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Nabors Industries Ltd. (NBR)

- NYSE
  • Tue, Mar. 24, 6:27 PM
    • Nabors Industries (NYSE:NBR) and C&J Energy Services (NYSE:CJES) say they have completed the combination of C&J with NBR's completion and production services business, with the resulting combined company renamed C&J Energy Services under the CJES ticker.
    • Nabors received $688M in cash from C&J as a portion of the consideration for the transaction and now owns ~53% of the outstanding and issued common shares of the new company, with the remainder held by former CJES shareholders.
    • The deal originally was announced in June 2014.
    | 1 Comment
  • Thu, Mar. 19, 5:58 PM
    • C&J Energy (NYSE:CJES) sold $1.06B of junk loans backing its acquisition of a unit of Nabors Industries (NYSE:NBR), a day before shareholders are set to vote on the merger, Bloomberg reports.
    • CJES is issuing the debt at one of the deepest discounts in the last five years on a U.S. leveraged loan, selling a $575M loan at $0.86 on the dollar and a $485M portion at $0.84, as plunging crude oil prices leave energy companies struggling to obtain funding.
    • CJES withdrew a $650M loan in December that backed the buyout, only to return this month offering lenders an even larger discount.
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  • Fri, Mar. 13, 6:05 PM
    • Data center owner Equinix (NASDAQ:EQIX), real estate trust SL Green (NYSE:SLG), and apparel maker Hanesbrands (NYSE:HBI) will be joining the S&P 500 after the March 20 close. Medical distributor Henry Schein (NASDAQ:HSIC) will be joining after the March 17 close.
    • Leaving the index are oil/gas producer Denbury Resources (NYSE:DNR), energy services provider Nabors (NYSE:NBR), beauty product maker Avon (NYSE:AVP), and medical device maker CareFusion (about to be acquired). Denbury, Nabors, and Avon will be joining the S&P MidCap 400, taking Equinix, SL Green, and Hanesbrands' spots.
    • Also: Buffalo Wild Wings (NASDAQ:BWLD) is taking Henry Schein's place in the S&P 400 on March 17, and Talmer Bancorp (NASDAQ:TLMR) Buffalo Wild Wings' spot in the S&P SmallCap 600.
    • EQIX +2.1% AH. SLG +2%. HBI +3.7%. TLMR +3.6%. NBR -1.8%.
    | 1 Comment
  • Fri, Mar. 6, 10:19 AM
    • C&J Energy (CJES -1.8%) says it is revising the debt structure to finance the proposed combination of C&J with Nabors Industries' (NBR -0.7%) completion and production services business after pulling a smaller loan deal in December.
    • A $550M portion of a newly constructed $1.06 loan deal will be sold for a reported $0.88 on the dollar while a $510M piece will be sold for $0.90; C&J in December withdrew a $650M loan to fund the purchase amid plunging oil prices, which was said to have been offered to investors for $0.98 on the dollar.
    • CJES says the proposed transaction remains fully financed under the revised debt structure and is expected to close by the end of March, subject to shareholder approval.
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  • Tue, Mar. 3, 3:49 PM
    • Nabors Industries (NBR +0.4%) has cut 12% of its 29K employee workforce, including a 20% reduction in its U.S. drilling workforce, and could ax up to 15% of its workforce this year which would bring its layoffs to 4,350 jobs, CEO Anthony Petrello said during today's earnings conference call.
    • "We are not counting on the ‘V,’” CEO Anthony Petrello said of a potential V-shaped - or rapid - recovery, warning that NBR is preparing for the possibility of a long-term downturn in oil prices.
    • The CEO said the impacts of pricing and reduced activity "will be evident" in NBR's Q1 results, and "based on the current trajectory of the decline in our rig count, we expect financial results to decline further" in Q2.
    • NBR's average utilization for its U.S. rigs has fallen to 78%, and its active U.S. rig count is down 32% from its peak last year at 138 rigs, largely indifferent to rig types and capabilities; CFO William Restrepo said the drop likely will hit 50%.
    | 4 Comments
  • Mon, Mar. 2, 6:33 PM
    • Nabors Industries (NYSE:NBR) -2.7% AH after missing expectations for Q4 earnings and revenues.
    • Unadjusted earnings swung to an $891M Q4 loss, which included a $612M impairment NBR booked on its older rigs which have become less valuable as they are used less and the company is no longer able to justify maintenance, and a $387M writedown related to goodwill; NBR reported an unadjusted $152M profit in the year-ago quarter.
    • NBR says its drilling operations posted a Q/Q improvement in operating income, primarily attributable to new rig deployments and the seasonal ramp-up in Alaska, and its international drilling segment also benefited from new rig deployments and contract renewals, but rig services and completion and production services operations were hurt by lower activity and increased pricing competitiveness compared with the previous quarter.
    | 1 Comment
  • Mon, Mar. 2, 4:57 PM
    • Nabors (NYSE:NBR): Q4 EPS of $0.33 misses by $0.06.
    • Revenue of $1.78B (+10.6% Y/Y) misses by $50M.
    • Shares -2%.
    • Press Release
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  • Sun, Mar. 1, 5:35 PM
  • Tue, Feb. 24, 10:59 AM
    • Transocean (RIG -1.6%) is poised to be the first in a wave of energy-related debt issuers downgraded to junk status, according to a Barclays report that says RIG could be stripped of its investment-grade ratings soon after it reports earnings tomorrow.
    • The cost of credit swaps used to protect RIG debt against default within five years has soared to 714 bps, a level associated with junk-rated companies, from less than 200 in September, Bloomberg says.
    • Weatherford (NYSE:WFT), Nabors Industries (NYSE:NBR) and Canadian Oil Sands (OTCQX:COSWF) are among the other investment-grade energy companies at risk of a downgrade to junk by mid-2016, according to Barclays.
    • As much as $20B of energy-related debt may be cut to junk within 18 months, expanding what is already the largest part of the high-yield, high-risk market by 11%, the report says.
    | 12 Comments
  • Wed, Feb. 18, 3:15 PM
    • RBC analysts think it's time to position for an oil recovery by buying oilfield services stocks such as Schlumberger (SLB -1.2%), Patterson-UTI (PTEN -0.4%), Nabors Industries (NBR +2.5%) and Precision Drilling (PDS +0.4%).
    • The firm believes oil prices will bottom in H1 2015, improves during H2 and averages at least $75/bbl in 2016, and sees U.S. land drillers and intensive service companies providing the best returns in the early phases of cycle recovery.
    • RBC notes that three of the top five performing stocks in the sector off the lows since 1997 have been PTEN, PDS and NBR; the firm considers SLB and NBR as best ideas, while PTEN is a small-cap best idea.
    | 11 Comments
  • Mon, Feb. 9, 8:57 AM
    • C&J Energy Services (NYSE:CJES) +2.8% premarket on news the two companies have agreed to reduce the cash portion of its deal to buy Nabors Industries' (NYSE:NBR) production services unit by $250M to $688M.
    • Including stock, the deal was valued at $2.86B when it was announced in June.
    • A court had halted the deal in November, finding C&J’s board’s failure to seek out other buyers might have shortchanged its investors, but a higher court ruling in December allowed the transaction to proceed.
    | 2 Comments
  • Mon, Feb. 2, 6:55 PM
    • Jefferies downgrades nine oil services stocks (NYSEARCA:OIH), noting there is still “material downside” to consensus estimates from lower oil prices.
    • Despite its medium-term negative view on oil, Jefferies adds that it expects oil prices to start to recover in 2015 with prices rising to levels that support oil services in 2016; yet the firm does not expect the sector to recover quickly, and sees deepwater drilling particularly sluggish on high costs and “flat-to-modestly-lower activity.”
    • Downgraded to Underperform: FTI, NBR, PTEN, RIG.
    • Downgraded to Hold: CAM, PES, PDS, SLCA, FMSA.
    | 30 Comments
  • Wed, Jan. 28, 3:59 PM
    | 11 Comments
  • Fri, Jan. 9, 12:40 PM
    • Nabors Industries (NBR -3.4%) and Helmerich & Payne (HP -1.7%) are both downgraded to Hold form Buy at KeyBanc (I, II) following this week's business update from HP, which reveals how quickly and dramatically U.S. rig activity is reacting to the drop in oil prices.
    • The firm expects the impact of a reduced number of working rigs and a drop on spot market dayrates to significantly hurt profitability at the two companies, at least until demand stabilizes; customers are sharply curtailing their drilling programs and releasing rigs as they come off contract.
    • KeyBanc forecasts NBR's contracted rigs in the lower 48 states falling from an average of ~200 in Q4 2014 to 170 in Q1 2015, and to average 155 for full-year 2015.
    | 2 Comments
  • Wed, Jan. 7, 3:23 PM
    • Oil driller Helmerich & Payne (HP -6.5%) is the day's biggest S&P 500 loser after saying rates for its high-tech rigs have tumbled 10% Q/Q and warns of more softness ahead because of falling crude oil prices.
    • "Drilling activity and spot dayrate pricing are now expected to significantly decline in the U.S.," HP says in a presentation which indicates deteriorating utilization and dayrates among land drillers is spreading farther and faster than expected.
    • HP says the idle and available number of its FlexRigs has risen to 26 from 15 since Dec. 11, and sees expects to see another 40-50 FlexRigs become idle in the next 30 days from its current total of 287 but does not foresee further idling beyond that point.
    • SunTrust analysts think HP’s rig count will wind up lower by the mid-30s in percentage Q/Q, cutting their 2015 EPS estimates on HP to $2.60, well below the consensus of $5.56, and slashing their price target to $56 from $70.
    • Credit Suisse's James Wicklund, who offered little optimism for the oil service sector today, also slashed his estimates on land drillers HP, Nabors Industries (NBR -3.6%), Precision Drilling (PDS -2.1%) and Patterson-UTI (PTEN -3.6%) - "the result is ugly."
    | 27 Comments
  • Mon, Jan. 5, 12:18 PM
    | 71 Comments
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Company Description
Nabors Industries Ltd owns and operates land-based drilling rig fleet. It provides offshore platform workover and drilling rigs in the United States and international markets.