Nabors Industries Ltd. (NBR) Stock Analysis

Nabors Industries’ principal competitive advantages stem from its global scale, technology portfolio, and operational expertise. The company operates one of the world’s largest land-based drilling rig fleets, with 285 land rigs and 26 offshore rigs as of year-end 2024, spanning over 15 countries. This international footprint enables Nabors to serve both major oil companies and national oil companies, providing resilience against regional downturns and access to higher-margin international contracts. In comparison, Helmerich & Payne and Patterson-UTI are more U.S.-centric, while SLB and Halliburton have broader service portfolios but less direct rig ownership.

Nabors’ Drilling Solutions segment is a key differentiator, contributing over 15% of adjusted EBITDA in 2023 and projected to reach 30% post-Parker acquisition. This business leverages proprietary automation, performance software, and drilling optimization tools—such as ROCKit and RigCLOUD—which are deployable on both Nabors and third-party rigs. These offerings command premium pricing and support customer retention.

The company’s capital-light technology and services generate higher returns on capital than traditional rig operations. Nabors’ ability to retrofit automation modules onto existing rigs, including competitors’, extends its addressable market and embeds it deeper in client workflows.

However, Nabors faces intense price competition, especially in the U.S. Lower 48, and is exposed to customer concentration risk—Saudi Aramco accounted for 31% of 2024 revenue. Nonetheless, its technology leadership, global reach, and diversified service mix provide a durable edge over most pure-play drilling peers.