Financial Analysis

Note 14 Commitments and Contingencies Commitments Under the joint venture agreement with Saudi Aramco, the agreement requires us to backstop our share of the joint ventures obligations to purchase the first 25 drilling rigs in the event that there is insufficient cash in the joint venture or third-party financing available. Although we currently anticipate that the future rig purchase needs will be met by cash flows from the joint venture and/or third-party financing, no assurance can be given that the joint venture will not require us to fund our backstop. Leases Nabors and its subsidiaries occupy various facilities and lease certain equipment under various lease agreements. Rental expense relating to operating leases with terms greater than 30 days amounted to $19.5 million, $15.7 million and $17.2 million for the years ended December 31, 2025, 2024 and 2023, respectively. See Note 19Leases for more information on the minimum rental commitments under non-cancelable operating leases. Contingencies Income Tax We operate in a number of countries and our tax returns filed in those jurisdictions are subject to review and examination by tax authorities within those jurisdictions. We do not recognize the benefit of income tax positions we believe are more likely than not to be disallowed upon challenge by a tax authority. If any tax authority successfully challenges our operational structure, intercompany pricing policies or the taxable presence of our subsidiaries in certain coun …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Note 9 Debt Debt consisted of the following: As of December 31, 2025 2024 (In thousands) 7.375% senior priority guaranteed notes due May 2027 $ $ 700,000 7.50% senior guaranteed notes due January 2028 (1) 379,146 389,609 1.75% senior exchangeable notes due June 2029 250,000 250,000 9.125% senior priority guaranteed notes due January 2030 650,000 650,000 8.875% senior guaranteed notes due August 2031 550,000 550,000 7.625% senior priority guaranteed notes due November 2032 700,000 $ 2,529,146 $ 2,539,609 Less: current portion 377,492 Less: deferred financing costs 34,467 34,392 Long-term debt $ 2,117,187 $ 2,505,217 (1) A redemption notice for our 7.50% senior guaranteed notes due January 2028 was issued December 24, 2025 and such notes were redeemed on January 15, 2026. As of December 31, 2025, the principal amount and maturities of our primary debt for each of the five years following 2025 and thereafter are as follows: Paid at Maturity (In thousands) 2026 379,146 (1) 2029 250,000 (2) 2030 650,000 (3) Thereafter 1,250,000 (4) $ 2,529,146 (1) Represents our 7.50% senior guaranteed notes due January 2028 as a redemption notice was issued December 24, 2025. (2) Represents our 1.75% senior exchangeable notes due June 2029 and our 2024 Credit Agreement. (3) Represents our 9.125% senior priority guaranteed notes due January 2030. (4) Represents our 8.875% senior guaranteed notes due August 2031 and our 7.625% senior priority guaranteed notes due November 2032. During 2025, we full …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

In the following table, revenue is disaggregated by geographical region. The table also includes a reconciliation of the disaggregated revenue with the reportable segments: Year Ended December 31, 2025 U.S. Drilling International Drilling Drilling Solutions Rig Technologies Other Total (In thousands) Lower 48 $ 745,162 $ $ 256,203 $ 73,723 $ $ 1,075,088 U.S. Offshore 113,979 9,357 123,336 Alaska 117,503 7,967 4 125,474 Canada 46,696 2,142 6,287 55,125 Middle East & Asia 1,060,497 122,474 68,528 1,251,499 Latin America 372,967 88,185 4,110 465,262 Europe, Africa & CIS 117,605 26,955 1,384 145,944 Eliminations & other (57,035) (57,035) Total $ 976,644 $ 1,597,765 $ 513,283 $ 154,036 $ (57,035) $ 3,184,693 Year Ended December 31, 2024 U.S. Drilling International Drilling Drilling Solutions Rig Technologies Other Total (In thousands) Lower 48 $ 872,432 $ $ 172,832 $ 83,313 $ $ 1,128,577 U.S. Offshore 107,253 9,943 117,196 Alaska 48,437 2,447 50,884 Canada 1,847 6,331 8,178 Middle East & Asia 1,002,350 51,222 91,344 1,144,916 Latin America 360,092 74,225 14,310 448,627 Europe, Africa & CIS 83,650 1,555 6,379 91,584 Eliminations & other (59,836) (59,836) Total $ 1,028,122 $ 1,446,092 $ 314,071 $ 201,677 $ (59,836) $ 2,930,126 Year Ended December 31, 2023 U.S. Drilling International Drilling Drilling Solutions Rig Technologies Other Total (In thousands) Lower 48 $ 1,052,274 $ $ 196,252 $ 121,958 $ $ 1,370,484 U.S. Offshore 118,218 11,147 129,365 Alaska 37,137 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Note 6 Share-Based Compensation Total share-based compensation expense, which includes stock options and restricted shares, was $23.4 million, $16.5 million and $15.8 million for 2025, 2024 and 2023, respectively. Compensation expense related to awards of restricted shares totaled $23.4 million, $16.5 million and $15.8 million 2025, 2024 and 2023, respectively, which is included in general and administrative and research and engineering expenses in our consolidated statements of income (loss). Share-based compensation expense has been allocated to our various reportable segments. See Note 17Segment Information. In addition to the time-based restricted stock share-based awards, we provide performance share awards based on market conditions measured against a predetermined peer group (TSR Shares). We also provide Performance-Based Restricted Stock Units (PSUs) which are granted at the beginning of the one-year performance period and are earned at the end of the same period, depending on performance. Stock Option Plans As of December 31, 2025, we had several stock plans under which options to purchase our common shares could be granted to key officers, directors and managerial employees of Nabors and its subsidiaries. Options granted under the plans have fair market value on the date of the grant. Options granted under the plans generally are exercisable in varying cumulative periodic installments after one year. In the case of certain key executives and directors, options grant …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Note 5 Fair Value Measurements Fair value is the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date (exit price). We utilize market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market-corroborated, or generally unobservable. We primarily apply the market approach for recurring fair value measurements and endeavor to utilize the best information available. Accordingly, we employ valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. The use of unobservable inputs is intended to allow for fair value determinations in situations where there is little, if any, market activity for the asset or liability at the measurement date. We are able to classify fair value balances utilizing a fair value hierarchy based on the observability of those inputs. Under the fair value hierarchy: Level 1 measurements include unadjusted quoted market prices for identical assets or liabilities in an active market; Level 2 measurements include quoted market prices for identical assets or liabilities in an active market that have been adjusted for items such as effects of restrictions for transferability and those that are not quoted but are observable throu …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Note 10 Income Taxes Income (loss) before income taxes consisted of the following: Year Ended December 31, 2025 2024 2023 (In thousands) Bermuda (Domestic) $ (149,154) $ $ Foreign United States 462,873 33,302 215,306 Other jurisdictions 223,809 (64,342) (86,182) Income (loss) before income taxes $ 537,528 $ (31,040) $ 129,124 The Company has elected to prospectively adopt the guidance in ASU 2023-09. Prior to the adoption of ASU 2023-09, the Company disaggregated income (loss) between the United States and other jurisdictions. For the years ending December 31, 2024 and 2023, Bermuda is presented in Other foreign jurisdictions. Income tax expense (benefit) consisted of the following: Year Ended December 31, 2025 2024 2023 (In thousands) Current: Bermuda (Domestic) $ $ $ Foreign United States - Federal (3,696) 1,175 4,783 United States - State 8,818 32,326 55,769 Other foreign jurisdictions 60,829 1,762 2,787 Total current $ 65,951 $ 35,263 $ 63,339 Deferred: Bermuda (Domestic) $ $ $ Foreign United States - Federal 91,884 6,408 16,886 United States - State 11,586 13,854 (1,898) Other foreign jurisdictions (6,326) 1,422 893 Total deferred $ 97,144 $ 21,684 $ 15,881 Income tax expense (benefit) $ 163,095 $ 56,947 $ 79,220 The Company has elected to prospectively adopt the guidance in ASU 2023-09. Prior to the adoption of ASU No. 2023-09, the Company disaggregated income tax expense (benefit) between the United States, U.S. states and other jurisdictions. For the 2024 and 2023 yea …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Note 19 Leases We have evaluated the provisions of ASC 842, including certain practical expedients allowed. The significant practical expedients we adopted include the following: We elected the practical expedient to apply the transition approach as of the beginning of the period of adoption and not restate comparative periods; We elected to utilize the package of three expedients, as defined in ASC 842, whereby we did not reassess whether contracts existing prior to the effective date contain leases, nor did we reassess lease classification determinations nor whether initial direct costs qualify for capitalization; We elected the practical expedient to not capitalize any leases with initial terms of twelve months or less on our condensed consolidated balance sheet; For all underlying classes of leased assets, we elected the practical expedient to not separate lease and non-lease components; and We elected the practical expedient to continue to account for land easements (also known as rights of way) that were not previously accounted for as leases consistent with prior accounting until such contracts are modified or replaced, at which time they would be assessed for lease classification under ASC 842. Our leases primarily consist of office space and equipment used globally within our operations. We determine whether a contract is or contains a lease at inception of the contract based on answers to a series of questions that address whether an identified asset exists and whet …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements Adopted In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures, to enhance the transparency and decision usefulness of income tax disclosures (ASU 2023-09). This provides qualitative and quantitative updates to the rate reconciliation and income taxes paid disclosures, including consistent categories and greater disaggregation of information in the rate reconciliation and disaggregation by jurisdiction of income taxes paid. The new guidance is effective for fiscal years beginning after December 15, 2024. We adopted this ASU as required for the year ended December 31, 2025 on a prospective basis. The adoption requires us to provide additional disclosures related to our income taxes, but otherwise it does not materially impact our financial statements. Not Yet Adopted In November 2024, the FASB issued ASU 2024-03, Income Statement Reporting Comprehensive Income Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. The amendments in this update require disclosure, in the notes to financial statements, of specified information about certain costs and expenses including purchases of inventory, employee compensation, depreciation, intangible asset amortization and depreciation, deletion and amortization recognized as part of oil and gas producing activities. This ASU is effective for fiscal years beginning after December 15, 2026. The adoption of ASU …

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Note 13 Related-Party Transactions Nabors and certain current and former key employees, including Mr. Petrello, entered into split-dollar life insurance agreements, pursuant to which we pay a portion of the premiums under life insurance policies with respect to these individuals and, in some instances, members of their families. These agreements provide that we are reimbursed for the premium payments upon the occurrence of specified events, including the death of an insured individual. Any recovery of premiums paid by Nabors could be limited to the cash surrender value of the policies under certain circumstances. As such, the values of these policies are recorded at their respective cash surrender values in our consolidated balance sheets. We have made premium payments to date totaling $6.6 million related to these policies. The cash surrender value of these policies of approximately $4.2 million and $4.7 million is included in other long-term assets in our consolidated balance sheets as of December 31, 2025 and 2024, respectively. Under the Sarbanes-Oxley Act of 2002, the payment of premiums by Nabors under the agreements could be deemed to be prohibited loans by us to these individuals. Consequently, we have paid no premiums related to our agreements with these individuals since the adoption of the Sarbanes-Oxley Act. In July 2023, Nabors Energy Transition Corporation II (NETC II) co-sponsored by Nabors and Greens Road Energy II LLC, completed its initial public offering of …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

Note 18 Revenue Recognition We recognize revenue when control of a good or service promised in a contract (i.e., performance obligation) is transferred to a customer. Control is obtained when a customer has the ability to direct the use of and obtain substantially all the remaining benefits from that good or service. Contract drilling revenues are recorded over time utilizing the input method based on time elapsed. The measurement of progress considers the transfer of the service to the customer as we provide daily drilling services. We receive payment after the services have been performed by billing customers periodically (typically monthly). However, a portion of our revenues are recognized at a point-in-time as control is transferred at a distinct point in time such as with the sale of our top drives and other capital equipment. Within our drilling contracts, we have identified one performance obligation in which the transaction price is allocated. Disaggregation of revenue In the following table, revenue is disaggregated by geographical region. The table also includes a reconciliation of the disaggregated revenue with the reportable segments: Year Ended December 31, 2025 U.S. Drilling International Drilling Drilling Solutions Rig Technologies Other Total (In thousands) Lower 48 $ 745,162 $ $ 256,203 $ 73,723 $ $ 1,075,088 U.S. Offshore 113,979 9,357 123,336 Alaska 117,503 7,967 4 125,474 Canada 46,696 2,142 6,287 55,125 Middle East & Asia 1,060,497 122,474 68,528 1,2 …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

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. Results of Parkers operations have been included within U.S. Drilling, International Drilling and Drilling Solutions segments. Prior to its sale, Quail Tools operations were included within the Drilling Solutions segment. The accounting policies of the segments are the same as those described in Note 2Summary of Significant Accounting Policies. Inter-segment sales are recorded at cost or cost plus a profit margin. Managements 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), gain on disposition of Quail Tools, gain on bargain purchase and other, net. The following tables sets forth financial information with respect to our …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Note 2 Summary of Significant Accounting Policies Principles of Consolidation Our consolidated financial statements include the accounts of Nabors, as well as all majority owned and non-majority owned subsidiaries required to be consolidated under U.S. GAAP. All significant intercompany accounts and transactions are eliminated in consolidation. In addition to the consolidation of our majority owned subsidiaries, we also consolidate variable interest entities (VIE) when we are determined to be the primary beneficiary of a VIE. Determination of the primary beneficiary of a VIE is based on whether an entity has (1) the power to direct activities that most significantly impact the economic performance of the VIE and (2) the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. Our determination of the primary beneficiary of a VIE considers all relationships between us and the VIE. Our joint venture, SANAD, which is equally owned by Saudi Aramco and Nabors, has been consolidated. As we have the power to direct activities that most significantly impact SANADs economic performance, including operations, maintenance and certain sourcing and procurement, we have determined Nabors to be the primary beneficiary. See Note 12Joint Ventures. Also, as of December 31, 2025, we are the co-sponsor of a special purpose acquisition company (SPAC) and have determined it is a VIE. Nabors is the primary beneficiary of the SPAC as w …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Note 11 Shareholders Equity Common shares Our authorized share capital consists of 57.0 million shares of which 32.0 million are common shares, par value $0.05 per share, and 25.0 million are preferred shares, par value $0.001 per share. The preferred shares are issuable in one or more classes or series, full, limited or no voting rights, designations, preferences, special rights, qualifications, limitations and restrictions, as may be determined by the Board. On March 11, 2025, in connection with the completion of the Parker acquisition, we issued 4.8 million common shares to the former stockholders of Parker. See further discussion on the transaction in Note 4Acquisitions and Dispositions. From time to time, treasury shares may be reissued subject to applicable securities law limitations. When shares are reissued, we use the weighted-average-cost method for determining cost. The difference between the cost of the shares and the issuance price is added to or deducted from our capital in excess of par value account. No shares have been reissued during 2025, 2024 or 2023. Common stock warrants On May 27, 2021, the Board declared a distribution of warrants to purchase its common shares (the Warrants) to holders of the Companys common shares. Holders of Nabors common shares received two -fifths of a warrant per common share held as of the record date (rounded down for any fractional warrant). Nabors issued approximately 3.2 million Warrants on June 11, 2021 to shareholders of re …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Note 3 Parker Acquisition As discussed in Note 2Summary of Significant Accounting Policies, on March 11, 2025, we completed the Parker acquisition. Total consideration for the acquisition included cash consideration of $0.6 million and the issuance of 4.8 million shares of our common stock, which based on the closing price of our common stock of $37.50 on March 11, 2025, valued the purchase price consideration of the transaction at approximately $180.6 million. The acquisition has been accounted for as a business combination using the acquisition method. Under the acquisition method of accounting, the fair value of the consideration transferred is allocated to the tangible and intangible assets acquired and the liabilities assumed based on their estimated fair values as of the acquisition date. The fair value of the net assets acquired amounted to approximately $297.1 million at the date of acquisition, and as a result, we recorded a gain of $116.5 million related to the excess of the fair value of the net assets acquired over the acquisition price. The excess is referred to as a bargain purchase gain. This bargain purchase gain indicated that the fair value of the net assets acquired (which represents the price at which the assets would be exchanged between a willing buyer and seller) was in excess of the amount for which we acquired such net assets. Before recognizing the bargain purchase gain, we reassessed the methods used in the acquisition accounting and verified that w …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

Note 9 Commitments and Contingencies Contingencies Income Tax We operate in a number of countries and our tax returns filed in those jurisdictions are subject to review and examination by tax authorities within those jurisdictions. We do not recognize the benefit of income tax positions we believe are more likely than not to be disallowed upon challenge by a tax authority. If any tax authority successfully challenges our operational structure, intercompany pricing policies or the taxable presence of our subsidiaries in certain countries, if the terms of certain income tax treaties are interpreted in a manner that is adverse to our structure, or if we lose a material tax dispute in any country, our effective tax rate on our worldwide earnings could change substantially. In certain jurisdictions we have recognized deferred tax assets and liabilities. Judgment and assumptions are required in determining whether deferred tax assets will be fully or partially utilized. When we estimate that all or some portion of certain deferred tax assets such as net operating loss carryforwards will not be utilized, we establish a valuation allowance for the amount we determine to be more likely than not unrealizable. We continually evaluate strategies that could allow for future utilization of our deferred assets. Any change in the ability to utilize such deferred assets will be accounted for in the period of the event affecting the valuation allowance. If facts and circumstances cause us to c …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Note 6 Debt Debt consisted of the following: June 30, December 31, 2026 2025 (In thousands) 7.50% senior guaranteed notes due January 2028 $ $ 379,146 1.75% senior exchangeable notes due June 2029 250,000 250,000 9.125% senior priority guaranteed notes due January 2030 650,000 650,000 8.875% senior guaranteed notes due August 2031 550,000 550,000 7.625% senior priority guaranteed notes due November 2032 700,000 700,000 $ 2,150,000 $ 2,529,146 Less: current portion 377,492 Less: deferred financing costs 29,724 34,467 Long-term debt $ 2,120,276 $ 2,117,187 During the six months ended June 30, 2026, we redeemed the $379.1 million remaining balance of the 7.50% senior guaranteed notes due January 2028 for approximately $393.4 million in cash, including principal and $14.2 million in accrued and unpaid interest. In connection with the redemption, we recognized a $1.7 million loss for the six months ended June 30, 2026, which is included in Other, net in our condensed consolidated statement of income (loss). Credit Agreement On June 17, 2024, Nabors Delaware amended and restated its existing credit agreement (as amended and restated, the 2024 Credit Agreement). Under the 2024 Credit Agreement, the lenders have committed to provide to Nabors Delaware an aggregate principal amount of revolving loans at any time outstanding not in excess of $350.0 million, and the issuing banks have committed to provide a standalone letter of credit tranche that permits Nabors Delaware to issue reimbu …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

In the following table, revenue is disaggregated by geographical region. The table also includes a reconciliation of the disaggregated revenue with the reportable segments: Three Months Ended June 30, 2026 U.S. Drilling International Drilling Drilling Solutions Rig Technologies Other Total (In thousands) Lower 48 $ 206,893 $ $ 39,845 $ 20,016 $ $ 266,754 U.S. Offshore 17,960 1,727 19,687 Alaska 27,606 2,402 30,008 Canada 16,415 495 1,239 18,149 Middle East & Asia 282,069 34,000 15,425 331,494 Latin America 106,522 24,317 773 131,612 Europe, Africa & CIS 27,491 7,854 32 35,377 Eliminations & other (18,286) (18,286) Total $ 252,459 $ 432,497 $ 110,640 $ 37,485 $ (18,286) $ 814,795 Six Months Ended June 30, 2026 U.S. Drilling International Drilling Drilling Solutions Rig Technologies Other Total (In thousands) Lower 48 $ 398,856 $ $ 75,505 $ 35,188 $ $ 509,549 U.S. Offshore 38,888 3,430 42,318 Alaska 55,859 4,684 60,543 Canada 34,054 1,067 2,676 37,797 Middle East & Asia 556,518 66,476 24,963 647,957 Latin America 207,079 48,569 1,702 257,350 Europe, Africa & CIS 54,342 17,131 178 71,651 Eliminations & other (28,822) (28,822) Total $ 493,603 $ 851,993 $ 216,862 $ 64,707 $ (28,822) $ 1,598,343 Three Months Ended June 30, 2025 U.S. Drilling International Drilling Drilling Solutions Rig Technologies Other Total (In thousands) Lower 48 $ 190,087 $ $ 99,213 $ 18,934 $ $ 308,234 U.S. Offshore 31,380 1,326 32,706 Alaska 33,971 2,654 4 36,629 Canada 12,472 455 1, …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Note 8 Fair Value Measurements Fair value is the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date (exit price). We utilize market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market-corroborated, or generally unobservable. We primarily apply the market approach for recurring fair value measurements and endeavor to utilize the best information available. Accordingly, we employ valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. The use of unobservable inputs is intended to allow for fair value determinations in situations where there is little, if any, market activity for the asset or liability at the measurement date. We are able to classify fair value balances utilizing a fair value hierarchy based on the observability of those inputs. Under the fair value hierarchy: Level 1 measurements include unadjusted quoted market prices for identical assets or liabilities in an active market; Level 2 measurements include quoted market prices for identical assets or liabilities in an active market that have been adjusted for items such as effects of restrictions for transferability and those that are not quoted but are observable throu …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Recent accounting pronouncements Adopted In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures, to enhance the transparency and decision usefulness of income tax disclosures. This provides qualitative and quantitative updates to the rate reconciliation and income taxes paid disclosures, including consistent categories and greater disaggregation of information in the rate reconciliation and disaggregation by jurisdiction of income taxes paid. The new guidance is effective for fiscal years beginning after December 15, 2024. We adopted this ASU as required for the year ended December 31, 2025 on a prospective basis. The adoption requires us to provide additional disclosures related to our income taxes, but otherwise it does not materially impact our financial statements. Not Yet Adopted In November 2024, the FASB issued ASU 2024-03, Income Statement Reporting Comprehensive Income Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. The amendments in this update require disclosure, in the notes to financial statements, of specified information about certain costs and expenses including purchases of inventory, employee compensation, depreciation, intangible asset amortization and depreciation, depletion and amortization recognized as part of oil and gas producing activities. This ASU is effective for fiscal years beginning after December 15, 2026. The adoption of ASU 2024-03 requ …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Note 13 Revenue Recognition We recognize revenue when control of a good or service promised in a contract (i.e., performance obligation) is transferred to a customer. Control is obtained when a customer has the ability to direct the use of and obtain substantially all of the remaining benefits from that good or service. Contract drilling revenues are recorded over time utilizing the input method based on time elapsed. The measurement of progress considers the transfer of the service to the customer as we provide daily drilling services. We receive payment after the services have been performed by billing customers periodically (typically monthly). However, a portion of our revenues are recognized at a point-in-time as control is transferred at a distinct point in time such as with the sale of our top drives and other capital equipment. Within our drilling contracts, we have identified one performance obligation in which the transaction price is allocated. Disaggregation of revenue In the following table, revenue is disaggregated by geographical region. The table also includes a reconciliation of the disaggregated revenue with the reportable segments: Three Months Ended June 30, 2026 U.S. Drilling International Drilling Drilling Solutions Rig Technologies Other Total (In thousands) Lower 48 $ 206,893 $ $ 39,845 $ 20,016 $ $ 266,754 U.S. Offshore 17,960 1,727 19,687 Alaska 27,606 2,402 30,008 Canada 16,415 495 1,239 18,149 Middle East & Asia 282,069 34,000 15,425 331,494 La …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Note 12 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. Results of Parkers operations have been included within U.S. Drilling, International Drilling and Drilling Solutions segments. The accounting policies of the segments are the same as those described in Note 2Summary of Significant Accounting Policies. Inter-segment sales are recorded at cost or cost plus a profit margin. Managements 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), gain on bargain purchase and other, net. The following table sets forth financial information with respect to our reportable operating segments: Three Months Ended June 30, 2026 U.S. Drilling International Drilling Drilling Solutions Rig Technolo …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Note 2 Summary of Significant Accounting Policies Interim Financial Information The accompanying unaudited condensed consolidated financial statements of Nabors have been prepared in conformity with generally accepted accounting principles in the United States (U.S. GAAP) applicable to interim reporting. Pursuant to the rules and regulations of the Securities and Exchange Commission (SEC or Commission), certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been omitted. Therefore, these financial statements should be read together with our annual report on Form 10-K for the year ended December 31, 2025 (2025 Annual Report). In managements opinion, the unaudited condensed consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) necessary to state fairly our financial position as of June 30, 2026 and the results of operations, comprehensive income (loss), cash flows and changes in equity for the periods presented herein. Interim results for the six months ended June 30, 2026 may not be indicative of results that will be realized for the full year ending December 31, 2026. Principles of Consolidation Our condensed consolidated financial statements include the accounts of Nabors, as well as all majority-owned and non-majority owned subsidiaries consolidated in accordance with U.S. GAAP. All significant intercompany accounts and transactions are eliminat …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Note 7 Shareholders Equity Common share issuance On March 11, 2025, in connection with the completion of the Parker acquisition, we issued 4.8 million common shares to the former stockholders of Parker. See further discussion on the transaction in Note 3Parker Acquisition. Common share warrants On May 27, 2021, the Board declared a distribution of warrants to purchase its common shares (the Warrants) to holders of the Companys common shares. Holders of Nabors common shares received two -fifths of a warrant per common share held as of the record date (rounded down for any fractional warrant). Nabors issued approximately 3.2 million Warrants on June 11, 2021 to shareholders of record as of June 4, 2021. The Warrants expired on June 11, 2026. 1.1 million common shares were issued as a result of exercises of Warrants. The Warrants were recognized as derivative liabilities in accordance with ASC 815-40. Accordingly, the Company recognized the Warrant instruments as liabilities at fair value and adjusted the instruments to fair value at each reporting period. The liabilities were subject to re-measurement at each balance sheet date until exercised, and any change in fair value was recognized in the Companys statement of operations. On December 31, 2025, the fair value of the Warrants was approximately $0.7 million. During the three and six months ended June 30, 2026, approximately $1.0 million and $0.7 million of gain has been recognized for the change in the liability and included …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing