bermuda rate of 0%) $ — $ — $ — Taxes (benefit) on U.S. and other international earnings (losses) at greater than the Bermuda rate 74,581 25,685 23,395 Increase (decrease) in valuation allowance 22,533 43,060 8,276 Impact of foreign exchange rates (28,484) (32,108) — Prior year adjustments to provision (3,513) 15,959 — Uncertain tax positions 5,854 2,080 26,266 Audit settlements 12,464 — — State income taxes (benefit) 3,838 266 (2,316) Other (8,053) 6,594 — Income tax expense (benefit) $ 79,220 $ 61,536 $ 55,621 Effective tax rate 61.4% (25.0%) (11.4%) Our worldwide income tax expense for 2023 was $79.2 million compared to $61.5 million for 2022. The increase in tax expense was primarily attributable to changes in the operating income and the geographic mix of our pre-tax earnings (losses) in the jurisdictions in which we operate. The components of our net deferred taxes consisted of the following: December 31, 2023 2022 (In thousands) Deferred tax assets: Net operating loss carryforwards $ 4,004,602 $ 3,878,344 Tax credit and other attribute carryforwards 86,896 84,812 Accrued interest 19,311 13,302 Property, plant and equipment — 20,431 Other 106,520 100,316 Subtotal 4,217,329 4,097,205 Valuation allowance (3,962,200) (3,839,885) Deferred tax assets: $ 255,129 $ 257,320 Deferred tax liabilities: Property, plant and equipment $ 15,181 $ — Other 2,443 2,858 Deferred tax liability $ 17,624 $ 2,858 Net deferred tax assets (liabilities) $ 237,505 $ 254,462 Balance Sheet Summary: Net noncurrent deferred tax asset $ 238,871 $ 257,320 Net noncurrent deferred tax liability (1,366) (2,858) Net deferred tax asset (liability) $ 237,505 $ 254,462 As of December 31, 2023, we had federal, state, and foreign net operating loss (“NOL”) carryforwards of approximately $588.9 million, $788.1 million and $16.1 billion, respectively. Of those amounts, $7.9 billion will expire between 2024 and 2044 if not utilized. We provide a valuation allowance against NOL carryforwards in various tax jurisdictions based on our consideration of existing temporary differences and expected future earning levels in those jurisdictions. A valuation allowance of approximately $3.9 billion as of December 31, 2023 has been recognized related to certain NOL carryforwards as we believe it is more likely than not that the benefit of these NOL carryforwards will not be realized. The following is a reconciliation of our uncertain tax positions: 2023 2022 2021 (In thousands) Balance as of January 1 $ 45,452 $ 45,988 $ 26,704 Additions for tax positions of prior years 2,207 806 19,760 Reductions for tax positions for prior years (256) (1,342) (476) Settlements (13,387) — — Balance as of December 31 $ 34,016 $ 45,452 $ 45,988 If the unrecognized tax benefits of $34.0 million are realized, this would favorably impact the worldwide effective tax rate. As of December 31, 2023, 2022 and 2021, we had approximately $11.1 million, $17.0 million and $14.4 million, respectively, of interest and penalties related to uncertain tax positions. During 2023, 2022 and 2021, we accrued and recognized estimated interest and penalties related to uncertain tax positions of approximately $(6.0) million, $2.6 million and $6.9 million, respectively. During the fourth quarter of 2023, we settled tax audits for which we had accrued an uncertain tax position of $13.4 million and interest and penalties of $9.9 million. Upon settlement, we reversed the uncertain tax position accrual and related interest and penalties. We include potential interest and penalties related to uncertain tax positions within our global operations in the income tax expense (benefit) line item in our consolidated statements of income (loss). It is reasonably possible that our existing liabilities related to our reserve for uncertain tax positions may increase or decrease in the next twelve months primarily due to the completion of open audits or the expiration of statutes of limitation. However, we cannot reasonably estimate a range of changes in our existing liabilities due to various uncertainties, such as the unresolved nature of various audits. We conduct business globally and, as a result, we file numerous income tax returns in the U.S. and non-U.S. jurisdictions. In the normal course of business we are subject to examination by taxing authorities throughout the world, including major jurisdictions such as Colombia, Mexico, Saudi Arabia, Norway and the United States. We are no longer subject to U.S. Federal income tax examinations for years before 2020 and non-U.S. income tax examinations for years before 2007. On August 16, 2022, the Inflation Reduction Act (“IRA”) was signed into law in the United States. Among other provisions, the IRA includes a 15% corporate minimum tax rate applied to certain large corporations and a 1% excise tax on corporate stock repurchases made after December 31, 2022. We do not expect the IRA to have a material impact to the Company. The Organization Economic Co-operation and Development (“OECD”) introduced Base Erosion and Profit Shifting (“BEPS”) Pillar 2 rules that impose a global minimum tax rate of 15%. Numerous countries, including European Union member states, have enacted or are expected to enact legislation to be effective as early as January 1, 2024, with general implementation of a global minimum tax by January 1, 2025. There are no impacts to our consolidated financial statements for the year ended December 31, 2023. On December 18, 2023, Bermuda enacted a 15% corporate income tax regime (the “Bermuda CIT”) that applies to Bermuda businesses that are part of multinational enterprise groups with annual revenue of €750 million or more and is effective for tax years beginning on or after January 1, 2025. As a result of the Bermuda CIT, the Company’s exemption from Bermuda corporate income taxes will cease in 2025. With the enactment of the Bermuda CIT in 2023, the Company underwent an analysis to determine the tax impacts to its consolidated financial statements for the year ended December 31, 2023. Bermuda CIT allows for a beginning net operating loss balance related to the five years preceding the effective date of Bermuda CIT. We have recorded a deferred tax asset of $171.9 million for the Bermuda net operating losses generated from 2020 through 2023 with an offsetting valuation allowance of $171.9 million. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Shareholders' Equity | |
Shareholders' Equity | Note 12 Shareholders’ Equity Common shares Our authorized share capital consists of 57.0 million shares of which 32.0 million are common shares, par value $0.05 per share, and 25.0 million are preferred shares, par value $0.001 per share. The preferred shares are issuable in one or more classes or series, full, limited or no voting rights, designations, preferences, special rights, qualifications, limitations and restrictions, as may be determined by the Board. On July 19, 2021, we issued 147,974 shares of our common stock, valued at approximately $12.9 million, in connection with the purchase of certain development stage technologies in the energy transition space. Of the shares issued, During 2022, we issued 1.1 million common shares in connection with the Company’s common stock warrants. See below for discussion on the Warrants. During 2023, in connection with acquisition of certain intellectual property rights, we agreed to issue shares of our common stock to the seller, Nanogen. The purchase consideration included additional shares, subject to meeting certain earnout targets. Such targets were not met by the seller and, consequently, the shares were forfeited. The forfeited shares are held by a Nabors subsidiary, are presented as treasury stock in the accompanying balance sheet, and are reflected in the From time to time, treasury shares may be reissued subject to applicable securities law limitations. When shares are reissued, we use the weighted-average-cost method for determining cost. The difference between the cost of the shares and the issuance price is added to or deducted from our capital in excess of par value account. No shares have been reissued during 2023, 2022 or 2021. Common stock warrants On May 27, 2021, the Board declared a distribution of warrants to purchase its common shares (the “Warrants”) to holders of the Company’s common shares. Holders of Nabors common shares received two million Warrants on June 11, 2021 to shareholders of record as of June 4, 2021. As of December 31, 2023, 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”). Payment of the exercise price may be in (a) cash or (b)“Designated Notes,” which the Company initially defined as (x) Nabors Delaware’s (i) 5.10% Notes due 2023, (ii) 0.75% Exchangeable Notes due 2024, (iii) 5.75% Notes due 2025 and (y) the Company’s 7.25% Notes due 2026 0.75% Exchangeable Notes due 2024 were removed from the list of Designated Notes and in June 2023, the remaining balance of the 5.10% Notes due 2023 was fully redeemed. of the market price of the common shares. The Warrants expire on June 11, 2026, but the expiration date may be accelerated at any time by the Company upon The 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 due to the level of market activity. As of December 31, 2023, On December 31, 2023 and 2022, the fair value of the Warrants was approximately million, respectively. During the years ended December 31, 2023, 2022 and 2021, approximately |
Joint Ventures
Joint Ventures | 12 Months Ended |
Dec. 31, 2023 | |
Joint Ventures | |
Joint Ventures | Note 13 Joint Ventures During 2016, we entered into an agreement with Saudi Aramco to form a new joint venture, SANAD, to own, manage and operate onshore drilling rigs in the Kingdom of Saudi Arabia. SANAD, which is equally owned by Saudi Aramco and Nabors, began operations during the fourth quarter of 2017. 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. As of December 31, 2023 and December 31, 2022, the amount included in redeemable noncontrolling interest was $423.6 million and $393.8 million, respectively. 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 2022, SANAD settled approximately $20.6 million of the accrued interest by making cash payments to each partner for their respective amounts. The assets and liabilities included in the condensed balance sheet below are (a) 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 (b) liabilities for which creditors do not have recourse to other assets of Nabors. The condensed balance sheet of SANAD, as included in our consolidated balance sheet, is presented below. December 31, 2023 2022 (In thousands) Assets: Cash and cash equivalents $ 281,329 $ 302,949 Accounts receivable 86,461 92,922 Other current assets 12,461 14,750 Property, plant and equipment, net 646,215 489,358 Other long-term assets 25,099 21,278 Total assets $ 1,051,565 $ 921,257 Liabilities: Accounts payable $ 88,432 $ 62,409 Accrued liabilities 10,301 6,639 Other liabilities 38,524 36,312 Total liabilities $ 137,257 $ 105,360 |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related-Party Transactions | |
Related-Party Transactions | Note 14 Related-Party Transactions Nabors and certain current and former key employees, including Mr. Petrello, entered into split-dollar life insurance agreements, pursuant to which we pay a portion of the premiums under life insurance policies with respect to these individuals and, in some instances, members of their families. These agreements provide that we are reimbursed for the premium payments upon the occurrence of specified events, including the death of an insured individual. Any recovery of premiums paid by Nabors could be limited to the cash surrender value of the policies under certain circumstances. As such, the values of these policies are recorded at their respective cash surrender values in our consolidated balance sheets. We have made premium payments to date totaling $6.6 million related to these policies. The cash surrender value of these policies of approximately $4.9 million and $5.1 million is included in other long-term assets in our consolidated balance sheets as of December 31, 2023 and 2022. Under the Sarbanes-Oxley Act of 2002, the payment of premiums by Nabors under the agreements could be deemed to be prohibited loans by us to these individuals. Consequently, we have paid no premiums related to our agreements with these individuals since the adoption of the Sarbanes-Oxley Act. In November 2021, Nabors Energy Transition Corporation (“NETC”), a special purpose acquisition company, commonly referred to as a “SPAC”, co-sponsored by Nabors and Greens Road Energy LLC, completed its initial public offering of 27,600,000 units. Greens Road Energy LLC is owned by certain members of Nabors’ board of directors and management team. Simultaneously with the closing of the IPO, NETC completed the private sale of an aggregate of 13,730,000 warrants with a fair value of $1 per warrant, of which 6,288,500 warrants were purchased by related parties including certain Nabors board members, officers and employees, with the remainder being purchased by a subsidiary of Nabors. In December 2023, NETC completed a business combination with Vast Renewables Limited (“Vast”). NETC merged with and into a wholly owned subsidiary of Vast and one of our independent directors and an executive joined the board of directors of Vast. See Note 21—Special Purpose Acquisition Companies for additional information. In July 2023, Nabors Energy Transition Corporation II (“NETC II”) co-sponsored by Nabors and Greens Road Energy II LLC, completed its initial public offering of 30,500,000 units. Greens Road Energy II LLC is owned by certain members of Nabors’ management team and board members. Simultaneously with the closing of the IPO, NETC II completed the private sale of an aggregate of 9,540,000 warrants with a fair value of $1 per warrant, of which 4,348,000 warrants were purchased by related parties including certain Nabors officers, directors and employees, with the remainder being purchased by a subsidiary of Nabors. See Note 21—Special Purpose Acquisition Companies for additional information. In the ordinary course of business, we enter into various rig leases, rig transportation and related oilfield services agreements with our unconsolidated affiliates at market prices. Historically, these transactions primarily related to our former equity method investment in Nabors Arabia. During 2017, our joint venture with Saudi Aramco, SANAD, began operations. As such, we have included transactions with Saudi Aramco effective as of the commencement of operations of SANAD. See Note 13—Joint Ventures. Revenues from business transactions with these affiliated entities totaled In addition, Mr. Crane, one of our independent directors, is Chairman and Chief Executive Officer of Crane Capital Group Inc. (“CCG”), an investment company that indirectly owns a majority interest in several operating companies, some of which have provided services to us in the ordinary course of business, including international logistics and electricity. During 2023, 2022 and 2021, we incurred costs for these services of $13.2 million, $11.4 million and $5.8 million, respectively. We had accounts payable to these CCG-related companies of $2.0 million and $2.7 million as of December 31, 2023 and 2022. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 15 Commitments and Contingencies Commitments Under the joint venture agreement with Saudi Aramco, the agreement requires us to backstop our share of the joint venture’s obligations to purchase the first 25 drilling rigs in the event that there is insufficient cash in the joint venture or third party financing available. Although we currently anticipate that the future rig purchase needs will be met by cash flows from the joint venture and/or third party financing, no assurance can be given that the joint venture will not require us to fund our backstop. Leases Nabors and its subsidiaries occupy various facilities and lease certain equipment under various lease agreements. Rental expense relating to operating leases with terms greater than 30 days amounted to $17.2 million, $15.0 million and $9.3 million for the years ended December 31, 2023, 2022 and 2021, respectively. See Note 20—Leases for more information on the minimum rental commitments under non-cancelable operating leases. 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 and tax credits, 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 December 31, 2023 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, which again overturned the appeals court’s decision. The case was moved back to the court of appeals, which, once again, reinstated the verdict, failing to abide by the Supreme Court’s ruling. Accordingly, we are appealing once more to the Supreme Court to try to get a final ruling on the matter. 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. 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 Agreements (see Note 4—Accounts Receivable Purchase and Sales Agreements) 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 2024 2025 2026 Thereafter Total (In thousands) Financial standby letters of credit and other financial surety instruments $ 34,011 61 9,057 4,109 $ 47,238 |
Earnings (Losses) Per Share
Earnings (Losses) Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings (Losses) Per Share | |
Earnings (Losses) Per Share | Note 16 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 and the if-converted method for the 1.75% senior exchangeable notes due June 2029 as the instrument contains a provision for share settlement. A reconciliation of the numerators and denominators of the basic and diluted earnings (losses) per share computations is as follows: Year Ended December 31, 2023 2022 2021 (In thousands, except per share amounts) BASIC EPS: Net income (loss) (numerator): Income (loss), net of tax $ 49,904 $ (307,218) $ (543,710) Less: net (income) loss attributable to noncontrolling interest (61,688) (43,043) (25,582) Less: deemed dividends to SPAC public shareholders (8,638) — — Less: accrued distribution on redeemable noncontrolling interest in subsidiary (29,824) (10,324) (9,445) Less: preferred stock dividends — — (3,653) Numerator for basic earnings per share: Adjusted income (loss), net of tax - basic $ (50,246) $ (360,585) $ (582,390) Income (loss) from discontinued operations, net of tax $ — $ — $ 20 Weighted-average number of shares outstanding - basic 9,159 8,898 7,605 Earnings (losses) per share: Basic from continuing operations $ (5.49) $ (40.52) $ (76.58) Basic from discontinued operations — — — Total Basic $ (5.49) $ (40.52) $ (76.58) DILUTED EPS: Adjusted income (loss), net of tax - diluted $ (50,246) $ (360,585) $ (582,390) Income (loss) from discontinued operations, net of tax $ — $ — $ 20 Weighted-average number of shares outstanding - diluted 9,159 8,898 7,605 Earnings (losses) per share: Diluted from continuing operations $ (5.49) $ (40.52) $ (76.58) Diluted from discontinued operations — — — Total Diluted $ (5.49) $ (40.52) $ (76.58) For all periods presented, the computation of diluted earnings (losses) per share excludes shares related to outstanding stock options with exercise prices greater than the average market price of Nabors’ common shares and shares related to the outstanding Warrants when their exercise price or exchange price is higher 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 the stock options, such stock options or warrants 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, 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 and shares related to outstanding Warrants that were excluded from diluted earnings (losses) per share that would potentially dilute earnings per share in the future were as follows (in thousands): Year Ended December 31, 2023 2022 2021 (In thousands) Potentially dilutive securities excluded as anti-dilutive 3,381 3,369 4,436 Additionally for the year ended December 31, 2023, we excluded 1.2 million common shares from the computation of diluted shares related to the conversion of the 1.75% senior exchangeable notes due June 2029, because their effect would be anti-dilutive under the if-converted method, respectively. |
Supplemental Balance Sheet and
Supplemental Balance Sheet and Income Statement Information | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Balance Sheet, Income Statement and Cash Flow Information | |
Supplemental Balance Sheet, Income Statement and Cash Flow Information | Note 17 Supplemental Balance Sheet, Income Statement and Cash Flow Information Accrued liabilities include the following: December 31, 2023 2022 (In thousands) Accrued compensation $ 58,769 $ 64,926 Deferred revenue 29,233 37,808 Other taxes payable 41,322 39,621 Workers’ compensation liabilities 6,588 6,588 Interest payable 57,607 69,174 Litigation reserves 19,924 18,681 Other accrued liabilities 16,797 10,777 $ 230,240 $ 247,575 Investment income (loss) includes the following: Year Ended December 31, 2023 2022 2021 (In thousands) Interest and dividend income $ 45,900 $ 15,474 $ 1,527 Gains (losses) on marketable securities (2,080) (482) 30 $ 43,820 $ 14,992 $ 1,557 Other, net includes the following: Year Ended December 31, 2023 2022 2021 (In thousands) Losses on sales, disposals and involuntary conversions of long-lived assets $ 13,923 $ 7,350 $ 23,883 Purchase of technology — — 14,733 Energy transition initiatives 11,795 — — Warrant and derivative valuation (54,948) 95,876 — Litigation expenses and reserves 26,451 15,160 8,290 Foreign currency transaction losses 37,285 6,689 4,807 (Gain) on debt buyback (25,274) (4,597) (13,423) Other losses (gains) (9,958) 6,621 1,708 $ (726) $ 127,099 $ 39,998 The changes in accumulated other comprehensive income (loss), by component, include the following: Gains Defined (losses) on benefit Foreign cash flow pension plan currency hedges items items Total (In thousands (1) ) As of January 1, 2022 $ 2 $ (5,356) $ (5,280) $ (10,634) Other comprehensive income (loss) before reclassifications — 1,429 (1,993) (564) Amounts reclassified from accumulated other comprehensive income (loss) — 160 — 160 Net other comprehensive income (loss) — 1,589 (1,993) (404) As of December 31, 2022 $ 2 $ (3,767) $ (7,273) $ (11,038) (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, 2023 $ 2 $ (3,767) $ (7,273) $ (11,038) Other comprehensive income (loss) before reclassifications — — 45 45 Amounts reclassified from accumulated other comprehensive income (loss) — 161 — 161 Net other comprehensive income (loss) — 161 45 206 As of December 31, 2023 $ 2 $ (3,606) $ (7,228) $ (10,832) (1) All amounts are net of tax. The line items that were reclassified to net income include the following: Line item in consolidated statement of income (loss) Year Ended December 31, 2023 2022 2021 (In thousands) General and administrative expenses 209 208 208 Total income (loss) before income tax (209) (208) (208) Tax expense (benefit) (48) (48) (48) Reclassification adjustment for (gains)/ losses included in net income (loss) $ (161) $ (160) $ (160) Supplemental cash flow information includes the following: Year Ended December 31, 2023 2022 2021 (In thousands) Cash paid for income taxes (refunded), net $ 49,486 $ 29,191 $ 11,221 Cash paid for interest, net of capitalized interest $ 186,923 $ 189,755 $ 161,932 Net change in accounts payable related to capital expenditures $ 10,363 $ 8,615 $ 9,713 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Information | |
Segment Information | Note 18 Segment Information Our business consists of five reportable segments: U.S. Drilling, Canada Drilling, International Drilling, Drilling Solutions and Rig Technologies. The accounting policies of the segments are the same as those described in Note 2—Summary of Significant Accounting Policies. Inter-segment sales are recorded at cost or cost plus a profit margin. We evaluate the performance of our segments based on several criteria, including adjusted operating income (loss). The following table sets forth financial information with respect to our reportable operating segments: Year Ended December 31, 2023 2022 2021 (In thousands) Operating revenues: U.S. Drilling $ 1,207,629 $ 1,100,614 $ 669,656 Canada Drilling — — 39,336 International Drilling 1,345,249 1,199,282 1,043,197 Drilling Solutions 301,757 243,349 172,473 Rig Technologies 242,768 195,129 149,273 Other reconciling items (1) (91,422) (84,608) (56,387) Total $ 3,005,981 $ 2,653,766 $ 2,017,548 Year Ended December 31, 2023 2022 2021 (In thousands) Adjusted operating income (loss): (2) U.S. Drilling $ 262,353 $ 108,506 $ (76,492) Canada Drilling — — 2,893 International Drilling 40,868 (879) (40,117) Drilling Solutions 110,957 77,868 32,771 Rig Technologies 19,529 8,906 158 Total segment adjusted operating income (loss) $ 433,707 $ 194,401 $ (80,787) Year Ended December 31, 2023 2022 2021 (In thousands) Reconciliation of segment adjusted operating income (loss) to net income (loss): Net income (loss) $ 49,904 $ (307,218) $ (543,690) Income (loss) from discontinued operations, net of tax — — (20) Income (loss) from continuing operations, net of tax 49,904 (307,218) (543,710) Income tax expense (benefit) 79,220 61,536 55,621 Income (loss) before income taxes $ 129,124 $ (245,682) $ (488,089) Investment (income) loss (43,820) (14,992) (1,557) Interest expense 185,285 177,895 171,476 Impairments and other charges — — 66,731 Other, net (726) 127,099 39,998 Other reconciling items (3) 163,844 150,081 130,654 Total segment adjusted operating income (loss) (2) $ 433,707 $ 194,401 $ (80,787) Year Ended December 31, 2023 2022 2021 (In thousands) Depreciation and amortization U.S. Drilling $ 271,308 $ 311,759 $ 326,361 Canada Drilling — — 11,604 International Drilling 347,784 329,335 323,431 Drilling Solutions 18,634 20,829 26,660 Rig Technologies 7,864 5,794 8,191 Other reconciling items (3) (296) (2,645) (2,866) Total $ 645,294 $ 665,072 $ 693,381 Year Ended December 31, 2023 2022 2021 (In thousands) Capital expenditures: U.S. Drilling $ 136,311 $ 118,017 $ 53,875 Canada Drilling — — 2,938 International Drilling 357,609 222,099 173,078 Drilling Solutions 25,721 19,946 9,919 Rig Technologies 21,229 15,660 2,790 Other reconciling items (3) 12,038 5,765 1,089 Total $ 552,908 $ 381,487 $ 243,689 December 31, 2023 2022 (In thousands) Total assets: U.S. Drilling $ 1,239,765 $ 1,389,459 International Drilling 2,227,308 2,273,766 Drilling Solutions 78,472 63,652 Rig Technologies 239,167 207,345 Other reconciling items (3) 1,493,253 795,632 Total $ 5,277,965 $ 4,729,854 (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) is provided in the above table. (3) Represents the elimination of inter-segment transactions and unallocated corporate expenses, assets and capital expenditures. The following table sets forth financial information with respect to Nabors’ operations by geographic area based on the location of service provided: Year Ended December 31, 2023 2022 2021 (In thousands) Operating revenues U.S. $ 1,477,774 $ 1,323,531 $ 804,807 Outside the U.S. 1,528,207 1,330,235 1,212,741 $ 3,005,981 $ 2,653,766 $ 2,017,548 Property, plant and equipment, net: U.S. $ 1,304,686 $ 1,437,333 $ 1,648,622 Outside the U.S. 1,594,042 1,588,767 1,699,876 $ 2,898,728 $ 3,026,100 $ 3,348,498 During the years ended December 31, 2023, 2022 and 2021, $821.1 million, $712.8 million and $645.0 million of our consolidated operating revenue was from Saudi Arabia. No other individual country outside of the U.S. was material to our consolidated operating revenue during any of the three periods presented. One customer accounted for approximately 26%, 26% and 31% of our consolidated operating revenues during the years ended December 31, 2023, 2022 and 2021, respectively, and is included primarily in our International Drilling reportable segment. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2023 | |
Revenue Recognition | |
Revenue Recognition | Note 19 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 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: Year Ended December 31, 2023 U.S. Drilling Canada Drilling International Drilling Drilling Solutions Rig Technologies Other Total (In thousands) Lower 48 $ 1,052,274 $ — $ — $ 196,252 $ 121,958 $ — $ 1,370,484 U.S. Offshore Gulf of Mexico 118,218 — — 11,147 — — 129,365 Alaska 37,137 — — 1,733 — — 38,870 Canada — — — 1,522 7,270 — 8,792 Middle East & Asia — — 943,285 44,896 93,032 — 1,081,213 Latin America — — 341,470 44,422 11,162 — 397,054 Europe, Africa & CIS — — 60,494 1,785 9,346 — 71,625 Eliminations & other — — — — — (91,422) (91,422) Total $ 1,207,629 $ — $ 1,345,249 $ 301,757 $ 242,768 $ (91,422) $ 3,005,981 Year Ended December 31, 2022 U.S. Drilling Canada Drilling International Drilling Drilling Solutions Rig Technologies Other Total (In thousands) Lower 48 $ 913,932 $ — $ — $ 157,709 $ 111,197 $ — $ 1,182,838 U.S. Offshore Gulf of Mexico 122,536 — — 10,665 — — 133,201 Alaska 64,146 — — 1,734 — — 65,880 Canada — — — 1,521 5,726 — 7,247 Middle East & Asia — — 805,944 41,257 64,739 — 911,940 Latin America — — 309,320 29,515 1,503 — 340,338 Europe, Africa & CIS — — 84,018 948 11,964 — 96,930 Eliminations & other — — — — — (84,608) (84,608) Total $ 1,100,614 $ — $ 1,199,282 $ 243,349 $ 195,129 $ (84,608) $ 2,653,766 Year Ended December 31, 2021 U.S. Drilling Canada Drilling International Drilling Drilling Solutions Rig Technologies Other Total (In thousands) Lower 48 $ 512,880 $ — $ — $ 97,354 $ 69,250 $ — $ 679,484 U.S. Offshore Gulf of Mexico 128,323 — — 8,787 — — 137,110 Alaska 28,453 — — 753 59 — 29,265 Canada — 39,336 — 1,342 4,379 — 45,057 Middle East & Asia — — 706,267 40,492 60,319 — 807,078 Latin America — — 251,153 22,104 228 — 273,485 Europe, Africa & CIS — — 85,777 1,641 15,038 — 102,456 Eliminations & other — — — — — (56,387) (56,387) Total $ 669,656 $ 39,336 $ 1,043,197 $ 172,473 $ 149,273 $ (56,387) $ 2,017,548 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 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, 2022 $ 401.9 $ 23.6 $ 0.1 $ 29.2 $ 3.2 As of December 31, 2023 $ 397.1 $ 8.4 $ 3.0 $ 20.3 $ 2.0 Approximately 89% of the contract liability balance at the beginning of the period was recognized as revenue during 2023 and 11% is expected to be recognized in 2024 Additionally, 90% of the contract asset balance at the beginning of the period was recognized as expense during 2023 and 10% is expected to be recognized in 2024. 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. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases | |
Leases | Note 20 Leases Prior to January 1, 2019, we accounted for leases under ASC 840 and did not record any right of use asset or corresponding lease liability. We adopted ASC 842 using a modified retrospective approach with an effective date of January 1, 2019. As such, financial information for prior periods has not been adjusted and continues to be reported under ASC 840. Effective with the adoption of ASC 842, we have changed our accounting policy for leases as detailed below. We have evaluated the provisions of ASC 842, including certain practical expedients allowed. The significant practical expedients we adopted include the following: ● We elected the practical expedient to apply the transition approach as of the beginning of the period of adoption and not restate comparative periods; ● We elected to utilize the “ package of three” expedients, as defined in ASC 842, whereby we did not reassess whether contracts existing prior to the effective date contain leases, nor did we reassess lease classification determinations nor whether initial direct costs qualify for capitalization; ● We elected the practical expedient to not capitalize any leases with initial terms of twelve months or less on our condensed consolidated balance sheet; ● For all underlying classes of leased assets, we elected the practical expedient to not separate lease and non-lease components; and ● We elected the practical expedient to continue to account for land easements (also known as “rights of way”) that were not previously accounted for as leases consistent with prior accounting until such contracts are modified or replaced, at which time they would be assessed for lease classification under ASC 842. As of the date of implementation on January 1, 2019, the impact of the adoption of ASC 842 resulted in the recognition of a right of use asset Our leases primarily consist of office space and equipment used globally within our operations. We determine whether a contract is or contains a lease at inception of the contract based on answers to a series of questions that address whether an identified asset exists and whether we have the right to obtain substantially all the benefit of the assets and to control its use over the full term of the agreement. When available, we use the rate implicit in the lease to discount lease payments to present value; however, most of our leases do not provide a readily determinable implicit rate. Therefore, we must estimate our incremental borrowing rate using a credit notching approach to discount the lease payments based on information available at lease commencement. Certain of our lease agreements include options to extend and options to terminate the lease, which we do not include in our minimum lease terms unless management is reasonably certain to exercise. We do not separate lease and nonlease components of contracts. There are no material residual value guarantees nor any restrictions or covenants included in our lease agreements. Certain of our leases include provisions for variable payments. These variable payments are typically determined based on a measure of throughput or actual days or another measure of usage and are not included in the calculation of lease liabilities and right-of-use assets. Lease Position The table below presents the lease related assets and liabilities recorded on our condensed consolidated balance sheet: Year Ended December 31, 2023 2022 Classification on the Balance Sheet (In thousands) Assets Operating lease assets Other long-term assets $ 30,650 $ 34,504 Total lease assets $ 30,650 $ 34,504 Liabilities Current liabilities: Operating lease liabilities Current lease liabilities $ 5,423 $ 6,784 Noncurrent liabilities: Operating lease liabilities Other long-term liabilities $ 25,713 $ 27,785 Total lease liabilities $ 31,136 $ 34,569 Lease Costs The table below presents certain information related to the lease costs for our operating leases: Year Ended December 31, 2023 2022 2021 (In thousands) Operating lease cost 9,688 10,047 9,848 Short-term lease cost 150 596 593 Variable lease cost 39 115 143 Total lease cost $ 9,877 $ 10,758 $ 10,584 Other Information The table below presents supplemental cash flow information related to leases: Year Ended December 31, 2023 2022 2021 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 9,688 $ 10,047 $ 9,848 Lease Terms and Discount Rates The table below presents certain information related to the weighted average remaining lease terms and weighted average discount rates for our operating leases: Year Ended December 31, 2023 2022 Weighted-average remaining lease term - operating leases 6.44 6.96 Weighted-average discount rate - operating leases 6.82% 6.81% Undiscounted Cash Flows The table below reconciles the undiscounted cash flows for each of the first five years and the total remaining years to the operating lease liabilities recorded on the condensed consolidated balance sheet: December 31, 2023 (In thousands) 2024 $ 7,614 2025 7,044 2026 6,966 2027 5,518 2028 2,455 Thereafter 8,539 Total undiscounted lease liability 38,136 Less: amount of lease payments representing interest (7,000) Long-term lease obligations $ 31,136 |
Special Purpose Acquisition Com
Special Purpose Acquisition Companies | 12 Months Ended |
Dec. 31, 2023 | |
Special Purpose Acquisition Companies | |
Special Purpose Acquisition Companies | Note 21 Special Purpose Acquisition Companies As of December 31, 2023 Nabors is the co-sponsor of one SPAC. The SPAC is a consolidated VIE included in the accompanying consolidated financial statements under Restricted cash held in trust and Redeemable noncontrolling interest in subsidiary. The SPAC’s funds are held in an interest-bearing U.S. based trust account (“Trust Account”) and are invested in money market funds meeting certain conditions under Rule 2a-7 under the Investment Company Act, which invests only in direct U.S. government treasury obligations. The funds in the trust account will only be released to the SPAC upon completion by the SPAC of a business combination or in connection with redemptions of any of the redeemable common shares, except with respect to interest earned on the funds which may be withdrawn to pay the SPAC’s taxes. The company accounts for the non-controlling interest in the SPAC as subject to possible redemption in accordance with FASB ASC Topic 480 “ Distinguishing Liabilities from Equity .” The SPAC’s common stock features certain redemption rights, which are considered to be outside the company’s control and subject to occurrence of uncertain future events. Nabors will recognize any future changes in redemption value immediately as they occur – i.e., adjusting the carrying amount of the instrument to its current redemption amount at each reporting period. NETC In November 2021, NETC cosponsored by Nabors and Greens Road Energy LLC completed its’ initial public offering. Greens Road Energy LLC is owned by certain members of Nabors’ board of directors and management team. As part of the initial public offering of NETC and subsequent private placement warrant transactions, In December 2023, NETC and Vast completed the business combination. As a result, Nabors owns approximately 15% of Vast’s ordinary shares, 7.4 million warrants of Vast, which are exercisable for one whole share of Vast at a price of $11.50 per share (“Vast Warrants”), and is entitled to up to approximately 2.4 million ordinary shares of Vast that are eligible to be received by Nabors in three equal increments, if Vast stock price reaches $12.50, $15.00 and $17.50 (“Vast Earnout Shares”). Nabors also has two representatives on the board of Vast. As a result of our ownership percentage and board representation, Nabors has significant influence over Vast and will account for its investment in Vast as an equity method investment. Our equity method investment, the Vast Warrants and the Vast Earnout Shares, were all recorded at fair market value at the time of closing, and the financial statements of NETC were deconsolidated from the Nabors consolidated financial statements. The impact of this transaction and subsequent application of equity method of accounting for our investment in Vast, and the fair value accounting for the Vast Warrants and Vast Earnout Shares, was a net gain for the quarter ended December 31, 2023, of approximately $7.2 million, which is included in the accompanying consolidated income statement under Other, net. The Vast Warrants and Vast Earnout Shares will be marked to market on an ongoing basis. The following table summarizes NETC’s effects on changes in non-controlling interest subject to possible redemption. 2023 2022 (In thousands) Balance, beginning of year $ 284,841 $ 281,520 Net earnings 5,540 3,321 Nabors deemed dividends to SPAC public shareholders 3,055 — Noncontrolling interest deemed dividends to SPAC public shareholders 1,774 — Redemptions and distributions of Trust Account (295,210) — Balance as of December 31 $ — $ 284,841 NETC II In July 2023, NETC II co-sponsored by Nabors and Greens Road Energy II LLC, completed its initial public offering of 30,500,000 units at $10.00 per unit, generating gross proceeds of approximately $305.0 million. Greens Road Energy II LLC is owned by certain members of Nabors’ management team and board members. Simultaneously with the closing of the IPO, NETC II completed the private sale of an aggregate of million. Approximately $315.5 million of non-controlling interest subject to possible redemption is presented at full redemption value as temporary equity, outside of the stockholders’ equity section in the accompanying consolidated financial statements as of December 31, 2023. The following table summarizes NETC II’s effects on changes in non-controlling interest subject to possible redemption. 2023 (In thousands) Balance, beginning of year $ — Initial public offering 294,474 Net earnings 7,438 Nabors deemed dividends to SPAC public shareholders 5,583 Noncontrolling interest deemed dividends to SPAC public shareholders 7,993 Balance as of December 31 $ 315,488 |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2023 | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS Years Ended December 31, 2023, 2022 and 2021 Charged to Balance at Costs and Charged to Balance at Beginning Other Other End of of Period Deductions Accounts Deductions Period (In thousands) 2023 Allowance for doubtful accounts $ 52,895 (56) 56 (31) $ 52,864 Inventory reserve $ 23,038 864 — — $ 23,902 Valuation allowance on deferred tax assets $ 3,839,885 — 122,315 — $ 3,962,200 2022 Allowance for doubtful accounts $ 67,291 929 (192) (15,133) $ 52,895 Inventory reserve $ 21,931 1,107 — — $ 23,038 Valuation allowance on deferred tax assets $ 3,754,207 — 85,678 — $ 3,839,885 2021 Allowance for doubtful accounts $ 69,807 2,870 (393) (4,993) $ 67,291 Inventory reserve $ 23,477 392 418 (2,356) $ 21,931 Valuation allowance on deferred tax assets $ 3,616,880 — 137,327 — $ 3,754,207 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies | |
Principles of Consolidation | Principles of Consolidation Our consolidated financial statements include the accounts of Nabors, as well as all majority owned and non-majority owned subsidiaries required to be consolidated under U.S. GAAP. All significant intercompany accounts and transactions are eliminated in consolidation. We consolidate variable interest entities (“VIE’s”) 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 determination of the primary beneficiary of a VIE considers all relationships between us and 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 13—Joint Ventures. Also, as of December 31, 2023, we are the co-sponsor of a special purpose acquisition company (SPAC) and have determined it is a VIE. Nabors is the primary beneficiary of the SPAC as we have the power to direct activities, the right to receive benefits and the obligation to absorb losses. Therefore, the SPAC has been consolidated. See Note 21—Special Purpose Acquisition Companies. |
Reclassification of Prior Year Presentation | Reclassification of Prior Year Presentation Certain prior year amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the reported results of operations. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include demand deposits and various other short-term investments with original maturities of three months or less. |
Short-term Investments | Short-term Investments Short-term investments consist primarily of held-to maturity debt securities which we have the intent and ability to hold to maturity regardless of changes in market conditions, liquidity needs or changes in general economic conditions. These debt securities are held at cost which approximates the maturity value. Also, Equity securities are included and are stated at fair value with any changes in fair value recognized in investment income (loss) in our consolidated statements of income (loss). |
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 costs methods and includes the cost of materials, labor and manufacturing overhead. Inventory, which is presented net of reserves of $23.9 million and $23.0 million as of December 31, 2023 and 2022, respectively, included the following: December 31, 2023 2022 (In thousands) Raw materials $ 144,886 $ 118,351 Work-in-progress 2,912 6,121 Finished goods — 3,475 $ 147,798 $ 127,947 |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment, including renewals and betterments, are stated at cost, while maintenance and repairs are expensed currently. Interest costs applicable to the construction of qualifying assets are capitalized as a component of the cost of such assets. We provide for the depreciation of our drilling rigs using the units-of-production method. For each day a rig is operating, we depreciate it over an approximate 4,927 8,030 Depreciation on our buildings, oilfield hauling and mobile equipment, and other machinery and equipment is computed using the straight-line method over the estimated useful life of the asset after provision for salvage value (buildings—10 to 30 years; oilfield hauling and mobile equipment and other machinery and equipment—3 to 10 years). Amortization of capitalized leases is included in depreciation and amortization expense. Upon retirement or other disposal of fixed assets, the cost and related accumulated depreciation are removed from the respective property, plant and equipment accounts and any gains or losses are included in our consolidated statements of income (loss). 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. Significant and unanticipated changes to the assumptions could result in future impairments. A significantly prolonged period of lower oil and natural gas prices could adversely affect the demand for and prices of our services, which could result in future impairment charges. As the determination of whether impairment charges should be recorded on our long-lived assets is subject to significant management judgment, and an impairment of these assets could result in a material charge on our consolidated statements of income (loss), management believes that accounting estimates related to impairment of long-lived assets are critical. For an asset classified as held for sale, we consider the asset impaired when its carrying amount exceeds fair value less its cost to sell. Fair value is determined in the same manner as a long-lived asset that is held and used. |
Litigation and Insurance Reserves | Litigation and Insurance Reserves We estimate our reserves related to litigation and insurance based on the facts and circumstances specific to the litigation and insurance claims and our past experience with similar claims. We maintain actuarially determined accruals in our consolidated balance sheets to cover self-insurance retentions. See Note 15—Commitments and Contingencies regarding self-insurance accruals. We estimate the range of our liability related to pending litigation when we believe the amount and range of loss can reasonably 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. |
Revenue Recognition | Revenue Recognition We recognize revenues and costs on daywork contracts daily as the work progresses over the contract term. For certain contracts, we receive lump sum payments for the mobilization of rigs and other drilling equipment. We defer revenue related to mobilization periods and recognize the revenue over the term of the related drilling contract. Costs incurred related to a mobilization period for which a contract is secured are deferred and recognized over the term of the related drilling contract. Costs incurred to relocate rigs and other drilling equipment to areas in which a contract has not been secured are expensed as incurred. We defer recognition of revenue on amounts received from customers for prepayment of services until those services are provided. We recognize revenue for top drives and other capital equipment we manufacture upon transfer of control, which generally occurs when the product has been shipped to the customer. We recognize, as operating revenue, proceeds from business interruption insurance claims in the period that the claim is realizable. Proceeds from casualty insurance settlements in excess of the carrying value of damaged assets are recognized in other, net in our consolidated statement of income (loss) in the period that the applicable proof of loss documentation is received. Proceeds from casualty insurance settlements that are expected to be less than the carrying value of damaged assets are recognized at the time the loss is incurred and recorded in other, net in our consolidated statement of income (loss). We recognize reimbursements received for out of pocket expenses incurred as revenues and account for out of pocket expenses as direct costs. |
Research and Engineering | Research and Engineering Research and engineering expenses are expensed as incurred and include costs associated with the research and development of new products and services and costs associated with sustaining engineering of existing products and services. |
Income Taxes | Income Taxes We are a Bermuda exempted company and are not subject to income taxes in Bermuda. On December 18, 2023, Bermuda enacted a 15% corporate income tax regime (the “Bermuda CIT”) that applies to Bermuda businesses that are part of multinational enterprise groups with annual revenue of €750 million or more and is effective for tax years beginning on or after January 1, 2025. We have provided for income taxes based on the tax laws and rates in effect in the countries where we operate and earn income. The income taxes in these jurisdictions vary substantially. Our worldwide effective tax rate for financial statement purposes will continue to fluctuate from year to year due to changes in the geographic mix of pre-tax earnings. We recognize increases to our tax reserves for uncertain tax positions along with interest and penalties as an increase to other long-term liabilities. For U.S. and other jurisdictional income tax purposes, we have net operating loss carryforwards and other tax attributes that we are required to assess quarterly for potential valuation allowances. We consider the sufficiency of existing temporary differences and expected future earnings levels in determining the amount, if any, of valuation allowance required against such carryforwards and against deferred tax assets. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the balance sheet date and the amounts of revenues and expenses recognized during the reporting period. Actual results could differ from such estimates. Areas where critical accounting estimates are made by management include: ● depreciation of property, plant and equipment; ● impairment of long-lived assets; ● impairment of goodwill and intangible assets; ● income taxes; ● litigation and self-insurance reserves; and ● fair value of assets acquired and liabilities assumed. |
Recently Accounting Pronouncements Adopted | Recent Accounting Pronouncements Adopted In August 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-06, Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40 Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) for fiscal years beginning after December 15, 2023. We are currently evaluating the impact of this accounting standard update on our financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures, We consider the applicability and impact of all ASUs. We assessed ASUs not listed above and determined that they either were not applicable or do not have a material impact on our financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies | |
Schedule of inventory, net | Inventory is stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out or weighted-average costs methods and includes the cost of materials, labor and manufacturing overhead. Inventory, which is presented net of reserves of $23.9 million and $23.0 million as of December 31, 2023 and 2022, respectively, included the following: December 31, 2023 2022 (In thousands) Raw materials $ 144,886 $ 118,351 Work-in-progress 2,912 6,121 Finished goods — 3,475 $ 147,798 $ 127,947 |
Impairments and Other Charges (
Impairments and Other Charges (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Impairments and Other Charges | |
Schedule of impairments and other charges | Year Ended December 31, 2021 (in thousands) Canada Drilling $ 58,545 International Drilling 215 Rig Technologies 418 Severance and transaction related costs 6,228 Other assets 1,325 Total $ 66,731 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Measurements | |
Fair value of debt instruments | As of December 31, 2023 2022 Effective Effective Interest Carrying Fair Interest Carrying Fair Rate Value Value Rate Value Value (In thousands) 5.10% senior notes due September 2023 — % $ — $ — 5.46 % $ 52,004 $ 51,354 0.75% senior exchangeable notes due January 2024 0.84 % 155,529 154,989 0.97 % 177,005 164,898 5.75% senior notes due February 2025 5.97 % 474,092 474,120 6.02 % 474,092 454,773 9.00% senior priority guaranteed notes due February 2025 — % — — 9.00 % 209,384 213,507 7.25% senior guaranteed notes due January 2026 7.53 % 555,902 535,328 7.52 % 557,902 529,432 7.375% senior priority guaranteed notes due May 2027 7.72 % 700,000 687,526 7.74 % 700,000 686,686 7.50% senior guaranteed notes due January 2028 7.69 % 389,609 334,090 7.70 % 389,609 354,400 1.75% senior exchangeable notes due June 2029 2.26 % 250,000 185,383 — % — — 9.125% senior priority guaranteed notes due January 2030 9.40 % 650,000 656,871 — % — — $ 3,175,132 $ 3,028,307 $ 2,559,996 $ 2,455,050 Less: current portion 629,621 — Less: deferred financing costs 33,992 22,456 $ 2,511,519 $ 2,537,540 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Compensation | |
Schedule of stock option transactions | Weighted- Weighted- Average Average Remaining Aggregate Exercise Contractual Intrinsic Options Shares Price Term Value (In thousands, except exercise price and term) Options outstanding as of December 31, 2022 16 $ 391.76 Expired — 817.91 Options outstanding as of December 31, 2023 16 $ 362.76 4.22 years $ — Options exercisable as of December 31, 2023 16 $ 362.76 4.22 years $ — |
Schedule of valuation assumptions used to estimate the fair value of stock options | 2022 2021 Weighted average fair value of options granted $ 111.23 $ 72.69 Weighted average risk free interest rate 3.69% 0.72% Dividend yield 0.00% 0.00% Volatility (1) 111.5% 102.5% Expected life (in years) 4.0 4.0 (1) Expected volatilities are based on implied volatilities from publicly traded options to purchase Nabors’ common shares, historical volatility of Nabors’ common shares and other factors. |
Schedule of changes in unvested restricted stock | Weighted-Average Grant-Date Fair Restricted shares Outstanding Value (In thousands, except fair value) Unvested as of December 31, 2022 163 $ 126.26 Granted 103 160.49 Vested (62) 135.53 Forfeited (19) 142.76 Unvested as of December 31, 2023 185 $ 140.56 |
Performance based restricted shares | |
Share-Based Compensation | |
Schedule of changes in restricted shares | Weighted-Average Grant-Date Fair Performance based restricted shares Outstanding Value (In thousands, except fair value) Outstanding as of December 31, 2022 20 $ 148.00 Vested (20) 148.00 Outstanding as of December 31, 2023 — $ — |
Performance based restricted stock units | |
Share-Based Compensation | |
Schedule of changes in restricted shares | Weighted-Average Grant-Date Fair Restricted Stock Units Outstanding Value (In thousands, except fair value) Outstanding as of December 31, 2022 113 $ 85.31 Granted 61 121.61 Vested (59) 96.85 Forfeited (12) 146.36 Outstanding as of December 31, 2023 103 $ 92.84 |
Restricted shares based on market conditions | |
Share-Based Compensation | |
Schedule of valuation assumptions used to estimate the fair value of restricted stock | Year Ended December 31, 2023 2022 2021 Risk free interest rate 4.13% 1.03% 0.18% Expected volatility 94.00% 92.00% 108.00% Closing stock price at grant date $ 154.87 $ 81.09 $ 60.62 Expected term (in years) 3.0 3.0 3.0 |
Schedule of changes in restricted shares | Weighted-Average Grant-Date Fair Market based restricted shares Outstanding Value (In thousands, except fair value) Outstanding as of December 31, 2022 133 $ 53.03 Granted 30 92.35 Vested (13) 111.00 Forfeited (73) 45.58 Outstanding as of December 31, 2023 77 $ 65.62 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment | |
Schedule of major components of property, plant and equipment | December 31, 2023 2022 (In thousands) Land $ 32,074 $ 22,672 Buildings 140,330 134,063 Drilling rigs and related equipment 11,959,989 11,722,404 Oilfield hauling and mobile equipment 233,920 233,708 Other machinery and equipment 237,567 216,233 $ 12,603,880 $ 12,329,080 Less: accumulated depreciation and amortization (9,705,152) (9,302,980) $ 2,898,728 $ 3,026,100 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt | |
Schedule of debt | Debt consisted of the following: As of December 31, 2023 2022 (In thousands) 5.10% senior notes due September 2023 (1) $ — $ 52,004 0.75% senior exchangeable notes due January 2024 (2) 155,529 177,005 5.75% senior notes due February 2025 (2) 474,092 474,092 9.00% senior priority guaranteed notes due February 2025 — 209,384 7.25% senior guaranteed notes due January 2026 555,902 557,902 7.375% senior priority guaranteed notes due May 2027 700,000 700,000 7.50% senior guaranteed notes due January 2028 389,609 389,609 1.75% senior exchangeable notes due June 2029 250,000 — 9.125% senior priority guaranteed notes due January 2030 650,000 — $ 3,175,132 $ 2,559,996 Less: current portion 629,621 — Less: deferred financing costs 33,992 22,456 Long-term debt $ 2,511,519 $ 2,537,540 (1) The 5.10% senior notes due September 2023 were classified as long-term as of December 31, 2022 because we had the ability and intent to refinance this obligation utilizing our 2022 Credit Agreement. (2) Remaining outstanding aggregate principal balance repaid in January 2024. |
Schedule of principal amount and maturities of debt | As of December 31, 2023, the principal amount and maturities of our primary debt for each of the five years following 2023 and thereafter are as follows: Paid at Maturity (In thousands) 2024 $ 629,621 (1) 2025 — 2026 555,902 (2) 2027 700,000 (3) 2028 389,609 (4) Thereafter 900,000 (5) $ 3,175,132 (1) Represents our 0.75% senior exchangeable notes due January 2024 and our 5.75% senior notes due February 2025 as a redemption notice for the 5.75% senior notes due February 2025 was issued December 14, 2023. (2) Represents our 7.25% senior notes due January 2026 and our 2022 credit agreement. (3) Represents our 7.375% senior priority guaranteed notes due May 2027. (4) Represents our 7.50% senior notes due January 2028. (5) Represents our 1.75% senior exchangeable notes due June 2029 and our 9.125% senior priority guaranteed notes due January 2030. |
Schedule of letters of credit | We had 8 letter-of-credit facilities with various banks as of December 31, 2023. Availability and borrowings under our letter-of-credit facilities are as follows: December 31, 2023 (In thousands) Credit available $ 313,667 Less: Letters of credit outstanding, inclusive of financial and performance guarantees 114,937 Remaining availability $ 198,730 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes | |
Schedule of income (loss) from continuing operations before income taxes | Income (loss) from continuing operations before income taxes consisted of the following: Year Ended December 31, United States and Other Jurisdictions 2023 2022 2021 (In thousands) United States $ 215,306 $ (19,820) $ (153,243) Other jurisdictions (86,182) (225,862) (334,846) Income (loss) from continuing operations before income taxes $ 129,124 $ (245,682) $ (488,089) |
Schedule of income tax expense (benefit) from continuing operations | Income tax expense (benefit) from continuing operations consisted of the following: Year Ended December 31, 2023 2022 2021 (In thousands) Current: U.S. federal $ 4,783 $ 1,320 $ (1,905) Outside the U.S. 55,769 48,837 60,318 State 2,787 4,042 7,914 $ 63,339 $ 54,199 $ 66,327 Deferred: U.S. federal $ 16,886 $ 681 $ (4,669) Outside the U.S. (1,898) (241) (3,608) State 893 6,897 (2,429) $ 15,881 $ 7,337 $ (10,706) Income tax expense (benefit) $ 79,220 $ 61,536 $ 55,621 |
Reconciliation of the statutory rate to worldwide effective tax rate | A reconciliation of our statutory tax rate to our worldwide effective tax rate consists of the following: Year Ended December 31, 2023 2022 2021 (In thousands) Income tax provision at statutory (Bermuda rate of 0%) $ — $ — $ — Taxes (benefit) on U.S. and other international earnings (losses) at greater than the Bermuda rate 74,581 25,685 23,395 Increase (decrease) in valuation allowance 22,533 43,060 8,276 Impact of foreign exchange rates (28,484) (32,108) — Prior year adjustments to provision (3,513) 15,959 — Uncertain tax positions 5,854 2,080 26,266 Audit settlements 12,464 — — State income taxes (benefit) 3,838 266 (2,316) Other (8,053) 6,594 — Income tax expense (benefit) $ 79,220 $ 61,536 $ 55,621 Effective tax rate 61.4% (25.0%) (11.4%) |
Schedule of components of deferred taxes | The components of our net deferred taxes consisted of the following: December 31, 2023 2022 (In thousands) Deferred tax assets: Net operating loss carryforwards $ 4,004,602 $ 3,878,344 Tax credit and other attribute carryforwards 86,896 84,812 Accrued interest 19,311 13,302 Property, plant and equipment — 20,431 Other 106,520 100,316 Subtotal 4,217,329 4,097,205 Valuation allowance (3,962,200) (3,839,885) Deferred tax assets: $ 255,129 $ 257,320 Deferred tax liabilities: Property, plant and equipment $ 15,181 $ — Other 2,443 2,858 Deferred tax liability $ 17,624 $ 2,858 Net deferred tax assets (liabilities) $ 237,505 $ 254,462 Balance Sheet Summary: Net noncurrent deferred tax asset $ 238,871 $ 257,320 Net noncurrent deferred tax liability (1,366) (2,858) Net deferred tax asset (liability) $ 237,505 $ 254,462 |
Schedule of changes in uncertain tax positions | The following is a reconciliation of our uncertain tax positions: 2023 2022 2021 (In thousands) Balance as of January 1 $ 45,452 $ 45,988 $ 26,704 Additions for tax positions of prior years 2,207 806 19,760 Reductions for tax positions for prior years (256) (1,342) (476) Settlements (13,387) — — Balance as of December 31 $ 34,016 $ 45,452 $ 45,988 |
Joint Ventures (Tables)
Joint Ventures (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Joint Ventures | |
Schedule of condensed balance sheet of SANAD | December 31, 2023 2022 (In thousands) Assets: Cash and cash equivalents $ 281,329 $ 302,949 Accounts receivable 86,461 92,922 Other current assets 12,461 14,750 Property, plant and equipment, net 646,215 489,358 Other long-term assets 25,099 21,278 Total assets $ 1,051,565 $ 921,257 Liabilities: Accounts payable $ 88,432 $ 62,409 Accrued liabilities 10,301 6,639 Other liabilities 38,524 36,312 Total liabilities $ 137,257 $ 105,360 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies | |
Summary of financial guarantees maturity | Maximum Amount 2024 2025 2026 Thereafter Total (In thousands) Financial standby letters of credit and other financial surety instruments $ 34,011 61 9,057 4,109 $ 47,238 |
Earnings (Losses) Per Share (Ta
Earnings (Losses) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings (Losses) Per Share | |
Reconciliation of the numerators and denominators of the basic and diluted earnings (losses) per share computations | A reconciliation of the numerators and denominators of the basic and diluted earnings (losses) per share computations is as follows: Year Ended December 31, 2023 2022 2021 (In thousands, except per share amounts) BASIC EPS: Net income (loss) (numerator): Income (loss), net of tax $ 49,904 $ (307,218) $ (543,710) Less: net (income) loss attributable to noncontrolling interest (61,688) (43,043) (25,582) Less: deemed dividends to SPAC public shareholders (8,638) — — Less: accrued distribution on redeemable noncontrolling interest in subsidiary (29,824) (10,324) (9,445) Less: preferred stock dividends — — (3,653) Numerator for basic earnings per share: Adjusted income (loss), net of tax - basic $ (50,246) $ (360,585) $ (582,390) Income (loss) from discontinued operations, net of tax $ — $ — $ 20 Weighted-average number of shares outstanding - basic 9,159 8,898 7,605 Earnings (losses) per share: Basic from continuing operations $ (5.49) $ (40.52) $ (76.58) Basic from discontinued operations — — — Total Basic $ (5.49) $ (40.52) $ (76.58) DILUTED EPS: Adjusted income (loss), net of tax - diluted $ (50,246) $ (360,585) $ (582,390) Income (loss) from discontinued operations, net of tax $ — $ — $ 20 Weighted-average number of shares outstanding - diluted 9,159 8,898 7,605 Earnings (losses) per share: Diluted from continuing operations $ (5.49) $ (40.52) $ (76.58) Diluted from discontinued operations — — — Total Diluted $ (5.49) $ (40.52) $ (76.58) |
Potentially dilutive securities excluded as anti-dilutive | The average number of shares from options and shares related to outstanding Warrants that were excluded from diluted earnings (losses) per share that would potentially dilute earnings per share in the future were as follows (in thousands): Year Ended December 31, 2023 2022 2021 (In thousands) Potentially dilutive securities excluded as anti-dilutive 3,381 3,369 4,436 |
Supplemental Balance Sheet an_2
Supplemental Balance Sheet and Income Statement Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Balance Sheet, Income Statement and Cash Flow Information | |
Schedule of accrued liabilities | December 31, 2023 2022 (In thousands) Accrued compensation $ 58,769 $ 64,926 Deferred revenue 29,233 37,808 Other taxes payable 41,322 39,621 Workers’ compensation liabilities 6,588 6,588 Interest payable 57,607 69,174 Litigation reserves 19,924 18,681 Other accrued liabilities 16,797 10,777 $ 230,240 $ 247,575 |
Schedule of investment income (loss) | Year Ended December 31, 2023 2022 2021 (In thousands) Interest and dividend income $ 45,900 $ 15,474 $ 1,527 Gains (losses) on marketable securities (2,080) (482) 30 $ 43,820 $ 14,992 $ 1,557 |
Schedule of other, net | Year Ended December 31, 2023 2022 2021 (In thousands) Losses on sales, disposals and involuntary conversions of long-lived assets $ 13,923 $ 7,350 $ 23,883 Purchase of technology — — 14,733 Energy transition initiatives 11,795 — — Warrant and derivative valuation (54,948) 95,876 — Litigation expenses and reserves 26,451 15,160 8,290 Foreign currency transaction losses 37,285 6,689 4,807 (Gain) on debt buyback (25,274) (4,597) (13,423) Other losses (gains) (9,958) 6,621 1,708 $ (726) $ 127,099 $ 39,998 |
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, 2022 $ 2 $ (5,356) $ (5,280) $ (10,634) Other comprehensive income (loss) before reclassifications — 1,429 (1,993) (564) Amounts reclassified from accumulated other comprehensive income (loss) — 160 — 160 Net other comprehensive income (loss) — 1,589 (1,993) (404) As of December 31, 2022 $ 2 $ (3,767) $ (7,273) $ (11,038) (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, 2023 $ 2 $ (3,767) $ (7,273) $ (11,038) Other comprehensive income (loss) before reclassifications — — 45 45 Amounts reclassified from accumulated other comprehensive income (loss) — 161 — 161 Net other comprehensive income (loss) — 161 45 206 As of December 31, 2023 $ 2 $ (3,606) $ (7,228) $ (10,832) (1) All amounts are net of tax. |
Schedule of line items that were reclassified to net income | Line item in consolidated statement of income (loss) Year Ended December 31, 2023 2022 2021 (In thousands) General and administrative expenses 209 208 208 Total income (loss) before income tax (209) (208) (208) Tax expense (benefit) (48) (48) (48) Reclassification adjustment for (gains)/ losses included in net income (loss) $ (161) $ (160) $ (160) |
Supplemental cash flow information | Year Ended December 31, 2023 2022 2021 (In thousands) Cash paid for income taxes (refunded), net $ 49,486 $ 29,191 $ 11,221 Cash paid for interest, net of capitalized interest $ 186,923 $ 189,755 $ 161,932 Net change in accounts payable related to capital expenditures $ 10,363 $ 8,615 $ 9,713 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Information | |
Financial information with respect to operating segments | Year Ended December 31, 2023 2022 2021 (In thousands) Operating revenues: U.S. Drilling $ 1,207,629 $ 1,100,614 $ 669,656 Canada Drilling — — 39,336 International Drilling 1,345,249 1,199,282 1,043,197 Drilling Solutions 301,757 243,349 172,473 Rig Technologies 242,768 195,129 149,273 Other reconciling items (1) (91,422) (84,608) (56,387) Total $ 3,005,981 $ 2,653,766 $ 2,017,548 Year Ended December 31, 2023 2022 2021 (In thousands) Adjusted operating income (loss): (2) U.S. Drilling $ 262,353 $ 108,506 $ (76,492) Canada Drilling — — 2,893 International Drilling 40,868 (879) (40,117) Drilling Solutions 110,957 77,868 32,771 Rig Technologies 19,529 8,906 158 Total segment adjusted operating income (loss) $ 433,707 $ 194,401 $ (80,787) Year Ended December 31, 2023 2022 2021 (In thousands) Reconciliation of segment adjusted operating income (loss) to net income (loss): Net income (loss) $ 49,904 $ (307,218) $ (543,690) Income (loss) from discontinued operations, net of tax — — (20) Income (loss) from continuing operations, net of tax 49,904 (307,218) (543,710) Income tax expense (benefit) 79,220 61,536 55,621 Income (loss) before income taxes $ 129,124 $ (245,682) $ (488,089) Investment (income) loss (43,820) (14,992) (1,557) Interest expense 185,285 177,895 171,476 Impairments and other charges — — 66,731 Other, net (726) 127,099 39,998 Other reconciling items (3) 163,844 150,081 130,654 Total segment adjusted operating income (loss) (2) $ 433,707 $ 194,401 $ (80,787) Year Ended December 31, 2023 2022 2021 (In thousands) Depreciation and amortization U.S. Drilling $ 271,308 $ 311,759 $ 326,361 Canada Drilling — — 11,604 International Drilling 347,784 329,335 323,431 Drilling Solutions 18,634 20,829 26,660 Rig Technologies 7,864 5,794 8,191 Other reconciling items (3) (296) (2,645) (2,866) Total $ 645,294 $ 665,072 $ 693,381 Year Ended December 31, 2023 2022 2021 (In thousands) Capital expenditures: U.S. Drilling $ 136,311 $ 118,017 $ 53,875 Canada Drilling — — 2,938 International Drilling 357,609 222,099 173,078 Drilling Solutions 25,721 19,946 9,919 Rig Technologies 21,229 15,660 2,790 Other reconciling items (3) 12,038 5,765 1,089 Total $ 552,908 $ 381,487 $ 243,689 December 31, 2023 2022 (In thousands) Total assets: U.S. Drilling $ 1,239,765 $ 1,389,459 International Drilling 2,227,308 2,273,766 Drilling Solutions 78,472 63,652 Rig Technologies 239,167 207,345 Other reconciling items (3) 1,493,253 795,632 Total $ 5,277,965 $ 4,729,854 (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) is provided in the above table. (3) Represents the elimination of inter-segment transactions and unallocated corporate expenses, assets and capital expenditures. |
Schedule of financial information with respect to Nabors' operations by geographic area | Year Ended December 31, 2023 2022 2021 (In thousands) Operating revenues U.S. $ 1,477,774 $ 1,323,531 $ 804,807 Outside the U.S. 1,528,207 1,330,235 1,212,741 $ 3,005,981 $ 2,653,766 $ 2,017,548 Property, plant and equipment, net: U.S. $ 1,304,686 $ 1,437,333 $ 1,648,622 Outside the U.S. 1,594,042 1,588,767 1,699,876 $ 2,898,728 $ 3,026,100 $ 3,348,498 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue Recognition | |
Schedule of revenue, disaggregated by geographical region | In the following table, revenue is disaggregated by geographical region. The table also includes a reconciliation of the disaggregated revenue with the reportable segments: Year Ended December 31, 2023 U.S. Drilling Canada Drilling International Drilling Drilling Solutions Rig Technologies Other Total (In thousands) Lower 48 $ 1,052,274 $ — $ — $ 196,252 $ 121,958 $ — $ 1,370,484 U.S. Offshore Gulf of Mexico 118,218 — — 11,147 — — 129,365 Alaska 37,137 — — 1,733 — — 38,870 Canada — — — 1,522 7,270 — 8,792 Middle East & Asia — — 943,285 44,896 93,032 — 1,081,213 Latin America — — 341,470 44,422 11,162 — 397,054 Europe, Africa & CIS — — 60,494 1,785 9,346 — 71,625 Eliminations & other — — — — — (91,422) (91,422) Total $ 1,207,629 $ — $ 1,345,249 $ 301,757 $ 242,768 $ (91,422) $ 3,005,981 Year Ended December 31, 2022 U.S. Drilling Canada Drilling International Drilling Drilling Solutions Rig Technologies Other Total (In thousands) Lower 48 $ 913,932 $ — $ — $ 157,709 $ 111,197 $ — $ 1,182,838 U.S. Offshore Gulf of Mexico 122,536 — — 10,665 — — 133,201 Alaska 64,146 — — 1,734 — — 65,880 Canada — — — 1,521 5,726 — 7,247 Middle East & Asia — — 805,944 41,257 64,739 — 911,940 Latin America — — 309,320 29,515 1,503 — 340,338 Europe, Africa & CIS — — 84,018 948 11,964 — 96,930 Eliminations & other — — — — — (84,608) (84,608) Total $ 1,100,614 $ — $ 1,199,282 $ 243,349 $ 195,129 $ (84,608) $ 2,653,766 Year Ended December 31, 2021 U.S. Drilling Canada Drilling International Drilling Drilling Solutions Rig Technologies Other Total (In thousands) Lower 48 $ 512,880 $ — $ — $ 97,354 $ 69,250 $ — $ 679,484 U.S. Offshore Gulf of Mexico 128,323 — — 8,787 — — 137,110 Alaska 28,453 — — 753 59 — 29,265 Canada — 39,336 — 1,342 4,379 — 45,057 Middle East & Asia — — 706,267 40,492 60,319 — 807,078 Latin America — — 251,153 22,104 228 — 273,485 Europe, Africa & CIS — — 85,777 1,641 15,038 — 102,456 Eliminations & other — — — — — (56,387) (56,387) Total $ 669,656 $ 39,336 $ 1,043,197 $ 172,473 $ 149,273 $ (56,387) $ 2,017,548 |
Summary of receivables, contract assets, current and long-term contract liabilities | 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, 2022 $ 401.9 $ 23.6 $ 0.1 $ 29.2 $ 3.2 As of December 31, 2023 $ 397.1 $ 8.4 $ 3.0 $ 20.3 $ 2.0 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases | |
Schedule of lease related assets and liabilities | The table below presents the lease related assets and liabilities recorded on our condensed consolidated balance sheet: Year Ended December 31, 2023 2022 Classification on the Balance Sheet (In thousands) Assets Operating lease assets Other long-term assets $ 30,650 $ 34,504 Total lease assets $ 30,650 $ 34,504 Liabilities Current liabilities: Operating lease liabilities Current lease liabilities $ 5,423 $ 6,784 Noncurrent liabilities: Operating lease liabilities Other long-term liabilities $ 25,713 $ 27,785 Total lease liabilities $ 31,136 $ 34,569 |
Schedule of lease costs | The table below presents certain information related to the lease costs for our operating leases: Year Ended December 31, 2023 2022 2021 (In thousands) Operating lease cost 9,688 10,047 9,848 Short-term lease cost 150 596 593 Variable lease cost 39 115 143 Total lease cost $ 9,877 $ 10,758 $ 10,584 |
Summary of supplemental cash flow information related to leases | The table below presents supplemental cash flow information related to leases: Year Ended December 31, 2023 2022 2021 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 9,688 $ 10,047 $ 9,848 |
Summary of lease terms and discount rates | The table below presents certain information related to the weighted average remaining lease terms and weighted average discount rates for our operating leases: Year Ended December 31, 2023 2022 Weighted-average remaining lease term - operating leases 6.44 6.96 Weighted-average discount rate - operating leases 6.82% 6.81% |
Schedule of undiscounted cash flows for operating lease liabilities | The table below reconciles the undiscounted cash flows for each of the first five years and the total remaining years to the operating lease liabilities recorded on the condensed consolidated balance sheet: December 31, 2023 (In thousands) 2024 $ 7,614 2025 7,044 2026 6,966 2027 5,518 2028 2,455 Thereafter 8,539 Total undiscounted lease liability 38,136 Less: amount of lease payments representing interest (7,000) Long-term lease obligations $ 31,136 |
Special Purpose Acquisition C_2
Special Purpose Acquisition Companies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
NETC | |
Special Purpose Acquisition Companies | |
Schedule of Special Purpose Acquisition Companies effects on changes in non-controlling interest subject to possible redemption | The following table summarizes NETC’s effects on changes in non-controlling interest subject to possible redemption. 2023 2022 (In thousands) Balance, beginning of year $ 284,841 $ 281,520 Net earnings 5,540 3,321 Nabors deemed dividends to SPAC public shareholders 3,055 — Noncontrolling interest deemed dividends to SPAC public shareholders 1,774 — Redemptions and distributions of Trust Account (295,210) — Balance as of December 31 $ — $ 284,841 |
NETC II | |
Special Purpose Acquisition Companies | |
Schedule of Special Purpose Acquisition Companies effects on changes in non-controlling interest subject to possible redemption | The following table summarizes NETC II’s effects on changes in non-controlling interest subject to possible redemption. 2023 (In thousands) Balance, beginning of year $ — Initial public offering 294,474 Net earnings 7,438 Nabors deemed dividends to SPAC public shareholders 5,583 Noncontrolling interest deemed dividends to SPAC public shareholders 7,993 Balance as of December 31 $ 315,488 |
Nature of Operations (Details)
Nature of Operations (Details) | 12 Months Ended |
Dec. 31, 2023 country | |
Nature of Operations | |
Number of countries with company operations | 15 |
Actively marketed rigs for land based drilling operations | 291 |
Actively marketed rigs for offshore based drilling operations | 28 |
Geographic Concentration Risk | Property, Plant and Equipment, Net | Russia | |
Nature of Operations | |
Concentration risk (as a percent) | 0.90% |
Geographic Concentration Risk | Sales Revenue | Russia | |
Nature of Operations | |
Concentration risk (as a percent) | 1.10% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Inventory | ||
Inventory reserves | $ 23,900 | $ 23,000 |
Raw materials | 144,886 | 118,351 |
Work-in-progress | 2,912 | 6,121 |
Finished goods | 3,475 | |
Total inventory, net of reserves | $ 147,798 | $ 127,947 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Drilling rigs, excluding jackup rigs | |
Summary of Significant Accounting Policies | |
Operating rig asset depreciable life, operating days | 4927 days |
Non-operating rig asset depreciable life | 20 years |
Jackup rigs | |
Summary of Significant Accounting Policies | |
Operating rig asset depreciable life, operating days | 8030 days |
Non-operating rig asset depreciable life | 30 years |
Buildings | Minimum | |
Summary of Significant Accounting Policies | |
Estimated useful life | 10 years |
Buildings | Maximum | |
Summary of Significant Accounting Policies | |
Estimated useful life | 30 years |
Oilfield hauling and mobile equipment and other machinery and equipment | Minimum | |
Summary of Significant Accounting Policies | |
Estimated useful life | 3 years |
Oilfield hauling and mobile equipment and other machinery and equipment | Maximum | |
Summary of Significant Accounting Policies | |
Estimated useful life | 10 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Recent Accounting Pronouncements Adopted (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2022 |
Summary of Significant Accounting Policies | |||
Retained earnings (accumulated deficit) | $ (1,886,226) | $ (1,841,153) | |
Cumulative effect period of adoption adjustment | ASU 2020-06 | |||
Summary of Significant Accounting Policies | |||
Unamortized debt discount | $ (27,500) | ||
Retained earnings (accumulated deficit) | 60,700 | ||
Capital in excess of par value | $ (81,900) |
Impairments and Other Charges_2
Impairments and Other Charges (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Components of impairments and other charges | |
Rig Technologies | $ 418 |
Severance and transaction related costs | 6,228 |
Other assets | 1,325 |
Total | 66,731 |
Canada Drilling | |
Components of impairments and other charges | |
Drilling | 58,545 |
International Drilling | |
Components of impairments and other charges | |
Drilling | $ 215 |
Accounts Receivable Purchase _2
Accounts Receivable Purchase and Sales Agreement (Details) - USD ($) $ in Millions | Jul. 01, 2021 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 01, 2022 | Mar. 21, 2022 | Jun. 30, 2021 | Jan. 31, 2017 |
5.50% senior notes due January 2023 | ||||||||
Accounts Receivable Sales Agreement | ||||||||
Interest rate on senior notes (as a percent) | 5.50% | |||||||
5.10% senior notes due September 2023 | ||||||||
Accounts Receivable Sales Agreement | ||||||||
Interest rate on senior notes (as a percent) | 5.10% | 5.10% | 5.10% | |||||
0.75% senior exchangeable notes due January 2024 | ||||||||
Accounts Receivable Sales Agreement | ||||||||
Interest rate on senior notes (as a percent) | 0.75% | 0.75% | 0.75% | 0.75% | ||||
A/R Purchase Agreement | ||||||||
Accounts Receivable Sales Agreement | ||||||||
Agreement amount | $ 250 | |||||||
Receivables sold | $ 145 | $ 208 | ||||||
A/R Purchase Agreement | Asset Pledged as Collateral | ||||||||
Accounts Receivable Sales Agreement | ||||||||
Balance of receivables | $ 67 | $ 62.3 | ||||||
A/R Purchase Agreement, First Amendment | ||||||||
Accounts Receivable Sales Agreement | ||||||||
Agreement amount | $ 150 | |||||||
Agreement expiration term | 2 years | |||||||
A/R Purchase Agreement, Third Amendment | ||||||||
Accounts Receivable Sales Agreement | ||||||||
Agreement amount | $ 250 | |||||||
A/R Purchase Agreement, Third Amendment | Maximum | ||||||||
Accounts Receivable Sales Agreement | ||||||||
Agreement amount | $ 300 |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Details) $ in Millions | Jul. 31, 2021 USD ($) |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Canada Drilling | |
Acquisitions and Dispositions | |
Sale of segment assets | $ 94 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring Fair Value Measurements (Details) - Fair Value, Inputs, Level 1 - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value Measurements | ||
Restricted Cash Held in Trust | $ 315.5 | $ 284.8 |
Short-Term Investments | 12.7 | 1.3 |
Warrants, at fair value | $ 25.9 | $ 80.9 |
Fair Value Measurements - Debt
Fair Value Measurements - Debt instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Mar. 21, 2022 | Jan. 31, 2017 |
Carrying Value | |||||
Gross carrying value of debt | $ 3,175,132 | $ 2,559,996 | |||
Less: current portion | 629,621 | ||||
Less: deferred financing costs | 33,992 | 22,456 | |||
Long-term debt | $ 2,511,519 | $ 2,537,540 | |||
5.10% senior notes due September 2023 | |||||
Fair Value of Financial Instruments | |||||
Interest rate on senior notes (as a percent) | 5.10% | 5.10% | 5.10% | ||
Effective Interest Rate | 5.46% | ||||
Carrying Value | |||||
Gross carrying value of debt | $ 52,004 | ||||
0.75% senior exchangeable notes due January 2024 | |||||
Fair Value of Financial Instruments | |||||
Interest rate on senior notes (as a percent) | 0.75% | 0.75% | 0.75% | 0.75% | |
Effective Interest Rate | 0.84% | 0.97% | |||
Carrying Value | |||||
Gross carrying value of debt | $ 155,529 | $ 177,005 | |||
5.75% senior notes due February 2025 | |||||
Fair Value of Financial Instruments | |||||
Interest rate on senior notes (as a percent) | 5.75% | 5.75% | |||
Effective Interest Rate | 5.97% | 6.02% | |||
Carrying Value | |||||
Gross carrying value of debt | $ 474,092 | $ 474,092 | |||
9.00% senior priority guaranteed notes due February 2025 | |||||
Fair Value of Financial Instruments | |||||
Interest rate on senior notes (as a percent) | 9% | 9% | |||
Effective Interest Rate | 9% | ||||
Carrying Value | |||||
Gross carrying value of debt | $ 209,384 | ||||
7.25% senior guaranteed notes due January 2026 | |||||
Fair Value of Financial Instruments | |||||
Interest rate on senior notes (as a percent) | 7.25% | 7.25% | |||
Effective Interest Rate | 7.53% | 7.52% | |||
Carrying Value | |||||
Gross carrying value of debt | $ 555,902 | $ 557,902 | |||
7.375% senior priority guaranteed notes due May 2027 | |||||
Fair Value of Financial Instruments | |||||
Interest rate on senior notes (as a percent) | 7.375% | 7.375% | |||
Effective Interest Rate | 7.72% | 7.74% | |||
Carrying Value | |||||
Gross carrying value of debt | $ 700,000 | $ 700,000 | |||
7.50% senior guaranteed notes due January 2028 | |||||
Fair Value of Financial Instruments | |||||
Interest rate on senior notes (as a percent) | 7.50% | 7.50% | |||
Effective Interest Rate | 7.69% | 7.70% | |||
Carrying Value | |||||
Gross carrying value of debt | $ 389,609 | $ 389,609 | |||
1.75% senior exchangeable notes due June 2029 | |||||
Fair Value of Financial Instruments | |||||
Interest rate on senior notes (as a percent) | 1.75% | ||||
Effective Interest Rate | 2.26% | ||||
Carrying Value | |||||
Gross carrying value of debt | $ 250,000 | ||||
9.125% senior priority guaranteed notes due January 2030 | |||||
Fair Value of Financial Instruments | |||||
Interest rate on senior notes (as a percent) | 9.125% | ||||
Effective Interest Rate | 9.40% | ||||
Carrying Value | |||||
Carrying Value | |||||
Gross carrying value of debt | $ 3,175,132 | 2,559,996 | |||
Less: current portion | 629,621 | ||||
Less: deferred financing costs | 33,992 | 22,456 | |||
Long-term debt | 2,511,519 | 2,537,540 | |||
Carrying Value | 5.10% senior notes due September 2023 | |||||
Carrying Value | |||||
Gross carrying value of debt | 52,004 | ||||
Carrying Value | 0.75% senior exchangeable notes due January 2024 | |||||
Carrying Value | |||||
Gross carrying value of debt | 155,529 | 177,005 | |||
Carrying Value | 5.75% senior notes due February 2025 | |||||
Carrying Value | |||||
Gross carrying value of debt | 474,092 | 474,092 | |||
Carrying Value | 9.00% senior priority guaranteed notes due February 2025 | |||||
Carrying Value | |||||
Gross carrying value of debt | 209,384 | ||||
Carrying Value | 7.25% senior guaranteed notes due January 2026 | |||||
Carrying Value | |||||
Gross carrying value of debt | 555,902 | 557,902 | |||
Carrying Value | 7.375% senior priority guaranteed notes due May 2027 | |||||
Carrying Value | |||||
Gross carrying value of debt | 700,000 | 700,000 | |||
Carrying Value | 7.50% senior guaranteed notes due January 2028 | |||||
Carrying Value | |||||
Gross carrying value of debt | 389,609 | 389,609 | |||
Carrying Value | 1.75% senior exchangeable notes due June 2029 | |||||
Carrying Value | |||||
Gross carrying value of debt | 250,000 | ||||
Carrying Value | 9.125% senior priority guaranteed notes due January 2030 | |||||
Carrying Value | |||||
Gross carrying value of debt | 650,000 | ||||
Fair Value | |||||
Fair Value | |||||
Debt at fair value | 3,028,307 | 2,455,050 | |||
Fair Value | 5.10% senior notes due September 2023 | |||||
Fair Value | |||||
Debt at fair value | 51,354 | ||||
Fair Value | 0.75% senior exchangeable notes due January 2024 | |||||
Fair Value | |||||
Debt at fair value | 154,989 | 164,898 | |||
Fair Value | 5.75% senior notes due February 2025 | |||||
Fair Value | |||||
Debt at fair value | 474,120 | 454,773 | |||
Fair Value | 9.00% senior priority guaranteed notes due February 2025 | |||||
Fair Value | |||||
Debt at fair value | 213,507 | ||||
Fair Value | 7.25% senior guaranteed notes due January 2026 | |||||
Fair Value | |||||
Debt at fair value | 535,328 | 529,432 | |||
Fair Value | 7.375% senior priority guaranteed notes due May 2027 | |||||
Fair Value | |||||
Debt at fair value | 687,526 | 686,686 | |||
Fair Value | 7.50% senior guaranteed notes due January 2028 | |||||
Fair Value | |||||
Debt at fair value | 334,090 | $ 354,400 | |||
Fair Value | 1.75% senior exchangeable notes due June 2029 | |||||
Fair Value | |||||
Debt at fair value | 185,383 | ||||
Fair Value | 9.125% senior priority guaranteed notes due January 2030 | |||||
Fair Value | |||||
Debt at fair value | $ 656,871 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Compensation | |||
Share-based compensation expense | $ 15.8 | $ 15.8 | $ 19.2 |
Common shares available for issuance | 0.4 | ||
Restricted shares | General and administrative and research and engineering expenses | |||
Share-Based Compensation | |||
Share-based compensation expense | $ 15.8 | $ 15.8 | $ 19.1 |
Performance based restricted stock units | |||
Share-Based Compensation | |||
Performance period | 1 year | ||
Vesting period | 3 years | ||
Employee Stock Option [Member] | |||
Share-Based Compensation | |||
Vesting period | 10 years |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock option activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Shares | |||
Options outstanding at the beginning of the period (in shares) | 16,000 | ||
Granted (in shares) | 0 | ||
Options outstanding at the end of the period (in shares) | 16,000 | 16,000 | |
Options exercisable at the end of the period (in shares) | 16,000 | ||
Number of unvested options at end of year | 0 | 0 | 0 |
Weighted Average Exercise Price | |||
Options outstanding at the beginning of the period (in dollars per share) | $ 391.76 | ||
Expired (in dollars per share) | 817.91 | ||
Options outstanding at the end of the period (in dollars per share) | 362.76 | $ 391.76 | |
Options exercisable at the end of the period (in dollars per share) | $ 362.76 | ||
Weighted Average Remaining Contractual Term | |||
Options outstanding at the end of the period | 4 years 2 months 19 days | ||
Options exercisable at the end of the period | 4 years 2 months 19 days | ||
Directors | |||
Shares | |||
Granted (in shares) | 1,056 | 963 |
Share-Based Compensation - St_2
Share-Based Compensation - Stock option valuation assumptions (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Compensation | |||
Weighted average fair value of options granted (in dollars per share) | $ 111.23 | $ 72.69 | |
Options exercised | 0 | 0 | 0 |
Total fair value of option vested during the period | $ 0.2 | $ 0.1 | |
Employee Stock Option [Member] | |||
Share-Based Compensation | |||
Dividend yield (as a percent) | 0% | 0% | |
Expected volatility (as a percent) | 111.50% | 102.50% | |
Expected term (in years) | 4 years | 4 years | |
Employee Stock Option [Member] | Weighted Average | |||
Share-Based Compensation | |||
Risk free interest rate (as a percent) | 3.69% | 0.72% |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted shares (Details) - Restricted shares - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restricted shares outstanding | |||
Outstanding at the beginning of the period (in shares)) | 163,000 | ||
Granted (in shares) | 103,465 | 112,203 | 82,722 |
Vested (in shares) | (62,000) | ||
Forfeited (in shares) | (19,000) | ||
Outstanding at the end of the period (in shares) | 185,000 | 163,000 | |
Weighted-Average Grant-Date Fair Value | |||
Outstanding at the beginning of the period (in dollars per share) | $ 126.26 | ||
Granted (in dollars per share) | 160.49 | ||
Vested (in dollars per share) | 135.53 | ||
Forfeited (in dollars per share) | 142.76 | ||
Outstanding at the end of the period (in dollars per share) | $ 140.56 | $ 126.26 | |
Aggregate value at grant date | $ 16.6 | $ 14.8 | $ 8.7 |
Fair value of vested shares | 8.4 | $ 6.3 | $ 2.5 |
Total future compensation cost related to unvested awards | $ 18.5 | ||
Maximum | |||
Share-Based Compensation | |||
Vesting period | 4 years | ||
Weighted Average | |||
Weighted-Average Grant-Date Fair Value | |||
Recognition period | 2 years 6 months 7 days |
Share-Based Compensation - Re_2
Share-Based Compensation - Restricted shares based on performance conditions (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2020 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Performance based restricted shares | ||||
Share-Based Compensation | ||||
Shares awarded during period | 59,490 | |||
Vesting period | 3 years | |||
Aggregate fair value at grant date | $ 8.8 | |||
Restricted shares outstanding | ||||
Outstanding at the beginning of the period (in shares)) | 20,000 | |||
Granted (in shares) | 59,490 | |||
Vested (in shares) | (20,000) | |||
Outstanding at the end of the period (in shares) | 0 | 20,000 | ||
Weighted-Average Grant-Date Fair Value | ||||
Outstanding at the beginning of the period (in dollars per share) | $ 148 | |||
Vested (in dollars per share) | $ 148 | |||
Outstanding at the end of the period (in dollars per share) | $ 0 | $ 148 | ||
Performance based restricted stock units | ||||
Share-Based Compensation | ||||
Shares awarded during period | 60,633 | 49,065 | 95,902 | |
Vesting period | 3 years | |||
Restricted shares outstanding | ||||
Outstanding at the beginning of the period (in shares)) | 113,000 | |||
Granted (in shares) | 60,633 | 49,065 | 95,902 | |
Vested (in shares) | (59,000) | |||
Forfeited (in shares) | (12,000) | |||
Outstanding at the end of the period (in shares) | 103,000 | 113,000 | ||
Weighted-Average Grant-Date Fair Value | ||||
Outstanding at the beginning of the period (in dollars per share) | $ 85.31 | |||
Granted (in dollars per share) | 121.61 | |||
Vested (in dollars per share) | 96.85 | |||
Forfeited (in dollars per share) | 146.36 | |||
Outstanding at the end of the period (in dollars per share) | $ 92.84 | $ 85.31 | ||
Performance based restricted stock units | Minimum | ||||
Weighted-Average Grant-Date Fair Value | ||||
Vesting percentage | 30% | |||
Performance based restricted stock units | Maximum | ||||
Weighted-Average Grant-Date Fair Value | ||||
Vesting percentage | 200% |
Share-Based Compensation - Re_3
Share-Based Compensation - Restricted shares based on market conditions (Details) - Restricted shares based on market conditions - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Compensation | |||
Shares awarded during period | 29,621 | 47,622 | 61,997 |
Vesting period | 3 years | ||
Aggregate fair value at grant date | $ 2.5 | $ 2.3 | $ 2.2 |
Assumptions used to value grant date fair value | |||
Risk free interest rate (as a percent) | 4.13% | 1.03% | 0.18% |
Expected volatility (as a percent) | 94% | 92% | 108% |
Closing stock price at grant date (in dollars per share) | $ 154.87 | $ 81.09 | $ 60.62 |
Expected term (in years) | 3 years | 3 years | 3 years |
Restricted shares outstanding | |||
Outstanding at the beginning of the period (in shares)) | 133,000 | ||
Granted (in shares) | 29,621 | 47,622 | 61,997 |
Vested (in shares) | (13,000) | ||
Forfeited (in shares) | (73,000) | ||
Outstanding at the end of the period (in shares) | 77,000 | 133,000 | |
Weighted-Average Grant-Date Fair Value | |||
Outstanding at the beginning of the period (in dollars per share) | $ 53.03 | ||
Granted (in dollars per share) | 92.35 | ||
Vested (in dollars per share) | 111 | ||
Forfeited (in dollars per share) | 45.58 | ||
Outstanding at the end of the period (in dollars per share) | $ 65.62 | $ 53.03 | |
Total future compensation cost related to unvested awards | $ 2.6 | ||
Recognition period | 1 year 8 months 15 days |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment | |||
Property, plant and equipment, gross | $ 12,603,880 | $ 12,329,080 | |
Less: accumulated depreciation and amortization | (9,705,152) | (9,302,980) | |
Property, Plant and Equipment, Net | 2,898,728 | 3,026,100 | $ 3,348,498 |
Depreciation | 644,900 | 663,100 | 689,200 |
Repair and maintenance expense | 228,200 | 202,500 | $ 153,900 |
Land | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 32,074 | 22,672 | |
Buildings | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 140,330 | 134,063 | |
Drilling rigs and related equipment | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 11,959,989 | 11,722,404 | |
Oilfield hauling and mobile equipment | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 233,920 | 233,708 | |
Other machinery and equipment | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | $ 237,567 | $ 216,233 |
Financial Instruments and Ris_2
Financial Instruments and Risk Concentration (Details) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Mar. 21, 2022 | Jan. 31, 2017 | |
5.75% senior notes due February 2025 | ||||
Financial Instruments and Risk Concentration | ||||
Interest rate (as a percent) | 5.75% | 5.75% | ||
0.75% senior exchangeable notes due January 2024 | ||||
Financial Instruments and Risk Concentration | ||||
Interest rate (as a percent) | 0.75% | 0.75% | 0.75% | 0.75% |
1.75% senior exchangeable notes due June 2029 | ||||
Financial Instruments and Risk Concentration | ||||
Interest rate (as a percent) | 1.75% | |||
7.25% senior guaranteed notes due January 2026 | ||||
Financial Instruments and Risk Concentration | ||||
Interest rate (as a percent) | 7.25% | 7.25% | ||
7.50% senior guaranteed notes due January 2028 | ||||
Financial Instruments and Risk Concentration | ||||
Interest rate (as a percent) | 7.50% | 7.50% | ||
7.375% senior priority guaranteed notes due May 2027 | ||||
Financial Instruments and Risk Concentration | ||||
Interest rate (as a percent) | 7.375% | 7.375% | ||
9.125% senior priority guaranteed notes | ||||
Financial Instruments and Risk Concentration | ||||
Interest rate (as a percent) | 9.125% | |||
Accounts Receivable | Credit Risk | Saudi Arabia | ||||
Financial Instruments and Risk Concentration | ||||
Concentration risk (as a percent) | 29% | |||
Accounts Receivable | Credit Risk | Mexico | ||||
Financial Instruments and Risk Concentration | ||||
Concentration risk (as a percent) | 18% |
Debt - Summary (Details)
Debt - Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Mar. 21, 2022 | Jan. 31, 2017 |
Debt | |||||
Gross carrying value of debt | $ 3,175,132 | $ 2,559,996 | |||
Less: current portion | 629,621 | ||||
Less: deferred financing costs | 33,992 | 22,456 | |||
Long-term debt | $ 2,511,519 | 2,537,540 | |||
5.10% senior notes due September 2023 | |||||
Debt | |||||
Gross carrying value of debt | $ 52,004 | ||||
Interest rate on senior notes (as a percent) | 5.10% | 5.10% | 5.10% | ||
0.75% senior exchangeable notes due January 2024 | |||||
Debt | |||||
Gross carrying value of debt | $ 155,529 | $ 177,005 | |||
Interest rate on senior notes (as a percent) | 0.75% | 0.75% | 0.75% | 0.75% | |
5.75% senior notes due February 2025 | |||||
Debt | |||||
Gross carrying value of debt | $ 474,092 | $ 474,092 | |||
Interest rate on senior notes (as a percent) | 5.75% | 5.75% | |||
9.00% senior priority guaranteed notes due February 2025 | |||||
Debt | |||||
Gross carrying value of debt | $ 209,384 | ||||
Interest rate on senior notes (as a percent) | 9% | 9% | |||
7.25% senior guaranteed notes due January 2026 | |||||
Debt | |||||
Gross carrying value of debt | $ 555,902 | $ 557,902 | |||
Interest rate on senior notes (as a percent) | 7.25% | 7.25% | |||
7.375% senior priority guaranteed notes due May 2027 | |||||
Debt | |||||
Gross carrying value of debt | $ 700,000 | $ 700,000 | |||
Interest rate on senior notes (as a percent) | 7.375% | 7.375% | |||
7.50% senior guaranteed notes due January 2028 | |||||
Debt | |||||
Gross carrying value of debt | $ 389,609 | $ 389,609 | |||
Interest rate on senior notes (as a percent) | 7.50% | 7.50% | |||
1.75% senior exchangeable notes due June 2029 | |||||
Debt | |||||
Gross carrying value of debt | $ 250,000 | ||||
Interest rate on senior notes (as a percent) | 1.75% | ||||
9.125% senior priority guaranteed notes due January 2030 | |||||
Debt | |||||
Gross carrying value of debt | $ 650,000 | ||||
Interest rate on senior notes (as a percent) | 9.125% |
Debt - Maturities (Details)
Debt - Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Mar. 21, 2022 | Jan. 31, 2017 |
Principal amount and maturities of primary debt | ||||
2024 | $ 629,621 | |||
2025 | ||||
2026 | 555,902 | |||
2027 | 700,000 | |||
2028 | 389,609 | |||
Thereafter | 900,000 | |||
Total | $ 3,175,132 | |||
0.75% senior exchangeable notes due January 2024 | ||||
Principal amount and maturities of primary debt | ||||
Interest rate on senior notes (as a percent) | 0.75% | 0.75% | 0.75% | 0.75% |
5.75% senior notes due February 2025 | ||||
Principal amount and maturities of primary debt | ||||
Interest rate on senior notes (as a percent) | 5.75% | 5.75% | ||
7.25% senior guaranteed notes due January 2026 | ||||
Principal amount and maturities of primary debt | ||||
Interest rate on senior notes (as a percent) | 7.25% | 7.25% | ||
7.375% senior priority guaranteed notes due May 2027 | ||||
Principal amount and maturities of primary debt | ||||
Interest rate on senior notes (as a percent) | 7.375% | 7.375% | ||
7.50% senior guaranteed notes due January 2028 | ||||
Principal amount and maturities of primary debt | ||||
Interest rate on senior notes (as a percent) | 7.50% | 7.50% | ||
1.75% senior exchangeable notes due June 2029 | ||||
Principal amount and maturities of primary debt | ||||
Interest rate on senior notes (as a percent) | 1.75% | |||
9.125% senior priority guaranteed notes | ||||
Principal amount and maturities of primary debt | ||||
Interest rate on senior notes (as a percent) | 9.125% |
Debt - Guarantees (Details)
Debt - Guarantees (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt | ||||
Notes tendered by warrant holders and retired | $ 131,700 | |||
Gain on repurchase of debt | $ 25,275 | $ 4,119 | $ 13,423 | |
5.75% senior notes due February 2025 | ||||
Debt | ||||
Interest rate (as a percent) | 5.75% | 5.75% | ||
5.10% senior notes due September 2023 | ||||
Debt | ||||
Interest rate (as a percent) | 5.10% | 5.10% | 5.10% | |
Repayment of outstanding debt | $ 52,100 | |||
6.50% senior priority guaranteed notes due February 2025 | ||||
Debt | ||||
Interest rate (as a percent) | 6.50% | |||
Repayment of outstanding debt | $ 50,500 | |||
5.50% senior notes due January 2023 | ||||
Debt | ||||
Interest rate (as a percent) | 5.50% | |||
Repayment of outstanding debt | $ 19,700 | |||
9.00% senior priority guaranteed notes due February 2025 | ||||
Debt | ||||
Interest rate (as a percent) | 9% | 9% | ||
Nabors Delaware's notes | ||||
Debt | ||||
Principal amount of notes repurchased | $ 232,900 | $ 99,300 | 105,900 | |
Repurchase amount including principal and accrued interest | 238,800 | 98,500 | 93,800 | |
Gain on repurchase of debt | 25,300 | $ 4,600 | $ 13,400 | |
Nabors Delaware's notes | 9.00% senior priority guaranteed notes due February 2025 | ||||
Debt | ||||
Gain on repurchase of debt | $ 24,500 | |||
Payment Guarantee | Nabors Delaware's notes | ||||
Debt | ||||
Redemption price, as a percentage of principal | 100% | |||
Redemption price, as a percentage of principal plus accrued and unpaid interest | 101% | |||
Payment Guarantee | Nabors Delaware's notes | 5.75% senior notes due February 2025 | ||||
Debt | ||||
Interest rate (as a percent) | 5.75% |
Debt - Senior Priority Guarante
Debt - Senior Priority Guaranteed Notes (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Nov. 30, 2023 | Dec. 31, 2022 |
9.125% senior priority guaranteed notes | |||
Debt | |||
Interest rate on senior notes (as a percent) | 9.125% | ||
Aggregate principal amount outstanding | $ 650 | ||
5.75% senior notes due February 2025 | |||
Debt | |||
Interest rate on senior notes (as a percent) | 5.75% | 5.75% | |
Payment Guarantee | 9.125% senior priority guaranteed notes | |||
Debt | |||
Aggregate principal amount at issuance | $ 650 | ||
Interest rate on senior notes (as a percent) | 9.125% |
Debt - Senior Exchangeable Note
Debt - Senior Exchangeable Notes (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2023 USD ($) D $ / shares | Feb. 28, 2023 USD ($) | Dec. 31, 2022 USD ($) | Mar. 21, 2022 | Jan. 01, 2022 USD ($) | Jan. 31, 2017 USD ($) | |
Debt | ||||||
Amount outstanding | $ 3,175,132 | $ 2,559,996 | ||||
Unamortized issuance costs | $ 33,992 | $ 22,456 | ||||
ASU 2020-06 | Cumulative effect period of adoption adjustment | ||||||
Debt | ||||||
Unamortized debt discount | $ (27,500) | |||||
1.75% senior exchangeable notes due June 2029 | ||||||
Debt | ||||||
Interest rate on senior notes (as a percent) | 1.75% | |||||
Amount outstanding | $ 250,000 | |||||
Exchange rate of common shares per $1,000 principal amount | 4.7056 | |||||
Exchange price per common share | $ / shares | $ 212.51 | |||||
1.75% senior exchangeable notes due June 2029 | Scenario: Exchange at the Company's option after June 15, 2026 | ||||||
Debt | ||||||
Threshold percentage of exchange price | 130% | |||||
Threshold number of trading days, whether or not consecutive | D | 20 | |||||
Threshold number of consecutive trading days | D | 30 | |||||
Percentage of principal to be redeemed | 100% | |||||
0.75% senior exchangeable notes due January 2024 | ||||||
Debt | ||||||
Aggregate principal amount at issuance | $ 575,000 | |||||
Interest rate on senior notes (as a percent) | 0.75% | 0.75% | 0.75% | 0.75% | ||
Amount outstanding | $ 155,529 | $ 177,005 | ||||
Payment Guarantee | 1.75% senior exchangeable notes due June 2029 | ||||||
Debt | ||||||
Aggregate principal amount at issuance | $ 250,000 | |||||
Interest rate on senior notes (as a percent) | 1.75% |
Debt - Credit Agreement (Detail
Debt - Credit Agreement (Details) - USD ($) $ in Thousands | Jan. 21, 2022 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Mar. 21, 2022 | Jan. 31, 2017 |
5.10% senior notes due September 2023 | ||||||
Debt | ||||||
Interest rate on senior notes (as a percent) | 5.10% | 5.10% | 5.10% | |||
5.75% senior notes due February 2025 | ||||||
Debt | ||||||
Interest rate on senior notes (as a percent) | 5.75% | 5.75% | ||||
0.75% senior exchangeable notes due January 2024 | ||||||
Debt | ||||||
Interest rate on senior notes (as a percent) | 0.75% | 0.75% | 0.75% | 0.75% | ||
2022 Credit Agreement | ||||||
Debt | ||||||
Percentage of property, plant and equipment to be owned by the revolver guarantor and its subsidiaries | 90% | |||||
Outstanding balance | $ 0 | |||||
Weighted average interest rate (as a percent) | 8.09% | |||||
2022 Credit Agreement | Debt covenant | ||||||
Debt | ||||||
Threshold amount beyond which the debt instrument covenant restricts the company's ability to incur liens | $ 150,000 | |||||
Threshold amount beyond which the debt instrument covenant restricts the company's subsidiaries to incur debt | $ 100,000 | |||||
2022 Credit Agreement | Debt covenant | Minimum | ||||||
Debt | ||||||
Interest coverage ratio | 2.50 | |||||
2022 Credit Agreement | Debt covenant | Maximum | ||||||
Debt | ||||||
Interest coverage ratio | 2.75 | |||||
Revolving credit facility | ||||||
Debt | ||||||
Maximum borrowing capacity | $ 350,000 | |||||
Additional borrowing capacity under terms of accordion feature | 100,000 | |||||
Letters of credit | ||||||
Debt | ||||||
Maximum borrowing capacity | 100,000 | $ 313,667 | ||||
Outstanding balance | 114,937 | |||||
Letters of credit outstanding | $ 47,800 | |||||
Collateralized debt | ||||||
Debt | ||||||
Maximum borrowing capacity | 150,000 | |||||
Term loans | ||||||
Debt | ||||||
Maximum borrowing capacity | $ 100,000 |
Debt - Letters of Credit (Detai
Debt - Letters of Credit (Details) $ in Thousands | Dec. 31, 2023 USD ($) item | Jan. 21, 2022 USD ($) |
Debt | ||
Number of letter of credit facilities | item | 8 | |
Letters of credit | ||
Debt | ||
Credit available | $ 313,667 | $ 100,000 |
Less: Letters of credit outstanding, inclusive of financial and performance guarantees | 114,937 | |
Remaining availability | $ 198,730 |
Income Taxes - Income tax expen
Income Taxes - Income tax expense (benefit) from continuing operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
United States and Other Jurisdictions | |||
Income (loss) before income taxes | $ 129,124 | $ (245,682) | $ (488,089) |
Current: | |||
Current state tax | 2,787 | 4,042 | 7,914 |
Total current income tax expense (benefit) | 63,339 | 54,199 | 66,327 |
Deferred: | |||
Deferred state income tax | 893 | 6,897 | (2,429) |
Total deferred income tax expense (benefit) | 15,881 | 7,337 | (10,706) |
Total income tax expense (benefit) | 79,220 | 61,536 | 55,621 |
U.S. federal | |||
United States and Other Jurisdictions | |||
Income before income taxes | 215,306 | (19,820) | (153,243) |
Current: | |||
Current foreign income tax | 4,783 | 1,320 | (1,905) |
Deferred: | |||
Deferred foreign income tax | 16,886 | 681 | (4,669) |
Outside the U.S | |||
United States and Other Jurisdictions | |||
Income before income taxes | (86,182) | (225,862) | (334,846) |
Current: | |||
Current foreign income tax | 55,769 | 48,837 | 60,318 |
Deferred: | |||
Deferred foreign income tax | $ (1,898) | $ (241) | $ (3,608) |
Income Taxes - Reconciliation (
Income Taxes - Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of statutory tax rate to our worldwide effective tax rate | |||
Income tax provision at statutory rate (Bermuda rate of 0%) | $ 0 | $ 0 | $ 0 |
Taxes (benefit) on U.S. and other international earnings (losses) at greater than the Bermuda rate | 74,581 | 25,685 | 23,395 |
Increase (decrease) in valuation allowance | 22,533 | 43,060 | 8,276 |
Impact of foreign exchange rates | (28,484) | (32,108) | |
Prior year adjustments to provision | (3,513) | 15,959 | |
Uncertain tax positions | 5,854 | 2,080 | 26,266 |
Audit settlements | 12,464 | ||
State income taxes (benefit) | 3,838 | 266 | (2,316) |
Other | (8,053) | 6,594 | |
Total income tax expense (benefit) | $ 79,220 | $ 61,536 | $ 55,621 |
Effective tax rate (as a percent) | 61.40% | (25.00%) | (11.40%) |
Office of the Tax Commissioner, Bermuda | |||
Reconciliation of statutory tax rate to our worldwide effective tax rate | |||
Statutory income tax rate | 0% | 0% | 0% |
Income Taxes - Components of ne
Income Taxes - Components of net deferred taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 4,004,602 | $ 3,878,344 |
Tax credit and other attribute carryforwards | 86,896 | 84,812 |
Accrued interest | 19,311 | 13,302 |
Property, plant and equipment | 20,431 | |
Other | 106,520 | 100,316 |
Subtotal | 4,217,329 | 4,097,205 |
Valuation allowance | (3,962,200) | (3,839,885) |
Deferred tax assets | 255,129 | 257,320 |
Deferred tax liabilities: | ||
Property, plant and equipment | 15,181 | |
Other | 2,443 | 2,858 |
Deferred tax liability | 17,624 | 2,858 |
Net deferred tax assets (liabilities) | 237,505 | 254,462 |
Balance Sheet Summary : | ||
Net noncurrent deferred tax asset | 238,871 | 257,320 |
Net noncurrent deferred tax liability | (1,366) | (2,858) |
Net deferred tax assets (liabilities) | $ 237,505 | $ 254,462 |
Income Taxes - Operating Loss C
Income Taxes - Operating Loss Carryforwards (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Income Taxes | |
Net operating losses subject to expiration | $ 7,900 |
Recognized valuation allowance relating to NOL carryforwards | 3,900 |
Federal | |
Income Taxes | |
Net operating loss carryforwards | 588.9 |
State | |
Income Taxes | |
Net operating loss carryforwards | 788.1 |
Foreign | |
Income Taxes | |
Net operating loss carryforwards | $ 16,100 |
Income Taxes - Uncertain tax po
Income Taxes - Uncertain tax positions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Change in unrecognized tax benefits | |||
Balance as of January 1 | $ 45,452 | $ 45,988 | $ 26,704 |
Additions for tax positions of prior years | 2,207 | 806 | 19,760 |
Reductions for tax positions of prior years | (256) | (1,342) | (476) |
Settlements | (13,387) | ||
Balance as of December 31 | 34,016 | 45,452 | 45,988 |
Unrecognized tax benefits that would impact the worldwide effective tax rate if realized | 34,000 | ||
Interest and penalties on unrecognized tax benefits | 11,100 | 17,000 | 14,400 |
Accruals for estimated interest and penalties related to uncertain tax positions | (6,000) | 2,600 | $ 6,900 |
Interest accrued | 13,400 | ||
Penalties | 9,900 | ||
Deferred tax asset for Bermuda net operating losses | 171,900 | ||
Valuation allowance | 3,962,200 | $ 3,839,885 | |
Bermuda | |||
Change in unrecognized tax benefits | |||
Valuation allowance | $ 171,900 |
Shareholders' Equity - Common S
Shareholders' Equity - Common Shares (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Jul. 19, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Shareholders' Equity | ||||
Aggregate share capital, shares authorized | 57,000,000 | |||
Common shares, shares authorized | 32,000,000 | 32,000,000 | ||
Common shares, par value (in dollars per share) | $ 0.05 | $ 0.05 | ||
Preferred shares, shares authorized | 25,000,000 | |||
Preferred stock, par value (in dollars per share) | $ 0.001 | |||
Treasury shares, common | 1,161,283 | 1,090,000 | ||
Treasury Shares | ||||
Shareholders' Equity | ||||
Treasury shares reissued during the year | 0 | 0 | 0 | |
Common Shares | ||||
Shareholders' Equity | ||||
Shares issued in connection with acquisition of certain development stage technologies in the energy transition space | 147,974 | |||
Value of shares issued in connection with acquisition of certain development stage technologies in the energy transition space | $ 12.9 | |||
Number of shares forfeited | 71,280 | |||
Common shares issued upon conversion of warrants | 1,100,000 |
Shareholders' Equity - Common_2
Shareholders' Equity - Common Stock Warrants (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||||
Jun. 11, 2021 shares | Dec. 31, 2023 USD ($) D $ / shares shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jun. 30, 2023 | Mar. 21, 2022 | May 27, 2021 shares | Jan. 31, 2017 | |
Shareholders' Equity | ||||||||
Conversion, threshold percentage of market price | 95% | |||||||
Gain (loss) recognized for the change in liability | $ | $ 54,948 | $ (95,876) | ||||||
5.10% Notes due 2023 | ||||||||
Shareholders' Equity | ||||||||
Interest rate (as a percent) | 5.10% | 5.10% | 5.10% | |||||
0.75% Exchangeable Notes due 2024 | ||||||||
Shareholders' Equity | ||||||||
Interest rate (as a percent) | 0.75% | 0.75% | 0.75% | 0.75% | ||||
5.75% Notes due 2025 | ||||||||
Shareholders' Equity | ||||||||
Interest rate (as a percent) | 5.75% | 5.75% | ||||||
7.25% Notes due 2026 | ||||||||
Shareholders' Equity | ||||||||
Interest rate (as a percent) | 7.25% | |||||||
Common share warrants | ||||||||
Shareholders' Equity | ||||||||
Number of warrants received per common share held | 0.40 | |||||||
Number of warrants issued | 3,200,000 | |||||||
Warrants outstanding | 2,500,000 | |||||||
Number of business day notice period | D | 20 | |||||||
Fair value of outstanding warrants | $ | $ 25,900 | $ 80,900 | ||||||
Gain (loss) recognized for the change in liability | $ | $ 54,700 | $ 99,200 | $ 2,600 | |||||
Common Shares | ||||||||
Shareholders' Equity | ||||||||
Aggregate number of shares issued from the exercise of warrants | 1,100,000 | |||||||
Number of shares which may be purchased by each right | 1 | |||||||
Exercise price (in dollars per share) | $ / shares | $ 166.66667 |
Joint Ventures (Details)
Joint Ventures (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2017 | Dec. 31, 2023 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Joint Ventures | ||||||
Redeemable noncontrolling interest | $ 678,604 | $ 739,075 | ||||
Assets: | ||||||
Cash and cash equivalents | 451,025 | 1,057,487 | $ 991,471 | $ 472,246 | ||
Accounts receivable | 327,397 | 347,837 | ||||
Other current assets | 92,964 | 79,865 | ||||
Property, plant and equipment, net | 3,026,100 | 2,898,728 | $ 3,348,498 | |||
Other long-term assets | 160,970 | 179,200 | ||||
Total assets | [1] | 4,729,854 | 5,277,965 | |||
Liabilities: | ||||||
Accounts payable | 314,041 | 294,442 | ||||
Other liabilities | 377,671 | 270,014 | ||||
Total liabilities | [1] | 3,514,459 | 3,996,880 | |||
SANAD | ||||||
Joint Ventures | ||||||
Cash contribution for capitalizing the joint venture upon formation | $ 20,000 | |||||
Additional contribution amount | $ 394,000 | |||||
Maturity period | 25 years | |||||
SANAD | ||||||
Joint Ventures | ||||||
Redeemable noncontrolling interest | 393,800 | 423,600 | ||||
Settled accrued interest | 20,600 | |||||
Assets: | ||||||
Cash and cash equivalents | 302,949 | 281,329 | ||||
Accounts receivable | 92,922 | 86,461 | ||||
Other current assets | 14,750 | 12,461 | ||||
Property, plant and equipment, net | 489,358 | 646,215 | ||||
Other long-term assets | 21,278 | 25,099 | ||||
Total assets | 921,257 | 1,051,565 | ||||
Liabilities: | ||||||
Accounts payable | 62,409 | 88,432 | ||||
Accrued liabilities | 6,639 | 10,301 | ||||
Other liabilities | 36,312 | 38,524 | ||||
Total liabilities | $ 105,360 | $ 137,257 | ||||
[1] The consolidated balance sheets include assets and liabilities of consolidated joint ventures. See Note 13—Joint Ventures for additional information. |
Related-Party Transactions (Det
Related-Party Transactions (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |||
Jul. 31, 2023 | Nov. 30, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Joint Venture | |||||
Related-Party Transactions | |||||
Revenue from related party | $ 782.7 | $ 682.7 | $ 617.5 | ||
Accounts receivable from affiliated entities | 92.7 | 97 | |||
Split dollar life insurance agreements | Current and former key employees | |||||
Related-Party Transactions | |||||
Premium payments to date related to life insurance policies | 6.6 | ||||
Cash surrender value included in other long-term assets | 4.9 | 5.1 | |||
Premiums paid related to agreements | 0 | 0 | 0 | ||
Services provided by Crane Capital | Directors | |||||
Related-Party Transactions | |||||
Expenses from business transactions | 13.2 | 11.4 | $ 5.8 | ||
Accounts payable to affiliated entities | $ 2 | $ 2.7 | |||
NETC | IPO | |||||
Related-Party Transactions | |||||
Units issued | 27,600,000 | ||||
NETC | Private Placement | |||||
Related-Party Transactions | |||||
Warrants Issued | 13,730,000 | ||||
Warrants issued, fair value per warrant | $ 1 | ||||
Warrants purchased by related parties | 6,288,500 | ||||
NETC II | IPO | |||||
Related-Party Transactions | |||||
Units issued | 30,500,000 | ||||
NETC II | Private Placement | |||||
Related-Party Transactions | |||||
Warrants Issued | 9,540,000 | ||||
Warrants issued, fair value per warrant | $ 1 | ||||
Warrants purchased by related parties | 4,348,000 |
Commitments and Contingencies -
Commitments and Contingencies - Commitments (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) item | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Commitments and Contingencies | |||
Rental expense relating to operating leases | $ | $ 17.2 | $ 15 | $ 9.3 |
Minimum | |||
Commitments and Contingencies | |||
Lease term | 30 days | 30 days | 30 days |
Joint Venture | |||
Commitments and Contingencies | |||
Number of drilling units to backstop entity share to purchase in the event of insufficient cash | item | 25 |
Commitments and Contingencies_2
Commitments and Contingencies - Litigation (Details) - Court of Ouargla Algeria Foreign Currency Controls $ in Millions | 1 Months Ended |
Mar. 31, 2011 USD ($) | |
Commitments and Contingencies | |
Litigation amount as per judgment | $ 21 |
Payment of contract amount in foreign currency | 7.5 |
Payment of contract amount in domestic currency | 3.2 |
Maximum | |
Commitments and Contingencies | |
Potential judgment in excess of accrual | $ 13 |
Commitments and Contingencies_3
Commitments and Contingencies - Off-Balance Sheet Arrangements (Details) - Financial standby letters of credit and other financial surety instruments $ in Thousands | Dec. 31, 2023 USD ($) |
Summary of total maximum amount of financial guarantees issued | |
2024 | $ 34,011 |
2025 | 61 |
2026 | 9,057 |
Thereafter | 4,109 |
Total | $ 47,238 |
Earnings (Losses) Per Share - R
Earnings (Losses) Per Share - Reconciliation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Net income (loss) (numerator): | |||
Income (loss), net of tax | $ 49,904 | $ (307,218) | $ (543,710) |
Less: net (income) loss attributable to noncontrolling interest | (61,688) | (43,043) | (25,582) |
Less: deemed dividends to SPAC public shareholders | (8,638) | ||
Less: accrued distribution on redeemable noncontrolling interest in subsidiary | (29,824) | (10,324) | (9,445) |
Less: preferred stock dividend | (3,653) | ||
Adjusted income (loss), net of tax - basic | $ (50,246) | $ (360,585) | (582,390) |
Income (loss) from discontinued operations, net of tax | $ 20 | ||
Weighted-average number of shares outstanding - basic | 9,159 | 8,898 | 7,605 |
Earnings (losses) per share: | |||
Basic from continuing operations | $ (5.49) | $ (40.52) | $ (76.58) |
Basic from discontinued operations | |||
Total Basic (in dollars per share) | $ (5.49) | $ (40.52) | $ (76.58) |
DILUTED EPS: | |||
Adjusted income (loss), net of tax - diluted | $ (50,246) | $ (360,585) | $ (582,390) |
Net income (loss) from discontinued operations | $ 20 | ||
Weighted-average number of shares outstanding - diluted | 9,159 | 8,898 | 7,605 |
Earnings (losses) per share: | |||
Diluted from continuing operations | $ (5.49) | $ (40.52) | $ (76.58) |
Diluted from discontinued operations | |||
Total Diluted (in dollars per share) | $ (5.49) | $ (40.52) | $ (76.58) |
Earnings (Losses) Per Share - E
Earnings (Losses) Per Share - Exclusions from Diluted Earnings (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings (Losses) Per Share | |||
Potentially dilutive securities excluded as anti-dilutive | 3,381 | 3,369 | 4,436 |
1.75% senior exchangeable notes due June 2029 | |||
Earnings (Losses) Per Share | |||
Interest rate on senior notes (as a percent) | 1.75% | ||
Conversion of 1.75% senior exchangeable notes due June 2029 | |||
Earnings (Losses) Per Share | |||
Interest rate on senior notes (as a percent) | 1.75% | ||
Conversion of 1.75% senior exchangeable notes due June 2029 | 1.75% senior exchangeable notes due June 2029 | |||
Earnings (Losses) Per Share | |||
Potentially dilutive securities excluded as anti-dilutive | 1,200 |
Supplemental Balance Sheet an_3
Supplemental Balance Sheet and Income Statement Information - Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Accrued liabilities | ||
Accrued compensation | $ 58,769 | $ 64,926 |
Deferred revenue | 29,233 | 37,808 |
Other taxes payable | 41,322 | 39,621 |
Workers' compensation liabilities | 6,588 | 6,588 |
Interest payable | 57,607 | 69,174 |
Litigation reserves | 19,924 | 18,681 |
Other accrued liabilities | 16,797 | 10,777 |
Total accrued liabilities | $ 230,240 | $ 247,575 |
Supplemental Balance Sheet an_4
Supplemental Balance Sheet and Income Statement Information - Investment income (loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investment income (loss) | |||
Interest and dividend income | $ 45,900 | $ 15,474 | $ 1,527 |
Gains (losses) on marketable securities | (2,080) | (482) | 30 |
Investment income (loss) | $ 43,820 | $ 14,992 | $ 1,557 |
Supplemental Balance Sheet an_5
Supplemental Balance Sheet and Income Statement Information - Other, net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other, net | |||
Losses on sales, disposals and involuntary conversions of long-lived assets | $ 13,923 | $ 7,350 | $ 23,883 |
Purchase of technology | 14,733 | ||
Energy transition initiatives | 11,795 | ||
Warrant and derivative valuation | (54,948) | 95,876 | |
Litigation expenses and reserves | 26,451 | 15,160 | 8,290 |
Foreign currency transaction losses | 37,285 | 6,689 | 4,807 |
(Gain) loss on debt buyback | (25,274) | (4,597) | (13,423) |
Other losses (gains) | (9,958) | 6,621 | 1,708 |
Total other, net | $ (726) | $ 127,099 | $ 39,998 |
Supplemental Balance Sheet an_6
Supplemental Balance Sheet and Income Statement Information - Accumulated other comprehensive income (loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Changes in accumulated other comprehensive income (loss) | |||
Beginning balance | $ 368,956 | ||
Other comprehensive income (loss), net of tax | 206 | $ (404) | $ 490 |
Ending balance | 326,614 | 368,956 | |
Accumulated Other Comprehensive Income | |||
Changes in accumulated other comprehensive income (loss) | |||
Beginning balance | (11,038) | (10,634) | |
Other comprehensive income (loss) before reclassifications | 45 | (564) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 161 | 160 | |
Other comprehensive income (loss), net of tax | 206 | (404) | |
Ending balance | (10,832) | (11,038) | (10,634) |
Gains (losses) on cash flow hedges | |||
Changes in accumulated other comprehensive income (loss) | |||
Beginning balance | 2 | 2 | |
Ending balance | 2 | 2 | 2 |
Defined benefit pension plan items | |||
Changes in accumulated other comprehensive income (loss) | |||
Beginning balance | (3,767) | (5,356) | |
Other comprehensive income (loss) before reclassifications | 1,429 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 161 | 160 | |
Other comprehensive income (loss), net of tax | 161 | 1,589 | |
Ending balance | (3,606) | (3,767) | (5,356) |
Foreign currency items | |||
Changes in accumulated other comprehensive income (loss) | |||
Beginning balance | (7,273) | (5,280) | |
Other comprehensive income (loss) before reclassifications | 45 | (1,993) | |
Other comprehensive income (loss), net of tax | 45 | (1,993) | |
Ending balance | $ (7,228) | $ (7,273) | $ (5,280) |
Supplemental Balance Sheet an_7
Supplemental Balance Sheet and Income Statement Information - Items reclassified to net income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Supplemental Balance Sheet and Income Statement Information | |||
General and administrative expenses | $ 244,147 | $ 228,431 | $ 213,559 |
Total income (loss) before income tax | 129,124 | (245,682) | (488,089) |
Tax expense (benefit) | 79,220 | 61,536 | 55,621 |
Net income (loss) | 49,904 | (307,218) | (543,690) |
Reclassification out of Accumulated Other Comprehensive Income | |||
Supplemental Balance Sheet and Income Statement Information | |||
General and administrative expenses | 209 | 208 | 208 |
Total income (loss) before income tax | (209) | (208) | (208) |
Tax expense (benefit) | (48) | (48) | (48) |
Net income (loss) | $ (161) | $ (160) | $ (160) |
Supplemental Balance Sheet, Inc
Supplemental Balance Sheet, Income Statement and Cash Flow Information - Supplemental cash flow information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Supplemental cash flow information | |||
Cash paid for income taxes (refunded), net | $ 49,486 | $ 29,191 | $ 11,221 |
Cash paid for interest, net of capitalized interest | 186,923 | 189,755 | 161,932 |
Net change in accounts payable related to capital expenditures | $ 10,363 | $ 8,615 | $ 9,713 |
Segment Information - Operating
Segment Information - Operating revenues (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Segment Information | |||
Number of reportable segments | segment | 5 | ||
Operating revenues | $ 3,005,981 | $ 2,653,766 | $ 2,017,548 |
Operating segments | U.S. Drilling | |||
Segment Information | |||
Operating revenues | 1,207,629 | 1,100,614 | 669,656 |
Operating segments | Canada Drilling | |||
Segment Information | |||
Operating revenues | 39,336 | ||
Operating segments | International Drilling | |||
Segment Information | |||
Operating revenues | 1,345,249 | 1,199,282 | 1,043,197 |
Operating segments | Drilling Solutions | |||
Segment Information | |||
Operating revenues | 301,757 | 243,349 | 172,473 |
Operating segments | Rig Technologies | |||
Segment Information | |||
Operating revenues | 242,768 | 195,129 | 149,273 |
Other reconciling items | |||
Segment Information | |||
Operating revenues | $ (91,422) | $ (84,608) | $ (56,387) |
Segment Information - Adjusted
Segment Information - Adjusted operating income (loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Information | |||
Total segment adjusted operating income (loss) | $ 433,707 | $ 194,401 | $ (80,787) |
Operating segments | |||
Segment Information | |||
Total segment adjusted operating income (loss) | 433,707 | 194,401 | (80,787) |
Operating segments | U.S. Drilling | |||
Segment Information | |||
Total segment adjusted operating income (loss) | 262,353 | 108,506 | (76,492) |
Operating segments | Canada Drilling | |||
Segment Information | |||
Total segment adjusted operating income (loss) | 2,893 | ||
Operating segments | International Drilling | |||
Segment Information | |||
Total segment adjusted operating income (loss) | 40,868 | (879) | (40,117) |
Operating segments | Drilling Solutions | |||
Segment Information | |||
Total segment adjusted operating income (loss) | 110,957 | 77,868 | 32,771 |
Operating segments | Rig Technologies | |||
Segment Information | |||
Total segment adjusted operating income (loss) | $ 19,529 | $ 8,906 | $ 158 |
Segment Information - Reconcili
Segment Information - Reconciliation of segment adjusted operating income (loss) to net income (loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of segment adjusted operating income (loss) to net income (loss) from continuing operations before income taxes: | |||
Net income (loss) | $ 49,904 | $ (307,218) | $ (543,690) |
Income (loss) from discontinued operations, net of tax | (20) | ||
Income (loss) from continuing operations, net of tax | 49,904 | (307,218) | (543,710) |
Income tax expense (benefit) | 79,220 | 61,536 | 55,621 |
Income (loss) before income taxes | 129,124 | (245,682) | (488,089) |
Investment (income) loss | (43,820) | (14,992) | (1,557) |
Interest expense | 185,285 | 177,895 | 171,476 |
(Gain)/loss on debt buybacks and exchanges | 25,274 | 4,597 | 13,423 |
Impairments and other charges | 66,731 | ||
Other, net | (726) | 127,099 | 39,998 |
Total segment adjusted operating income (loss) | 433,707 | 194,401 | (80,787) |
Operating segments | |||
Reconciliation of segment adjusted operating income (loss) to net income (loss) from continuing operations before income taxes: | |||
Net income (loss) | 49,904 | (307,218) | (543,690) |
Income tax expense (benefit) | 79,220 | 61,536 | 55,621 |
Income (loss) before income taxes | 129,124 | (245,682) | (488,089) |
Investment (income) loss | (43,820) | (14,992) | (1,557) |
Interest expense | 185,285 | 177,895 | 171,476 |
Impairments and other charges | (66,731) | ||
Other, net | (726) | 127,099 | 39,998 |
Total segment adjusted operating income (loss) | 433,707 | 194,401 | (80,787) |
Other reconciling items | |||
Reconciliation of segment adjusted operating income (loss) to net income (loss) from continuing operations before income taxes: | |||
Other reconciling items | $ 163,844 | $ 150,081 | $ 130,654 |
Segment Information - Depreciat
Segment Information - Depreciation and amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Information | |||
Depreciation and amortization | $ 645,294 | $ 665,072 | $ 693,381 |
Operating segments | U.S. Drilling | |||
Segment Information | |||
Depreciation and amortization | 271,308 | 311,759 | 326,361 |
Operating segments | Canada Drilling | |||
Segment Information | |||
Depreciation and amortization | 11,604 | ||
Operating segments | International Drilling | |||
Segment Information | |||
Depreciation and amortization | 347,784 | 329,335 | 323,431 |
Operating segments | Drilling Solutions | |||
Segment Information | |||
Depreciation and amortization | 18,634 | 20,829 | 26,660 |
Operating segments | Rig Technologies | |||
Segment Information | |||
Depreciation and amortization | 7,864 | 5,794 | 8,191 |
Other reconciling items | |||
Segment Information | |||
Depreciation and amortization | $ (296) | $ (2,645) | $ (2,866) |
Segment Information - Capital e
Segment Information - Capital expenditures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Information | |||
Capital expenditures | $ 552,908 | $ 381,487 | $ 243,689 |
Operating segments | U.S. Drilling | |||
Segment Information | |||
Capital expenditures | 136,311 | 118,017 | 53,875 |
Operating segments | Canada Drilling | |||
Segment Information | |||
Capital expenditures | 2,938 | ||
Operating segments | International Drilling | |||
Segment Information | |||
Capital expenditures | 357,609 | 222,099 | 173,078 |
Operating segments | Drilling Solutions | |||
Segment Information | |||
Capital expenditures | 25,721 | 19,946 | 9,919 |
Operating segments | Rig Technologies | |||
Segment Information | |||
Capital expenditures | 21,229 | 15,660 | 2,790 |
Other reconciling items | |||
Segment Information | |||
Capital expenditures | $ 12,038 | $ 5,765 | $ 1,089 |
Segment Information - Total ass
Segment Information - Total assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Segment Information | |||
Total assets | [1] | $ 5,277,965 | $ 4,729,854 |
Operating segments | U.S. Drilling | |||
Segment Information | |||
Total assets | 1,239,765 | 1,389,459 | |
Operating segments | International Drilling | |||
Segment Information | |||
Total assets | 2,227,308 | 2,273,766 | |
Operating segments | Drilling Solutions | |||
Segment Information | |||
Total assets | 78,472 | 63,652 | |
Operating segments | Rig Technologies | |||
Segment Information | |||
Total assets | 239,167 | 207,345 | |
Other reconciling items | |||
Segment Information | |||
Total assets | $ 1,493,253 | $ 795,632 | |
[1] The consolidated balance sheets include assets and liabilities of consolidated joint ventures. See Note 13—Joint Ventures for additional information. |
Segment Information - Operation
Segment Information - Operations by geographic area (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) customer | Dec. 31, 2022 USD ($) customer | Dec. 31, 2021 USD ($) customer | |
Segment Information | |||
Operating revenues | $ 3,005,981 | $ 2,653,766 | $ 2,017,548 |
Property, plant and equipment, net | $ 2,898,728 | $ 3,026,100 | $ 3,348,498 |
Customer Concentration Risk | Major customers | |||
Segment Information | |||
Number of customers representing more than 10% of revenues | customer | 1 | 1 | 1 |
Sales Revenue | Customer Concentration Risk | Major customers | |||
Segment Information | |||
Concentration risk (as a percent) | 26% | 26% | 31% |
U.S. | |||
Segment Information | |||
Operating revenues | $ 1,477,774 | $ 1,323,531 | $ 804,807 |
Property, plant and equipment, net | 1,304,686 | 1,437,333 | 1,648,622 |
Outside the U.S | |||
Segment Information | |||
Operating revenues | 1,528,207 | 1,330,235 | 1,212,741 |
Property, plant and equipment, net | 1,594,042 | 1,588,767 | 1,699,876 |
Saudi Arabia | |||
Segment Information | |||
Operating revenues | $ 821,100 | $ 712,800 | $ 645,000 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue Recognition | |||
Revenues | $ 3,005,981 | $ 2,653,766 | $ 2,017,548 |
Other | |||
Revenue Recognition | |||
Revenues | (91,422) | (84,608) | (56,387) |
Operating segments | Lower 48 | |||
Revenue Recognition | |||
Revenues | 1,370,484 | 1,182,838 | 679,484 |
Operating segments | U.S. Offshore Gulf Of Mexico | |||
Revenue Recognition | |||
Revenues | 129,365 | 133,201 | 137,110 |
Operating segments | Alaska | |||
Revenue Recognition | |||
Revenues | 38,870 | 65,880 | 29,265 |
Operating segments | Canada | |||
Revenue Recognition | |||
Revenues | 8,792 | 7,247 | 45,057 |
Operating segments | Middle East & Asia | |||
Revenue Recognition | |||
Revenues | 1,081,213 | 911,940 | 807,078 |
Operating segments | Latin America | |||
Revenue Recognition | |||
Revenues | 397,054 | 340,338 | 273,485 |
Operating segments | Europe, Africa & CIS | |||
Revenue Recognition | |||
Revenues | 71,625 | 96,930 | 102,456 |
Operating segments | U.S. Drilling | |||
Revenue Recognition | |||
Revenues | 1,207,629 | 1,100,614 | 669,656 |
Operating segments | U.S. Drilling | Lower 48 | |||
Revenue Recognition | |||
Revenues | 1,052,274 | 913,932 | 512,880 |
Operating segments | U.S. Drilling | U.S. Offshore Gulf Of Mexico | |||
Revenue Recognition | |||
Revenues | 118,218 | 122,536 | 128,323 |
Operating segments | U.S. Drilling | Alaska | |||
Revenue Recognition | |||
Revenues | 37,137 | 64,146 | 28,453 |
Operating segments | Canada Drilling | |||
Revenue Recognition | |||
Revenues | 39,336 | ||
Operating segments | Canada Drilling | Canada | |||
Revenue Recognition | |||
Revenues | 39,336 | ||
Operating segments | International Drilling | |||
Revenue Recognition | |||
Revenues | 1,345,249 | 1,199,282 | 1,043,197 |
Operating segments | International Drilling | Middle East & Asia | |||
Revenue Recognition | |||
Revenues | 943,285 | 805,944 | 706,267 |
Operating segments | International Drilling | Latin America | |||
Revenue Recognition | |||
Revenues | 341,470 | 309,320 | 251,153 |
Operating segments | International Drilling | Europe, Africa & CIS | |||
Revenue Recognition | |||
Revenues | 60,494 | 84,018 | 85,777 |
Operating segments | Drilling Solutions | |||
Revenue Recognition | |||
Revenues | 301,757 | 243,349 | 172,473 |
Operating segments | Drilling Solutions | Lower 48 | |||
Revenue Recognition | |||
Revenues | 196,252 | 157,709 | 97,354 |
Operating segments | Drilling Solutions | U.S. Offshore Gulf Of Mexico | |||
Revenue Recognition | |||
Revenues | 11,147 | 10,665 | 8,787 |
Operating segments | Drilling Solutions | Alaska | |||
Revenue Recognition | |||
Revenues | 1,733 | 1,734 | 753 |
Operating segments | Drilling Solutions | Canada | |||
Revenue Recognition | |||
Revenues | 1,522 | 1,521 | 1,342 |
Operating segments | Drilling Solutions | Middle East & Asia | |||
Revenue Recognition | |||
Revenues | 44,896 | 41,257 | 40,492 |
Operating segments | Drilling Solutions | Latin America | |||
Revenue Recognition | |||
Revenues | 44,422 | 29,515 | 22,104 |
Operating segments | Drilling Solutions | Europe, Africa & CIS | |||
Revenue Recognition | |||
Revenues | 1,785 | 948 | 1,641 |
Operating segments | Rig Technologies | |||
Revenue Recognition | |||
Revenues | 242,768 | 195,129 | 149,273 |
Operating segments | Rig Technologies | Lower 48 | |||
Revenue Recognition | |||
Revenues | 121,958 | 111,197 | 69,250 |
Operating segments | Rig Technologies | Alaska | |||
Revenue Recognition | |||
Revenues | 59 | ||
Operating segments | Rig Technologies | Canada | |||
Revenue Recognition | |||
Revenues | 7,270 | 5,726 | 4,379 |
Operating segments | Rig Technologies | Middle East & Asia | |||
Revenue Recognition | |||
Revenues | 93,032 | 64,739 | 60,319 |
Operating segments | Rig Technologies | Latin America | |||
Revenue Recognition | |||
Revenues | 11,162 | 1,503 | 228 |
Operating segments | Rig Technologies | Europe, Africa & CIS | |||
Revenue Recognition | |||
Revenues | 9,346 | 11,964 | 15,038 |
Eliminations & other | |||
Revenue Recognition | |||
Revenues | (91,422) | (84,608) | (56,387) |
Eliminations & other | Other | |||
Revenue Recognition | |||
Revenues | $ (91,422) | $ (84,608) | $ (56,387) |
Revenue Recognition - Receivabl
Revenue Recognition - Receivables, Contract Assets and Contract Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue Recognition | ||
Contract Receivables | $ 397.1 | $ 401.9 |
Contract Assets (Current) | 8.4 | 23.6 |
Contract Assets (Long-term) | 3 | 0.1 |
Contract Liabilities (Current) | 20.3 | 29.2 |
Contract Liabilities (Long-term) | $ 2 | $ 3.2 |
Percentage of contract liability balance at the beginning of the period recognized as revenue during the period | 89% | |
Percentage of contract asset balance at the beginning of the period recognized as expense | 90% | |
Percentage of contract asset balance at the beginning of the year expected to be recognized as expense during 2024 | 10% | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | ||
Revenue Recognition | ||
Percentage of remaining performance obligation to be recognized | 11% | |
Recognition period for remaining performance obligation | 12 months |
Leases - Summary (Details)
Leases - Summary (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Dec. 31, 2023 | Dec. 31, 2022 |
Leases | |||
Package of practical expedients | true | ||
Right of use assets | $ 30,650 | $ 34,504 | |
Lease liability | 31,136 | 34,569 | |
Retained earnings | $ (1,886,226) | $ (1,841,153) | |
Accounting Standards Update 2016-02 | |||
Leases | |||
Right of use assets | $ 42,800 | ||
Lease liability | 42,800 | ||
Accounting Standards Update 2016-02 | Cumulative effect period of adoption adjustment | |||
Leases | |||
Retained earnings | $ 0 |
Leases - Lease Position (Detail
Leases - Lease Position (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Operating lease assets | $ 30,650 | $ 34,504 |
Operating lease assets, Balance Sheet location | Other long-term assets | Other long-term assets |
Current liabilities: | ||
Operating lease liabilities | $ 5,423 | $ 6,784 |
Noncurrent liabilities: | ||
Operating lease liabilities | $ 25,713 | $ 27,785 |
Noncurrent operating lease liabilities, Balance Sheet location | Other long-term liabilities | Other long-term liabilities |
Total lease liabilities | $ 31,136 | $ 34,569 |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases | |||
Operating lease cost | $ 9,688 | $ 10,047 | $ 9,848 |
Short-term lease cost | 150 | 596 | 593 |
Variable lease cost | 39 | 115 | 143 |
Total lease cost | $ 9,877 | $ 10,758 | $ 10,584 |
Leases - Other Information (Det
Leases - Other Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities | |||
Operating cash flows for operating leases | $ 9,688 | $ 10,047 | $ 9,848 |
Leases - Lease Terms and Discou
Leases - Lease Terms and Discount Rates (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Lease Terms and Discount Rates | ||
Weighted-average remaining lease term - operating leases | 6 years 5 months 8 days | 6 years 11 months 15 days |
Weighted-average discount rate - operating leases | 6.82% | 6.81% |
Leases - Undiscounted Cash Flow
Leases - Undiscounted Cash Flows (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Leases | ||
2024 | $ 7,614 | |
2025 | 7,044 | |
2026 | 6,966 | |
2027 | 5,518 | |
2028 | 2,455 | |
Thereafter | 8,539 | |
Total undiscounted lease liability | 38,136 | |
Less: amount of lease payments representing interest | (7,000) | |
Long-term lease obligations | $ 31,136 | $ 34,569 |
Special Purpose Acquisition C_3
Special Purpose Acquisition Companies (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2023 USD ($) director $ / shares shares | Jul. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2023 USD ($) item $ / shares shares | Dec. 31, 2022 USD ($) | Jul. 18, 2023 USD ($) | Nov. 30, 2021 USD ($) | |
Special Purpose Acquisition Companies | ||||||
Number of Special Purpose Acquisition Companies for which the Company is a co-sponsor | item | 1 | |||||
Restricted cash held in trust | $ 315,488 | $ 315,488 | $ 284,841 | |||
SPAC deconsolidation adjustment included in Other, net | 7,200 | |||||
SPAC's effects on changes in non-controlling interest subject to possible redemption | ||||||
Balance, beginning of year | 678,604 | |||||
Balance, end of period | $ 739,075 | $ 739,075 | 678,604 | |||
Earnout Milestone One | ||||||
Special Purpose Acquisition Companies | ||||||
Exercise price of warrants eligible to be received | $ / shares | $ 12.50 | $ 12.50 | ||||
Earnout Milestone Two | ||||||
Special Purpose Acquisition Companies | ||||||
Exercise price of warrants eligible to be received | $ / shares | $ 15 | $ 15 | ||||
Vast | ||||||
Special Purpose Acquisition Companies | ||||||
Equity method investment, ownership percentage | 15% | 15% | ||||
Number of warrants | shares | 7.4 | 7.4 | ||||
Number of shares which may be purchased by each right | shares | 1 | 1 | ||||
Exercise price (in dollars per share) | $ / shares | $ 11.50 | $ 11.50 | ||||
Warrants eligible to be received | shares | 2,400,000 | 2,400,000 | ||||
Number of Nabors Industries representatives on Vast board | director | 2 | |||||
Vast | Earnout Milestone Three | ||||||
Special Purpose Acquisition Companies | ||||||
Exercise price of warrants eligible to be received | $ / shares | $ 17.50 | $ 17.50 | ||||
NETC II | IPO | ||||||
Special Purpose Acquisition Companies | ||||||
Units issued | shares | 30,500,000 | |||||
Price per unit | $ / shares | $ 10 | |||||
Proceeds from units issued | $ 305,000 | |||||
NETC II | Private Placement | ||||||
Special Purpose Acquisition Companies | ||||||
Number of warrants issued | shares | 9,540,000 | |||||
Proceeds from issuance of warrants | $ 9,500 | |||||
Value of unsecured promissory notes issued | $ 3,100 | |||||
NETC | ||||||
Special Purpose Acquisition Companies | ||||||
Restricted cash held in trust | $ 281,500 | |||||
SPAC's effects on changes in non-controlling interest subject to possible redemption | ||||||
Balance, beginning of year | $ 284,841 | 281,520 | ||||
Net earnings | 5,540 | 3,321 | ||||
Nabors deemed dividends to SPAC public shareholders | 3,055 | |||||
Noncontrolling interest deemed dividends to SPAC public shareholders | 1,774 | |||||
Redemptions and distributions of Trust Account | (295,210) | |||||
Balance, end of period | $ 0 | 0 | 284,841 | |||
NETC II | ||||||
Special Purpose Acquisition Companies | ||||||
Restricted cash held in trust | 315,500 | 315,500 | $ 308,100 | |||
SPAC's effects on changes in non-controlling interest subject to possible redemption | ||||||
Balance, beginning of year | 0 | |||||
Initial public offering | 294,474 | |||||
Net earnings | 7,438 | |||||
Nabors deemed dividends to SPAC public shareholders | 5,583 | |||||
Noncontrolling interest deemed dividends to SPAC public shareholders | 7,993 | |||||
Balance, end of period | $ 315,488 | $ 315,488 | $ 0 |
SCHEDULE II - VALUATION AND Q_2
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Allowance for doubtful accounts | |||
VALUATION AND QUALIFYING ACCOUNTS | |||
Balance at Beginning of Period | $ 52,895 | $ 67,291 | $ 69,807 |
Charged to Costs and Other Deductions | (56) | 929 | 2,870 |
Charged to Other Accounts | 56 | (192) | (393) |
Deductions | (31) | (15,133) | (4,993) |
Balance at End of Period | 52,864 | 52,895 | 67,291 |
Inventory reserve | |||
VALUATION AND QUALIFYING ACCOUNTS | |||
Balance at Beginning of Period | 23,038 | 21,931 | 23,477 |
Charged to Costs and Other Deductions | 864 | 1,107 | 392 |
Charged to Other Accounts | 418 | ||
Deductions | (2,356) | ||
Balance at End of Period | 23,902 | 23,038 | 21,931 |
Valuation allowance on deferred tax assets | |||
VALUATION AND QUALIFYING ACCOUNTS | |||
Balance at Beginning of Period | 3,839,885 | 3,754,207 | 3,616,880 |
Charged to Other Accounts | 122,315 | 85,678 | 137,327 |
Balance at End of Period | $ 3,962,200 | $ 3,839,885 | $ 3,754,207 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ (11,784) | $ (350,261) | $ (569,272) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | ITEM 9B. OTHER INFORMATION During the quarter ended December 31, 2023, none of our directors or officers (as defined in Rule 16a-1(f) of the Exchange Act) adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408 of Regulation S-K. |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |