Nabors Industries Ltd. (NBR) Stock Analysis

Nabors Industries’ principal competitive advantages stem from its technological leadership, global scale, and diversified service offering. The company operates one of the world’s largest and most advanced land rig fleets, with approximately 285 marketed land rigs and 26 offshore rigs as of year-end 2024. Over 70% of its fleet consists of high-specification AC-powered rigs, which command premium dayrates and longer-term contracts compared to the older SCR rigs still prevalent among smaller competitors such as Patterson-UTI and Precision Drilling.

Nabors’ proprietary digital platforms—such as RigCLOUD and SmartNAV—enable real-time operational optimization, reducing downtime and improving drilling efficiency. This technology focus differentiates Nabors from peers like Helmerich & Payne, which, while strong in U.S. shale, lacks Nabors’ breadth in automation and international reach.

Geographic diversification is another key strength. In 2024, more than half of Nabors’ revenue originated outside the U.S., with significant exposure to Saudi Arabia through its SANAD joint venture. This mitigates the impact of U.S. rig count volatility, a risk that weighs more heavily on domestic-focused rivals.

Finally, Nabors’ integrated service model—including drilling solutions and equipment manufacturing—supports higher margins (operating margin 24% TTM) and customer stickiness. However, the company’s high leverage remains a vulnerability, especially in cyclical downturns, and its international focus exposes it to geopolitical risks not faced by purely domestic peers.