Publication date: 25-06-2025
Nabors Industries is a global provider of drilling services for the oil and gas sector, operating a large fleet of rigs across both North America and international markets. A majority of Nabors’ revenue comes from international operations, which are typically based on multi-year contracts, providing greater cash flow stability across cycles. The company’s clients include some of the world’s largest oil producers, such as Saudi Aramco, and other major national and international oil companies.
In 1Q25, Nabors operated an average of 68 rigs in the U.S. and 85 rigs internationally. While the U.S. segment experienced a 15 % year-on-year revenue decline due to reduced rig activity, international drilling revenue grew by 9 %, supported by higher utilization rates and longer-term contracts.
Nabors also holds a 50 % stake in Sanad, a joint venture with Saudi Aramco, which is expected to generate $300 mn of EBITDA in 2025. Sanad has already deployed 11 rigs as of early 2Q25, with a total of 15 rigs awarded, all expected to be operational by early 2026. These rigs are under six-year contracts with four-year renewal options, offering stable long-term cash flows. Sanad is currently debt-free and is valued between $2,5–3,0 bn. This makes it a strategic option for Nabors to address its debt repayments, either by adding leverage to Sanad or partially monetizing it through a sale or IPO.
In 2025, Nabors completed the stock-funded acquisition of Parker Wellbore, a provider of high-performance downhole tubular rentals, casing running services, and rig maintenance. This acquisition is expected to increase Nabors’ EBITDA by 24 %, contribute $35 mn in annual cost synergies, and expand its capital-light solutions segment. As a result, the company’s net leverage is projected to decline from 2,5x to 2,0x in 2026 through ongoing free cash flow generation, particularly from international operations and improved efficiency.
The bond is senior guaranteed, backed by solid asset coverage and covenant protections that prohibit further senior issuance, offering investors a stronger position in the capital structure.
as of 31.03.2025 USD bn
| Column 1 | Column 2 | Column 3 | Column 4 | Column 5 | Column 6 |
|---|---|---|---|---|---|
| Assets | 4,5 | EBITDA Margin | 31 % | CFO/Debt | 0,2 |
| Revenue | 2,9 | Net debt | 2,1 | FCF | - |
| EBITDA | 0,9 | Net Debt/EBITDA | 2,5x | Equity | 1,2 |
| Net Profit | -0,2 | EBITDA/Interest | 5x | Debt/Equity | 2,1x |
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