Nabors Industries J.P. Morgan Natural Resources Conference Takeaways

Research evidence excerpt

Nabors Industries J.P. Morgan Natural Resources Conference Takeaways

J P M O R G A N North America Equity Research

24 June 2026

Nabors Industries Underweight

NBR, NBR US

J.P. Morgan Natural Resources Conference Takeaways Price (24 Jun 26):$81.83

Oil & Gas Exploration & Production

We hosted a fireside chat with NBR VP of Corporate Development & IR Bill Arun Jayaram AC

Conroy at our J.P. Morgan Natural Resources Conference today. (1-212) 622-8541

arun.jayaram@jpmchase.com

• Net takeaway: slightly positive. The conversation with NBR reinforced a Jason Kim

constructive setup across the company’s three pillars around Lower-48, (1-212) 622-1408

international, and technology (Nabors Drilling Solutions, PACE-X Ultra). We jason.b.kim@jpmchase.com

came away incrementally more confident in the direction of FCF generation Sowmya Vemulapalli

and debt-reduction trajectory from higher L-48 activity, SANAD, and (1-212) 270-4660

Argentina upside optionality. sowmya.vemulapalli@jpmchase.com

J.P. Morgan Securities LLC

• Momentum in the Lower-48 rig count. Management is currently running 70

rigs in the L-48, above the 69 rig exit guidance for 2Q26. This reflects an

increase from 58 rigs at the end of November, which is driving higher

utilization and a constructive pricing setup. Pricing demand is strongest in West

and South Texas across both oil and gas basins, with a positive demand surprise

in North Dakota. Leading edge “vanilla” pricing levels are positioned to move

from the low $30,000s towards the mid-$30,000s next year against a 1Q26 L-

48 daily rig revenue baseline of $32,653. Separately, PACE-X Ultra rigs

(jointly designed with Caturus Energy to develop deeper, longer-lateral shale,

initially in South Texas) carry pricing in the $40,000s before layering in