On January 15, 2026, Nabors Industries completed the full redemption at par of its outstanding 7.500% Senior Guaranteed Notes due 2028, extinguishing approximately $379 million in principal plus accrued and unpaid interest. This transaction eliminates a high-coupon liability and immediately reduces annual interest expenses by nearly $28 million, strengthening the company’s cash flow profile and reducing refinancing risk in the near term.

Preliminary balance-sheet figures as of December 31, 2025, show total debt of roughly $2.5 billion offset by cash and short-term investments of $940 million, yielding net debt of $1.55 billion. During the fourth quarter, net debt declined by $366 million—equivalent to about $25 per common share—and has fallen by $550 million since year-end 2024. Net leverage now stands at its lowest level since 2008, reflecting disciplined free-cash-flow generation and proactive liability management.

Following the redemption, Nabors’ long-term debt balance is near $2.15 billion, with the next maturity deferred until 2029. The weighted average maturity of outstanding debt has risen to 5.3 years from 3.7 years at September 30, 2025. Management cites opportunistic divestitures of Parker Wellbore and Quail Tools assets and strong operational execution as drivers of this extension, which secures financing headroom and lowers rollover risk through the balance of the decade.

Chairman and CEO Anthony G. Petrello emphasized that debt reduction is a core driver of shareholder value. He highlighted that the combined effects of asset transactions, enhanced cash conversion, and disciplined capital allocation have cleared and extended the company’s financing runway to 2029. Petrello stated that these measures materially strengthen Nabors’ capital structure and position the business to pursue growth initiatives and technological innovation in drilling automation and data science.