Nabors Posts 4Q2012 EPS Of $0.44 Per Diluted Share From Continuing Operations, Including Net Gains From Asset Dispositions,

Nabors Posts 4Q2012 EPS Of $0.44 Per Diluted Share From Continuing Operations, 
Including Net Gains From Asset Dispositions, Higher Investment Income & 
Favorable Tax Rate 
- Company Makes Significant Progress Against Strategic Initiatives in 2012 
- Strong Fourth Quarter Cash Flow Yields $458 Million Additional Net Debt 
Reduction for Total Net Debt Reduction of $678 Million Over Last Three Quarters 
- Nine New Multi-Year Contracts Signed for Innovative PACE®-X Rigs 
HAMILTON, Bermuda, Feb. 19, 2013 /CNW/ - Nabors Industries Ltd. (NYSE:NBR) 
today announced its results for the fourth quarter and full year 2012.  The 
Company's net income from continuing operations was $129.3 million ($0.44 per 
diluted share) in the fourth quarter and $239.1 million ($0.82 per diluted 
share) for the full year.  For the comparable periods of the prior year, the 
Company reported net income from continuing operations of $89.5 million ($0.30 
per diluted share) for the fourth quarter and $342.2 million ($1.17 per 
diluted share) for the full year.  The current quarter's adjusted income 
derived from operating activities was $149.8 million, bringing the total for 
2012 to $918.6 million.  This compares to $269.3 million for the corresponding 
quarter of 2011 and $867.4 million for all of 2011.  Revenues for 2012 were 
$1.6 billion for the quarter and $7.0 billion for the full year.  Income from 
discontinued operations for the fourth quarter was a net loss of $101.1 
million ($0.35 per diluted share), reflecting further impairments and reserves 
with respect to the Company's oil and gas operations in British Columbia. 
Tony Petrello, Nabors' Chairman and CEO, commented, "As we anticipated, the 
fourth quarter reflected weaker market conditions, including a near suspension 
of pressure pumping work in late December that continued into early January.  
Nonetheless, we made significant progress toward our strategic objectives, 
namely streamlining our business, achieving a higher level of operational 
excellence and enhancing the flexibility of our financial position.   Although 
it contained formidable challenges, 2012 represented the highest levels of 
revenue, gross margin and EBITDA in the Company's history, while more 
judicious capital deployment yielded strong free cash flow. 
"The consolidation of our U.S. Well Servicing and Pressure Pumping operations 
continues and is beginning to show meaningful cost and performance 
improvements, although obscured by the weaker market environment.  A 
combination of strong operating cash flow, lower capital expenditures, 
additional asset sales and improvements in working capital management enabled 
a $458 million reduction in net debt in the fourth quarter, adding to the $160 
million reduction we achieved in the third quarter.  This enhanced financial 
flexibility facilitates our ability to make capital investments in new rigs 
and technologies and pursue other strategic opportunities.  For example, the 
innovative features of our new PACE(®)–X rig continue to gain market 
traction, as evidenced by the nine additional long-term contracts we secured 
in the quarter with an average duration of 2.7 years and average revenues in 
excess of $29,000 per day.  We now have 21 long-term contract awards in the 
last four quarters in our U.S. land operations alone, 17 of which are for our 
new generation PACE(®)-X rigs.  We are pleased with the customer reaction to 
the innovative features of this new rig design and are engaged in discussions 
regarding more awards." 
Fourth quarter income per share of $0.44 benefited from net gains on asset 
dispositions, higher investment income and a favorable tax rate.  Results also 
included an operating income charge of $17.7 million due to the establishment 
of reserves with respect to a customer bankruptcy and lower expected margins 
on a construction project in our U.S. Offshore operations.  Those charges were 
essentially offset by $16.3 million in early contract termination payments 
during the quarter that are attributable to future periods.  Net gains on 
asset dispositions were $17.2 million (or $0.04 per share) and resulted from 
$160 million in gains on asset sales and $143 million in asset retirements and 
impairments.  The higher than usual investment income reflected non-cash 
mark-to-market increases in certain securities, principally a portion of the 
Company's interest in Honghua Group, a Chinese rig manufacturer.  The 
quarter's results also reflect a tax adjustment to bring the full year 
normalized tax rate to 25%, resulting in a fourth quarter effective tax rate 
of 3%, for an EPS impact of approximately $0.10 per diluted share in the 
quarter. 
Drilling & Rig Services 
Sequential operating income for the Drilling & Rig Services business was 
$138.9 million, compared to $184.6 million posted in the third quarter.  
Operationally, results were lower in US Lower 48 land drilling and Other Rig 
Services, driven by a lower U.S. land rig count and seasonal bottoms in the 
Alaska construction and logistics businesses.  This was partially offset by 
increases in Canada, International and Offshore - adjusting for 
International's third quarter early contract termination payments and the 
fourth quarter U.S. Offshore charges.  The Company averaged 18.5 fewer rigs 
working during the quarter at average margins of $12,140 per rig day, which is 
$211 lower than the third quarter. 
In the Company's U.S. Lower 48 operations, operating income was $94.7 million, 
approximately $20.2 million lower than the third quarter with 21 fewer rigs 
working, the impact of which was partially offset by a $333 increase in 
average margins totaling $12,363 per rig day.  These numbers include $1,028 
per rig day in early termination payments attributable to other periods.  For 
the full year, this unit recorded $467.7 million in operating income, compared 
to $414.3 million for 2011. 
Mr. Petrello continued, "As we have previously discussed, our rig count has 
declined more sharply than the industry for reasons we believe are 
circumstantial and not structural.  Coincident with weakening commodity prices 
and operators' increasing reluctance to renew contracts at durations longer 
than six months, we became increasingly vulnerable as 118 of our long-term 
contracts matured in 2012.  In particular, several major customers with whom 
we enjoyed an outsized market share, sharply curtailed spending, four of which 
accounted for 41 of our 68 rig decrease. Twelve of these rigs received early 
termination compensation, with the balance released as long-term contracts 
matured.  Among these four customers, the one that released the most rigs is 
also the largest subscriber to our new PACE(®)-X rig contracts, affirming 
their satisfaction with our performance.  Further, industry rig counts do not 
reflect the $75 million in lump sum termination and standby payments, 
representing the economic equivalent of 25 working rigs, that we received in 
the last three quarters of 2012.  Our rig count recently bottomed and has 
begun to increase, which we expect to continue over the rest of this quarter, 
although we remain cautious in predicting the timing and magnitude of activity 
improvement.  The performance of our fleet continues to receive recognition 
from our customer base as we recently earned rig of the year honors for a 
large Bakken operator and have recently set records in two Texas fields. 
"Our optimism for the longer-term future is bolstered by this performance, 
coupled with strong and growing customer acceptance of our innovative 
PACE(®)-X rig.  We anticipate more X rig awards in the near term.  We are 
also the leader in the rapidly emerging market for pad-capable rigs, 
particularly walking rigs, which overcome the inherent limitations of skid 
rigs.  Including walking systems currently on order, our U.S. Lower 48 fleet 
comprises 45% of the industry's pad-capable rigs and 50% of the walking rigs. 
"Nonetheless, we expect the first quarter to show a marked decline in income 
given the current low rig count and depressed spot market rates, largely as a 
consequence of numerous speculative rigs entering the market at spot rates 
with minimal durations.  Our availability of highly capable rigs and the 
short-term bias of recent contract renewals give us good leverage in the 
eventual upturn. 
"We consolidated our U.S. Offshore and Alaska drilling operations into U.S. 
Land drilling at the beginning of the fourth quarter, allowing us to 
consolidate overhead, capitalize on the engineering excellence of all three 
organizations and improve labor utilization and efficiency. 
"Our U.S. Offshore operations recorded a loss of $14.3 million, which included 
the aforementioned $17.7 million reversal of previously accrued income in 
light of a customer bankruptcy and lower expected margins on a platform 
construction project.  Absent these charges, operational rig activity 
increased modestly and average margins improved by $6,500 per rig day to 
$15,115 as hurricane season wound down and consolidation savings began to be 
realized.  We expect activity and margins to continue to improve over the next 
two quarters with an improving market and lower costs. 
"Operating income in Alaska reached its seasonal low at $2.2 million, down 
from $4.0 million in the third quarter.  For the full year, operating income 
was $42.5 million, which compared favorably to the $27.7 million achieved by 
this unit in 2011.  Alaska has become increasingly seasonal with the 
progressive tax structure inhibiting year-round activity in the large legacy 
fields.  The fourth quarter is now the seasonal low point, as it lies between 
the end of the summer drilling season and the first quarter commencement of 
the winter exploratory season.  We expect to have a strong first quarter, 
although lower than last year as permitting obstacles have postponed at least 
one significant project into next year. 
"Operating income in our international operations was essentially flat at $23 
million, after normalizing results for the portion of a third quarter 
termination payment attributable to future periods.  For the full year, income 
of $91.2 million was down compared to $123.8 million for 2011.  However, it is 
noteworthy to point out that cash from operations in this unit increased while 
capital expenditures declined significantly, resulting in an overall 
improvement in year over year cash generation of more than $400 million, 
exemplifying our more stringent capital allocation criteria. 
"The near-term outlook remains challenging, but we expect to see improving 
results beginning in the second half of the year, and the longer-term future 
looks increasingly bright.  Higher costs in certain countries are beginning to 
abate as contracts renew at increased rates with high quality rigs in 
increasingly tighter supply.  We have six rigs in Saudi that will undergo 
deferred modifications in the first two quarters, and Yemen and Iraq continue 
to drag our results.  We also have a large project winding down in Latin 
America where we expect to incur some down time before new contracts commence. 
 On the positive side, we recently restarted a jackup in the UAE and renewed 
another at an increased rate in Saudi Arabia for an additional three years.  
These developments, the completion of negotiations on other projects, and the 
gradual improvement in the aforementioned cost issues, support our expectation 
of a second half improvement. 
"In Canada we saw a $5.2 million sequential increase in operating income at 
$28.1 million.  For the full year, this unit achieved a slight improvement in 
income of $96.5 million, compared to $94.6 million in 2011.  While it appears 
the first quarter will represent a significant increase over the fourth 
quarter, we expect it to be significantly below the first quarter of 2012, 
indicative of the customer spending constraints that characterize this market. 
 Nonetheless, the nature of the remaining market favors our fleet mix and is 
supported by the quality of both our drilling and workover operations.  We 
deployed a new slant workover rig to the oilsands and expect soon to deploy a 
new 1,500 horsepower walking rig, both on term contracts for key customers. 
"Our other rig services were down sequentially at $4.8 million with weaker 
results in three of the four units that comprise this segment.  Canrig was 
moderately down, with reduced service and rental income as a result of the 
anemic rig count and fewer capital equipment shipments due to slower new rig 
construction.  Ryan posted a small improvement, while our Alaska construction 
and logistics operations both posted net losses; these accounted for nearly 
80% of this segment's sequential decrease with their activity at seasonal 
troughs.  These operations should rebound sharply in the first quarter as they 
move into their seasonally high quarters. 
Completion & Production Services 
"During the quarter, operating income in our Completion & Production Services 
business line was $50.7 million, down sharply from the $80.0 million achieved 
in the third quarter.  The majority of this decrease came from lower stage 
counts in pressure pumping as our term contract customers compressed activity 
to contractually required minimums combined with a larger than usual drop off 
during the holidays.  Commencing with the U.S. Thanksgiving holiday, depleting 
budgets led to a more severe seasonal contraction than past years, which 
became even worse near the end of the year.  Activity in well servicing and 
fluids services also dropped sharply commencing in mid-November, exacerbated 
by some customer-specific work suspensions in December.  Similarly in pressure 
pumping, we operated only one of our 16 active stimulation spreads during the 
last two weeks of December, as contractual minimums had been met and spot 
market, customers suspended operations for the holidays.  Despite the 
weakening market, full year operating income was $292.2 million compared to 
$303.9 million in 2011, with increases in Production Services more than offset 
by declines in Completion Services. 
"Operating income attributable to the Production Services group was $20.4 
million, down from the $32.8 million realized in the third quarter.  This was 
a product of activity curtailments experienced in the last six weeks of the 
quarter, amplified by the limited ability to reduce costs in such short-term 
situations.  Truck hours were up seven percent, while rig hours dropped by the 
same percentage.  Average hourly rig rates improved modestly as truck rates 
moved slightly lower, both most likely attributable to regional mix.  For the 
full year, operating income was up significantly at $103.7 million, compared 
to $74.7 million for the prior year, indicative of the longer-term trends in 
this business.  We anticipate further improvement in 2013 fueled by the 
continuing growth in the population of maintenance-intensive oil wells and 
increasing demand for fluid services.  Activity recovered significantly in 
mid-January, but we still expect first quarter improvement to be limited by 
the usual seasonal constraints, especially with our growing northern presence. 
"In Completion Services, operating income declined to $30.3 million compared 
to the $47.2 million this unit achieved in the third quarter.  This was 
primarily due to reduced volume and exacerbated by the same limited ability to 
curtail costs during short-term interruptions that we occasionally experience 
in Production Services.  For the full year, operating income was $188.5 
million compared to $229.1 million in 2011.  This business continues to be 
weighed down by an overhang of capacity that is keeping rates and utilization 
suppressed.  Nonetheless, we continue to focus on improving operational and 
logistical efficiency, reducing operating costs, and lowering SG&A through 
improved systems and consolidation, although the financial impact is obscured 
by the challenging market.  Our operational performance is at a good level and 
improving as evidenced by our success in rolling over maturing contracts and 
bundling other related services with numerous operators.  We anticipate a 
further decrease in first quarter income with seasonal weakness amplified by 
our concentration in the most susceptible areas.  The balance of 2013 is 
difficult to forecast for this segment, but we will continue to pursue 
efficiency gains.  Although many of our long-term contracts are expiring, our 
success to date in extending these into exclusive or minimum volume term 
agreements leads us to believe we can maintain a sufficient level of 
utilization. 
Summary 
"Our financial position remains strong and has continued to improve as we 
remain focused on generating free cash flow through a combination of strong 
operational execution, working capital management, judicious capital 
allocation and asset sales where prudent.  At the same time, we will continue 
to invest in our core markets to obtain, regain or maintain leading positions 
in market share and technical innovation and pursue strategic opportunities 
within our core operations where the risk / reward balance warrants. 
"Despite the near-term challenges that several of our markets present, we are 
increasingly optimistic concerning the intermediate and longer-term future of 
all of our operations.  Our previously announced strategic plan of enhancing 
balance sheet flexibility, achieving a higher standard of operational 
excellence, accelerating technology innovation and adoption, and streamlining 
our business is beginning to yield results.  Our progress has been inhibited 
by the obstacles of the weak market conditions we face in many of our 
businesses and compressed financial market multiples; conversely, the 
diminishing drag of previous commitments is beginning to facilitate progress.  
This is evident in the achievements of the last two quarters.  Our success 
with the PACE(®)-X rig reflects our efforts to make Nabors the global 
provider of choice in reducing well costs, especially in shale provinces." 
The Nabors companies actively market approximately 474 land drilling rigs 
throughout the world and approximately 548 land workover and well servicing 
rigs in North America.  Nabors' actively marketed offshore fleet consists of 
36 platform rigs, 12 jackup units and 4 barge rigs in the United States and 
multiple international markets. In addition, Nabors is one of the largest 
providers of hydraulic fracturing, cementing, nitrogen and acid pressure 
pumping services with approximately 805,000 hydraulic horsepower currently in 
service.  Nabors also manufactures top drives and drilling instrumentation 
systems and provides comprehensive oilfield hauling, engineering, civil 
construction, logistics, and facilities maintenance and project management 
services.  Nabors participates in most of the significant oil and gas markets 
in the world. 
The information above 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 certain 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 projections contained in this release reflect management's 
estimates as of the date of the release.  Nabors does not undertake to update 
these forward-looking statements. 
For further information, please contact Dennis A. Smith, Director of Corporate 
Development & Investor Relations, at 281-775-8038. To request investor 
materials, contact Nabors' corporate headquarters in Hamilton, Bermuda at 
441-292-1510 or via email at mark.andrews@nabors.com. 
NABORS INDUSTRIES LTD. AND SUBSIDIARIES 
CONSOLIDATED STATEMENTS OF INCOME (LOSS) 
(Unaudited) 


                  Three Months Ended               Year Ended
                  December 31,          September  December 31,
                                        30,



(In thousands,
except per share  2012       2011       2012       2012       2011
amounts)



Revenues and
other income:

Operating         $          $          $          $          $
revenues          1,595,614  1,734,637  1,766,419  6,989,573  6,060,351

Earnings
(losses) from     1,193      (2,658)    (99,527)   (301,320)  56,647
unconsolidated
affiliates

Investment        30,293     7,908      7,224      63,137     19,940
income (loss)

Total revenues    1,627,100  1,739,887  1,674,116  6,751,390  6,136,938
and other income



Costs and other
deductions:

Direct costs      1,039,050  1,087,994  1,136,198  4,483,320  3,775,964

General and
administrative    130,723    131,540    131,887    532,568    489,892
expenses

Depreciation and  277,283    239,757    269,597    1,055,517  924,094
amortization

Interest expense  61,835     60,852     63,604     251,552    256,633

Losses (gains)
on sales and
disposals of
long-lived        (158,347)  5,614      10,263     (136,510)  4,514
assets and other
expense
(income), net

Impairments and   142,757    100,000    -          290,260    198,072
other charges

Total costs and   1,493,301  1,625,757  1,611,549  6,476,707  5,649,169
other deductions



Income (loss)
from continuing
operations        133,799    114,130    62,567     274,683    487,769
before income
taxes



Income tax
expense           3,777      23,845     (4,001)    32,628     142,605
(benefit)



Subsidiary
preferred stock   750        750        750        3,000      3,000
dividend



Income (loss)
from continuing   129,272    89,535     65,818     239,055    342,164
operations, net
of tax

Income (loss)
from
discontinued      (101,121)  (193,985)  10,826     (74,400)   (97,440)
operations, net
of tax



Net income        28,151     (104,450)  76,644     164,655    244,724
(loss)

Less: Net
(income) loss
attributable to   (1,074)    (1,400)    (988)      (621)      (1,045)
noncontrolling
interest

Net income
(loss)            $ 27,077   $          $ 75,656   $ 164,034  $ 243,679
attributable to              (105,850)
Nabors



Earnings
(losses) per
share: (1)

Basic from
continuing        $ .44      $ .31      $ .22      $ .82      $ 1.19
operations

Basic from
discontinued      (.35)      (.68)      .04        (.25)      (.34)
operations

Basic             $ .09      $ (.37)    $ .26      $ .57      $ .85



Diluted from
continuing        $ .44      $ .30      $ .22      $ .82      $ 1.17
operations

Diluted from
discontinued      (.35)      (.66)      .04        (.26)      (.34)
operations

Diluted           $ .09      $ (.36)    $ .26      $ .56      $ .83


Weighted-average
number of common
shares
outstanding: (1) 
Basic             290,394    287,561    290,367    289,965    287,118 
Diluted           292,421    290,964    292,501    292,323    292,484 
Adjusted income
(loss) derived
from operating    $ 149,751  $ 269,288  $ 228,015  $ 918,649  $ 867,363
activities from
continuing
operations (2) 
(1) See "Computation of Earnings (Losses) Per Share" included herein as 


    a separate schedule.
    Adjusted income (loss) derived from operating activities is
    computed by subtracting the sum of direct costs, general and
    administrative expenses, depreciation and amortization and earnings
    (losses) from the U.S. oil and gas joint venture from the sum of
    Operating revenues and Earnings (losses) from unconsolidated
    affiliates. These amounts should not be used as a substitute for


those amounts reported in accordance with GAAP. However, management
(2) evaluates the performance of our business units and the 


    consolidated company based on several criteria, including adjusted
    income (loss) derived from operating activities, because it
    believes that these financial measures accurately reflect our
    ongoing profitability. A reconciliation of this non-GAAP measure to
    income (loss) from continuing operations before income taxes, which
    is a GAAP measure, is provided in the table set forth immediately
    following the heading "Segment Reporting".

NABORS INDUSTRIES LTD. AND SUBSIDIARIES



CONDENSED CONSOLIDATED BALANCE SHEETS
                              (Unaudited)
                              December 31,  September 30,  December 31,

(In thousands, except         2012          2012           2011
ratios)



ASSETS

Current assets:

Cash and short-term           $ 778,204     $ 619,563      $ 539,489
investments

Accounts receivable, net      1,382,623     1,529,232      1,576,555

Assets held for sale          383,857       404,234        401,500

Other current assets          588,173       580,620        570,770

Total current assets          3,132,857     3,133,649      3,088,314

Long-term investments and     4,269         5,301          11,124
other receivables

Property, plant and           8,712,088     8,894,084      8,629,946
equipment, net

Goodwill                      472,326       472,462        501,258

Investment in unconsolidated  61,690        70,172         371,021
affiliates

Other long-term assets        272,792       348,893        310,477

Total assets                  $ 12,656,022  $ 12,924,561   $ 12,912,140



LIABILITIES AND EQUITY

Current liabilities:

Current portion of long-term  $ 364         $ 389          $ 275,326
debt

Other current liabilities     1,132,018     1,134,277      1,527,236

Total current liabilities     1,132,382     1,134,666      1,802,562

Long-term debt                4,379,336     4,678,896      4,348,490

Other long-term liabilities   1,117,999     1,185,687      1,090,683

Total liabilities             6,629,717     6,999,249      7,241,735



Subsidiary preferred stock    69,188        69,188         69,188
(1)



Equity:

Shareholders' equity          5,944,929     5,843,880      5,587,815

Noncontrolling interest       12,188        12,244         13,402

Total equity                  5,957,117     5,856,124      5,601,217

Total liabilities and equity  $ 12,656,022  $ 12,924,561   $ 12,912,140


Represents subsidiary preferred stock from acquisition in September
(1) 2010. 75,000 shares of such stock are outstanding and pay quarterly 


    dividends at an annual rate of 4%.

NABORS INDUSTRIES LTD. AND SUBSIDIARIES



SEGMENT REPORTING

(Unaudited)



The following tables set forth certain information with respect to our
reportable segments and rig activity:
                Three Months Ended               Year Ended
                December 31,          September  December 31,
                                      30,



(In thousands,
except rig      2012       2011       2012       2012       2011
activity)



Reportable
segments:

Operating
revenues and
Earnings
(losses) from
unconsolidated
affiliates
from
continuing
operations:
(1)

Drilling and
Rig Services:

U.S. Lower 48   $ 408,429  $ 484,173  $ 461,860  $          $ 1,698,620
Land Drilling                                    1,860,357

U.S. Offshore   61,218     53,920     66,675     268,986    170,727

Alaska          25,507     29,216     27,249     147,465    129,894

Canada          152,147    168,750    135,786    572,616    574,754

International   324,728    295,067    329,245    1,265,060  1,104,461

Other Rig       180,467    211,427    188,694    839,533    674,206
Services (2)

Subtotal
Drilling and    1,152,496  1,242,553  1,209,509  4,954,017  4,352,662
Rig Services
(3)

Completion and
Production
Services:

U.S.
Production      211,928    197,471    222,034    857,668    701,223
Services

Completion      295,827    369,794    381,241    1,462,767  1,237,306
Services

Subtotal
Completion and  507,755    567,265    603,275    2,320,435  1,938,529
Production
Services (4)

Other
reconciling     (63,444)   (77,839)   (145,892)  (586,199)  (174,193)
items (5)

Total           $          $          $          $          $ 6,116,998
                1,596,807  1,731,979  1,666,892  6,688,253



Adjusted
income (loss)
derived from
operating
activities
from
continuing
operations:
(1) (6)

Drilling and
Rig Services:

U.S. Lower 48   $ 94,719   $ 130,114  $ 114,884  $ 467,716  $ 414,317
Land Drilling

U.S. Offshore   (14,311)   3,422      (3,650)    (305)      843

Alaska          2,195      5,343      3,973      42,483     27,671

Canada          28,078     36,553     22,889     96,536     94,637

International   23,388     23,450     30,299     91,226     123,813

Other Rig       4,829      13,152     16,207     79,061     55,617
Services (2)

Subtotal
Drilling and    138,898    212,034    184,602    776,717    716,898
Rig Services
(3)

Completion and
Production
Services:

U.S.
Production      20,360     24,237     32,825     103,659    74,725
Services

Completion      30,296     76,470     47,218     188,518    229,125
Services

Subtotal
Completion and  50,656     100,707    80,043     292,177    303,850
Production
Services (4)

Other
reconciling     (39,803)   (43,453)   (36,630)   (150,245)  (153,385)
items (7)

Total adjusted
income (loss)
derived from    $ 149,751  $ 269,288  $ 228,015  $ 918,649  $ 867,363
operating
activities



U.S. oil and
gas joint
venture         -          3,400      (98,805)   (301,801)  59,685
earnings
(losses)

Interest        (61,835)   (60,852)   (63,604)   (251,552)  (256,633)
expense

Investment      30,293     7,908      7,224      63,137     19,940
income (loss)

Gains (losses)
on sales and
disposals of
long-lived      158,347    (5,614)    (10,263)   136,510    (4,514)
assets and
other income
(expense), net

Impairments
and other       (142,757)  (100,000)  -          (290,260)  (198,072)
charges

Income (loss)
from
continuing      $ 133,799  $ 114,130  $ 62,567   $ 274,683  $ 487,769
operations
before income
taxes
    Rig activity:

Rig years: (8)

U.S. Lower 48   172.7      216.7      193.8      200.7      200.2
Land Drilling

U.S. Offshore   12.4       10.0       12.8       12.8       9.6

Alaska          5.2        5.0        4.6        5.6        4.9

Canada          36.3       45.2       34.0       34.8       39.8

International   119.3      113.2      119.2      119.3      105.3
(9)

Total rig       345.9      390.1      364.4      373.2      359.8
years

Rig hours:
(10)

U.S.
Production      202,368    202,816    217,675    853,373    791,956
Services

Canada
Production      44,582     52,712     43,849     181,185    184,908
Services

Total rig       246,950    255,528    261,524    1,034,558  976,864
hours
     All periods present the operating activities of our wholly owned


 oil and gas businesses in the United States, Canada and Colombia,
(1)  our equity interests in joint ventures in Canada and Colombia, and 


     our aircraft logistics operations in Canada as discontinued
     operations.
     Includes our drilling technology and top drive manufacturing,


 directional drilling, rig instrumentation and software, and
(2)  construction services. These services represent our other 


     companies that are not aggregated into a reportable operating
     segment.
     Includes earnings (losses), net from unconsolidated affiliates,


 accounted for using the equity method, of $.7 million, $(6.1)
(3)  million and $(.7) million for the three months ended December 31, 


     2012 and 2011 and September 30, 2012, respectively, and $(3.1)
     million for the year ended December 31, 2011.


 Includes earnings (losses), net from unconsolidated affiliates,
(4)  accounted for using the equity method, of $.5 million for the 


     three months and year ended December 31, 2012.
     Represents the elimination of inter-segment transactions and
     earnings (losses), net from the U.S. unconsolidated oil and gas


 joint venture, accounted for using the equity method until sold in
(5)  December 2012, of $3.4 million and $(98.8) million during the 


     three months ended December 31, 2011 and September 30, 2012,
     respectively, and $(301.8) million and $59.7 million for the years
     ended December 31, 2012 and 2011, respectively.
     Adjusted income (loss) derived from operating activities is
     computed by subtracting the sum of direct costs, general and
     administrative expenses, depreciation and amortization and
     earnings (losses) from the U.S. oil and gas joint venture from the
     sum of Operating revenues and Earnings (losses) from
     unconsolidated affiliates. These amounts should not be used as a


 substitute for the amounts reported in accordance with GAAP.
(6)  However, management evaluates the performance of our business 


     units and the consolidated company based on several criteria,
     including adjusted income (loss) derived from operating
     activities, because it believes that these financial measures
     accurately reflect our ongoing profitability. A reconciliation of
     this non-GAAP measure to income (loss) from continuing operations
     before income taxes, which is a GAAP measure, is provided in the
     above table.



(7)  Represents the elimination of inter-segment transactions and
     unallocated corporate expenses.
     Excludes well-servicing rigs, which are measured in rig hours.


 Includes our equivalent percentage ownership of rigs owned by
(8)  unconsolidated affiliates. Rig years represent a measure of the 


     number of equivalent rigs operating during a given period. For
     example, one rig operating 182.5 days during a 365-day period
     represents 0.5 rig years.
     International rig years includes our equivalent percentage


 ownership of rigs owned by unconsolidated affiliates, which
(9)  totaled 2.5 years, 2.3 years, and 2.5 years during each of the 


     three months ended December 31, 2012 and 2011 and September 30,
     2012, respectively, and 2.5 years and 2.1 years during the years
     ended December 31, 2012 and 2011, respectively.



(10) Rig hours represents the number of hours that our well-servicing
     rig fleet operated during the period.

NABORS INDUSTRIES LTD. AND SUBSIDIARIES



COMPUTATION OF EARNINGS (LOSSES) PER SHARE

(Unaudited)


A reconciliation of the numerators and denominators of the basic and
diluted earnings (losses) per share computations is as follows: 


                  Three Months Ended               Year Ended
                  December 31,          September  December 31,
                                        30,



(In thousands,
except per share  2012       2011       2012       2012       2011
amounts)



Net income
(loss)
attributable to
Nabors
(numerator):

Income (loss)
from continuing   $ 129,272  $ 89,535   $ 65,818   $ 239,055  $ 342,164
operations, net
of tax

Less: net
(income) loss
attributable to   (1,074)    (1,400)    (988)      (621)      (1,045)
noncontrolling
interest

Adjusted income
(loss) from
continuing        $ 128,198  $ 88,135   $ 64,830   $ 238,434  $ 341,119
operations, net
of tax - basic

Add interest
expense on
assumed
conversion of     -          -          -          -          -
our 0.94% senior
exchangeable
notes due 2011,
net of tax (1)



Adjusted income
(loss) from
continuing        $ 128,198  $ 88,135   $ 64,830   $ 238,434  $ 341,119
operations, net
of tax - diluted

Income (loss)
from
discontinued      (101,121)  (193,985)  10,826     (74,400)   (97,440)
operations, net
of tax

Adjusted net
income (loss)     $ 27,077   $          $ 75,656   $ 164,034  $ 243,679
attributable to              (105,850)
Nabors



Earnings
(losses) per
share:

Basic from
continuing        $ .44      $ .31      $ .22      $ .82      $ 1.19
operations

Basic from
discontinued      (.35)      (.68)      .04        (.25)      (.34)
operations

Total Basic       $ .09      $ (.37)    $ .26      $ .57      $ .85



Diluted from
continuing        $ .44      $ .30      $ .22      $ .82      $ 1.17
operations

Diluted from
discontinued      (.35)      (.66)      .04        (.26)      (.34)
operations

Total Diluted     $ .09      $ (.36)    $ .26      $ .56      $ .83



Shares
(denominator):

Weighted-average
number of shares  290,394    287,561    290,367    289,965    287,118
outstanding -
basic

Net effect of
dilutive stock
options,
warrants and      2,027      3,403      2,134      2,358      5,366
restricted stock
awards based on
the if-converted
method

Assumed
conversion of
our 0.94% senior  -          -          -          -          -
exchangeable
notes due 2011
(1)

Weighted-average
number of shares  292,421    290,964    292,501    292,323    292,484
outstanding -
diluted

(1) At maturity in May 2011, we redeemed the remaining
aggregate principal amount of $1.4 billion of our 0.94% senior
exchangeable notes. Prior to maturity, we had purchased $1.4
billion par value of these notes in the open market for cash
of $1.2 billion.



For all periods presented, the computation of diluted earnings
(losses) per share excluded outstanding stock options and
warrants with exercise prices greater than the average market
price of Nabors' common shares because their inclusion would
have been anti-dilutive and because they were not considered
participating securities. The average number of options and
warrants that were excluded from diluted earnings (losses) per
share that would have potentially diluted earnings (losses)
per share in the future were 15,000,882 and 13,930,575 shares
during the three months ended December 31, 2012 and 2011,
respectively; and 15,010,906 shares during the three months
ended September 30, 2012; and 14,200,915 and 9,241,543 shares
during the years ended December 31, 2012 and 2011,
respectively. In any period during which the average market
price of Nabors' common shares exceeds the exercise prices of
these stock options and warrants, such stock options and
warrants are included in our diluted earnings (losses) per
share computation using the if-converted method of accounting.
Restricted stock is included in our basic and diluted earnings
(losses) per share computation using the two-class method of
accounting in all periods because such stock is considered a
participating security.

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SOURCE: Nabors Industries Ltd.

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-0- Feb/19/2013 21:09 GMT


 
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