HAMILTON, Bermuda, Nov. 30, 2020 /PRNewswire/ -- Nabors Industries, Inc. ("Nabors" or the "Company"), a wholly-owned subsidiary of Nabors Industries Ltd. ("Parent") (NYSE: NBR), today announced the final results of its offers to all Eligible Holders (as defined below) to exchange (the "Exchange Offers") (x) certain aggregate principal amounts of the Company's (i) 4.625% Senior Notes due 2021, (ii) 5.50% Senior Notes due 2023, (iii) 5.10% Senior Notes due 2023, (iv) 5.75% Senior Notes due 2025, and (v) 0.75% Senior Exchangeable Notes due 2024 and (y) certain aggregate principal amounts of Parent's (i) 7.25% Senior Guaranteed Notes due 2026 and (ii) 7.50% Senior Guaranteed Notes due 2028 (together, the "Old Notes") for up to $300 million aggregate principal amount of newly issued 9.00% senior priority guaranteed notes due 2025 (the "New Notes").

As of 11:59 p.m., New York City time, on November 27, 2020 (the "Expiration Date"), approximately $380.2 million aggregate principal amount, or approximately 27.60% of the approximately $1.3772 billion of Old Notes subject to the Exchange Offers were validly tendered and not validly withdrawn. As a result, the Company expects to issue $175.7 million aggregate principal amount of New Notes in exchange for such validly tendered and accepted Old Notes on the settlement date of the Exchange Offers, which is expected to be on December 1, 2020 (the "Settlement Date"). Additionally, the Company previously issued $50.5 million aggregate principal amount of 6.5% Senior Priority Guaranteed Notes due 2025 in a private transaction (the "Private Exchange Notes") in exchange for $115.0 million aggregate principal amount of its 0.75% Senior Exchangeable Notes due 2024. The Private Exchange Notes are substantially similar to the New Notes with respect to ranking, covenants and certain other terms. The Private Exchange Notes and the New Notes are referred to herein as the Company's "Senior Priority Guaranteed Notes." The issuance of the $50.5 million aggregate principal amount of Private Exchange Notes, when combined with the $175.7 million aggregate principal amount of New Notes to be issued upon settlement of the Exchange Offers, will result in approximately $226.1 million aggregate principal amount of the Senior Priority Guaranteed Notes outstanding upon the settlement of the Exchange Offers and an overall reduction of approximately $269.1 million aggregate principal amount of the Company's senior debt.

The following table sets forth the approximate aggregate principal amounts of each series of Old Notes that were validly tendered and were not validly withdrawn on or prior to the Expiration Date.

Based on these results, the Company expects to accept all Old Notes tendered for exchange and issue New Notes as consideration therefore on the Settlement Date. Holders of Old Notes accepted for exchange will also receive a cash payment equal to the accrued and unpaid interest on such accepted Old Notes from the applicable latest interest payment date to, but not including, the Settlement Date.  Interest on the New Notes will accrue from the Settlement Date.

The Exchange Offers were only made, and the New Notes were offered and will be issued only (a) to holders of Old Notes who are reasonably believed to be "qualified institutional buyers" (as defined in Rule 144A under the Securities Act of 1933, as amended (the "Securities Act") and (b) to holders of Old Notes who are persons other than U.S. persons outside the United States in reliance upon Regulation S under the Securities Act. Holders of Old Notes who have certified to the Company that they are eligible to participate in the Exchange Offers pursuant to at least one of the foregoing conditions are referred to as "Eligible Holders." The Company made the Exchange Offers only to Eligible Holders through, and pursuant to, the terms of a confidential offering memorandum.

The New Notes and the Exchange Offers have not been and will not be registered with the U.S. Securities and Exchange Commission under the Securities Act, or any state or foreign securities laws. The New Notes may not be offered or sold in the United States or for the account or benefit of any U.S. persons except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. The Exchange Offers were not made to Eligible Holders of Old Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. This press release is for informational purposes only and is not an offer to purchase or a solicitation of an offer to purchase or sell any securities, nor shall there be any sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

This notice does not constitute an offer to sell or a solicitation of an offer to buy notes in any jurisdiction where such offer or solicitation would be unlawful, and does not constitute an offer to sell or a solicitation of an offer to buy or an advertisement in respect of notes in any province or territory of Canada other than the provinces of Alberta, British Columbia, Manitoba, Ontario, Québec, Saskatchewan, Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and in those permitted provinces only to investors that are "accredited investors" as defined in National Instrument 45-106 Prospectus Exemptions, or the Securities Act (Ontario), as applicable, and "permitted clients" as defined in National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this press release that address activities, events, or developments that we expect, believe, or anticipate will or may occur in the future are forward-looking statements. The words "anticipate," "assume," "believe," "budget," "estimate," "expect," "forecast," "intend," "plan," "project," "will," and similar expressions are intended to identify forward-looking statements. Such forward-looking statements include, but are not limited to, among other things, the completion of the Exchange Offers. Such forward-looking statements are based on assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions, expected future developments, and other factors that the Company believes are appropriate under the circumstances. These statements are subject to a number of known and unknown risks and uncertainties, which may cause the Company's actual results and performance to be materially different from any future results or performance expressed or implied by the forward-looking statements. Some of these risks are described in the "Risk Factors" section in Part I, Item 1A of the Parent's Annual Report on Form 10-K for the year ended December 31, 2019 and Part II of the Company's Quarterly Report on Form 10-Q for the period ended September 30, 2020. Forward-looking statements are not guarantees of future performance and actual results or performance may be materially different from those expressed or implied in the forward-looking statements. The forward-looking statements in this press release speak as of the date of this press release. The forward-looking statements contained in this press release reflect management's estimates and beliefs as of the date of this press release. The Company and the Parent do not undertake to update these forward-looking statements.

About Nabors Industries Ltd.

Nabors Industries Ltd. (NYSE: NBR) owns and operates one of the world's largest land-based drilling rig fleets and provides offshore platform rigs in the United States and several international markets. Nabors also provides directional drilling services, tubular services, performance software, and innovative technologies for its own rig fleet and those of third parties. Leveraging advanced drilling automation capabilities, Nabors' highly skilled workforce continues to set new standards for operational excellence and transform the industry.

Media Contact

For further information regarding Nabors, please contact William C. Conroy, Vice President of Corporate Development & Investor Relations at + 1 281-775-2423 or Kara Peak, Director of Corporate Development & Investor Relations at +1 281-775-4954. To request investor materials, contact Nabors' corporate headquarters in Hamilton, Bermuda at + 1 441-292-1510 or via email at mark.andrews@nabors.com.

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SOURCE Nabors Industries Ltd.

HAMILTON, Bermuda, Nov. 13, 2020 /PRNewswire/ -- Nabors Industries, Inc. ("Nabors" or the "Company"), a wholly-owned subsidiary of Nabors Industries Ltd. ("Parent") (NYSE: NBR) today announced the early results of its previously announced offers to all Eligible Holders (as defined below) to exchange (the "Exchange Offers") (x) certain aggregate principal amounts of the Company's (i) 4.625% Senior Notes due 2021, (ii) 5.50% Senior Notes due 2023, (iii) 5.10% Senior Notes due 2023, (iv) 5.75% Senior Notes due 2025, (v) 0.75% Senior Exchangeable Notes due 2024 and (y) certain aggregate principal amounts of the Parent's (i) 7.25% Senior Guaranteed Notes due 2026 and (ii) 7.50% Senior Guaranteed Notes due 2028 (together, the "Old Notes") for up to $300 million aggregate principal amount of newly issued 9.00% senior priority guaranteed notes due 2025 (the "New Notes").

As of 5:00 p.m., New York City time, on November 12, 2020 (the "Original Early Participation Date"), approximately $344.9 million aggregate principal amount of Old Notes had been tendered in the Exchange Offers. Based on the tender results to date, approximately $160.8 million aggregate principal amount of New Notes would be issued upon settlement of the Exchange Offers. Additionally, the Company previously issued $50.5 million aggregate principal amount of 6.5% Senior Priority Guaranteed Notes due 2025 in a private transaction (the "Private Exchange Notes") in exchange for $115 million aggregate principal amount of its 0.75% Senior Exchangeable Notes due 2024.  The Private Exchange Notes are substantially similar to the New Notes with respect to ranking, covenants and certain other terms. The Private Exchange Notes and the New Notes are referred to herein as the Company's "Senior Priority Guaranteed Notes." The issuance of the $50.5 million aggregate principal amount of Private Exchange Notes, when combined with the $160.8 million aggregate principal amount of New Notes to be issued upon settlement of the Exchange Offers based on the tender results to date, would result in approximately $211.3 million aggregate principal amount of the Senior Priority Guaranteed Notes outstanding upon the settlement of the Exchange Offers.

In addition, Nabors announced that it has extended the "Early Participation Date" with respect to its 5.50% Senior Notes due 2023, 5.10% Senior Notes due 2023, 5.75% Senior Notes due 2025 and 0.75% Senior Exchangeable Notes due 2024 to 11:59 p.m., New York City time, on November 27, 2020 (the "Amended Early Participation Deadline"). Accordingly, Eligible Holders of such Old Notes who tender their Notes after the Original Early Participation Date and prior to the Amended Early Participation Deadline will continue to be eligible to receive the Total Consideration as set forth in the confidential exchange offering memorandum, dated October 29, 2020 (the "Offering Memorandum"), which includes an early tender payment of $50 principal amount of New Notes per $1,000 principal of such Old Notes (the "Early Tender Payment"). Eligible Holders of the Old Notes for which the Early Participation Date has not been extended, who tender such Old Notes after the Original Early Participation Date, will only be eligible to receive the Exchange Consideration set forth in the Offering Memorandum, which does not include the Early Tender Payment.

Due to the extension of the Early Participation Date for the certain series listed above, Nabors has opted not to exercise its option to have an early settlement for the Exchange Offers. Accordingly, the Exchange Offers will only have one settlement after the expiration of the Exchange Offers.

Except as described herein, the terms and conditions of the Exchange Offers remain the same as set forth and detailed in the Offering Memorandum, copies of which were previously distributed to Eligible Holders. Withdrawal rights expired at 5:00 p.m., New York City time, on November 12, 2020 and tendered Old Notes may no longer be withdrawn.

The Exchange Offers are being made, and the New Notes are being offered and will be issued only (a) to holders of Old Notes who are reasonably believed to be "qualified institutional buyers" (as defined in Rule 144A under the Securities Act of 1933, as amended (the "Securities Act")) and (b) to holders of Old Notes who are persons other than U.S. persons outside the United States in reliance upon Regulation S under the Securities Act. Holders of Old Notes who have certified to the Company that they are eligible to participate in the Exchange Offers pursuant to at least one of the foregoing conditions are referred to as "Eligible Holders." Only Eligible Holders who have completed and returned an eligibility letter, available from the information agent, may receive and review the Offering Memorandum or participate in the Exchange Offers. Eligible Holders of the Old Notes who desire to obtain and complete an eligibility form should contact the information agent and exchange agent, Global Bondholder Services Inc., at 866-470-3900 (toll-free) or (212) 430-3774 (for banks and brokers), or online at https://gbsc-usa.com/eligibility/nabors.

Eligible Holders of the Old Notes are urged to carefully read the Offering Memorandum before making any decision with respect to the Exchange Offers. None of the Company, the Parent, the dealer managers, the trustees or securities administrators with respect to the Old Notes, the trustee with respect to the New Notes, the information and exchange agent or any affiliate of any of the foregoing makes any recommendation as to whether Eligible Holders of the Old Notes should exchange their Old Notes for New Notes in the Exchange Offers, and no one has been authorized by any of them to make such a recommendation. Eligible Holders must make their own decision as to whether to tender their Old Notes and, if so, the principal amount of Old Notes to tender.

The New Notes and the Exchange Offers have not been and will not be registered with the U.S. Securities and Exchange Commission under the Securities Act, or any state or foreign securities laws. The New Notes may not be offered or sold in the United States or for the account or benefit of any U.S. persons except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. The Exchange Offers are not being made to Eligible Holders of Old Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. This press release is for informational purposes only and is not an offer to purchase or a solicitation of an offer to purchase or sell any securities, nor shall there be any sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

This notice does not constitute an offer to sell or a solicitation of an offer to buy notes in any jurisdiction where such offer or solicitation would be unlawful, and does not constitute an offer to sell or a solicitation of an offer to buy or an advertisement in respect of notes in any province or territory of Canada other than the provinces of Alberta, British Columbia, Manitoba, Ontario, Québec, Saskatchewan, Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and in those permitted provinces only to investors that are "accredited investors" as defined in National Instrument 45-106 Prospectus Exemptions, or the Securities Act (Ontario), as applicable, and "permitted clients" as defined in National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this press release that address activities, events, or developments that we expect, believe, or anticipate will or may occur in the future are forward-looking statements. The words "anticipate," "assume," "believe," "budget," "estimate," "expect," "forecast," "intend," "plan," "project," "will," and similar expressions are intended to identify forward-looking statements. Such forward-looking statements include, but are not limited to, among other things, the completion of the Exchange Offers. Such forward-looking statements are based on assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions, expected future developments, and other factors that the Company believes are appropriate under the circumstances. These statements are subject to a number of known and unknown risks and uncertainties, which may cause the Company's actual results and performance to be materially different from any future results or performance expressed or implied by the forward-looking statements. Some of these risks are described in the "Risk Factors" section in Part I, Item 1A of the Parent's Annual Report on Form 10-K for the year ended December 31, 2019 and Part II of the Company's Quarterly Report on Form 10-Q for the period ended September 30, 2020. Forward-looking statements are not guarantees of future performance and actual results or performance may be materially different from those expressed or implied in the forward-looking statements. The forward-looking statements in this press release speak as of the date of this press release. The forward-looking statements contained in this press release reflect management's estimates and beliefs as of the date of this press release. The Company and the Parent do not undertake to update these forward-looking statements.

About the Company

Nabors Industries Ltd. (NYSE: NBR) owns and operates one of the world's largest land-based drilling rig fleets and provides offshore platform rigs in the United States and several international markets. Nabors also provides directional drilling services, tubular services, performance software, and innovative technologies for its own rig fleet and those of third parties. Leveraging advanced drilling automation capabilities, Nabors' highly skilled workforce continues to set new standards for operational excellence and transform the industry.

Media Contact

For further information regarding Nabors, please contact William C. Conroy, Vice President of Corporate Development & Investor Relations at + 1 281-775-2423 or Kara Peak, Director of Corporate Development & Investor Relations at +1 281-775-4954. To request investor materials, contact Nabors' corporate headquarters in Hamilton, Bermuda at + 1 441-292-1510 or via email at mark.andrews@nabors.com.

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SOURCE Nabors Industries Ltd.

HAMILTON, Bermuda, Nov. 3, 2020 /PRNewswire/ -- Nabors Industries Ltd. ("Nabors" or the "Company") (NYSE: NBR) today reported third quarter 2020 operating revenues of $438 million, compared to operating revenues of $534 million in the second quarter of 2020. The net loss from continuing operations attributable to Nabors common shareholders for the quarter was $161 million, or $23.42 per share, compared to a loss of $152 million, or $22.13 per share in the prior quarter. After-tax charges in the third quarter totaled $4 million, or $0.61 per share, primarily related to severance costs. In the second quarter, after-tax charges totaled $54 million, or $7.68 per share, mainly from asset impairments and severance costs.

For the third quarter, adjusted EBITDA was $114 million, compared to $154 million in the prior quarter. Nabors' global drilling rig count declined by 11%, driven by a 16% reduction in its Lower 48 rig count, while the quarterly average rig count for this market fell by 37%. International rigs decreased by 11, or 13%. The majority of Nabors global rig decline resulted from temporary suspensions of rigs in Saudi Arabia, as well as contract cancellations in Kazakhstan, Colombia and Algeria. Several rigs in international markets continued on reduced or standby rates due to COVID restrictions. The third quarter benefited from a positive revenue adjustment of approximately $6 million, related to favorable outcomes in pricing negotiations across our International Drilling segment. Second quarter results benefited from one-time net gains of approximately $8 million, primarily reflecting revenue from early terminations on international drilling contracts.

Anthony G. Petrello, Nabors Chairman, CEO and President, commented, "Our third quarter results were somewhat better than we expected. We executed well across the enterprise. Even as activity deteriorated as anticipated, margins were better than we projected in the Lower 48 and International rig markets. The spending reductions we implemented earlier this year supported our free cash flow generation and a modest improvement in net debt.

"The third quarter appears to mark an inflection point in the Lower 48 industry rig market, which has risen some 52 rigs, or 23%, from the level in mid-August. This momentum bolstered our own rig count through the quarter, and supported daily rig margins in the face of challenging industry utilization. Based on quarterly average working rig counts, we increased our Lower 48 market share by approximately three points sequentially, and in the third quarter held approximately a 15% share. In a difficult environment, this gain demonstrates growing client preference for our value proposition.

"We expect activity in the Lower 48 to continue improving. As we place rigs back to work, pricing on these rigs should be meaningfully below our Lower 48 fleet average. We have mitigated pricing erosion with significant reductions to our direct costs. Nonetheless, the full impact of current market pricing on our margins still lies ahead.

"In our International Drilling segment, rig count declined by 11 rigs. This change primarily reflects reduced activity in the Eastern Hemisphere in reaction to weak market fundamentals. Temporary suspensions accounted for most of the quarter's reduction in rig count. We expect our suspended rigs to resume operations beginning in early 2021. In addition to this reduction in activity, our revenue continues to be affected materially by lower negotiated and standby rates reflecting COVID restrictions in a few markets.

"Activity trends in our international markets are mixed. We continue to see a gradual recovery in the Latin America markets. During the third quarter, we drilled a record well for an operator in Argentina. As a direct result of this performance, we have been awarded additional content from our Drilling Solutions portfolio on future wells, displacing incumbent competitors in the process.

"In the Eastern Hemisphere, we have experienced further activity suspensions in the fourth quarter. Although we expect our International rig count to decline during the remainder of the year, we anticipate it to stabilize by year end and gradually improve throughout 2021.

"The resurgence of COVID, and the recent volatility in oil prices, may temper this improvement in the market. Those factors notwithstanding, we remain focused on cost and capital discipline in order to generate free cash flow and reduce net debt."

Consolidated and Segment Results

The U.S. Drilling segment reported $60.5 million in adjusted EBITDA for the third quarter of 2020, a $17.1 million, or 22%, reduction from the prior quarter. During the quarter, Nabors' Lower 48 rig count, at 48, decreased by 9 rigs, or 16%. Average daily margins in the Lower 48 narrowed by $922, to $9,527, driven by a reduction in pricing of approximately $1,500 per day. The Company reduced daily operating costs by about $600 per day to help mitigate the weaker dayrates. The U.S. segment's rig count currently stands at 58, with 53 rigs on rate in the Lower 48. Nabors' rig count troughed at 45 rigs and has since recovered on increased market demand. Based on the Company's current outlook, the fourth quarter average Lower 48 rig count is expected to increase by two to four rigs over the third quarter average.  Fourth quarter drilling margins are expected to range between $8,500 and $9,000, reflecting additional pricing erosion. In the fourth quarter, the Company expects the U.S. Offshore and Alaska markets to experience stable activity and adjusted EBITDA in line with the third quarter.

International Drilling adjusted EBITDA declined sequentially from the prior quarter by $21.6 million, to $71.9 million. The third quarter benefited from retroactive pricing adjustments in several markets and by exceptional operating performance in Saudi Arabia. This was more than offset by the absence of the prior quarter's one-time gains related to early terminations, coupled with activity reductions across markets. The International rig count averaged 71 rigs, a 13% decline from the prior quarter. Average margin per day was $12,678, a decline of $1,413, driven by a less favorable mix and the significant drop in rig count on relatively stable field support costs.

The Company's fourth quarter outlook includes an additional four rig decline in the Eastern Hemisphere, two of which are temporary suspensions. Sequentially, Nabors expects its margins in the fourth quarter to be impacted by the absence of the third quarter retroactive revenue adjustment, and by additional costs in Saudi Arabia, related to ramping up of the SANAD rig count in preparation for resumption of activity at the beginning of next year. The Company's revenue in Mexico also will be affected by a lengthy rig move between platforms during the quarter.

Canada Drilling reported adjusted EBITDA of $2.2 million, as rig activity increased from the seasonal low in the second quarter. Average daily gross margin increased significantly as the average working rig count improved, resulting in materially better cost absorption. The third quarter rig count totaled 7.4 rigs, up by 5.2 rigs from the prior quarter. For the fourth quarter of 2020, the Company expects rig activity at least equal to the third quarter.

In Drilling Solutions, adjusted EBITDA of $7.1 million declined by $2.3 million, or 24%, compared to the second quarter, due to reduced activity across service lines together with continued price erosion. The segment's activity level is closely linked to the total Lower 48 rig count with significant activity lost both on Nabors and third-party rigs. 

In the Rig Technologies segment, third quarter adjusted EBITDA was $1.3 million, down from the prior quarter adjusted EBITDA of $3.2 million. Lower capital equipment sales were the largest driver of the decline in segment results. The Company expects fourth quarter adjusted EBITDA for Drilling Solutions and Rig Technologies to remain roughly in line with the third quarter results.

Free Cash Flow and Capital Discipline

Capital expenditures were $39 million in the third quarter, and totaled $149 million for the first nine months of 2020. The Company expects capital expenditures of approximately $200 million for the full year.

Free cash flow, defined as net cash provided by operating activities less net cash used by investing activities, as presented in our cash flow statement, reached $9 million in the third quarter. These results include the impact of approximately $80 million in semiannual interest payments on senior notes during the third quarter. In September, the Company redeemed $139 million of its 5.00% notes at maturity. Total debt increased by $14 million during the third quarter and net debt, defined as total debt less cash, cash equivalents and short-term investments, declined by $6 million. Cash, cash equivalents and short-term investments closed at $514 million, a $20 million increase over the prior quarter. Subsequent to the end of the third quarter, the Company's indirect wholly-owned subsidiary, Nabors Industries, Inc., completed a private transaction in which $115 million in principal amount of its 0.75% Senior Exchangeable Notes due 2024 were exchanged for approximately $50.5 million of new 6.5% Senior Priority Guaranteed Notes due 2025. 

William Restrepo, Nabors CFO, stated, "The third quarter environment continued to test the strength of our Company. Despite the challenges we face, there were many encouraging signs. Our team in the U.S. continued to deliver robust daily margins for the Lower 48 market and superior HSE performance, while maintaining our relative market share performance. We managed to conclude negotiations with several clients. This will allow us to resume collections of our receivables with these customers. Our activity overall has held up better than we thought, which resulted in strong adjusted EBITDA for the quarter. As promised, we once again delivered positive free cash flow, despite some deterioration in our DSOs and the semiannual interest payments on our notes. As a reminder, interest payments on our notes occur in the first and third quarters.

"We reduced overhead costs beginning in the second quarter. We made further progress in the third quarter. G&A, R&E and field support expenses totaled $85.4 million, an improvement versus $89.1 million in the second quarter. We expect those costs to remain at a similar level in the fourth quarter. Our cost and capital discipline has helped us absorb the difficult market trends. 

"Although Lower 48 activity appears to have troughed, pricing remains weak. The International rig count continues to decline and our smaller segments are not pulling their weight. We expect our adjusted EBITDA to decrease materially in the fourth quarter and consequently will continue to focus on our costs and capital expenditures. Despite lower adjusted EBITDA, we anticipate free cash flow for the fourth quarter of approximately $90 million to $100 million. As we have done these past years, we will continue to use our free cash flow to reduce our debt levels."

Mr. Petrello concluded, "While we remain focused on our financial goals, we are positioning the Company for the next upturn.

"Digitalization, analytics and automation will be the enabling technologies in the future. These transformations are already underway, and Nabors continues to drive these innovations.

"Our recently introduced RigCLOUD^® digital platform, which is already gaining momentum with multiple major clients, is the central element of our comprehensive digital strategy. Our near-term objective for this leading-edge technology is to expand its penetration into the full range of clients. Further development of this technology and additional scale will be keys to our success.

"I would again like to thank our employees for their efforts and sacrifices in this trying environment. We owe our success to the hard work and dedication of the industry's best and safest workforce."

About Nabors

Nabors (NYSE: NBR) owns and operates one of the world's largest land-based drilling rig fleets and provides offshore platform rigs in the United States and several international markets. Nabors also provides directional drilling services, tubular services, performance software, and innovative technologies for its own rig fleet and those of third parties. Leveraging advanced drilling automation capabilities, Nabors highly skilled workforce continues to set new standards for operational excellence and transform the industry.

Forward-looking Statements

The information included in this press release includes forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. Such forward-looking statements are subject to a number of risks and uncertainties, as disclosed by Nabors from time to time in its filings with the Securities and Exchange Commission. As a result of these factors, Nabors' actual results may differ materially from those indicated or implied by such forward-looking statements. The forward-looking statements contained in this press release reflect management's estimates and beliefs as of the date of this press release. Nabors does not undertake to update these forward-looking statements. 

Non-GAAP Disclaimer

This press release may present certain "non-GAAP" financial measures.  The components of these non-GAAP measures are computed by using amounts that are determined in accordance with accounting principles generally accepted in the United States of America ("GAAP").  Adjusted operating income (loss) represents income (loss) from continuing operations before income taxes, interest expense, earnings (losses) from unconsolidated affiliates, investment income (loss), impairments and other charges and other, net. Adjusted EBITDA is computed similarly, but also excludes depreciation and amortization expenses. In addition, adjusted EBITDA and adjusted operating income (loss) exclude certain cash expenses that the Company is obligated to make. Net debt is calculated as total debt minus the sum of cash, cash equivalents and short-term investments.  Free cash flow represents net cash provided by operating activities less cash used for investing activities. Free cash flow is an indicator of our ability to generate cash flow after required spending to maintain or expand our asset base. Management believes that this non-GAAP measure is useful information to investors when comparing our cash flows with the cash flows of other companies. Each of these non-GAAP measures has limitations and therefore should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including adjusted EBITDA, adjusted operating income (loss), net debt, and free cash flow, because it believes that these financial measures accurately reflect the Company's ongoing profitability and performance.  Securities analysts and investors also use these measures as some of the metrics on which they analyze the Company's performance. Other companies in this industry may compute these measures differently.  Reconciliations of consolidated adjusted EBITDA and adjusted operating income (loss) to income (loss) from continuing operations before income taxes, net debt to total debt, and free cash flow to cash flow provided by operations, which are their nearest comparable GAAP financial measures, are included in the tables at the end of this press release. 

Media Contact:  William C. Conroy, Vice President of Corporate Development & Investor Relations, +1 281-775-2423, or Kara Peak, Director of Corporate Development & Investor Relations, +1 281-775-4954.   To request investor materials, contact Nabors' corporate headquarters in Hamilton, Bermuda at +441-292-1510 or via e-mail mark.andrews@nabors.com

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SOURCE Nabors Industries Ltd.

HAMILTON, Bermuda, Oct. 29, 2020 /PRNewswire/ -- Nabors Industries, Inc. ("Nabors" or the "Company"), a wholly-owned subsidiary of Nabors Industries Ltd. ("Parent") (NYSE: NBR) today announced that it has commenced offers to all Eligible Holders (as defined below) to exchange (the "Exchange Offers") certain aggregate principal amounts of the outstanding notes listed in the table below (together, the "Old Notes") for up to $300 million aggregate principal amount of newly issued 9.00% senior priority guaranteed notes due 2025 (the "New Notes"), in each case upon the terms and subject to the conditions set forth in the Company's confidential exchange offering memorandum, dated October 29, 2020 (the "Offering Memorandum").  The Company also announced that it completed a private exchange transaction whereby $115,000,000 aggregate principal of its 0.75% Notes due 2024 were exchanged for $50,485,000 of the Company's newly issued 6.5% Senior Priority Guaranteed Notes due 2025 (the "Private Exchange Notes").

The following table sets forth the consideration to be offered to Eligible Holders of the Old Notes in the Exchange Offers:

The New Notes will mature February 1, 2025 and pay interest at a rate of 9.00% per annum. The New Notes will be Nabors' senior unsecured obligations and will be guaranteed by (i) the Parent, (ii) each of the subsidiaries that guarantee the Parent's existing 7.25% Senior Guaranteed Notes due 2026 and 7.50% Senior Guaranteed Notes due 2028 (together, the "Existing Guaranteed Notes") and (iii) certain lower tier subsidiaries of the Parent that guarantee the Company's revolving credit facility but do not currently guarantee the Existing Guaranteed Notes. The guarantee of the New Notes by such lower tier subsidiaries will be contractually subordinated in right of payment with respect to such lower tier subsidiaries' guarantee of the Company's revolving credit facility. Each of the guarantors of the New Notes have guaranteed the Private Exchange Notes and will guarantee the New Notes on an equal and ratable basis. As a result, the New Notes and the Private Exchange Notes will be structurally senior to all outstanding notes issued by the Company and Parent, including the Existing Guaranteed Notes. Each of the proposed guarantors of the New Notes are existing entities and were not formed in connection with, nor were they the subject of any internal reorganization in anticipation of, the Exchange Offers. In addition, the New Notes will contain substantially similar covenants as are contained in the indenture governing the Existing Guaranteed Notes, except that the covenants in the indenture governing the New Notes will restrict our ability to incur debt in priority to the New Notes and engage in certain asset transfers. Interest on the New Notes will accrue from the initial settlement date of the Exchange Offers as detailed in the Offering Memorandum.

The Private Exchange Notes are guaranteed by the same guarantors that will guarantee the New Notes and, as a result, will be equal in right of payment with the New Notes. The indenture governing the Private Exchange Notes contains substantially the same covenants as are contained in the indenture that will govern the New Notes.

The Exchange Offers are not conditioned upon any minimum amount of Old Notes being tendered.  In addition, the Exchange Offers, either as a whole, or with respect to one or more series of Old Notes, may be amended, extended, terminated or withdrawn, including based on the acceptance rate and outcome of the Exchange Offers or failure to satisfy any condition to the Exchange Offers. 

Pursuant to the Exchange Offers and subject to the proration terms described below, in exchange for each $1,000 principal amount of Old Notes validly tendered and accepted by the Company (and not validly withdrawn) at any time (i) at or prior to 5:00 p.m., New York City time, on November 12, 2020 (the "Early Tender Time"), participating holders will receive a principal amount of New Notes equal to the "Total Consideration" listed in the above table under the column heading "Total Consideration prior to the Early Tender Time" and (ii) after the Early Tender Time, but at any time at or prior to 11:59 p.m., New York City time, on November 27, 2020, participating holders will receive a principal amount of New Notes equal to the "Exchange Consideration" listed in the above table under the column heading "Exchange Consideration after the Early Tender Time."  Participating holders will receive, in cash, accrued and unpaid interest, if any, on their accepted Old Notes up to, but not including, the applicable settlement date for the Exchange Offers.  Tenders of Old Notes may be withdrawn at or prior to 5:00 p.m., New York City time, on November 12, 2020, but not thereafter, subject to limited exceptions and unless as otherwise required by applicable law.

Subject to the proration terms described in the Offering Memorandum, the amounts of each series of Old Notes that are accepted on any settlement date will be determined in accordance with the acceptance priority levels set forth in the table above (the "Acceptance Priority Levels"), with Acceptance Priority Level 1 being the highest Acceptance Priority Level and Acceptance Priority Level 7 being the lowest Acceptance Priority Level.  The "Maximum Exchange Amount" of New Notes that the Company will issue in the Exchange Offers equals $300 million aggregate principal amount of New Notes; provided that the maximum amount of Old Notes to be accepted for exchange with (i) Acceptance Priority Level 5 is $200 million, (ii) Acceptance Priority Level 6 is $50 million and (iii) Acceptance Priority Level 7 is $50 million (together, the "Old Notes Caps"). 

The Exchange Offers are being made, and the New Notes are being offered and will be issued only (a) to holders of Old Notes who are reasonably believed to be "qualified institutional buyers" (as defined in Rule 144A under the Securities Act of 1933, as amended (the "Securities Act")) and (b) to holders of Old Notes who are persons other than U.S. persons outside the United States in reliance upon Regulation S under the Securities Act.  Holders of Old Notes who have certified to the Company that they are eligible to participate in the Exchange Offers pursuant to at least one of the foregoing conditions are referred to as "Eligible Holders."  Only Eligible Holders who have completed and returned an eligibility letter, available from the information agent, may receive and review the Offering Memorandum or participate in the Exchange Offers.  Eligible Holders of the Old Notes who desire to obtain and complete an eligibility form should contact the information agent and exchange agent, Global Bondholder Services Inc., at 866-470-3900 (toll-free) or (212) 430-3774 (for banks and brokers), or online at https://gbsc-usa.com/eligibility/nabors.

Eligible Holders of the Old Notes are urged to carefully read the Offering Memorandum before making any decision with respect to the Exchange Offers. None of the Company, the Parent, the dealer managers, the trustees or securities administrators with respect to the Old Notes, the trustee with respect to the New Notes, the information and exchange agent or any affiliate of any of the foregoing makes any recommendation as to whether Eligible Holders of the Old Notes should exchange their Old Notes for New Notes in the Exchange Offers, and no one has been authorized by any of them to make such a recommendation. Eligible Holders must make their own decision as to whether to tender their Old Notes and, if so, the principal amount of Old Notes to tender.

The New Notes and the Exchange Offers have not been and will not be registered with the U.S. Securities and Exchange Commission under the Securities Act, or any state or foreign securities laws. The New Notes may not be offered or sold in the United States or for the account or benefit of any U.S. persons except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. The Exchange Offers are not being made to Eligible Holders of Old Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. This press release is for informational purposes only and is not an offer to purchase or a solicitation of an offer to purchase or sell any securities, nor shall there be any sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

This notice does not constitute an offer to sell or a solicitation of an offer to buy notes in any jurisdiction where such offer or solicitation would be unlawful, and does not constitute an offer to sell or a solicitation of an offer to buy or an advertisement in respect of notes in any province or territory of Canada other than the provinces of Alberta, British Columbia, Manitoba, Ontario, Québec, Saskatchewan, Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and in those permitted provinces only to investors that are "accredited investors" as defined in National Instrument 45-106 Prospectus Exemptions, or the Securities Act (Ontario), as applicable, and "permitted clients" as defined in National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this press release that address activities, events, or developments that we expect, believe, or anticipate will or may occur in the future are forward-looking statements. The words "anticipate," "assume," "believe," "budget," "estimate," "expect," "forecast," "intend," "plan," "project," "will," and similar expressions are intended to identify forward-looking statements.  Such forward-looking statements include, but are not limited to, among other things, the completion of the Exchange Offers.  Such forward-looking statements are based on assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions, expected future developments, and other factors that the Company believes are appropriate under the circumstances.  These statements are subject to a number of known and unknown risks and uncertainties, which may cause the Company's actual results and performance to be materially different from any future results or performance expressed or implied by the forward-looking statements. Some of these risks are described in the "Risk Factors" section in Part I, Item 1A of the Parent's Annual Report on Form 10-K for the year ended December 31, 2019 and Part II of the Company's Quarterly Report on Form 10-Q for the period ended June 30, 2020.  Forward-looking statements are not guarantees of future performance and actual results or performance may be materially different from those expressed or implied in the forward-looking statements. The forward-looking statements in this press release speak as of the date of this press release. The forward-looking statements contained in this press release reflect management's estimates and beliefs as of the date of this press release. The Company and the Parent do not undertake to update these forward-looking statements.

About the Parent

Nabors Industries Ltd. (NYSE: NBR) owns and operates one of the world's largest land-based drilling rig fleets and provides offshore platform rigs in the United States and several international markets. Nabors also provides directional drilling services, tubular services, performance software, and innovative technologies for its own rig fleet and those of third parties. Leveraging advanced drilling automation capabilities, Nabors' highly skilled workforce continues to set new standards for operational excellence and transform the industry.

Media Contact

For further information regarding Nabors, please contact William C. Conroy, Vice President of Corporate Development & Investor Relations at + 1 281-775-2423 or Kara Peak, Director of Corporate Development & Investor Relations at +1 281-775-4954. To request investor materials, contact Nabors' corporate headquarters in Hamilton, Bermuda at + 1 441-292-1510 or via email at mark.andrews@nabors.com.

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SOURCE Nabors Industries Ltd.

HAMILTON, Bermuda, Oct. 27, 2020 /PRNewswire/ -- Nabors Industries Ltd. (NYSE: NBR) Due to scheduling conflicts, Nabors has rescheduled its third quarter 2020 earnings release and conference call. The call will now be held on Wednesday, November 4, 2020 at 1:00 pm Central Time.  Nabors will release earnings after the equity markets close on Tuesday, November 3, 2020.

Please call ten to fifteen minutes ahead of time to ensure proper connection.  The conference call will be recorded and available for replay for one week, by 4:00 p.m. Central Time on November 4, 2020.  To hear the recording, please call (877) 344-7529 domestically or (412) 317-0088 internationally and enter Participant Elite Entry Number: 10149125.

Nabors will have a live audio webcast of the conference call available on its website at www.nabors.com.  Navigate to the Investor Relations page and then select Events Calendar to join the webcast.  An electronic version of the earnings release and supplemental presentation will also be available to download from the website.

About Nabors

Nabors (NYSE: NBR) owns and operates one of the world's largest land-based drilling rig fleets and provides offshore platform rigs in the United States and several international markets. Nabors also provides directional drilling services, tubular services, performance software, and innovative technologies for its own rig fleet and those of third parties. Leveraging advanced drilling automation capabilities, Nabors highly skilled workforce continues to set new standards for operational excellence and transform the industry.

Media Contact

William C. Conroy, Vice President of Corporate Development & Investor Relations, +1 281-775-2423, or Kara Peak, Director of Corporate Development & Investor Relations, +1 281-775-4954.   To request investor materials, contact Nabors' corporate headquarters in Hamilton, Bermuda at +441-292-1510 or via e-mail mark.andrews@nabors.com.

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SOURCE Nabors Industries Ltd.

HAMILTON, Bermuda, Oct. 13, 2020 /PRNewswire/ -- Nabors Industries Ltd. (NYSE: NBR) invites you to join Anthony G. Petrello, Chairman and Chief Executive Officer, and William Restrepo, Chief Financial Officer, Thursday, October 29^th at 1:00 p.m. Central Time for a discussion of operating results for the third quarter ended September 30, 2020.  Nabors will release earnings before the market opens on October 29, 2020.

Please call ten to fifteen minutes ahead of time to ensure proper connection.  The conference call will be recorded and available for replay for one week, by 4:00 p.m. Central Time on October 29, 2020.  To hear the recording, please call (877) 344-7529 domestically or (412) 317-0088 internationally and enter Participant Elite Entry Number: 10149125.

Nabors will have a live audio webcast of the conference call available on its website at www.nabors.com.  Navigate to the Investor Relations page and then select Events Calendar to join the webcast.  An electronic version of the earnings release and supplemental presentation will also be available to download from the website.

About Nabors

Nabors owns and operates one of the world's largest land-based drilling rig fleets and is a provider of offshore rigs in the United States and numerous international markets. Nabors also provides directional drilling services, performance tools, and innovative technologies for its own rig fleet and those of third parties. Leveraging its advanced drilling automation capabilities, Nabors highly skilled workforce continues to set new standards for operational excellence and transform its industry.

Media Contact

For further information regarding Nabors, please contact William C. Conroy, Vice President of Corporate Development & Investor Relations at + 1 281-775-2423 or Kara Peak, Director of Corporate Development & Investor Relations at +1 281-775-4954. To request investor materials, contact Nabors' corporate headquarters in Hamilton, Bermuda at + 1 441-292-1510 or via email at mark.andrews@nabors.com.

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SOURCE Nabors Industries Ltd.

HAMILTON, Bermuda, July 1, 2020 /PRNewswire/ -- PR Newswire - Nabors Industries Ltd. (NYSE: NBR) invites you to join Anthony G. Petrello, Chairman and Chief Executive Officer, and William Restrepo, Chief Financial Officer, Wednesday, July 29^th at 1:00 p.m. Central Time for a discussion of operating results for the second quarter ended June 30, 2020.  Nabors will release earnings after the market closes on July 28, 2020.

Please call ten to fifteen minutes ahead of time to ensure proper connection.  The conference call will be recorded and available for replay for one week, by 4:00 p.m. Central Time on July 29, 2020.  To hear the recording, please call (877) 344-7529 domestically or (412) 317-0088 internationally and enter Participant Elite Entry Number: 10145829.

Nabors will have a live audio webcast of the conference call available on its website at www.nabors.com.  Navigate to the Investor Relations page and then select Events Calendar to join the webcast.  An electronic version of the earnings release and supplemental presentation will also be available to download from the website.

About Nabors

Nabors owns and operates one of the world's largest land-based drilling rig fleets and is a provider of offshore rigs in the United States and numerous international markets. Nabors also provides directional drilling services, performance tools, and innovative technologies for its own rig fleet and those of third parties. Leveraging its advanced drilling automation capabilities, Nabors highly skilled workforce continues to set new standards for operational excellence and transform its industry.

Media Contact

For further information regarding Nabors, please contact William C. Conroy, Vice President of Corporate Development & Investor Relations at + 1 281-775-2423 or Kara Peak, Director of Corporate Development & Investor Relations at + 1 281-775-4954. To request investor materials, contact Nabors' corporate headquarters in Hamilton, Bermuda at + 1 441-292-1510 or via email at mark.andrews@nabors.com.

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SOURCE Nabors Industries Ltd.

HAMILTON, Bermuda, May 5, 2020 /PRNewswire/ -- Nabors Industries Ltd. (NYSE: NBR) ("Nabors" or the "Company") announced today that its Board of Directors has adopted a limited duration shareholder rights plan under which shareholders will receive rights (the "Rights") to purchase shares of a series of preferred shares. The Rights will expire on April 30, 2021.

The rights plan was adopted specifically to restrict the ability of persons or groups to acquire more than 4.9% of the Company's common shares, U.S.$0.05 per share (the "Common Shares"), thus protecting against a loss of Nabors' U.S. federal net loss carryforwards and other tax assets that may be used to reduce future U.S. federal income tax obligations.  In addition, the rights plan will help ensure fair treatment of Nabors' shareholders in light of the significant drop in oil prices exacerbated by the COVID-19 pandemic. The rights plan will reduce the likelihood that persons or groups will be able to gain control of Nabors without paying a control premium. The adoption of the rights plan, however, is not a response to any known effort to acquire control of the Company.

The rights plan is evidence by an agreement (the "Rights Agreement") by and between the Company and Computershare Trust Company, N.A., as Rights Agent, and is similar to other rights plans adopted by publicly-held companies (including certain of the Company's competitors).  The Rights Agreement is more fully described in a Form 8-K issued by the Company. 

About Nabors

Nabors owns and operates one of the world's largest land-based drilling rig fleets and is a provider of offshore rigs in the United States and numerous international markets. Nabors also provides directional drilling services, performance tools, and innovative technologies for its own rig fleet and those of third parties. Leveraging its advanced drilling automation capabilities, Nabors highly skilled workforce continues to set new standards for operational excellence and transform its industry.

Media Contact

For further information regarding Nabors, please contact William Conroy, Vice President of Corporate Development & Investor Relations, +1 281-775-2423, or Kara Peak, Director of Corporate Development & Investor Relations, +1 281-775-4954. To request investor materials, contact Nabors' corporate headquarters in Hamilton, Bermuda at + 1 441-292-1510 or via email at mark.andrews@nabors.com.

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SOURCE Nabors Industries Ltd.

HAMILTON, Bermuda, May 5, 2020 /PRNewswire/ -- Nabors Industries Ltd. ("Nabors" or the "Company") (NYSE: NBR) today reported first quarter 2020 operating revenues of $718 million compared to operating revenues of $714 million in the fourth quarter of 2019. The net loss from continuing operations attributable to Nabors common shareholders for the quarter was $395 million, or $56.72 per share, compared to a loss of $267 million, or $38.66 per share in the prior quarter. The first quarter's net loss included the impact of the Company's review for potential asset impairments. As a result of this review, the Company has impaired its remaining goodwill and intangibles, as well as certain fixed assets and other assets. After-tax charges in the first quarter totaled $260 million, or $36.86 per share. The fourth quarter's results included after-tax charges of $186 million, or $26.43 per share, related to impairments of fixed assets, goodwill, intangibles, and other assets. All per-share figures have been adjusted for the 1-for-50 reverse stock split which was effective on April 22, 2020.

For the first quarter, adjusted EBITDA was $188 million as compared to $203 million in the prior quarter. With the exception of Canada, all segments fell by varying degrees in response to the current pandemic. In the U.S., a 15% decline in the land rig count for the industry drove a 9% reduction in Nabors' drilling activity in the Lower 48, as well as declines in Nabors Drilling Solutions and in Canrig's aftermarket sales and services. International activity was also impacted by COVID-related disruptions, particularly in Latin America. A seasonal recovery in the Canadian market and significant reductions in corporate overhead were offsets to these reductions.  

Anthony G. Petrello, Nabors Chairman, CEO and President, commented, "I would like to recognize the efforts and performance of our global team during the COVID-19 pandemic. Collectively, we have minimized the impact to our employees and to our operations. Among our 14,000 employees, we have experienced less than 10 cases of the virus. I believe that our industry-leading safety culture and crisis management systems have proved invaluable in addressing this pandemic.

"In the first quarter, our operating performance was solid even as it reflected the early impact of the coronavirus. In the U.S. Lower 48, our customer base adjusted its prior plans and reduced activity, with the decrease accelerating as we approached the end of the quarter. Daily rig margins were impacted primarily by the costs to stack idled rigs, while pricing held steady.

"In our International Drilling segment, rig count remained stable as additional deployments in Mexico and Kuwait were offset by idled rigs in other countries particularly in Latin America. Adjusted EBITDA was affected by operational challenges brought on by COVID-19. In addition, we experienced higher than expected startup costs for rig deployments in Russia."

Consolidated and Segment Results

The U.S. Drilling segment reported $102 million in adjusted EBITDA for the first quarter of 2020, an $11.3 million reduction from the prior quarter, primarily from lower activity in the Lower 48. During the quarter, the Lower 48 rig count decreased by 8.5 rigs while average daily margins compressed somewhat to $9,891, reflecting higher rig stacking expenses. The Company expects average daily margins of approximately $9,000 in the second quarter of 2020. This decline includes the expected impacts of lower leading edge rig rates and increasing costs to stack rigs. The U.S. segment's rig count currently stands at 66, with 58 rigs in the Lower 48. Based on the Company's current outlook, the second quarter average Lower 48 rig count should fall by approximately one third from the first quarter average of 89.

International Drilling adjusted EBITDA decreased sequentially by $4.6 million. The quarterly average rig count, at 87, was essentially in line with the prior quarter, while the average margin per day declined by just under $700 to $13,471. This decrease principally resulted from disruptions and downtime related to the COVID-19 virus, as well as excess costs from the startup of new contracts. The international rig count currently stands at 83. Given the current environment, the Company expects some reduction in rig count during the second quarter, and adjusted EBITDA to decline.

Canada Drilling adjusted EBITDA increased by 50% to $8 million, as rig activity in that market reached its seasonal peak. Both average daily gross margin and the average working rig count increased during the quarter. For the second quarter of 2020, normally this market's seasonally weakest, the Company expects a significant decline in EBITDA.

In Drilling Solutions, adjusted EBITDA of $19.4 million was $5.3 million lower than the fourth quarter. In the first quarter, profitability was impacted by reduced activity across service lines, particularly in the U.S. as the industry rig count retreated.

In the Rig Technologies segment, first quarter adjusted EBITDA was a loss of $3.2 million, as compared to a loss of $1.6 million in the fourth quarter. The decline was mainly due to lower aftermarket sales of parts and services in the U.S. 

Cost Reductions and Capital Discipline

Starting in March of 2020, the Company implemented action plans to mitigate the impact of the pandemic on its financial results and liquidity position. As the market deteriorated further due to the dispute between two of the largest oil exporting nations, the Company took additional measures. It has already implemented several actions related to its fixed cost structure. The Company has adjusted its corporate structure, temporarily reduced compensation throughout, and right-sized the field support organization. The combined impact of these actions amounts to $85 million in overhead reductions over the remainder of 2020. In addition, it has cut planned capital expenditures to $240 million, translating into a reduction of approximately $185 million as compared to the prior year, and $120 million as compared to initial plans. Capital expenditures were $60 million in the first quarter, approximately equal to the preceding quarter. Finally, management has recommended the suspension of the dividend on common stock for a savings this year of $7 million. All of these actions combined represent reductions of over $200 million versus the Company's initial forecast for 2020.

Free cash flow, defined as net cash provided by operating activities less net cash used by investing activities, as presented in our cash flow statement, reached $8 million in the first quarter. First quarter free cash flow is typically the most challenged, due to semiannual cash interest payments and other beginning of year annual disbursements.

William Restrepo, Nabors Chief Financial Officer, stated, "Even as global oilfield activity began to decline in the first quarter, Nabors delivered positive free cash flow. This is very encouraging for a first quarter, given our normal annual cash flow cycle. However, since the environment has deteriorated materially, we expect our activity levels to decline as compared to our initial expectations. Consequently, we have taken swift and impactful actions to compensate for the negative effect on our cash flow. The level of the measures that we have taken is intended to support our target to meaningfully reduce our net debt in 2020.

"In January we completed the issuance of $1 billion of new senior guaranteed notes, maturing 2026 and 2028. We also successfully tendered for $953 million of our previously outstanding notes due in 2020, 2021 and 2023. With these transactions, we extended the maturity of approximately $1 billion of debt by more than four years, significantly reducing our nearer-term debt maturities. During the first quarter, we also purchased approximately $135 million of our shorter maturities in the open market at a discount to par. As of today the outstanding balances of our 2020 and 2021 senior notes are $139 million and $173 million, respectively. At March 31, our balances of cash and cash equivalents plus our undrawn credit facility totaled $1.0 billion."

Mr. Petrello concluded, "In the first quarter, we took decisive steps to address the changing oilfield market as the potential magnitude of the downturn became more apparent. Subsequently, we implemented a second round of essential actions, also targeted at supporting free cash flow this year. The speed and magnitude of our actions are driven by our overarching goal to generate free cash flow and reduce our debt, while delivering industry leading drilling performance with top tier safety results. We remain vigilant and will continue to scrutinize our cost structure.

"Due to the strategic initiatives which we implemented since the last major downturn, the Company stands in a significantly better position to weather the current storm. I would like to thank our employees for their tireless dedication to the success of our company, especially during these difficult times. Further, I want to acknowledge our customers for their continuing confidence in our ability to deliver value to them, and for their cooperation in navigating these challenging circumstances. Finally, let me reassure both our employees and customers that our commitment to their health and safety remains our highest priority."

About Nabors

Nabors (NYSE: NBR) owns and operates one of the world's largest land-based drilling rig fleets and provides offshore platform rigs in the United States and several international markets. Nabors also provides directional drilling services, tubular services, performance software, and innovative technologies for its own rig fleet and those of third parties. Leveraging our advanced drilling automation capabilities, Nabors highly skilled workforce continues to set new standards for operational excellence and transform our industry.

Forward-looking Statements

The information included in this press release includes forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. Such forward-looking statements are subject to a number of risks and uncertainties, as disclosed by Nabors from time to time in its filings with the Securities and Exchange Commission. As a result of these factors, Nabors' actual results may differ materially from those indicated or implied by such forward-looking statements. The forward-looking statements contained in this press release reflect management's estimates and beliefs as of the date of this press release. Nabors does not undertake to update these forward-looking statements. 

Non-GAAP Disclaimer

This press release presents certain "non-GAAP" financial measures. The components of these non-GAAP measures are computed by using amounts that are determined in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Adjusted operating income (loss) represents income (loss) from continuing operations before income taxes, interest expense, earnings (losses) from unconsolidated affiliates, investment income (loss), impairments and other charges and other, net. Adjusted EBITDA is computed similarly, but also excludes depreciation and amortization expenses. In addition, adjusted EBITDA and adjusted operating income (loss) exclude certain cash expenses that the Company is obligated to make. Net debt is calculated as total debt minus the sum of cash, cash equivalents and short-term investments. Free cash flow represents net cash provided by operating activities less cash used for investing activities. Free cash flow is an indicator of our ability to generate cash flow after required spending to maintain or expand our asset base. Management believes that this non-GAAP measure is useful information to investors when comparing our cash flows with the cash flows of other companies. Each of these non-GAAP measures has limitations and therefore should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including adjusted EBITDA, adjusted operating income (loss), net debt, and free cash flow, because it believes that these financial measures accurately reflect the Company's ongoing profitability and performance. Securities analysts and investors also use these measures as some of the metrics on which they analyze the Company's performance. Other companies in this industry may compute these measures differently. Reconciliations of consolidated adjusted EBITDA and adjusted operating income (loss) to income (loss) from continuing operations before income taxes, net debt to total debt, and free cash flow to cash flow provided by operations, which are their nearest comparable GAAP financial measures, are included in the tables at the end of this press release. 

Media Contact: William C. Conroy, Vice President of Corporate Development & Investor Relations, +1 281-775-2423, or Kara Peak, Director of Corporate Development & Investor Relations, +1 281-775-4954. To request investor materials, contact Nabors' corporate headquarters in Hamilton, Bermuda at +441-292-1510 or via e-mail mark.andrews@nabors.com