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Nabors Announces Redemption of 7.500% Senior Guaranteed Notes Due 2028 and Fourth Quarter 2025 Reduction in Net Debt of Approximately $366 Million, Equivalent to $25 per Share

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HAMILTON, Bermuda, Jan. 15, 2026 /PRNewswire/ -- Nabors Industries Ltd. ("Nabors" or the "Company") ...

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AI Summary

Nabors Industries announced the full redemption of its 7.5% Senior Notes, significantly reducing its net debt to $1.55 billion, the lowest level since 2008. This move strengthens the company’s capital structure and extends its financing runway to 2029, positioned for strategic progress and better shareholder value.

Sentiment Rationale

Debt reduction generally leads to increased investor confidence and can spur stock price gains, as seen historically with companies reducing leverage during favorable market conditions.

Trading Thesis

NBR is likely to appreciate in the short term due to improved financial metrics.

Market-Moving

  • Debt repayment enhances Nabors' capital structure, potentially increasing investor confidence.
  • Reduced net debt indicates better operational execution, positive for stock performance.
  • Long-term debt maturity extension boosts financial flexibility, ensuring stability.
  • Lower leverage reduces financial risk, attracting more institutional investors.

Key Facts

  • Nabors redeemed $379 million in Senior Guaranteed Notes due 2028.
  • Total debt is $2.5 billion, with a reduced net debt of $1.55 billion.
  • Net leverage hits its lowest level since 2008, enhancing financial strength.
  • Next debt maturity is in 2029, increasing capital flexibility.
  • CEO emphasizes the importance of debt reduction for shareholder value.

Companies Mentioned

  • Parker Wellbore (N/A): Strategic asset acquisition contributing to financial stability.
  • Quail Tools (N/A): Part of operational execution that supports debt reduction efforts.

Corporate Developments

The article fits 'Corporate Developments' as it discusses significant actions regarding debt management by Nabors, illustrating improvements in financial health which could enhance shareholder value. Such moves often influence stock performance positively.

Nabors Industries Announces Redemption of Senior Notes and Significant Debt Reductions

Nabors Industries Ltd. (NYSE: NBR) has made a major financial milestone by announcing the full redemption of its 7.500% Senior Guaranteed Notes due 2028. This redemption, valued at approximately $379 million, will take effect on January 15, 2026, further strengthening Nabors' financial position.

Debt Reduction Highlights and Financial Overview

In addition to the redemption announcement, Nabors provided preliminary balance sheet figures, highlighting a total debt of approximately $2.5 billion as of December 31, 2025. The company reported cash and short-term investments amounting to around $940 million, resulting in a net debt of approximately $1.55 billion. This net debt reduction marks the lowest leverage ratio for Nabors since 2008.

  • Net reduction in debt during the fourth quarter amounting to approximately $366 million, equating to about $25 per share.
  • Total reduction since December 31, 2024, is approximately $550 million.
  • Post-redemption, Nabors' long-term debt stands at about $2.15 billion.
  • The next debt maturity is scheduled for 2029.
  • Weighted average maturity of outstanding debt has increased to 5.3 years from 3.7 years as of September 30, 2025.

CEO Comments on Financial Strategy

Anthony G. Petrello, Chairman, President, and CEO of Nabors, commented on the redemption: “This redemption represents another meaningful step in advancing our commitment to debt reduction as a core driver of shareholder value. The combination of our opportunistic Parker Wellbore and Quail Tools transactions, together with strong operational execution, contributed to this outcome.” Petrello emphasized the significance of extending the company's financing runway to 2029, stating that these actions materially enhance their capital structure.

About Nabors Industries

Nabors Industries (NYSE: NBR) is a leading provider of advanced technology solutions for the energy industry. Operating in over 20 countries, Nabors aims to enable safe, efficient, and responsible energy production through innovative drilling, engineering, and automation technologies. The company's commitment to leveraging its core competencies positions it as a key player in the transition to a lower-carbon world.

To learn more about Nabors and its advancements in energy technology, visit www.nabors.com.

Forward-Looking Statements

This press release contains forward-looking statements as defined by the Securities Act of 1933. The actual results could differ significantly due to various risks and uncertainties as highlighted in Nabors’ SEC filings. Nabors does not commit to updating these statements.

Non-GAAP Disclaimer

This announcement includes a “non-GAAP” financial measure where net debt is calculated as total debt minus cash and short-term investments. Although this measure provides insight into the company’s liquidity, it should not be viewed in isolation or as a substitute for GAAP measures.

Investor Contacts

For investor inquiries, please contact:

  • William C. Conroy, CFA, Vice President of Corporate Development & Investor Relations, +1 281-775-2423
  • Kara K. Peak, Director of Corporate Development & Investor Relations, +1 281-775-4954

For additional materials, reach out to Nabors' corporate headquarters in Hamilton, Bermuda at +441-292-1510 or via email at investorrelations@nabors.com.

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