We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Nabors (NBR) Q4 Loss Wider Than Expected, Sales Top Estimates
Read MoreHide Full Article
Nabors Industries Ltd. (NBR - Free Report) reported a fourth-quarter 2022 loss of $3.89 per share, wider than the Zacks Consensus Estimate of a loss of $1.06. This underperformance was primarily due to much higher year-over-year total costs and expenses.
However, NBR’s bottom line was significantly better than the year-ago quarter’s adjusted loss of $14.60 per share, backed by strong revenue performance across its core businesses.
Quarterly revenues of $769.3 million beat the Zacks Consensus Estimate of $734 million. The top line also improved from the year-ago level of $543.7 million.
Nabors’ adjusted EBITDA reduced from $230 million to $131.7 million year over year.
Nabors Industries Ltd. Price, Consensus and EPS Surprise
U.S. Drilling generated quarterly operating revenues of $332.9 million, up 73.1% from the year-ago level of $192.3 million. It surpassed the Zacks Consensus Estimate of $325 million due to an increase in the rig count to 102.1 from 80.7 a year ago. The segment recorded an operating income of $68.3 million, comparing favorably to the year-ago loss of $12.6 million.
International Drilling’s operational revenues of $317.6 million increased from the year-ago quarter’s sales of $271.1 million due to improved performance in Saudi Arabia and Latin America. This boosted growth and slightly increased the international rig count from the prior quarter.
Moreover, the unit’s sales beat the Zacks Consensus Estimate of $312 million. The segmental operating income came in at $1.8 million in the reported quarter, improving from the prior-year quarter’s loss of $5.7 million.
Revenues from the Drilling Solutions segment were $71.3 million in the fourth quarter, up 37.7% from about $51.8 million a year ago. The same outperformed the Zacks Consensus Estimate of $67 million. Additionally, the segment’s operating income of $24.8 million beat the year-ago figure of $12.9 million.
Revenues from Rig Technologies were $62.8 million, up about 33.9% from the prior-year level of $46.9 million. The metric beat the Zacks Consensus Estimate of $55 million due to higher aftermarket sales in the reported quarter, which reflected increased rig and equipment utilization.
Moreover, the segment’s operating profit came in at $6.1 million compared with the prior-year figure of $1.5 million.
Financial Position
Nabors’s total costs and expenses increased to $801.3 million from $634.6 million in the year-ago quarter, reflecting much higher direct expenses, general and administrative costs, and research and engineering expenses.
As of Dec 31, 2022, NBR had cash and short-term investments of $452.3 million, and a long-term debt of about $2.6 billion with a total debt-to-total capital of 82.5%.
During the quarter, Nabors generated adjusted free cash flow of $101.3 million.
Guidance
Nabors’ first-quarter 2023 average Lower 48 rig count is expected to increase by one rig over the fourth-quarter average. The daily margin is predicted in the $16,100-$16,300 range.
The International Drilling segment’s first-quarter 2023 daily drilling margin is anticipated at approximately $14,900, with the average rig count up approximately one to two rigs compared with the fourth-quarter average.
Nabors expects Drilling Solutions’ first-quarter EBITDA to increase by approximately 6% over the fourth quarter level. Finally, the adjusted EBITDA for NBR’s Rig Technologies segment is estimated to be approximately in line with the fourth quarter level.
The estimated capital expenditure for the first quarter of 2023 stands at $150 million, while the full-year 2023 CAPEX stands at $490 million.
Nabors anticipates free cash flow for the fiscal year 2023 at $400 million.
Zacks Rank and Other Key Picks
Currently, Nabors Industries Ltd. carries a Zacks Rank #2 (Buy). Meanwhile, investors interested in the energy sector might look at stocks like ProPetro Holding (PUMP - Free Report) and Energy Transfer (ET - Free Report) both sporting a Zacks Rank #1 (Strong Buy) and Helmerich & Payne (HP - Free Report) holding a Zacks Rank #2.You can seethe complete list of today’s Zacks #1 Rank stocks here.
ProPetro Holding: PUMP currently has a forward P/E ratio of 4.43. In comparison, its industry has an average forward P/E of 25.40, which means PUMP is trading at a discount to the group.
ProPetro Holding is worth approximately $1.13 billion. Its shares have declined 19.9% in the past year.
Energy Transfer LP: Energy Transfer LP is valued at around $39.66 billion. ET delivered an average earnings surprise of 28.7% for the last four quarters, and its current dividend yield is 9.50%.
Energy Transfer LP currently has a forward P/E ratio of 8.95. In comparison, its industry has an average forward P/E of 14.20, which means Energy Transfer LP is trading at a discount to the group.
Helmerich & Payne: Helmerich & Payne is valued at around $4.78 billion. Helmerich & Payne, headquartered in Tulsa, OK, has a trailing four-quarter earnings surprise of roughly 130.98% on average.
Over the past 60 days, the Zacks Consensus Estimate for HP's fiscal 2023 earnings has been revised by 18.8%. In the past year, HP stock has increased by 34.7%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Nabors (NBR) Q4 Loss Wider Than Expected, Sales Top Estimates
Nabors Industries Ltd. (NBR - Free Report) reported a fourth-quarter 2022 loss of $3.89 per share, wider than the Zacks Consensus Estimate of a loss of $1.06. This underperformance was primarily due to much higher year-over-year total costs and expenses.
However, NBR’s bottom line was significantly better than the year-ago quarter’s adjusted loss of $14.60 per share, backed by strong revenue performance across its core businesses.
Quarterly revenues of $769.3 million beat the Zacks Consensus Estimate of $734 million. The top line also improved from the year-ago level of $543.7 million.
Nabors’ adjusted EBITDA reduced from $230 million to $131.7 million year over year.
Nabors Industries Ltd. Price, Consensus and EPS Surprise
Nabors Industries Ltd. price-consensus-eps-surprise-chart | Nabors Industries Ltd. Quote
Segmental Performances
U.S. Drilling generated quarterly operating revenues of $332.9 million, up 73.1% from the year-ago level of $192.3 million. It surpassed the Zacks Consensus Estimate of $325 million due to an increase in the rig count to 102.1 from 80.7 a year ago. The segment recorded an operating income of $68.3 million, comparing favorably to the year-ago loss of $12.6 million.
International Drilling’s operational revenues of $317.6 million increased from the year-ago quarter’s sales of $271.1 million due to improved performance in Saudi Arabia and Latin America. This boosted growth and slightly increased the international rig count from the prior quarter.
Moreover, the unit’s sales beat the Zacks Consensus Estimate of $312 million. The segmental operating income came in at $1.8 million in the reported quarter, improving from the prior-year quarter’s loss of $5.7 million.
Revenues from the Drilling Solutions segment were $71.3 million in the fourth quarter, up 37.7% from about $51.8 million a year ago. The same outperformed the Zacks Consensus Estimate of $67 million. Additionally, the segment’s operating income of $24.8 million beat the year-ago figure of $12.9 million.
Revenues from Rig Technologies were $62.8 million, up about 33.9% from the prior-year level of $46.9 million. The metric beat the Zacks Consensus Estimate of $55 million due to higher aftermarket sales in the reported quarter, which reflected increased rig and equipment utilization.
Moreover, the segment’s operating profit came in at $6.1 million compared with the prior-year figure of $1.5 million.
Financial Position
Nabors’s total costs and expenses increased to $801.3 million from $634.6 million in the year-ago quarter, reflecting much higher direct expenses, general and administrative costs, and research and engineering expenses.
As of Dec 31, 2022, NBR had cash and short-term investments of $452.3 million, and a long-term debt of about $2.6 billion with a total debt-to-total capital of 82.5%.
During the quarter, Nabors generated adjusted free cash flow of $101.3 million.
Guidance
Nabors’ first-quarter 2023 average Lower 48 rig count is expected to increase by one rig over the fourth-quarter average. The daily margin is predicted in the $16,100-$16,300 range.
The International Drilling segment’s first-quarter 2023 daily drilling margin is anticipated at approximately $14,900, with the average rig count up approximately one to two rigs compared with the fourth-quarter average.
Nabors expects Drilling Solutions’ first-quarter EBITDA to increase by approximately 6% over the fourth quarter level. Finally, the adjusted EBITDA for NBR’s Rig Technologies segment is estimated to be approximately in line with the fourth quarter level.
The estimated capital expenditure for the first quarter of 2023 stands at $150 million, while the full-year 2023 CAPEX stands at $490 million.
Nabors anticipates free cash flow for the fiscal year 2023 at $400 million.
Zacks Rank and Other Key Picks
Currently, Nabors Industries Ltd. carries a Zacks Rank #2 (Buy). Meanwhile, investors interested in the energy sector might look at stocks like ProPetro Holding (PUMP - Free Report) and Energy Transfer (ET - Free Report) both sporting a Zacks Rank #1 (Strong Buy) and Helmerich & Payne (HP - Free Report) holding a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
ProPetro Holding: PUMP currently has a forward P/E ratio of 4.43. In comparison, its industry has an average forward P/E of 25.40, which means PUMP is trading at a discount to the group.
ProPetro Holding is worth approximately $1.13 billion. Its shares have declined 19.9% in the past year.
Energy Transfer LP: Energy Transfer LP is valued at around $39.66 billion. ET delivered an average earnings surprise of 28.7% for the last four quarters, and its current dividend yield is 9.50%.
Energy Transfer LP currently has a forward P/E ratio of 8.95. In comparison, its industry has an average forward P/E of 14.20, which means Energy Transfer LP is trading at a discount to the group.
Helmerich & Payne: Helmerich & Payne is valued at around $4.78 billion. Helmerich & Payne, headquartered in Tulsa, OK, has a trailing four-quarter earnings surprise of roughly 130.98% on average.
Over the past 60 days, the Zacks Consensus Estimate for HP's fiscal 2023 earnings has been revised by 18.8%. In the past year, HP stock has increased by 34.7%.