NABORS INDUSTRIES Urges Investors to Not Overreact to US Rig Count Decline
June 1, 2023
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Nabors Industries ($NYSE:NBR), one of the world’s largest oil and gas drilling companies, is cautioning investors not to overreact to the recent decline in the United States rig count. The company has been keeping a close eye on the current situation and believes that it is temporary and that long-term investors need not be overly concerned. NABORS Industries is a large oilfield services firm that provides services such as drilling rigs, well servicing rigs, and related services to the global oil and gas industry. It is one of the largest operators of land-based drilling rigs in the world and has operations in the Middle East, North America, Africa, and the Asia Pacific region. The company understands that the decline in US rig count is due to the current oil market environment, however its management believes investors should not worry excessively due to this short-term decrease.
They are confident that their strong position in the industry and their ability to provide quality services will enable them to successfully navigate this period of uncertainty and continue to grow in the long run. In conclusion, Nabors Industries is urging investors not to allow the short-term decline in US rig count to cause excessive concern. The company believes that its strong position in the industry and long-term outlook will enable it to overcome this period of uncertainty and continue to thrive.
Stock Price
On Tuesday, NABORS INDUSTRIES opened at $88.2 and closed at $86.8, a 4.1% drop from the previous day’s closing price of $90.4. The company believes that the decrease in rig count is a minor blip on the radar and that they are well-positioned to take advantage of any potential future opportunities within the industry. Despite the recent drop in US Rig Count, NABORS INDUSTRIES remains committed to offering its shareholders outstanding value and long-term growth potential. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Nabors Industries. More…
| Total Revenues | Net Income | Net Margin |
| 2.86k | -114 | -3.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Nabors Industries. More…
| Operations | Investing | Financing |
| 501.09 | -368.71 | -661.53 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Nabors Industries. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.7k | 3.43k | 39.19 |
Key Ratios Snapshot
Some of the financial key ratios for Nabors Industries are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -1.1% | -61.9% | 6.1% |
| FCF Margin | ROE | ROA |
| 4.5% | 28.4% | 2.3% |
Analysis
At GoodWhale, we recently conducted an analysis of NABORS INDUSTRIES‘ financials. After careful review, our team has concluded that NABORS INDUSTRIES is a medium risk investment in terms of financial and business aspects. We have also identified two risk warnings in the company’s income sheet and balance sheet. If you are interested in learning more, you can become a registered user on our site to check it out. More…
Peers
It is based in Houston, Texas and was founded in 1952. The company provides services to exploration, drilling, and production companies. Nabors Industries Ltd has a market cap of $4.21 billion and its competitors are Exterran Corp, Independence Contract Drilling Inc, and Stampede Drilling Inc.
– Exterran Corp ($NYSE:EXTN)
Independence Contract Drilling Inc. is a drilling contractor that provides land-based drilling services to exploration and production companies in North America. The company has a market cap of $45.07 million and a return on equity of -19.45%. Independence Contract Drilling provides services under contracts that specify the number of wells to be drilled, the locations of the wells, and the duration of the contracts. The company’s customers include some of the largest oil and gas companies in the world.
– Independence Contract Drilling Inc ($NYSE:ICD)
Stampede Drilling Inc is a Canadian drilling company that provides drilling services to the oil and gas industry. The company has a market cap of $64.83 million and a return on equity of 4.88%.
Summary
Investing in Nabors Industries can be a risky endeavor, as the company’s stock price fell the same day as the announcement that there would be a decrease in the U.S. rig count. Nonetheless, investments in the company remain viable, due to its strong financials and diverse portfolio. Nabors is engaged in a range of activities including contract drilling, directional drilling, and production services, and it has a presence in multiple countries across the world.
Despite the current downturn in the U.S. rig count, Nabors often diversifies its revenue streams by entering into new markets and has several initiatives to increase environmental sustainability. Investors should do their research and consider their risk tolerance before investing.
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