Nabors: Gauging the Impact of Rig Counts in 4Q16

In 3Q16, the US rig count fell 35% over 3Q15. The US rig count reached its multi-year high in September 2014. Since then, it has fallen 69% as of November 18. By October 31, the international rig count fell 17% from a year ago. This is lower than the US rig count fall, which fell 22% in the past year until November 18.

In 2015, Nabors Industries’ (NBR) revenue share from the United States fell. In 2015, NBR’s US revenue share fell to 47% compared to 69% in 2014. NBR’s revenue share from international operations rose 53% in 2015 from 31% in 2014.

During the same period, NBR’s aggregate revenues fell 43%. By comparison, McDermott International’s (MDR) 2015 revenues rose 33% over 2014. NBR is only 0.02% of the iShares Russell 3000 ETF (IWV). The energy sector makes up 6.8% of IWV. To learn more about the US rig count and crude oil prices, read Market Realist’s Will Crude Oil Prices Crash after the US Presidential Election?.

Next, we’ll discuss Nabors Industries’ debt.