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Section 1: 8-K (FORM 8-K)

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 8-K

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported): February 20, 2020

 

NABORS INDUSTRIES LTD.

(Exact name of registrant as specified in its charter)

 

Bermuda   001-32657   98-0363970
(State or Other Jurisdiction of
Incorporation or Organization)
  (Commission File Number)   (I.R.S. Employer
Identification No.)

 

Crown House
4 Par-la-Ville Road
Second Floor
Hamilton, HM08 Bermuda
  N/A
(Address of principal executive offices)   (Zip Code)

 

(441) 292-1510

(Registrant’s telephone number, including area code)

 

N/A

(Former name or former address, if changed since last report.)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act: 

Title of each class   Trading Symbol(s)   Name of exchange on which
registered
Common shares   NBR   NYSE
Preferred shares – Series A   NBR.PRA   NYSE

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ¨

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

 

 

 

 

 

Item 2.02 Results of Operations and Financial Condition.

 

On February 20, 2020, Nabors Industries Ltd. (“Nabors”) issued a press release announcing its results of operations for the three months ended December 31, 2019. A copy of that release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.

 

On February 21, 2020, Nabors will hold a conference call at 10 a.m. Central Time, regarding the Company’s financial results for the quarter and year ended December 31, 2019. Information about the call – including dial-in information, recording and replay of the call, and supplemental information – is available on the Investor Relations page of www.nabors.com.

 

The information in this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act, of 1934 or otherwise subject to liabilities of that Section or Sections 11 and 12(a)(2) of the Securities Act of 1933.

 

Item 7.01 Regulation FD Disclosure.

 

On February 20, 2020, the Nabors Board declared cash dividends of (i) $0.01 per outstanding Common Share, par value $0.001 per share, which will be paid on April 2, 2020, to holders of record at the close of business on March 12, 2020, and (ii) $0.75 per outstanding share of our 6.00% Mandatory Convertible Preferred Shares, Series A, par value $0.001 per share, which will be paid on May 1, 2020, to holders of record at the close of business on April 15, 2020.

 

The information in this Current Report on Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended.

 

Item 9.01 Financial Statements and Exhibits.

 

(d) Exhibits

 

Exhibit No.   Description
99.1   Press Release
99.2   Investor Information
104   Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

 

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  NABORS INDUSTRIES LTD.
   
Date: February 20, 2020 By: /s/ Mark D. Andrews
    Mark D. Andrews
    Corporate Secretary

 

 

 

 

 

(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit 99.1

 

NEWS RELEASE

Nabors Announces Fourth Quarter 2019 Results

 

·Reduced total debt during the fourth quarter by $184 million to $3.3 billion and reduced net debt by $218 million to $2.9 billion
·Amended 2018 Credit Agreement in December 2019 to provide additional covenant flexibility
·Issued $1 billion of six- and eight-year notes in January 2020. Successfully tendered for approximately $950 million of existing ’21 and ’23 notes
·Generated cash provided by operating activities of $254 million in the fourth quarter, which translates into free cash flow of $232 million
·Averaged 98 rigs working in Lower 48 during the quarter, at average daily gross margin of $10,218

 

HAMILTON, Bermuda, February 20, 2020 /PRNewswire/ -- Nabors Industries Ltd. (“Nabors” or the “Company”) (NYSE: NBR) today reported fourth quarter 2019 operating revenues of $714 million, compared to operating revenues of $758 million in the third quarter. Net loss from continuing operations attributable to Nabors common shareholders for the quarter was $267 million, or $0.77 per share, compared to a loss of $123 million, or $0.37 per share, in the prior quarter. The fourth quarter’s net loss included the impact of the Company’s periodic review for potential asset impairments. In addition, the Company wrote down certain assets in geographic locations which have been shut down or where political risk has increased. After-tax charges totaled $186 million, or $0.53 per share, primarily related to these impairments of fixed assets, goodwill and intangibles, as well as other asset write-downs. The third quarter’s results included after-tax charges of $23.3 million, or $0.06 per share, related to a foreign tax settlement and currency losses.

 

For the fourth quarter, adjusted EBITDA was $203 million as compared to $207 million in the prior quarter. A 9.6% decline in the U.S. land rig count and a soft market for rig components were partially offset by improved drilling activity outside the U.S. and better results for Nabors Drilling Solutions.

 

Anthony G. Petrello, Nabors Chairman, CEO and President, commented, “I am pleased with our fourth-quarter results, particularly considering the decrease in industry activity in the U.S. The strength of our financial results during the quarter allowed us to reduce net debt by $218 million, to $2.88 billion. We also completed a series of transactions during and after the quarter that enhance our financial flexibility.

 

“Our operating performance further confirms that we are pursuing the correct strategic initiatives. We remain dedicated to providing our customers with a market-leading value proposition, combining the highest quality global rig fleet, crews and drilling technologies.

 

“In the U.S. Lower 48, E&P operators continued to rationalize their activity levels through the fourth quarter. Although our rig count has fallen, our daily rig margins were essentially unchanged versus the third quarter. We remain disciplined in our pricing, and our excellent operating performance has reinforced our rate structure. The demand for high-specification rigs in the major oil basins in the Lower 48 remained resilient through the end of the year. For the full year, the Company’s average Lower 48 rig count increased by 1%, in stark contrast to the industry’s decline of 9%.

 

 

 

NEWS RELEASE

 

“Our Drilling Solutions segment continued its sequential growth trajectory in the fourth quarter. For the full year, a 1% increase in revenues yielded a 34% increase in adjusted EBITDA as a result of increasing adoption of our automation and integration technologies, which have allowed us to offset the softer market in the U.S., while increasing our margins. We have a broad portfolio of advanced products and services, which enhance drilling performance and ultimately generate value for our customers as well as Nabors. Our newest NavigatorTM automated directional guidance platform has drilled more than 1000 wells, including 370 wells drilled with our ROCKit® Pilot steering control system. Today 80 percent of our directional jobs running these technologies are de-manned or manless at the rig. Our drilling automation offerings provide: consistency of drilling outcomes at the highest level; lower-cost remote operations; and fewer employees in harm’s way. These solutions continue to gain traction with our customers.”

 

Consolidated and Segment Results

 

The U.S. Drilling segment reported $113 million in adjusted EBITDA for the fourth quarter of 2019, a $7.8 million reduction from the prior quarter.  A decline in the Lower 48 was somewhat offset by a modest improvement in the U.S. Offshore. During the quarter, the Lower 48 rig count decreased by 10 rigs while average margins per rig day were stable at $10,218. The Company expects competitive pressures to reduce daily margins to approximately $10,000 in the first quarter of 2020. This segment’s rig count currently stands at 98, with 90 rigs working in the Lower 48. Based on the Company’s current outlook, the first quarter Lower 48 rig count should range between 90 and 92, and begin to increase in the second quarter.

 

International Drilling adjusted EBITDA increased sequentially by 1%, to $96 million. The quarterly average rig count declined by one to 87, while the average margin per day improved by more than $400 to $14,144. This increase was a result of additional progress from previously-implemented initiatives to improve operating costs, as well as favorable operating performance. The segment’s cash flow generation improved materially quarter over quarter. The international working rig count currently stands at 88. The Company expects first quarter adjusted EBITDA to decline slightly, due mainly to certification-related rig downtime.

 

Canada Drilling adjusted EBITDA increased significantly to $5.3 million, as that market ramps toward its usual seasonal peak. Both average daily gross margin and the average working rig count jumped during the quarter. For the first quarter of 2020, the Company expects an improvement in daily margin and a further increase in rig count.

 

In Drilling Solutions, adjusted EBITDA of $24.8 million was $1.3 million higher than the third quarter, despite the decrease in the industry rig count in the Lower 48. These results capped three consecutive increases in quarterly segment adjusted EBITDA, in the face of declining U.S. rig count over the same periods. In the fourth quarter, profitability was buoyed by an increase in higher-margin integrated tubular running services (TRS) work. In the Lower 48, integrated TRS jobs comprised 51% of fourth-quarter jobs, up from less than 3% in the first quarter this year.

 

 

 

NEWS RELEASE

 

In the Rig Technologies segment, fourth-quarter adjusted EBITDA was a loss of $1.6 million, a decrease of $3.7 million from the third quarter. That decline was mainly due to lower sales of parts, and a decrease in repair activity.

 

Capital Expenditures and Liquidity

 

Free cash flow, defined as cash provided by operating activities less cash used for investing activities, reached $232 million, as compared to $82 million in the prior quarter. The fourth quarter results included significant reductions in working capital and capital expenditures, while the third quarter results included approximately $70 million in semiannual cash interest payments.

 

William Restrepo, Nabors Chief Financial Officer, stated, “As the land drilling market in the U.S. gas basins weakened and many of our more U.S.-focused peers experienced significant drops in both EBITDA and free cash flow, Nabors delivered our strongest quarter of the year, with stable adjusted EBITDA and sharply increased free cash flow.”

 

“Capital expenditures were $61 million in the fourth quarter, $26 million less than the preceding quarter. For the full year 2019, capital expenditures totaled $424 million. For 2020 we expect capital expenditures of approximately $350 million to $370 million. With this expected reduction as well as initiatives for working capital and other items, we are targeting free cash flow of at least $300 million in 2020.

 

In December, we amended our 2018 Credit Agreement. Notably, the amendment replaced the previous capitalization covenant with a more relevant covenant comparing net funded indebtedness to EBITDA, as those terms are defined in the 2018 Credit Agreement. Following that, in January we issued $1 billion of new senior guaranteed notes, with $600 million due in 2026 and $400 million due in 2028. Those issuances were paired with a successful tender for approximately $950 million of our previously outstanding notes due in 2021 and 2023. Combined, these transactions extended the maturity of approximately $1 billion of debt by more than four years and significantly reduced nearer-term debt maturities.”

 

Mr. Petrello concluded, “Our short-term expectations have grown more cautious in North America. The impacts of the coronavirus outbreak on global economic activity in general, and oil demand specifically, are uncertain. That has resulted in downward pressure on commodity prices, which adds additional friction to what was already a slow ramp in activity in the New Year. For our International operations, the view is more positive. Activity in those markets is less responsive to short-term declines in oil prices. Demand for high specification rigs remains strong, which should continue to support an increasing rig count and higher pricing, particularly as the availability of rigs tightens.

 

“We remain more confident across all of our segments over the longer-term. Signals in the market suggest the current oil supply/demand situation will tighten. Notwithstanding the potential for near-term volatility, over time we expect improving consolidated results.

 

“Our focus on improving free cash flow, generating returns on capital, and reducing debt are unwavering. Our fourth-quarter results demonstrate that we can reach these goals.”

 

 

 

NEWS RELEASE

 

About Nabors

 

Nabors, (NYSE: NBR) owns and operates one of the world's largest land-based drilling rig fleets and provides offshore platform rigs in the United States and several international markets. Nabors also provides directional drilling services, tubular services, performance software, and innovative technologies for its own rig fleet and those of third parties. Leveraging our advanced drilling automation capabilities, Nabors highly skilled workforce continues to set new standards for operational excellence and transform our industry.

 

Forward-looking Statements

 

The information included in this press release 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 a number of 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.  The forward-looking statements contained in this press release reflect management's estimates and beliefs as of the date of this press release.  Nabors does not undertake to update these forward-looking statements. 

 

Non-GAAP Disclaimer

 

This press release presents certain “non-GAAP” financial measures.  The components of these non-GAAP measures are computed by using amounts that are determined in accordance with accounting principles generally accepted in the United States of America (“GAAP”).  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. Adjusted EBITDA is computed similarly, but also excludes depreciation and amortization expenses. In addition, adjusted EBITDA and adjusted operating income (loss) exclude certain cash expenses that the Company is obligated to make. Net debt is calculated as total debt minus the sum of cash, cash equivalents and short-term investments. Free cash flow represents net cash provided by operating activities less cash used for investing activities. Free cash flow is an indicator of our ability to generate cash flow after required spending to maintain or expand our asset base. Management believes that this non-GAAP measure is useful information to investors when comparing our cash flows with the cash flows of other companies. Each of these non-GAAP measures has limitations and therefore should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including adjusted EBITDA, adjusted operating income (loss), net debt, and free cash flow, because it believes that these financial measures accurately reflect the Company’s ongoing profitability and performance.  Securities analysts and investors also use these measures as some of the metrics on which they analyze the Company’s performance. Other companies in this industry may compute these measures differently.  Reconciliations of consolidated adjusted EBITDA and adjusted operating income (loss) to income (loss) from continuing operations before income taxes, net debt to total debt, and free cash flow to cash flow provided by operations, which are their nearest comparable GAAP financial measures, are included in the tables at the end of this press release. 

 

Media Contact:  Dennis A. Smith, Senior Vice President of Corporate Development & Investor Relations, +1 281-775-8038 or William C. Conroy, Senior Director of Corporate Development & Investor Relations, +1 281-775-2423.   To request investor materials, contact Nabors' corporate headquarters in Hamilton, Bermuda at +441-292-1510 or via e-mail [email protected]

 

 

 

NABORS INDUSTRIES LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
               
(Unaudited)

 

   Three Months Ended   Year Ended 
   December 31,   September 30,   December 31, 
(In thousands, except per share amounts)   2019    2018    2019    2019    2018 
Revenues and other income:                         
Operating revenues  $714,261   $782,080   $758,076   $3,043,383   $3,057,619 
Earnings (losses) from unconsolidated affiliates   -    -    -    (5)   1 
Investment income (loss)   1,509    (5,458)   (1,437)   10,218    (9,499)
Total revenues and other income   715,770    776,622    756,639    3,053,596    3,048,121 
                          
Costs and other deductions:                         
Direct costs   436,249    510,402    475,461    1,929,331    1,976,974 
General and administrative expenses   62,572    56,615    63,577    258,731    265,822 
Research and engineering   12,915    13,444    12,004    50,359    56,147 
Depreciation and amortization   225,824    226,643    221,557    876,091    866,870 
Interest expense   49,177    53,731    51,291    204,311    227,124 
Impairments and other charges   186,201    54,012    3,939    290,471    144,446 
Other, net   889    5,369    4,695    33,224    29,532 
Total costs and other deductions   973,827    920,216    832,524    3,642,518    3,566,915 
                          
Income (loss) from continuing operations before income taxes   (258,057)   (143,594)   (75,885)   (588,922)   (518,794)
Income tax expense (benefit)   26,476    21,957    23,903    91,576    79,269 
                          
Income (loss) from continuing operations, net of tax   (284,533)   (165,551)   (99,788)   (680,498)   (598,063)
Income (loss) from discontinued operations, net of tax   22    (71)   157    (12)   (14,663)
                          
Net income (loss)   (284,511)   (165,622)   (99,631)   (680,510)   (612,726)
                          
Less: Net (income) loss attributable to noncontrolling interest   21,827    (17,796)   (19,297)   (22,375)   (28,222)
Net income (loss) attributable to Nabors  $(262,684)  $(183,418)  $(118,928)  $(702,885)  $(640,948)
Less: Preferred stock dividend  $(4,309)  $(4,312)  $(4,310)  $(17,244)  $(12,305)
Net income (loss) attributable to Nabors common shareholders  $(266,993)  $(187,730)  $(123,238)  $(720,129)  $(653,253)
                          
Amounts attributable to Nabors common shareholders:                         
Net income (loss) from continuing operations  $(267,015)  $(187,659)  $(123,395)  $(720,117)  $(638,590)
Net income (loss) from discontinued operations   22    (71)   157    (12)   (14,663)
Net income (loss) attributable to Nabors common shareholders  $(266,993)  $(187,730)  $(123,238)  $(720,129)  $(653,253)
                          
Earnings (losses) per share:                         
Basic from continuing operations  $(0.77)  $(0.55)  $(0.37)  $(2.11)  $(1.95)
Basic from discontinued operations   -    -    -    -    (0.04)
Total Basic  $(0.77)  $(0.55)  $(0.37)  $(2.11)  $(1.99)
                          
Diluted from continuing operations  $(0.77)  $(0.55)  $(0.37)  $(2.11)  $(1.95)
Diluted from discontinued operations   -    -    -    -    (0.04)
Total Diluted  $(0.77)  $(0.55)  $(0.37)  $(2.11)  $(1.99)
                         
Weighted-average number of common shares outstanding:                         
Basic   352,135    350,236    352,026    351,617    334,397 
Diluted   352,135    350,236    352,026    351,617    334,397 
                          
                          
Adjusted EBITDA  $202,525   $201,619   $207,034   $804,962   $758,676 
                          
Adjusted operating income (loss)  $(23,299)  $(25,024)  $(14,523)  $(71,129)  $(108,194)

 

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NABORS INDUSTRIES LTD. AND SUBSIDIARIES
                 
CONDENSED CONSOLIDATED BALANCE SHEETS

 

             
   December 31,   September 30,   December 31, 
(In thousands)  2019   2019   2018 
   (Unaudited)     
ASSETS            
Current assets:               
Cash and short-term investments  $452,496   $418,937   $481,802 
Accounts receivable, net   453,042    613,527    756,320 
Assets held for sale   2,530    8,037    12,250 
Other current assets   340,598    339,847    343,191 
Total current assets   1,248,666    1,380,348    1,593,563 
Property, plant and equipment, net   4,930,549    5,152,236    5,467,870 
Goodwill   28,380    90,543    183,914 
Other long-term assets   553,063    650,370    608,597 
Total assets  $6,760,658   $7,273,497   $7,853,944 
                
LIABILITIES AND EQUITY               
Current liabilities:               
Current portion of debt  $-   $1,058   $561 
Other current liabilities   656,548    681,246    831,516 
Total current liabilities   656,548    682,304    832,077 
Long-term debt   3,333,220    3,516,592    3,585,884 
Other long-term liabilities   295,333    313,497    280,796 
Total liabilities   4,285,101    4,512,393    4,698,757 
                
Redeemable noncontrolling interest in subsidiary   425,392    420,217    404,861 
                
Equity:               
Shareholders' equity   1,982,811    2,251,705    2,700,850 
Noncontrolling interest   67,354    89,182    49,476 
Total equity   2,050,165    2,340,887    2,750,326 
Total liabilities and equity  $6,760,658   $7,273,497   $7,853,944 

 

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NABORS INDUSTRIES LTD. AND SUBSIDIARIES

                     
SEGMENT REPORTING
(Unaudited)
                     
The following tables set forth certain information with respect to our reportable segments and rig activity:    

 

   Three Months Ended   Year Ended 
   December 31,   September 30,   December 31, 
(In thousands, except rig activity)   2019    2018    2019    2019    2018 
Operating revenues:                         
U.S. Drilling  $289,517   $303,834   $307,808   $1,240,936   $1,083,227 
Canada Drilling   19,379    29,026    12,191    68,274    105,000 
International Drilling   331,703    345,082    328,278    1,324,142    1,469,038 
Drilling Solutions   60,499    66,812    62,286    252,790    250,242 
Rig Technologies (1)   52,616    61,357    63,106    260,226    270,988 
Other reconciling items (2)   (39,453)   (24,031)   (15,593)   (102,985)   (120,876)
Total operating revenues  $714,261   $782,080   $758,076   $3,043,383   $3,057,619 
                          
Adjusted EBITDA: (3)                         
U.S. Drilling  $113,128   $113,945   $120,936   $483,993   $373,288 
Canada Drilling   5,302    9,450    1,466    15,283    31,006 
International Drilling   96,155    94,030    95,214    363,980    457,448 
Drilling Solutions   24,776    23,025    23,471    91,754    68,663 
Rig Technologies (1)   (1,569)   (1,274)   2,173    1,468    (9,375)
Other reconciling items (4)   (35,267)   (37,557)   (36,226)   (151,516)   (162,354)
Total adjusted EBITDA  $202,525   $201,619   $207,034   $804,962   $758,676 
                          
Adjusted operating income (loss): (5)                         
U.S. Drilling  $6,811   $8,977   $12,427   $64,313   $(21,298)
Canada Drilling   (3,186)   929    (5,701)   (14,483)   (6,166)
International Drilling   1,152    (481)   2,466    (8,903)   74,221 
Drilling Solutions   16,672    11,853    16,145    59,465    37,626 
Rig Technologies (1)   (5,954)   (5,212)   (641)   (11,247)   (25,762)
Other reconciling items (4)   (38,794)   (41,090)   (39,219)   (160,274)   (166,815)
Total adjusted operating income (loss)  $(23,299)  $(25,024)  $(14,523)  $(71,129)  $(108,194)
                          
Rig activity:                         
Average Rigs Working: (6)                         
U.S. Drilling   104.2    117.3    114.1    115.3    113.2 
Canada Drilling   12.3    18.3    7.7    10.9    16.9 
International Drilling   87.1    88.0    87.7    88.3    92.9 
Total average rigs working   203.6    223.6    209.5    214.5    223.0 

 

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(1) Includes our oilfield equipment manufacturing, automated systems, and downhole tools.
                     
(2) Represents the elimination of inter-segment transactions.

 

(3) Adjusted EBITDA represents income (loss) from continuing operations before income taxes, interest expense, depreciation and amortization, earnings (losses) from unconsolidated affiliates, investment income (loss), impairments and other charges and other, net. Adjusted EBITDA is a non-GAAP financial measure and should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. In addition, adjusted EBITDA excludes certain cash expenses that the Company is obligated to make. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including adjusted EBITDA and adjusted operating income (loss), because it believes that these financial measures accurately reflect the Company’s ongoing profitability and performance.  Securities analysts and investors use this measure as one of the metrics on which they analyze the Company’s performance.  Other companies in this industry may compute these measures differently.  A reconciliation of this non-GAAP measure to income (loss) from continuing operations before income taxes, which is the most closely comparable GAAP measure, is provided in the table set forth immediately following the heading "Reconciliation of Non-GAAP Financial Measures to Income (loss) from Continuing Operations before Income Taxes".
                     
(4) Represents the elimination of inter-segment transactions and unallocated corporate expenses.
                     
(5) 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. Adjusted operating income (loss) is a non-GAAP financial measure and should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. In addition, adjusted operating income (loss) excludes certain cash expenses that the Company is obligated to make. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including adjusted EBITDA and adjusted operating income (loss), because it believes that these financial measures accurately reflect the Company’s ongoing profitability and performance.  Securities analysts and investors use this measure as one of the metrics on which they analyze the Company’s performance.  Other companies in this industry may compute these measures differently.  A reconciliation of this non-GAAP measure to income (loss) from continuing operations before income taxes, which is the most closely comparable GAAP measure, is provided in the table set forth immediately following the heading "Reconciliation of Non-GAAP Financial Measures to Income (loss) from Continuing Operations before Income Taxes".
                     
(6) Represents a measure of the average number of rigs operating during a given period.  For example, one rig operating 45 days during a quarter represents approximately 0.5 average rigs working for the quarter.  On an annual period, one rig operating 182.5 days represents approximately 0.5 average rigs working for the year.

 

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NABORS INDUSTRIES LTD. AND SUBSIDIARIES
                     
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
(Unaudited)

 

   Three Months Ended   Year Ended 
   December 31,   September 30,   December 31, 
(In thousands)   2019    2018    2019    2019    2018 
Adjusted EBITDA  $202,525   $201,619   $207,034   $804,962   $758,676 
Depreciation and amortization   (225,824)   (226,643)   (221,557)   (876,091)   (866,870)
Adjusted operating income (loss)   (23,299)   (25,024)   (14,523)   (71,129)   (108,194)
                          
Earnings (losses) from unconsolidated affiliates   -    -    -    (5)   1 
Investment income (loss)   1,509    (5,458)   (1,437)   10,218    (9,499)
Interest expense   (49,177)   (53,731)   (51,291)   (204,311)   (227,124)
Impairments and other charges   (186,201)   (54,012)   (3,939)   (290,471)   (144,446)
Other, net   (889)   (5,369)   (4,695)   (33,224)   (29,532)
Income (loss) from continuing operations before income taxes  $(258,057)  $(143,594)  $(75,885)  $(588,922)  $(518,794)

 

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NABORS INDUSTRIES LTD. AND SUBSIDIARIES
                 
RECONCILIATION OF NET DEBT TO TOTAL DEBT

 

   December 31,   September 30,   December 31, 
(In thousands)  2019   2019   2018 
   (Unaudited)     
Current portion of debt  $-   $1,058   $561 
Long-term debt   3,333,220    3,516,592    3,585,884 
Total Debt   3,333,220    3,517,650    3,586,445 
Less: Cash and short-term investments   452,496    418,937    481,802 
Net Debt  $2,880,724   $3,098,713   $3,104,643 

 

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NABORS INDUSTRIES LTD. AND SUBSIDIARIES
               
RECONCILIATION OF FREE CASH FLOW TO
NET CASH PROVIDED BY OPERATING ACTIVITIES
(Unaudited)

 

   Three Months Ended   Year Ended 
   December 31,   September 30,   December 31, 
(In thousands)   2019    2019    2019 
Net cash provided by operating activities  $253,730   $157,743   $684,558 
Less: Net cash used for investing activities   (22,156)   (75,496)   (355,856)
Free cash flow  $231,574   $82,247   $328,702 

 

 

Free cash flow represents net cash provided by operating activities less cash used for investing activities. Free cash flow is an indicator of our ability to generate cash flow after required spending to maintain or expand our asset base. Management believes that this non-GAAP measure is useful information to investors when comparing our cash flows with the cash flows of other companies. This non-GAAP measure has limitations and therefore should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. However, management evaluates the performance of the consolidated Company based on several criteria, including free cash flow, because it believes that these financial measures accurately reflect the Company's ongoing profitability and performance.

 

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Section 3: EX-99.2 (EXHIBIT 99.2)

 

Exhibit 99.2

 

 

Thursday, February 20, 2020 NABORS INDUSTRIES 4Q 2019 Earnings Presentation Friday, February 21, 2020

 

 

2 Forward Looking Statements We often discuss expectations regarding our future markets, demand for our products and services, and our performance in our annual, quarterly, and current reports, press releases, and other written and oral statements . Such statements, including statements in this document that relate to matters that are not historical facts, are “forward - looking statements” within the meaning of the safe harbor provisions of Section 27 A of the U . S . Securities Act of 1933 and Section 21 E of the U . S . Securities Exchange Act of 1934 . These “forward - looking statements” are based on our analysis of currently available competitive, financial and economic data and our operating plans . They are inherently uncertain, and investors should recognize that events and actual results could turn out to be significantly different from our expectations . Factors to consider when evaluating these forward - looking statements include, but are not limited to: • fluctuations and volatility in worldwide prices of and demand for oil and natural gas; • fluctuations in levels of oil and natural gas exploration and development activities; • fluctuations in the demand for our services; • competitive and technological changes and other developments in the oil and gas and oilfield services industries; • our ability to renew customer contracts in order to maintain competitiveness; • the existence of operating risks inherent in the oil and gas and oilfield services industries; • the possibility of the loss of one or a number of our large customers; • the impact of long - term indebtedness and other financial commitments on our financial and operating flexibility; • our access to and the cost of capital, including the impact of a further downgrade in our credit rating, covenant restrictions, availability under our unsecured revolving credit facilities, and future issuances of debt or equity securities; • our dependence on our operating subsidiaries and investments to meet our financial obligations; • our ability to retain skilled employees; • our ability to complete, and realize the expected benefits, of strategic transactions; • changes in tax laws and the possibility of changes in other laws and regulation; • the possibility of political or economic instability, civil disturbance, war or acts of terrorism in any of the countries in which we do business; • the possibility of changes to U.S. trade policies and regulations including the imposition of trade embargoes or sanctions; and • general economic conditions, including the capital and credit markets. Our businesses depend, to a large degree, on the level of spending by oil and gas companies for exploration, development and production activities . Therefore, sustained lower oil or natural gas prices that have a material impact on exploration, development or production activities could also materially affect our financial position, results of operations and cash flows . The above description of risks and uncertainties is by no means all - inclusive, but is designed to highlight what we believe are important factors to consider . For a discussion of these factors and other risks and uncertainties, please refer to our filings with the Securities and Exchange Commission ("SEC"), including those contained in our Annual Reports on Form 10 - K and Quarterly Reports on Form 10 - Q, which are available at the SEC's website at www . sec . gov . Non - GAAP Financial Measures This presentation refers to certain “non - GAAP” financial measures, such as adjusted EBITDA, adjusted operating income (loss), net debt and free cash flow . The components of these non - GAAP measures are computed by using amounts that are determined in accordance with accounting principles generally accepted in the United States of America (“GAAP”) . A reconciliation of adjusted EBITDA and adjusted operating income (loss) to income (loss) from continuing operations before income taxes, net debt to total debt, and free cash flow to net cash provided by operating activities, which are their nearest comparable GAAP financial measures, is provided in the Appendix at the end of this presentation .

 

 

3 Recent Company Highlights Amended the 2018 RCF and extended nearly $ 1 billion of debt maturities Increased U.S. Drilling average daily margin to $12,642 in 4Q from $12,400 in 3Q • Lower 48 daily margin held essentially flat at $10,218 as industry rig count declines by 7 % Increased International Drilling average daily margin to $14,144 in 4Q from $13,739 in 3Q International deployments: • Two offshore platform rigs in Mexico and a land rig in Kuwait • One land rig scheduled in Saudi Arabia Sequential adjusted EBITDA improvement in Canada Drilling, Drilling Solutions and International Drilling Continued growth in penetration of ROCKit ® Pilot and Navigator TM

 

 

FINANCIAL OVERVIEW 4

 

 

5 Financial Summary (1) See reconciliations in the Appendix (2) Diluted Earnings (Losses) Per Share from continuing operations ($000 except EPS) 4Q18 1Q19 2Q19 3Q19 4Q19 Operating Revenues $782,080 $799,640 $771,406 $758,076 $714,261 Income (Loss) from Continuing Operations before income taxes ($143,594) ($73,577) ($181,403) ($75,885) ($258,057) Adjusted EBITDA (1) $201,619 $196,996 $198,407 $207,034 $202,525 Adjusted Operating (1) Income (Loss) ($25,024) ($13,395) ($19,912) ($14,523) ($23,299) Diluted EPS (2) (0.55) (0.36) (0.61) (0.37) (0.77)

 

 

6 Debt Maturity Profile as of December 31, 2019 (Revolver Capacity + Cash) (2)(3) (1) Annual figures shown in millions at maturity value. (2) Debt balances reflect carrying values as of December 31, 2019. See reconciliation of Net Debt to Total Debt in the Appendix. (3) Availability under Revolving Credit Lines subject to covenants. (1) (1) Debt @ 12/31/19 Total Debt: $3.33Bn (2) Net Debt: $2.88Bn (2) Available Liquidity: $1.76Bn (2)

 

 

7 Debt Maturity Profile Proforma for Offerings & Tender (1) Annual figures shown in millions at maturity value . (1) (1) Tenders accepted in January 2020

 

 

BUSINESS SEGMENTS 8

 

 

9 Lower 48 Rig Utilization by Type (1) As of December 31, 2019. (1) Rig Type Total Rigs Active Total Util. AC % PACE ® - X 41 47 87% PACE ® - M750 7 7 100% PACE ® - M800 6 6 100% PACE ® - M1000 4 4 100% PACE ® - B 23 29 79% PACE ® - S 5 11 45% UPGRADED PACE ® - F 4 6 67% Total High Spec 90 110 82% PACE ® - F 0 9 0% PACE ® - M550 3 47 6% Other AC Rigs 0 16 0% SCR 1 8 13% Total 94 190 49%

 

 

Focus on Mission Zero 10 Lower 48 solidly outperforming the industry average reported TRIR 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 TRIR 0.93 1.71 NBR IADC

 

 

48% 11% 41% Market Peak - 2014 70% 1% 30% 4Q 2019 11 Successfully Improving Customer Mix Tier 1 Tier 2 Tier 3 Growing position with the top customers in the Lower 48

 

 

Continuing to Build Market Share with the Super Majors “ Nabors has invested heavily in their fleet and support services. They’ve also made tough decisions to ensure the right talent is in their front - line leadership positions.” “ Best in - basin rig performance. Attentive corporate and field personnel.” “New technology, consistently evolving. Quality performance and excellent service” Major Independent Major Independent Super Major Super Major 35% 26% 11% 8% 7% 14% 2019 NBR HP PTEN ESI PDS Other 112 Active AC 1500 Rigs with Super Majors Compared to market peak, Nabors gained 13% of the super major market share 22% 39% 22% 7% 9% 2014 54 Active AC 1500 Rigs with Super Majors “ I gave Nabors a 9 for their quality, forward - thinking mentality, low NPT and performance - minded personnel.” 12 Source: Enverus

 

 

13 Nabors Drilling Operations as of December 31, 2019 Please refer to disclaimers on slide 2 of the presentation deck. U.S. 101 Saudi Arabia 42 Canada 15 Colombia 11 Argentina 10 Kazakhstan 6 Oman 4 Mexico 3 Russia 3 Venezuela 3 Algeria 2 India 2 Kuwait 2 Total of 204

 

 

14 Nabors has long history of deploying rigs powered by alternative power sources • Deployed first unit in 1985 on North Slope • Highline capable • Gas capable w/turbine • Today’s active North Slope fleet is highline - capable • Lower 48 • 40 dual - fuel - capable rigs • 3 running on highline power Powering Rigs with Alternative/Dual Fuel Highline power Natural gas

 

 

Tubular Running Services Reinventing workflows, while delivering superior returns Automation and Integration Integrated and efficient delivery built on Nabors SmartRig ® platform enabling: • Superior service quality & safety • Unmatched connection integrity • Repeatable and consistent performance • Reduced rig - up/rig - down times, and overall shorter run times • Significant reduction of HSE exposure • Performance Dashboards to drive continuous KPI improvement and peer benchmarking Leverage global footprint to drive growth • Growing market presence in U.S. • Expanding footprint in key international geographies of Latin America, Saudi Arabia, and Far East • Strong value creation in the U.S. enables international deployment of integrated offerings • Deployment of new technologies should further solidify Nabors’ value creation and market share globally Superior Financial Returns • Integrated field organization creating synergies and lower cost of delivery • Customer base aligned for scalable solutions • Performance pricing and tailored commercial models Significant progress in 2019 • Outpacing peer group on margins and returns on capital • Market share growth in Saudi Arabia • Growth & efficiencies established in U.S. Land • Casing run times improved by 23% YoY 0 50 100 150 200 Q3 ’19 Q2 ’19 Q4 ’19 +42% Integrated Jobs Traditional Jobs Apr - 19 Jan - 19 Jul - 19 Oct - 19 Jan - 20 Joints/Hr +23% Performance Dashboard 1 2 3 15

 

 

16 Drilling Automation Industry leading digital products supported by scalable workflows Product Description Competitive Advantages Value Creation ROCKit ® Pilot ROCKit ® Navigator™ REVit® An intuitive directional steering control system that increases performance of slide drilling, through drill string oscillation and precise toolface control □ Most sought after oscillation system by Operators and DD service providers □ Scalable and deployable across Nabors and third - p arty rigs □ Increases slide ROP and reduces flat time An automated real time stick slip mitigation system that preserves bit cutting structure, increases rates of penetration, and reduces unplanned trips □ The market leading and most experienced stick - slip mitigation supplier □ Scalable and deployable across Nabors and t hird - party rigs □ Seamless and rapid field deployment Automated directional guidance and advisory platform that drives consistent decision making, transparency, and improved wellbore trajectory □ Seamless integration with Navigator to achieve fully automated Well Bore Placement □ Enables reduced crews or de - manning of crews □ Flexible implementation from any remote operations center An advanced directional steering control system that automates slide drilling to improve quality of slides and minimize time to slide through automated toolface control □ Collaborative cloud - based digital platform enabling multiple stakeholder interaction □ Customizable decision algorithms codify client best practices for improved directional execution □ Market leading decision transparency Deployed on tens of thousands of wells and active on significant number of U.S. Land rigs Deployed on tens of thousands of wells and active on significant number of U.S. Land rigs Drilled 1,020 wells with a total of 17.5 million feet Drilled 370 wells with a total of 6.4 million feet

 

 

Incorporates industry leading technology; preferred choice of operators and end users Current motor fleet consists of 282 buildable assets that are utilized domestically and internationally 2019 Nabors’ Blue Force® motors were utilized to drill 1,247 wells for a total footage of 4,530,096 Reliability at 98.5% good runs • Sensor rich tools designed specifically for unconventional reservoirs • Collar mounted system allows for man - less operation and deployment • Utilized on 1,138 runs in 2019 for a total of 50,620 hours and 3,652,945 feet • Excellent reliability at 96% good runs AccuLine MWD fleet one of the most versatile MWD platforms in the industry Nabors WBP and Performance Products group was recognized in industry publications for drilling the first U - Shaped horizontal well in North America l and Blue Force® Mud Motors With the ability to deploy: • Electro Magnetic • Positive Mud Pulse • Azimuthal Gamma • Drilling Mechanics Wellbore Placement m aking the DD - MWD service automated and “crew - less” Nabors’ AccuLine featured in industry publications: WellBore Placement A unique DD/MWD company with a fully automated offering ‘Azimuthal Gamma Imaging and Continuous Inclination Applications to Spatial and Stratigraphic Wellbore in the Placement in the Southern Midland Basin’ | URTeC 55 | Denver | July 2019 ‘ Approach Optimizes Well Geosteering’ | American Oil and Gas Reporter Magazine | September 2018 ‘ Advanced Downhole Measurements and 3D Model Based Geosteering Improves Wellbore Placement Accuracy’ | URTeC 2902533 | Houston | July 2018 ‘ Real - Time Downhole Data Resolves Lithology Related Drilling Behavior’ | SPE/IADC - 189697 - MS | Fort Worth | March 2018 ‘ Advanced MWD Improves Wellbore Placement in Wolfcamp Formation ’ | World Oil Magazine | November 2018 ‘Wellbore Spiraling From Systematic Stick Slip Induced Micro - Sliding’ | AADE - 17 - NTCE - 049 | Houston | April 2017 July 2018 & 2019 ‘Azimuthal Gamma Imaging and Continuous Inclination Applications to Spatial and Stratigraphic Wellbore in the Placement in the Southern Midland Basin’ | URTeC 55 | Denver | July 2019 ‘ Approach Optimizes Well Geosteering’ | American Oil and Gas Reporter Magazine | September 2018 ‘ Advanced Downhole Measurements and 3D Model Based Geosteering Improves Wellbore Placement Accuracy’ | URTeC 2902533 | Houston | July 2018 ‘ Real - Time Downhole Data Resolves Lithology Related Drilling Behavior’ | SPE/IADC - 189697 - MS | Fort Worth | March 2018 ‘ Advanced MWD Improves Wellbore Placement in Wolfcamp Formation ’ | World Oil Magazine | November 2018 ‘Wellbore Spiraling From Systematic Stick Slip Induced Micro - Sliding’ | AADE - 17 - NTCE - 049 | Houston | April 2017 September 2018 ‘Azimuthal Gamma Imaging and Continuous Inclination Applications to Spatial and Stratigraphic Wellbore in the Placement in the Southern Midland Basin’ | URTeC 55 | Denver | July 2019 ‘ Approach Optimizes Well Geosteering’ | American Oil and Gas Reporter Magazine | September 2018 ‘ Advanced Downhole Measurements and 3D Model Based Geosteering Improves Wellbore Placement Accuracy’ | URTeC 2902533 | Houston | July 2018 ‘ Real - Time Downhole Data Resolves Lithology Related Drilling Behavior’ | SPE/IADC - 189697 - MS | Fort Worth | March 2018 ‘ Advanced MWD Improves Wellbore Placement in Wolfcamp Formation ’ | World Oil Magazine | November 2018 ‘Wellbore Spiraling From Systematic Stick Slip Induced Micro - Sliding’ | AADE - 17 - NTCE - 049 | Houston | April 2017 March 2018 ‘Azimuthal Gamma Imaging and Continuous Inclination Applications to Spatial and Stratigraphic Wellbore in the Placement in the Southern Midland Basin’ | URTeC 55 | Denver | July 2019 ‘ Approach Optimizes Well Geosteering’ | American Oil and Gas Reporter Magazine | September 2018 ‘ Advanced Downhole Measurements and 3D Model Based Geosteering Improves Wellbore Placement Accuracy’ | URTeC 2902533 | Houston | July 2018 ‘ Real - Time Downhole Data Resolves Lithology Related Drilling Behavior’ | SPE/IADC - 189697 - MS | Fort Worth | March 2018 ‘ Advanced MWD Improves Wellbore Placement in Wolfcamp Formation ’ | World Oil Magazine | November 2018 ‘Wellbore Spiraling From Systematic Stick Slip Induced Micro - Sliding’ | AADE - 17 - NTCE - 049 | Houston | April 2017 November 2018 ‘Azimuthal Gamma Imaging and Continuous Inclination Applications to Spatial and Stratigraphic Wellbore in the Placement in the Southern Midland Basin’ | URTeC 55 | Denver | July 2019 ‘ Approach Optimizes Well Geosteering’ | American Oil and Gas Reporter Magazine | September 2018 ‘ Advanced Downhole Measurements and 3D Model Based Geosteering Improves Wellbore Placement Accuracy’ | URTeC 2902533 | Houston | July 2018 ‘ Real - Time Downhole Data Resolves Lithology Related Drilling Behavior’ | SPE/IADC - 189697 - MS | Fort Worth | March 2018 ‘ Advanced MWD Improves Wellbore Placement in Wolfcamp Formation ’ | World Oil Magazine | November 2018 ‘Wellbore Spiraling From Systematic Stick Slip Induced Micro - Sliding’ | AADE - 17 - NTCE - 049 | Houston | April 2017 April 2017 Provided high reliability for major client in the Delaware Basin in 2019 2975 TOTAL HOURS ft 250,000+ DRILLED 0 MOTOR FAILURES 17

 

 

APPENDIX 18

 

 

19 Financial Summary (1) Margin = gross margin per rig per day for the period. Gross margin is computed by subtracting direct costs from operating rev en ues for the period. 4Q18 1Q19 2Q19 3Q19 4Q19 Margin (1) Avg. Rigs Working Margin (1) Avg. Rigs Working Margin (1) Avg. Rigs Working Margin (1) Avg. Rigs Working Margin (1) Avg. Rigs Working U.S. Drilling $11,428 117.3 $ 12,350 120.9 $12,061 122.2 $ 12,400 114.1 $ 12,642 104.2 Canada Drilling 6,492 18.3 6,055 16.3 3,764 7.4 3,799 7.7 5,493 12.3 International Drilling 13,527 88.0 12,622 89.7 12,610 88.6 13,739 87.7 14,144 87.1

 

 

20 Reconciliation of Adjusted EBITDA to Income (Loss) from Cont. Operations Before Income Taxes Adjusted operating income (loss) represents income (loss) from continuing operations before income taxes, interest expense, e arn ings (losses) from unconsolidated affiliates, investment income (loss), impairments and other charges and other, net. Adjusted EBITDA is computed similarly, but also excludes depreciation a nd amortization expenses. In addition, adjusted EBITDA and adjusted operating income (loss) exclude certain cash expenses that the Company is obligated to pay. Each of these non - GAAP meas ures has limitations and therefore should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including adjusted EBITDA and adjusted operating income (loss), because it believes that these fin anc ial measures accurately reflect the Company’s ongoing profitability and performance. Securities analysts and investors use these measures as some of the metrics on which they anal yze the Company’s performance. Other companies in this industry may compute these measures differently. A reconciliation of adjusted EBITDA and adjusted operating income (loss) to income (loss ) from continuing operations before income taxes which is the nearest comparable GAAP financial measure, is provided in the table below. Three Months Ended December 31, March 31, June 30, September 30, December 31, (In Thousands) 2018 2019 2019 2019 2019 Adjusted EBITDA $201,619 $196,996 $198,407 $207,034 $202,525 Depreciation and Amortization (226,643) (210,391) (218,319) (221,557) (225,824) Adjusted Operating Income (loss) (25,024) (13,395) (19,912) (14,523) (23,299) Earnings (losses) from unconsolidated affiliates 0 (5) 0 0 0 Investment Income (loss) (5,458) 9,677 469 (1,437) 1,509 Interest Expense (53,731) (52,352) (51,491) (51,291) (49,177) Other, net (5,369) (20,354) (7,286) (4,695) (889) Impairments and other charges (54,012) 2,852 (103,183) (3,939) (186,201) Income (Loss) from continuing operations before income taxes (143,594) (73,577) (181,403) (75,885) (258,057)

 

 

21 Reconciliation of Free Cash Flow to Net Cash Provided by Operating Activities Free cash flow represents net cash provided by operating activities less cash used for investing activities. Free cash flow i s a n indicator of our ability to generate cash flow after required spending to maintain or expand our asset base. Management believes that this non - GAAP measu re is useful information to investors when comparing our cash flows with the cash flows of other companies. This non - GAAP measure has limitat ions and therefore should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. However, manag eme nt evaluates the performance of the consolidated Company based on several criteria, including free cash flow, because it believes that these f ina ncial measures accurately reflect the Company's ongoing profitability and performance. Year Ended June 30, September 30, December 31, December 31, (In Thousands) 2019 2019 2019 2019 Net cash provided by operating activities 203,231$ 157,743$ 253,730$ 684,558$ Less: Net cash used for investing activities (113,760)$ (75,496)$ (22,156)$ (355,856)$ Free cash flow 89,471$ 82,247$ 231,574$ 328,702$ Three Months Ended

 

 

22 Reconciliation of Net Debt to Total Debt Net debt is computed by subtracting the sum of cash, cash equivalents and short term investments from total debt. This non - GAAP measure has limitations and therefore should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP . H owever, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including net deb t, because it believes that this financial measure accurately measures the Company’s liquidity. In addition, securities analysts and investors use thi s measure as one of the metrics on which they analyze the company’s performance. Other companies in this industry may compute this measure differentl y. A reconciliation of net debt to total debt, which is the nearest comparable GAAP financial measure, is provided in the table below. December 31, December 31, (In Thousands) 2018 2019 Long-Term Debt $3,585,884 $3,333,220 Current Debt $561 $0 Total Debt $3,586,445 $3,333,220 Cash & Cash Equivalents $447,766 $435,990 ST Investments $34,036 $16,506 Net Debt $3,104,643 $2,880,724

 

 

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