Question · Q4 2025
Derek Podhaiser with Piper Sandler inquired about the drivers behind Nabors' increasing Lower 48 rig count, specifically asking for more color on customer types, basins, and the mix between public and private operators, noting it bucks the trend seen from other drillers.
Answer
Tony Petrello, Chairman, President, and CEO, explained that Nabors is currently running 66 rigs, with 80% for public operators and a 20% gas rig count, which has doubled. He highlighted a clear trend towards longer laterals, with 3- and 4-mile laterals accounting for 19% of wells in West Texas in 2025, up from 12% in 2024, and a 25% growth in laterals exceeding three miles. Petrello noted that Nabors' PACE-X rigs are well-suited for these complex wells. Miguel Rodriguez, CFO, added that while the company is confident in its team, they maintain a cautious outlook for the second half of the year.
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