Nabors Industries Ltd. (NYSE:NBR) Q4 2022 Earnings Call Transcript

Waqar Syed: Okay, fair enough. Yes, what I was trying to understand is in third quarter, the cash on the balance sheet at SANAD was about $300 million. So, a substantial part of your $450 million kind of cash on the balance sheet was in SANAD. But given most of the free cash flow is going to be outside of SANAD next — in 2023, your–

Tony Petrello: All of it and more. All of it and more.

Waqar Syed: Yes. All of it and more. Yes, absolutely. So, your ability to pay down debt and on other good stuff that you can do, your flexibility improves considerably in 2023.

Tony Petrello: That’s correct. That’s exactly right. You said it better than me, actually. The only thing I’d add to that is that as we get to steady state on the newbuilds with Saudi Arabia at the five cadence, there will be a point where that becomes self-sustaining as well because the cash from the rigs that are built online then start to underwrite the newbuilds and actually become accretive as well on a cash-on-cash basis. And that crossover point will come within two years or six — something like less than that, maybe sooner.

Waqar Syed: Yes, great. Looks like there are good days ahead. And — so best of luck. Thank you very much for your answers.

Tony Petrello: Thank you, Waqar.

Operator: And with no remaining questions, this will conclude our question-and-answer session. I would like to turn the conference back over to William Conroy for closing remarks.

William Conroy: Thank you all for joining us this afternoon. If you have any additional questions or want to follow-up, please contact us. Joe, we’ll end the call there. Thank you very much.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect your lines.