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Nabors' 3Q2013 EPS equals ($0.30) loss from Continuing Operations


Nabors' 3Q2013 EPS equals ($0.30) loss from Continuing Operations

Includes charges of $0.50 per share for debt redemption and asset impairments, net of early terminations

Third Quarter Highlights Include:

- Awarded 21 new-build contracts with average duration of 3.1 years and contracted revenue of approximately $1.4 billion

- Refinanced $785 million in 9.25% 2019 notes at weighted average coupon of 3.5% and 6.2 years maturity

HAMILTON, Bermuda, Oct. 22, 2013 /CNW/ - Nabors Industries Ltd. (NYSE: NBR) today announced its results for the third quarter and nine months ended September 30, 2013. Adjusted income derived from operating activities was $165.9 million for the third quarter, compared to $225.8 million in the third quarter of 2012 and $89.6 million in the second quarter of this year. Operating cash flow (EBITDA) was $439.3 million for the third quarter, compared to $491.5 million in the same quarter last year and $355.8 million in the second quarter of this year. These results include early termination payments of $34.3 million that would have been earned in future quarters.

Net loss from continuing operations was $90.5 million ($0.30 per diluted share), compared to income of $64.5 million ($0.22 per diluted share) in the third quarter of 2012 and $28.1 million ($0.08 per diluted share) in the second quarter of 2013. Operating revenues and earnings from unconsolidated affiliates for this quarter totaled $1.6 billion, compared to $1.5 billion in the same quarter of the prior year and $1.5 billion in the second quarter of 2013. For the nine months ended September 30, 2013, adjusted income derived from operating activities was $398.6 million, compared to $753.3 million in 2012. Net income from continuing operations for the nine months ended September 30, 2013 was $29.8 million ($0.08 per diluted share), compared to $100.6 million ($0.35 per diluted share) in 2012. Operating revenues and earnings from unconsolidated affiliates totaled $4.5 billion for the first nine months of 2013, compared to $5.0 billion for 2012. The net loss reflected the payment of $208 million in premiums associated with the redemption of $785 million in 9.25% senior unsecured notes due 2019 and $34 million in asset impairments. The majority of the impairments related to the Company's US-based coiled tubing fleet, and the remainder reflected certain International surplus components.

Tony Petrello, Nabors' Chairman and CEO, commented, "The quarter's results were essentially in line with expectations and marked several significant achievements:


    --  We believe our results reflect the drilling market is
        stabilizing in the U.S. Lower 48 and the beginning of an
        extended International up cycle, both views supported by our
        securing a large number of high-impact, long-term contracts.
    --  The pressure pumping portion of our Completion Services segment
        recovered nicely from the weather interruptions of the second
        quarter, but the recovery was significantly offset by losses in
        Canada and the increasingly competitive coiled tubing market,
        where we are suspending select operations and impairing the
        equipment.
    --  Production Services recently finalized a strategic acquisition
        of the leading fluids management company in California,
        augmenting our solid well servicing position in this important
        market.
    --  We sold two non-core operations, the Eagle Ford oil and gas
        properties and our Peak Oilfield Services business in Alaska.
    --  We refinanced approximately 70% of our high-cost debt, reducing
        annual interest expense by nearly $45 million, or $0.09 per
        share. These notes were tendered at a premium of $208 million,
        which is more than offset by our asset sales.
    --  The most notable achievement was our 21 new-build rig contract
        awards. These awards consist of 11 high-spec land drilling and
        two 3,000-horsepower platform drilling rigs internationally,
        and another eight PACE(®)-X rigs in the U.S. Lower 48. Nearly
        all of these rigs should deploy before the end of 2014 and
        contribute fully in 2015."

Drilling and Rig Services:

Operating income in the Drilling and Rig Services business line was $161.6 
million, representing a sequential increase of approximately $60.8 million.  
Operating cash flow of $384.2 million also reflected an increase of $67.6 
million compared to the second quarter.  Significant improvements in 
International, Canada and Canrig, together with the aforementioned early 
contract terminations in U.S. drilling, more than offset the seasonal declines 
in the Gulf of Mexico and Alaska.  Peak Oilfield Services results reached 
their seasonal low and are reported in discontinued operations in light of the 
pending sale.

International operations showed significant improvement in spite of a flat rig 
count, resulting from a 16% increase in average margins to $14,397 per rig 
day.  The increased margins reflect a combination of the full contribution and 
mix of higher-margin startups, unexpected additional revenue days, and further 
abatement of the extraordinary costs that have characterized prior periods.  
The Company expects these costs to further improve, with full mitigation not 
expected before the end of 2014.   The long-term outlook for this segment was 
bolstered substantially by several developments during the quarter, which are 
expected to have a meaningful impact on results beginning mid-2014.  Among 
these are 13 new rig awards and the early renewal of 11 existing rig contracts 
that were expiring in 2014.  These extensions for three additional years bring 
significantly higher rates and become effective upon the originally scheduled 
expiration dates.  Together with the nine significant rig awards received in 
the second quarter, these developments represent an increase in our 
International backlog of 117 rig years and $2.4 billion in revenue through 
2018 and come as a result of the tighter international supply-demand balance 
and Nabors' excellent technical and performance reputation.

The Company expects its International segment to post sequentially lower 
results in the near term attributable to a more normal level of operating days 
and the likely suspension of several higher margin operations that will impact 
the next few quarters.  While most of the rigs will likely receive contract 
extensions or be re-contracted, the Company anticipates some interim 
remobilization and idle time through the second quarter of 2014.

In North America, Canada drilling results recovered from the seasonally weak 
second quarter, but remained substantially below the 2012 third quarter.  
Wetter weather inhibited activity in the early portion of the quarter, and 
lower overall industry activity and the attendant weaker margins exerted 
additional downward pressure.  Although the fourth quarter should show 
improvement, results are still expected to lag the same period last year.

U.S. Drilling operations improved sequentially, with $34.3 million in early 
contract termination payments that would have been received in future periods. 
 As expected, we had seasonally weaker results in Alaska and the Gulf of 
Mexico, which dampened the essentially flat results in the Lower 48 land 
operations, excluding the early termination payments.  This unit also recently 
received awards for eight more PACE(®)-X rigs from three operators to be 
deployed in three different basins, with more discussions currently in 
process.  This will bring the total number of PACE(®)-X long-term awards to 
29 and position these rigs in every U.S. shale basin.  The Company expects a 
flat fourth quarter for this operation, as stable margins and a higher rig 
count in the Lower 48 are offset by lower seasonal results in Alaska and the 
Gulf of Mexico.  The outlook for 2014 should be favorable, despite excess 
capacity, continuing efficiency improvements and competitive speculative new 
construction.

Rig Services improved sequentially with additional sales in Canrig, although 
it was still well below last year's results for the same period. Order flow 
has increased, and the Company projects modest improvement in subsequent 
quarters

Completion &  Production Services

Operating income in the Completion and Production Services business line was 
$38.9 million, representing a sequential increase of approximately $8.6 
million.  Operating cash flow of $90.8 million reflected an increase of $9.3 
million compared to the second quarter.  The largest sequential improvement 
came from the stimulation portion of this business and the seasonal recovery 
in Canada well servicing.

In Production Services, the seasonal rebound in Canada was partially offset by 
a more competitive U.S. market, particularly in West and South Texas.  This 
led to flat pricing and lower volumes, which was most acute in trucking and 
24-hour rig work.  The fourth quarter will likely see lower results, with the 
characteristic shorter daylight work hours and numerous holidays reducing 
available work days.  The Company remains optimistic about the long-term 
future for this business despite the short-term erosion in profitability for 
much of 2013, as transitory activity curtailments by certain large operators 
led to a more competitive market, primarily in Texas.  All indications are 
that this situation will normalize as we move into 2014, which will restore 
the growth trajectory that has characterized this business for the last five 
years.  This is driven by the steady increase in the quantity and complexity 
of oil wells in the U.S. at a time of relatively high industry utilization and 
a depleting quantity of viable rigs to reactivate.

Subsequent to the quarter, this segment completed the acquisition of the 
leading California fluids trucking company.  This will increase the size of 
its trucking operation by nearly 40% and provide opportunities to further 
expand fluids management within California, where the workover and well 
servicing rig portion of the segment already enjoys a large presence.

In Completion Services, the substantial sequential improvement in stimulation 
profitability was significantly offset by losses in Canada stimulation and the 
U.S. coiled tubing operations.  The unprofitable coiled tubing equipment is 
being mothballed, while the Canada pumping assets are being relocated to more 
strategic locations in the U.S.  This operation has also shut down several 
unprofitable support locations and continues to rationalize all elements of 
its cost structure.  Excess industry capacity, combined with ongoing 
productivity increases, is limiting any upside for the foreseeable future.  
The last of the Company's long-term contract agreements will expire early in 
the first quarter, resulting in a decrease in the financial performance of 
this line in 2014, the magnitude of which depends upon the future utilization 
of these spreads.  Despite these challenges, Nabors expects to continue 
generating significant positive cash flow from these operations and invest 
where there is a clear financial benefit.  For example, the Company will soon 
deploy its first dual-fuel spread for a key operator in the Northeast U.S. and 
will deploy a second dual-fuel spread in early 2014.  These conversions will 
significantly reduce fuel costs, while improving emissions at the well site 
for the customer.  The Company will also roll out well site dry gel blending 
and continue to upgrade its control vans, both of which yield technology 
benefits and cost savings.

Financial Position:

The Company's financial position remains strong and its financial flexibility 
continues to improve.  The recent refinancing of more than 70% of the 
Company's $1.1 billion in 9.25% senior unsecured notes allowed it to 
capitalize on low interest rates and reduce annual interest expense by nearly 
$45 million ($0.09 per share).  It also created a more even debt maturity 
schedule and the opportunity to retire debt earlier.  Operating cash flow net 
of capital expenditures continued to be positive in the quarter while free 
cash flow was essentially neutral with the funding of nearly $300 million in 
refinancing and redemption costs in excess of borrowings.  The Company expects 
fourth quarter capital expenditures to increase by approximately $300 million, 
reflecting the new rig awards and the recent acquisition, bringing the full 
year estimate to roughly $1.5 billion.

Summary:

Mr. Petrello noted, "The quarter's numerous positive developments have 
bolstered our confidence in the intermediate and longer-term future of our 
business.  The outlook for Production Services and Canrig remains favorable 
despite some short-term challenges.  Completion Services is the only element 
of our business where we do not see a clear path to improved results in 2014.  
There is emerging evidence that most of our drilling operations are poised for 
renewed growth over the next couple of years.  Our international operations 
appear to have finally emerged from a period of protracted weakness while our 
North American operations appear to be emerging from their low points.  
Meanwhile, we continue to prosecute our initiatives to streamline our 
business, increase financial flexibility and unlock the inherent value within 
Nabors' global businesses, as evidenced by our recent refinancing and asset 
sales."

About Nabors

The Nabors companies own and operate approximately 474 land drilling rigs 
throughout the world and approximately 552 land workover and well servicing 
rigs in North America.  Nabors' actively marketed offshore fleet consists of 
36 platform rigs, 8 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               Nine Months Ended
                 September 30,         June 30,   September 30,

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

Revenues and
other income:

Operating        $          $          $          $           $
revenues         1,550,819  1,729,907  1,457,966  4,544,263   5,272,499

Earnings
(losses) from    (2,628)    (99,527)   1,360      1,627       (302,513)
unconsolidated
affiliates

Investment       1,229      7,224      14,821     95,471      32,844
income (loss)

Total revenues   1,549,420  1,637,604  1,474,147  4,641,361   5,002,830
and other income

Costs and other
deductions:

Direct costs     980,911    1,107,032  972,310    2,948,213   3,353,520

General and
administrative   127,943    130,681    131,202    390,023     398,534
expenses

Depreciation and 273,444    265,637    266,210    809,019     766,441
amortization

Interest expense 56,059     63,776     60,273     176,343     190,068

Losses (gains)
on sales and
disposals of
long-lived       3,266      10,216     9,242      27,245      21,777
assets and other
expense
(income), net

Impairments and  242,241    -          -          287,241     147,503
other charges

Total costs and  1,683,864  1,577,342  1,439,237  4,638,084   4,877,843
other deductions

Income (loss)
from continuing
operations       (134,444)  60,262     34,910     3,277       124,987
before income
taxes

Income tax
expense          (44,684)   (4,977)    6,032      (28,798)    22,121
(benefit)

Subsidiary
preferred stock  750        750        750        2,250       2,250
dividend

Income (loss)
from continuing  (90,510)   64,489     28,128     29,825      100,616
operations, net
of tax

Income (loss)
from
discontinued     (14,430)   12,155     (26,873)   (34,292)    35,888
operations, net
of tax

Net income       (104,940)  76,644     1,255      (4,467)     136,504
(loss)

Less: Net
(income) loss
attributable to  (441)      (988)      (5,616)    (6,154)     453
noncontrolling
interest

Net income
(loss)           $          $ 75,656   $ (4,361)  $ (10,621)  $ 136,957
attributable to  (105,381)
Nabors

Earnings
(losses) per
share: (1)

Basic from
continuing       $ (.30)    $ .22      $ .08      $ .08       $ .35
operations

Basic from
discontinued     (.05)      .04        (.09)      (.11)       .12
operations

Basic            $ (.35)    $ .26      $ (.01)    $ (.03)     $ .47

Diluted from
continuing       $ (.30)    $ .22      $ .08      $ .08       $ .35
operations

Diluted from
discontinued     (.05)      .04        (.09)      (.11)       .12
operations

Diluted          $ (.35)    $ .26      $ (.01)    $ (.03)     $ .47

Weighted-average
number of common
shares
outstanding: (1)

Basic            295,076    290,367    294,747    293,837     289,822

Diluted          295,076    292,501    297,119    296,208     292,290

Adjusted EBITDA  $ 439,337  $ 491,472  $ 355,814  $           $
(2)                                               1,207,654   1,519,733

Adjusted income
(loss) derived   $ 165,893  $ 225,835  $ 89,604   $ 398,635   $ 753,292
from operating
activities (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)
                              September 30,  June 30,      December 31,

(In thousands, except ratios) 2013           2013          2012

ASSETS

Current assets:

Cash and short-term           $ 491,938      $ 607,960     $ 778,204
investments

Accounts receivable, net      1,362,434      1,342,386     1,382,623

Assets held for sale          396,201        351,263       383,857

Other current assets          705,882        591,223       588,173

Total current assets          2,956,455      2,892,832     3,132,857

Long-term investments and     3,371          3,629         4,269
other receivables

Property, plant and           8,463,804      8,577,586     8,712,088
equipment, net

Goodwill                      479,557        487,252       472,326

Investment in unconsolidated  68,907         68,444        61,690
affiliates

Other long-term assets        230,022        237,160       272,792

Total assets                  $ 12,202,116   $ 12,266,903  $ 12,656,022

LIABILITIES AND EQUITY

Current liabilities:

Short-term debt               $ 11,441       $ 11,445      $ 364

Other current liabilities     1,113,981      1,168,711     1,132,018

Total current liabilities     1,125,422      1,180,156     1,132,382

Long-term debt                4,036,027      4,071,191     4,379,336

Other long-term liabilities   1,133,886      1,013,083     1,117,999

Total liabilities             6,295,335      6,264,430     6,629,717

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

Equity:

Shareholders' equity          5,826,168      5,922,563     5,944,929

Noncontrolling interest       11,425         10,722        12,188

Total equity                  5,837,593      5,933,285     5,957,117

Total liabilities and equity  $ 12,202,116   $ 12,266,903  $ 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               Nine Months Ended
               September 30,         June 30,   September 30,

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

Reportable
segments:

Operating
revenues and
Earnings
(losses) from
unconsolidated
affiliates:

Drilling and
Rig Services:

U.S.           $ 491,857  $ 555,784  $ 467,129  $          $ 1,781,654
                                                1,443,759

Canada         81,397     102,993    64,789     273,053    313,743

International  383,712    329,245    351,421    1,056,649  940,332

Rig Services   131,151    151,625    118,120    383,502    533,934
(1)

Subtotal
Drilling and   1,088,117  1,139,647  1,001,459  3,156,963  3,569,663
Rig Services
(2)

Completion and
Production
Services:

Production     246,806    254,827    244,602    742,979    752,466
Services

Completion     266,520    381,241    254,016    782,674    1,166,940
Services

Subtotal
Completion and 513,326    636,068    498,618    1,525,653  1,919,406
Production
Services (3)

Other
reconciling    (53,252)   (145,335)  (40,751)   (136,726)  (519,083)
items (4)

Total
operating
revenues and   $          $          $          $
earnings       1,548,191  1,630,380  1,459,326  4,545,890  $ 4,969,986
(losses) from
unconsolidated
affiliates

Adjusted
EBITDA: (5)

Drilling and
Rig Services:

U.S.           $ 204,622  $ 221,046  $ 178,799  $ 568,280  $ 725,758

Canada         26,232     36,829     18,067     89,830     108,191

International  142,767    113,462    117,491    366,772    310,953

Rig Services   10,567     21,264     2,273      22,174     80,882
(1)

Subtotal
Drilling and   384,188    392,601    316,630    1,047,056  1,225,784
Rig Services
(2)

Completion and
Production
Services:

Production     50,904     60,620     48,036     150,058    165,667
Services

Completion     39,910     75,868     33,479     120,113    240,557
Services

Subtotal
Completion and 90,814     136,488    81,515     270,171    406,224
Production
Services (3)

Other
reconciling    (35,665)   (37,617)   (42,331)   (109,573)  (112,275)
items (6)

Total adjusted $ 439,337  $ 491,472  $ 355,814  $          $ 1,519,733
EBITDA                                          1,207,654

Adjusted
income (loss)
derived from
operating
activities:
(7)

Drilling and
Rig Services:

U.S.           $ 92,710   $ 115,207  $ 69,813   $ 240,118  $ 427,291

Canada         12,244     21,679     3,895      46,657     64,296

International  54,271     30,299     32,481     108,221    67,838

Rig Services   2,357      14,027     (5,383)    (1,739)    58,626
(1)

Subtotal
Drilling and   161,582    181,212    100,806    393,257    618,051
Rig Services
(2)

Completion and
Production
Services:

Production     25,909     34,035     23,471     75,394     87,461
Services

Completion     13,024     47,218     6,870      37,650     158,222
Services

Subtotal
Completion and 38,933     81,253     30,341     113,044    245,683
Production
Services (3)

Other
reconciling    (34,622)   (36,630)   (41,543)   (107,666)  (110,442)
items (6)

Total adjusted
income (loss)
derived from   $ 165,893  $ 225,835  $ 89,604   $ 398,635  $ 753,292
operating
activities

Rig activity:

Rig years: (8)

U.S.           195.5      211.2      195.8      193.7      228.8

Canada         30.0       34.0       17.4       29.1       34.3

International  124.2      119.2      125.2      124.0      119.3
(9)

Total rig      349.7      364.4      338.4      346.8      382.4
years

Rig hours:
(10)

U.S.
Production     223,504    217,675    224,681    660,483    651,005
Services

Canada
Production     39,463     43,849     28,802     116,292    136,603
Services

Total rig      262,967    261,524    253,483    776,775    787,608
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 ($2.9) million, ($.7) |
|(2) |million and $1.2 million for the three months ended September   |
|    |30, 2013 and 2012 and June 30, 2013, respectively, and $1.0     |
|    |million and ($.7) million for the nine months ended September   |
|    |30, 2013 and 2012, respectively.                                |
|____|________________________________________________________________|
|    |Includes earnings (losses), net from unconsolidated affiliates, |
|    |accounted for using the equity method, of $.3 million and $.2   |
|(3) |million for the three months ended September 30, 2013 and June  |
|    |30, 2013, respectively, and $.6 million for the nine months     |
|    |ended September 30, 2013.                                       |
|____|________________________________________________________________|
|    |Represents the elimination of inter-segment transactions and    |
|    |earnings (losses), net from our former U.S. unconsolidated oil  |
|    |and gas joint venture, accounted for using the equity method of |
|(4) |($98.8) million for the three months ended September 30, 2012   |
|    |and ($301.8) million for the nine months ended September 30,    |
|    |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 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     |
|(5) |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".                                                  |
|____|________________________________________________________________|
|(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         |
|    |September 30, 2013 and 2012 and June 30, 2013, and 2.5 years for|
|    |the nine months ended September 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               Nine Months Ended
             September 30,         June 30,   September 30,

(In          2013       2012       2013       2013         2012
thousands)

Adjusted     $ 439,337  $ 491,472  $ 355,814  $ 1,207,654  $ 1,519,733
EBITDA

Less:
Depreciation 273,444    265,637    266,210    809,019      766,441
and
amortization

Adjusted
income
(loss)       165,893    225,835    89,604     398,635      753,292
derived from
operating
activities

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

Interest     (56,059)   (63,776)   (60,273)   (176,343)    (190,068)
expense

Investment
income       1,229      7,224      14,821     95,471       32,844
(loss)

Gains
(losses) on
sales and
disposals of
long-lived   (3,266)    (10,216)   (9,242)    (27,245)     (21,777)
assets and
other income
(expense),
net

Impairments
and other    (242,241)  -          -          (287,241)    (147,503)
charges

Income
(loss) from
continuing   $          $ 60,262   $ 34,910   $ 3,277      $ 124,987
operations   (134,444)
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              Nine Months Ended
                  September 30,        June 30,   September 30,

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

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

Income (loss)
from continuing   $          $ 64,489  $ 28,128   $ 29,825   $ 100,616
operations, net   (90,510)
of tax

Less: net
(income) loss
attributable to   (441)      (988)     (5,616)    (6,154)    453
noncontrolling
interest

Less: earnings
allocated to      1,411      -         74         671        -
unvested
shareholders

Adjusted income
(loss) from       $
continuing        (89,540)   $ 63,501  $ 22,586   $ 24,342   $ 101,069
operations -
basic and diluted

Income (loss)
from discontinued (14,430)   12,155    (26,873)   (34,292)   35,888
operations, net
of tax
                  $          $ 75,656  $ (4,287)  $ (9,950)  $ 136,957
                  (103,970)

Earnings (losses)
per share:

Basic from
continuing        $ (.30)    $ .22     $ .08      $ .08      $ .35
operations

Basic from
discontinued      (.05)      .04       (.09)      (.11)      .12
operations

Total Basic       $ (.35)    $ .26     $ (.01)    $ (.03)    $ .47

Diluted from
continuing        $ (.30)    $ .22     $ .08      $ .08      $ .35
operations

Diluted from
discontinued      (.05)      .04       (.09)      (.11)      .12
operations

Total Diluted     $ (.35)    $ .26     $ (.01)    $ (.03)    $ .47

Shares
(denominator):

Weighted-average
number of shares  295,076    290,367   294,747    293,837    289,822
outstanding-basic

Net effect of
dilutive stock
options, warrants
and restricted    -          2,134     2,372      2,371      2,468
stock awards
based on the
if-converted
method

Weighted-average
number of shares  295,076    292,501   297,119    296,208    292,290
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 13,965,989 and 15,010,906   |
|shares during the three months ended September 30, 2013 and 2012,    |
|respectively; 11,578,175 shares during the three months ended June   |
|30, 2013; and 11,887,169 and 13,934,259 shares during the nine months|
|ended September 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.                                              |
|_____________________________________________________________________|

SOURCE Nabors Industries Ltd.

http://www.nabors.com

http://photos.prnewswire.com/prnh/20070205/NABORSLOGO

To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/October2013/22/c6265.html

CO: Nabors Industries Ltd. NI: OIL UTI ERN EST ERN CONF

-0- Oct/22/2013 20:50 GMT

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