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

PR Newswire

HAMILTON, Bermuda, Oct. 22, 2013

HAMILTON, Bermuda, Oct. 22, 2013 /PRNewswire/ --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:

  oWe 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.
  oThe 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.
  oProduction Services recently finalized a strategic acquisition of the
    leading fluids management company in California, augmenting our solid well
    servicing position in this important market.
  oWe sold two non-core operations, the Eagle Ford oil and gas properties and
    our Peak Oilfield Services business in Alaska.
  oWe 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.
  oThe 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    2013       2012       2013       2013       2012
per share 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 unconsolidated      (2,628)    (99,527)   1,360      1,627      (302,513)
affiliates
Investment income   1,229      7,224      14,821     95,471     32,844
(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         127,943    130,681    131,202    390,023    398,534
administrative 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 assets and    3,266      10,216     9,242      27,245     21,777
other expense (income),
net
Impairments and     242,241    -          -          287,241    147,503
other charges
Total costs    1,683,864  1,577,342  1,439,237  4,638,084  4,877,843
and 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     750        750        750        2,250      2,250
stock dividend
Income (loss) from
continuing operations,   (90,510)   64,489     28,128     29,825     100,616
net of tax
Income (loss) from
discontinued operations, (14,430)   12,155     (26,873)   (34,292)   35,888
net of tax
Net income (loss)        (104,940)  76,644     1,255      (4,467)    136,504
 Less: Net (income)
loss attributable to     (441)      (988)      (5,616)    (6,154)    453
noncontrolling interest
Net income (loss)        $          $        $        $         $ 
attributable to Nabors   (105,381)  75,656    (4,361)   (10,621)  136,957
Earnings (losses) per
share: (1)
Basic from          $      $      $      $      $    
continuing operations    (.30)       .22      .08      .08      .35
Basic from          (.05)      .04        (.09)      (.11)      .12
discontinued operations
Basic             $      $      $      $      $    
                         (.35)       .26     (.01)     (.03)      .47
Diluted from        $      $      $      $      $    
continuing operations    (.30)       .22      .08      .08      .35
Diluted from        (.05)      .04        (.09)      (.11)      .12
discontinued 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 (2)      $         $         $         $          $
                         439,337    491,472   355,814    1,207,654  1,519,733
Adjusted income (loss)   $         $         $        $         $ 
derived from operating   165,893    225,835   89,604     398,635   753,292
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
(2) 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. 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
(3) 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)
                              September 30,   June 30,         December 31,
(In thousands, except ratios) 2013            2013             2012
ASSETS
Current assets:
Cash and short-term           $           $   607,960   $    778,204
investments                   491,938
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               $          $    11,445  $       
                              11,441                           364
Other current liabilities     1,113,981       1,168,711        1,132,018
 Total current            1,125,422       1,180,156        1,132,382
liabilities
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    $  12,202,116  $ 12,266,903     $ 12,656,022
equity

(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  2013        2012       2013       2013       2012
rig activity)
Reportable segments:
Operating revenues and
Earnings (losses) from
unconsolidated
affiliates:
 Drilling and Rig
Services:
 U.S.             $          $         $         $          $
                       491,857    555,784   467,129   1,443,759  1,781,654
 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 (1) 131,151     151,625    118,120    383,502    533,934
 Subtotal
Drilling and Rig       1,088,117   1,139,647  1,001,459  3,156,963  3,569,663
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  $           $          $          $          $
(losses) from          1,548,191   1,630,380  1,459,326  4,545,890  4,969,986
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 (1) 10,567      21,264     2,273      22,174     80,882
 Subtotal
Drilling and Rig       384,188     392,601    316,630    1,047,056  1,225,784
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   $          $         $         $          $
EBITDA                 439,337    491,472   355,814   1,207,654  1,519,733
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 (1) 2,357       14,027     (5,383)    (1,739)    58,626
 Subtotal
Drilling and Rig       161,582     181,212    100,806    393,257    618,051
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 operating         165,893    225,835   89,604    398,635   753,292
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 (9)   124.2       119.2      125.2      124.0      119.3
 Total rig years 349.7       364.4      338.4      346.8      382.4
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 hours  262,967     261,524    253,483    776,775    787,608

     Includes our drilling technology and top drive manufacturing, directional
(1)  drilling, rig instrumentation and software, and 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) million and $1.2
(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
(3)  for using the equity method, of $.3 million and $.2 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
(4)  venture, accounted for using the equity method of ($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
(5)  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. 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 units and
(7)  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 unconsolidated
(8)  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 totaled 2.5 years during
(9)  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 thousands)       2013         2012        2013        2013       2012
Adjusted EBITDA      $ 439,337   $ 491,472   $ 355,814   $          $
                                                          1,207,654  1,519,733
Less: Depreciation   273,444      265,637     266,210     809,019    766,441
and amortization
Adjusted income
(loss) derived from  165,893      225,835     89,604      398,635    753,292
operating activities
U.S. oil and gas
joint venture        -            (98,805)    -           -          (301,801)
earnings (losses)
Interest expense     (56,059)     (63,776)    (60,273)    (176,343)  (190,068)
Investment income    1,229        7,224       14,821      95,471     32,844
(loss)
Gains (losses) on
sales and disposals
of long-lived assets
and other income     (3,266)      (10,216)    (9,242)     (27,245)   (21,777)
(expense), net
Impairments and      (242,241)    -           -           (287,241)  (147,503)
other charges
Income (loss) from
continuing           $ (134,444)  $  60,262  $  34,910  $       $ 
operations before                                         3,277     124,987
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 2013         2012      2013      2013       2012
share amounts)
Net income (loss)
attributable to Nabors
(numerator):
Income (loss) from        $                                          $
continuing operations,    (90,510)     $ 64,489  $ 28,128  $ 29,825  100,616
net of tax
 Less: net (income)
loss attributable to      (441)        (988)     (5,616)   (6,154)    453
noncontrolling interest
 Less: earnings
allocated to unvested     1,411        -         74        671        -
shareholders
Adjusted income (loss)
from continuing           $           $ 63,501  $ 22,586  $ 24,342  $
operations - basic and    (89,540)                                    101,069
diluted
Income (loss) from
discontinued operations,  (14,430)     12,155    (26,873)  (34,292)   35,888
net of tax
                          $ (103,970)  $ 75,656  $         $          $
                                                 (4,287)  (9,950)   136,957
 Earnings (losses) per
share:
 Basic from           $        $      $      $       $   
continuing operations     (.30)        .22       .08       .08        .35
 Basic from           (.05)        .04       (.09)     (.11)      .12
discontinued operations
Total Basic               $        $      $       $        $   
                          (.35)        .26       (.01)    (.03)      .47
 Diluted from         $        $      $      $       $   
continuing operations     (.30)        .22       .08       .08        .35
 Diluted from         (.05)        .04       (.09)     (.11)      .12
discontinued 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 stock      -            2,134     2,372     2,371      2,468
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.

Website: http://www.nabors.com
 
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