Nabors Q2 operating revenue misses estimates
Overview
Nabors Q2 operating revenue of $833 mln missed analyst expectations, per LSEG data
Adjusted EBITDA for Q2 was $248 mln, beating analyst estimates, per LSEG data
Co reports Q2 net loss, compared to net income in Q1
Outlook
Nabors expects Q3 U.S. Drilling lower 48 average rig count of 57 - 59 rigs
Company forecasts Q3 U.S. Drilling lower 48 daily adjusted gross margin of approximately $13,300
Nabors sees Q3 international average rig count of 87-88 rigs
Company anticipates Q3 international daily adjusted gross margin of approximately $17,900
Nabors projects Q3 capital expenditures of $200-210 mln
Company expects Q3 adjusted free cash flow in line with Q2
Result Drivers
RIG DEPLOYMENTS - New rigs deployed in Saudi Arabia and Kuwait contributed to international drilling earnings
PARKER INTEGRATION - Integration of Parker Wellbore operations provided cost synergies and improved financial results
U.S. DRILLING - Higher rig counts in U.S. drilling segment offset challenges in Lower 48 market
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Operating Revenue | Miss | $832.79 mln | $851.10 mln (6 Analysts) |
Q2 EPS | -$2.71 | ||
Q2 Adjusted EBITDA | Beat | $248.46 mln | $247.20 mln (6 Analysts) |
Q2 Adjusted Operating Income | Beat | $73.40 mln | $12.40 mln (3 Analysts) |
Q2 Pretax Profit | $20.87 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 5 "hold" and 3 "sell" or "strong sell"
The average consensus recommendation for the oil & gas drilling peer group is "buy."
Wall Street's median 12-month price target for Nabors Industries Ltd is $36.50, about 3.3% above its July 28 closing price of $35.29
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