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Nabors announces 1Q 2014 EPS of $0.16 per Share

April 22, 2014

HAMILTON, Bermuda, April 22, 2014 /PRNewswire/ — Nabors Industries Ltd. (NYSE:NBR) today reported its financial results for the first quarter of 2014. Adjusted income derived from operating activities was $109.0 million, compared to $143.1 million in the first quarter of 2013 and $159.6 million in the fourth quarter of 2013. Operating cash flow (EBITDA) was $391.2 million for the first quarter, compared to $412.5 million and $437.2 million, respectively, in the first and fourth quarters of last year. Net income from continuing operations was $49.0 million ($0.16 per diluted share), compared to $92.2 million ($0.31 per diluted share) in the first quarter of 2013 and $128.5 million ($0.42 per diluted share) in the fourth quarter of 2013. Operating revenues and earnings from unconsolidated affiliates for this quarter totaled $1.59 billion, compared to $1.54 billion in the comparable quarter of the prior year and $1.61 billion in the fourth quarter of 2013.

Tony Petrello, Nabors’ Chairman, President & CEO, commented, “As expected, weather-induced interruptions in our Completion Services segment overshadowed what was otherwise relatively good performance by our various drilling operations. Seasonal increases in Canada and Alaska, along with higher third-party sales in Canrig, partially offset the sharp reduction in Completion results. Operating income for our international and U.S. Lower 48 operations decreased slightly below the strong fourth quarter level, but was better than expected on higher rig years. Notable developments during the quarter include securing four additional term contracts for new PACE-X(®) rigs and emerging indications of strengthening market fundamentals in virtually all of our business segments.”

Drilling & Rig Services

Operating income in the Drilling & Rig Services business line was essentially flat sequentially at $155.5 million, while operating cash flow was slightly higher at $382.2 million. The quarter’s results reflect higher seasonal contributions from Canada and Alaska, offset by lower results in U.S. Lower 48 land and International drilling operations.

International results were better than anticipated, although lower sequentially. The decrease is attributable to previously disclosed items related to unusual rig moving costs and the anticipated time between contracts for certain high-margin rig operations, including the dry-docking of the Company’s large Arabian Gulf jackup. Second quarter results are expected to be in line with the first quarter, followed by progressively improving results starting in the third quarter. Contributions from the 21 new and upgraded rigs deploying through early 2015, the return to operations of the aforementioned rigs between contracts and the commencement of rate increases associated with several contract renewals will drive these improvements, all of which should develop fully by the middle of next year.

In North America, U.S. Drilling results improved slightly sequentially after adjusting for the $4.7 million early termination revenue received in the fourth quarter. Seasonally higher results in Alaska more than offset higher costs in the Lower 48, primarily attributable to first-quarter payroll taxes. The outlook for U.S. Drilling is increasingly positive in all regions of this segment. Activity in Alaska is expected to be less seasonal going forward, as the recently improved tax environment is leading to more rigs operating on a year-round basis. Deployment of a new large deepwater platform drilling rig should lead to significantly improved results in the Gulf of Mexico offshore operation, commencing in the fourth quarter. In the Lower 48 land operation, market activity and pricing appear to be strengthening, as higher than expected customer cash flows and moderating rig productivity are translating into incremental rig demand. This increasing demand is reflected in today’s rig count of 199, which represents a 30-rig increase since the beginning of the fourth quarter, including eight which were previously receiving standby revenue but not working. Spot-market price increases now appear to be accelerating in selected areas. Canada posted seasonally-high quarterly results that were modestly below those of the same quarter last year. Although activity increased by four rigs, the average margin was lower due the mix shift to shallower rigs and a more competitive environment.

Rig Services’ operating income was $8.7 million, representing a sizable improvement over last quarter’s loss of $2.2 million. Essentially all of the improvement is attributable to Canrig, whose steadily increasing backlog is now the highest it has been in several years.

Completion & Production Services

The Completion & Production Services business line recorded an operating loss of $3.0 million, with operating cash flow of $53.4 million. The conclusion of a long-term contract and protracted downtime resulting from the series of winter storms that characterized the first quarter both contributed to these weak results. The weather impact was concentrated in Completion Services, which posted a $34 million loss, while Production Services saw only minimal effects. Weather aside, both elements of this business are seeing emerging evidence of improving market fundamentals. Similar to the Drilling & Rig Services business line, higher customer cash flows and moderating productivity are resulting in increased utilization, which should in turn exert upward pressure on pricing.

Production Services benefited from seasonally high activity in Canada, coupled with a modest sequential increase in both trucking and rig hours at flat rates. Second-quarter results are likely to be similar with the seasonal falloff in Canada, but should be followed by improving results. Demand for truck and rig services appears to be increasing. As a result, the Company anticipates higher pricing in light of the relatively high industry utilization and the diminishing supply of viable inventory that can be reactivated to meet the increased capacity requirements.

Completion Services results reflect not only the weather delays experienced across the Rocky Mountain, Bakken and Appalachia operations, but also the expiration of a significant long-term contract for two spreads in late fourth quarter. The weather in the northern regions has abated and first-quarter exit rates indicate a restoration of profitability in the second quarter. Industry fundamentals appear to be strengthening, evidenced by the emergence of higher underlying industry utilization in the fourth and first quarters. This increase in activity, in the face of moderating frac crew productivity, is leading to higher industry utilization and correspondingly higher maintenance expenditures. These factors are, in turn, exerting upward pressure on pricing. The first quarter’s operational interruptions and producers’ ensuing difficulty in meeting oil and gas production targets appear to be generating significant pent-up demand in the northern regions. Coupled with the increased demand associated with the rapid conversion to horizontal completions in West Texas, this may be a catalyst for improving industry returns.

Summary and Outlook

Petrello concluded, “Notwithstanding the weak performance of our Completion Services operations in the first quarter and the dampening impact the Canadian breakup usually exerts on our second quarter, I am increasingly confident in the near and intermediate-term outlook for all of our segments. My confidence is driven by the prospects for improvement in rates and utilization across most of our operations and the progress we are making on our numerous business improvement initiatives. Our PACE-X(®) rigs are deploying at a steady rate and continue to attract customer interest, while our multiple international deployments continue on schedule and on budget.”

About Nabors

The Nabors companies own and operate approximately 493 land drilling rigs throughout the world and approximately 543 land workover and well servicing rigs in North America. Nabors’ actively marketed offshore fleet consists of 39 platform rigs, 7 jackup units and 4 barge rigs in the United States and multiple international markets. In addition, Nabors is one of the largest providers of hydraulic fracturing, cementing, nitrogen and acid pressure pumping services with approximately 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.

The information above includes forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. Such forward-looking statements are subject to certain risks and uncertainties, as disclosed by Nabors from time to time in its filings with the Securities and Exchange Commission. As a result of these factors, Nabors’ actual results may differ materially from those indicated or implied by such forward-looking statements. The projections contained in this release reflect management’s estimates as of the date of the release. Nabors does not undertake to update these forward-looking statements.

The Company will host a conference call to review the quarterly results and forward business outlook tomorrow, Wednesday April 23, 2014, at 10:00 a.m. central time. Interested parties can access the call and supporting slides through a link provided on the www.nabors.com home page.

MEDIA CONTACT:

Dennis A. Smith, Director of Corporate Development & Investor Relations, +1 281-775-8038

To request investor materials, contact Nabors’ corporate headquarters in Hamilton, Bermuda at +441-292-1510 or via e-mail at mark.andrews@nabors.com

                                NABORS INDUSTRIES LTD. AND SUBSIDIARIES

                               CONSOLIDATED STATEMENTS OF INCOME (LOSS)

                                              (Unaudited)

                          Three Months Ended
                          ------------------

                            March 31,                       December 31,
                            ---------                       ------------

    (In thousands,
     except per
     share amounts)                       2014                             2013        2013
                                          ----                             ----        ----

    Revenues and
     other income:

       Operating
        revenues                    $1,589,618                       $1,535,478  $1,606,978

       Earnings
        (losses) from
        unconsolidated
        affiliates                      (2,445)                           2,895      (1,588)

       Investment
        income (loss)                      980                           79,421       1,106

          Total revenues
           and other
           income                    1,588,153                        1,617,794   1,606,496
                                     ---------                        ---------   ---------

    Costs and other
     deductions:

       Direct costs                  1,061,739                          994,992   1,032,841

       General and
        administrative
        expenses                       134,266                          130,878     135,307

       Depreciation and
        amortization                   282,127                          269,365     277,658

       Interest expense                 44,810                           60,011      47,075

       Losses (gains)
        on sales and
        disposals of
        long-lived
        assets and
        other expense
        (income), net                                                                10,732

                                         1,476                           59,737
                                         -----                           ------

          Total costs and
           other
           deductions                1,524,418                        1,514,983   1,503,613
                                     ---------                        ---------   ---------

    Income (loss)
     from continuing
     operations
     before income
     taxes                              63,735                          102,811     102,883
                                        ------                          -------     -------

    Income tax
     expense
     (benefit)                          14,008                            9,854     (26,383)

    Subsidiary
     preferred stock
     dividend                              750                              750         750
                                           ---                              ---         ---

    Income (loss)
     from continuing
     operations, net
     of tax                             48,977                           92,207     128,516

    Income (loss)
     from
     discontinued
     operations, net
     of tax                              1,515                            7,011      23,113
                                         -----                            -----      ------

    Net income
     (loss)                             50,492                           99,218     151,629

         Less: Net
          (income) loss
          attributable to
          noncontrolling
          interest                        (573)                             (97)     (1,026)

    Net income
     (loss)
     attributable to
     Nabors                            $49,919                          $99,121    $150,603
                                       -------                          -------    --------

    Earnings
     (losses) per
     share: (1)

       Basic from
        continuing
        operations                        $.16                             $.31        $.43

       Basic from
        discontinued
        operations                         .01                              .03         .07
                                           ---                              ---         ---

       Basic                              $.17                             $.34        $.50

       Diluted from
        continuing
        operations                        $.16                             $.31        $.42

       Diluted from
        discontinued
        operations                           -                              .02         .08
                                           ---                              ---         ---

       Diluted                            $.16                             $.33        $.50

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

       Basic                           296,210                          291,687     295,218
                                       -------                          -------     -------

       Diluted                         299,050                          294,170     297,746
                                       -------                          -------     -------

    Adjusted EBITDA
     (2)                              $391,168                         $412,503    $437,242
                                      ========                         ========    ========

    Adjusted income
     (loss) derived
     from operating
     activities (3)                   $109,041                         $143,138    $159,584
                                      ========                         ========    ========


    (1)       See "Computation of Earnings
              (Losses) Per Share" included
              herein as a separate schedule.

    (2)       Adjusted EBITDA is computed by
              subtracting the sum of direct
              costs and general and
              administrative expenses from
              the sum of Operating revenues
              and Earnings (losses) from
              unconsolidated affiliates.
              There are limitations inherent
              in using adjusted EBITDA as a
              measure of overall
              profitability because it
              excludes significant expense
              items. However, management
              evaluates the performance of
              our business units and the
              consolidated company based on
              several criteria, including
              adjusted EBITDA and adjusted
              income (loss) derived from
              operating activities, because
              we believe that these financial
              measures accurately reflect our
              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".

    (3)       Adjusted income (loss) derived
              from operating activities is
              computed by subtracting the sum
              of direct costs, general and
              administrative expenses and
              depreciation and amortization
              from the sum of Operating
              revenues and Earnings (losses)
              from unconsolidated affiliates.
              These amounts should not be
              used as a substitute for those
              amounts reported in accordance
              with GAAP. However, management
              evaluates the performance of
              our business units and the
              consolidated company based on
              several criteria, including
              adjusted income (loss) derived
              from operating activities,
              because it believes that these
              financial measures accurately
              reflect our ongoing
              profitability.  A
              reconciliation of this non-
              GAAP measure to income (loss)
              from continuing operations
              before income taxes, which is a
              GAAP measure, is provided in
              the table set forth immediately
              following the heading
              "Reconciliation of Non-GAAP
              Financial Measures to Income
              (loss) from Continuing
              Operations before Income
              Taxes".

                      NABORS INDUSTRIES LTD. AND SUBSIDIARIES

                       CONDENSED CONSOLIDATED BALANCE SHEETS

                                (Unaudited)

                                 March 31,                    December 31,

    (In
     thousands,
     except
     ratios)                                     2014                            2013
                                                 ----                            ----

    ASSETS

     Current
     assets:

    Cash
     and
     short-
     term
     investments                             $424,767                        $507,133

     Accounts
     receivable,
     net                                    1,454,368                       1,399,543

     Assets
     held
     for
     sale                                     231,880                         243,264

     Other
     current
     assets                                   580,253                         603,890
                                              -------                         -------

          Total
          current
          assets                            2,691,268                       2,753,830

     Long-
     term
     investments
     and
     other
     receivables                                2,915                           3,236

     Property,
     plant
     and
     equipment,
     net                                    8,690,759                       8,597,813

    Goodwill                                  512,391                         512,964

     Investment
     in
     unconsolidated
     affiliates                                63,069                          64,260

     Other
     long-
     term
     assets                                   226,671                         227,708

          Total
          assets                          $12,187,073                     $12,159,811
                                          ===========                     ===========

     LIABILITIES
     AND
     EQUITY

     Current
     liabilities:

     Current
     debt                                      $5,296                         $10,185

     Other
     current
     liabilities                            1,232,846                       1,301,239
                                            ---------                       ---------

          Total
          current
          liabilities                       1,238,142                       1,311,424

     Long-
     term
     debt                                   3,812,476                       3,904,117

     Other
     long-
     term
     liabilities                            1,095,998                         893,905
                                            ---------                         -------

          Total
          liabilities                       6,146,616                       6,109,446

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

    Equity:

     Shareholders'
     equity                                 5,960,469                       5,969,086

     Noncontrolling
     interest                                  10,800                          12,091
                                               ------                          ------

          Total
          equity                            5,971,269                       5,981,177

          Total
          liabilities
          and
          equity                          $12,187,073                     $12,159,811
                                          ===========                     ===========


    (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
                                          ------------------

                                              March 31,                     December 31,
                                              ---------                     ------------

    (In thousands,
     except rig
     activity)                                             2014                           2013        2013
                                                           ----                           ----        ----

    Reportable
     segments:

    Operating
     revenues and
     Earnings
     (losses) from
     unconsolidated
     affiliates:

        Drilling and Rig
         Services:

          U.S.                                         $510,476                       $484,773    $471,027

          Canada                                        111,621                        126,867      88,623

          International                                 375,069                        321,516     407,615

          Rig Services (1)                              143,726                        134,231     132,502
                                                        -------                        -------     -------

           Subtotal
            Drilling and
            Rig Services
            (2)                                       1,140,892                      1,067,387   1,099,767

        Completion and
         Production
         Services:

          Completion
           Services                                     227,899                        262,138     292,039

          Production
           Services                                     275,400                        251,571     266,235
                                                        -------                        -------     -------

           Subtotal
            Completion and
            Production
            Services (3)                                503,299                        513,709     558,274

        Other
         reconciling
         items (4)                                      (57,018)                       (42,723)    (52,651)
                                                        -------                        -------     -------

          Total operating
           revenues and
           earnings
           (losses) from
           unconsolidated
           affiliates                                $1,587,173                     $1,538,373  $1,605,390
                                                     ==========                     ==========  ==========

    Adjusted EBITDA:
     (5)

        Drilling and Rig
         Services:

          U.S.                                         $187,637                       $184,859    $187,426

          Canada                                         40,119                         45,531      29,159

          International                                 137,991                        106,514     157,720

          Rig Services (1)                               16,491                          9,334       5,937
                                                         ------                          -----       -----

           Subtotal
            Drilling and
            Rig Services
            (2)                                         382,238                        346,238     380,242

        Completion and
         Production
         Services:

          Completion
           Services                                      (6,654)                        46,724      40,851

          Production
           Services                                      60,056                         51,118      55,574
                                                         ------                         ------      ------

           Subtotal
            Completion and
            Production
            Services (3)                                 53,402                         97,842      96,425

        Other
         reconciling
         items (6)                                      (44,472)                       (31,577)    (39,425)
                                                        -------                        -------     -------

          Total adjusted
           EBITDA                                      $391,168                       $412,503    $437,242
                                                       ========                       ========    ========

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

        Drilling and Rig
         Services:

          U.S.                                          $72,494                        $77,595     $75,378

          Canada                                         26,160                         30,518      14,536

          International                                  48,119                         21,469      69,612

          Rig Services (1)                                8,728                          1,287      (2,179)
                                                          -----                          -----      ------

           Subtotal
            Drilling and
            Rig Services
            (2)                                         155,501                        130,869     157,347

        Completion and
         Production
         Services:

          Completion
           Services                                     (33,635)                        17,756      14,072

          Production
           Services                                      30,591                         26,014      26,736
                                                         ------                         ------      ------

           Subtotal
            Completion and
            Production
            Services (3)                                 (3,044)                        43,770      40,808

        Other
         reconciling
         items (6)                                      (43,416)                       (31,501)    (38,571)
                                                        -------                        -------     -------

       Total adjusted
        income (loss)
        derived from
        operating
        activities                                     $109,041                       $143,138    $159,584
                                                       ========                       ========    ========

    Rig activity:

    Rig years: (8)

       U.S.                                               206.6                          189.6       198.4

       Canada                                              43.8                           40.0        32.5

       International
        (9)                                               129.8                          122.7       124.6

          Total rig years                                 380.2                          352.3       355.5
                                                          =====                          =====       =====

    Rig hours: (10)

       U.S. Production
        Services                                        209,982                        212,298     205,456

       Canada
        Production
        Services                                         41,540                         48,027      36,455

          Total rig hours                               251,522                        260,325     241,911
                                                        =======                        =======     =======


          (1)   Includes our drilling technology
                and top drive manufacturing,
                directional drilling, rig
                instrumentation and software
                services. These services
                represent our other companies
                that are not aggregated into a
                reportable operating segment.

          (2)   Includes earnings (losses), net
                from unconsolidated affiliates,
                accounted for using the equity
                method, of ($2.5) million, $2.8
                million and ($1.4) million for
                the three months ended March
                31, 2014 and 2013 and December
                31, 2013, respectively.

          (3)   Includes earnings (losses), net
                from unconsolidated affiliates,
                accounted for using the equity
                method, of $.1 million, $.1
                million and ($.2) million for
                the three months ended March
                31, 2014 and 2013 and December
                31, 2013, respectively.

          (4)   Represents the elimination of
                inter-segment transactions.

          (5)   Adjusted EBITDA is computed by
                subtracting the sum of direct
                costs and general and
                administrative expenses from
                the sum of Operating revenues
                and Earnings (losses) from
                unconsolidated affiliates.
                There are limitations inherent
                in using adjusted EBITDA as a
                measure of overall
                profitability because it
                excludes significant expense
                items. However, management
                evaluates the performance of
                our business units and the
                consolidated company based on
                several criteria, including
                adjusted EBITDA and adjusted
                income (loss) derived from
                operating activities, because
                we believe that these financial
                measures accurately reflect our
                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.

          (7)   Adjusted income (loss) derived
                from operating activities is
                computed by subtracting the sum
                of direct costs, general and
                administrative expenses and
                depreciation and amortization
                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 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".

          (8)   Excludes well-servicing rigs,
                which are measured in rig
                hours.  Includes our equivalent
                percentage ownership of rigs
                owned by unconsolidated
                affiliates.  Rig years
                represent a measure of the
                number of equivalent rigs
                operating during a given
                period.  For example, one rig
                operating 182.5 days during a
                365-day period represents 0.5
                rig years.

          (9)   International rig years includes
                our equivalent percentage
                ownership of rigs owned by
                unconsolidated affiliates,
                which totaled 2.5 years during
                each of the three months ended
                March 31, 2014 and 2013 and
                December 31, 2013.

         (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
                                                                                                   ------------------

                                                                                                      March 31,           December 31,
                                                                                                      ---------           ------------

    (In thousands)                                                                                               2014                2013      2013
                                                                                                                 ----                ----      ----

    Adjusted EBITDA                                                                                          $391,168            $412,503  $437,242

    Less: Depreciation and amortization                                                                       282,127             269,365   277,658

    Adjusted income (loss) derived from operating activities                                                  109,041             143,138   159,584
                                                                                                              -------             -------   -------

    Interest expense                                                                                          (44,810)            (60,011)  (47,075)

    Investment income (loss)                                                                                      980              79,421     1,106

    Gains (losses) on sales and disposals of long-lived assets and other income (expense), net                 (1,476)                      (10,732)

                                                                                                                                  (59,737)
                                                                                                                                  -------

    Income (loss) from continuing operations before income taxes                                              $63,735            $102,811  $102,883
                                                                                                              =======            ========  ========

                                            NABORS INDUSTRIES LTD. AND SUBSIDIARIES

                                          COMPUTATION OF EARNINGS (LOSSES) PER SHARE

                                                          (Unaudited)

    A reconciliation of the numerators and denominators of the basic and diluted earnings
     (losses) per share computations is as follows:

                                        Three Months Ended
                                        ------------------

                                            March 31,               December 31,
                                            ---------               ------------

    (In thousands,
     except per share
     amounts)                                         2014                     2013           2013
                                                      ----                     ----           ----

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

    Income (loss)
     from continuing
     operations, net
     of tax                                        $48,977                  $92,207       $128,516

       Less: net
        (income) loss
        attributable to
        noncontrolling
        interest                                      (573)                     (97)        (1,026)

       Less: earnings
        allocated to
        unvested
        shareholders                                  (733)                    (814)        (1,948)
                                                      ----                     ----         ------

    Adjusted income
     (loss) from
     continuing
     operations -
     basic and
     diluted                                       $47,671                  $91,296       $125,542

    Income (loss)
     from
     discontinued
     operations, net
     of tax                                          1,515                    7,011         23,113

                                                   $49,186                  $98,307       $148,655
                                                   -------                  -------       --------

       Earnings (losses)
        per share:

         Basic from
          continuing
          operations                                  $.16                     $.31           $.43

         Basic from
          discontinued
          operations                                   .01                      .03            .07

    Total Basic                                       $.17                     $.34           $.50
                                                      ----                     ----           ----

         Diluted from
          continuing
          operations                                  $.16                     $.31           $.42

         Diluted from
          discontinued
          operations                                     -                      .02            .08

    Total Diluted                                     $.16                     $.33           $.50
                                                      ----                     ----           ----

    Shares
     (denominator):

       Weighted-average
        number of shares
        outstanding-
        basic                                      296,210                  291,687        295,218

        Net effect of
         dilutive stock
         options,
         warrants and
         restricted stock
         awards based on
         the if-
         converted method                                                                    2,528

                                                     2,840                    2,483
                                                     -----                    -----

       Weighted-average
        number of shares
        outstanding -
        diluted                                    299,050                  294,170        297,746
                                                   -------                  -------        -------

    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 7,853,509 and
     12,452,263 shares during
     the three months ended
     March 31, 2014 and 2013,
     respectively; and
     10,908,160 shares during
     the three months ended
     December 31, 2013. 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.


Source: PR Newswire



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