Nabors Announces First Quarter 2013 Results

Nabors' 1Q 2013 EPS Equals $0.33 per Share, Inclusive of Gains and a Lower Tax 
Rate 
HAMILTON, Bermuda, April 23, 2013 /CNW/ - Nabors Industries Ltd. (NYSE:NBR) 
today reported its financial results for the first quarter of 2013.  Adjusted 
income derived from operating activities was $149.6 million, compared to 
$315.5 million in the first quarter of 2012 and $149.8 million in the fourth 
quarter of 2012.  Operating cash flow (EBITDA) was $423.0 million for the 
first quarter compared to $563.2 million and $427.0 million, respectively, in 
the first and fourth quarters of last year.  Net income from continuing 
operations was $97.2 million ($0.33 per diluted share), compared to $142.6 
million ($0.49 per diluted share) in the first quarter of 2012 and $129.3 
million ($0.44 per diluted share) in the fourth quarter of 2012.  Operating 
revenues and earnings from unconsolidated affiliates for this quarter totaled 
$1.58 billion, compared to $1.82 billion in the comparable quarter of the 
prior year and $1.60 billion in the fourth quarter of 2012.  First quarter 
results included a gain on the sale of a large portion of marketable 
securities net of charges related to the previously disclosed CEO employment 
contract restructuring.  The quarter's results also benefited from a lower 
effective tax rate, principally attributable to the settlement of a long 
outstanding tax dispute. 
Tony Petrello, Nabors' Chairman, President & CEO, commented, "Operating income 
and cash flow were essentially flat compared to the fourth quarter, as 
improved results in Production Services coupled with the seasonal peak in 
Canada were offset by a sharp decline in Completion Services and more moderate 
declines in our U.S. and International drilling operations.  The anticipated 
seasonal trough in Completion Services was exacerbated by the slow restart of 
activity following the holidays and the series of late winter storms across 
the areas where a majority of our operations are located.  Despite the slow 
start, we expect our performance to improve later this year as we begin to 
restore operating leverage across our Production Services and drilling 
operations." 
"Our initiatives to streamline and consolidate our operations are reflected in 
an enhanced reporting format beginning this quarter.  This format reflects the 
way in which we now analyze our businesses and provides better visibility into 
the cash contribution of each of our segments." 
To facilitate historical comparisons, the Company will post a downloadable 
Excel worksheet with three years of reformatted results to its website at 
www.nabors.com. 
DRILLING & RIG SERVICES In the Company's Drilling & Rig Services business 
line, revenues were essentially flat with the fourth quarter at $1.1 billion, 
as were operating cash flow and income at $356.7 and $137.3 million, 
respectively.  Aggregate rig activity increased sequentially from 346 to 352 
rigs, while daily per rig margins declined approximately $153 to average 
$11,987. 
U.S. Drilling Improved results in the Gulf of Mexico coupled with seasonally 
higher results in Alaska mostly offset the anticipated sharp decline in the 
U.S. Lower 48 portion of this segment.  Revenues for the quarter were $484.8 
million, generating $184.9 million in operating cash flow and $77.6 million in 
operating income.  The U.S. Lower 48 rig count bottomed in mid-February at 165 
rigs and has since increased by 16 to 177 rigs, three of which are recently 
deployed PACE(®)-X rigs.  An additional two PACE(®)-X rig commitments were 
secured during the quarter, bringing the total number of PACE(®)-X contract 
awards to 19 since the beginning of 2012 and the total number of contract 
awards for new rigs to 23 during the same period.  This segment expects to see 
even lower results in the second quarter as the Alaska winter season winds 
down and spot market pricing impacts on revenue become fully realized in the 
U.S. Lower 48 operations.  Activity in the Gulf of Mexico is gradually 
improving, although seasonally weak activity is expected from June through 
October due to hurricane season.  The new 4,600 horsepower deepwater platform 
rig we are building is in the final stages of commissioning after which it 
will be used for training until its planned mobilization later in the year.  
The recent passage of favorable tax legislation in Alaska is expected to spur 
plans for new activity, with Nabors in line to be a major beneficiary.  
Activity should begin later this year and increase for at least two or three 
years.  Regaining lost market share in the U.S. Lower 48 is a priority and 
should result in increasing operating leverage as rig count is restored, 
especially since a large portion of the fleet has already been renewed at spot 
market rates. 
Canada Drilling The first quarter represented the customary seasonal peak in 
Canada, although results were short of expectations and historical highs as 
customers curtailed plans and concluded projects earlier than usual, despite 
favorable weather.  Cash flow constraints continue to limit this market, with 
little upside expected until natural gas prices improve or LNG export timing 
becomes more visible.  Despite the challenging market, a new rig was recently 
deployed under a term contract, and two deep capacity rigs have been readied 
for a recent award.  Inquiries for rigs to drill in support of anticipated LNG 
exports have increased and Nabors is well positioned to capitalize on these 
opportunities. 
International Drilling Sequential results were down slightly in our 
International operations, as startup and unfavorable rig move costs offset the 
initial contribution of the increase in rig activity which was comprised of 
one land and 2.4 offshore rigs.  Extraordinary and unanticipated cost issues 
offset a number of recent positive developments.  Among the more significant 
issues are excessive costs in Iraq and Yemen, higher labor costs in the Middle 
East and North Africa, delays in restarting rigs in Algeria and lower activity 
in certain Latin American countries.  These issues are beginning to dissipate 
and should be gradually extinguished over the intermediate term. 
A number of positive developments are emerging.  Availability of high 
specification rigs is becoming limited in the Middle East region, and rates 
are improving significantly as contracts renew.  The Company has received 
incremental inquiries for a large number of high-specification rigs, with more 
anticipated in the near future.  The number of available rigs in this class is 
insufficient to meet this prospective demand, causing the Company to 
anticipate significant demand for new or upgraded rigs.  Nabors is well suited 
to meet new build requirements, and also owns the majority of the rigs 
eligible for upgrading.  The Company recently received awards for the startup 
of two existing offshore platform rigs in Latin America, resumed operations 
with one of its idle jackups in the Arabian Gulf, is restarting rigs in 
Algeria and is achieving improvements in Iraq and Yemen.  The impact of these 
developments should begin to be reflected in second-half results. 
Rig Services  Sequential results in Rig Services improved with seasonally 
strong activity in Alaska oilfield hauling and construction more than 
offsetting lower results in Canrig.  Fewer capital equipment shipments and 
reduced rental and field services activity in Canrig were in line with the 
lower levels of land rig activity and reduced new build construction in the 
U.S. and Canada.   The second quarter is expected to show lower results with 
the end of winter activity in Alaska, despite some improvement in Canrig. 
COMPLETION & PRODUCTION SERVICES In the Company's Completion & Production 
Services business line, revenues decreased to $513.7 million compared to 
$544.2 million in the fourth quarter.   This decrease resulted in a 
significant decrease in both segment EBITDA and operating income, which were 
$97.8 million and $43.8 million, respectively.  The lower results were 
attributable to lower seasonal utilization in Completion Services, resulting 
in suppressed margins due to higher unrecovered costs.  This more than offset 
the increase in Production Services as it recovered from its seasonally weak 
fourth quarter. 
Completion Services  First quarter results in the completion services segment 
were even weaker than expected with the slow restart of activity exacerbated 
by the recent series of late winter storms.  While industry activity is 
improving modestly, the competition for each incremental project is still 
intense.  Modest improvement is expected in the second quarter as utilization 
and margins recover, although the potential for continued pricing pressure 
exists. 
Production Services This operation saw a modest improvement sequentially, with 
improving activity in the U.S. and seasonally high activity in Canada, despite 
a slow start to the year in the U.S. following the late fourth quarter stall 
in activity and difficult weather in its northern districts.  Modest 
improvement is anticipated in the second quarter on higher expected activity 
in the U.S., even though the recent release of a large number of rigs by a 
major operator in multiple areas has disrupted the market and seasonality will 
weaken Canada results.  Longer term, the outlook for this segment remains 
promising as the population of oil and liquids wells continues to grow. 
Summary Mr. Petrello summarized the results and outlook, "We remain focused on 
our goal of improving our performance, both financially and operationally.  
Our financial position remains solid despite lower operating cash flow and 
over $200 million in cash outflows during the quarter for semi-annual interest 
payments, a technology acquisition and other less significant one-time 
expenditures.  Operationally, we continue to set records across numerous 
areas, and develop and adopt numerous performance enhancing technologies. 
"We believe technology differentiation will be increasingly relevant in the 
future and will consist of both increased automation of the surface-based rig 
functions, and ultimately the downhole drilling processes.   Nabors has all of 
the relevant resources under one roof to be a leader in this effort.  To date 
we deployed three of our new PACE(®)-X series of rigs and are approaching 
completion of our sophisticated deepwater platform rig.  All of these rigs 
incorporate the latest performance-enhancing technology, most of which is 
produced by Canrig.  Our U.S. Lower 48 customers are increasingly 
incorporating pad drilling capability into their requirements and we continue 
to invest in not only new pad capable rigs but also in the retrofitting of our 
existing fleet.  Pad drilling is expanding rapidly and is a differentiator 
over the near term.  Nabors pioneered pad drilling in the 1970s and has the 
largest complement of the industry's pad-capable rigs, particularly walking 
style rigs. 
"The near term remains challenging across all of our markets.  Although cost 
issues are beginning to abate internationally, North American contract renewal 
and spot rates remain under pressure across all classes of rigs and all 
regions, as we have articulated since last summer.  Despite these challenging 
conditions, we are encouraged by the increasing visibility of a meaningful 
improvement in our results later this year." 
About Nabors The Nabors companies own and operate approximately 473 land 
drilling rigs throughout the world and approximately 546 land workover and 
well servicing rigs in North America.  Nabors' actively marketed offshore 
fleet consists of 37 platform rigs, 7 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. 
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 
                            March 31,                 December 31, 
(In thousands, except per       2013         2012         2012
share amounts) 
Revenues and other income: 
Operating revenues              $ 1,578,645  $ 1,890,426  $ 1,595,614 
Earnings (losses) from          2,895        (68,669)     1,193
unconsolidated affiliates 
Investment income (loss)        79,421       20,252       30,293 
Total revenues and other        1,660,961    1,842,009    1,627,100
income 
Costs and other deductions: 
Direct costs                    1,026,042    1,184,816    1,039,050 
General and administrative      132,545      136,346      130,723
expenses 
Depreciation and amortization   273,365      247,621      277,283 
Interest expense                60,008       62,654       61,835 
Losses (gains) on sales and
disposals of long-lived assets  59,807       (1,840)      (15,590)
and other expense (income),
net 
Total costs and other           1,551,767    1,629,597    1,493,301
deductions 
Income (loss) from continuing   109,194      212,412      133,799
operations before income taxes 
Income tax expense (benefit)    11,272       69,044       3,777 
Subsidiary preferred stock      750          750          750
dividend 
Income (loss) from continuing   97,172       142,618      129,272
operations, net of tax 
Income (loss) from
discontinued operations, net    2,046        (8,795)      (101,121)
of tax 
Net income (loss)               99,218       133,823      28,151 
Less: Net (income) loss
attributable to noncontrolling  (97)         267          (1,074)
interest 
Net income (loss) attributable  $ 99,121     $ 134,090    $ 27,077
to Nabors 
Earnings (losses) per share:
(1) 
Basic from continuing           $ .33        $ .50        $ .44
operations 
Basic from discontinued         .01          (.04)        (.35)
operations 
Basic                           $ .34        $ .46        $ .09 
Diluted from continuing         $ .33        $ .49        $ .44
operations 
Diluted from discontinued       -            (.03)        (.35)
operations 
Diluted                         $ .33        $ .46        $ .09 
Weighted-average number of
common shares outstanding: (1) 
Basic                           291,687      288,538      290,394 
Diluted                         294,170      291,709      292,421 
Adjusted EBITDA from            $ 422,953    $ 563,157    $ 427,034
continuing operations (2) 
Adjusted income (loss) derived
from operating activities from  $ 149,588    $ 315,536    $ 149,751
continuing operations (3) 
 _____________________________________________________________________
|   |                                                                 |
|___|_________________________________________________________________|
|   |                                                                 |
|___|_________________________________________________________________|
|(1)|See "Computation of Earnings (Losses) Per Share" included herein |
|   |as a separate schedule.                                          |
|___|_________________________________________________________________|
|   |                                                                 |
|___|_________________________________________________________________|
|   |Adjusted EBITDA is computed by subtracting the sum of direct     |
|   |costs, general and administrative expenses, earnings (losses)    |
|   |from the U.S. oil and gas joint venture from the sum of Operating|
|   |revenues and Earnings (losses) from unconsolidated affiliates.   |
|   |There are limitations inherent in using adjusted EBITDA as a     |
|   |measure of overall profitability because it excludes significant |
|   |expense items. However, management evaluates the performance of  |
|   |our business units and the consolidated company based on several |
|(2)|criteria, including adjusted EBITDA and adjusted income (loss)   |
|   |derived from operating activities, because we believe that these |
|   |financial measures accurately reflect our ongoing profitability. |
|   |These amounts should not be used as a substitute for the amounts |
|   |reported in accordance with GAAP. To compensate for the          |
|   |limitations in utilizing adjusted EBITDA as an operating measure,|
|   |management also uses GAAP measures of performance, including     |
|   |income from continuing operations and net income, to evaluate    |
|   |performance, but only with respect to the Company as a whole and |
|   |not on a segment basis.                                          |
|___|_________________________________________________________________|
|   |                                                                 |
|___|_________________________________________________________________|
|   |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 evaluates the performance of our business    |
|(3)|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 "Reconciliation|
|   |of non-GAAP Financial Measures to Income (loss) from Continuing  |
|   |Operations before Income Taxes".                                 |
|___|_________________________________________________________________|
|   |                                                                 |
|___|_________________________________________________________________|
|   |                                                                 |
|___|_________________________________________________________________| 
NABORS INDUSTRIES LTD. AND SUBSIDIARIES 
CONDENSED CONSOLIDATED BALANCE SHEETS 
                                         (Unaudited) 


                                             March 31,     December 31,

(In thousands, except ratios)                2013          2012



ASSETS

Current assets:

Cash and short-term investments              $ 690,480     $ 778,204

Accounts receivable, net                     1,434,530     1,382,623

Assets held for sale                         385,133       383,857

Other current assets                         608,555       588,173

Total current assets                         3,118,698     3,132,857

Long-term investments and other receivables  3,910         4,269

Property, plant and equipment, net           8,641,947     8,712,088

Goodwill                                     487,760       472,326

Investment in unconsolidated affiliates      64,598        61,690

Other long-term assets                       268,544       272,792

Total assets                                 $ 12,585,457  $ 12,656,022



LIABILITIES AND EQUITY

Current liabilities:

Current portion of long-term debt            $ 435         $ 364

Other current liabilities                    1,090,711     1,132,018

Total current liabilities                    1,091,146     1,132,382

Long-term debt                               4,379,758     4,379,336

Other long-term liabilities                  1,060,680     1,117,999

Total liabilities                            6,531,584     6,629,717



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



Equity:

Shareholders' equity                         5,973,814     5,944,929

Noncontrolling interest                      10,871        12,188

Total equity                                 5,984,685     5,957,117

Total liabilities and equity                 $ 12,585,457  $ 12,656,022

 ___________________________________________________________________
|   |
|___|
|   |Represents subsidiary preferred stock from acquisition in      |
|(1)|September 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
                                March 31,                 December 31,



(In thousands, except rig       2013         2012         2012
activity)



Reportable segments:

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

Drilling and Rig Services:

U.S.                            $ 484,773    $ 627,105    $ 495,154

Canada                          126,867      144,735      115,668

International                   321,516      306,465      324,728

Rig Services (2)                179,310      241,758      180,467

Subtotal Drilling and Rig       1,112,466    1,320,063    1,116,017
Services (3)



Completion and Production
Services:

Production Services             251,571      257,259      248,407

Completion Services             262,138      398,036      295,827

Subtotal Completion and         513,709      655,295      544,234
Production Services (4)



Other reconciling items (5)     (44,635)     (153,601)    (63,444)

Total operating revenues and
earnings (losses) from          $ 1,581,540  $ 1,821,757  $ 1,596,807
unconsolidated affiliates



Adjusted EBITDA from
continuing operations: (1) (6)

Drilling and Rig Services:

U.S.                            $ 184,859    $ 257,964    $ 190,877

Canada                          45,531       58,184       42,360

International                   106,514      97,250       110,661

Rig Services (2)                19,784       41,827       15,991

Subtotal Drilling and Rig       356,688      455,225      359,889
Services (3)



Completion and Production
Services:

Production Services             51,118       53,374       47,369

Completion Services             46,724       93,186       60,363

Subtotal Completion and         97,842       146,560      107,732
Production Services (4)



Other reconciling items (7)     (31,577)     (38,628)     (40,587)

Total adjusted EBITDA           $ 422,953    $ 563,157    $ 427,034



Adjusted income (loss) derived
from operating activities from
continuing operations: (1) (8)

Drilling and Rig Services:

U.S.                            $ 77,595     $ 166,733    $ 82,603

Canada                          30,518       43,146       27,064

International                   21,469       21,138       23,388

Rig Services (2)                7,737        29,846       4,829

Subtotal Drilling and Rig       137,319      260,863      137,884
Services (3)



Completion and Production
Services:

Production Services             26,014       28,029       21,374

Completion Services             17,756       64,860       30,296

Subtotal Completion and         43,770       92,889       51,670
Production Services (4)



Other reconciling items (7)     (31,501)     (38,216)     (39,803)

Total adjusted income (loss)
derived from operating          $ 149,588    $ 315,536    $ 149,751
activities



Rig activity:

Rig years: (9)

U.S.                            189.6        239.1        190.3

Canada                          40.0         48.7         36.3

International (10)              122.7        117.7        119.3

Total rig years                 352.3        405.5        345.9

Rig hours: (11)

U.S. Production Services        212,298      213,026      202,368

Canada Production Services      48,027       57,044       44,582

Total rig hours                 260,325      270,070      246,950

 _____________________________________________________________________
|    |
|____|
|    |All periods present the operating activities of our wholly owned|
|    |oil and gas businesses in the United States, Canada and         |
|(1) |Colombia, 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, |
|(3) |accounted for using the equity method, of $2.8 million, $(6.1)  |
|    |million and $.7 million for the three months ended March 31,    |
|    |2013 and 2012 and December 31, 2012, respectively.              |
|____|________________________________________________________________|
|    |
|____|
|    |Includes earnings (losses), net from unconsolidated affiliates, |
|(4) |accounted for using the equity method, of $.1 million and $.5   |
|    |million for the three months ended March 31, 2013 and December  |
|    |31, 2012, respectively.                                         |
|____|________________________________________________________________|
|    |
|____|
|    |Represents the elimination of inter-segment transactions and    |
|    |earnings (losses), net from the U.S. unconsolidated oil and gas |
|(5) |joint venture, accounted for using the equity method of $(62.6) |
|    |million for the three months ended March 31, 2012. In December  |
|    |2012, we sold our equity interest in the oil and gas joint      |
|    |venture.                                                        |
|____|________________________________________________________________|
|    |
|____|
|    |Adjusted EBITDA is computed by subtracting the sum of direct    |
|    |costs, general and administrative expenses, earnings (losses)   |
|    |from the U.S. oil and gas joint venture from the sum of         |
|    |Operating revenues and Earnings (losses) from unconsolidated    |
|    |affiliates. There are limitations inherent in using adjusted    |
|    |EBITDA as a measure of overall profitability because it excludes|
|    |significant expense items. However, management evaluates the    |
|    |performance of our business units and the consolidated company  |
|    |based on several criteria, including adjusted EBITDA and        |
|    |adjusted income (loss) derived from operating activities,       |
|    |because we believe that these financial measures accurately     |
|(6) |reflect our ongoing profitability. These amounts should not be  |
|    |used as a substitute for the amounts reported in accordance with|
|    |GAAP. To compensate for the limitations in utilizing adjusted   |
|    |EBITDA as an operating measure, management also uses GAAP       |
|    |measures of performance, including income from continuing       |
|    |operations and net income, to evaluate performance, but only    |
|    |with respect to the Company as a whole and not on a segment     |
|    |basis. 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 "Reconciliation of non-GAAP Financial     |
|    |Measures to Income (loss) from Continuing Operations before     |
|    |Income Taxes."                                                  |
|____|________________________________________________________________|
|    |
|____|
|(7) |Represents the elimination of inter-segment transactions and    |
|    |unallocated corporate expenses.                                 |
|____|________________________________________________________________|
|    |
|____|
|    |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.    |
|    |However, management evaluates the performance of our business   |
|(8) |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 "Reconciliation of non-GAAP Financial Measures to Income|
|    |(loss) from Continuing Operations before Income Taxes."         |
|____|________________________________________________________________|
|    |
|____|
|    |Excludes well-servicing rigs, which are measured in rig hours.  |
|    |Includes our equivalent percentage ownership of rigs owned by   |
|(9) |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      |
|(10)|ownership of rigs owned by unconsolidated affiliates, which     |
|    |totaled 2.5 years during each of the three months ended March   |
|    |31, 2013 and 2012 and December 31, 2012.                        |
|____|________________________________________________________________|
|    |
|____|
|(11)|Rig hours represents the number of hours that our well-servicing|
|    |rig fleet operated during the period.                           |
|____|________________________________________________________________|
|    |
|____|

NABORS INDUSTRIES LTD. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO INCOME (LOSS) FROM
CONTINUING OPERATIONS BEFORE INCOME TAXES

(Unaudited)
                                    Three Months Ended
                                    March 31,             December 31,



(In thousands)                      2013       2012       2012



Adjusted EBITDA from continuing     $ 422,953  $ 563,157  $ 427,034
operations

Less: Depreciation and              273,365    247,621    277,283
amortization

Adjusted income (loss) derived
from operating activities from      149,588    315,536    149,751
continuing operations



U.S. oil and gas joint venture      -          (62,562)   -
earnings (losses)

Interest expense                    (60,008)   (62,654)   (61,835)

Investment income (loss)            79,421     20,252     30,293

Gains (losses) on sales and
disposals of long-lived assets and  (59,807)   1,840      15,590
other income (expense), net

Income (loss) from continuing       $ 109,194  $ 212,412  $ 133,799
operations before income taxes
    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
                                  March 31,            December 31,



(In thousands, except per share   2013      2012       2012
amounts)



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

Income (loss) from continuing     $ 97,172  $ 142,618  $ 129,272
operations, net of tax

Less: net (income) loss
attributable to noncontrolling    (97)      267        (1,074)
interest

Less: earnings allocated to       (814)     -          -
unvested shareholders

Adjusted income (loss) from
continuing operations - basic     $ 96,261  $ 142,885  $ 128,198
and diluted

Income (loss) from discontinued   2,046     (8,795)    (101,121)
operations, net of tax
                                  $ 98,307  $ 134,090  $ 27,077



Earnings (losses) per share:

Basic from continuing operations  $ .33     $ .50      $ .44

Basic from discontinued           .01       (.04)      (.35)
operations

Total Basic                       $ .34     $ .46      $ .09



Diluted from continuing           $ .33     $ .49      $ .44
operations

Diluted from discontinued         -         (.03)      (.35)
operations

Total Diluted                     $ .33     $ .46      $ .09



Shares (denominator):

Weighted-average number of        291,687   288,538    290,394
shares outstanding-basic

Net effect of dilutive stock
options, warrants and restricted  2,483     3,171      2,027
stock awards based on the
if-converted method

Weighted-average number of        294,170   291,709    292,421
shares outstanding - diluted

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 were 12,452,263 and 11,763,048 shares during the three
months ended March 31, 2013 and 2012, respectively; and
15,000,882 shares during the three months ended December 31,
2012. 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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CO: Nabors Industries Ltd.
NI: OIL UTI ERN EST ERN 

-0- Apr/23/2013 20:06 GMT


 
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