#Oil and Gas #Bermuda #Hamilton #Nabors Industries #energy technology

Nabors Industries Reports First Quarter 2026 Earnings

On April 28, 2026, Nabors Industries Ltd. (NYSE: NBR) released its financial results for the first quarter of 2026, showcasing a mix of operational revenue achievements and challenges. Operating revenues for the quarter stood at $784 million, but the company faced a net loss attributable to shareholders of $15 million, a notable change from the net income of $10 million in the previous quarter. Adjusted EBITDA for the first quarter was reported at $205 million.

Financial Overview

In comparing performance metrics, Nabors recorded the following for the three months ended March 31, 2026:

• - Operating Revenues: $783.5 million
• - Adjusted EBITDA: $204.8 million
• - Adjusted Operating Income: $48.6 million
• - Average Rig Count: 167.9 rigs (an increase from 162.9 in the previous quarter)

Despite the decline in net income, it's important to highlight that the adjusted EBITDA results have been stable, showing resilience in the company’s operations.

Highlights from 1Q 2026

Several key developments emerged during the quarter:
1. Expansion in Saudi Arabia: The SANAD land drilling joint venture added one newbuild rig in Saudi Arabia, raising its total new deployments to 15, with four more planned for 2026. Additionally, a previously suspended rig was reactivated to meet demand.
2. Rig Additions in Lower 48: In the competitive Lower 48 market, Nabors successfully deployed four new rigs, bringing the total working rig count in the area to 66, marking an increase of eight rigs since November 2025.
3. Debt Reduction Initiatives: In line with its ongoing debt management strategy, Nabors redeemed its remaining outstanding notes due in 2028, lowering total debt to $2.1 billion by March 31, 2026, representing a reduction of $386 million since the end of 2024.
4. Awards Recognition: Nabors was recognized at the Oil and Gas Middle East Awards 2026, winning three awards including Service Partner of the Year, highlighting its commitment to reliability and innovation.

Strategic Commentary

Anthony G. Petrello, Chairman and CEO of Nabors, stated: "The ongoing dynamics in the Middle East and their implications for global energy markets reaffirm the strength of Nabors' diversified portfolio. Our activities in the region were only modestly affected in the first quarter, allowing us to leverage our global fleet effectively."

He continued, "Our results demonstrate another increase in rig utilization and a growing presence in the Lower 48 market, showcasing how our clients are prioritizing high-specification rigs and advanced technologies. The resilience of our operations in complex drilling environments underscores our effective deployment strategies."

In the International Drilling segment, contributions came from expanding operations in Saudi Arabia and Latin America, with the reactivation of an offshore platform rig in Mexico adding to the company’s international footprint. The company reported that international markets now account for approximately 65% of the Drilling Solutions segment’s EBITDA, a significant increase from 31% a year ago.

Looking Ahead

In terms of guidance, Nabors anticipates continued growth in its U.S. and international operations, with projected quarterly rig counts indicating an upward trajectory. For the second quarter of 2026, the expected average rig count for the Lower 48 is set between 67 and 68, with daily margins remaining stable.

The company also indicates a capital expenditure forecast of approximately $180 million to $190 million for second quarter operations, maintaining a focus on measured allocation strategies while supporting aggressive growth targets. Petrello remarked, "Our measured approach to operational efficiency is reflected in our first quarter performance, and we remain confident in our ability to deliver sustained improvements as we navigate through the remainder of the year."

Conclusion

Nabors Industries is adapting well to the prevailing market conditions, evident through its strategic growth initiatives and robust operational practices. As the company strives to optimize its global operations and manage debt wisely, Nabors continues to position itself favorably within the energy sector, paving the way for long-term shareholder value creation. For more detailed information, visit their official website at Nabors.