Incorporated in Bermuda | 98-0363970 | |
(State or other jurisdiction
of incorporation or organization) |
(I.R.S. Employer Identification No.) |
Large Accelerated Filer þ | Accelerated Filer o | Non-accelerated Filer o | Smaller Reporting Company o |
2
September 30, |
December 31, |
|||||||
(In thousands, except per share amounts) | 2011 | 2010 | ||||||
(Unaudited) | ||||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$ | 275,461 | $ | 641,702 | ||||
Short-term investments
|
119,859 | 159,488 | ||||||
Assets held for sale
|
267,911 | 352,048 | ||||||
Accounts receivable, net
|
1,397,725 | 1,116,510 | ||||||
Inventory
|
233,298 | 158,836 | ||||||
Deferred income taxes
|
83,388 | 31,510 | ||||||
Other current assets
|
166,702 | 152,836 | ||||||
Total current assets
|
2,544,344 | 2,612,930 | ||||||
Long-term investments and other receivables
|
40,373 | 40,300 | ||||||
Property, plant and equipment, net
|
8,577,213 | 7,815,419 | ||||||
Goodwill
|
501,297 | 494,372 | ||||||
Investment in unconsolidated affiliates
|
323,066 | 267,723 | ||||||
Other long-term assets
|
332,053 | 415,825 | ||||||
Total assets
|
$ | 12,318,346 | $ | 11,646,569 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities:
|
||||||||
Current portion of long-term debt
|
$ | 275,227 | $ | 1,379,018 | ||||
Trade accounts payable
|
658,692 | 355,282 | ||||||
Accrued liabilities
|
459,943 | 394,292 | ||||||
Income taxes payable
|
21,903 | 25,788 | ||||||
Total current liabilities
|
1,415,765 | 2,154,380 | ||||||
Long-term debt
|
4,088,133 | 3,064,126 | ||||||
Other long-term liabilities
|
220,062 | 245,765 | ||||||
Deferred income taxes
|
881,659 | 770,247 | ||||||
Total liabilities
|
6,605,619 | 6,234,518 | ||||||
Commitments and contingencies (Note 8)
|
||||||||
Subsidiary preferred stock
|
69,188 | 69,188 | ||||||
Equity:
|
||||||||
Shareholders equity:
|
||||||||
Common shares, par value $.001 per share:
|
||||||||
Authorized common shares 800,000; issued 316,922 and 315,034,
respectively
|
317 | 315 | ||||||
Capital in excess of par value
|
2,282,803 | 2,255,787 | ||||||
Accumulated other comprehensive income
|
269,155 | 342,052 | ||||||
Retained earnings
|
4,057,410 | 3,707,881 | ||||||
Less: treasury shares, at cost, 29,414 common shares
|
(977,873 | ) | (977,873 | ) | ||||
Total shareholders equity
|
5,631,812 | 5,328,162 | ||||||
Noncontrolling interest
|
11,727 | 14,701 | ||||||
Total equity
|
5,643,539 | 5,342,863 | ||||||
Total liabilities and equity
|
$ | 12,318,346 | $ | 11,646,569 | ||||
3
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(In thousands, except per share amounts) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Revenues and other income:
|
||||||||||||||||
Operating revenues
|
$ | 1,624,791 | $ | 1,069,261 | $ | 4,360,975 | $ | 2,856,636 | ||||||||
Earnings (losses) from unconsolidated affiliates
|
33,723 | 11,842 | 59,304 | 28,329 | ||||||||||||
Investment income (loss)
|
738 | (733 | ) | 12,056 | (976 | ) | ||||||||||
Total revenues and other income
|
1,659,252 | 1,080,370 | 4,432,335 | 2,883,989 | ||||||||||||
Costs and other deductions:
|
||||||||||||||||
Direct costs
|
1,030,231 | 625,561 | 2,723,714 | 1,648,289 | ||||||||||||
General and administrative expenses
|
122,372 | 87,194 | 366,478 | 242,957 | ||||||||||||
Depreciation and amortization
|
234,834 | 198,151 | 686,848 | 545,084 | ||||||||||||
Depletion
|
11,789 | 5,778 | 18,060 | 15,646 | ||||||||||||
Interest expense
|
57,907 | 66,973 | 195,570 | 199,035 | ||||||||||||
Losses (gains) on sales and retirements of long-lived assets and
other expense (income), net
|
(12,157 | ) | 9,407 | (556 | ) | 40,798 | ||||||||||
Impairments and other charges
|
98,072 | 123,099 | 98,072 | 123,099 | ||||||||||||
Total costs and other deductions
|
1,543,048 | 1,116,163 | 4,088,186 | 2,814,908 | ||||||||||||
Income (loss) from continuing operations before income taxes
|
116,204 | (35,793 | ) | 344,149 | 69,081 | |||||||||||
Income tax expense (benefit):
|
||||||||||||||||
Current
|
17,698 | (71,276 | ) | 42,142 | (40,979 | ) | ||||||||||
Deferred
|
15,552 | 67,046 | 65,079 | 54,133 | ||||||||||||
Total income tax expense (benefit)
|
33,250 | (4,230 | ) | 107,221 | 13,154 | |||||||||||
Subsidiary preferred stock dividend
|
750 | | 2,250 | | ||||||||||||
Income (loss) from continuing operations, net of tax
|
82,204 | (31,563 | ) | 234,678 | 55,927 | |||||||||||
Income (loss) from discontinued operations, net of tax
|
(7,240 | ) | (7,591 | ) | 114,496 | (12,921 | ) | |||||||||
Net income (loss)
|
74,964 | (39,154 | ) | 349,174 | 43,006 | |||||||||||
Less: Net (income) loss attributable to noncontrolling interest
|
(708 | ) | (453 | ) | 355 | 1,208 | ||||||||||
Net income (loss) attributable to Nabors
|
$ | 74,256 | $ | (39,607 | ) | $ | 349,529 | $ | 44,214 | |||||||
Earnings (losses) per share:
|
||||||||||||||||
Basic from continuing operations
|
$ | .28 | $ | (.11 | ) | $ | .82 | $ | .21 | |||||||
Basic from discontinued operations
|
(.02 | ) | (.03 | ) | .40 | (.05 | ) | |||||||||
Total Basic
|
$ | .26 | $ | (.14 | ) | $ | 1.22 | $ | .16 | |||||||
Diluted from continuing operations
|
$ | .28 | $ | (.11 | ) | $ | .80 | $ | .19 | |||||||
Diluted from discontinued operations
|
(.03 | ) | (.03 | ) | .39 | (.04 | ) | |||||||||
Total Diluted
|
$ | .25 | $ | (.14 | ) | $ | 1.19 | $ | .15 | |||||||
Weighted-average number of common shares outstanding:
|
||||||||||||||||
Basic
|
287,487 | 285,282 | 286,971 | 285,045 | ||||||||||||
Diluted
|
291,986 | 285,282 | 292,991 | 289,847 |
4
Nine Months Ended September 30, | ||||||||
(In thousands) | 2011 | 2010 | ||||||
Cash flows from operating activities:
|
||||||||
Net income (loss) attributable to Nabors
|
$ | 349,529 | $ | 44,214 | ||||
Adjustments to net income (loss):
|
||||||||
Depreciation and amortization
|
686,820 | 547,399 | ||||||
Depletion and other exploratory expenses
|
31,949 | 24,587 | ||||||
Deferred income tax expense (benefit)
|
61,566 | 53,622 | ||||||
Deferred financing costs amortization
|
4,000 | 3,760 | ||||||
Pension liability amortization and adjustments
|
450 | 298 | ||||||
Discount amortization on long-term debt
|
26,546 | 53,818 | ||||||
Amortization of loss on hedges
|
695 | 464 | ||||||
Impairments and other charges
|
98,072 | 123,099 | ||||||
Losses (gains) on long-lived assets, net
|
(40,636 | ) | (3,242 | ) | ||||
Losses (gains) on investments, net
|
(8,567 | ) | 4,659 | |||||
Losses (gains) on debt retirement, net
|
58 | 7,042 | ||||||
Losses (gains) on derivative instruments
|
267 | 2,473 | ||||||
Gain on acquisition
|
(12,178 | ) | | |||||
Share-based compensation
|
17,249 | 10,602 | ||||||
Foreign currency transaction losses (gains), net
|
743 | 16,795 | ||||||
Equity in (earnings) losses of unconsolidated affiliates, net of
dividends
|
(135,844 | ) | (14,494 | ) | ||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
(283,082 | ) | (140,592 | ) | ||||
Inventory
|
(76,913 | ) | (7,779 | ) | ||||
Other current assets
|
(2,623 | ) | (117,599 | ) | ||||
Other long-term assets
|
79,770 | 492 | ||||||
Trade accounts payable and accrued liabilities
|
331,633 | 40,605 | ||||||
Income taxes payable
|
(466 | ) | 43,458 | |||||
Other long-term liabilities
|
(20,904 | ) | (11,547 | ) | ||||
Net cash provided by operating activities
|
1,108,134 | 682,134 | ||||||
Cash flows from investing activities:
|
||||||||
Purchases of investments
|
(9,567 | ) | (27,695 | ) | ||||
Sales and maturities of investments
|
24,580 | 32,103 | ||||||
Cash paid for acquisition of businesses, net
|
(55,459 | ) | (680,230 | ) | ||||
Investment in unconsolidated affiliates
|
(54,762 | ) | (40,936 | ) | ||||
Distribution of proceeds from asset sales from unconsolidated
affiliates
|
142,984 | | ||||||
Capital expenditures
|
(1,532,597 | ) | (640,953 | ) | ||||
Proceeds from sales of assets and insurance claims
|
110,535 | 26,084 | ||||||
Net cash used for investing activities
|
(1,374,286 | ) | (1,331,627 | ) | ||||
Cash flows from financing activities:
|
||||||||
Increase (decrease) in cash overdrafts
|
5,074 | (4,649 | ) | |||||
Proceeds from issuance of long-term debt
|
697,578 | 691,281 | ||||||
Proceeds from issuance of common shares
|
12,175 | 5,391 | ||||||
Proceeds from revolving credit facilities
|
1,300,000 | 600,000 | ||||||
Debt issuance costs
|
(6,065 | ) | (7,144 | ) | ||||
Reduction in long-term debt
|
(1,404,271 | ) | (314,353 | ) | ||||
Reduction in revolving credit facilities
|
(700,000 | ) | (600,000 | ) | ||||
Repurchase of equity component of convertible debt
|
(12 | ) | (4,712 | ) | ||||
Settlement of call options and warrants, net
|
| 1,134 | ||||||
Purchase of restricted stock
|
(2,579 | ) | (1,904 | ) | ||||
Tax benefit related to share-based awards
|
185 | (38 | ) | |||||
Net cash (used for) provided by financing activities
|
(97,915 | ) | 365,006 | |||||
Effect of exchange rate changes on cash and cash equivalents
|
(2,174 | ) | (3,645 | ) | ||||
Net (decrease) increase in cash and cash equivalents
|
(366,241 | ) | (288,132 | ) | ||||
Cash and cash equivalents, beginning of period
|
641,702 | 927,815 | ||||||
Cash and cash equivalents, end of period
|
$ | 275,461 | $ | 639,683 | ||||
5
Accumulated |
|||||||||||||||||||||||||||||||||||||
Capital in |
Other |
Non- |
|||||||||||||||||||||||||||||||||||
Common Shares |
Excess of |
Comprehensive |
Retained |
Treasury |
controlling |
Total |
|||||||||||||||||||||||||||||||
(In thousands) | Shares | Par Value | Par Value | Income | Earnings | Shares | Interest | Equity | |||||||||||||||||||||||||||||
Balances, December 31, 2010
|
315,034 | $ | 315 | $ | 2,255,787 | $ | 342,052 | $ | 3,707,881 | $ | (977,873 | ) | $ | 14,701 | $ | 5,342,863 | |||||||||||||||||||||
Comprehensive income (loss):
|
|||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Nabors
|
$ | 349,529 | 349,529 | 349,529 | |||||||||||||||||||||||||||||||||
Translation adjustment attributable to Nabors
|
(47,507 | ) | (47,507 | ) | (47,507 | ) | |||||||||||||||||||||||||||||||
Unrealized gains/(losses) on marketable securities, net of
income taxes of $19
|
(26,053 | ) | (26,053 | ) | (26,053 | ) | |||||||||||||||||||||||||||||||
Less: Reclassification adjustment for (gains)/losses included in
net income (loss), net of income taxes of $0
|
(5 | ) | (5 | ) | (5 | ) | |||||||||||||||||||||||||||||||
Pension liability amortization, net of income taxes of $176
|
275 | 275 | 275 | ||||||||||||||||||||||||||||||||||
Unrealized gains/(losses) and amortization of (gains)/losses on
cash flow hedges, net of income tax benefit of $179
|
393 | 393 | 393 | ||||||||||||||||||||||||||||||||||
Comprehensive income (loss) attributable to Nabors
|
$ | 276,632 | |||||||||||||||||||||||||||||||||||
Net income (loss) attributable to noncontrolling interest
|
(355 | ) | (355 | ) | (355 | ) | |||||||||||||||||||||||||||||||
Translation adjustment attributable to noncontrolling interest
|
(460 | ) | (460 | ) | (460 | ) | |||||||||||||||||||||||||||||||
Comprehensive income (loss) attributable to noncontrolling
interest
|
(815 | ) | |||||||||||||||||||||||||||||||||||
Total comprehensive income (loss)
|
$ | 275,817 | |||||||||||||||||||||||||||||||||||
Issuance of common shares for stock options exercised, net of
surrender of unexercised stock options
|
1,006 | 1 | 12,174 | 12,175 | |||||||||||||||||||||||||||||||||
Distributions from noncontrolling interest
|
(2,159 | ) | (2,159 | ) | |||||||||||||||||||||||||||||||||
Repurchase of equity component of convertible debt
|
(12 | ) | (12 | ) | |||||||||||||||||||||||||||||||||
Tax benefit related to share-based awards
|
185 | 185 | |||||||||||||||||||||||||||||||||||
Restricted stock awards, net
|
882 | 1 | (2,580 | ) | (2,579 | ) | |||||||||||||||||||||||||||||||
Share-based compensation
|
17,249 | 17,249 | |||||||||||||||||||||||||||||||||||
Balances, September 30, 2011
|
316,922 | $ | 317 | $ | 2,282,803 | $ | 269,155 | $ | 4,057,410 | $ | (977,873 | ) | $ | 11,727 | $ | 5,643,539 | |||||||||||||||||||||
6
Accumulated |
|||||||||||||||||||||||||||||||||||||
Capital in |
Other |
Non- |
|||||||||||||||||||||||||||||||||||
Common Shares |
Excess of |
Comprehensive |
Retained |
Treasury |
controlling |
Total |
|||||||||||||||||||||||||||||||
(In thousands) | Shares | Par Value | Par Value | Income | Earnings | Shares | Interest | Equity | |||||||||||||||||||||||||||||
Balances, December 31, 2009
|
313,915 | $ | 314 | $ | 2,239,323 | $ | 292,706 | $ | 3,613,186 | $ | (977,873 | ) | $ | 14,323 | $ | 5,181,979 | |||||||||||||||||||||
Comprehensive income (loss):
|
|||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Nabors
|
$ | 44,214 | 44,214 | 44,214 | |||||||||||||||||||||||||||||||||
Translation adjustment attributable to Nabors
|
19,897 | 19,897 | 19,897 | ||||||||||||||||||||||||||||||||||
Unrealized gains/(losses) on marketable securities, net of
income taxes of $7,412
|
(30,508 | ) | (30,508 | ) | (30,508 | ) | |||||||||||||||||||||||||||||||
Less: Reclassification adjustment for (gains)/losses included in
net income (loss), net of income taxes of $693
|
(995 | ) | (995 | ) | (995 | ) | |||||||||||||||||||||||||||||||
Pension liability amortization, net of income taxes of $111
|
189 | 189 | 189 | ||||||||||||||||||||||||||||||||||
Unrealized gains/(losses) and amortization of (gains)/losses on
cash flow hedges, net of income tax benefit of $2,178
|
(3,294 | ) | (3,294 | ) | (3,294 | ) | |||||||||||||||||||||||||||||||
Comprehensive income (loss) attributable to Nabors
|
$ | 29,503 | |||||||||||||||||||||||||||||||||||
Net income (loss) attributable to noncontrolling interest
|
(1,208 | ) | (1,208 | ) | (1,208 | ) | |||||||||||||||||||||||||||||||
Translation adjustment attributable to noncontrolling interest
|
253 | 253 | 253 | ||||||||||||||||||||||||||||||||||
Comprehensive income (loss) attributable to noncontrolling
interest
|
(955 | ) | |||||||||||||||||||||||||||||||||||
Total comprehensive income (loss)
|
$ | 28,548 | |||||||||||||||||||||||||||||||||||
Issuance of common shares for stock options exercised, net of
surrender of unexercised stock options
|
459 | 5,391 | 5,391 | ||||||||||||||||||||||||||||||||||
Distributions from noncontrolling interest
|
(867 | ) | (867 | ) | |||||||||||||||||||||||||||||||||
Contributions to noncontrolling interest
|
437 | 437 | |||||||||||||||||||||||||||||||||||
Repurchase of equity component of convertible debt
|
(4,712 | ) | (4,712 | ) | |||||||||||||||||||||||||||||||||
Settlement of call options and warrants, net
|
1,134 | 1,134 | |||||||||||||||||||||||||||||||||||
Tax benefit related to share-based awards
|
(38 | ) | (38 | ) | |||||||||||||||||||||||||||||||||
Restricted stock awards, net
|
360 | (1,904 | ) | (1,904 | ) | ||||||||||||||||||||||||||||||||
Share-based compensation
|
10,602 | 10,602 | |||||||||||||||||||||||||||||||||||
Balances, September 30, 2010
|
314,734 | $ | 314 | $ | 2,249,796 | $ | 277,995 | $ | 3,657,400 | $ | (977,873 | ) | $ | 12,938 | $ | 5,220,570 | |||||||||||||||||||||
7
Note 1 | Nature of Operations |
| We actively market approximately 491 land drilling rigs for oil and gas land drilling operations in the Lower 48 states, Alaska, Canada, South America, Mexico, the Caribbean, the Middle East, the Far East, Russia and Africa. | |
| We actively market approximately 575 rigs for land well-servicing and workover work in the United States and approximately 174 rigs for land well-servicing and workover work in Canada. |
| We provide pressure pumping services with over 679,000 hydraulic horsepower in key basins throughout the United States. | |
| We offer a wide range of ancillary well-site services, including engineering, transportation and disposal, construction, maintenance, well logging, directional drilling, rig instrumentation, data collection and other support services in select U.S. and international markets. | |
| We manufacture and lease or sell top drives for a broad range of drilling applications, directional drilling systems, rig instrumentation and data collection equipment, pipeline handling equipment and rig reporting software. | |
| We invest in oil and gas exploration, development and production activities in the United States, Canada and Colombia through both our wholly owned subsidiaries and our oil and gas joint ventures in which we hold 49-50% ownership interests. | |
| We have a 51% ownership interest in a joint venture in Saudi Arabia, which owns and actively markets nine rigs in addition to the rigs we lease to the joint venture. | |
| We also provide logistics services for onshore drilling in Canada using helicopters and fixed-wing aircraft. |
8
Note 2 | Summary of Significant Accounting Policies |
9
Acquisitions |
||||||||||||||||||||
Balance as of |
and Purchase |
Cumulative |
Balance as of |
|||||||||||||||||
December 31, |
Price |
Translation |
September 30, |
|||||||||||||||||
2010 | Adjustments | Impairments | Adjustment | 2011 | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Contract Drilling:
|
||||||||||||||||||||
U.S. Lower 48 Land Drilling
|
$ | 30,154 | $ | | $ | | $ | | $ | 30,154 | ||||||||||
U.S. Land Well-servicing
|
55,839 | (767 | ) | | | 55,072 | ||||||||||||||
U.S. Offshore
|
7,296 | | | | 7,296 | |||||||||||||||
Alaska
|
19,995 | | | | 19,995 | |||||||||||||||
International
|
18,983 | | | | 18,983 | |||||||||||||||
Subtotal Contract Drilling
|
132,267 | (767 | ) | | | 131,500 | ||||||||||||||
Pressure Pumping
|
334,992 | | | | 334,992 | |||||||||||||||
Other Operating Segments
|
27,113 | 8,386 | (1) | | (694 | ) | 34,805 | |||||||||||||
Total
|
$ | 494,372 | $ | 7,619 | $ | | $ | (694 | ) | $ | 501,297 | |||||||||
(1) | Represents goodwill recorded during the three months ended September 30, 2011 relating to our acquisition of the remaining 50 percent equity interest of Peak Oilfield Service Company (Peak). The goodwill is attributable to Peaks workforce and the synergies and benefits expected from control of this subsidiary. The goodwill is not expected to be deductible for tax purposes. See Note 10 Supplemental Balance Sheet, Income Statement and Cash Flow Information for additional information on this acquisition. |
10
Note 3 | Cash and Cash Equivalents and Investments |
September 30, |
December 31, |
|||||||
2011 | 2010 | |||||||
(In thousands) | ||||||||
Cash and cash equivalents
|
$ | 275,461 | $ | 641,702 | ||||
Short-term investments:
|
||||||||
Trading equity securities
|
11,576 | 19,630 | ||||||
Available-for-sale
equity securities
|
56,654 | 79,698 | ||||||
Available-for-sale
debt securities
|
51,629 | 60,160 | ||||||
Total short-term investments
|
119,859 | 159,488 | ||||||
Long-term investments and other receivables
|
40,373 | 40,300 | ||||||
Total
|
$ | 435,693 | $ | 841,490 | ||||
11
September 30, 2011 | December 31, 2010 | |||||||||||||||||||||||
Gross |
Gross |
Gross |
Gross |
|||||||||||||||||||||
Unrealized |
Unrealized |
Unrealized |
Unrealized |
|||||||||||||||||||||
Fair |
Holding |
Holding |
Fair |
Holding |
Holding |
|||||||||||||||||||
Value | Gains | Losses | Value | Gains | Losses | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Cash and cash equivalents
|
$ | 275,461 | $ | | $ | | $ | 641,702 | $ | | $ | | ||||||||||||
Short-term investments:
|
||||||||||||||||||||||||
Trading equity securities
|
11,576 | 5,852 | | 19,630 | 13,906 | | ||||||||||||||||||
Available-for-sale
equity securities
|
56,654 | 16,065 | (3,207 | ) | 79,698 | 38,176 | (2,274 | ) | ||||||||||||||||
Available-for-sale
debt securities:
|
||||||||||||||||||||||||
Commercial paper and CDs
|
1,160 | | | 1,275 | | | ||||||||||||||||||
Corporate debt securities
|
44,600 | 14,421 | (2,187 | ) | 52,022 | 15,274 | (18 | ) | ||||||||||||||||
Mortgage-backed debt securities
|
367 | 19 | | 372 | 16 | | ||||||||||||||||||
Mortgage-CMO debt securities
|
2,797 | 31 | (3 | ) | 3,015 | 21 | (6 | ) | ||||||||||||||||
Asset-backed debt securities
|
2,705 | | (253 | ) | 3,476 | | (268 | ) | ||||||||||||||||
Total
available-for-sale
debt securities
|
51,629 | 14,471 | (2,443 | ) | 60,160 | 15,311 | (292 | ) | ||||||||||||||||
Total
available-for-sale
securities
|
108,283 | 30,536 | (5,650 | ) | 139,858 | 53,487 | (2,566 | ) | ||||||||||||||||
Total short-term investments
|
119,859 | 36,388 | (5,650 | ) | 159,488 | 67,393 | (2,566 | ) | ||||||||||||||||
Total cash, cash equivalents and short-term investments
|
$ | 395,320 | $ | 36,388 | $ | (5,650 | ) | $ | 801,190 | $ | 67,393 | $ | (2,566 | ) | ||||||||||
As of September 30, 2011 | ||||||||||||||||
Less Than 12 Months | More Than 12 Months | |||||||||||||||
Gross |
Gross |
|||||||||||||||
Fair |
Unrealized |
Fair |
Unrealized |
|||||||||||||
Value | Loss | Value | Loss | |||||||||||||
(In thousands) | ||||||||||||||||
Available-for-sale
equity securities
|
$ | 24,874 | $ | 3,207 | $ | | $ | | ||||||||
Available-for-sale
debt securities:(1)
|
||||||||||||||||
Corporate debt securities
|
17,600 | 2,187 | | | ||||||||||||
Mortgage-CMO debt securities
|
| | 105 | 3 | ||||||||||||
Asset-backed debt securities
|
| | 2,705 | 253 | ||||||||||||
Total
available-for-sale
debt securities
|
17,600 | 2,187 | 2,810 | 256 | ||||||||||||
Total
|
$ | 42,474 | $ | 5,394 | $ | 2,810 | $ | 256 | ||||||||
(1) | Our unrealized losses on available-for-sale debt securities held for more than one year are comprised of various types of securities. Each of these securities has a rating ranging from A to AAA from |
12
Standard & Poors and ranging from A2 to Aaa from Moodys Investors Service and is considered of high credit quality. In each case, we do not intend to sell these investments, and it is less likely than not that we will be required to sell them to satisfy our own cash flow and working capital requirements. We believe that we will be able to collect all amounts due according to the contractual terms of each investment and, therefore, did not consider the decline in value of these investments to be other-than-temporary at September 30, 2011. |
Estimated |
||||
Fair Value | ||||
September 30, |
||||
2011 | ||||
(In thousands) | ||||
Debt securities:
|
||||
Due in one year or less
|
$ | 1,160 | ||
Due after one year through five years
|
| |||
Due in more than five years
|
50,469 | |||
Total debt securities
|
$ | 51,629 | ||
Nine Months Ended |
||||||||
September 30, | ||||||||
2011 | 2010 | |||||||
(In thousands) | ||||||||
Available-for-sale:
|
||||||||
Proceeds from sales and maturities
|
$ | 1,124 | $ | 12,590 | ||||
Realized gains (losses), net
|
(5 | ) | 3,647 |
13
Note 4 | Fair Value Measurements |
Fair Value as of September 30, 2011 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(In thousands) | ||||||||||||||||
Assets:
|
||||||||||||||||
Short-term investments:
|
||||||||||||||||
Available-for-sale
equity securities energy industry
|
$ | 56,654 | $ | | $ | | $ | 56,654 | ||||||||
Available-for-sale
debt securities
|
||||||||||||||||
Commercial paper and CDs
|
1,160 | | | 1,160 | ||||||||||||
Corporate debt securities
|
| 44,600 | | 44,600 | ||||||||||||
Mortgage-backed debt securities
|
| 367 | | 367 | ||||||||||||
Mortgage-CMO debt securities
|
| 2,797 | | 2,797 | ||||||||||||
Asset-backed debt securities
|
2,705 | | | 2,705 | ||||||||||||
Trading securities energy industry
|
11,576 | | | 11,576 | ||||||||||||
Total short-term investments
|
$ | 72,095 | $ | 47,764 | $ | | $ | 119,859 | ||||||||
Liabilities:
|
||||||||||||||||
Derivative contract
|
$ | | $ | 1,900 | $ | | $ | 1,900 | ||||||||
14
September 30, 2011 | December 31, 2010 | |||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||
(In thousands) | ||||||||||||||||
5.375% senior notes due August 2012(1)
|
$ | 274,448 | $ | 284,952 | $ | 273,977 | $ | 291,500 | ||||||||
6.15% senior notes due February 2018
|
967,186 | 1,078,984 | 966,276 | 1,041,008 | ||||||||||||
9.25% senior notes due January 2019
|
1,125,000 | 1,438,864 | 1,125,000 | 1,393,943 | ||||||||||||
5.00% senior notes due September 2020
|
697,266 | 721,070 | 697,037 | 678,335 | ||||||||||||
4.625% senior notes due September 2021
|
697,607 | 687,253 | | | ||||||||||||
0.94% senior exchangeable notes due May 2011
|
| | 1,378,178 | 1,403,315 | ||||||||||||
Subsidiary preferred stock
|
69,188 | 68,625 | 69,188 | 68,625 | ||||||||||||
Revolving credit facilities
|
600,000 | 600,000 | | | ||||||||||||
Other
|
1,853 | 1,853 | 2,676 | 2,676 | ||||||||||||
$ | 4,432,548 | $ | 4,881,601 | $ | 4,512,332 | $ | 4,879,402 | |||||||||
(1) | Includes $.4 million and $.7 million as of September 30, 2011 and December 31, 2010, respectively, related to the unamortized loss on an interest rate swap that was unwound during the fourth quarter of 2005. |
Note 5 | Share-Based Compensation |
15
Nine Months Ended |
||||||||
September 30, | ||||||||
2011 | 2010 | |||||||
Weighted-average fair value of options granted
|
$ | 6.53 | $ | 6.27 | ||||
Weighted-average risk free interest rate
|
.66% | 1.49% | ||||||
Dividend yield
|
0% | 0% | ||||||
Volatility(1)
|
51.0% | 40.62% | ||||||
Expected life
|
4.0 years | 4.0 years |
(1) | Expected volatilities were based on implied volatilities from publicly traded options to purchase Nabors common shares, historical volatility of Nabors common shares and other factors |
16
Note 6 | Debt |
September 30, |
December 31, |
|||||||
2011 | 2010 | |||||||
(In thousands) | ||||||||
5.375% senior notes due August 2012
|
$ | 274,448 | $ | 273,977 | ||||
6.15% senior notes due February 2018
|
967,186 | 966,276 | ||||||
9.25% senior notes due January 2019
|
1,125,000 | 1,125,000 | ||||||
5.00% senior notes due September 2020
|
697,266 | 697,037 | ||||||
4.625% senior notes due September 2021
|
697,607 | | ||||||
0.94% senior exchangeable notes due May 2011
|
| 1,378,178 | ||||||
Revolving credit facilities
|
600,000 | | ||||||
Other
|
1,853 | 2,676 | ||||||
4,363,360 | 4,443,144 | |||||||
Less: current portion
|
275,227 | 1,379,018 | ||||||
$ | 4,088,133 | $ | 3,064,126 | |||||
17
Note 7 | Common Shares |
Note 8 | Commitments and Contingencies |
| In the event of Mr. Isenbergs Termination Without Cause (including in the event of a change of control), or his death or disability, either he or his estate would be entitled to receive a payment of $100 million within 30 days thereafter. |
18
| In the event of Mr. Petrellos death or disability, either he or his estate would be entitled to receive a payment of $50 million within 30 days; if he experienced a Termination Without Cause (a change of control) or Constructive Termination Without Cause, either he or his estate would be entitled to a payment equal to three times the average of his base salary and annual bonus (calculated as though the bonus formula under his employment agreement as amended in April 2009 had been in effect) during the three fiscal years preceding the termination. If, by way of example, Mr. Petrello were Terminated Without Cause subsequent to September 30, 2011, his payment would be approximately $34 million. The formula will be further reduced to two times the average stated above effective April 1, 2015. |
19
20
Maximum Amount | ||||||||||||||||||||
Remainder |
||||||||||||||||||||
of 2011 | 2012 | 2013 | Thereafter | Total | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Financial standby letters of credit and other financial surety
instruments
|
$ | 35,563 | $ | 78,009 | $ | | $ | | $ | 113,572 |
21
Note 9 | Earnings (Losses) Per Share |
Three Months Ended |
Nine Months Ended |
|||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Net income (loss) (numerator):
|
||||||||||||||||
Income (loss) from continuing operations, net of tax
|
$ | 82,204 | $ | (31,563 | ) | $ | 234,678 | $ | 55,927 | |||||||
Less: net (income) loss attributable to noncontrolling interest
|
(708 | ) | (453 | ) | 355 | 1,208 | ||||||||||
Adjusted income (loss) from continuing operations, net of tax
basic
|
81,496 | (32,016 | ) | 235,033 | 57,135 | |||||||||||
Add: interest expense on assumed conversion of our
0.94% senior exchangeable notes due 2011, net of tax(1)
|
| | | | ||||||||||||
Adjusted net income (loss) from continuing operations, net of
tax diluted
|
$ | 81,496 | $ | (32,016 | ) | $ | 235,033 | $ | 57,135 | |||||||
Earnings (losses) per share:
|
||||||||||||||||
Basic from continuing operations
|
$ | .28 | $ | (.11 | ) | $ | .82 | $ | .21 | |||||||
Diluted from continuing operations
|
$ | .28 | $ | (.11 | ) | $ | .80 | $ | .19 | |||||||
Income (loss) from discontinued operations, net of tax
|
$ | (7,240 | ) | $ | (7,591 | ) | $ | 114,496 | $ | (12,921 | ) | |||||
Earnings (losses) per share:
|
||||||||||||||||
Basic from discontinued operations
|
$ | (.02 | ) | $ | (.03 | ) | $ | .40 | $ | (.05 | ) | |||||
Diluted from discontinued operations
|
$ | (.03 | ) | $ | (.03 | ) | $ | .39 | $ | (.04 | ) | |||||
Shares (denominator):
|
||||||||||||||||
Weighted-average number of shares outstanding basic
|
287,487 | 285,282 | 286,971 | 285,045 | ||||||||||||
Net effect of dilutive stock options, warrants and restricted
stock awards based on the if-converted method
|
4,499 | | 6,020 | 4,802 | ||||||||||||
Assumed conversion of our 0.94% senior exchangeable notes
due 2011(1)
|
| | | | ||||||||||||
Weighted-average number of shares outstanding diluted
|
291,986 | 285,282 | 292,991 | 289,847 | ||||||||||||
(1) | In May 2011, the remaining aggregate principal amount of our 0.94% senior exchangeable notes matured and we redeemed them with $1.2 billion of borrowings under our revolving credit facilities and available cash. Diluted earnings (losses) per share for the three and nine months ended September 30, 2010 exclude any incremental shares that would have been issuable upon exchange of these notes based on a calculation using our stock price. Our stock price did not exceed the threshold during the period ending September 30, 2010. |
22
Note 10 | Supplemental Balance Sheet, Income Statement and Cash Flow Information |
September 30, |
December 31, |
|||||||
2011 | 2010 | |||||||
(In thousands) | ||||||||
Accrued compensation
|
$ | 147,122 | $ | 116,680 | ||||
Deferred revenue
|
131,695 | 88,389 | ||||||
Other taxes payable
|
67,222 | 25,227 | ||||||
Workers compensation liabilities
|
21,489 | 31,944 | ||||||
Interest payable
|
39,456 | 89,276 | ||||||
Due to joint venture partners
|
6,041 | 6,030 | ||||||
Warranty accrual
|
4,422 | 3,376 | ||||||
Litigation reserves
|
24,513 | 12,301 | ||||||
Professional fees
|
5,567 | 3,222 | ||||||
Current deferred tax liability
|
| 1,027 | ||||||
Other accrued liabilities
|
12,416 | 16,820 | ||||||
$ | 459,943 | $ | 394,292 | |||||
Nine Months Ended |
||||||||
September 30, | ||||||||
2011 | 2010 | |||||||
(In thousands) | ||||||||
Interest and dividend income
|
$ | 5,338 | $ | 5,525 | ||||
Gains (losses) on investments, net(1)
|
6,718 | (2) | (6,501 | ) | ||||
$ | 12,056 | $ | (976 | ) | ||||
(1) | Includes unrealized losses of $8.1 million and $10.1 million, respectively, from our trading securities. | |
(2) | Includes $12.9 million realized gain related to one of our overseas fund investments classified as long-term investments, partially offset by unrealized losses discussed above. |
23
Nine Months Ended |
||||||||
September 30, | ||||||||
2011 | 2010 | |||||||
(In thousands) | ||||||||
Losses (gains) on sales and retirements of long-lived assets
|
$ | (695 | ) | $ | 4,211 | |||
Gain on acquisition of equity method investment
|
(12,178 | )(1) | | |||||
Acquisition-related costs
|
151 | 7,000 | ||||||
Litigation expenses
|
12,221 | 3,398 | ||||||
Foreign currency transaction losses (gains)
|
606 | 16,839 | (2) | |||||
Losses (gains) on derivative instruments
|
(1,540 | ) | 707 | |||||
Losses (gains) on debt extinguishment
|
58 | 7,042 | ||||||
Other losses (gains)
|
821 | 1,601 | ||||||
$ | (556 | ) | $ | 40,798 | ||||
(1) | On July 29, 2011, we paid $65 million in cash to acquire the remaining 50 percent equity interest of Peak, making it a wholly owned subsidiary on this date. Peak operates in Alaska, providing construction and rig moving services in icy conditions as well as light and heavy-duty moving, hauling and maintenance services. Previously, we held a 50 percent equity interest with a carrying value of $38.1 million that we had accounted for as an equity method investment. As a result of the acquisition, we have consolidated the assets and liabilities of Peak during the third quarter based on their respective fair values, in accordance with Topic 805 Business Combinations. The excess of the estimated fair value of the assets and liabilities over the net carrying value of our previously held equity interest resulted in a gain of $12.2 million. | |
(2) | Includes $8.2 million foreign currency exchange losses for operations in Venezuela related to the Venezuela governments decision to devalue its currency in January 2010. |
Nine Months Ended |
||||||||
September 30, | ||||||||
2011 | 2010 | |||||||
(In thousands) | ||||||||
Provision for retirement of long-lived assets
|
$ | 98,072 | $ | 23,213 | ||||
Impairment of long-lived assets
|
| 34,832 | ||||||
Impairment of oil and gas-related assets
|
| 54,347 | ||||||
Goodwill impairments
|
| 10,707 | ||||||
Impairments and other charges
|
$ | 98,072 | $ | 123,099 | ||||
24
25
Note 11 | Discontinued Operations |
Three Months Ended |
Nine Months Ended |
|||||||||||||||
Condensed Statements of Income (Loss) from Discontinued |
September 30, | September 30, | ||||||||||||||
Operations | 2011 | 2010 | 2011 | 2010 | ||||||||||||
(In thousands) | ||||||||||||||||
Operating revenues and Earnings (losses) from unconsolidated
affiliates
|
$ | 3,684 | $ | 3,556 | $ | 101,966 | (1) | $ | 20,680 | |||||||
Income (loss) from discontinued operations:
|
||||||||||||||||
Income (loss) from discontinued operations
|
$ | (8,534 | ) | $ | (8,864 | ) | $ | 71,039 | $ | (13,432 | ) | |||||
Gain (loss) on disposal of wholly owned assets
|
| | 39,944 | | ||||||||||||
Less: income tax expense (benefit)
|
(1,294 | ) | (1,273 | ) | (3,513 | ) | (511 | ) | ||||||||
Income (loss) from discontinued operations, net of tax
|
$ | (7,240 | ) | $ | (7,591 | ) | $ | 114,496 | $ | (12,921 | ) | |||||
(1) | Includes approximately $85 million of equity in earnings during the nine months ended September 30, 2011 for our proportionate share of Remoras net income, inclusive of the gains recognized for asset sales during the first nine months of 2011. |
26
Note 12 | Segment Information |
Three Months Ended |
Nine Months Ended |
|||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(In thousands) | ||||||||||||||||
Operating revenues and Earnings (losses) from unconsolidated
affiliates from continuing operations:(1)
|
||||||||||||||||
Contract Drilling:(2)
|
||||||||||||||||
U.S. Lower 48 Land Drilling
|
$ | 430,895 | $ | 350,348 | $ | 1,214,447 | $ | 925,262 | ||||||||
U.S. Land Well-servicing
|
189,356 | 119,127 | 503,752 | 321,978 | ||||||||||||
U.S. Offshore
|
46,069 | 26,504 | 116,807 | 103,680 | ||||||||||||
Alaska
|
27,027 | 45,920 | 100,678 | 139,099 | ||||||||||||
Canada
|
145,587 | 85,728 | 406,004 | 262,043 | ||||||||||||
International
|
281,686 | 288,535 | 809,394 | 800,886 | ||||||||||||
Subtotal Contract Drilling(3)
|
1,120,620 | 916,162 | 3,151,082 | 2,552,948 | ||||||||||||
Pressure Pumping(4)
|
343,723 | 61,611 | 867,512 | 61,611 | ||||||||||||
Oil and Gas(5)
|
43,104 | 11,280 | 74,987 | 31,682 | ||||||||||||
Other Operating Segments(6)(7)
|
199,604 | 130,392 | 483,478 | 333,654 | ||||||||||||
Other reconciling items(8)
|
(48,537 | ) | (38,342 | ) | (156,780 | ) | (94,930 | ) | ||||||||
Total
|
$ | 1,658,514 | $ | 1,081,103 | $ | 4,420,279 | $ | 2,884,965 | ||||||||
Adjusted income (loss) derived from operating activities from
continuing operations:(1)(9)
|
||||||||||||||||
Contract Drilling:
|
||||||||||||||||
U.S. Lower 48 Land Drilling
|
$ | 104,877 | $ | 70,452 | $ | 284,203 | $ | 188,907 | ||||||||
U.S. Land Well-servicing
|
22,839 | 9,049 | 50,488 | 19,465 | ||||||||||||
U.S. Offshore
|
2,457 | (1,090 | ) | (2,579 | ) | 14,387 | ||||||||||
Alaska
|
3,021 | 14,299 | 22,328 | 40,644 | ||||||||||||
Canada
|
21,604 | 1,013 | 58,084 | 6,398 | ||||||||||||
International
|
29,015 | 64,379 | 100,363 | 182,930 | ||||||||||||
Subtotal Contract Drilling(3)
|
183,813 | 158,102 | 512,887 | 452,731 | ||||||||||||
Pressure Pumping(4)
|
65,052 | 11,987 | 152,655 | 11,987 | ||||||||||||
Oil and Gas(5)
|
23,841 | 1,037 | 28,030 | 5,654 | ||||||||||||
Other Operating Segments(6)(7)
|
22,012 | 17,969 | 41,791 | 33,176 | ||||||||||||
Other reconciling items(10)
|
(35,430 | ) | (24,676 | ) | (110,184 | ) | (70,559 | ) | ||||||||
Total adjusted income derived from operating activities
|
$ | 259,288 | $ | 164,419 | $ | 625,179 | $ | 432,989 | ||||||||
Interest expense
|
(57,907 | ) | (66,973 | ) | (195,570 | ) | (199,035 | ) | ||||||||
Investment income (loss)
|
738 | (733 | ) | 12,056 | (976 | ) | ||||||||||
Gains (losses) on sales and retirements of long-lived assets and
other income (expense), net
|
12,157 | (9,407 | ) | 556 | (40,798 | ) | ||||||||||
Impairments and other charges
|
(98,072 | ) | (123,099 | ) | (98,072 | ) | (123,099 | ) | ||||||||
Income (loss) from continuing operations before income taxes
|
116,204 | (35,793 | ) | 344,149 | 69,081 | |||||||||||
Income tax expense (benefit)
|
33,250 | (4,230 | ) | 107,221 | 13,154 | |||||||||||
Subsidiary preferred stock dividend
|
750 | | 2,250 | | ||||||||||||
Income (loss) from continuing operations, net of tax
|
82,204 | (31,563 | ) | 234,678 | 55,927 | |||||||||||
Income (loss) from discontinued operations, net of tax
|
(7,240 | ) | (7,591 | ) | 114,496 | (12,921 | ) | |||||||||
Net income (loss)
|
74,964 | (39,154 | ) | 349,174 | 43,006 | |||||||||||
Less: Net income (loss) attributable to noncontrolling interest
|
(708 | ) | (453 | ) | 355 | 1,208 | ||||||||||
Net income (loss) attributable to Nabors
|
$ | 74,256 | $ | (39,607 | ) | $ | 349,529 | $ | 44,214 | |||||||
27
September 30, |
December 31, |
|||||||
2011 | 2010 | |||||||
(In thousands) | ||||||||
Total assets:
|
||||||||
Contract Drilling:(11)
|
||||||||
U.S. Lower 48 Land Drilling
|
$ | 3,047,093 | $ | 2,762,362 | ||||
U.S. Land Well-servicing
|
768,442 | 630,518 | ||||||
U.S. Offshore
|
385,087 | 379,292 | ||||||
Alaska
|
281,252 | 313,123 | ||||||
Canada
|
919,341 | 1,065,268 | ||||||
International
|
3,594,294 | 3,279,763 | ||||||
Subtotal Contract Drilling
|
8,995,509 | 8,430,326 | ||||||
Pressure Pumping(4)
|
1,353,403 | 1,163,236 | ||||||
Oil and Gas(12)
|
848,135 | 805,410 | ||||||
Other Operating Segments(13)
|
675,908 | 539,373 | ||||||
Other reconciling items(10) (14)
|
445,391 | 708,224 | ||||||
Total assets
|
$ | 12,318,346 | $ | 11,646,569 | ||||
(1) | All information presents the operating activities of oil and gas assets in the Horn River basin in Canada and in the Llanos basin in Colombia as discontinued operations. | |
(2) | These segments include our drilling, well-servicing and workover operations on land and offshore. | |
(3) | Includes earnings (losses), net from unconsolidated affiliates, accounted for using the equity method, of $(.9) million and $.6 million for the three months ended September 30, 2011 and 2010, respectively, and $3.0 million and $3.7 million for the nine months ended September 30, 2011 and 2010, respectively. | |
(4) | Includes operating results of our Pressure Pumping operating segment for the period September 10 through September 30, 2010 and for the three and nine months ended September 30, 2011. | |
(5) | Includes earnings (losses), net from unconsolidated affiliates, accounted for using the equity method, of $34.9 million and $6.8 million for the three months ended September 30, 2011 and 2010, respectively, and $56.3 million and $14.5 million for the nine months ended September 30, 2011 and 2010, respectively. | |
(6) | Includes our drilling technology and top drive manufacturing, directional drilling, rig instrumentation and software, and construction and logistics operations. | |
(7) | Includes earnings (losses), net from unconsolidated affiliates, accounted for using the equity method, of $(.3) million and $4.4 million for the three months ended September 30, 2011 and 2010, respectively, and $0 and $10.1 million for the nine months ended September 30, 2011 and 2010, respectively. | |
(8) | Represents the elimination of inter-segment transactions. | |
(9) | Adjusted income (loss) derived from operating activities is computed by subtracting direct costs, general and administrative expenses, depreciation and amortization, and depletion expense from Operating revenues and then adding Earnings (losses) from unconsolidated affiliates. Such amounts should not be used as a substitute for those amounts reported under GAAP. However, management evaluates the performance of our business units and the consolidated company based on several criteria, including adjusted income (loss) derived from operating activities, because it believes that these financial measures accurately reflect our ongoing profitability. A reconciliation of this non-GAAP measure to income (loss) from continuing operations before income taxes, which is a GAAP measure, is provided within the above table. |
28
(10) | Represents the elimination of inter-segment transactions and unallocated corporate expenses. | |
(11) | Includes $57.9 million and $54.8 million of investments in unconsolidated affiliates accounted for using the equity method as of September 30, 2011 and December 31, 2010, respectively. | |
(12) | Includes $234.6 million and $146.5 million investments in unconsolidated affiliates accounted for using the equity method as of September 30, 2011 and December 31, 2010, respectively. | |
(13) | Includes $28.0 million and $64.5 million of investments in unconsolidated affiliates accounted for using the equity method as of September 30, 2011 and December 31, 2010, respectively. | |
(14) | Includes $2.5 million and $1.9 million of investments in unconsolidated affiliates accounted for using the cost method as of September 30, 2011 and December 31, 2010, respectively. |
Note 13 | Condensed Consolidating Financial Information |
29
September 30, 2011 | ||||||||||||||||||||
Nabors |
Other |
|||||||||||||||||||
Nabors |
Delaware |
Subsidiaries |
||||||||||||||||||
(Parent/ |
(Issuer/ |
(Non- |
Consolidating |
Consolidated |
||||||||||||||||
Guarantor) | Guarantor) | Guarantors) | Adjustments | Total | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
ASSETS
|
||||||||||||||||||||
Current assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | 1,156 | $ | 22 | $ | 274,283 | $ | | $ | 275,461 | ||||||||||
Short-term investments
|
| | 119,859 | | 119,859 | |||||||||||||||
Assets held for sale
|
| | 267,911 | | 267,911 | |||||||||||||||
Accounts receivable, net
|
| | 1,397,725 | | 1,397,725 | |||||||||||||||
Inventory
|
| | 233,298 | | 233,298 | |||||||||||||||
Deferred income taxes
|
| | 83,388 | | 83,388 | |||||||||||||||
Other current assets
|
50 | 1,140 | 165,512 | | 166,702 | |||||||||||||||
Total current assets
|
1,206 | 1,162 | 2,541,976 | | 2,544,344 | |||||||||||||||
Long-term investments and other receivables
|
| | 40,373 | | 40,373 | |||||||||||||||
Property, plant and equipment, net
|
| 41,656 | 8,535,557 | | 8,577,213 | |||||||||||||||
Goodwill
|
| | 501,297 | | 501,297 | |||||||||||||||
Intercompany receivables
|
162,615 | | 537,881 | (700,496 | ) | | ||||||||||||||
Investment in unconsolidated affiliates
|
5,472,298 | 6,069,063 | 1,810,558 | (13,028,853 | ) | 323,066 | ||||||||||||||
Other long-term assets
|
| 33,402 | 298,651 | | 332,053 | |||||||||||||||
Total assets
|
$ | 5,636,119 | $ | 6,145,283 | $ | 14,266,293 | $ | (13,729,349 | ) | $ | 12,318,346 | |||||||||
LIABILITIES AND EQUITY
|
||||||||||||||||||||
Current liabilities:
|
||||||||||||||||||||
Current portion of long-term debt
|
$ | | $ | 274,447 | $ | 780 | $ | | $ | 275,227 | ||||||||||
Trade accounts payable
|
1 | 148 | 658,543 | | 658,692 | |||||||||||||||
Accrued liabilities
|
4,306 | 40,586 | 415,051 | | 459,943 | |||||||||||||||
Income taxes payable
|
| | 21,903 | | 21,903 | |||||||||||||||
Total current liabilities
|
4,307 | 315,181 | 1,096,277 | | 1,415,765 | |||||||||||||||
Long-term debt
|
| 4,037,060 | 51,073 | | 4,088,133 | |||||||||||||||
Other long-term liabilities
|
| 32,813 | 187,249 | | 220,062 | |||||||||||||||
Deferred income taxes
|
| 30,225 | 851,434 | | 881,659 | |||||||||||||||
Intercompany payable
|
| 651,883 | 48,613 | (700,496 | ) | | ||||||||||||||
Total liabilities
|
4,307 | 5,067,162 | 2,234,646 | (700,496 | ) | 6,605,619 | ||||||||||||||
Subsidiary preferred stock
|
| | 69,188 | | 69,188 | |||||||||||||||
Shareholders equity
|
5,631,812 | 1,078,121 | 11,950,732 | (13,028,853 | ) | 5,631,812 | ||||||||||||||
Noncontrolling interest
|
| | 11,727 | | 11,727 | |||||||||||||||
Total equity
|
5,631,812 | 1,078,121 | 11,962,459 | (13,028,853 | ) | 5,643,539 | ||||||||||||||
Total liabilities and equity
|
$ | 5,636,119 | $ | 6,145,283 | $ | 14,266,293 | $ | (13,729,349 | ) | $ | 12,318,346 | |||||||||
30
December 31, 2010 | ||||||||||||||||||||
Nabors |
Other |
|||||||||||||||||||
Nabors |
Delaware |
Subsidiaries |
||||||||||||||||||
(Parent/ |
(Issuer/ |
(Non- |
Consolidating |
Consolidated |
||||||||||||||||
Guarantor) | Guarantor) | Guarantors) | Adjustments | Total | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
ASSETS
|
||||||||||||||||||||
Current assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | 10,847 | $ | 20 | $ | 630,835 | $ | | $ | 641,702 | ||||||||||
Short-term investments
|
| | 159,488 | | 159,488 | |||||||||||||||
Assets held for sale
|
| | 352,048 | | 352,048 | |||||||||||||||
Accounts receivable, net
|
| | 1,116,510 | | 1,116,510 | |||||||||||||||
Inventory
|
| | 158,836 | | 158,836 | |||||||||||||||
Deferred income taxes
|
| | 31,510 | | 31,510 | |||||||||||||||
Other current assets
|
50 | 16,366 | 136,420 | | 152,836 | |||||||||||||||
Total current assets
|
10,897 | 16,386 | 2,585,647 | | 2,612,930 | |||||||||||||||
Long-term investments and other receivables
|
| | 40,300 | | 40,300 | |||||||||||||||
Property, plant and equipment, net
|
| 44,270 | 7,771,149 | | 7,815,419 | |||||||||||||||
Goodwill
|
| | 494,372 | | 494,372 | |||||||||||||||
Intercompany receivables
|
160,250 | | 322,697 | (482,947 | ) | | ||||||||||||||
Investment in unconsolidated affiliates
|
5,160,800 | 5,814,219 | 1,665,459 | (12,372,755 | ) | 267,723 | ||||||||||||||
Other long-term assets
|
| 36,538 | 379,287 | | 415,825 | |||||||||||||||
Total assets
|
$ | 5,331,947 | $ | 5,911,413 | $ | 13,258,911 | $ | (12,855,702 | ) | $ | 11,646,569 | |||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||
Current liabilities:
|
||||||||||||||||||||
Current portion of long-term debt
|
$ | | $ | 1,378,178 | $ | 840 | $ | | $ | 1,379,018 | ||||||||||
Trade accounts payable
|
| | 355,282 | | 355,282 | |||||||||||||||
Accrued liabilities
|
3,785 | 89,480 | 301,027 | | 394,292 | |||||||||||||||
Income taxes payable
|
| 6,859 | 18,929 | | 25,788 | |||||||||||||||
Total current liabilities
|
3,785 | 1,474,517 | 676,078 | | 2,154,380 | |||||||||||||||
Long-term debt
|
| 3,062,291 | 1,835 | | 3,064,126 | |||||||||||||||
Other long-term liabilities
|
| 12,787 | 232,978 | | 245,765 | |||||||||||||||
Deferred income taxes
|
| 71,815 | 698,432 | | 770,247 | |||||||||||||||
Intercompany payable
|
| 301,451 | 181,496 | (482,947 | ) | | ||||||||||||||
Total liabilities
|
3,785 | 4,922,861 | 1,790,819 | (482,947 | ) | 6,234,518 | ||||||||||||||
Subsidiary preferred stock
|
| | 69,188 | | 69,188 | |||||||||||||||
Shareholders equity
|
5,328,162 | 988,552 | 11,384,203 | (12,372,755 | ) | 5,328,162 | ||||||||||||||
Noncontrolling interest
|
| | 14,701 | | 14,701 | |||||||||||||||
Total equity
|
5,328,162 | 988,552 | 11,398,904 | (12,372,755 | ) | 5,342,863 | ||||||||||||||
Total liabilities and equity
|
$ | 5,331,947 | $ | 5,911,413 | $ | 13,258,911 | $ | (12,855,702 | ) | $ | 11,646,569 | |||||||||
31
Three Months Ended September 30, 2011 | ||||||||||||||||||||
Nabors |
Other |
|||||||||||||||||||
Nabors |
Delaware |
Subsidiaries |
||||||||||||||||||
(Parent/ |
(Issuer/ |
(Non- |
Consolidating |
Consolidated |
||||||||||||||||
Guarantor) | Guarantor) | Guarantors) | Adjustments | Total | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Revenues and other income:
|
||||||||||||||||||||
Operating revenues
|
$ | | $ | | $ | 1,624,791 | $ | | $ | 1,624,791 | ||||||||||
Earnings (losses) from unconsolidated affiliates
|
| | 33,723 | | 33,723 | |||||||||||||||
Earnings (losses) from consolidated affiliates
|
77,212 | 111,096 | 87,037 | (275,345 | ) | | ||||||||||||||
Investment income (loss)
|
| | 738 | | 738 | |||||||||||||||
Intercompany interest income
|
| 16,615 | | (16,615 | ) | | ||||||||||||||
Total revenues and other income
|
77,212 | 127,711 | 1,746,289 | (291,960 | ) | 1,659,252 | ||||||||||||||
Costs and other deductions:
|
||||||||||||||||||||
Direct costs
|
| | 1,030,231 | | 1,030,231 | |||||||||||||||
General and administrative expenses
|
2,809 | 154 | 119,557 | (148 | ) | 122,372 | ||||||||||||||
Depreciation and amortization
|
| 872 | 233,962 | | 234,834 | |||||||||||||||
Depletion
|
| | 11,789 | | 11,789 | |||||||||||||||
Interest expense
|
| 64,655 | (6,748 | ) | | 57,907 | ||||||||||||||
Intercompany interest expense
|
| | 16,615 | (16,615 | ) | | ||||||||||||||
Losses (gains) on sales and retirements of long-lived assets and
other expense (income), net
|
147 | (574 | ) | (11,878 | ) | 148 | (12,157 | ) | ||||||||||||
Impairments and other charges
|
| | 98,072 | | 98,072 | |||||||||||||||
Total costs and other deductions
|
2,956 | 65,107 | 1,491,600 | (16,615 | ) | 1,543,048 | ||||||||||||||
Income (loss) from continuing operations before income taxes
|
74,256 | 62,604 | 254,689 | (275,345 | ) | 116,204 | ||||||||||||||
Income tax expense (benefit)
|
| (17,942 | ) | 51,192 | | 33,250 | ||||||||||||||
Subsidiary preferred stock dividend
|
| | 750 | | 750 | |||||||||||||||
Income (loss) from continuing operations, net of tax
|
74,256 | 80,546 | 202,747 | (275,345 | ) | 82,204 | ||||||||||||||
Income (loss) from discontinued operations, net of tax
|
| | (7,240 | ) | | (7,240 | ) | |||||||||||||
Net income (loss)
|
74,256 | 80,546 | 195,507 | (275,345 | ) | 74,964 | ||||||||||||||
Less: Net (income) loss attributable to noncontrolling interest
|
| | (708 | ) | | (708 | ) | |||||||||||||
Net income (loss) attributable to Nabors
|
$ | 74,256 | $ | 80,546 | $ | 194,799 | $ | (275,345 | ) | $ | 74,256 | |||||||||
32
Three Months Ended September 30, 2010 | ||||||||||||||||||||
Nabors |
Other |
|||||||||||||||||||
Nabors |
Delaware |
Subsidiaries |
||||||||||||||||||
(Parent/ |
(Issuer/ |
(Non- |
Consolidating |
Consolidated |
||||||||||||||||
Guarantor) | Guarantor) | Guarantors) | Adjustments | Total | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Revenues and other income:
|
||||||||||||||||||||
Operating revenues
|
$ | | $ | | $ | 1,069,261 | $ | | $ | 1,069,261 | ||||||||||
Earnings (losses) from unconsolidated affiliates
|
| | 11,842 | | 11,842 | |||||||||||||||
Earnings (losses) from consolidated affiliates
|
(38,086 | ) | (176,410 | ) | (200,847 | ) | 415,343 | | ||||||||||||
Investment income (loss)
|
5 | | (738 | ) | | (733 | ) | |||||||||||||
Intercompany interest income
|
| 18,178 | | (18,178 | ) | | ||||||||||||||
Total revenues and other income
|
(38,081 | ) | (158,232 | ) | 879,518 | 397,165 | 1,080,370 | |||||||||||||
Costs and other deductions:
|
||||||||||||||||||||
Direct costs
|
| | 625,561 | | 625,561 | |||||||||||||||
General and administrative expenses
|
2,250 | 119 | 85,109 | (284 | ) | 87,194 | ||||||||||||||
Depreciation and amortization
|
| 871 | 197,280 | | 198,151 | |||||||||||||||
Depletion
|
| | 5,778 | | 5,778 | |||||||||||||||
Interest expense
|
| 69,021 | (2,048 | ) | | 66,973 | ||||||||||||||
Intercompany interest expense
|
| | 18,178 | (18,178 | ) | | ||||||||||||||
Losses (gains) on sales and retirements of long-lived assets and
other expense (income), net
|
(724 | ) | 1,151 | 8,696 | 284 | 9,407 | ||||||||||||||
Impairments and other charges
|
| | 123,099 | | 123,099 | |||||||||||||||
Total costs and other deductions
|
1,526 | 71,162 | 1,061,653 | (18,178 | ) | 1,116,163 | ||||||||||||||
Income (loss) from continuing operations before income taxes
|
(39,607 | ) | (229,394 | ) | (182,135 | ) | 415,343 | (35,793 | ) | |||||||||||
Income tax expense (benefit)
|
| (19,604 | ) | 15,374 | | (4,230 | ) | |||||||||||||
Income (loss) from continuing operations, net of tax
|
(39,607 | ) | (209,790 | ) | (197,509 | ) | 415,343 | (31,563 | ) | |||||||||||
Income (loss) from discontinued operations, net of tax
|
| | (7,591 | ) | | (7,591 | ) | |||||||||||||
Net income (loss)
|
(39,607 | ) | (209,790 | ) | (205,100 | ) | 415,343 | (39,154 | ) | |||||||||||
Less: Net (income) loss attributable to noncontrolling interest
|
| | (453 | ) | | (453 | ) | |||||||||||||
Net income (loss) attributable to Nabors
|
$ | (39,607 | ) | $ | (209,790 | ) | $ | (205,553 | ) | $ | 415,343 | $ | (39,607 | ) | ||||||
33
Nine Months Ended September 30, 2011 | ||||||||||||||||||||
Nabors |
Other |
|||||||||||||||||||
Nabors |
Delaware |
Subsidiaries |
||||||||||||||||||
(Parent/ |
(Issuer/ |
(Non- |
Consolidating |
Consolidated |
||||||||||||||||
Guarantor) | Guarantor) | Guarantors) | Adjustments | Total | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Revenues and other income:
|
||||||||||||||||||||
Operating revenues
|
$ | | $ | | $ | 4,360,975 | $ | | $ | 4,360,975 | ||||||||||
Earnings (losses) from unconsolidated affiliates
|
| | 59,304 | | 59,304 | |||||||||||||||
Earnings (losses) from consolidated affiliates
|
358,778 | 189,960 | 109,212 | (657,950 | ) | | ||||||||||||||
Investment income (loss)
|
4 | 68 | 11,984 | | 12,056 | |||||||||||||||
Intercompany interest income
|
| 52,704 | | (52,704 | ) | | ||||||||||||||
Total revenues and other income
|
358,782 | 242,732 | 4,541,475 | (710,654 | ) | 4,432,335 | ||||||||||||||
Costs and other deductions:
|
||||||||||||||||||||
Direct costs
|
| | 2,723,714 | | 2,723,714 | |||||||||||||||
General and administrative expenses
|
8,803 | 244 | 357,881 | (450 | ) | 366,478 | ||||||||||||||
Depreciation and amortization
|
| 2,614 | 684,234 | | 686,848 | |||||||||||||||
Depletion
|
| | 18,060 | | 18,060 | |||||||||||||||
Interest expense
|
| 211,063 | (15,493 | ) | | 195,570 | ||||||||||||||
Intercompany interest expense
|
| | 52,704 | (52,704 | ) | | ||||||||||||||
Losses (gains) on sales and retirements of long-lived assets and
other expense (income), net
|
450 | (1,382 | ) | (74 | ) | 450 | (556 | ) | ||||||||||||
Impairments and other charges
|
| | 98,072 | | 98,072 | |||||||||||||||
Total costs and other deductions
|
9,253 | 212,539 | 3,919,098 | (52,704 | ) | 4,088,186 | ||||||||||||||
Income (loss) from continuing operations before income taxes
|
349,529 | 30,193 | 622,377 | (657,950 | ) | 344,149 | ||||||||||||||
Income tax expense (benefit)
|
| (59,114 | ) | 166,335 | | 107,221 | ||||||||||||||
Subsidiary preferred stock dividend
|
| | 2,250 | | 2,250 | |||||||||||||||
Income (loss) from continuing operations, net of tax
|
349,529 | 89,307 | 453,792 | (657,950 | ) | 234,678 | ||||||||||||||
Income (loss) from discontinued operations, net of tax
|
| | 114,496 | | 114,496 | |||||||||||||||
Net income (loss)
|
349,529 | 89,307 | 568,288 | (657,950 | ) | 349,174 | ||||||||||||||
Less: Net (income) loss attributable to noncontrolling interest
|
| | 355 | | 355 | |||||||||||||||
Net income (loss) attributable to Nabors
|
$ | 349,529 | $ | 89,307 | $ | 568,643 | $ | (657,950 | ) | $ | 349,529 | |||||||||
34
Nine Months Ended September 30, 2010 | ||||||||||||||||||||
Nabors |
Other |
|||||||||||||||||||
Nabors |
Delaware |
Subsidiaries |
||||||||||||||||||
(Parent/ |
(Issuer/ |
(Non- |
Consolidating |
Consolidated |
||||||||||||||||
Guarantor) | Guarantor) | Guarantors) | Adjustments | Total | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Revenues and other income:
|
||||||||||||||||||||
Operating revenues
|
$ | | $ | | $ | 2,856,636 | $ | | $ | 2,856,636 | ||||||||||
Earnings (losses) from unconsolidated affiliates
|
| | 28,329 | | 28,329 | |||||||||||||||
Earnings (losses) from consolidated affiliates
|
35,930 | (104,135 | ) | (192,837 | ) | 261,042 | | |||||||||||||
Investment income (loss)
|
12 | | (988 | ) | | (976 | ) | |||||||||||||
Intercompany interest income
|
| 54,121 | | (54,121 | ) | | ||||||||||||||
Total revenues and other income
|
35,942 | (50,014 | ) | 2,691,140 | 206,921 | 2,883,989 | ||||||||||||||
Costs and other deductions:
|
||||||||||||||||||||
Direct costs
|
| | 1,648,289 | | 1,648,289 | |||||||||||||||
General and administrative expenses
|
6,033 | 298 | 237,182 | (556 | ) | 242,957 | ||||||||||||||
Depreciation and amortization
|
| 2,432 | 542,652 | | 545,084 | |||||||||||||||
Depletion
|
| | 15,646 | | 15,646 | |||||||||||||||
Interest expense
|
| 206,736 | (7,701 | ) | | 199,035 | ||||||||||||||
Intercompany interest expense
|
| | 54,121 | (54,121 | ) | | ||||||||||||||
Losses (gains) on sales and retirements of long-lived assets and
other expense (income), net
|
(14,305 | ) | 22,443 | 32,104 | 556 | 40,798 | ||||||||||||||
Impairments and other charges
|
| | 123,099 | | 123,099 | |||||||||||||||
Total costs and other deductions
|
(8,272 | ) | 231,909 | 2,645,392 | (54,121 | ) | 2,814,908 | |||||||||||||
Income (loss) from continuing operations before income taxes
|
44,214 | (281,923 | ) | 45,748 | 261,042 | 69,081 | ||||||||||||||
Income tax expense (benefit)
|
| (65,781 | ) | 78,935 | | 13,154 | ||||||||||||||
Income (loss) from continuing operations, net of tax
|
44,214 | (216,142 | ) | (33,187 | ) | 261,042 | 55,927 | |||||||||||||
Income (loss) from discontinued operations, net of tax
|
| | (12,921 | ) | | (12,921 | ) | |||||||||||||
Net income (loss)
|
44,214 | (216,142 | ) | (46,108 | ) | 261,042 | 43,006 | |||||||||||||
Less: Net (income) loss attributable to noncontrolling interest
|
| | 1,208 | | 1,208 | |||||||||||||||
Net income (loss) attributable to Nabors
|
$ | 44,214 | $ | (216,142 | ) | $ | (44,900 | ) | $ | 261,042 | $ | 44,214 | ||||||||
35
Nine Months Ended September 30, 2011 | ||||||||||||||||||||
Nabors |
Other |
|||||||||||||||||||
Nabors |
Delaware |
Subsidiaries |
||||||||||||||||||
(Parent/ |
(Issuer/ |
(Non- |
Consolidating |
Consolidated |
||||||||||||||||
Guarantor) | Guarantor) | Guarantors) | Adjustments | Total | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Net cash provided by (used for) operating activities
|
$ | 6,163 | $ | 227,747 | $ | 874,224 | $ | | $ | 1,108,134 | ||||||||||
Cash flows from investing activities:
|
||||||||||||||||||||
Purchases of investments
|
| | (9,567 | ) | | (9,567 | ) | |||||||||||||
Sales and maturities of investments
|
| | 24,580 | | 24,580 | |||||||||||||||
Cash paid for acquisition of business, net
|
| | (55,459 | ) | | (55,459 | ) | |||||||||||||
Investment in unconsolidated affiliates
|
| | (54,762 | ) | | (54,762 | ) | |||||||||||||
Distribution of proceeds from asset sales from unconsolidated
affiliates
|
| | 142,984 | | 142,984 | |||||||||||||||
Capital expenditures
|
| | (1,532,597 | ) | | (1,532,597 | ) | |||||||||||||
Proceeds from sales of assets and insurance claims
|
| | 110,535 | | 110,535 | |||||||||||||||
Cash paid for investments in consolidated affiliates
|
(25,450 | ) | (65,000 | ) | | 90,450 | | |||||||||||||
Net cash provided by (used for) investing activities
|
(25,450 | ) | (65,000 | ) | (1,374,286 | ) | 90,450 | (1,374,286 | ) | |||||||||||
Cash flows from financing activities:
|
||||||||||||||||||||
Increase (decrease) in cash overdrafts
|
| | 5,074 | | 5,074 | |||||||||||||||
Proceeds from issuance of long-term debt
|
| 697,578 | | | 697,578 | |||||||||||||||
Proceeds from issuance of common shares, net
|
12,175 | | | | 12,175 | |||||||||||||||
Proceeds from revolving credit facilities
|
| 1,250,000 | 50,000 | | 1,300,000 | |||||||||||||||
Debt issuance costs
|
| (6,065 | ) | | | (6,065 | ) | |||||||||||||
Reduction in long-term debt
|
| (1,404,245 | ) | (26 | ) | | (1,404,271 | ) | ||||||||||||
Reduction in revolving credit facilities
|
| (700,000 | ) | | | (700,000 | ) | |||||||||||||
Repurchase of equity component of convertible debt
|
| (12 | ) | | | (12 | ) | |||||||||||||
Purchase of restricted stock
|
(2,579 | ) | | | | (2,579 | ) | |||||||||||||
Tax benefit related to share-based awards
|
| (1 | ) | 186 | | 185 | ||||||||||||||
Proceeds from parent contributions
|
| | 90,450 | (90,450 | ) | | ||||||||||||||
Net cash (used for) provided by financing activities
|
9,596 | (162,745 | ) | 145,684 | (90,450 | ) | (97,915 | ) | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents
|
| | (2,174 | ) | | (2,174 | ) | |||||||||||||
Net (decrease) increase in cash and cash equivalents
|
(9,691 | ) | 2 | (356,552 | ) | | (366,241 | ) | ||||||||||||
Cash and cash equivalents, beginning of period
|
10,847 | 20 | 630,835 | | 641,702 | |||||||||||||||
Cash and cash equivalents, end of period
|
$ | 1,156 | $ | 22 | $ | 274,283 | $ | | $ | 275,461 | ||||||||||
36
Nine Months Ended September 30, 2010 | ||||||||||||||||||||
Nabors |
Other |
|||||||||||||||||||
Nabors |
Delaware |
Subsidiaries |
||||||||||||||||||
(Parent/ |
(Issuer/ |
(Non- |
Consolidating |
Consolidated |
||||||||||||||||
Guarantor) | Guarantor) | Guarantors) | Adjustments | Total | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Net cash provided by (used for) operating activities
|
$ | 87,995 | $ | 325,427 | $ | 268,712 | $ | | $ | 682,134 | ||||||||||
Cash flows from investing activities:
|
||||||||||||||||||||
Purchases of investments
|
| | (27,695 | ) | | (27,695 | ) | |||||||||||||
Sales and maturities of investments
|
| | 32,103 | | 32,103 | |||||||||||||||
Cash paid for acquisition of business, net
|
| | (680,230 | ) | | (680,230 | ) | |||||||||||||
Investment in unconsolidated affiliates
|
| | (40,936 | ) | | (40,936 | ) | |||||||||||||
Capital expenditures
|
| | (640,953 | ) | | (640,953 | ) | |||||||||||||
Proceeds from sales of assets and insurance claims
|
| | 26,084 | | 26,084 | |||||||||||||||
Cash paid for investments in consolidated affiliates
|
(99,300 | ) | (732,000 | ) | | 831,300 | | |||||||||||||
Net cash provided by (used for) investing activities
|
(99,300 | ) | (732,000 | ) | (1,331,627 | ) | 831,300 | (1,331,627 | ) | |||||||||||
Cash flows from financing activities:
|
||||||||||||||||||||
Increase (decrease) in cash overdrafts
|
| | (4,649 | ) | | (4,649 | ) | |||||||||||||
Proceeds from issuance of long-term debt
|
| 691,281 | | | 691,281 | |||||||||||||||
Proceeds from issuance of common shares, net
|
5,391 | | | | 5,391 | |||||||||||||||
Proceeds from revolving credit facilities
|
| 600,000 | | | 600,000 | |||||||||||||||
Debt issuance costs
|
| (7,144 | ) | | | (7,144 | ) | |||||||||||||
Reduction in long-term debt
|
| (274,095 | ) | (40,258 | ) | | (314,353 | ) | ||||||||||||
Reduction in revolving credit facilities
|
| (600,000 | ) | | | (600,000 | ) | |||||||||||||
Repurchase of equity component of convertible debt
|
| (4,712 | ) | | | (4,712 | ) | |||||||||||||
Settlement of call options and warrants, net
|
| 1,134 | | | 1,134 | |||||||||||||||
Purchase of restricted stock
|
(1,904 | ) | | | | (1,904 | ) | |||||||||||||
Tax benefit related to share-based awards
|
| | (38 | ) | | (38 | ) | |||||||||||||
Proceeds from parent contributions
|
| | 831,300 | (831,300 | ) | | ||||||||||||||
Net cash (used for) provided by financing activities
|
3,487 | 406,464 | 786,355 | (831,300 | ) | 365,006 | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents
|
| | (3,645 | ) | | (3,645 | ) | |||||||||||||
Net (decrease) increase in cash and cash equivalents
|
(7,818 | ) | (109 | ) | (280,205 | ) | | (288,132 | ) | |||||||||||
Cash and cash equivalents, beginning of period
|
11,702 | 135 | 915,978 | | 927,815 | |||||||||||||||
Cash and cash equivalents, end of period
|
$ | 3,884 | $ | 26 | $ | 635,773 | $ | | $ | 639,683 | ||||||||||
37
Note 14 | Subsequent Event |
38
39
Item 2. | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
| fluctuations in worldwide prices of and demand for natural gas and oil; | |
| fluctuations in levels of natural gas and oil exploration and development activities; | |
| fluctuations in the demand for our services; | |
| the existence of competitors, technological changes and developments in the oilfield services industry; | |
| the existence of operating risks inherent in the oilfield services industry; | |
| the possibility of changes in tax and other laws and regulations; | |
| the possibility of political instability, war or acts of terrorism in any of the countries where we operate; and | |
| general economic conditions including the capital and credit markets. |
40
41
| An increase in drilling in oil- and liquids-rich areas incremental to traditional dry gas regions by our U.S. Lower 48 Land and Canada Drilling and Well-servicing operations, | |
| An expected incremental increase from ancillary well-site services, primarily technical pumping services and down-hole surveying services, resulting from our Pressure Pumping operating segment for the new line of business acquired in the third quarter of 2010, and | |
| The anticipated positive impact on our overall level of drilling and well-servicing activity and margins resulting from the new and upgraded rigs and equipment added to our fleet over the past five years, which we expect will enhance our competitive position as market conditions improve. |
42
Three Months |
Nine Months |
|||||||||||||||||||||||||||||||
Ended September 30, |
Increase/ |
Ended September 30, |
Increase/ |
|||||||||||||||||||||||||||||
2011 | 2010 | (Decrease) | 2011 | 2010 | (Decrease) | |||||||||||||||||||||||||||
(In thousands, except percentages and rig activity) | ||||||||||||||||||||||||||||||||
Reportable segments:
|
||||||||||||||||||||||||||||||||
Operating revenues and Earnings (losses) from unconsolidated
affiliates from continuing operations:(1)
|
||||||||||||||||||||||||||||||||
Contract Drilling:(2)
|
||||||||||||||||||||||||||||||||
U.S. Lower 48 Land Drilling
|
$ | 430,895 | $ | 350,348 | $ | 80,547 | 23 | % | $ | 1,214,447 | $ | 925,262 | $ | 289,185 | 31 | % | ||||||||||||||||
U.S. Land Well-servicing
|
189,356 | 119,127 | 70,229 | 59 | % | 503,752 | 321,978 | 181,774 | 56 | % | ||||||||||||||||||||||
U.S. Offshore
|
46,069 | 26,504 | 19,565 | 74 | % | 116,807 | 103,680 | 13,127 | 13 | % | ||||||||||||||||||||||
Alaska
|
27,027 | 45,920 | (18,893 | ) | (41 | )% | 100,678 | 139,099 | (38,421 | ) | (28 | )% | ||||||||||||||||||||
Canada
|
145,587 | 85,728 | 59,859 | 70 | % | 406,004 | 262,043 | 143,961 | 55 | % | ||||||||||||||||||||||
International
|
281,686 | 288,535 | (6,849 | ) | (2 | )% | 809,394 | 800,886 | 8,508 | 1 | % | |||||||||||||||||||||
Subtotal Contract Drilling(3)
|
1,120,620 | 916,162 | 204,458 | 22 | % | 3,151,082 | 2,552,948 | 598,134 | 23 | % | ||||||||||||||||||||||
Pressure Pumping(4)
|
343,723 | 61,611 | 282,112 | 458 | % | 867,512 | 61,611 | 805,901 | n/m(11 | ) | ||||||||||||||||||||||
Oil and Gas(5)
|
43,104 | 11,280 | 31,824 | 282 | % | 74,987 | 31,682 | 43,305 | 137 | % | ||||||||||||||||||||||
Other Operating Segments(6)(7)
|
199,604 | 130,392 | 69,212 | 53 | % | 483,478 | 333,654 | 149,824 | 45 | % | ||||||||||||||||||||||
Other reconciling items(8)
|