
	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
	(In thousands)

Operating revenues and Earnings (losses) from unconsolidated affiliates from continuing operations:(1)
Contract Drilling:(2)
U.S. Lower 48 Land Drilling	$	404,984		$	303,417		$	783,552		$	574,914
U.S. Land Well-servicing		164,140			104,860			314,396			202,851
U.S. Offshore		40,284			38,978			70,738			77,176
Alaska		32,336			43,385			73,651			93,179
Canada		87,974			60,759			260,417			176,315
International		265,231			267,007			527,708			512,351

Subtotal Contract Drilling(3)		994,949			818,406			2,030,462			1,636,786
Pressure Pumping(4)		265,930			—			523,789			—
Oil and Gas(5)		11,755			9,800			31,883			20,402
Other Operating Segments(6)(7)		162,491			107,749			283,874			203,262
Other reconciling items(8)		(70,913	)		(31,081	)		(108,243	)		(56,588	)

Total	$	1,364,212		$	904,874		$	2,761,765		$	1,803,862

Adjusted income (loss) derived from operating activities from continuing operations:(1)(9)
Contract Drilling:
U.S. Lower 48 Land Drilling	$	99,231		$	58,169		$	179,326		$	118,455
U.S. Land Well-servicing		16,526			3,231			27,649			10,416
U.S. Offshore		(1,059	)		8,104			(5,036	)		15,477
Alaska		8,288			12,388			19,307			26,345
Canada		(2,512	)		(9,497	)		36,480			5,385
International		35,851			64,972			71,348			118,551

Subtotal Contract Drilling(3)		156,325			137,367			329,074			294,629
Pressure Pumping(4)		43,888			—			87,603			—
Oil and Gas(5)		4,959			1,998			4,189			4,617
Other Operating Segments(6)(7)		13,641			8,317			19,779			15,207
Other reconciling items(10)		(43,971	)		(20,914	)		(74,754	)		(45,883	)

Total adjusted income derived from operating activities	$	174,842		$	126,768		$	365,891		$	268,570
Interest expense		(63,739	)		(65,293	)		(137,663	)		(132,062	)
Investment income (loss)		(969	)		2,314			11,318			(243	)
Gains (losses) on sales and retirements of long-lived assets and other income (expense), net		(5,572	)		(11,024	)		(11,601	)		(31,391	)

Income (loss) from continuing operations before income taxes		104,562			52,765			227,945			104,874
Income tax expense (benefit)		35,664			8,794			73,971			17,384
Subsidiary preferred stock dividend		750			—			1,500			—

Income (loss) from continuing operations, net of tax		68,148			43,971			152,474			87,490
Income (loss) from discontinued operations, net of tax		123,906			(909	)		121,736			(5,330	)

Net income (loss)		192,054			43,062			274,210			82,160
Less: Net income (loss) attributable to noncontrolling interest		394			559			1,063			1,661

Net income (loss) attributable to Nabors	$	192,448		$	43,621		$	275,273		$	83,821


	June 30,		December 31,
	2011		2010
	(In thousands)

Total assets:
Contract Drilling:(11)
U.S. Lower 48 Land Drilling	$	2,965,214	$	2,762,362
U.S. Land Well-servicing		748,151		630,518
U.S. Offshore		371,651		379,292
Alaska		287,086		313,123
Canada		1,012,559		1,065,268
International		3,489,873		3,279,763

Subtotal Contract Drilling		8,874,534		8,430,326
Pressure Pumping(4)		1,203,062		1,163,236
Oil and Gas(12)		951,127		805,410
Other Operating Segments(13)		551,266		539,373
Other reconciling items(10) (14)		535,663		708,224

Total assets	$	12,115,652	$	11,646,569


(1)		All information presents the operating activities of oil and gas assets in the Horn River basin in Canada and in the Llanos basin in Colombia as discontinued operations.

(2)		These segments include our drilling, well-servicing and workover operations on land and offshore.

(3)		Includes earnings (losses), net from unconsolidated affiliates, accounted for using the equity method, of $3.7 million and $2.9 million for the three months ended June 30, 2011 and 2010, respectively, and $3.9 million and $3.0 million for the six months ended June 30, 2011 and 2010, respectively.

(4)		Includes operating results of our Pressure Pumping operating segment, added to our lines of business during the third quarter of 2010, for the three and six months ended June 30, 2011.

(5)		Includes earnings (losses), net from unconsolidated affiliates, accounted for using the equity method, of $6.2 million and $3.2 million for the three months ended June 30, 2011 and 2010, respectively, and $21.4 million and $7.7 million for the six months ended June 30, 2011 and 2010, respectively.

(6)		Includes our drilling technology and top drive manufacturing, directional drilling, rig instrumentation and software, and construction and logistics operations.

(7)		Includes earnings (losses), net from unconsolidated affiliates, accounted for using the equity method, of $(.6) million and $2.7 million for the three months ended June 30, 2011 and 2010, respectively, and $.3 million and $5.8 million for the six months ended June 30, 2011 and 2010, respectively.

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

(9)		Adjusted income (loss) derived from operating activities is computed by subtracting direct costs, general and administrative expenses, depreciation and amortization, and depletion expense from Operating revenues and then adding Earnings (losses) from unconsolidated affiliates. Such amounts should not be used as a substitute for those amounts reported under GAAP. However, management evaluates the performance of our business units and the consolidated company based on several criteria, including adjusted income (loss) derived from operating activities, because it believes that these financial measures accurately reflect our ongoing profitability. A reconciliation of this non-GAAP measure to income (loss) before income taxes, which is a GAAP measure, is provided within the above table.

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


(11)		Includes $58.7 million and $54.8 million of investments in unconsolidated affiliates accounted for using the equity method as of June 30, 2011 and December 31, 2010, respectively.

(12)		Includes $178.0 million and $146.5 million investments in unconsolidated affiliates accounted for using the equity method as of June 30, 2011 and December 31, 2010, respectively.

(13)		Includes $64.7 million and $64.5 million of investments in unconsolidated affiliates accounted for using the equity method as of June 30, 2011 and December 31, 2010, respectively.

(14)		Includes $2.5 million and $1.9 million of investments in unconsolidated affiliates accounted for using the cost method as of June 30, 2011 and December 31, 2010, respectively.