Nabors Industries (NYSE: NBR) reported Q1 EPS of ($20.16), $1.16 better than the analyst estimate of ($21.32).

Anthony G. Petrello, Nabors Chairman, CEO and President, commented, "Our first quarter results exceeded our expectations, as we maintained our strong execution across the portfolio. First quarter adjusted EBITDA of $108 million was in line with the strong fourth quarter. We benefitted from activity increases in our North American and International markets and our Drilling Solutions business improved significantly. Margins in our largest drilling businesses and Drilling Solutions were consistent with our expectations.

"We had an outstanding quarter in terms of free cash flow generation. We also made progress in cutting our total debt. The entire Nabors team deserves credit for this performance.

"During the first quarter, global oil inventories drew down further. This action contributed to the rise in commodity prices. Oilfield activity responded, with increases across markets. The Lower 48 land drilling market grew by 28% on average in the first quarter. Activity also strengthened during the quarter in international markets, notably for Nabors in Saudi Arabia and Latin America. As commodity markets rebalance, we expect continued increases in drilling activity both in the U.S. and internationally. In tandem with improved utilization, we would also expect pricing to generally increase in the second half of 2021.

"The quarterly growth in our Drilling Solutions segment was impressive. Revenue and adjusted EBITDA both increased sequentially by nearly 12%. We delivered continued growth in Performance Products, notably our SmartDRILLTM sequencing and process automation app, and Managed Pressure Drilling in our international markets. Drilling Solutions continues to gain market traction, while also helping drive the performance of our global drilling rig business.

"In summary, the growing global economy, combined with continued rebalancing of worldwide oil supply and demand, is supportive of commodity prices, which justify higher drilling activity. Nabors is well positioned to capitalize on this prospect."

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