nabors drilling mud pump in stock

Managed Pressure Drilling (MPD) is an adaptive process used to more precisely control the annular pressure profile throughout the wellbore while drilling. Converting conventional atmospheric drilling to a closed circulating loop system enables the driller to optimize mud weight and rate of penetration (ROP), more quickly detect influx and fluid loss, and discriminate wellbore ballooning and breathing. This results in lower mud product cost, less stuck pipe, and potentially fewer casing strings.

The MPD process is executed by controlling flow conditions to maintain bottom-hole pressure according to a modeled pore pressure and fracture gradient drilling window. While the benefits of conventional MPD techniques are well known offshore, the economics of engineering, mobilization and rig-up, and additional specialized personnel requirements are not supported in cost-sensitive drilling programs such as unconventional land drilling.

Nabors’ fit-for-purpose MPD equipment and integrated rig services enables a new concept to leverage today’s advanced land rig infrastructure including drives, manifolds, tanks, pumps, and gas handling equipment. Engineering and integrating MPD capabilities into the rig with unique automated workflows unlocks advantages in capital requirements, eliminates the need for pre-job surveys and engineering, and minimizes high mobilization and rig-up costs.

Through the advanced integration and automation of MPD services, the need for third-party service providers is also eliminated. Benefits include increased safety, less HSE exposure, lower cost, reduced pad footprint, more efficient rig moves, and more transparent performance analytics. For all of these reasons, scalability of MPD services is now more cost-effective for land drilling operations.

The Nabors rig fleet represents one of the world’s youngest and most advanced fleets in the gas drilling and land drilling industries.Based on our worldwide drilling experience, Nabors has engineered a series of programmable A/C electric, or PACE® rigs, that feature:

Nabors’ unique combination of integrated surface and downhole technologies, proprietary software and pad-optimal features creates more value for customers by significantly reducing hidden flat time and providing consistent performance. In 2017, Nabors converted its existing PACE®-B and PACE®-S rigs to a platform equal in capacity and functionality as the newer PACE® rigs. Powered by the SmartROS® platform, Nabors has approximately 100 pad-optimal PACE® series Nabors SmartRig® drilling systems.

Nabors owns and operates one of the world"s largest land-based drilling rig fleets and is a provider of offshore platform rigs in the United States and numerous international markets. Nabors also provides directional drilling services, performance tools, and innovative technologies for its own rig fleet and those of third parties. Leveraging our advanced drilling automation capabilities, Nabors" highly skilled workforce continues to set new standards for operational excellence and transform our industry.

The Baoji/Bomco F1000 Triplex mud pump has a max. working pressure of 5,000PSI and a 6-3/4" liner size. This model is the first choice for the medium and deep dr... More Info

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It"s been a while since we looked at Nabors Industries (NYSE:NBR). In fact the last article was in 2018, making it pretty ancient history and not a lot of use, except for a complete rundown on their business lines. So please refer to it for that alone. The current ramp up in shale drilling thanks to higher WTI prices brought land drillers to mind, and I decided it was time to reopen the book on land drillers, and recently covered Precision Drilling (PDS) in a public article, and followed up with this one on NBR. There are a few reasons for this renewed interest.

Technology is another reason. We"ve talked about NBR"s high spec "Smart" rigs being in demand. If they only had more of them. NBR makes up about 10% of the domestic rig count if you count only high spec rigs. All 48 are workingas of the end of Q3, and I expect to hear the same for Q4. NBR has a lot of value-added options for operators to consider that will pad the ticket. The Smart products - SmartDRILL, SmartSLIDE, and SmartNAV - are enhanced productivity tools that enable well placement and directional functions toincrease accuracy and functionality, saving time and money. Operators are conditioned from low oil prices to squeeze every bit of technology support out their providers, and tools like NBR"s are one of the big reasons drilling costs have declined to the extent they have.

Tony Petrello, NBR"s CEO, comments- On RigCLOUD, we provide the data collection, analytics and streaming that operators need to optimize planning, execution and rig performance. It"s an open ecosystem. It"s compatible with Nabors and third-party rigs. In short, Nabors consolidates apps and client data from all sources. It then delivers information in the clients’ preferred format to any destination. That kind of infrastructure was beyond the reach of all but the largest operators.

The report was pretty bad. Revenues were down by a third to $437 mm from Q2. Losses increased to ~$157 mm, a third higher than Q2. EBIDTA was also down by about a third to $114 mm, with most of this misery coming from the U.S. Land side. Canada and International were down, but by smaller amounts. The Drilling Solutions and Rig Technologies segments were also down commensurately as these services are tied largely to rigs.

Nabors and Weatherford (OTCPK:WFTLF) have formed an alliance to deliver Managed Pressure Drilling (MPD) service on Nabors rigs. This is a boost for both companies, but it fills in a gap for NBR without adding cost.

What is MPD you may ask? It can include a lot of things, but the main deliverable is the ability to manage pressure to the surface without losing control of the well. It enables the operator to drill ahead, make connections, and operate while fully or, as in most cases, partially working under pressure. This is often needed in shale drilling due to the naturally fractured state of the rock. Historically mud losses were very high in shale wells, which proved very damaging to the reservoir. Under MPD conditions, mud weights can be lower saving costs, volume losses (which must be made up to continue drilling which leads to more losses - I could tell you stories about this!) Mud losses are one of the leading causes for flat time and increased product costs to control them. Ask a drilling foreman what he hates most in the world, and mud losses will be in the top two or three comments made.

Petrello comments on the positive aspects of this alliance- "By accessing Weatherford"s proven track record in managed pressure drilling, we can accelerate to market the capabilities of our new MPD-ready SmartRigs. Weatherford"s capability in the LWD and RSS arena will expand our service offering and complement our new, leading edge MWD suite of Accusteer tools. By integrating these and other automated tools and services into Nabors" new Rigtelligent operating system, we expect to drive improved, consistent and reliable execution for our customers. We expect our alliance to result in a powerful value proposition that will accelerate market penetration, enhance both of our companies" returns and drive further growth in a key market.

$80 is a lot of money to plunk down on a drilling contractor whose fortunes are so closely tied to the rig count. You could see a lot of volatility if oil prices were to soften. Investing in a drilling contractor is not for the faint of heart.

There is also political risk hanging out there in this country and you can"t quantify it at this point, but a few years out the possibility exists for restricted drilling locations. I don"t really expect this, but that"s the trend that could develop if present policies remain unchanged.

I think Nabors" prospects are good. They have hit $100 in recent times (remember that 50:1 split now before you get too excited). With their market share, technology and service base, I expect their share prices to move back in that $100 direction. If WTI goes to and stays above $60 for very long, then NBR"s stock could double over the next year on increased cash from rising rig rates. Remember the fleet has shrunk, oil rigs don"t stack well for long, and no one is going to build new ones right now.

Since this article was first published in the Daily Drilling Report, my Marketplace service, NBR has risen about 10%. A couple of nice crude draws from the EIA, in the past couple of weeks, have likely contributed to this result. This is expected to be the trend this year as the economy re-awakens, but might hit a temporary stall thanks to Winter Storm Viola.

Nabors Industries owns and operates one of the world"s largest land-based drilling rig fleet and is a provider of offshore drilling rigs in the United States and multiple international markets. Nabors also provides directional drilling services, performance tools, and innovative technologies for its own rig fleet and those of third parties. Leveraging our advanced drilling automation capabilities, Nabors’ highly skilled workforce continues to set new standards for operational excellence and transform our industry.

Nabors is committed to providing equal employment opportunities to all employees and applicants and prohibiting discrimination and harassment of any type without regard to race, religion, age, color, sex, national origin, disability status, genetics, protected veteran status, sexual orientation, gender identity or expression, or any other characteristic protected by federal, state or local laws. This applies to all terms and conditions of employment including recruiting, hiring, placement, promotion, termination, layoff, recall, transfer, leaves of absence, compensation and training. To learn more about our Fair Employment practices, please refer to the Nabors Code of Conduct.

Overview: The Derrickhand is responsible for ensuring the smooth operation and support function of the mud module (sack area, mud pumps and mud pit / shakers). The Derrickhand works under the direction / supervision of the Driller, but reports directly to the Rig Manager.

Company OverviewNabors Industries owns and operates one of the world"s largest land-based drilling rig fleet and is a provider of offshore drilling rigs in the United States and multiple international markets. Nabors also provides directional drilling services, performance tools, and innovative technologies for its own rig fleet and those of third parties. Leveraging our advanced drilling automation capabilities, Nabors’ highly skilled workforce continues to set new standards for operational excellence and transform our industry.

Nabors is committed to providing equal employment opportunities to all employees and applicants and prohibiting discrimination and harassment of any type without regard to race, religion, age, color, sex, national origin, disability status, genetics, protected veteran status, sexual orientation, gender identity or expression, or any other characteristic protected by federal, state or local laws. This applies to all terms and conditions of employment including recruiting, hiring, placement, promotion, termination, layoff, recall, transfer, leaves of absence, compensation and training. To learn more about our Fair Employment practices, please refer to the Nabors Code of Conduct .

Title: DerrickhandOverview: The Derrickhand is responsible for ensuring the smooth operation and support function of the mud module (sack area, mud pumps and mud pit / shakers). The Derrickhand works under the direction / supervision of the Driller, but reports directly to the Rig Manager.

Key Relevant TasksPreventive maintenance and general repairs to the mud pumps and associatedequipment including changing out the mud pump liners, as requested by the

Working above the drilling floor, on the monkey board, guiding the drill pipeduring the tripping-in/tripping-out process, ensuring to wear proper safety

“Rainfall there totals 10 meters per year,” said Nabors senior vice president-engineering Padira Reddy. The mud tanks are enclosed, and, to prevent rain-water contamination, the Minimum Area AC rig (MAAC) is designed to catch all contaminated run-off.

To enhance safety, Nabors rotated the rig floor 90° to relocate the catwalk away from the wellhead. This also provides better access to the wellhead and BOP stack, the company said. The wide-open substructure design aims to facilitate moves over existing wellheads and simultaneous production and workover operations on adjacent wells during either drilling or rig moving. A 200-ton dual-direction BOP hoist system allows continuous access to the BOPs from either end of the substructure. The BOP hoist can bring the complete BOP stack fully outside the substructure for safe handling.

Rigs 702 and 703 are equipped for managed pressure drilling, Nabors says, and can maintain constant bottomhole pressure via continuous mud circulation while making connections.

The rig also employs Canrig’s RigWatch, a rig-monitoring system able to consolidate and provide in real time third-party information, including MWD, LWD, mudlogging and wireline.

Anyone in the mood for a positive article about an energy related company? I know I am. It seems like pessimism rules the roost these days, particularly when it comes to shale players. The market has left them all for dead, after taking back most of the nice money we"d made on them. Darned old market!!!! (Incidentally, in the Daily Drilling Report (DDR) we have a key list of names we are watching closely to hit incremental buy levels.)

Nabors Industries, (NYSE:NBR) is a land, jackup, and platform rig drilling contractor with a heavy exposure to the U.S. shale plays. They have 402 land drilling units as well as 35 platform and jackup rigs. That"s not a bad thing! Shale is here to stay, in fact, globally it"s expanding and will drive the business case for contract drillers like NBR. We will talk more about that a little later.

Let me make a quick case for NBR as a technology company. They actively improve the process of drilling, and I will go into some of the ways this impacts their customer perception later in this report. For now, suffice it to say that NBR is not just another drilling contractor who needs to submit absolute low bids to get work. They are one of the leaders in this field and get respect and contracts from oil companies because of it.

U.S. Drilling which comprises about a third of the company"s revenue and is made up largely of shale drilling currently. As of Q-2 there were 106 rigs working in this market out of 212 for a utilization of 50%. Breaking this down there are 112 super spec rigs, 94 of whichare working, an 84% utilization. They have signed contracts to upgrade 14 of the low spec (<1000,HP) rigs, 8 of should begin to contribute revenue later this year. Anthony Petrello"s, NBR"s CEO, comments- Coming into 2018, we plan to upgrade 8 rigs. In the second quarter, 3 of these deployed on top of the first one in the first quarter. That leaves 4 remaining, which should deploy by the end of the year. In summary, we have line of sight to 14 idle AC rigs to return to work by the middle of next year as super-spec rigs. In addition to the rigs I have mentioned, we have 42 idle AC rigs, which are upgradeable at a cost of $6 million to $8 million each.

This is an area where NBR begins to distinguish itself from the mom and pop drillers that dot the industry. It include enhanced, higher margin services like Managed Pressure Drilling, MPD, Directional Drilling (DD) and Logging While Drilling (LWD), and tubular services.

DD and LWD are unusual services for a drilling contractor to provide, and is certainly a differentiator for them in this space. We have discussed this type of value added service before in relation to some of the bigger OFS cos. The tab for tools like this far exceeds the rig"s day rate.

If you read through the capture below, you will see that NBR is a manufacturer of most of the key components of a drilling rig. The impact here is that have an advantage over other DC"s when it comes to rig upgrades. Taking one their low spec rigs to super spec level costs them $6-8 mm. At retail, these improvements would cost $10-12 mm.

And, there in lies the rub. Shale drilling is a merry-go-round you just can"t get off of as long as the price of WTI is high enough for people to keep loaning money to the shale drillers, or cap raises through stock sales are fully subscribed. With a reservoir decline rate that often approaches 70% per annum, you"ve got to keep sinking those wells. Period. End of story.

But, the conversation is changing by a trickle and then a flood. Other countries are going to start developing shale resources soon...believe it. They will need drilling rigs.

Well for one reason, Helmerich and Payne, (HP) is nearly $70 a share, and is within a few dollars of a multi year high. At the Daily Drilling Report, we like to buy distressed, but fixable companies at or near the bottom and ride the elevator back up with them. That fairly accurately describes NBR, and I think the market is going to start seeing some value here. The bet I am going to make is that NBR will be a $12.00 stock before H&P is a $140.00 stock.

NBR managed to turn cash flow positive in Q-2 in the face of still slack market conditions. Bucking a negative trend extending back to 2016. Improving rig rates and utilization should continue this trend. With expanding U.S. margins and International activity, along with growth in Drilling Solutions and additional improvement in Rig Technologies, we expect to exit this year generating strong annualized cash flows. The coming years should bring substantial cash flow generation, which we plan to dedicate to debt reduction. Let me say explicitly that the improvement in balance sheet leverage will remain a top priority.

Nabors sold 35 mm shares to pay down debt.The 9.25% notes shown below were paid off with the proceeds, and the rest funding Capex for rig upgrades. I expect this process to repeat itself in the next couple of years.

For the full year, we are targeting net debt in line with the end of 2017, excluding the impact of equity issues. With expanding U.S. margins and International activity, along with growth in Drilling Solutions and additional improvement in Rig Technologies, we expect to exit this year generating strong annualized cash flows. The coming years should bring substantial cash flow generation, which we plan to dedicate to debt reduction. Let me say explicitly that the improvement in balance sheet leverage will remain a top priority.

Nabors pays a 24 cent annual dividend for some strange reason. If any Nabors execs read this article when it goes into the Freemium-verse, cut it out and pay down debt. Your investors absolutely don"t care about this and wish your stock price were higher.

Key for me is that NBR sees a tightening up in supply, and a trend toward quality in vendor selection. Operators are drilling longer, and longer laterals in all shale plays. This increases drilling risk and quality of the equipment, and the training of crew come into play. U.S. Drilling increased by $14 million, driven by the Gulf of Mexico platform rig and a further improvement in Lower 48 margins. Lower 48 adjusted EBITDA rose by $6 million as daily margins increased by $450. Drilling margins for the Lower 48 were up from approximately $7,000 a day to slightly over $7,400, just beating the upper end of our expectations. The average contracted day rate for a fleet increased by $900, while changes to over time schedules and other compensation adjustments translated into a $300 increase in daily OpEx.

Nabors is moving toward modernizing its fleet of older rigs that don"t meet the smart rig specs so much in demand now that operators are trying to factory-ize well construction. Some of the cost is actually born by the oil cos, but must be fronted by NBR. Hence the fairly high running Capex going forward.

In a perfect world would I rather own H&P? Of course, Helmerich and Payne are the "Apple" of the drilling industry, but for $70/share, they are priced to perfection. Nabors presents a respectable bet on improving financials in the current oil rebound. At its current price of $5.56, or so it is near multi-year bottoms that includes the sharp crash of 2014. Running net losses the usual metrics for stock valuation aren"t helpful. One way to project price improvement in a stock is use EV/Sales. At the present this is 1.93 X. Revenue grew 45% YoY, so extending this out over the next year a share price of $8-9.00 share might be realized.

What does this mean for Nabors? We expect the incremental rigs to be accretive for our market share. We should capture a full quarter of the rate increases signed during the second quarter. Our highest tier rigs remain sold-out. In this quarter, approximately 40% of our smart rigs are scheduled to roll off contracts. We are taking those rigs to the leading-edge day rates.

In summary NBR looks like a company that is, or will soon be on the rise. The share price should respond quarter by quarter. Right now, the market is curiously discounting all good news with anything associated with shale drilling. I think that presents an opportunity to own a quality company with improving fortunes, at a discounted price. I have a buy in at $5.25, let"s see what tomorrow brings!