Operator: Good day, and welcome to the Second Quarter 26 Nabors Industries Ltd Earnings Conference Call. All participants will be in a listen-only mode. Followed by 0. After today's presentation, there will be an opportunity to ask questions. To ask a question, And to withdraw your question, Please note this event is being recorded. I would now like to turn the conference over to Mr. William Cornelius Conroy, Vice President of Investor Relations. Please go ahead, sir.

William Cornelius Conroy: Good morning, everyone. Thank you for joining Nabors' second quarter 26 earnings conference call. Today, we will follow our customary format with Tony Petrello, our Chairman, President and Chief Executive Officer. And Miguel Rodriguez, our Chief Financial Officer, providing their perspectives on the quarter's results along with insights into our markets and how we expect Nabors to perform in these markets. In support of these remarks, a slide deck is available. Both as a download within the webcast and in the Investor Relations section of nabors.com. Instructions for the replay of this call are posted on the website as well. With us today, in addition to Tony, Miguel and me, are other members of the senior management team. Since much of our commentary today, will include our forward expectations, they may constitute forward looking statements within the meaning of the Securities Act of 1.93 thousand and the Securities Exchange Act of 1.93 thousand. Such forward looking statements are subject to certain risks and uncertainties, as disclosed by Nabors from time to time with the Securities and Exchange Commission. As a result of these factors, our actual results may vary materially from those indicated or implied by such forward looking statements. Also, during the call, we may discuss certain non GAAP financial measures. Such as net debt, adjusted operating income, adjusted EBITDA, and adjusted free cash flow. All references to EBITDA made by either Tony or Miguel during their presentations whether qualified by the word adjusted or otherwise, mean adjusted EBITDA, as that term is defined on our website and in our earnings release. Likewise, unless the context clearly indicates otherwise, References to cash flow mean adjusted free cash flow, as that non GAAP measure is defined in our earnings release. We have posted to the Investor Relations section of our website a reconciliation of these non GAAP financial measures to the most recently comparable GAAP measures. With that, I will turn the call over to Tony to begin.

Anthony G. Petrello: Good morning. Thank you for joining us to review our second quarter results. Once again, we delivered strong operational execution and achieved several strategic milestones Let's start with our financial results. Adjusted EBITDA totaled $222 million, well above our expectations We exceeded the guidance we provided last quarter across all 4 reporting segments, Daily margins were especially strong in our Lower 48 and International Drilling businesses. This metric expanded sequentially in both operations outperforming our guidance. Those gains reflect disciplined commercial execution, operational excellence, and outstanding work by our teams around the world. The quarter also included several significant milestones. First, our SANAD joint venture placed another newbuild rig into service in 2016. SANAD also returned 1 previously suspended rig to work. 2 of SANAD's 3 suspended rigs are now back on contract. We also began drilling on Quaise Energy's project Obsidian in Oregon This project represents the first commercial application of super hot enhanced geothermal systems. The project is ultimately targeted to deliver gigawatt scale geothermal power. Additionally, we commissioned 2 of our highest specification PACE-X ultrarigs for a supermajor, 1 in South Texas and the other in East Texas. In our Rig Technologies business, Canrig introduced its first advanced fully automated Titan Rig floor wrench into commercial service. Early field results have been exceptional. Titan combines superior torque accuracy faster connection time, consistent makeup in 1 pass, and lower cost of ownership in a simpler machine. That is an unmatched combination in a rig floor wrench today. Finally, NDS's ROC drill string oscillation software secured an important competitive win. ROC displaced an incumbent competitor on multiple third party rigs. This win demonstrates ROC's technology leadership and compelling value proposition. Next, I will discuss our key international markets. I will also outline why Nabors is strongly positioned to gain share and grow earnings in each of them. Our international footprint focuses on key markets across the Middle East and Latin America, Saudi Arabia remains the cornerstone of this business. The Saudi land rig market continues to recover. Approximately 196 land rigs are currently operating in the kingdom. That number is up by 4 compared to last quarter. It is up by 35 from this market's recent low in the third quarter of 25. The current count still stands 28 rigs below the peak early 24. Our SANAD joint venture currently operates 55 rigs in the kingdom. That number includes 16 rigs delivered through the new build program and previously suspended rigs that have returned to service. With a 28% market share, SANAD is the largest land drilling contractor in Saudi Arabia. In addition to this scale, our fleet aligns well with the kingdom's strategic priorities, Of the industry's land rigs running currently in the kingdom, approximately 2-thirds work in natural gas. SANAD's gas exposure is even greater nearly 3-quarters in gas. This positions SANAD at the center of Saudi Aramco's investment in expanding natural gas production. Despite regional geopolitical tensions, SANAD's operations have continued without interruption and the growth ahead is substantial. 34 rigs remain to be delivered under the 50 rig newbuild program. SANAD has a clear runway for additional earnings growth over the next several years. Beyond Saudi Arabia, our Gulf business continues to perform exceptionally well. In both Kuwait and Oman, our rigs have operated continuously since the commencement of the conflict. In Kuwait, we have 3 deep gas exploration rigs running. They are on long term contracts that commenced in 2025. The opportunity extends well beyond today's fleet. Kuwait continues investing in gas development. Current tender activity for additional high specification rigs, supports our expectation that this market will expand In Oman, we have 4 rigs running. They continue to perform well. Multiple tenders are now underway, which could create additional opportunities across several operators. Taken together, Saudi Arabia, Kuwait, and Oman provide a strong growth corridor in our international portfolio Our high specification fleet and long standing customer relationships position us well to capture incremental work. On top of our rig businesses in the region, NDS has established significant market positions Saudi Arabia and the UAE. NDS holds the number 1 market share in casing running in both countries These 2 geographies already rank as the second and third largest international contributors to NDS' EBITDA. Next, I will shift over to Latin America, starting with Argentina. Argentina continues to be 1 of Nabors' most compelling international success stories. We are currently operating 13 rigs in the country. Another is earning revenue under an O and M contract. The client base is well diversified. Our fleet currently works for 5 different operators. With a 30% market share Nabors holds the largest position in the country. We are now mobilizing another rig to Argentina. That will bring the Nabors total to 14 rigs further extending our leadership in this market. Of our working fleet in Argentina, at the end of the quarter, 5 were formerly idle units in the Lower 48. This demonstrates our ability to optimize assets globally under long term contracts. We can generate attractive returns without incurring incremental new build capital. The value of Argentina extends beyond drilling. Our Drilling Solutions business has become deeply embedded in the development of the Vaca Muerta. The client base there has widely adopted the NDS technology portfolio. NDS accounts for approximately 46% of our EBITDA in Argentina in the first half of 26. This marks the highest contribution of any country in our portfolio. Illustrating our strategy of the rig-as-a-platform in action we combine premium drilling rigs with differentiated technology to optimize performance, increase margins, deepen customer relationships, and expand returns beyond the rig itself. We believe Argentina is 1 of the most attractive international growth markets Our view is supported by world class resources compelling project economics, and an increasingly stable operating environment. I will wrap up the international market discussion with Venezuela. The outlook there has improved materially this year. Today's drilling activity remains limited. with less than a handful of rigs running. By comparison, in 2013, more than 85 rigs were operating Given the large resource base in the country, and the proximity suitable refining capacity Venezuela holds enormous potential. Nabors has a long history in Venezuela. 1 of our predecessor companies, Laughlin Brothers, started there nearly 70 years ago. Today, we have 5 idle rigs in the country, We are well positioned should activity resume. Several large operators have expressed interest in restarting drilling programs. Under the right commercial conditions, Venezuela has the potential to become another meaningful contributor to our international business over time. To summarize, the international environment, the broader picture is encouraging. Across our existing international footprint, we are tracking opportunities representing more than 40 incremental rigs. This number, among 10 countries, indicates a robust market for additional rigs. That opportunity set reflects the strength of our customer relationships the quality of our rig fleet, and the increasing demand for high performance drilling and technology solutions. As always, our approach remains disciplined and selective. We will pursue only those opportunities that meet our return thresholds and strengthen long term shareholder value. I will conclude my remarks on the international markets with the following: Our Arabian Gulf operations continue without interruption demonstrating the resilience of our people infrastructure and customer relationships. SANAD continues to strengthen its leadership position in Saudi Arabia through newbuild deliveries and returning suspended rigs to service. Argentina showcases the power of our integrated strategy, combining drilling and technology to deliver industry leading returns. Venezuela presents an improving long term opportunity where our fleet and technology positions us to capture additional upside. Next, let me turn to the U.S. Lower 48. The industry strengthened during the second quarter. From the end of the first quarter, to the end of the second quarter the Baker Hughes Lower 48 land rig count increased by 31 rigs or 6%. This marks a notable upward turn after the modest decline in the first quarter. This compares to the most recent high of 568 set in February 2025. The Baker quarterly average rig count increased by 5 rigs or 1% in the second quarter. Looking a bit deeper at the Lower 48 industry in the second quarter, the Baker end-to-end oil rig count increased by 8% The gas rig count declined slightly. By region, the oil directed increase was concentrated in the Permian, the Austin Chalk, the Granite Wash. And in terms of operator type, per Enverus, public operators held flat while private operator activity increased sequentially by 17%. To sum up, the growth in the Lower 48 rig market during the quarter, it was oil, it was in Texas, and it was generally smaller operators. Our experience, however, looked different. And we believe better We had a 5-rig start count during the second quarter, These were a mix of oil, gas, and geothermal. Our activity was diversified across regions Importantly, 2 of those contracts came from a supermajor. That distinction matters. Larger operators tend to run longer duration drilling programs They adopt advanced technologies earlier, provide greater earnings visibility than smaller independence. By quarter end, nearly 70% of our working lower 48 fleet served publicly traded operators That customer mix continues to differentiate Nabors. Let me conclude with a few comments on this market's economics. The improving utilization environment is beginning to translate into stronger financial performance. During the quarter, our Lower 48 daily revenue improved more than $900 sequentially. At the same time, we added term to our Lower 48 contract backlog. By quarter end, more than 45% of our rigs in this market had at least 6 months of remaining duration. We expect to be at approximately 50% in the third quarter. Looking ahead, our quarterly survey of large Lower 48 operators indicates a constructive outlook This group accounted for approximately 43% of this market's working rig count. They increased their rig count by 12 rigs during the second quarter, This increase was concentrated among 4 operators. A quarter ago, survey indicated a 15 rig addition through the end of the year. Those were mainly in just 2 operators, In the second quarter, these 2 operators accounted for just a few of the group's increased rig count. Also, a quarter ago, I mentioned that the sentiment reflected in the survey favored incremental activity above the expected rig count. Some of this positive sentiment translated into actual rig additions during the quarter. Now, looking through the end of 26, the survey reveals another 11 rigs expected to be added. Concentrated in 2 operators, Taken together, customer plans, improving utilization and stronger commercial conditions all support our confidence in continued activity and pricing momentum through the balance of this year and into 2027. Next, I will make a few remarks about our technology and innovation. Technology remains 1 of Nabors' most important competitive advantages. Our strategy is straightforward. Develop technologies that improve drilling performance, expand customer returns, increase the earnings power of every rig we operate. Second quarter again demonstrated that strategy at work. Our Nabors-owned Lower 48 rigs NDS revenue increased sequentially by 11% outpacing fleet growth. This was led by MPD and Rig Cloud. Demonstrating continued customer adoption of higher value software and automation solutions. The same pattern is evident on third party rigs. While third party average rig count increased only 1%, NDS revenue grew 12%, Strong demand for our software products produced this result. That spread illustrates an important point Our technology business is growing because customers are adopting more of our solutions. Earlier, I mentioned a deployment of 2 PACE-X ultra rigs Those rigs entered service fully equipped with the NDS technology suite. Including technology offerings daily revenue meaningfully exceeds $40 thousand per rig. That demonstrates the economic power of integrating premium rigs with premium technology and highlights our rig-as-a-platform strategy at work. It creates higher revenue, stronger margins, deeper customer relationships, and greater differentiation than either business could achieve independently. That remains 1 of Nabors' clearest competitive advantages. Now let me turn to Miguel to discuss our financial results in detail.

Miguel Rodriguez: Thank you, Tony, and good morning, everyone. As Tony highlighted, we delivered a strong second quarter, exceeding the outlook we provided in April. This performance was broad based with every operating segment ahead of expectations. Led by Lower 48 and International Drilling. In International Drilling, our Middle East operations continued without disruption and maintain a powerful tempo despite conflict related challenges in the region. The financial impact of the related cost pressure was broadly in line with our guidance. Reflecting exceptionally strong execution by our teams and the resilience of our global supply chain. In our Lower 48 operation, rig count and margins exceeded our expectations. Supported by improved pricing, longer contract duration, and deep relationships with high quality customers. All while maintaining disciplined commercial execution. Collectively, these results underscore the strength of our portfolio the durability of our earnings power and our ability to convert activity into a stronger financial performance. Turning to the financials, I will review our second quarter sequential performance and then provide our outlook for the third quarter. Then I will conclude with updates on capital allocation and adjusted free cash flow. In the second quarter, consolidated revenue was $815 million an increase of $31 million or 4% sequentially. With growth across every operating segment. EBITDA reached $222 million exceeding the upper end of our implied guidance. EBITDA margin expanded 107 basis points to 27.2% a very strong 54% fall through. This performance reflect outstanding portfolio wide execution. Turning to our segment results. International drilling revenue was $432 million an increase of $13 million or 3.1%. EBITDA increased to $131 million up $9 million or 7.6%. EBITDA margin expanded 127 basis points to 30.2%. With a robust 71% fall through. The segment's EBITDA performance exceeded the target implied by our guidance for activity and daily margins. Average rig count increased from 92.6 to 93.4. Growth was driven by the deployment of 2 SANAD rigs in Saudi Arabia, the 16th new builds and the resumption of a previously suspended rigs. And the full quarter contribution from rigs that commenced operations in the first quarter. These additions were partially offset by the contract roll off of 2 lower margin rigs. 1 in Algeria and 1 in India. Average daily rig margin increased to $17.5 thousand up $654 sequentially, and above the high end of our guidance range. The improvement reflects the benefit of recent rig deployments strong commercial and operational execution, and normal contract transitions across the portfolio. Moving on to U.S. Drilling, revenue increased to $252 million up $11 million or 4.7% sequentially. EBITDA increased to $94 million up $6 million or 6.8%. EBITDA margin expanded 75 basis points to 37.3%, with a solid 53% fall through. These results exceeded our implied guidance driven by our performance in the Lower 48, which resulted from stronger activity, improved pricing, and continued operating discipline yielding a robust lower 48 EBITDA improvement of 11%. Our combined Alaska and offshore businesses performed in line with our expectations. Within U. S. Drilling, Lower 48 revenue increased by $27 million, up $15 million or 7.8%. Driven by activity growth and improved pricing. During the quarter, we added 5 rigs across all our major basins while maintaining commercial discipline. This growth reflects the strength of our client relationships the demand for our highest specification fleet, and our operational execution. Average working rig count increased by 2.5 to 67.8, reaching the upper band of our guidance range. We exited the second quarter with 71 rigs working and have since increased activity to 73 rigs. Average daily revenue increased by $902 to $33.6 thousand. Driven by rigs rolling onto new contracts at higher rates. Leading edge pricing continues to improve. Supporting our expectation for progressively higher rates as utilization tightens. Currently, leading edge daily revenue has increased into the low to mid-$30 thousands range. We are confident that our pricing will reach or exceed the mid-$30 thousands as we progress through the balance of this year and into 2027. Average daily margin increased by $107 to $13.8 thousand approximately $500 higher than our guidance. Driven by pricing gains in a tightening market and a strong operational performance. Turning to Alaska and U.S. offshore. On a combined basis, revenue was $46 million and EBITDA was $15 million resulting in an EBITDA margin of 33.5%. In line with our guidance. Now to drilling solutions. NDS revenue increased by $4 million or 4.2% to $111 million EBITDA increased by $1 million up 3.5% to $40 million resulting in an EBITDA margin of 36.2%. EBITDA was 3% above our guidance, primarily supported by higher penetration across both Nabors and third party rigs in the lower 48 up by 11%, 12%, respectively. Internationally, continued growth in Saudi Arabia and Argentina was partially offset by lower asset sales in certain markets. NDS remains a strong cash generator converting approximately 90% of EBITDA into free cash flow during the quarter. Underscoring the strength of its capital light operating model. Now on to Rig Technologies. Revenue increased to $37 million up 37.7% EBITDA improved to $3.2 million modestly exceeding our guidance. The improvement was driven by higher activity across the portfolio led by stronger performance in The Middle East. Turning into our third quarter outlook. In international drilling, we expect average rig count to range between 94 and 96 supported by the deployment of the 17th SANAD new-build rig in Saudi Arabia, the redeployment of an idle US rig to Argentina, and the commencement of a short term geothermal contract in Indonesia. We expect to exit the third quarter with 96 rigs working. Average daily gross margin is expected to improve to a range of $18.1 thousand to $18.4 thousand. This increase reflects the contribution from higher margin rig additions and continued strong execution. Despite persistent cost friction related to the Middle East Conflict. Turning to U.S. drilling, we expect the average Lower 48 working rig count to increase to approximately 73 and to exit the quarter with 74 rigs operating. Daily adjusted gross margin is expected to remain approximately flat with the second quarter at $13.8 thousand as fewer near term renewal opportunities limit additional pricing gains. We expect US industry activity to build progressively supported by stable oil prices and an improving outlook for natural gas demand. At the same time, operators remain disciplined in allocating capital reinforcing a selective performance driven market that aligns well with Nabors' highest specification fleet and operating capabilities. As industry utilization continues to improve, the supply of readily deployable super spec rigs is becoming increasingly constrained Against that backdrop, we will continue to evaluate reactivation opportunities through a disciplined capital allocation framework. Investing only where expected returns and contract duration justify the capital required. We are encouraged by the incremental opportunities we see through the remainder of the year. Turning to Alaska and U. S. Offshore combined, we expect EBITDA of approximately $11 million reflecting lower activity in the offshore business. For Drilling Solutions, we expect EBITDA to increase by 5% sequentially to approximately $42 million driven by continued technology adoption and activity growth. For Rig Technologies, EBITDA is expected to improve to a range of $5 million to $6 million Overall, we expect our consolidated EBITDA margin to increase by approximately 100 basis points in the third quarter. Next, I will discuss our capital allocation and adjusted free cash flow. Second quarter capital expenditures totaled $158 million essentially in line sequentially and below our guidance range. Primarily due to timing of a few SANAD new-build milestones. Total CapEx included $46 million associated with the SANAD new-build program. Looking ahead to the third quarter, we expect capital expenditures of $245 million to $255 million including approximately $130 million for these new bills. For the full year, we now expect consolidated capital expenditures of $710 million to $730 million including $325 million to $335 million for the SANAD new-build program. The reduction in SANAD's new-build outlook reflects the movement of certain construction milestones into early 27. Beyond SANAD, improving activity in the Lower 48 and certain international markets could create additional investment opportunities. We are very well positioned to participate selectively. Deploying capital only where the customer and opportunity are strategic, and the commercial terms meet our return thresholds. We remain firmly committed to capital discipline and expect the spending to remain within our updated guidance range. Turning to free cash flow. During the second quarter, Nabors generated consolidated adjusted free cash flow of $12 million modestly above our guidance. The mix differed from our expectations, reflecting the timing of SANAD new-build milestones and slower collections in Mexico and The United States. SANAD generated positive free cash flow of $38 million while the business outside SANAD used approximately $26 million. We view the collections headwind as timing related and expect this will normalize over the balance of the year. For the third quarter, we expect to use approximately $40 million of consolidated adjusted free cash flow including approximately $65 million of cash consumption by SANAD. The second quarter demonstrated the strength of our operating platform with each business segment outperforming our expectations. We are encouraged by the momentum in the Lower 48 the strong tempo in our international performance, and the continued growth across our technology businesses. Reflecting our strong first half performance and the continued business momentum, we now expect full year EBITDA of $920 million to $930 million above both our prior expectations and the prior year level. We believe we are well positioned to exceed our full year adjusted free cash flow guidance and now expect to generate $20 million to $30 million even with SANAD consuming $60 million to $80 million. We remain committed to reducing gross debt by at least $100 million during 2026. Consistent with our long term objective of reducing net leverage to approximately 1 turn. With that, I will turn the call back to Tony.

Anthony G. Petrello: Thank you, Miguel. Let me leave you with 3 thoughts. First, we exceeded our implied EBITDA guidance across every reporting segment That reflects disciplined execution throughout the company. Second, our international franchise continues to strengthen. It is unique and second to none. SANAD added another newbuild, returned additional suspended capacity to work, and remains on track with its expansion program creating a long runway for profitable growth. Third, the Lower 48 continues to validate our strategy. Premium rigs, integrated technology, and operational excellence are expanding margins increasing customer adoption improving the quality of our earnings. If there are 2 takeaways from today's discussion, they are Nabors is executing from a position of strength, and we deliver on our commitments. Our international business continues to grow, Our Lower 48 franchise is capturing improving market conditions. Our technology portfolio is becoming an increasingly important driver of earnings and differentiation And across the company, we are improving margins strengthening cash generation and raising the quality of the business. We are pursuing growth with discipline. We are allocating capital where returns justify investment. And we are leveraging our global platform and technology leadership to create durable value for our shareholders. Still see significant opportunity ahead and we are well positioned to capture it. Thank you for your time this morning. We will now take your questions.

Operator: We will now begin the question and answer session. To ask a question, you may press *1 on your touch tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press the pound key. And our first question for today will come from Daniel Kutz with Morgan Stanley. Please go ahead.

Joe Lache: Grant. Thanks. Good morning, and thanks for taking my questions.

Anthony G. Petrello: Good morning, Dan.

Miguel Rodriguez: Morning.

Joe Lache: So I wanted to start on the U.S. Lower 48 You added 5 rigs during the quarter, you currently sit at 73, expect to exit 3Q at 74 rigs and then expand slightly from there. I know it is a bit early, but could you just talk to how you are thinking about the puts and takes on activity and pricing as we get into the fourth quarter? As well as into 2027. And then I think you talked about pricing reaching or exceeding the mid-$30 thousand level. Thank you.

Anthony G. Petrello: I think that is exactly right. I think we see market where there continues to be discipline by the major players. A lot of confidence in the market, but no 1's getting carried away. And more of the activity up and down has been the privates returning to the market. But the good news is the super spec percentage is going up of utilization. And once it hits a certain number, as you all know, that is when pricing starts to accelerate. So we see as we go into the second half of the year, things are going to accelerate. And you know, as you observed, yes, that target number of the mid $30 thousands is--we see that as reaching that toward the end of the year.

Joe Lache: Grant. Thanks. that is helpful. And then shifting to the international side. So within Saudi, reactivations are progressing, it seems like there is strong momentum for incremental rigs as well. Can you just talk to how discussions are going for the fifth tranche of new rigs and how that is progressing?

Anthony G. Petrello: Sure. I mean, Aramco is very committed to the program, and it is all been positive. As you can see from what we have done notwithstanding all the turmoil over there we have continued to execute on track. And we expect that the next--the next tranche will be discussed really shortly, actually. Probably within the next quarter. And we will have complete visibility on it. But we are confident that the program is going to continue. And, by the way, looking at Saudi in general, I think it is all positive signs. Obviously, the 196-rigs I mentioned I think 1 of the things that you all have been interested in is number of suspended rigs of the 40 rigs that 40 rigs still remain suspended from the downturn that occurred. And of the 40 rigs, I think during the next short period of time, you may see another 10 come back in the form of LSTK work which also would help neighbors not just on the rig side, but also on the service side because we are a big player there. You know, our NDS operation there on the casing running services is the number 1 player in Saudi Arabia. So we see that as additional upside there as well.

Joe Lache: Grant. that is helpful. Thank you.

Operator: The next question will come from Derek Podhaizer with Piper Sandler. Please go ahead.

Derek Podhaizer: Wanted to add to Dan's first question around just the outlook on the rig. Maybe just to hone in a little bit more on 2027, just assuming everything, the strip stays around $70. I mean, everything sounds super positive. I think your survey mentioned another 11 rigs through year end. But you also commented on potential tightness around the supply with super spec rigs. So can you help maybe walk through that as far as how many rigs from a market perspective could potentially be added in 2027, and then what it--what it means for Nabors' rig count.

Anthony G. Petrello: 2027 is a way--a ways off still. So I do not want to get over my skis. But I think in terms of super specs, that the pitch here is that most of the operators, especially the large ones that are really focused on the longer laterals are all demanding higher spec rigs. And so existing rigs, I think, are going to be upgraded along those lines. And I could see you know, maybe half a dozen rigs occurring of upgrades over the next 12 months by operators asking for that kind of stuff. And I think what is going to happen is in terms of the ability of the market to do that, I think we are well positioned because obviously with Canrig, we make most of the equipment that we need. so I think we are well poised to do that. But in terms of a guess of next year's recount, I am not--I am not ready to talk about that.

Miguel Rodriguez: I think, you know, the market is disciplined right now, and everything is falling into place. I think right now, we are focused on continuing the utilization of the current rigs and seeing some tightening of the pricing as things move forward typically as operators demand more upgrades of existing equipment?

Anthony G. Petrello: Got it.

Derek Podhaizer: Okay. No. that is--that is really helpful, Tony. Thank you. I actually wanted to ask a question around your geothermal.

Anthony G. Petrello: I mean, you guys have been a longtime investor in the geothermal startup space. I know Quaise is 1 of your first investments there. So great to hear that you are up drilling with them up in Oregon. Maybe just discuss some of the upside that you have with Quaise as they look to build out gigawatt scale, enhanced geothermal? I believe they have a different design, I think they vaporize rock versus drill rock. So maybe talk about that. And then maybe just talk about the actual rig Do you have--do you have to make technology upgrades to it with the pricing of a geothermal rig versus an oil and gas rig. So maybe just more around the opportunity and design of what you are dealing with Quaise. Sure. As you know, Nabors 5 years ago before geothermal was even topical by anybody, we identified it as the most underappreciated renewable out there because it is obviously baseload and renewable. And we ventured down this path, Quaise was 1 of the ones that really attracted us because of their differentiated technology. As you know, we do not like to be just a me too player. and we were intrigued by their millimeter-wave technology, which came out of MIT. And so and it actually has obviously defense department kind of capabilities as well. And so basically, the concept is with this millimeter-wave technology, you can actually destroy rock rather than drill it. Down to supercritical temperatures, which is 500 degrees Celsius. When you get down to that depth, obviously, the typical conventional rigs cannot get there. You know, things melt and other things happen. So that was it. And the concept of Quaise is to make geothermal ubiquitous. Obviously, geothermal works where you have hot rock, but the number of places where you have the hot rock not necessarily convenient everywhere. Whereas if you can actually get to super hot rock, then geothermal becomes ubiquitous, which has been our quest in terms of what we have been looking for in the geothermal space. And that is why it is so attractive. On this particular project right now, the first project, Quaise is, you know, still in development of the millimeter-wave technology. But what they have now done is shifted to be--actually be a developer with existing technology as well. So the first project is actually going to use more of a conventional kind of approach, but it is laying the basis and foundation for the millimeter-wave testing. This--this millimeter-wave equipment by the way, needs integration in the rig. So it is a special gyrotron and the gyrotron needs changes to a rig. It needs changes to the top drive, etcetera. Which, again, Nabors is unique, and that is--that is part of the plan here to make it commercial. Interestingly, Quaise, I think they have publicly announced that they have a contract with Google. First, the first install is 250 megawatts. The first well is for 50-megawatt installment. So, this is the beginning of a campaign. So we think it is a really good path We think compared to the other company who went public, if you look at the 2 side by side, I think Quaise does everything Fervo has, but it has the addition of the path to a ubiquitous kind of geothermal market, which would be geothermal everywhere, which would be a great story. So that is why super excited about it. We believe in the management and the company, and I cannot say enough of good things about it.

Derek Podhaizer: Grant. Sounds super exciting. Appreciate all the comments, Tony. I will turn it back. Thanks.

Operator: The next question will come from Keith MacKey with RBC. Please go ahead.

Keith MacKey: Hey. Thanks, good morning.

Miguel Rodriguez: I know it is early for 2027, but just thinking about the capital plan for 2026 and how that might differ from 2027. Can you maybe just start to pull apart some of the pieces of what might be more, what might be less, I am thinking maybe SANAD should be lower next year just given the fifth tranche has not been awarded yet. But can you kinda help us walk through that? Just in general, how we should be thinking about things for next year versus this year? Sure. I mean, look. I think you are very correct. it is quite early. but I mean, if we start with a baseline of at least H2 x 2 in terms of EBITDA, meaning higher than $1 billion. We need to think about a CapEx, that it will not be lower than 2020. Right? I mean and starting with that, I will say, that you have to consider that SANAD milestones probably will be in the range of the $330 million, $350 million range probably, considering 5 rigs building permanently, right? I mean, you will see probably 5 rigs deployed in 2027, but starting to build another 5. So in general, I mean, I will--I will suggest that the CapEx will be probably in line with 2020, if not slightly higher. And number 2, not only the sustaining capital of our rigs, and the NDS portfolio, but certainly, there are opportunities that we are exploring in the pipeline. That are strategically not only for the customer, but also for the location and the potential scale going forward. That we may need to add to our growth CapEx into 2027. So I will not expect really CapEx to be lower than 2026. I hope that helps.

Keith MacKey: Yeah. that is helpful. Thanks.

Anthony G. Petrello: Good news. Good news. Just to make sure you caught it was that second half run rate based on what we have told you today is we see we are running at $1 billion run-rate in the second half of this year, which At least. At least. So that is the good news.

Miguel Rodriguez: And the encouraging part of this is that really the second half outlook, which already is 17% at least higher than the first half, for 2026 is all based on contracted activity and planned rig deployments. Right? So, really, the downside risk to that second half is mean, extremely small, I would say. Yeah.

Keith MacKey: Appreciate that. Just maybe on your U.S. contract book, since you are at 45% with at least 6 months, so looking at your likely you are going to get to 50% Q3. Just talk about your approach to that. Certainly, a higher percentage of contracted rigs this cycle versus last cycle. What do you think is the right number for Nabors, and how do you kinda balance the decision to either have a higher portion of your rigs contracted versus a lower portion of your rigs contracted?

Anthony G. Petrello: I think there is no single answer because it really depends on the timing of what happens. When you do long term contracts, it is always a function of where the market is at the current time. And what the delta is. And so I would not say there is an absolute number percentage wise, but probably a 60% number is out there as a number that could make sense. I think the real critical question is, who you decide to do a long term contract with. that is more important to me. And the content of the long term contract. In other words, we want to put our rates with people that are number 1, long term players in the marketplace. Number 2, are believers in technology that can actually use a more bundled approach of our services, and that is more of our focus in terms of entering into these long term contracts as simply as opposed to just locking up a rig, for example, with somebody. And that and that really guides our logic here as we move forward. So that would be offers a lot more upside and that gives us a road map for additional things. And so if you look at some of our technology initiatives, for example, they all come from people that believe in our road map. And that is synergistic, those kind of relationships with creating the technology and then developing and rolling it out. Our example of our rig automation stuff is a classic example of that. We are right to say we have 2 super majors. Each have an automated rig. We just got an order for additional 2 of that. Of those. that is with operator who we have long term contracts with. It actually shows you the benefit of them. So it is not just the initial price it is the content plus relationship and plus the appetite for them to really use all the services that we have to offer.

Keith MacKey: Got it. And if I could just follow-up quickly on that, just, how does performance based metrics work into your contracting strategy? Is that key part of the technology integration as well? Or what is your view on that these days?

Anthony G. Petrello: Got it. Absolutely. absolutely. In fact, as you know, the NDS portion is basically value priced because it is all performance--it is all performance features. it is performance software. it is performance services. And so that portion of it is clearly and the rigs as well have key performance metrics where there is some sharing of upside. So uniformly, at almost all the contracts, there is some element of that uniformly. So and that, you know, that is just a common--a common thing today. The interesting thing is with NDS, while I mentioned NDS, on this topic, the great thing about NDS is the delivery mechanism to do that is really back to the former question here of CapEx is really remarkable because NDS' conversion rate, I think in this quarter, was 90% free cash flow conversion rate on its EBITDA. Which is really a remarkable number. So just bear that in mind too. And that those services are really part and parcel of this value driven proposition for the customers. So that shows you we have something that is a machine. it is effective. It actually is really great in terms of capital efficiency on top of it all. All right. Thanks a lot.

Operator: And this will conclude our question and answer session. I would like to turn the conference back over to Mr. William Cornelius Conroy for any closing remarks. Please go ahead.

William Cornelius Conroy: I am gonna let Tony Petrello just make a few remarks, and then I will close the call out. Tony?

Anthony G. Petrello: Yeah. I would just like to say that I think, you know, Nabors has the right portfolio of assets in the right markets with the right capabilities to take advantage of this unique opportunity, executing from a position of strength. The international environment is robust. And our business is well positioned. Lower 48 is capturing better market conditions, technology is becoming a larger driver of earnings differentiation. We are fundamentally improving the quality of our business, poising ourselves for great growth in the future. So we see a lot of significant opportunity ahead. Thanks for all your consideration today. Thank you.

William Cornelius Conroy: Chuck, with that, we will end the call here. There are any follow-up questions, please contact us. Thanks again.

Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.