Nabors receives $250 million prepayment from Superior Energy

HAMILTON, Bermuda - Nabors Industries Ltd. (NYSE:NBR), an energy services company carrying total debt of $2.69 billion, has received full prepayment of a $250 million seller financing note from Superior Energy Services, Inc., the company announced Thursday.

The note was issued earlier this year as part of Nabors’ sale of Quail Tools, LLC to Superior Energy Services. Superior prepaid the note ahead of its scheduled maturity date.

Nabors plans to use the proceeds to reduce its gross debt, focusing specifically on outstanding notes that mature in 2028. The early repayment strengthens the company’s financial liquidity position.

"The Company intends to use the proceeds to continue reducing gross debt, concentrating on its outstanding notes maturing in 2028," Nabors stated in a press release.

Nabors Industries operates as a provider of technology for the energy industry with operations in more than 20 countries. The company specializes in drilling, engineering, automation, data science and manufacturing services, generating annual revenues of $3.03 billion. According to InvestingPro analysis, which offers comprehensive research reports on over 1,400 stocks, Nabors appears slightly undervalued at current market prices.

The transaction represents a continuation of Nabors’ stated strategy to reduce leverage and improve its balance sheet. The company has emphasized its commitment to deleveraging as part of its broader financial objectives.

The prepayment transaction was disclosed as part of Nabors’ ongoing financial reporting and corporate development activities.

In other recent news, Nabors Industries reported disappointing earnings for the second quarter of 2025. The company announced an earnings per share (EPS) of -$2.71, which was significantly below the forecast of -$0.82. Additionally, Nabors’ revenue did not meet expectations, coming in at $838.9 million compared to the projected $842.1 million. In a separate development, Nabors Industries will receive $250 million from Superior Energy Services as repayment for seller financing related to the acquisition of Quail Tools, LLC. The company plans to utilize these funds to reduce its debt, specifically targeting its 2027 and 2028 senior notes. These recent developments highlight the company’s ongoing financial challenges and strategic efforts to manage its debt.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.