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How Much the Rig Count Could Affect NBR in 2Q17

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Rig count

In 1Q17, the US rig count rose 25% compared to 4Q16. Since March 31, 2017, the US rig count has risen another 13% as of the week ended June 16, 2017.

On May 31, 2017, the international rig count rose by one compared to April 2017. A higher rig count could increase Nabors Industries’ (NBR) revenue and earnings in 2Q17.

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Nabors Industries’ revenue share

In 1Q17, Nabors Industries’ revenue share in North America remained unchanged at 76% compared to 4Q16. Compared to a year earlier, however, NBR’s North American revenue share rose from 69% to 76%. NBR’s revenue share from international operations was 24% in 1Q17.

From 4Q16 to 1Q17, NBR’s aggregate revenue rose 4%. In comparison, Superior Energy Services’ (SPN) 1Q17 revenue rose 13% over 4Q16. Baker Hughes’ (BHI) revenue fell 6%, while Helmerich & Payne’s (HP) revenue rose 10% during the same period.

NBR makes up only 0.01% of the iShares Russell 3000 ETF (IWV). IWV has risen 18% in the past year, compared to the 21% fall in NBR’s stock price.

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