Joint Ventures

3 Months Ended

Mar. 31, 2026

Joint Ventures

Joint Ventures

Note 4 Joint Ventures

During 2016, we entered into an agreement with Saudi Aramco to form a joint venture known as SANAD to own, manage and operate onshore drilling rigs in the Kingdom of Saudi Arabia. SANAD is equally owned by Saudi Aramco and Nabors.

During 2017, Nabors and Saudi Aramco each contributed $20 million in cash for the purpose of capitalizing the joint venture upon formation. In addition, since inception Nabors and Saudi Aramco have each contributed a combination of drilling rigs, drilling rig equipment and other assets, including cash, with each of the party’s contributions having a value of approximately $394 million to the joint venture. The contributions were received in exchange for redeemable ownership interests that accrue interest annually, have a twenty-five year maturity and are required to be converted to authorized capital should certain events occur, including the accumulation of specified losses. In the accompanying condensed consolidated balance sheet, Nabors has reported Saudi Aramco’s share of authorized capital as a component of noncontrolling interest in equity and Saudi Aramco’s share of the redeemable ownership interests as redeemable noncontrolling interest in subsidiary, classified as mezzanine equity. As of March 31, 2026 and December 31, 2025, the amount included in redeemable noncontrolling interest was $489.1 million and $482.4 million, respectively. The accrued interest on the redeemable ownership interest is a non-cash financing activity and is reported as an increase in the redeemable noncontrolling interest in subsidiary line in our condensed consolidated balance sheet. The assets and liabilities included in the condensed balance sheet below are (a) assets that can either be used to settle obligations of the VIE or be made available in the future to the equity owners through dividends, distributions or in exchange of the redeemable ownership interests (upon mutual agreement of the owners) or (b) liabilities for which creditors do not have recourse to other assets of Nabors.

The condensed balance sheet of SANAD, as included in our condensed consolidated balance sheet, is presented below.

	March 31,		December 31,
	2026		2025
	(In thousands)
Assets:
Cash and cash equivalents	$	136,224	$	179,907
Accounts receivable		122,018		101,382
Other current assets		27,055		8,107
Property, plant and equipment, net		1,126,353		1,068,919
Other long-term assets		14,783		18,497
Total assets	$	1,426,433	$	1,376,812
Liabilities:
Accounts payable	$	101,370	$	102,543
Accrued liabilities		24,762		30,694
Other liabilities		65,813		62,306
Total liabilities	$	191,945	$	195,543