Source: NBR
Investment Thesis
Nabors Industries (NBR) is one of my selected onshore driller companies, which also include Helmerich & Payne (HP) that I regularly cover on Seeking Alpha.
The onshore and the offshore drilling industry are comparable in many ways and suffer the same severe downturn. Oil prices aren't sufficient to support substantial industrywide CapEx, leaving demand relatively weak with more importantly eroding margins and lower rig utilization. However, the sequential L48 margins increase slightly this quarter from $10,170 in Q1'19 to now $10,222.
This situation is aggravated by a