EX-99.1 3 h07742exv99w1.txt SUPPLEMENTAL HISTORICAL FINANCIAL INFORMATION EXHIBIT 99.1 NABORS INDUSTRIES LTD. AND SUBSIDIARIES SEGMENT REPORTING 2003, 2002 AND 2001 (IN THOUSANDS) The following table sets forth certain information with respect to our reportable segments, rig and well-servicing activity:
2001 --------------------------------------------------------------------------- 1Q 2Q 3Q 4Q FULL YEAR ----------- ----------- ----------- ----------- ----------- Operating revenues and Earnings from unconsolidated affiliates: Contract drilling: (1) U.S. Lower 48 Land Drilling $ 238,351 $ 303,571 $ 307,660 $ 163,247 $ 1,012,829 U.S. Land Well-servicing 83,041 90,389 92,183 80,172 345,785 U.S. Offshore 58,789 69,323 57,791 40,175 226,078 Alaska 35,126 32,634 32,831 33,043 133,634 Canada 30,250 15,845 17,518 22,697 86,310 International 57,677 60,925 78,786 85,016 282,404 ----------- ----------- ----------- ----------- ----------- Subtotal contract drilling (2) 503,234 572,687 586,769 424,350 2,087,040 Manufacturing and logistics (3) (4) 64,772 74,166 70,536 49,824 259,298 Other (5) (26,839) (35,373) (34,888) (21,168) (118,268) ----------- ----------- ----------- ----------- ----------- Total $ 541,167 $ 611,480 $ 622,417 $ 453,006 $ 2,228,070 =========== =========== =========== =========== =========== Adjusted cash flows derived from operating activities: (6) Contract drilling: (1) U.S. Lower 48 Land Drilling $ 77,318 $ 114,770 $ 128,794 $ 43,974 $ 364,856 U.S. Land Well-servicing 18,257 22,918 21,913 19,314 82,402 U.S. Offshore 11,743 18,240 12,007 13,117 55,107 Alaska 13,031 11,505 10,740 9,628 44,904 Canada 13,453 5,981 7,675 10,355 37,464 International 19,375 19,696 24,371 26,153 89,595 ----------- ----------- ----------- ----------- ----------- Subtotal contract drilling 153,177 193,110 205,500 122,541 674,328 Manufacturing and logistics (3) 27,127 32,249 29,773 16,621 105,770 Other (7) (12,545) (13,727) (15,375) (12,844) (54,491) ----------- ----------- ----------- ----------- ----------- Total 167,759 211,632 219,898 126,318 725,607 Depreciation and amortization (43,730) (50,746) (54,413) (41,007) (189,896) ----------- ----------- ----------- ----------- ----------- Adjusted income derived from operating activities (8) 124,029 160,886 165,485 85,311 535,711 Interest expense (12,464) (14,513) (15,395) (18,350) (60,722) Interest income 13,260 15,676 13,636 11,401 53,973 Other income, net 9,268 3,056 5,400 10,926 28,650 ----------- ----------- ----------- ----------- ----------- Income before income taxes $ 134,093 $ 165,105 $ 169,126 $ 89,288 $ 557,612 ----------- ----------- ----------- ----------- ----------- Income tax (benefit) expense: Current 14,935 11,388 27,503 29,892 83,718 Deferred 36,020 49,702 33,382 (2,660) 116,444 ----------- ----------- ----------- ----------- ----------- Total income tax (benefit) expense 50,955 61,090 60,885 27,232 200,162 ----------- ----------- ----------- ----------- ----------- Net income $ 83,138 $ 104,015 $ 108,241 $ 62,056 $ 357,450 =========== =========== =========== =========== =========== Earnings per share: Basic $ .57 $ .71 $ .75 $ .44 $ 2.48 Diluted $ .51 $ .63 $ .68 $ .41 $ 2.24 Weighted average number of common shares outstanding: Basic 146,696 146,539 143,610 140,874 144,430 Diluted 170,261 173,309 167,384 164,206 168,790 Rig years: U.S. Lower 48 Land Drilling 221.0 242.5 230.6 145.4 209.7 U.S. Offshore 31.4 34.1 28.8 21.1 28.8 Alaska 10.7 10.5 11.0 11.2 10.9 Canada 29.1 14.9 17.9 19.7 20.4 International 52.9 51.6 57.7 55.7 54.5 ----------- ----------- ----------- ----------- ----------- Total rig years 345.1 353.6 346.0 253.1 324.3 =========== =========== =========== =========== =========== Rig hours: U.S. Land Well-servicing 303,415 307,689 296,673 262,327 1,170,104 Canada Well-servicing -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Total rig hours 303,415 307,689 296,673 262,327 1,170,104 =========== =========== =========== =========== ===========
2002 --------------------------------------------------------------------------- 1Q 2Q 3Q 4Q FULL YEAR ----------- ----------- ----------- ----------- ----------- Operating revenues and Earnings from unconsolidated affiliates: Contract drilling: (1) U.S. Lower 48 Land Drilling $ 109,159 $ 97,022 $ 92,298 $ 81,743 $ 380,222 U.S. Land Well-servicing 73,703 76,250 74,168 70,307 294,428 U.S. Offshore 27,472 23,958 24,446 29,841 105,717 Alaska 39,994 30,947 26,359 20,899 118,199 Canada 28,017 20,935 41,387 51,158 141,497 International 80,088 77,062 77,430 85,580 320,160 ----------- ----------- ----------- ----------- ----------- Subtotal contract drilling (2) 358,433 326,174 336,088 339,528 1,360,223 Manufacturing and logistics (3) (4) 40,042 41,554 33,692 59,487 174,775 Other (5) (11,638) (11,210) (14,702) (16,230) (53,780) ----------- ----------- ----------- ----------- ----------- Total $ 386,837 $ 356,518 $ 355,078 $ 382,785 $ 1,481,218 =========== =========== =========== =========== =========== Adjusted cash flows derived from operating activities: (6) Contract drilling: (1) U.S. Lower 48 Land Drilling $ 28,086 $ 23,723 $ 21,359 $ 16,249 $ 89,417 U.S. Land Well-servicing 14,539 16,187 14,320 13,185 58,231 U.S. Offshore 1,961 1,150 3,891 12,092 19,094 Alaska 13,606 10,255 11,371 8,157 43,389 Canada 12,634 2,509 9,067 13,917 38,127 International 29,902 27,690 27,206 28,843 113,641 ----------- ----------- ----------- ----------- ----------- Subtotal contract drilling 100,728 81,514 87,214 92,443 361,899 Manufacturing and logistics (3) 13,709 13,000 8,282 7,713 42,704 Other (7) (9,699) (9,010) (11,276) (9,205) (39,190) ----------- ----------- ----------- ----------- ----------- Total 104,738 85,504 84,220 90,951 365,413 Depreciation and amortization (43,681) (47,984) (52,084) (51,616) (195,365) ----------- ----------- ----------- ----------- ----------- Adjusted income derived from operating activities (8) 61,057 37,520 32,136 39,335 170,048 Interest expense (14,615) (14,418) (17,772) (20,263) (67,068) Interest income 9,251 8,142 8,145 8,548 34,086 Other income, net 497 2,649 (994) 1,556 3,708 ----------- ----------- ----------- ----------- ----------- Income before income taxes $ 56,190 $ 33,893 $ 21,515 $ 29,176 $ 140,774 ----------- ----------- ----------- ----------- ----------- Income tax (benefit) expense: Current 4,443 2,514 1,774 1,454 10,185 Deferred 9,805 5,959 (7,181) 517 9,100 ----------- ----------- ----------- ----------- ----------- Total income tax (benefit) expense 14,248 8,473 (5,407) 1,971 19,285 ----------- ----------- ----------- ----------- ----------- Net income $ 41,942 $ 25,420 $ 26,922 $ 27,205 $ 121,489 =========== =========== =========== =========== =========== Earnings per share: Basic $ .30 $ .18 $ .19 $ .19 $ .85 Diluted $ .28 $ .17 $ .18 $ .18 $ .81 Weighted average number of common shares outstanding: Basic 140,970 143,188 145,078 145,385 143,655 Diluted 154,768 150,451 151,158 151,717 149,997 Rig years: U.S. Lower 48 Land Drilling 107.7 105.6 103.2 95.5 103.0 U.S. Offshore 14.9 14.5 14.5 14.0 14.5 Alaska 11.3 9.6 8.8 7.7 9.3 Canada 27.0 11.4 23.4 29.6 22.9 International 52.3 53.5 54.6 59.9 55.1 ----------- ----------- ----------- ----------- ----------- Total rig years 213.2 194.6 204.5 206.7 204.8 =========== =========== =========== =========== =========== Rig hours: U.S. Land Well-servicing 242,279 262,326 259,688 250,364 1,014,657 Canada Well-servicing -- 30,528 62,553 71,704 164,785 ----------- ----------- ----------- ----------- ----------- Total rig hours 242,279 292,854 322,241 322,068 1,179,442 =========== =========== =========== =========== ===========
2003 --------------------------- 1Q 2Q ----------- ----------- Operating revenues and Earnings from unconsolidated affiliates: Contract drilling: (1) U.S. Lower 48 Land Drilling $ 91,688 $ 116,605 U.S. Land Well-servicing 76,660 81,504 U.S. Offshore 21,714 24,680 Alaska 35,968 30,446 Canada 100,788 49,836 International 87,191 96,599 ----------- ----------- Subtotal contract drilling (2) 414,009 399,670 Manufacturing and logistics (3) (4) 55,189 46,572 Other (5) (13,458) (12,331) ----------- ----------- Total $ 455,740 $ 433,911 =========== =========== Adjusted cash flows derived from operating activities: (6) Contract drilling: (1) U.S. Lower 48 Land Drilling $ 14,051 $ 23,445 U.S. Land Well-servicing 15,145 18,811 U.S. Offshore 1,103 5,112 Alaska 18,162 13,414 Canada 33,253 5,453 International 28,142 33,350 ----------- ----------- Subtotal contract drilling 109,856 99,585 Manufacturing and logistics (3) 10,867 4,883 Other (7) (10,788) (9,831) ----------- ----------- Total 109,935 94,637 Depreciation and amortization (53,926) (56,652) ----------- ----------- Adjusted income derived from operating activities(8) 56,009 37,985 Interest expense (20,070) (18,644) Interest income 7,693 6,998 Other income, net 24 23 ----------- ----------- Income before income taxes $ 43,656 $ 26,362 ----------- ----------- Income tax (benefit) expense: Current 4,060 3,226 Deferred (8,461) (5,883) ----------- ----------- Total income tax (benefit) expense (4,401) (2,657) ----------- ----------- Net income $ 48,057 $ 29,019 =========== =========== Earnings per share: Basic $ .33 $ .20 Diluted $ .31 $ .19 Weighted average number of common shares outstanding: Basic 145,708 146,382 Diluted 160,404 153,359 Rig years: U.S. Lower 48 Land Drilling 108.9 136.8 U.S. Offshore 13.4 15.0 Alaska 8.7 9.1 Canada 58.8 23.4 International 57.1 59.8 ----------- ----------- Total rig years 246.9 244.1 =========== =========== Rig hours: U.S. Land Well-servicing 273,513 281,810 Canada Well-servicing 92,702 46,458 ----------- ----------- Total rig hours 366,215 328,268 =========== ===========
---------- (1) This segment includes our drilling, workover and well-servicing operations, on land and offshore. (2) Includes Earnings from unconsolidated affiliates, accounted for by the equity method, of $.9 million and $1.0 million for the three months ended March 31 and June 30, 2003, respectively. Includes Earnings from unconsolidated affiliates, accounted for by the equity method, of $1.1 million, $1.0 million, $.9 million and $.8 million for the three months ended March 31, June 30, September 30 and December 31, 2002, respectively, and $3.9 million for the twelve months ended December 31, 2002. Includes Earnings from unconsolidated affiliates, accounted for by the equity method, of $2.1 million, $1.9 million, $2.3 million and $2.8 million for the three months ended March 31, June 30, September 30 and December 31, 2001, respectively, and $9.0 million for the twelve months ended December 31, 2001. (3) This segment includes our marine transportation and supply services, top drive manufacturing, directional drilling, rig instrumentation and software, and construction and logistics operating units. (4) Includes Earnings from unconsolidated affiliates, accounted for by the equity method, of $5.0 million and $1.4 million for the three months ended March 31 and June 30, 2003, respectively. Includes Earnings from unconsolidated affiliates, accounted for by the equity method, of $4.5 million, $3.4 million, $1.0 million and $2.0 million for the three months ended March 31, June 30, September 30 and December 31, 2002, respectively, and $10.9 million for the twelve months ended December 31, 2002. Includes Earnings from unconsolidated affiliates, accounted for by the equity method, of $5.9 million, $5.8 million, $3.8 million and $1.7 million for the three months ended March 31, June 30, September 30 and December 31, 2001, respectively, and $17.3 million for the twelve months ended December 31, 2001. (5) Includes the elimination of inter-segment manufacturing and logistics sales. (6) Adjusted cash flows derived from operating activities is computed by: subtracting direct costs and general and administrative expenses from Operating revenues and then adding Earnings from unconsolidated affiliates. Such amounts should not be used as a substitute to those amounts reported under accounting principles generally accepted in the United States of America (GAAP). However, management evaluates the performance of our business units based on several criteria, including adjusted cash flows derived from operating activities, because it believes that this financial measure is an accurate reflection of the ongoing performance of our business units. A reconciliation of this non-GAAP measure to income before income taxes, which is a GAAP measure, is provided within the table above. (7) Includes the elimination of inter-segment transactions and unallocated corporate expenses. (8) Adjusted income derived from operating activities is computed by: subtracting direct costs, general and administrative expenses, and depreciation and amortization expense from Operating revenues and then adding Earnings from unconsolidated affiliates. Such amounts should not be used as a substitute to those amounts reported under GAAP. However, management evaluates the performance of its business units and the consolidated company based on several criteria, including adjusted income derived from operating activities, because it believes that this financial measure is an accurate reflection of the ongoing profitability of our company. A reconciliation of this non-GAAP measure to income before income taxes, which is a GAAP measure, is provided within the table above.