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HAMILTON, Bermuda - Nabors Industries Ltd. (NYSE:NBR), currently trading at $32.31 with a market capitalization of $471 million, announced Wednesday it has completed the sale of its Quail Tools subsidiary to Superior Energy Services for $600 million plus working capital adjustments.
The transaction, which closed today, consists of $375 million in cash and a $250 million seller note. Nabors expects to incur approximately $5 million in cash taxes on the sale after utilizing net operating loss carryforwards.
The deal will reduce Nabors’ net debt by more than 25%, representing a decrease of approximately $625 million from the $2.3 billion reported as of June 30, 2025. The company anticipates annual interest savings exceeding $50 million following the transaction.
Quail Tools is a provider of downhole tubulars to the U.S. oil and gas drilling market. The sale includes a Preferred Supplier Agreement under which Superior will be the preferred supplier of rental drill pipe and related products to Nabors.
"In Superior, we believe Dave Lesar and his talented team will enable Quail to achieve even greater success," said Anthony Petrello, Chairman, President and CEO of Nabors, in a press release statement.
Nabors will retain the remainder of the portfolio it acquired from Parker Wellbore in March, including tubular running services in the U.S. and Middle East, drilling rigs, and rig operations and management contracts. The company expects these retained businesses to generate full-year 2025 adjusted EBITDA of at least $55 million including realized post-closing synergies.
The transaction accelerates more than five years of anticipated free cash flow from the combined Parker businesses, according to the company.
Nabors engaged Haynes Boone as legal counsel for the transaction.
In other recent news, Nabors Industries Ltd. has expanded its board of directors to include David J. Tudor, bringing the total number of board members to eight. Tudor is currently the CEO and General Manager of Associated Electric Cooperative Inc., which supplies electricity to over 2 million consumers across three states. Additionally, S&P Global Ratings has revised its outlook on Nabors Industries to negative from stable. This change is due to increased refinancing risks related to the company’s significant upcoming debt maturities. Nabors faces the challenge of refinancing $700 million in senior priority guaranteed notes due in May 2027 and $390 million in senior guaranteed notes due in January 2028. S&P has affirmed its ’B-’ rating for Nabors, expressing concerns about potential liquidity constraints if the 2027 notes are not refinanced before May 2026. These developments highlight the financial and strategic adjustments Nabors is navigating.
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