Segment Information

12 Months Ended

Dec. 31, 2024

Segment Information

Segment Information

Note 17 Segment Information

Our business consists of four reportable segments: U.S. Drilling, International Drilling, Drilling Solutions and Rig Technologies. Our reportable segments include operating segments that have been aggregated based on the nature of the products and services provided. The accounting policies of the segments are the same as those described in Note 2—Summary of Significant Accounting Policies. Inter-segment sales are recorded at cost or cost plus a profit margin. Management’s determination of our reporting segments was made on the basis of our strategic priorities within each segment and the differences in the products and services we provide. The reportable segments results are reviewed regularly by the chief operating decision maker (“CODM”), who is our Chairman and Chief Executive Officer, in deciding how to allocate resources and assess performance. Our CODM evaluates the segments’ operating performance based on adjusted operating income (loss), defined as net income (loss) before income taxes, interest expense, earnings (losses) from unconsolidated affiliates, investment income (loss), and other, net.

The following tables sets forth financial information with respect to our reportable operating segments:

	Year Ended
	December 31, 2024
		U.S. Drilling		International Drilling		Drilling Solutions		Rig Technologies		Total Reportable Segments		Other items (1)		Total
	(In thousands)
Operating revenues	$	1,028,122	$	1,446,092	$	314,071	$	201,677	$	2,989,962	$	(59,836)	$	2,930,126
Direct costs		(554,527)		(941,118)		(151,387)		(138,936)		(1,785,968)		43,557		(1,742,411)
Depreciation and amortization		(272,559)		(328,924)		(19,988)		(9,200)		(630,671)		(2,737)		(633,408)
Other segment expenses (2)		(24,755)		(68,192)		(30,309)		(33,298)		(156,554)		(149,826)		(306,380)
Total adjusted operating income (loss)	$	176,281	$	107,858	$	112,387	$	20,243		416,769	$	(168,842)		247,927
Capital expenditures	$	110,822	$	459,175	$	17,787	$	5,767	$	593,551	$	16,176	$	609,727

	Year Ended
	December 31, 2023
		U.S. Drilling		International Drilling		Drilling Solutions		Rig Technologies		Total Reportable Segments		Other items (1)		Total
	(In thousands)
Operating revenues	$	1,207,629	$	1,345,249	$	301,757	$	242,768	$	3,097,403	$	(91,422)	$	3,005,981
Direct costs		(647,251)		(892,182)		(145,139)		(181,644)		(1,866,216)		75,836		(1,790,380)
Depreciation and amortization		(271,310)		(347,786)		(18,634)		(7,865)		(645,595)		301		(645,294)
Other segment expenses (2)		(26,715)		(64,413)		(27,027)		(33,730)		(151,885)		(148,559)		(300,444)
Total adjusted operating income (loss)	$	262,353	$	40,868	$	110,957	$	19,529	$	433,707	$	(163,844)	$	269,863
Capital expenditures	$	136,311	$	357,609	$	25,721	$	21,229	$	540,870	$	12,038	$	552,908

	Year Ended
	December 31, 2022
		U.S. Drilling		International Drilling		Drilling Solutions		Rig Technologies		Total Reportable Segments		Other items (1)		Total
	(In thousands)
Operating revenues	$	1,100,614	$	1,199,282	$	243,349	$	195,129	$	2,738,374	$	(84,608)	$	2,653,766
Direct costs		(652,899)		(813,418)		(118,452)		(151,135)		(1,735,904)		69,900		(1,666,004)
Depreciation and amortization		(311,759)		(329,335)		(20,829)		(5,794)		(667,717)		2,645		(665,072)
Other segment expenses (2)		(27,450)		(57,408)		(26,200)		(29,294)		(140,352)		(138,018)		(278,370)
Total adjusted operating income (loss)	$	108,506	$	(879)	$	77,868	$	8,906	$	194,401	$	(150,081)	$	44,320
Capital expenditures	$	118,017	$	222,099	$	19,946	$	15,660	$	375,722	$	5,765	$	381,487

	Year Ended December 31,
	2024		2023		2022
	(In thousands)
Reconciliation of segment adjusted operating income (loss) to net income (loss):
Net income (loss)	$	(87,987)	$	49,904	$	(307,218)
Income tax expense (benefit)		56,947		79,220		61,536
Income (loss) before income taxes	$	(31,040)	$	129,124	$	(245,682)
Investment (income) loss		(38,713)		(43,820)		(14,992)
Interest expense		210,864		185,285		177,895
Other, net		106,816		(726)		127,099
Total adjusted operating income (loss) (3)	$	247,927	$	269,863	$	44,320

	December 31,		December 31,
	2024		2023
	(In thousands)
Total assets:
U.S. Drilling	$	1,049,650	$	1,239,765
International Drilling		2,348,590		2,227,308
Drilling Solutions		79,065		78,472
Rig Technologies		215,225		239,167
Total reportable segments		3,692,530		3,784,712
Other reconciling items (4)		811,771		1,493,253
Total	$	4,504,301	$	5,277,965

(1) Represents the elimination of inter-segment transactions related to our Rig Technologies operating segment and unallocated corporate expenses, assets and capital expenditures.

(2) Other segment expenses represent general and administrative expenses and research and engineering expenses.

(3) Management evaluates the performance of our operating segments using adjusted operating income (loss), which is a segment performance measure, because it believes that this financial measure reflects our ongoing profitability and performance. In addition, securities analysts and investors use this measure as one of the metrics on which they analyze our performance. A reconciliation to income (loss) is provided in the above table.

(4) Represents corporate-related assets.

The following table sets forth financial information with respect to Nabors’ operations by geographic area based on the location of service provided:

	Year Ended December 31,
	2024		2023		2022
	(In thousands)
Operating revenues
U.S.	$	1,283,785	$	1,477,774	$	1,323,531
Outside the U.S.		1,646,341		1,528,207		1,330,235
	$	2,930,126	$	3,005,981	$	2,653,766
Property, plant and equipment, net:
U.S.	$	1,165,677	$	1,304,686	$	1,437,333
Outside the U.S.		1,665,280		1,594,042		1,588,767
	$	2,830,957	$	2,898,728	$	3,026,100

During the years ended December 31, 2024, 2023 and 2022, $927.7 million, $821.1 million and $712.8 million of our consolidated operating revenue was from Saudi Arabia. No other individual country outside of the U.S. was material to our consolidated operating revenue during any of the three periods presented.

One customer accounted for approximately 31%, 26% and 26% of our consolidated operating revenues during the years ended December 31, 2024, 2023 and 2022, respectively, and is included primarily in our International Drilling reportable segment.