Related-Party Transactions

12 Months Ended

Dec. 31, 2025

Related-Party Transactions

Related-Party Transactions

Note 13 Related-Party Transactions

Nabors and certain current and former key employees, including Mr. Petrello, entered into split-dollar life insurance agreements, pursuant to which we pay a portion of the premiums under life insurance policies with respect to these individuals and, in some instances, members of their families. These agreements provide that we are reimbursed for the premium payments upon the occurrence of specified events, including the death of an insured individual. Any recovery of premiums paid by Nabors could be limited to the cash surrender value of the policies under certain circumstances. As such, the values of these policies are recorded at their respective cash surrender values in our consolidated balance sheets. We have made premium payments to date totaling $6.6 million related to these policies. The cash surrender value of these policies of approximately $4.2 million and $4.7 million is included in other long-term assets in our consolidated balance sheets as of December 31, 2025 and 2024, respectively.

Under the Sarbanes-Oxley Act of 2002, the payment of premiums by Nabors under the agreements could be deemed to be prohibited loans by us to these individuals. Consequently, we have paid no premiums related to our agreements with these individuals since the adoption of the Sarbanes-Oxley Act.

In July 2023, Nabors Energy Transition Corporation II (“NETC II”) co-sponsored by Nabors and Greens Road Energy II LLC, completed its initial public offering of 30,500,000 units.  Greens Road Energy II LLC is owned by certain members of Nabors’ management team and board members.  Simultaneously with the closing of the IPO, NETC II completed the private sale of an aggregate of 9,540,000 warrants with a fair value of $1 per warrant, of which 4,348,000 warrants were purchased by related parties including certain Nabors officers, directors and employees, with the remainder being purchased by a subsidiary of Nabors. See Note 20—Special Purpose Acquisition Company for additional information.

Effective May 3, 2024, Nabors Energy Transition Solutions LLC, a Texas limited liability company and wholly owned subsidiary of Nabors transferred certain non-revenue producing energy transition assets to Hexegen LLC, a Delaware limited liability company. Remington Energy I, LLC, a Texas limited liability company owned and managed by Mr. Petrello (“Remington”) is also a member of and invested in Hexegen with seed capital and industry expertise. Hexegen plans to grow and scale an energy transition business using its members’ contributions. The arrangement provides for profit sharing among its members Nabors and Remington if certain hurdles are overcome and milestones are met and, at the highest level, would provide for a 90:10 split of profits above a defined threshold. 

In the ordinary course of business, we enter into various rig leases, rig transportation and related oilfield services agreements with our related parties, including our joint venture partner Saudi Aramco. Revenues from business transactions with these related parties totaled $1.1 billion, $0.9 billion and $0.8 billion for the years ended December 31, 2025, 2024 and 2023, respectively. Additionally, we had accounts receivable from these related parties of $121.0 million and $122.8 million as of December 31, 2025 and 2024.

In addition, Mr. Crane, one of our independent directors, is Chairman and Chief Executive Officer of Crane Capital Group Inc. (“CCG”), an investment company that indirectly owns a majority interest in several operating companies, some of which have provided services to us in the ordinary course of business, including international logistics and electricity. During the years ended December 31, 2025, 2024 and 2023, we incurred costs for these services of $14.8 million, $7.9 million and $13.2 million, respectively. We had accounts payable to these CCG-related companies of $0.5 million and $1.8 million as of December 31, 2025 and 2024.