Nabors Expects Lower 3Q07 EPS

Nabors (NYSE: NBR) predicts its third quarter earnings to be in the range of $0.73 to $0.76 per diluted share, even lower than experts have estimated. The low ball is a result of less than expected rig use, among other factors.

The third quarter estimates include gains identified in its second quarter earnings from the sale of some oil and gas properties and its Sea Mar entity.

"The operational component of our reduced third quarter outlook primarily is attributable to lower than expected rig activity across most of our North American rig operations and various factors in our international business unit," explained Gene Isenberg, Nabors' chairman and CEO. "In the U.S. offshore segment, operating days for both our workover jackups and smaller Sundowner(R) workover platform rigs was less than 50 percent of the level experienced in the first two quarters of 2007, as several customers suspended plans given weaker natural gas prices and the prospects for significant hurricane interruptions during the quarter," he added.