Nabors Industries Ltd. (NYSE:NBR) Q4 2019 Earnings Conference Call - Final Transcript
Feb 21, 2020 • 11:00 am ET
Good morning, and welcome to the Nabors' Fourth Quarter Earnings Release Conference Call. [Operator Instructions]. After today's presentation, there will be an opportunity to ask questions. [Operator Instructions]. I would now like to turn the conference over to Denny Smith, Senior Vice President of Corporate Development. Please go ahead.
Dennis A. Smith
Good morning, everyone. Thank you for joining Nabors' Fourth Quarter and Full Year 2019 Earnings Conference Call. Today, we will follow our customary format, with Tony Petrello, our Chairman, President and Chief Executive Officer; and William Restrepo, our Chief Financial Officer, providing their perspectives on the quarter's results along with insights into our markets and how we expect Nabors to perform in these markets.
In support of these remarks, a slide deck is available both as a download within the webcast and in the Investor Relations section of nabors.com. Instructions for the replay of this call are posted on the website as well. With us today, in addition to Tony, William and myself, are Siggi Meissner, President of our Global Drilling Organization; and other members of the senior management team.
Since much of our commentary today will include our forward expectations, they may constitute 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 our filings with the Securities and Exchange Commission. As a result of these factors, our actual results may vary 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 net debt, adjusted operating income, adjusted EBITDA and free cash flow. All references to EBITDA made by either Tony or William during their presentations, whether qualified by the word adjusted or otherwise, mean adjusted EBITDA as that term is defined on our website and in our earnings release.
Likewise, unless the context clearly indicates otherwise, reference to cash flow means free cash flow as that non-GAAP measure is defined in our earnings release. We have posted to the Investor Relations section of our website a reconciliation of these non-GAAP financial measures to the most recently comparable GAAP measures.
Now, I will turn the call over to Tony to begin.
Anthony G. Petrello
Good morning. Thank you for joining us as we review our results for the fourth quarter and full year 2019. Our remarks will follow the usual format. I will begin with comments on the market, our results and the outlook. William will follow with details and I will then wrap up. Now to the macro. During the fourth quarter, the price of near-month WTI averaged just under $57. This was essentially flat with the third quarter average.
During the fourth quarter, the trend in pricing was solidly upward. The quarter began sub [Phonetic] $54 and then did above $61. Natural gas prices were essentially flat averaging just over $2.40 per Mcf during the fourth quarter. In the most recent quarterly