Nabors Announces Second-Quarter EPS of $0.21 after net charges of $0.03 per share

HAMILTON, Bermuda, July 22, 2014 /PRNewswire/ --Nabors Industries Ltd. (NYSE:NBR) today reported its financial results for the second quarter of 2014. Operating revenues and earnings from unconsolidated affiliates for this quarter totaled $1.62 billion, compared to $1.50 billion in the same quarter of the prior year and $1.59 billion in the first quarter of 2014. Net income from continuing operations was $65.7 million or $0.21 per diluted share, compared to $28.1 million or $0.08 per diluted share in the second quarter of 2013 and $49.0 million or $0.16 per diluted share in the first quarter of 2014. The second quarter earnings per share include net charges of $0.03 per share, primarily related to losses on the sale of non-core assets or in unconsolidated businesses in the process of being divested.

Tony Petrello, Nabors' Chairman, President & CEO, commented, "Operationally, our second quarter represented solid improvement in all of our larger segments, partially offset by the usual seasonal weakness in Canada and Alaska. Our U.S. land operations led the way with improved pricing and a significant increase in rig activity. Completion & Production Services recovered sharply with fewer interruptions and improving pricing and utilization. Our International results also improved as the initial contribution of new rig startups more than compensated for the temporary suspension of several existing rigs.

"Strategically, we achieved a major objective through the signing of a definitive agreement with C&J Energy Services to combine their operations with our Completion & Production Services segment to form a leading oilfield services provider with increased critical mass, broader geographic presence and strong international potential. I view this as one of those rare transactions where both companies' shareholders stand to benefit in ways other than just strong accretion potential. The combination of this segment of our business with a well-respected management team enables us to better concentrate our resources on bolstering our position as a preeminent global drilling company, while retaining the emerging upside of those operations. Similarly, C&J immediately multiplies the size and breadth of its business, greatly expands its opportunity set, and inherits a highly capable operating team. We anticipate the closing of the transaction to occur in the fourth quarter.

"Notably, in the second quarter we received long-term contract awards for an additional eight PACE^®-X rigs in the U.S. market. We continue to see strong demand for new rigs, both domestically and internationally, leading us to significantly increase our new rig production schedule. We also completed the sale of four of our non-core U.S. Offshore rigs and entered into a definitive agreement to divest our Alaska oil and gas holdings. In the aggregate these transactions are expected to yield nearly $100 million in cash proceeds."

Operating cash flow (EBITDA) was $416.3 million for the second quarter, compared to $355.8 million in the same quarter last year and $391.2 million in the first quarter of this year. Adjusted income from operating activities was $133.5 million, compared to $89.6 million in the second quarter of 2013 and $109.0 million in the first quarter of 2014.

Drilling & Rig Services

Operating income in the Drilling & Rig Services business line was down approximately $5.7 million sequentially at $149.8 million. This unit also saw a similar decrease in operating cash flow, which was $376.8 million. These represent modest decreases considering the normal seasonal decrease in Canada and Alaska, approximating $40 million in the second quarter. The quarter's operating income reflects a 50% increase over the same period of last year, illustrating the strength of demand for rigs across virtually all global regions.

In North America, U.S. Drilling results showed substantial improvement in sequential income at $90.0 million despite seasonally lower results in Alaska. This improvement was largely attributable to increases in both utilization and pricing in the Lower 48 operation that amounted to 11 rigs and $600 in daily rig margins. The outlook remains strong with growing pad rig demand, particularly in the Permian and South Texas, as indicated by the award of eight additional PACE^®-X rigs. This brings the total number of PACE^®-X rig commitments to 34 and covers all new-builds scheduled to be deployed into early next year. AC rig utilization remains high at 95% with only one rig on standby revenue versus 11 rigs two quarters ago.

Activity in Alaska is expected to be less seasonal going forward, with increases in year-round work expected through 2016 and further upside from pending new rig awards. Near-term Gulf of Mexico offshore activity is expected to be slower with the onset of hurricane season. However, the intermediate term will benefit from the commencement of a large new deepwater platform drilling rig around the end of this year.

International operating income of $50.6 million continued to improve sequentially as the initial contribution from several new startups more than compensated for a temporarily lower rig count in a few areas. Jackup rig 660 returned to work mid-quarter, but its contribution was offset by unanticipated downtime on two other smaller jackups which are expected to return to operations in the near future. As anticipated, two platform rigs in India and six land rigs in Mexico were down for most of the quarter but have good prospects to return to work. The Company's bullish outlook for the near and intermediate term remains intact as new rig deployments accelerate and rates increase with contract renewals, further bolstered by the potential for additional new rig awards.

Rig Services' operating income was $9.1 million, representing a sizable improvement in Canrig and Ryan which was partially offset by a loss in an unconsolidated affiliate. Canrig's backlog increased to an all-time high, roughly half of which is third-party related.

Completion & Production Services

The Completion & Production Services business line recorded operating income of $29.3 million, with operating cash flow of $85.9 million. Although the second quarter was still impacted by weather and other utilization interruptions, including sand supply, results rebounded sharply from the weather-induced weakness of the first quarter. The sequential improvements in operating income amount to $33.1 million in completion operations and $2.7 million in U.S. Production Services despite key customer budget reductions in California. These improvements were partially offset by a $3.4 million sequential decrease in Canada due to the spring breakup. The outlook for the completions business has improved markedly in a relatively short time as increases in demand, particularly in West and South Texas, have increased utilization to a high level. Today this operation's pumping calendar is fully committed into early next year, including a second 45,000 HHP dual-fuel spread which will deploy in early fourth quarter. Price increases are being implemented in the more active markets with further price increases agreed to take effect shortly in all other regions outside of the northeast. These increases, along with continuing cost reductions, suggest a significant improvement over the balance of this year and a strong 2015. The long-term demographics for Production Services continue to indicate a strengthening market despite some near-term pockets of weakness.

Financial Discussion

Earnings per share for the second quarter included several items that had a net impact of $0.03 cents per diluted share. During the quarter the Company disposed of several non-core assets-barges and other rigs-that generated losses of $0.02 per share. In addition, the development of the C&J transaction led the company to redeem at a loss preferred shares relating to the Superior Well Services acquisition, with an unfavorable impact of $0.01 per share. Finally, the unconsolidated Alaska construction business, which is in the process of being divested, yielded a loss of $0.01 during the quarter. These items were all partially offset by income tax benefits related to the filing of 2013 tax returns in a foreign jurisdiction.

SG&A for the second quarter of $133.6 million was in line with the first quarter with a slight sequential reduction of $0.6 million. Higher investment income on the sale of certain financial assets was essentially offset by a similar increase in foreign-exchange losses. The effective tax rate during the quarter was 13.8%, primarily reflecting the above-mentioned benefits. Capital expenditures of $458 million for the quarter were below forecast and largely associated with the construction of new and upgraded rigs. Nonetheless, expenditures for the full-year should reach the upper end of prior guidance of $1.8 billion with the additional PACE^®-X rigs and the potential for additional international awards yet this year.

William Restrepo, Nabors' Chief Financial Officer added, "We are pleased with the progress made during this quarter and the confirmation of the trends we highlighted during our first quarter conference call. Specifically, the C&J transaction together with the sale of several rigs and E&P assets clearly demonstrate our commitment to focus our resources on those businesses where we are able to generate attractive returns on capital and that are strategically aligned with our areas of strength. Further, the profitability improvement initiatives are well under way. We are starting to see their impact on our financial results and in the cost of building our rigs. And finally, the market has improved as we expected, with higher fracturing service intensity and incremental demand for higher specification drilling assets. During the second half of the year, we expect these favorable trends to contribute to further improvement and to boost the impact of the expected acceleration in international rig deployments."

Summary and Outlook

Petrello concluded, "It is becoming increasingly apparent that virtually every element of our business is experiencing improving fundamentals manifested through improving utilization and pricing. Construction of the numerous new rigs we have in progress remains on track and within budget. The contribution of these deployments combined with a favorable pricing environment across every market and the incremental demand for new rigs globally yield a high degree of growth visibility for the foreseeable future. We are particularly optimistic about the growth prospects for our venture with C&J in the Completion & Production Services business."

About Nabors

The Nabors companies own and operate approximately 496 land drilling rigs throughout the world and approximately 544 land workover and well servicing rigs in North America. Nabors' actively marketed offshore fleet consists of 36 platform rigs in the United States and multiple international markets. In addition, Nabors is one of the largest providers of hydraulic fracturing, cementing, nitrogen and acid pressure pumping services with approximately 800,000 hydraulic horsepower currently in service. Nabors also manufactures top drives and drilling instrumentation systems. Nabors participates in most of the significant oil and gas markets in the world.

The information above includes forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. Such forward-looking statements are subject to certain risks and uncertainties, as disclosed by Nabors from time to time in its filings with the Securities and Exchange Commission. As a result of these factors, Nabors' actual results may differ materially from those indicated or implied by such forward-looking statements. The projections contained in this release reflect management's estimates as of the date of the release. Nabors does not undertake to update these forward-looking statements.

MEDIA CONTACT:

Dennis A. Smith, Director of Corporate Development & Investor Relations, [phone]. To request investor materials, contact Nabors' corporate headquarters in Hamilton, Bermuda at [phone] or via e-mail at [e-mail]

NABORS INDUSTRIES LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(Unaudited)
		Three Months Ended						Six Months Ended
		June 30,				March 31,		June 30,
(In thousands, except per share amounts)		2014		2013		2014		2014		2013
Revenues and other income:
Operating revenues		$ 1,616,981		$ 1,457,966		$ 1,589,618		$ 3,206,599		$ 2,993,444
Earnings (losses) from unconsolidated affiliates		(576)		1,360		(2,445)		(3,021)		4,255
Investment income (loss)		7,066		14,821		980		8,046		94,242
Total revenues and other income		1,623,471		1,474,147		1,588,153		3,211,624		3,091,941
Costs and other deductions:
Direct costs		1,066,495		972,310		1,061,739		2,128,234		1,967,302
General and administrative expenses		133,630		131,202		134,266		267,896		262,080
Depreciation and amortization		282,820		266,210		282,127		564,947		535,575
Interest expense		46,303		60,273		44,810		91,113		120,284
Losses (gains) on sales and disposals oflong-lived assets and other expense (income), net		16,504		9,242		1,476		17,980		68,979
Total costs and other deductions		1,545,752		1,439,237		1,524,418		3,070,170		2,954,220
Income (loss) from continuing operations before income taxes		77,719		34,910		63,735		141,454		137,721
Income tax expense (benefit)		10,756		6,032		14,008		24,764		15,886
Subsidiary preferred stock dividend		1,234		750		750		1,984		1,500
Income (loss) from continuing operations, net of tax		65,729		28,128		48,977		114,706		120,335
Income (loss) from discontinued operations, net of tax		(1,032)		(26,873)		1,515		483		(19,862)
Net income (loss)		64,697		1,255		50,492		115,189		100,473
Less: Net (income) loss attributable to noncontrolling interest		(253)		(5,616)		(573)		(826)		(5,713)
Net income (loss) attributable to Nabors		$ 64,444		$ (4,361)		$ 49,919		$ 114,363		$ 94,760
Earnings (losses) per share: (1)
Basic from continuing operations		$ .21		$ .08		$ .16		$ .37		$ .41
Basic from discontinued operations		-		(.09)		.01		-		(.09)
Basic		$ .21		$ (.01)		$ .17		$ .37		$ .32
Diluted from continuing operations		$ .21		$ .08		$ .16		$ .37		$ .41
Diluted from discontinued operations		-		(.09)		-		-		(.09)
Diluted		$ .21		$ (.01)		$ .16		$ .37		$ .32
Weighted-average numberof common shares outstanding: (1)
Basic		297,984		294,747		296,210		297,097		293,217
Diluted		300,981		297,119		299,050		300,016		295,644
Adjusted EBITDA (2)		$ 416,280		$ 355,814		$ 391,168		$ 807,448		$ 768,317
Adjusted income (loss) derived from operating activities (3)		$ 133,460		$ 89,604		$ 109,041		$ 242,501		$ 232,742

(1)	See "Computation of Earnings (Losses) Per Share" included herein as a separate schedule.
(2)	Adjusted EBITDA is computed by subtracting the sum of direct costs and general and administrative expenses from the sum of Operating revenues and Earnings (losses) from unconsolidated affiliates. There are limitations inherent in using adjusted EBITDA as a measure of overall profitability because it excludes significant expense items. However, management evaluates the performance of our business units and the consolidated company based on several criteria, including adjusted EBITDA and adjusted income (loss) derived from operating activities, because we believe that these financial measures accurately reflect our ongoing profitability. These amounts should not be used as a substitute for the amounts reported in accordance with GAAP. To compensate for the limitations in utilizing adjusted EBITDA as an operating measure, management also uses GAAP measures of performance, including income from continuing operations and net income, to evaluate performance, but only with respect to the Company as a whole and not on a segment basis. A reconciliation of this non-GAAP measure to income (loss) from continuing operations before income taxes, which is a GAAP measure, is provided in the table set forth immediately following the heading "Reconciliation of Non-GAAP Financial Measures to Income (loss) from Continuing Operations before Income Taxes".
(3)	Adjusted income (loss) derived from operating activities is computed by subtracting the sum of direct costs, general and administrative expenses and depreciation and amortization from the sum of Operating revenues and Earnings (losses) from unconsolidated affiliates. These amounts should not be used as a substitute for those amounts reported in accordance with GAAP. However, management evaluates the performance of our business units and the consolidated company based on several criteria, including adjusted income (loss) derived from operating activities, because it believes that these financial measures accurately reflect our ongoing profitability. A reconciliation of this non-GAAP measure to income (loss) from continuing operations before income taxes, which is a GAAP measure, is provided in the table set forth immediately following the heading "Reconciliation of Non-GAAP Financial Measures to Income (loss) from Continuing Operations before Income Taxes".

NABORS INDUSTRIES LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
		(Unaudited)
		June 30,		March 31,		December 31,
(In thousands, except ratios)		2014		2014		2013
ASSETS
Current assets:
Cash and short-term investments		$ 486,344		$ 424,767		$ 507,133
Accounts receivable, net		1,448,511		1,454,368		1,399,543
Assets held for sale		233,163		231,880		243,264
Other current assets		642,620		580,253		603,890
Total current assets		2,810,638		2,691,268		2,753,830
Long-term investments and other receivables		2,724		2,915		3,236
Property, plant and equipment, net		8,832,966		8,690,759		8,597,813
Goodwill		512,897		512,391		512,964
Investment in unconsolidated affiliates		60,509		63,069		64,260
Other long-term assets		216,265		226,671		227,708
Total assets		$ 12,435,999		$ 12,187,073		$ 12,159,811
LIABILITIES AND EQUITY
Current liabilities:
Current debt		$ 207		$ 5,296		$ 10,185
Other current liabilities		1,319,379		1,232,846		1,301,239
Total current liabilities		1,319,586		1,238,142		1,311,424
Long-term debt		3,956,290		3,812,476		3,904,117
Other long-term liabilities		1,078,201		1,095,998		893,905
Total liabilities		6,354,077		6,146,616		6,109,446
Subsidiary preferred stock (1)		-		69,188		69,188
Equity:
Shareholders' equity		6,071,426		5,960,469		5,969,086
Noncontrolling interest		10,496		10,800		12,091
Total equity		6,081,922		5,971,269		5,981,177
Total liabilities and equity		$ 12,435,999		$ 12,187,073		$ 12,159,811

(1)	Represents subsidiary preferred stock from acquisition in September 2010. All 75,000 outstanding shares were redeemed in June 2014.

NABORS INDUSTRIES LTD. AND SUBSIDIARIES
SEGMENT REPORTING
(Unaudited)
The following tables set forth certain information with respect to our reportable segments and rig activity:
		Three Months Ended						Six Months Ended
		June 30,				March 31,		June 30,
(In thousands, except rig activity)		2014		2013		2014		2014		2013
Reportable segments:
Operating revenues and Earnings (losses) from unconsolidated affiliates:
Drilling and Rig Services:
U.S.		$ 532,894		$ 467,129		$ 510,476		$ 1,043,370		$ 951,902
Canada		54,861		64,789		111,621		166,482		191,656
International		391,251		351,421		375,069		766,320		672,937
Rig Services (1)		161,740		118,120		143,726		305,466		252,351
Subtotal Drilling and Rig Services (2)		1,140,746		1,001,459		1,140,892		2,281,638		2,068,846
Completion and Production Services:
Completion Services		276,639		254,016		227,899		504,538		516,154
Production Services		258,378		244,602		275,400		533,778		496,173
Subtotal Completion and Production Services (3)		535,017		498,618		503,299		1,038,316		1,012,327
Other reconciling items (4)		(59,358)		(40,751)		(57,018)		(116,376)		(83,474)
Total operating revenues and earnings (losses) from unconsolidated affiliates		$ 1,616,405		$ 1,459,326		$ 1,587,173		$ 3,203,578		$ 2,997,699
Adjusted EBITDA: (5)
Drilling and Rig Services:
U.S.		$ 206,061		$ 178,799		$ 187,637		$ 393,698		$ 363,658
Canada		14,216		18,067		40,119		54,335		63,598
International		139,336		117,491		137,991		277,327		224,005
Rig Services (1)		17,176		2,273		16,491		33,667		11,607
Subtotal Drilling and Rig Services (2)		376,789		316,630		382,238		759,027		662,868
Completion and Production Services:
Completion Services		27,614		33,479		(6,654)		20,960		80,203
Production Services		58,267		48,036		60,056		118,323		99,154
Subtotal Completion and Production Services (3)		85,881		81,515		53,402		139,283		179,357
Other reconciling items (6)		(46,390)		(42,331)		(44,472)		(90,862)		(73,908)
Total adjusted EBITDA		$ 416,280		$ 355,814		$ 391,168		$ 807,448		$ 768,317
Adjusted income (loss) derived from operating activities: (7)
Drilling and Rig Services:
U.S.		$ 89,977		$ 69,813		$ 72,494		$ 162,471		$ 147,408
Canada		225		3,895		26,160		26,385		34,413
International		50,583		32,481		48,119		98,702		53,950
Rig Services (1)		9,059		(5,383)		8,728		17,787		(4,096)
Subtotal Drilling and Rig Services (2)		149,844		100,806		155,501		305,345		231,675
Completion and Production Services:
Completion Services		(581)		6,870		(33,635)		(34,216)		24,626
Production Services		29,889		23,471		30,591		60,480		49,485
Subtotal Completion and Production Services (3)		29,308		30,341		(3,044)		26,264		74,111
Other reconciling items (6)		(45,692)		(41,543)		(43,416)		(89,108)		(73,044)
Total adjusted income (loss) derived from operating activities		$ 133,460		$ 89,604		$ 109,041		$ 242,501		$ 232,742
Rig activity:
Rig years: (8)
U.S.		215.3		195.8		206.6		211.0		192.8
Canada		21.6		17.4		43.8		32.6		28.6
International (9)		127.3		125.2		129.8		128.6		124.0
Total rig years		364.2		338.4		380.2		372.2		345.4
Rig hours: (10)
U.S. Production Services		210,750		224,681		209,982		420,732		436,979
Canada Production Services		28,671		28,802		41,540		70,211		76,829
Total rig hours		239,421		253,483		251,522		490,943		513,808

(1)	Includes our drilling technology and top drive manufacturing, directional drilling, rig instrumentation and software services. These services represent our other companies that are not aggregated into a reportable operating segment.
(2)	Includes earnings (losses), net from unconsolidated affiliates, accounted for using the equity method, of ($.8) million, $1.2 million and ($2.5) million for the three months ended June 30, 2014 and 2013 and March 31, 2014, respectively and ($3.3) million and $4.0 million for the six months ended June 30, 2014 and 2013, respectively.
(3)	Includes earnings (losses), net from unconsolidated affiliates, accounted for using the equity method, of $.2 million, $.2 million and $.1 million for the three months ended June 30, 2014 and 2013 and March 31, 2014, respectively and $.3 million for each of the six months ended June 30, 2014 and 2013.
(4)	Represents the elimination of inter-segment transactions.
(5)	Adjusted EBITDA is computed by subtracting the sum of direct costs and general and administrative expenses from the sum of Operating revenues and Earnings (losses) from unconsolidated affiliates. There are limitations inherent in using adjusted EBITDA as a measure of overall profitability because it excludes significant expense items. However, management evaluates the performance of our business units and the consolidated company based on several criteria, including adjusted EBITDA and adjusted income (loss) derived from operating activities, because we believe that these financial measures accurately reflect our ongoing profitability. These amounts should not be used as a substitute for the amounts reported in accordance with GAAP. To compensate for the limitations in utilizing adjusted EBITDA as an operating measure, management also uses GAAP measures of performance, including income from continuing operations and net income, to evaluate performance, but only with respect to the Company as a whole and not on a segment basis. A reconciliation of this non-GAAP measure to income (loss) from continuing operations before income taxes, which is a GAAP measure, is provided in the table set forth immediately following the heading "Reconciliation of Non-GAAP Financial Measures to Income (loss) from Continuing Operations before Income Taxes".
(6)	Represents the elimination of inter-segment transactions and unallocated corporate expenses.
(7)	Adjusted income (loss) derived from operating activities is computed by subtracting the sum of direct costs, general and administrative expenses and depreciation and amortization from the sum of Operating revenues and Earnings (losses) from unconsolidated affiliates. These amounts should not be used as a substitute for the amounts reported in accordance with GAAP. However, management evaluates the performance of our business units and the consolidated company based on several criteria, including adjusted income (loss) derived from operating activities, because it believes that these financial measures accurately reflect our ongoing profitability. A reconciliation of this non-GAAP measure to income (loss) from continuing operations before income taxes, which is a GAAP measure, is provided in the table set forth immediately following the heading "Reconciliation of Non-GAAP Financial Measures to Income (loss) from Continuing Operations before Income Taxes".
(8)	Excludes well-servicing rigs, which are measured in rig hours. Includes our equivalent percentage ownership of rigs owned by unconsolidated affiliates. Rig years represent a measure of the number of equivalent rigs operating during a given period. For example, one rig operating 182.5 days during a 365-day period represents 0.5 rig years.
(9)	International rig years includes our equivalent percentage ownership of rigs owned by unconsolidated affiliates, which totaled 2.5 years during each of the three months ended June 30, 2014 and 2013 and March 31, 2014 and 2.5 years for each of the six months ended June 30, 2014 and 2013.
(10)	Rig hours represents the number of hours that our well-servicing rig fleet operated during the period.

NABORS INDUSTRIES LTD. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
(Unaudited)
		Three Months Ended						Six Months Ended
		June 30,				March 31,		June 30,
(In thousands)		2014		2013		2014		2014		2013
Adjusted EBITDA		$ 416,280		$ 355,814		$ 391,168		$ 807,448		$ 768,317
Less: Depreciation and amortization		282,820		266,210		282,127		564,947		535,575
Adjusted income (loss) derived from operating activities		133,460		89,604		109,041		242,501		232,742
Interest expense		(46,303)		(60,273)		(44,810)		(91,113)		(120,284)
Investment income (loss)		7,066		14,821		980		8,046		94,242
Gains (losses) on sales and disposals oflong-lived assets and other income (expense), net		(16,504)		(9,242)		(1,476)		(17,980)		(68,979)
Income (loss) from continuing operations before income taxes		$ 77,719		$ 34,910		$ 63,735		$ 141,454		$ 137,721

NABORS INDUSTRIES LTD. AND SUBSIDIARIES
COMPUTATION OF EARNINGS (LOSSES) PER SHARE
(Unaudited)
A reconciliation of the numerators and denominators of the basic and diluted earnings (losses) per share computations is as follows:
		Three Months Ended						Six Months Ended
		June 30,				March 31,		June 30,
(In thousands, except per share amounts)		2014		2013		2014		2014		2013
Net income (loss) attributable to Nabors (numerator):
Income (loss) from continuing operations, net of tax		$65,729		$28,128		$ 48,977		$ 114,706		$ 120,335
Less: Net (income) loss attributable to noncontrolling interest		(253)		(5,616)		(573)		(826)		(5,713)
Less: Earnings allocated to unvested shareholders		(974)		(814)		(733)		(1,707)		-
Less: Redemption of preferred shares		(1,688)		-		-		(1,688)		-
Adjusted income (loss) from continuing operations - basic and diluted		$62,814		$21,698		$ 47,671		$ 110,485		$ 114,622
Income (loss) from discontinued operations, net of tax		(1,032)		(26,873)		1,515		483		(19,862)
		$61,782		$ (5,175)		$ 49,186		$ 110,968		$ 94,760
Earnings (losses) per share:
Basic from continuing operations		$ .21		$ .08		$ .16		$ .37		$ .41
Basic from discontinued operations		-		(.09)		.01		-		(.09)
Total Basic		$ .21		$ (.01)		$ .17		$ .37		$ .32
Diluted from continuing operations		$ .21		$ .08		$ .16		$ .37		$ .41
Diluted from discontinued operations		-		(.09)		-		-		(.09)
Total Diluted		$ .21		$ (.01)		$ .16		$ .37		$ .32
Shares (denominator):
Weighted-average number of shares outstanding-basic		297,984		294,747		296,210		297,097		293,217
Net effect of dilutive stock options, warrants and restricted stock awards based on the if-converted method		2,997		2,372		2,840		2,919		2,427
Weighted-average number of shares outstanding - diluted		300,981		297,119		299,050		300,016		295,644

For all periods presented, the computation of diluted earnings (losses) per share excluded outstanding stock options and warrants with exercise prices greater than the average market price of Nabors' common shares because their inclusion would have been anti-dilutive and because they were not considered participating securities. The average number of options and warrants that were excluded from diluted earnings (losses) per share that would have potentially diluted earnings (losses) per share were 5,782,273 and 11,578,175 shares during the three months ended June 30, 2014 and 2013, respectively; 7,853,509 shares during the three months ended March 31, 2014; and 6,817,891 and 12,015,219 shares during the six months ended June 30, 2014 and 2013, respectively. In any period during which the average market price of Nabors' common shares exceeds the exercise prices of these stock options and warrants, such stock options and warrants are included in our diluted earnings (losses) per share computation using the if-converted method of accounting. Restricted stock is included in our basic and diluted earnings (losses) per share computation using the two-class method of accounting in all periods because such stock is considered a participating security.

SOURCE Nabors Industries Ltd.