Modern Drilling Rig Technology & CapabilitiesMarch 3, 2017

Presented by:

Todd Fox

VP, Operations- U.S. Southern Region

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Forward-Looking Statements

This presentation discusses certain forward-looking statements including, but not limited to, EBITDA and Free Cash Flow projections on a consolidated

and segment basis, new rig technology, rig margin improvement potential, job growth opportunities, cost savings, and expectations regarding the

performance of our industry, our current and future markets and demand for our products and services, and other statements related to our future

performance. Such statements, including statements relating to matters that are not historical facts, are “forward-looking statements” within the meaning

of the safe harbor provisions of Section 27A of the Securities Act, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.

These “forward-looking statements” are based on an analysis of currently available competitive, financial and economic data and our operating plans and

expectations. They are inherently uncertain and investors should recognize that events and actual results could turn out to be significantly different from

our expectations. By way of illustration, when used in this document, words such as “anticipate,” “believe,” “expect,” “plan,” “intend,” “forecast”,

“estimate,” “project,” “will,” “should,” “could,” “may,” “predict,” “illustrative,” “hypothetical,” “target” and similar expressions are intended to identify forward-

looking statements.

You should consider the following key factors when evaluating these forward-looking statements:

• fluctuations and volatility in worldwide prices of and demand for oil and natural gas;

• fluctuations in levels of oil and natural gas exploration and development activities;

• fluctuations in the demand for our services;

• competitive and technological changes and other developments in the oil and gas and oilfield services industries;

• our ability to complete, and realize the expected benefits of, strategic transactions, including our joint venture with Saudi Aramco;

• the existence of operating risks inherent in the oil and gas and oilfield services industries;

• the possibility of changes in tax and other laws and regulations;

• the possibility of political or economic instability, civil disturbance, war or acts of terrorism in any of the countries in which we do business;

• general economic conditions, including the capital and credit markets; and

• our expectations regarding future trends of EBITDA, net debt and free cash flow.

These statements are based on management’s current expectations and estimates; actual results may differ materially due in part to:

• risks related to fluctuations in oil and natural gas prices which adversely affect drilling activity and our revenues, cash flows and profitability;

• risks related to turmoil in the global economy and the impact on our results of operations and financial conditions;

• risks related to our highly competitive industry and inherent risks of loss inherent to the nature of our operations;

• the risk that we may record additional losses or impairment charges related to sold or idle rigs;

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Forward-Looking Statements

• the loss of one or a number of our large customers could have a material adverse effect on our business, financial condition and results of operations;

• the risk that our financial and operating flexibility could be affected by our long-term debt and other financial commitments;

• the risk that our long-term debt and other financial commitments could be affected by our long-term debt; and

• the risk of any unfavorable change in tax, environmental or other governmental regulation.

In addition, you should not place undue reliance on our financial guidance and guidance related to rig margin improvement potential, job growth

opportunities and cost savings because they are based on significant assumptions related to oil and gas prices and exploration activities and acceptance

of our new technologies, all of which are subject to significant fluctuations and drivers that our outside of our control.

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Non-GAAP Financial Measures Disclaimer

This presentation refers to certain non-GAAP financial measures, such as Adjusted EBITDA (or EBITDA), Free Cash Flow and Net Debt. Adjusted

EBITDA is computed by subtracting the sum of direct costs, general and administrative expenses and research and engineering expenses from

operating revenues. The EBITDA forecasts presented herein exclude certain non-cash charges as we are unable to estimate with reasonable

certainty unusual or unanticipated charges, expenses or gains. Free Cash Flow is defined as net cash from operations less capital expenditures. Net

Debt is calculated as Total Debt minus the sum of cash and cash equivalents and short term investments. Adjusted EBITDA, Free Cash Flow and Net

Debt are non-GAAP financial measures and should not be used in isolation or as a substitute for the amounts reported in accordance with generally

accepted accounting principles (“GAAP”). However, management evaluates the performance of our operating segments and the Company’s

consolidated results based on several criteria, including adjusted EBITDA, because it believes that this financial measure accurately reflects our

ongoing profitability and performance. Management uses free cash flow and net debt as measures of our overall liquidity. In addition, securities

analysts and investors use these measures as some of the metrics on which they analyze our performance.

For a reconciliation of historical adjusted EBITDA to income (loss) from continuing operations before income taxes, which is the most closely

comparable GAAP measure, see the Investor Relations page on our website. We do not provide a reconciliation for non-GAAP estimates on a

forward-looking basis where we are unable to predict with reasonable certainty the ultimate outcome of certain significant items without unreasonable

effort. This is due to the uncertainty and variability of the nature and amount of certain charges, expenses or gains that would impact the most directly

comparable forward-looking GAAP financial measure, that have not yet occurred, are out of the company’s control and/or cannot be reasonably

predicted. However, we expect the variability of the above items to have a significant, and potentially unpredictable, impact on our future GAAP

financial results.

• Nabors Overview

• International Footprint

• Evolution of Rigs and Drilling Technology

• Benefits of Integration of Services

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Presentation Overview

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Nabors Global Footprint

430+ Land Rigs 42Offshore rigs 23Countries

12,000+ Employees 60+ Nationalities

Active in Major O&G Basins Internationally

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Company Highlights

• Over 100 years of land drilling experience, beginning in the US

• Fulfill our customers’ most challenging drilling projects

• Operating in the MENA region for over four decades

• Specialize in designing fit-for-purpose rigs and operating in challenging

environments

• Present in nearly all major producing basins globally

Nabors Global Footprint

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Nabors Global Footprint

International as a Key Differentiator

1. Excludes 500HP or smaller rigs, as of Q3/16

2. As of Q3/16

• Established international portfolio and infrastructure is the major differentiator from peers,

mainly U.S.-centric

• Significant international portfolio, with the size and infrastructure of a standalone company

• Fleet approx. 3x larger than combined int’l fleet of U.S. peers(2)

• High-spec fleet with 89% of the rigs being 1500HP or larger

• Proven track record to deliver performance in complex environments

11%

89%

145

Rigs(1)

< 1500HP

≥ 1500HP

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Western Hemisphere

Leadership Position for High-Spec Rigs in Key Countries

Argentina

Colombia

Mexico

One of the leading providers of high-spec rigs

Maintained high utilization during challenging downturn

NDS projects under implementation for Directional Drilling and MPD

Currently pursuing opportunities for additional rigs in 2017

Currently the only international driller working for NOC Ecopetrol

First international market to deploy PACE®-X rigs (6 added in 2015)

Strong market recovery expected for 2017

Firm commitments to reactivate 3 rigs in 2017

Strong footprint as the pioneer of the Offshore Modular Rig concept

Market deeply affected by the current downturn

Nabors is well positioned to activate rigs once market recovers

Expecting to reactivate 3 to 5 Nabors platform rigs in 2017

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Eastern Hemisphere

Leadership Position for High-Spec Rigs in Key Countries

Algeria

Kuwait

Kazakhstan

Largest and top performing international contractor in country

Stable market during 2014 - 2016 cycle

Challenging outlook in the short-term

Several projects under discussions with various operators

Top international contractor with 3 each 3000HP high-spec rig fleet

Long-standing relationship with NOC supports the potential to increase share

Highest near-term potential for rig additions in the Middle East (40+ tenders)

Offering new and existing rigs with initial deployments in 2017

Strategic alliance with major IOC secures our long-term position in country

Focus on high-spec market; the only international driller in Tengiz Field

Commissioned 2 high-spec 3000HP rigs engineered and designed in-house

Well positioned to capture future opportunities

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Saudi Arabia

Market Leader Focused on Gas & Exploration Drilling

1. Nabors internal estimates as of Q3/16

2. High Spec = 2000HP or bigger rigs

3. Lower Spec = 1500HP of smaller rigs

• Historical leadership position with focus on Gas & Exploration rigs

• Favorable market outlook as activity remains resilient and tenders pending

• Performing field trials for DD & MWD services (NDS)

• Contracted and performing Managed Pressure Drilling & Continuous

Circulation Services (NDS)

Land Rigs(1)

(% Market Share)

Others

(#10)

Top 2

Peers

Nabors

Market Share by Rig Spec(1)

(Land Rigs Only)

35%

32%

32%

1High Spec(2)

71%

20%

9%

1Lower Spec(3)

22%

16%

11%

51%

Others

(#10)

Nabors

Peer 1

Peer 2

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• Joint Venture was initiated as part of Saudi Arabia’s “2030

Vision” and Saudi Aramco’s “In-Kingdom Total Value Add”

(IKTVA) Program

• Major Saudi Aramco’s goals are to increase localization to 70%

by 2021, while:

- Serving Saudi Aramco’s needs

- Exporting to the region & the world

- Growing & diversifying the Kingdom’s economy

Saudi Arabia Joint Venture

A Strategic Partnership for the Future

Source: Saudi Aramco In-Kingdom Total Value Add presentation; Saudi Aramco website

• Result is a best-in-class land drilling company with a robust platform for long-term growth

with superior technology and a highly capable national workforce

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1. Solid footprint in major producing countries

2. High flexibility to upgrade and re-deploy rigs at substantial lower cost

3. Most scalable platform among peers for business growth

4. Tendering activity expected to increase in 2017

5. Existing infrastructure to increase penetration for NDS services

Takeaways

High-Class Portfolio with Growth Potential in Key Global Markets

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Flashback to 1995

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Voice:

− Sprint

− Worldcom

− Pacific Bell

− Ameritech

− AT&T

Internet (ISP’s):− AOL

− MSN

− Earthlink

− Netscape

− Compuserve

Communication in 1995

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• Data = Pager Plans:

− Skytel

− Weblink

− Arch Wireless

− Metrocall

Internet/Phone/Data:

− Comcast

− AT&T

− Time Warner

− Century Link

− Charter

− Verizon

− Cox

− Optimum

− Frontier

− Suddenlink

Communication Today

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• Those who owned the wire, fiber, and satellites now

control the internet.

• Integrated services made better sense to consumers.

• Customers preferred the ease of one invoice.

• In many cases, the systems are now linked.

• Additional add-ons & automation are now possible.

Lessons Learned

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• Drilling Rig

• TD Rental

• EDR Rental

• Directional Services

• MWD

• Mud Logging

• Mud Engineer

• Drill Bit

• Drilling Fluid

Drilling Rig Operation of 1995

• Choke

• Rotating Head

• BOP Tester

• Phone/Pager

• Rig Site Housing

• Solids Control

• Gas Buster

• Nipple Up

• Etc.

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• Drilling Contractor as integrated service provider:

− Rig & Top Drive

− MWD/DD

− Digital Mud Logging

− Casing Running

− Super/Auto Choke

− BOP Testing

− BOP Nipple Up

− Rotating Head

• Drilling Fluid/Cuttings disposal contractor

• Bit contractor

• On-site housing contractor/Other contractor

Drilling Rig Operation of Today/Future

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Nabors’ Solutions

1. Wellbore Placement Capabilities

2. Measurement of Rig Performance

3. Real-Time Data Management

Major Operator’s Challenges

1. Reduce the costs of wells

2. Increase Reservoir Contact

3. Better Wells!!

Global Performance Driller of Choice

Embracing Challenge to Address Customer Needs

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Technological Transformation of Drilling Rigs

Similar to Evolution of the Airline Pilot

1960’s cockpits completely analog and

required significant effort from pilots

Old rigs had analog gauges and drillers

relied on brake “feel” to perform tasks

Drillers cabins now have interactive HMIs

and automated functions

Glass cockpits now have digital gauges

and automate most of the functions

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The Future of Drilling Has Arrived at Nabors

All major decisions for airlines are now decided in control centers

RIGLINE 24/7 will have an increasingly proactive role in operations

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Nabors Drilling Solutions – Four Product Lines

Supported by Nabors IP Portfolio

Performance Drilling Tools

ROCKit® REVit®

DrillsmartTMRigWatch®

AccuSteer ®

MWDRSS Tool

Wellbore Placement

Managed Pressure

Drilling

Non Stop Driller BOP Testing

Tubular Services

MPD-Ready™ Other Services

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1

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4

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1. Performance Drilling

Training

Directional, MPD, CRT

2. Nabors’ Communication

Loop

RigWatch® Logging System

3. Top Drive

ROCKit®-Pilot, REVit®, ECM

enabled

4. Integrated Rig Sensors2

5. Mud Pump Optimization

Integrated mud/gas separator

Reduced shock and vibration

6. Compatibility with Automated

Catwalk

7. RigWatch® Daily KPI’s

Directional, MPD, CRT

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The SMARTRig™ is a Directional-Ready™ Rig

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Nabors is Meeting the Most Demanding Well and

Pad Designs

Well design trends Client requirements Nabors Current Pad-Optimal SMARTRig™ Fleet

Longer well

laterals3

Racking capacity to handle

increased length of drill pipe

Mud system able to pump

increasingly higher flow rates

Higher power and torque

requirements

Improved

drilling

performance4

Able to maintain consistent

performance during key

activities e.g., drilling, rig-

moves, tripping, connections

More

simultaneous

operations

during rig moves

1 Ability to walk without

handling pipe racks and

move loads over existing

well heads

Increasing

number of

wells per pad2

Ability to walk greater

distances in X and Y directions

Nabors Proprietary Side-saddle Design

Unmatched for High-density Pad Drilling

Conventional

Design

Side-Saddle

Design

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Cut-out permits

moves over wellheads

BOP access from

both sides

BOP access

from one side

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Nabors Proprietary Side-saddle Design

Unmatched for High-density Pad Drilling

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• Longer measured depths require higher surface pressure to

achieve required pressure at the mud motor

• More pressure requires more power

Fleetwide Enhancement of Pump Pressure and

Flow Capability

Lo-pressure

system

Hi-pressure

system

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Coming Attractions: PACE®-X Quads Rig Design

• Quad stands require fewer

connections vs. triples

• Less time spent making and

breaking connections

• PACE®-X rig readily accommodates

upgrade w/ existing bootstrap mast

• Offline casing stand-building reduces

casing running time and risk of not

reaching bottom w/ casing

Triple Quad

PACE®-X Quads Rig Design

• 186-foot mast height

• 30,000-foot total capacity,

including casing

• 126-foot quad stand

• 90-foot casing stand

Brown = drill pipe

Green = casing

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• Steering automation integrates the directional drilling workflow into Nabors’

proprietary Rigwatch® system

• Combined with our ROCKit ®, PILOT automation, and Rigline support systems,

existing rig crews can execute directional drilling with superior results

Patent Pending

Rigwatch® 3Directional™ Well Path

Monitoring and Steering

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SMARTRigs™:

- Consistent high

spec/performance rigs

- Rig-floor equipment

integrated through

Rigtelligent™ controls

- Drilling and directional

functions semi-automated

- ECM on all equipment

- Proactive monitoring and

troubleshooting by

RIGLINE24/7

- NDS-Ready™ rig

- 3rd party services replaced

by NDS as a single

provider

The SMARTRig™ has Consistent Specifications

Significant Rig and Downhole Integration and Automation

RIGLINE24/7 or ROC

Rigtelligent™

Controls

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The iRig™: Closed Loop Drilling

Example In-Built Drilling Recipes

Please Push Button

Industry Standard Drilling Workflow iRig™ Closed Loop Drilling

DRILLER

WORKFLOW

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Changing Nature of Service Delivery

SMARTRig™ DRILLER

REMOTE OPERATIONS CENTER

CASING CREW

MANAGED PRESSURE

DRILLER

RIG MANAGER

MUD LOGGING

More than 160 drillers, rig managers, and engineers trained for NDSReady™ Rigs

DIRECTIONAL DRILLING

DIRECTIONAL

DRILLERSMWD

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Automated Real Time Performance Measurement

Rigorous Performance Tracking on all NDS Services

Sample Snapshots of KPI Reports

• Unique in the industry

• Auto-generated daily reports and end-of-well report ensure

transparency of performance

• Data-driven decision-making drives top performance in all

services provided

• Data analyzed at a personnel- and process-level to optimize

service delivery

• Focus on eliminating variability in performance and reducing

outliers

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Nabors Will Have 100 SMARTRigs™

Enhancing Fleet to All PACE®-X and PACE®-M Rigs

Nabors Rig Fleet of SMARTRigs™, 2Q-2017

Nabors will have ~100 SMARTRigs™

1014

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PACE-MPACE-SPACE-BPACE-X

PACE-X

PACE-M

SMARTRIGs™

100

73

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Selected rigs for upgrade, Q3 2016 Upgraded SMARTRigs™, Q2 2017

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NDS Penetration Making Progress

Upside with Market Improvement

Number of global rigs with NDS products

Nabors U.S. rigs running at least one NDS

service

153 rigs

93%

52%Nabors international rigs running at least one

NDS service

51 3rd party rigs running at least one NDS service

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1. The evolution of drilling rigs and drilling programs is

fundamentally changing the way services are performed

2. The oil and gas industry still operates using an outdated

business model that does not fully use available

technologies

3. Nabors believes it is uniquely positioned to redefine the

offering that has the potential to generate EBITDA growth

Three Takeaways

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Shareholder Return Map

Enhanced Margins High-Impact Growth

Cost control

Capital discipline &

allocation

Working capital

focus

Automation

& integration

NDS

expansion

Global footprint,

Intl. tenders

Integrated

structure

Market-leading

performance

Preferred rig

class for L48

pad drilling

Targeted rig

enhancements

Saudi Aramco JV

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Why Invest in Nabors?

Path to

Earnings

Growth

Improving

Capital

Efficiency

with Limited

Capex

Reducing

Leverage

Increases

Equity Value

Growth with Returns Exceeding the Cost of Capital

Thank you for the opportunity to present

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