Nabors Industries Ltd. (NYSE:NBR) Q4 2015 Earnings Conference Call - Final Transcript

Feb 17, 2016 • 11:00 am ET


Nabors Industries Ltd. (NYSE:NBR) Q4 2015 Earnings Conference Call - Final Transcript


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Good morning and welcome to the Nabors Fourth Quarter 2015 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Dennis Smith. Please go ahead.

Dennis A. Smith

Good morning, everyone, and thank you for joining Nabors earnings teleconference to review our fourth quarter results and full year.

Today we will follow our customary format with Chairman, President and Chief Executive Officer, Tony Petrello; and William Restrepo, our Chief Financial Officer, providing our perspectives on the results along with some insight into what we are seeing in our markets and how we expect Nabors to perform in these markets.

In support of these remarks, we have posted some slides to our website which you can access to follow along with the presentation if you desire. They are accessible in two ways. One, if you're participating by webcast, they are available as a download within the webcast. Alternatively, you can download the slides from within the Investor Relations section of our website, under the Events Calendar submenu, where you will find them listed in Supporting Materials under the conference call listing. Instructions for the replay are posted on the website.

With us today, in addition to Tony, myself and William, are Laura Doerre, our General Counsel; Siggi Meissner, our Head of Global Drilling operations; and Chris Papouras, President of Nabors Drilling Solutions.

Since much of the commentary today will concern our expectation of the future, they may constitute forward-looking statements within the meaning of the Securities and Exchange Act of 1933 and the Securities Exchange Act of 1934. Such forward-looking statements are subject to certain risk 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, our actual results may differ materially from those indicated or implied by such forward-looking statements.

Also, during the call, we may discuss certain non-GAAP financial measures such as EBITDA, adjusted EBITDA, operating income/loss, and free cash flow. We have posted to the Investor Relations section of our website at a reconciliation of these non-GAAP financial measures to the most recently comparable GAAP measures.

Now, let me turn the call over to Tony to begin.

Anthony G. Petrello

Good morning, everyone. Welcome to the call. We appreciate your participation as we review our results for the fourth quarter and full year of 2015. As Denny mentioned, we have posted the accompanying presentation slides on our website. I will first begin with a brief summary and then comment on our performance. William will follow with a review of the quarter's financials. I will then wrap up and take some questions.

Fourth quarter was marked by the steady decline in oil prices, beginning in November. The downward trajectory, which has continued, has caused nearly all of our global customers to curtail their spending plans. We saw