HAMILTON, Bermuda, Oct. 25, 2016 /PRNewswire/ -- Nabors Industries Ltd. ("Nabors") (NYSE: NBR) today reported third-quarter 2016 operating revenues of $519.7 million, compared to operating revenues of $571.6 million in the second quarter of 2016. Net income from continuing operations, attributable to Nabors, for the current quarter was a loss of $99.0 million, or $0.35 per diluted share, compared to a loss of $183.7 million, or $0.65 per diluted share, last quarter.

Anthony Petrello, Nabors' Chairman, President, and CEO, commented, "After a challenging downturn, we are experiencing significant utilization increases in our Lower 48 market, although spot market pricing continues to remain competitive. Similarly, our international markets are showing signs of impending activity increases. We are very encouraged by our customers' acceptance of our newest rig, the PACE®-M800. We now have contracts for the first four M800s, with two already deployed, and awards for two more. Likewise, the high demand for our PACE(®)-X rigs has brought the utilization of that fleet to over 80%. This increased demand is beginning to exert upward pressure on pricing for these top-end rigs, although, in the near-term, our fleet average margins will remain under pressure due to expiring long-term contracts. We are also implementing a cost-effective plan to enhance other classes of our existing AC rig fleet to incorporate most of the features of these rigs. Regardless of how the recovery unfolds, we expect our reduced cost structure, improved performance and our various technology initiatives to significantly increase operating leverage across our global fleet.

"We recorded a sequential decline in adjusted operating income, as a modest increase in Rig Services was more than offset by reduction in one-time gains in Drilling, as compared to the second quarter. We expect this trend in operating income to continue into the beginning of 2017 driven by lower U.S. Drilling margins and International utilization."

Segment Results

Adjusted operating income for the Company was a loss of $72.0 million during the quarter. Drilling and Rig Services adjusted operating income was a loss of $38.4 million compared to a loss of $25.0 million in the second quarter. Quarterly adjusted EBITDA for the Company decreased sequentially to $148.7 million, a 10% decline from the previous quarter due to a reduction in certain revenue items that were discrete to each quarter. For the quarter, the Company averaged 163.5 rig years operating at an average gross margin of $14,029 per rig day, compared to 159.1 rigs at $15,850 per rig day in the second quarter and 187.9 rig years at an average gross margin of $13,407 per rig day in the first quarter.

International adjusted EBITDA decreased by 1% sequentially to $148.8 million. A reduction of four rig years in this segment was mostly offset by an increase in margin. Compared to the third quarter, the Company expects quarterly adjusted EBITDA to remain under pressure in the near term. The Company is encouraged by planned startups at the beginning of the year, as well as, increased tendering activity with mid-2017 start dates. Canada operations should reflect the seasonally stronger winter activity, although the rebound should be less robust than usual.

The U.S. Drilling segment posted adjusted EBITDA of $37.3 million for the quarter, reflecting further margin erosion offset by a 7% increase in rig years. The Lower 48 operation saw a 13% increase in rigs working compared to the second quarter, with an average rig count of 50. The Company is currently working 61 rigs in the Lower 48 operation. The recent start-up of rig CDR-3 and seasonal winter activity will benefit near-term Alaskan results.

Rig Services, which consists of the Company's manufacturing, directional drilling, and complementary services, reported a loss in adjusted EBITDA of $4.3 million, representing a $6.1 million improvement over the second quarter. This increase is primarily attributable to reduced costs and higher revenues from service and repair operations. The Company expects this trend to continue.

William Restrepo, Nabors' Chief Financial Officer, stated, "Third-quarter performance by our company has confirmed the trends we had foreseen after the second quarter. First, our International business has remained healthy and continues to provide strong cash generation. Second, our rig count in the Lower 48 market has rebounded. Our working rigs have increased by 66% since our trough in early April, and we have gained market share, mainly on strong demand for our PACE(®)-X rigs. Third, as anticipated, the daily margins for our Lower 48 rigs eroded some more, some term contracts expired, and we added more rigs at the currently lower spot rates. We expect this deterioration to continue near-term. Finally, our focus on costs at all levels of the organization has paid off, as we have mitigated the impact of average dayrate declines in the U.S., contained our SG&A expense in the face of an uptick in rig count and controlled our capital expenditures."

Mr. Petrello concluded, "Recent increases in Lower 48 activity and stabilizing oil prices are encouraging. We are experiencing utilization increases across many of our AC rig classes, particularly our pad-optimal PACE(®)-X and M800 rigs, which are rapidly approaching full utilization. All of our new-build rigs are deployed with our new Rigtelligent(TM) modular-code operating system and we have commenced retrofitting most of our AC fleet. This operating system effectively automates routine tasks and integrates downhole processes with the rig. The incorporation of this operating system together with on-ging enhancements to our other AC rig classes, will give us 100 pad-optimal, high-specification, automated rigs by mid-2017. We believe these actions position us well to address the changing market dynamic both in the United States and internationally."

About Nabors

Nabors Industries (NYSE: NBR) owns and operates the world's largest land-based drilling rig fleet and is a leading provider of offshore platform rigs in the United States and numerous international markets. Nabors also provides directional drilling services, performance tools, and innovative technologies throughout many of the most significant oil and gas markets. Leveraging our advanced drilling automation capabilities, Nabors' highly skilled workforce continues to set new standards for operational excellence and transform our industry.

Forward-looking Statements

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 a number of 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 forward-looking statements contained in this press release reflect management's estimates and beliefs as of the date of this press release. Nabors does not undertake to update these forward-looking statements.

Non-GAAP Disclaimer

This press release presents certain "non-GAAP" financial measures. The components of these non-GAAP measures are computed by using amounts that are determined in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Adjusted EBITDA is computed by subtracting the sum of direct costs, general and administrative expenses and research and engineering expenses from operating revenues. Adjusted operating income (loss) is computed similarly, but also subtracts depreciation and amortization expenses from operating revenues. Net debt is computed by subtracting the sum of cash and short-term investments from total debt. Each of these non-GAAP measures has limitations and therefore should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. In addition, adjusted EBITDA and adjusted operating income exclude certain cash expenses that we are obligated to make. However, management evaluates the performance of our operating segments and the consolidated Company based on several criteria, including adjusted EBITDA, adjusted operating income (loss), and net debt, because it believes that these financial measures accurately reflect our ongoing profitability and performance. In addition, securities analysts and investors use these measures as some of the metrics on which they analyze the company's performance. Other companies in our industry may compute these measures differently. A reconciliation of adjusted EBITDA and adjusted operating income (loss) to income (loss) from continuing operations before income taxes and net debt to total debt, which are their nearest comparable GAAP financial measures, are included in the tables at the end of this press release.

Media Contact: Dennis A. Smith, Vice President 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                                               Nine Months Ended
                                                                          ------------------                                              -----------------

                                                                         September 30,                                June 30,                                 September 30,
                                                                         -------------                                --------                                 -------------


    (In thousands, except per share amounts)                                              2016                                        2015                                        2016          2016           2015
                                                                                          ----                                        ----                                        ----          ----           ----


    Revenues and other income:

      Operating revenues                                                              $519,729                                    $847,553                                    $571,591    $1,688,891     $3,125,565

      Earnings (losses) from unconsolidated affiliates                                       2                                    (35,100)                                   (54,769)    (221,918)      (29,714)

      Investment income (loss)                                                             310                                        (22)                                        270           923          2,128

        Total revenues and other income                                                520,041                                     812,431                                     517,092     1,467,896      3,097,979
                                                                                       -------                                     -------                                     -------     ---------      ---------


    Costs and other deductions:

    Direct costs                                                                       306,436                                     518,174                                     341,279     1,012,738      1,926,306

    General and administrative expenses                                                 56,078                                      72,032                                      56,624       175,036        263,272

    Research and engineering                                                             8,476                                       9,716                                       8,180        24,818         31,899

    Depreciation and amortization                                                      220,713                                     240,107                                     218,913       655,444        739,322

    Interest expense                                                                    46,836                                      44,448                                      45,237       137,803        135,518

    Other, net                                                                          10,392                                     259,731                                      74,607       267,403        205,227

          Total costs and other deductions                                             648,931                                   1,144,208                                     744,840     2,273,242      3,301,544
                                                                                       -------                                   ---------                                     -------     ---------      ---------


    Income (loss) from continuing operations before income taxes                     (128,890)                                  (331,777)                                  (227,748)    (805,346)     (203,565)
                                                                                      --------                                    --------                                    --------      --------       --------


    Income tax expense (benefit)                                                      (31,051)                                   (80,898)                                   (41,183)    (124,298)      (35,158)
                                                                                       -------                                     -------                                     -------      --------        -------


    Income (loss) from continuing operations, net of tax                              (97,839)                                  (250,879)                                  (186,565)    (681,048)     (168,407)

    Income (loss) from discontinued operations, net of tax                            (12,187)                                   (45,275)                                      (984)     (14,097)      (41,067)
                                                                                       -------                                     -------                                        ----       -------        -------


    Net income (loss)                                                                (110,026)                                  (296,154)                                  (187,549)    (695,145)     (209,474)

         Less: Net (income) loss attributable to noncontrolling interest               (1,185)                                        320                                       2,899           990            453

    Net income (loss) attributable to Nabors                                        $(111,211)                                 $(295,834)                                 $(184,650)   $(694,155)    $(209,021)
                                                                                     ---------                                   ---------                                   ---------     ---------      ---------


    Amounts attributable to Nabors:

    Net income (loss) from continuing operations                                     $(99,024)                                 $(250,559)                                 $(183,666)   $(680,058)    $(167,954)

    Net income (loss) from discontinued operations                                    (12,187)                                   (45,275)                                      (984)     (14,097)      (41,067)

    Net income (loss) attributable to Nabors                                        $(111,211)                                 $(295,834)                                 $(184,650)   $(694,155)    $(209,021)
                                                                                     ---------                                   ---------                                   ---------     ---------      ---------


    Earnings (losses) per share:

       Basic from continuing operations                                                 $(.35)                                     $(.86)                                     $(.65)      $(2.41)        $(.57)

       Basic from discontinued operations                                                (.04)                                      (.16)                                          -        (.05)         (.15)
                                                                                          ----                                        ----                                         ---         ----           ----

         Basic                                                                          $(.39)                                    $(1.02)                                     $(.65)      $(2.46)        $(.72)


       Diluted from continuing operations                                               $(.35)                                     $(.86)                                     $(.65)      $(2.41)        $(.57)

       Diluted from discontinued operations                                              (.04)                                      (.16)                                          -        (.05)         (.15)
                                                                                          ----                                        ----                                         ---         ----           ----

         Diluted                                                                        $(.39)                                    $(1.02)                                     $(.65)      $(2.46)        $(.72)




    Weighted-average number of common shares outstanding:

       Basic                                                                           276,707                                     284,112                                     276,550       276,369        285,186
                                                                                       -------                                     -------                                     -------       -------        -------

       Diluted                                                                         276,707                                     284,112                                     276,550       276,369        285,186
                                                                                       -------                                     -------                                     -------       -------        -------



    Adjusted EBITDA (1)                                                               $148,739                                    $247,631                                    $165,508      $476,299       $904,088
                                                                                      ========                                    ========                                    ========      ========       ========


    Adjusted operating income (loss) (2)                                             $(71,974)                                     $7,524                                   $(53,405)   $(179,145)      $164,766
                                                                                      ========                                      ======                                    ========     =========       ========



    (1)              Adjusted EBITDA is computed by
                     subtracting the sum of direct
                     costs, general and administrative
                     expenses and research and
                     engineering expenses from
                     operating revenues. Adjusted
                     EBITDA is a non-GAAP financial
                     measure and should not be used in
                     isolation or as a substitute for
                     the amounts reported in accordance
                     with GAAP. However, management
                     evaluates the performance of our
                     operating segments and the
                     Company's consolidated results
                     based on several criteria,
                     including adjusted EBITDA and
                     adjusted operating income (loss),
                     because it believes that these
                     financial measures reflect our
                     ongoing profitability and
                     performance.  In addition,
                     securities analysts and investors
                     use this measure as one of the
                     metrics on which they analyze our
                     performance.  Other companies in
                     our industry may compute these
                     measures differently.  A
                     reconciliation of this non-GAAP
                     measure to income (loss) from
                     continuing operations before
                     income taxes, which is the most
                     closely comparable 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".


    (2)              Adjusted operating income (loss) is
                     computed by subtracting the sum of
                     direct costs, general and
                     administrative expenses, research
                     and engineering expenses and
                     depreciation and amortization from
                     operating revenues. Adjusted
                     operating income (loss) is a non-
                     GAAP financial measure and should
                     not be used in isolation or as a
                     substitute for the amounts
                     reported in accordance with GAAP.
                     However, management evaluates the
                     performance of our operating
                     segments and the Company's
                     consolidated results based on
                     several criteria, including
                     adjusted EBITDA and adjusted
                     operating income (loss), because
                     it believes that these financial
                     measures reflect our ongoing
                     profitability and performance. In
                     addition, securities analysts and
                     investors use this measure as one
                     of the metrics on which they
                     analyze our performance.  Other
                     companies in our industry may
                     compute these measures
                     differently.  A reconciliation of
                     this non-GAAP measure to income
                     (loss) from continuing operations
                     before income taxes, which is the
                     most closely comparable 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




                                      September 30,                                   June 30,            December 31,

    (In thousands)                                          2016                                     2016                    2015
                                                            ----                                     ----                    ----

                                       (Unaudited)

    ASSETS

    Current assets:

    Cash and short-term
     investments                                        $200,650                                 $255,856                $274,589

    Accounts receivable, net                             503,966                                  504,099                 784,671

    Assets held for sale                                  69,436                                   86,608                  75,678

    Other current assets                                 336,668                                  344,680                 340,959
                                                         -------                                  -------                 -------

         Total current assets                          1,110,720                                1,191,243               1,475,897

    Property, plant and
     equipment, net                                    6,616,711                                6,765,257               7,027,802

    Goodwill                                             167,131                                  167,275                 166,659

    Investment in unconsolidated
     affiliates                                              889                                      888                 415,177

    Other long-term assets                               529,053                                  531,642                 452,305

         Total assets                                 $8,424,504                               $8,656,305              $9,537,840
                                                      ==========                               ==========              ==========


    LIABILITIES AND EQUITY

    Current liabilities:

    Current debt                                            $120                                     $175                  $6,508

    Other current liabilities                            787,742                                  868,000                 999,991
                                                         -------                                  -------                 -------

         Total current liabilities                       787,862                                  868,175               1,006,499

    Long-term debt                                     3,475,978                                3,503,172               3,655,200

    Other long-term liabilities                          561,970                                  562,260                 582,273
                                                         -------                                  -------                 -------

         Total liabilities                             4,825,810                                4,933,607               5,243,972


    Equity:

    Shareholders' equity                               3,591,929                                3,715,850               4,282,710

    Noncontrolling interest                                6,765                                    6,848                  11,158
                                                           -----                                    -----                  ------

         Total equity                                  3,598,694                                3,722,698               4,293,868

         Total liabilities and equity                 $8,424,504                               $8,656,305              $9,537,840
                                                      ==========                               ==========              ==========




                                                                                                                  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                                                 Nine Months Ended
                                                                   ------------------                                                 -----------------

                                                                  September 30,                                  June 30,                                 September 30,
                                                                  -------------                                  --------                                 -------------


    (In thousands, except rig
     activity)                                                                          2016                                      2015                                         2016          2016          2015
                                                                                        ----                                      ----                                         ----          ----          ----



    Operating revenues:

        Drilling & Rig Services:

          U.S.                                                                      $116,095                                  $259,939                                     $140,342      $405,113    $1,034,929

          Canada                                                                      10,444                                    29,929                                        6,617        34,555       109,182

          International                                                              363,552                                   516,180                                      401,024     1,165,631     1,413,886

          Rig Services (1)                                                            58,950                                    73,521                                       39,248       152,051       318,204
                                                                                      ------                                    ------                                       ------       -------       -------

           Subtotal Drilling & Rig
            Services                                                                 549,041                                   879,569                                      587,231     1,757,350     2,876,201


        Completion & Production
         Services:

          Completion Services                                                              -                                        -                                           -            -      207,860

          Production Services                                                              -                                        -                                           -            -      158,512
                                                                                         ---                                      ---                                         ---          ---      -------

           Subtotal Completion &
            Production Services                                                            -                                        -                                           -            -      366,372


        Other reconciling items (2)                                                 (29,312)                                 (32,016)                                    (15,640)     (68,459)    (117,008)
                                                                                     -------                                   -------                                      -------       -------      --------

          Total operating revenues                                                  $519,729                                  $847,553                                     $571,591    $1,688,891    $3,125,565
                                                                                    --------                                  --------                                     --------    ----------    ----------


    Adjusted EBITDA: (3)

        Drilling & Rig Services:

          U.S.                                                                       $37,299                                   $94,505                                      $52,878      $141,412      $418,749

          Canada                                                                         196                                     7,516                                          360         2,678        29,716

          International                                                              148,833                                   186,451                                      150,618       447,760       558,550

          Rig Services (1)                                                           (4,334)                                  (2,455)                                    (10,433)     (16,248)       25,469
                                                                                      ------                                    ------                                      -------       -------        ------

           Subtotal Drilling & Rig
            Services                                                                 181,994                                   286,017                                      193,423       575,602     1,032,484


        Completion & Production
         Services:

          Completion Services                                                              -                                        -                                           -            -     (28,110)

          Production Services                                                              -                                        -                                           -            -       23,043
                                                                                         ---                                      ---                                         ---          ---       ------

           Subtotal Completion &
            Production Services                                                            -                                        -                                           -            -      (5,067)


        Other reconciling items (4)                                                 (33,255)                                 (38,386)                                    (27,915)     (99,303)    (123,329)
                                                                                     -------                                   -------                                      -------       -------      --------

          Total adjusted EBITDA                                                     $148,739                                  $247,631                                     $165,508      $476,299      $904,088


    Adjusted operating income
     (loss): (5)

        Drilling & Rig Services:

          U.S.                                                                     $(58,876)                                $(14,034)                                   $(48,328)   $(154,763)      $94,449

          Canada                                                                    (10,156)                                  (4,085)                                    (10,831)     (28,265)      (5,995)

          International                                                               43,595                                    74,039                                       53,859       144,326       256,412

          Rig Services (1)                                                          (12,937)                                 (10,434)                                    (19,657)     (43,238)          864
                                                                                     -------                                   -------                                      -------       -------           ---

           Subtotal Drilling & Rig
            Services                                                                (38,374)                                   45,486                                     (24,957)     (81,940)      345,730


        Completion & Production
         Services:

          Completion Services                                                              -                                        -                                           -            -     (55,243)

          Production Services                                                              -                                        -                                           -            -      (3,559)
                                                                                         ---                                      ---                                         ---          ---       ------

           Subtotal Completion &
            Production Services                                                            -                                        -                                           -            -     (58,802)


        Other reconciling items (4)                                                 (33,600)                                 (37,962)                                    (28,448)     (97,205)    (122,162)
                                                                                     -------                                   -------                                      -------       -------      --------

       Total adjusted operating
        income (loss)                                                              $(71,974)                                   $7,524                                    $(53,405)   $(179,145)     $164,766


    Earnings (losses) from
     unconsolidated affiliates (6)                                                        $2                                 $(35,100)                                   $(54,769)   $(221,918)    $(29,714)
                                                                                         ---                                  --------                                     --------     ---------      --------


    Rig activity:

    Rig years: (7)

       U.S.                                                                             57.3                                     103.0                                         53.7          58.6         129.8

       Canada                                                                            8.8                                      17.2                                          4.2           8.5          17.5

       International (8)                                                                97.4                                     121.3                                        101.2         103.0         126.1

          Total rig years                                                              163.5                                     241.5                                        159.1         170.1         273.4

    Rig hours: (9)

       U.S. Production Services                                                            -                                        -                                           -            -      129,652

       Canada Production Services                                                          -                                        -                                           -            -       23,947

          Total rig hours                                                                  -                                        -                                           -            -      153,599
                                                                                         ---                                      ---                                         ---          ---      -------


    (1)              Includes our other services comprised
                     of our drilling technology and top
                     drive manufacturing, directional
                     drilling, rig instrumentation and
                     software services.


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


    (3)              Adjusted EBITDA is computed by
                     subtracting the sum of direct costs,
                     general and administrative expenses
                     and research and engineering
                     expenses from operating revenues.
                     Adjusted EBITDA is a non-GAAP
                     financial measure and should not be
                     used in isolation or as a substitute
                     for the amounts reported in
                     accordance with GAAP. However,
                     management evaluates the performance
                     of our operating segments and the
                     Company's consolidated results based
                     on several criteria, including
                     adjusted EBITDA and adjusted
                     operating income (loss), because it
                     believes that these financial
                     measures reflect our ongoing
                     profitability and performance.  In
                     addition, securities analysts and
                     investors use this measure as one of
                     the metrics on which they analyze
                     our performance.  Other companies in
                     our industry may compute these
                     measures differently.  A
                     reconciliation of this non-GAAP
                     measure to income (loss) from
                     continuing operations before income
                     taxes, which is the most closely
                     comparable 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".


    (4)              Represents the elimination of inter-
                     segment transactions and unallocated
                     corporate expenses.


    (5)              Adjusted operating income (loss) is
                     computed by subtracting the sum of
                     direct costs, general and
                     administrative expenses, research
                     and engineering expenses and
                     depreciation and amortization from
                     operating revenues. Adjusted
                     operating income (loss) is a non-
                     GAAP financial measure and should
                     not be used in isolation or as a
                     substitute for the amounts reported
                     in accordance with GAAP. However,
                     management evaluates the performance
                     of our operating segments and the
                     Company's consolidated results based
                     on several criteria, including
                     adjusted EBITDA and adjusted
                     operating income (loss), because it
                     believes that these financial
                     measures reflect our ongoing
                     profitability and performance.  In
                     addition, securities analysts and
                     investors use this measure as one of
                     the metrics on which they analyze
                     our performance.  Other companies in
                     our industry may compute these
                     measures differently.  A
                     reconciliation of this non-GAAP
                     measure to income (loss) from
                     continuing operations before income
                     taxes, which is the most closely
                     comparable 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 our share of the net
                     income (loss), as adjusted for our
                     basis difference, of our
                     unconsolidated affiliates accounted
                     for by the equity method, including
                     losses of $35.1 million and $54.8
                     million for the three months ended
                     September 30, 2015 and June 30,
                     2016, respectively, and $221.9
                     million and $35.9 million for the
                     nine months ended September 30, 2016
                     and 2015 related to our share of the
                     net loss of C&J Energy Services,
                     Ltd. ("C&J"), which we reported on a
                     quarter lag through June 30, 2016.
                     Beginning in the third quarter of
                     2016, we ceased accounting for our
                     investment in C&J under the equity
                     method of accounting.


    (7)              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.


    (8)              International rig years includes our
                     equivalent percentage ownership of
                     rigs owned by unconsolidated
                     affiliates, which totaled 2.5 years
                     during the three months ended March
                     31, 2015.  As of May 24, 2015, this
                     was no longer an unconsolidated
                     affiliate.


    (9)              Rig hours represents the number of
                     hours that our well-servicing rig
                     fleet operated during the period.
                     This fleet was included in the
                     Completion & Production Services
                     business that was merged with C&J
                     Energy Services, Inc. in March 2015
                     and we will therefore no longer
                     report this performance metric.



                                                                   NABORS INDUSTRIES LTD. AND SUBSIDIARIES


                                                              RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO

                                                        INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

                                                                                 (Unaudited)





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

                                  September 30,                      June 30,                                        September 30,
                                  -------------                      --------                                        -------------


    (In thousands)                                 2016                             2015                                                2016          2016           2015
                                                   ----                             ----                                                ----          ----           ----


    Adjusted EBITDA                            $148,739                         $247,631                                            $165,508      $476,299       $904,088

    Depreciation and amortization             (220,713)                       (240,107)                                          (218,913)    (655,444)     (739,322)

    Adjusted operating income
     (loss)                                    (71,974)                           7,524                                            (53,405)    (179,145)       164,766
                                                -------                            -----                                             -------      --------        -------


    Earnings (losses) from
     unconsolidated affiliates                        2                         (35,100)                                           (54,769)    (221,918)      (29,714)

    Investment income (loss)                        310                             (22)                                                270           923          2,128

    Interest expense                           (46,836)                        (44,448)                                           (45,237)    (137,803)     (135,518)

    Other, net                                 (10,392)                       (259,731)                                           (74,607)    (267,403)     (205,227)

    Income (loss) from continuing
     operations before income
     taxes                                   $(128,890)                      $(331,777)                                         $(227,748)   $(805,346)    $(203,565)
                                              =========                        =========                                           =========     =========      =========



                                    NABORS INDUSTRIES LTD. AND SUBSIDIARIES


                                   RECONCILIATION OF NET DEBT TO TOTAL DEBT



                          September 30,                                    June 30,            December 31,

    (In thousands)                              2016                                      2016                    2015
                                                ----                                      ----                    ----

                           (Unaudited)




    Current debt                                $120                                      $175                  $6,508

    Long-term debt                         3,475,978                                 3,503,172               3,655,200
                                           ---------                                 ---------               ---------

         Total Debt                        3,476,098                                 3,503,347               3,661,708

    Less: Cash and short-
     term investments                        200,650                                   255,856                 274,589

         Net Debt                         $3,275,448                                $3,247,491              $3,387,119
                                          ==========                                ==========              ==========

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/nabors-announces-third-quarter-results-300351147.html

SOURCE Nabors Industries Ltd.