EXHIBIT 99.1
- --------------------------------------------------------------------------------
(NABORS INDUSTRIES LOGO) NEWS RELEASE
- --------------------------------------------------------------------------------
NABORS' $0.82 - 2Q05 EPS SETS RECORD 2Q04 WAS $0.30
HAMILTON, BERMUDA, JULY 27, 2005, NABORS INDUSTRIES LTD. (AMEX: NBR), today
announced record results for the second quarter and six months ended June 30,
2005. Adjusted income derived from operating activities(1) was $173.8 million
for the current quarter compared to $46.7 million in the second quarter of last
year and $171.9 million in the first quarter of this year. Net income was $131.8
million ($0.82 per diluted share) for the current quarter compared to $46.3
million ($0.30 per diluted share) in the second quarter of last year and $127.4
million ($0.80 per diluted share) in the first quarter of this year. Operating
revenues and Earnings from Unconsolidated Affiliates totaled $770.5 million in
the current quarter compared to $531.9 million in the second quarter of last
year and $785.7 million in the first quarter of this year. For the six months
ended June 30, 2005, adjusted income derived from operating activities was
$345.8 million compared to $131.7 million in the first six months of 2004. Net
income for the first six months of 2005 was $259.2 million ($1.62 per diluted
share) compared to $118.1 million ($0.76 per diluted share) in the first six
months of 2004. Revenues and Earnings from Unconsolidated Affiliates for the
first six months of 2005 rose to $1.6 billion, up from $1.1 billion for the
first six months of 2004.
Gene Isenberg, Nabors' Chairman and Chief Executive Officer, commented, "The
remarkable potency of our markets is illustrated by the magnitude of the
sequential increase in our operating numbers achieved despite the $47 million
seasonal drop in Canada's results. The largest improvement came from our U.S.
Lower 48 Land Drilling operation, which realized a larger than expected increase
in average per rig day margins and added seven rigs. The next most significant
improvement came from our U.S. Land Well-Servicing unit where pricing continued
to move up in response to a tight supply/demand dynamic. Our U.S. Offshore unit
also posted a substantial increase with improved pricing, slightly higher
utilization and the final settlement of our business interruption claim that
stemmed from the loss of platform rig P-141 during hurricane Ivan last fall. Our
International unit posted solid improvement on higher activity, as did our Oil
and Gas operations. Our manufacturing and construction businesses (Other
Operating Segments) also realized a substantial increase, primarily as a result
of a good construction season in Alaska, higher directional drilling activity
and pricing for Ryan, and improving results in Marine transportation. Alaska
drilling was better than expected although seasonally lower than the first
quarter.
"Our financial position continues to get even stronger with an excellent balance
sheet that includes net debt at 12 percent. Strong cash flow is funding
virtually all of our programs including this quarter's repurchase of
- -------------------------
(1) Adjusted income derived from operating activities is computed by:
subtracting direct costs, general and administrative expenses, depreciation and
amortization, and depletion expense from Operating revenues and then adding
Earnings from unconsolidated affiliates. Such amounts should not be used as a
substitute to those amounts reported under accounting principles generally
accepted in the United States of America (GAAP). However, management evaluates
the performance of our business units and the consolidated company based on
several criteria, including adjusted income derived from operating activities,
because it believes that this financial measure is an accurate reflection of the
ongoing profitability of our company. A reconciliation of this non-GAAP measure
to income before income taxes, which is a GAAP measure, is provided within the
table set forth immediately following the heading "Segment Reporting."
$80.6 million in stock (1.5 million shares at an average cost of $53.73 per
share) and an accelerated capital spending program that is likely to exceed $1
billion this year.
"The outlook for our business has never been stronger, with rig demand showing
no signs of abating in both North America and internationally. Consequently, we
are accelerating our construction program to address the need for faster moving
and more efficient rigs. Since mid-2000 our global operations have deployed
approximately 200 rigs, many of which were substantially upgraded with the
latest in pipe handling systems, larger horsepower pumps, and electronically
controlled, higher horsepower engines, and reconfigured to facilitate more
efficient moves. Over 100 of these rigs have been completed and deployed in the
last 18 months, and our assessment of demand indicates there is a possibility
that Nabors will realize opportunities to deploy another 100 over the next 24
months. We will continue to require term-contracts with each new rig virtually
assuring good returns and more importantly, allowing the customers to determine
the pace of capacity additions.
"Our U.S. Lower 48 Land Drilling operation has seen the largest number of rig
additions and is currently preparing 10 more for service, three of which will be
essentially new PACE rigs like the one deployed in the Rockies during the
quarter. Shell attested to the quality and performance of these rigs when they
named one of the two pad drilling rigs they employ in the Pinedale Anticline as
their "Land Rig of the Year," a selection based upon superior safety and
operational performance when compared to all of the land rigs Shell contracts
worldwide. On June 30th we completed the acquisition of the assets of Alexander
Drilling, which consisted of 8 rigs and 5 air drilling packages and an operating
base. The rigs range from 500 to 750 horsepower. Alexander was a well regarded
contractor and this acquisition significantly increases our share of the Arkoma
air drilling market. Our U.S. Land Well-Servicing unit is currently taking
delivery of the first of 40 new PLC (Programmable Logic Controlled), 500 HP
Millennium workover rigs which will be placed in service over the next 18
months. The positive reaction of our customers to the performance of the first
such unit, deployed one year ago, has exceeded our expectations and led to
commitments for these rigs well ahead of the delivery schedule.
"In Canada we have fifteen rigs under construction for use in that market along
with another 10 A/C coiled tubing/stem drilling rigs. In our U.S. Offshore
business we recently completed construction of Sundowner XIX, which is currently
deploying to the U.S. Gulf of Mexico. The success of our deep shelf drilling
barge 300, which was completed one year ago, has resulted in our decision to
proceed with construction of posted barge rig 301, which will be a PACE rig with
broader application than rig 300 with the same deep shelf drilling capability.
"Internationally, our second Sundowner platform workover rig commenced
operations on a long-term contract offshore India during the quarter. A number
of high value new contracts were signed during the quarter, including two 3,000
HP A/C rigs which are finishing construction in Dubai and are expected to
commence drilling for the Luksar joint venture in the Kingdom of Saudi Arabia by
early first quarter. We also executed contracts for two new 1,000 HP high spec
rigs for the Sincor venture in Venezuela, both of which should commence in the
fourth quarter, and a multi-year contact for the Dolphin 110 Jackup workover
rig, which will be upgraded and redeployed from the U.S. Gulf of Mexico to
Angola. Internationally, we are also constructing the fourth unit of our unique
MODS rigs (MODS 151) for a term-contract for Shell offshore Australia that
should also commence around the end of this year. There are also numerous
proposals pending internationally which should materialize in the near future
and which, if successful, would result in another 10-15 long-term rig contracts.
"The strength of the current market environment and the inability of the
industry to satisfy demand over the foreseeable future is placing a premium on
existing rigs. As a result prices are rising rapidly, particularly in the U.S.
Lower 48. We are entering into an increasing number of long-term contracts for
existing rigs at margins that are more than 25% above those achieved this
quarter. Similarly, global market demand is also placing a
premium on newer, more efficient rigs that can be delivered both expeditiously
and in quantity in a multitude of venues. This gives Nabors' a substantial
competitive advantage given our unique access to a global suite of customers,
our worldwide infrastructure and the unparalleled volume and strength of our
procurement relationships."
The Nabors companies own and operate almost 600 land drilling and approximately
875 land workover and well-servicing rigs worldwide. Offshore, Nabors operates
43 platform rigs, 19 jack-up units and three barge rigs in the United States and
multiple international markets. Nabors markets 28 marine transportation and
supply vessels, primarily in the U.S. Gulf of Mexico. In addition, Nabors
manufactures top drives and drilling instrumentation systems and provides
comprehensive oilfield hauling, engineering, civil construction, logistics and
facilities maintenance, and project management services. Nabors participates in
most of the significant oil, gas and geothermal markets in the world.
The information above includes forward-looking statements within the meaning of
the Securities Act of 1933 and the Securities Exchange Act of 1934. Such
forward-looking statements are subject to certain risks and uncertainties, as
disclosed by Nabors from time to time in its filings with the Securities and
Exchange Commission. As a result of these factors, Nabors actual results may
differ materially from those indicated or implied by such forward-looking
statements.
For further information, please contact Dennis A. Smith, Director of Corporate
Development of Nabors Corporate Services, Inc. at (281) 775-8038. To request
Investor Materials, call our corporate headquarters in Hamilton, Bermuda at
(441) 292-1510 or via email at dan.mclachlin@nabors.com. Nabors will conduct a
conference call to discuss the quarter's results and the near-term outlook,
tomorrow July 28, 2005, at 11:00 a.m. Eastern Daylight Time. The call can be
accessed on our website at www.nabors.com, or through First Call at
www.firstcallevents.com.
NABORS INDUSTRIES LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
<Table>
<Caption>
THREE MONTHS ENDED SIX MONTHS ENDED
----------------------------------------- --------------------------
JUNE 30, MARCH 31, JUNE 30,
-------------------------- ------------ --------------------------
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) 2005 2004 2005 2005 2004
------------ ------------ ------------ ------------ ------------
Revenues and other income:
Operating revenues $ 765,337 $ 530,715 $ 783,728 $ 1,549,065 $ 1,123,696
Earnings from unconsolidated affiliates 5,204 1,153 2,003 7,207 4,975
Investment income 15,578 8,631 11,788 27,366 20,884
------------ ------------ ------------ ------------ ------------
Total revenues and other income 786,119 540,499 797,519 1,583,638 1,149,555
------------ ------------ ------------ ------------ ------------
Costs and other deductions:
Direct costs 454,584 368,941 474,626 929,210 758,981
General and administrative expenses 59,805 45,441 58,641 118,446 91,040
Depreciation and amortization 70,982 60,843 68,188 139,170 121,331
Depletion 11,343 9,977 12,353 23,696 25,587
Interest expense 11,333 11,387 10,737 22,070 27,246
Losses (gains) on sales of long-lived assets,
impairment charges and other expense (income), net 4,223 (6,155) 3,871 8,094 (4,826)
------------ ------------ ------------ ------------ ------------
Total costs and other deductions 612,270 490,434 628,416 1,240,686 1,019,359
------------ ------------ ------------ ------------ ------------
Income before income taxes 173,849 50,065 169,103 342,952 130,196
Income tax expense 42,044 3,717 41,689 83,733 12,131
------------ ------------ ------------ ------------ ------------
Net income $ 131,805 $ 46,348 $ 127,414 $ 259,219 $ 118,065
============ ============ ============ ============ ============
Earnings per share (1):
Basic $ .84 $ .31 $ .84 $ 1.67 $ .80
Diluted $ .82 $ .30 $ .80 $ 1.62 $ .76
Weighted-average number of common shares outstanding (1):
Basic 157,440 148,866 152,165 154,803 148,425
------------ ------------ ------------ ------------ ------------
Diluted 161,212 155,234 158,777 159,996 163,417
------------ ------------ ------------ ------------ ------------
Adjusted income derived from operating activities (2) $ 173,827 $ 46,666 $ 171,923 $ 345,750 $ 131,732
============ ============ ============ ============ ============
</Table>
(1) See "Computation of Earnings Per Share" included herein as a separate
schedule.
(2) Adjusted income derived from operating activities is computed by:
subtracting direct costs, general and administrative expenses,
depreciation and amortization, and depletion expense from Operating
revenues and then adding Earnings from unconsolidated affiliates. Such
amounts should not be used as a substitute to those amounts reported
under accounting principles generally accepted in the United States of
America (GAAP). However, management evaluates the performance of our
business units and the consolidated company based on several criteria,
including adjusted income derived from operating activities, because it
believes that this financial measure is an accurate reflection of the
ongoing profitability of our company. A reconciliation of this non-GAAP
measure to income before income taxes, which is a GAAP measure, is
provided within the table set forth immediately following the heading
"Segment Reporting".
1-1
NABORS INDUSTRIES LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
<Table>
<Caption>
JUNE 30, MARCH 31, DECEMBER 31,
(IN THOUSANDS, EXCEPT RATIOS) 2005 2005 2004
------------ ------------ ------------
ASSETS
Current assets:
Cash and short-term investments $ 1,061,288 $ 1,008,481 $ 900,551
Accounts receivable, net 619,330 646,598 540,103
Other current assets 152,597 137,342 140,320
------------ ------------ ------------
Total current assets 1,833,215 1,792,421 1,580,974
Long-term investments 518,070 545,975 510,496
Property, plant and equipment, net 3,460,599 3,358,068 3,275,495
Goodwill, net 331,635 331,251 327,225
Other long-term assets 165,073 160,512 168,419
------------ ------------ ------------
Total assets $ 6,308,592 $ 6,188,227 $ 5,862,609
============ ============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 814,607 $ 809,562 $ 804,550
Other current liabilities 426,923 431,117 394,766
------------ ------------ ------------
Total current liabilities 1,241,530 1,240,679 1,199,316
Long-term debt 1,203,409 1,196,389 1,201,686
Other long-term liabilities 573,044 532,728 532,214
------------ ------------ ------------
Total liabilities 3,017,983 2,969,796 2,933,216
Shareholders' equity 3,290,609 3,218,431 2,929,393
------------ ------------ ------------
Total liabilities and shareholders' equity $ 6,308,592 $ 6,188,227 $ 5,862,609
============ ============ ============
Cash, short-term and long-term investments $ 1,579,358 $ 1,554,456 $ 1,411,047
Funded debt to capital ratio:
- Gross 0.38 : 1 0.38 : 1 0.41 : 1
- Net of cash and investments 0.12 : 1 0.12 : 1 0.17 : 1
Interest coverage ratio: 21 : 1 17.8 : 1 14.1 : 1
</Table>
1-2
NABORS INDUSTRIES LTD. AND SUBSIDIARIES
SEGMENT REPORTING
(UNAUDITED)
The following tables set forth certain information with respect to our
reportable segments and rig activity:
<Table>
<Caption>
THREE MONTHS ENDED SIX MONTHS ENDED
------------------------------------------ ---------------------------
JUNE 30, MARCH 31, JUNE 30,
--------------------------- ------------ ---------------------------
(IN THOUSANDS, EXCEPT RIG ACTIVITY) 2005 2004 2005 2005 2004
------------ ------------ ------------ ------------ ------------
Reportable segments:
Operating revenues and Earnings from
unconsolidated affiliates:
Contract Drilling: (1)
U.S. Lower 48 Land Drilling $ 300,700 $ 172,049 $ 258,990 $ 559,690 $ 325,417
U.S. Land Well-servicing 118,776 88,162 106,113 224,889 167,641
U.S. Offshore 45,130 31,556 38,067 83,197 62,877
Alaska 21,955 19,701 24,768 46,723 49,038
Canada 76,720 61,905 173,402 250,122 200,671
International 135,168 107,185 124,030 259,198 210,172
------------ ------------ ------------ ------------ ------------
Subtotal Contract Drilling (2) 698,449 480,558 725,370 1,423,819 1,015,816
Oil and Gas (3) 15,218 14,173 15,299 30,517 35,299
Other Operating Segments (4) (5) 78,729 52,740 68,916 147,645 108,678
Other reconciling items (6) (21,855) (15,603) (23,854) (45,709) (31,122)
------------ ------------ ------------ ------------ ------------
Total $ 770,541 $ 531,868 $ 785,731 $ 1,556,272 $ 1,128,671
============ ============ ============ ============ ============
Adjusted income (loss) derived from operating activities:
Contract Drilling: (1)
U.S. Lower 48 Land Drilling $ 101,813 $ 12,971 $ 73,459 $ 175,272 $ 21,539
U.S. Land Well-servicing 26,401 14,394 19,428 45,829 24,127
U.S. Offshore 12,498 4,796 7,011 19,509 9,613
Alaska 4,159 3,756 5,972 10,131 10,966
Canada 57 2,851 47,280 47,337 46,123
International 32,558 18,753 29,767 62,325 37,344
------------ ------------ ------------ ------------ ------------
Subtotal Contract Drilling (2) 177,486 57,521 182,917 360,403 149,712
Oil and Gas (3) 2,869 896 874 3,743 5,402
Other Operating Segments (4) (5) 7,982 (2,106) 3,550 11,532 (2,537)
Other reconciling items (7) (14,510) (9,645) (15,418) (29,928) (20,845)
------------ ------------ ------------ ------------ ------------
Total 173,827 46,666 171,923 345,750 131,732
Interest expense (11,333) (11,387) (10,737) (22,070) (27,246)
Investment income 15,578 8,631 11,788 27,366 20,884
Gains (losses) on sales of long-lived assets,
impairment charges and other income (expense), net (4,223) 6,155 (3,871) (8,094) 4,826
------------ ------------ ------------ ------------ ------------
Income before income taxes $ 173,849 $ 50,065 $ 169,103 $ 342,952 $ 130,196
============ ============ ============ ============ ============
Rig activity:
Rig years: (8)
U.S. Lower 48 Land Drilling 229.3 193.4 222.4 225.9 184.4
U.S. Offshore 17.2 15.5 15.6 16.4 14.6
Alaska 6.8 6.7 6.7 6.7 7.2
Canada 26.2 25.8 66.2 46.1 44.5
International (9) 83.4 65.6 75.2 79.3 65.3
------------ ------------ ------------ ------------ ------------
Total rig years 362.9 307.0 386.1 374.4 316.0
============ ============ ============ ============ ============
Rig hours: (10)
U.S. Land Well-servicing 308,718 287,350 296,611 605,329 562,498
Canada Well-servicing 60,297 67,873 114,336 174,633 185,469
------------ ------------ ------------ ------------ ------------
Total rig hours 369,015 355,223 410,947 779,962 747,967
============ ============ ============ ============ ============
</Table>
(1) These segments include our drilling, workover and well-servicing
operations, on land and offshore.
(2) Includes Earnings from unconsolidated affiliates, accounted for by the
equity method, of $1.2 million, $1.1 million
1-3
and $0.7 million for the three months ended June 30, 2005 and 2004 and
March 31, 2005, respectively, and $1.9 million and $2.2 million for the
six months ended June 30, 2005 and 2004, respectively.
(3) Represents our oil and gas exploration, development and production
operations.
(4) Includes our marine transportation and supply services, drilling
technology and top drive manufacturing, directional drilling, rig
instrumentation and software, and construction and logistics
operations.
(5) Includes Earnings from unconsolidated affiliates, accounted for by the
equity method, of $4.0 million, $.1 million and $1.3 million for the
three months ended June 30, 2005 and 2004 and March 31, 2005,
respectively, and $5.3 million and $2.8 million for the six months
ended June 30, 2005 and 2004, respectively.
(6) Represents the elimination of inter-segment transactions.
(7) Represents the elimination of inter-segment transactions and
unallocated corporate expenses.
(8) Excludes well-servicing rigs, which are measured in rig hours. Includes
our equivalent percentage ownership of rigs owned by unconsolidated
affiliates. Rig years represents a measure of the number of equivalent
rigs operating during a given period. For example, one rig operating
182.5 days during a 365-day period represents 0.5 rig years.
(9) International rig years include our equivalent percentage ownership of
rigs owned by unconsolidated affiliates which totaled 4.0 years during
the three months ended June 30, 2005 and 2004 and 3.7 years during the
three months ended March 31, 2005, and 3.9 years and 4.0 years during
the six months ended June 30, 2005 and 2004, respectively.
(10) Rig hours represents the number of hours that our well-servicing rig
fleet operated during the period.
1-4
NABORS INDUSTRIES LTD. AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
(UNAUDITED)
A reconciliation of the numerators and denominators of the basic and diluted
earnings per share computations is as follows:
<Table>
<Caption>
THREE MONTHS ENDED SIX MONTHS ENDED
---------------------------------------- --------------------------
JUNE 30, MARCH 31, JUNE 30,
-------------------------- ------------ --------------------------
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) 2005 2004 2005 2005 2004
------------ ------------ ------------ ------------ ------------
Net income (numerator):
Net income - basic $ 131,805 $ 46,348 $ 127,414 $ 259,219 $ 118,065
Add interest expense on assumed conversion of our
zero coupon convertible/exchangeable senior
debentures/notes, net of tax:
$1.381 billion due 2021 (1) -- -- -- -- 6,180
$700 million due 2023 (2) -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Adjusted net income - diluted $ 131,805 $ 46,348 $ 127,414 $ 259,219 $ 124,245
------------ ------------ ------------ ------------ ------------
Earnings per share:
Basic $ .84 $ .31 $ .84 $ 1.67 $ .80
Diluted $ .82 $ .30 $ .80 $ 1.62 $ .76
Shares (denominator):
Weighted-average number of shares outstanding - basic (3) 157,440 148,866 152,165 154,803 148,425
Net effect of dilutive stock options and warrants based
on the treasury stock method 3,772 6,368 6,612 5,193 6,501
Assumed conversion of our zero coupon
convertible/exchangeable senior debentures/notes:
$1.381 billion due 2021 (1) -- -- -- -- 8,491
$700 million due 2023 (2) -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Weighted-average number of shares outstanding - diluted 161,212 155,234 158,777 159,996 163,417
------------ ------------ ------------ ------------ ------------
</Table>
(1) Diluted earnings per share for the three months ended June 30, 2005 and
2004 and March 31, 2005 and for the six months ended June 30, 2005
excludes approximately 8.5 million potentially dilutive shares
initially issuable upon the conversion of these debentures. Such shares
did not impact our calculation of diluted earnings per share for the
three months ended June 30, 2005 and March 31, 2005, and for the six
months ended June 30, 2005 as we are required to pay cash up to the
principal amount of any debentures converted resulting from the
issuance of a supplemental indenture relating to the debentures in
October 2004. We would only issue an incremental number of shares upon
conversion of these debentures, and such shares would only be included
in the calculation of the weighted-average number of shares outstanding
in our diluted earnings per share calculation, if the price of our
shares exceeded approximately $96. Such shares did not impact our
calculation of diluted earnings per share for the three months ended
June 30, 2004 because the inclusion of such shares would have been
anti-dilutive, given the level of net income for that period. Net
income for the three months ended June 30, 2004 excludes the related
add-back of interest expense, net of tax, of $3.1 million for these
debentures. These shares would have been dilutive and therefore
included in the calculation of the weighted-average number of shares
outstanding-diluted had diluted earnings per share been at or above
$.37 for the three months ended June 30, 2004. Diluted earnings per
share for the six months ended June 30, 2004 reflects the assumed
conversion of our
1-5
$1.381 billion zero coupon convertible senior debentures due 2021, as
the conversion in that period would have been dilutive.
(2) Diluted earnings per share for the three months ended June 30, 2005 and
2004 and March 31, 2005 and for the six months ended June 30, 2005 and
2004 excludes approximately 10.0 million potentially dilutive shares
initially issuable upon the exchange of our $700 million zero coupon
senior exchangeable notes due 2023. Such shares did not impact our
calculation of diluted earnings per share for the three months ended
June 30, 2005, and March 31, 2005, and for the six months ended June
30, 2005 as we are required to pay cash up to the principal amount of
any notes exchanged as a result of the supplemental indenture issued
for these notes during the fourth quarter of 2004. We would only issue
an incremental number of shares upon exchange of these notes, and such
shares would only be included in the calculation of the
weighted-average number of shares outstanding in our diluted earnings
per share calculation, if the price of our shares exceeded $70.10. Such
shares did not impact our calculation of diluted earnings per share for
the three and six months ended June 30, 2004 as the notes are
contingently exchangeable under certain circumstances and would only be
included in the calculation of the weighted-average number of shares
outstanding-diluted if any of those criteria were met. Such criteria
were not met during the three and six months ended June 30, 2004. Based
on the initial exchange price per share, these notes would have been
exchangeable for our common shares during those periods if the closing
sale price per share of Nabors' common shares for at least 20 trading
days during the period of 30 consecutive trading days ending on the
last trading day of the previous calendar quarter was greater than or
equal to $84.12.
(3) Includes the following weighted-average number of common shares of
Nabors and weighted-average number of exchangeable shares of Nabors
Exchangeco (Canada) Inc., an indirect wholly-owned Canadian subsidiary
of Nabors, respectively: 157.2 million and .2 million shares for the
three months ended June 30, 2005; 148.6 million and .3 million shares
for the three months ended June 30, 2004; 152.0 million and .2 million
shares for the three months ended March 31, 2005; 154.6 million and .2
million shares for the six months ended June 30, 2005; and 148.1
million and .3 million shares for the six months ended June 30, 2004.
The exchangeable shares of Nabors Exchangeco are exchangeable for
Nabors common shares on a one-for-one basis, and have essentially
identical rights as Nabors Industries Ltd. common shares, including but
not limited to voting rights and the right to receive dividends, if
any.
1-6