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Nabors Announces Second Quarter Results

Nabors' 2Q 2013 EPS Equals $0.08 on Operating Income of $90.9 million 
Second Quarter Highlights Include: 
- Debt reduced by $300 million 
- Two new term contract awards for PACE®-X rigs; 21 total since 1Q 2012 
- Nine significant multi-year, International contracts for upgraded rigs 
HAMILTON, Bermuda, July 23, 2013 /CNW/ - Nabors Industries Ltd. (NYSE:NBR) 
today reported its financial results for the second quarter and first six 
months of 2013.  Adjusted income from operating activities was $90.9 million, 
compared to $225.3 million in the second quarter of 2012 and $149.6 million in 
the first quarter of 2013.  Operating cash flow (EBITDA) was $361.1 million 
for the second quarter, compared to $486.4 million in the same quarter last 
year and $423.0 million in the first quarter of this year.  Net income from 
continuing operations was $29.3 million ($0.08 per diluted share), compared to 
a net loss of $98.7 million (-$0.34 per diluted share) in the second quarter 
of 2012 and $97.2 million ($0.33 per diluted share) in the first quarter of 
2013.  Operating revenues and earnings from unconsolidated affiliates for this 
quarter totaled $1.49 billion, compared to $1.60 billion in the same quarter 
of the prior year and $1.58 billion in the first quarter of 2013.  For the 
first six months ended June 30, 2013, adjusted income derived from operating 
activities was $240.5 million compared to $540.9 million in the first six 
months of 2012.  Net income from continuing operations for the first six 
months of 2013 was $126.4 million ($0.41 per diluted share) compared to $44.0 
million ($0.16 per diluted share) in 2012.  Operating revenues and earnings 
from unconsolidated affiliates totaled $3.07 billion for the first six months 
of 2013, compared to $3.42 billion for the first six months of 2012. 
Tony Petrello, Nabors' Chairman, President & CEO, commented, "Our second 
quarter was disappointing as seasonal declines in our Alaska and Canada 
operations were compounded by a weather-induced drop in the utilization of our 
eight Bakken Shale frac spreads and a further slowdown in Canrig's capital 
equipment shipments.  These developments have dampened our full-year outlook 
and mask a number of positive developments that support our continuing 
expectation of improving results in the second half of this year. 
"We reduced debt by another $300 million during the quarter, despite the 
shortfall in operating cash flow.  We also received long-term contract awards 
for 11 major rig projects, including two additional new PACE®-X rigs in our 
U.S. Drilling operations and nine substantial rig upgrades internationally, 
six of which are for shale projects in Argentina.  Three of these rigs will be 
PACE®-F rigs exported from our U.S. operations.  In aggregate these 
contracts, which average 3.2 years in duration, should generate over $600 
million in revenue.  Returns on the approximately $150 million in associated 
capital are well within our capital allocation criteria.  Three of these rigs 
have recently commenced operations, and the remaining rigs are expected to 
commence in the second half of next year." 
DRILLING & RIG SERVICES Operating income in the Drilling and Rig Services 
business line was $102.1 million, representing a sequential decline of 
approximately $35.2 million.  Operating cash flow of $322.0 million also 
reflected a decline of $34.7 million compared to the first quarter.  
Significant improvements in International and U.S. Offshore drilling 
operations were more than offset by the usual seasonal declines in Canada and 
Alaska, and a relatively small decrease in the U.S. Lower 48.  Rig Services 
accounted for one-third of the decrease with roughly equal declines in Canrig 
due to fewer capital equipment shipments, and Peak Oilfield Services with its 
usual falloff in activity following the seasonally high first quarter. 
International operations showed significant improvement, resulting from a 
small increase in working rigs and a more meaningful increase in average 
margins, which reflect initial improvement in the extraordinary costs that 
have characterized recent periods.  Improvement in these costs should 
continue, although they will likely take until the end of next year to fully 
normalize.  The near- and longer-term outlook internationally has improved, 
and the supply of suitable rigs in selected markets is becoming tighter.  This 
is leading to improving rig rates and the potential for new high-specification 
rigs, particularly in the Middle East.  International cycle times are much 
longer, causing a lag in the pace and magnitude of the financial impact from 
these favorable trends.  They can also be subject to unexpected delays and 
extraneous events, as has been the case in recent years.  Nonetheless, the 
nine recent long-term contracts are evidence of the improving market 
environment.  In addition to the six rigs for shale projects in Argentina, 
three are committed to long-term projects in Northern Iraq and Kazakhstan. 
Canada drilling operations were down sharply compared to the first quarter 
with the arrival of the spring thaw.  Results were significantly improved 
compared to the same quarter last year despite fewer rigs working.  This was 
attributable to higher average margins due to the proportion of deeper, higher 
margin rigs working through the breakup period.  While the near-term outlook 
for this operation remains tepid, the longer-term promise of LNG exports is 
beginning to emerge.  This operation recently deployed four rigs for 
early-phase LNG-directed drilling, which will likely grow into a much greater 
requirement for deeper rigs in the various British Columbia gas fields over 
the next few years. 
U.S. Drilling operations declined, principally due to the cessation of peak 
winter activity levels in Alaska and a less significant decrease in the Lower 
48 operations attributable to lower average margins.  These declines were 
partially offset by a meaningful improvement in the Gulf of Mexico.  The 
PACE®-X rig continues to gain recognition and is outperforming expectations.  
Two new term contracts for this technologically advanced rig bring the total 
number of new rig awards to 21 in 18 months.   Discussions are ongoing with 
several customers regarding contracts for additional units. 
Improvement in utilization is progressing at a measured and disciplined pace 
in order to avoid adversely affecting spot market rates.  The rig count in the 
lower 48 portion of this operation has increased by 18 from the mid-February 
low point of 165 rigs to 183 rigs on revenue today, only 4 of which were new 
PACE®-X deliveries.  This represents an 8 rig increase from the second 
quarter average of 175 rigs on revenue.  Third quarter income should improve 
as higher rig activity offsets the impact of slightly lower average margins, 
which should be more reflective of current spot market pricing thereby 
limiting further downside.  Challenges persist as efficiency gains and 
speculative new building by competitors exacerbates capacity excesses in this 
market. 
Increased platform and workover jackup rig activity in the second quarter 
resulted in an improvement in results from the Gulf of Mexico operations.  
Third-quarter offshore results should be significantly lower however, with the 
seasonally lower activity levels associated with hurricane season.  The 
recently completed new MODS® 400 rig should commence operations by the second 
quarter of 2014, significantly bolstering the longer-term outlook for this 
operation.  Similarly, Alaska should see seasonally softer results for the 
balance of 2013, with an improving outlook in 2014 and beyond as activity 
improves following the recent favorable tax revisions. 
Rig Services posted a loss in the second quarter, with the usual seasonal 
slowdowns in both Peak Oilfield Services in Alaska and the directional 
drilling operations in Canada, amplified by a sharp drop in capital equipment 
shipments by Canrig.  The third-quarter results for this segment should 
improve as Canrig delivers a higher number of capital equipment components. 
COMPLETION &  PRODUCTION SERVICES Operating income in the Completion and 
Production Services business line was $30.3 million, representing a sequential 
decline of approximately $13.4 million.  Operating cash flow of $81.5 million 
reflected a decline of $16.3 million compared to the first quarter.  
Significant improvement in the U.S. portion of Production Services was more 
than offset by the seasonal decline in Canada, contributing nominally to the 
sequential decrease in the combined results.  The large drop in Completion 
Services comprised the majority of the decrease as extraordinarily adverse 
weather in the Bakken exerted an inordinate impact on the combined results.  
While the outlook for the third quarter is more favorable, with significant 
increases anticipated in both segments, the fourth quarter is usually 
characterized by lower results because the onset of winter and holidays limit 
available work days.  In addition, certain customers appear increasingly 
concerned that a fourth-quarter slowdown may result from efficiency gains 
depleting budgets at a faster than planned pace. 
In Production Services, rig rates were essentially flat while hours increased 
in areas other than Canada and the Bakken, where breakup and the unusual 
weather also affected operations.  Trucking hours were also up significantly 
on flat pricing.  For this business overall, rig and truck hours are expected 
to increase further in the third quarter with pricing remaining flat.  Certain 
regions, such as West and South Texas, remain more competitive in both 
utilization and pricing due to the large number of competitors and excess 
capacity.  Longer term, this segment is expected to continue growing as the 
expanding population of maintenance-intensive oil wells continues to grow and 
age.  The number of mothballed rigs is dwindling, and industry utilization is 
approaching the point where new builds are warranted and pricing momentum 
materializes.   Furthermore, the demand for higher capacity rigs is growing 
with the increase of long horizontal well sections. 
Completion Services continues to suffer from a large overhang of capacity and, 
while industry activity is increasing, an apparent inflection in efficiency is 
limiting any upside in the near term.  Pricing appears to be stable in the 
northern regions, but remains very competitive in South Texas and even more so 
in the Permian Basin.  While the third quarter is expected to show marked 
improvement, visibility remains quite limited for the foreseeable future 
absent any improvement in natural gas and liquids directed activity. 
SUMMARY Mr. Petrello concluded, "We expect this quarter to represent the low 
point in our results, and we anticipate a progressively upward trend over both 
the near and longer term, moderated somewhat by a cautious outlook for 
Completion Services.  Continuing cost and activity improvements in 
International Drilling, seasonal recovery in Canada, return to normal 
operations in Completion & Production Services, higher rig activity in U.S. 
Drilling, and recovering order flow in Canrig will drive near-term 
improvements.  Longer term, the success of our PACE®-X rig, our recent 
international awards, multiple high-specification new build opportunities, and 
a secular growth trend in Production Services combine to indicate significant 
upside potential.  Meanwhile, we continue to focus on improving execution, 
controlling our costs, and extracting more from our asset base." 
ABOUT NABORS The Nabors companies own and operate approximately 472 land 
drilling rigs throughout the world and approximately 544 land workover and 
well servicing rigs in North America.  Nabors' actively marketed offshore 
fleet consists of 36 platform rigs, 5 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 800,000 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               Six Months Ended 
              June 30,              March 31,  June 30, 
(In thousands,
except per share  2013       2012       2013       2013       2012
amounts) 
Revenues and
other income: 
Operating         $          $          $          $          $
revenues          1,491,586  1,737,114  1,578,645  3,070,231  3,627,540 
Earnings
(losses) from     1,360      (134,317)  2,895      4,255      (202,986)
unconsolidated
affiliates 
Investment        14,821     5,368      79,421     94,242     25,620
income (loss) 
Total revenues    1,507,767  1,608,165  1,660,961  3,168,728  3,450,174
and other income 
Costs and other
deductions: 
Direct costs      999,192    1,123,256  1,026,042  2,025,234  2,308,072 
General and
administrative    132,612    133,612    132,545    265,157    269,958
expenses 
Depreciation and  270,199    261,016    273,365    543,564    508,637
amortization 
Interest expense  60,271     63,459     60,008     120,279    126,113 
Losses (gains)
on sales and
disposals of
long-lived        9,312      160,917    59,807     69,119     159,077
assets and other
expense
(income), net 
Total costs and   1,471,586  1,742,260  1,551,767  3,023,353  3,371,857
other deductions 
Income (loss)
from continuing   36,181     (134,095)  109,194    145,375    78,317
operations before
income taxes 
Income tax
expense           6,172      (36,192)   11,272     17,444     32,852
(benefit) 
Subsidiary
preferred stock   750        750        750        1,500      1,500
dividend 
Income (loss)
from continuing   29,259     (98,653)   97,172     126,431    43,965
operations, net
of tax 
Income (loss)
from discontinued (28,004)   24,690     2,046      (25,958)   15,895
operations, net
of tax 
Net income        1,255      (73,963)   99,218     100,473    59,860
(loss) 
Less: Net
(income) loss
attributable to   (5,616)    1,174      (97)       (5,713)    1,441
noncontrolling
interest 
Net income
(loss)            $ (4,361)  $          $ 99,121   $ 94,760   $ 61,301
attributable to              (72,789)
Nabors 
Earnings
(losses) per
share: (1) 
Basic from
continuing        $ .08      $ (.34)    $ .33      $ .41      $ .16
operations 
Basic from
discontinued      (.09)      .09        .01        (.09)      .05
operations 
Basic             $ (.01)    $ (.25)    $ .34      $ .32      $ .21 
Diluted from
continuing        $ .08      $ (.34)    $ .33      $ .41      $ .16
operations 
Diluted from
discontinued      (.09)      .09        -          (.09)      .05
operations 
Diluted           $ (.01)    $ (.25)    $ .33      $ .32      $ .21 
Weighted-average
number of common
shares
outstanding: (1) 
Basic             294,747    290,311    291,687    293,217    289,550 
Diluted           297,119    290,311    294,170    295,644    292,185 
Adjusted EBITDA                                               $
from continuing   $ 361,142  $ 486,363  $ 422,953  $ 784,095  1,049,520
operations (2) 
Adjusted income
(loss) derived
from operating    $ 90,943   $ 225,347  $ 149,588  $ 240,531  $ 540,883
activities from
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 our
    former 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
(2) 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. 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".
    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 our former 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 units and the
(3) 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)
                               June 30,      March 31,     December 31,

(In thousands, except ratios)  2013          2013          2012



ASSETS

Current assets:

Cash and short-term            $ 607,960     $ 690,480     $ 778,204
investments

Accounts receivable, net       1,342,386     1,434,530     1,382,623

Assets held for sale           351,263       385,133       383,857

Other current assets           591,223       608,555       588,173

Total current assets           2,892,832     3,118,698     3,132,857

Long-term investments and      3,629         3,910         4,269
other receivables

Property, plant and            8,577,586     8,641,947     8,712,088
equipment, net

Goodwill                       487,252       487,760       472,326

Investment in unconsolidated   68,444        64,598        61,690
affiliates

Other long-term assets         237,160       268,544       272,792

Total assets                   $ 12,266,903  $ 12,585,457  $ 12,656,022



LIABILITIES AND EQUITY

Current liabilities:

Short-term debt                $ 11,445      $ 4,641       $ 364

Other current liabilities      1,168,711     1,086,505     1,132,018

Total current liabilities      1,180,156     1,091,146     1,132,382

Long-term debt                 4,071,191     4,379,758     4,379,336

Other long-term liabilities    1,013,083     1,060,680     1,117,999

Total liabilities              6,264,430     6,531,584     6,629,717



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



Equity:

Shareholders' equity           5,922,563     5,973,814     5,944,929

Noncontrolling interest        10,722        10,871        12,188

Total equity                   5,933,285     5,984,685     5,957,117

Total liabilities and equity   $ 12,266,903  $ 12,585,457  $ 12,656,022

(1) Represents subsidiary preferred stock from acquisition in 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                Six Months Ended
                June 30,               March 31,  June 30,



(In thousands,
except rig      2013        2012       2013       2013       2012
activity)



Reportable
segments:

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

Drilling and
Rig Services:

U.S.            $ 467,129   $ 598,765  $ 484,773  $ 951,902  $
                                                             1,225,870

Canada          64,789      66,015     126,867    191,656    210,750

International   351,421     304,622    321,516    672,937    611,087

Rig Services    152,462     228,614    179,310    331,772    470,372
(1)

Subtotal
Drilling and    1,035,801   1,198,016  1,112,466  2,148,267  2,518,079
Rig Services
(2)



Completion and
Production
Services:

Production      244,602     240,380    251,571    496,173    497,639
Services

Completion      254,016     387,663    262,138    516,154    785,699
Services

Subtotal
Completion and  498,618     628,043    513,709    1,012,327  1,283,338
Production
Services (3)



Other
reconciling     (41,473)    (223,262)  (44,635)   (86,108)   (376,863)
items (4)

Total operating
revenues and
earnings        $           $          $          $          $
(losses) from   1,492,946   1,602,797  1,581,540  3,074,486  3,424,554
unconsolidated
affiliates



Adjusted EBITDA from
continuing operations: (5)

Drilling and
Rig Services:

U.S.            $ 178,799   $ 246,748  $ 184,859  $ 363,658  $ 504,712

Canada          18,067      13,178     45,531     63,598     71,362

International   117,491     100,241    106,514    224,005    197,491

Rig Services    7,601       39,050     19,784     27,385     80,877
(1)

Subtotal
Drilling and    321,958     399,217    356,688    678,646    854,442
Rig Services
(2)



Completion and
Production
Services:

Production      48,036      51,673     51,118     99,154     105,047
Services

Completion      33,479      71,503     46,724     80,203     164,689
Services

Subtotal
Completion and  81,515      123,176    97,842     179,357    269,736
Production
Services (3)



Other
reconciling     (42,331)    (36,030)   (31,577)   (73,908)   (74,658)
items (6)

Total adjusted  $ 361,142   $ 486,363  $ 422,953  $ 784,095  $
EBITDA                                                       1,049,520


Adjusted
income (loss)
derived from
operating
activities
from
continuing
operations:
(7) 
Drilling and
Rig Services: 
U.S.            $ 69,813    $ 145,351  $ 77,595   $ 147,408  $ 312,084 
Canada          3,895       (529)      30,518     34,413     42,617 
International   32,481      16,401     21,469     53,950     37,539 
Rig Services    (4,044)     28,179     7,737      3,693      58,025
(1) 
Subtotal
Drilling and    102,145     189,402    137,319    239,464    450,265
Rig Services
(2) 
Completion and
Production
Services: 
Production      23,471      25,397     26,014     49,485     53,426
Services 
Completion      6,870       46,144     17,756     24,626     111,004
Services 
Subtotal
Completion and  30,341      71,541     43,770     74,111     164,430
Production
Services (3) 
Other
reconciling     (41,543)    (35,596)   (31,501)   (73,044)   (73,812)
items (6) 
Total adjusted
income (loss)
derived from    $ 90,943    $ 225,347  $ 149,588  $ 240,531  $ 540,883
operating
activities 
Rig activity: 
Rig years: (8) 
U.S.            195.8       236.3      189.6      192.8      237.7 
Canada          17.4        20.3       40.0       28.6       34.5 
International   125.2       120.9      122.7      124.0      119.3
(9) 
Total rig       338.4       377.5      352.3      345.4      391.5
years 
Rig hours:
(10) 
U.S.
Production      224,681     220,304    212,298    436,979    433,330
Services 
Canada
Production      28,802      35,710     48,027     76,829     92,754
Services 
Total rig       253,483     256,014    260,325    513,808    526,084
hours 
 Includes our drilling technology and top drive manufacturing, 
 directional drilling, rig instrumentation and software, and
(1)  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 $1.2 million, $6.1
(2)  million and $2.8 million for the three months ended June 30, 2013 


     and 2012 and March 31, 2013, respectively, and $4.0 million for
     the six months ended June 30, 2013.
     Includes earnings (losses), net from unconsolidated affiliates,


 accounted for using the equity method, of $.2 million and $.1
(3)  million for the three months ended June 30, 2013 and March 31, 


     2013, respectively, and $.3 million for the six months ended June
     30, 2013.
     Represents the elimination of inter-segment transactions and


 earnings (losses), net from our former U.S. unconsolidated oil and
(4)  gas joint venture, accounted for using the equity method of $ 


     (140.4) million and ($203.0) million for the three and six months
     ended June 30, 2012, respectively. 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
     our former 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 reflect our
(5)  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".



(6)  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 our former 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
(7)  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
(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 during each of the three months ended June 30, 
 2013 and 2012 and March 31, 2013 and 2.5 years for the six months 
 ended June 30, 2013 and 2012. 
(10) 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                Six Months Ended
               June 30,               March 31,  June 30,



(In            2013       2012        2013       2013       2012
thousands)



Adjusted
EBITDA from    $ 361,142  $ 486,363   $ 422,953  $ 784,095  $ 1,049,520
continuing
operations

Less:
Depreciation   270,199    261,016     273,365    543,564    508,637
and
amortization

Adjusted
income (loss)
derived from
operating      90,943     225,347     149,588    240,531    540,883
activities
from
continuing
operations



U.S. oil and
gas joint
venture        -          (140,434)   -          -          (202,996)
earnings
(losses)

Interest       (60,271)   (63,459)    (60,008)   (120,279)  (126,113)
expense

Investment     14,821     5,368       79,421     94,242     25,620
income (loss)

Gains
(losses) on
sales and
disposals of
long-lived     (9,312)    (160,917)   (59,807)   (69,119)   (159,077)
assets and
other income
(expense),
net

Income (loss)
from
continuing     $ 36,181   $(134,095)  $ 109,194  $ 145,375  $ 78,317
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               Six Months Ended 
                June 30,              March 31,  June 30, 
(In thousands,
except per share    2013       2012       2013       2013       2012
amounts) 
Net income (loss)
attributable to
Nabors
(numerator): 
Income (loss) from
continuing          $29,259    $(98,653)  $ 97,172   $ 126,431  $43,965
operations, net of
tax 
Less: net (income)
loss attributable   (5,616)    1,174      (97)       (5,713)    1,441
to noncontrolling
interest 
Less: earnings
allocated to        74         -          (814)      (740)      -
unvested
shareholders 
Adjusted income
(loss) from
continuing          $23,717    $(97,479)  $ 96,261   $ 119,978  $45,406
operations - basic
and diluted 
Income (loss) from
discontinued        (28,004)   24,690     2,046      (25,958)   15,895
operations, net of
tax 
                $ (4,287)  $(72,789)  $ 98,307   $ 94,020   $61,301 
Earnings (losses)
per share: 
Basic from
continuing          $ .08      $ (.34)    $ .33      $ .41      $ .16
operations 
Basic from
discontinued        (.09)      .09        .01        (.09)      .05
operations 
Total Basic         $ (.01)    $ (.25)    $ .34      $ .32      $ .21 
Diluted from
continuing          $ .08      $ (.34)    $ .33      $ .41      $ .16
operations 
Diluted from
discontinued        (.09)      .09        -          (.09)      .05
operations 
Total Diluted       $ (.01)    $ (.25)    $ .33      $ .32      $ .21 
Shares
(denominator): 
Weighted-average
number of shares    294,747    290,311    291,687    293,217    289,550
outstanding-basic 
Net effect of
dilutive stock
options, warrants
and restricted      2,372      -          2,483      2,427      2,635
stock awards based
on the
if-converted
method 
Weighted-average
number of shares    297,119    290,311    294,170    295,644    292,185
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 11,578,175 and 17,635,173 shares during the three months
ended June 30, 2013 and 2012, respectively; and 12,452,263 shares
during the three months ended March 31, 2013; and 12,015,219 and
13,395,935 shares during the six months ended June 30, 2013 and 2012,
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. 
http://photos.prnewswire.com/prnh/20070205/NABORSLOGO 
SOURCE: Nabors Industries Ltd. 
To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/July2013/23/c9289.html 
CO: Nabors Industries Ltd.
NI: OIL UTI ERN  
-0- Jul/23/2013 20:29 GMT