Nabors Industries Ltd. (NYSE:NBR) Q4 2019 Earnings Conference Call - Final Transcript

Feb 21, 2020 • 11:00 am ET

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Nabors Industries Ltd. (NYSE:NBR) Q4 2019 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

We will now begin the question-and-answer session. [Operator Instructions]. And our first question comes from Waqar Syed of AltaCorp Capital. Please go ahead.

Analyst
Waqar Syed

Thank you for taking my call. First of all, Denny, I want to join Tony and William in thanking you for your service to the industry and to your friendship for over the last 20 years. You've really enlightened me, I've learned a lot from you, and I believe that a generation of sell-side analysts have learned from you about the industry. So thank you again. Thank you for your service, and congratulations on your retirement, I hope you're able to take some rest now. Thank you.

Executive
Dennis A. Smith

Thank you, Waqar.

Analyst
Waqar Syed

My question, first of all, Tony, just a clarification, you mentioned that in your rig survey, your customers, half of them said that maybe activity could be flattish. Is it flattish to -- from current levels, is that what you said?

Executive
Anthony G. Petrello

From current levels, yes.

Analyst
Waqar Syed

Okay. I just wanted to clarify that. Secondly, on the capex for 2020. Could you provide some breakdown on how that would shake out between maintenance and growth and maybe the -- domestic versus international, and also what would be the -- how much of that would be within SANAD?

Executive
Anthony G. Petrello

Sure. I think about -- roughly about $250 million or so range would be sustaining and the rest growth, and I'd say of the growth capital, most of it would be international, some in NDS and some in Rig Tech. It does not assume a lot for SANAD. I'll let William speak to that.

Executive
William Restrepo

Well, of the $250 million that Tony mentioned, really the sustaining capex, which is really ongoing is about $200 million and there is another $40 million or so that comes from renewals of international contracts which vary from year to year, how many of those renewals we have. But we are forecasting about $40 million for next year. And SANAD -- it does have a big piece, which is a facility and which is about $40 million. But outside that, we're still not deploying any of the new builds in Saudi Arabia.

So the levels there are not much higher than elsewhere.

Analyst
Waqar Syed

And when do you expect to start investing into the new builds?

Executive
William Restrepo

Well, it all depends on when NOV is ready, I mean we haven't really gotten a good fix on that, but I don't -- wouldn't expect to start investing in 2020 and no deployments be for the end of 2021, I don't believe at this point.

Analyst
Waqar Syed

Okay. And then just one last question, what is the -- what was the cash in the balance sheet of SANAD at the end of the quarter?

Executive
William Restrepo

It's somewhere around $270 million, $280 million somewhere in that range.

Analyst
Waqar Syed

Okay, great. Thank you. That's all from me. Thank you.

Executive
William Restrepo

Thanks Waqar.

Operator
Operator

Our next question comes from Chris Voie of Wells Fargo. Please go ahead.

Analyst
Christopher F Voie

Good morning. Thanks. I just wanted to check, I think the commentary on NDS was that