Nabors Industries Ltd Liquidation Value

Nabors Industries (NBR) presents deeply negative equity recovery under a liquidation scenario. As of March 31, 2026, total assets are $4.39B against total liabilities of $2.94B, yielding book equity of $569M for the parent. However, the liquidation lens strips this down materially. The dominant asset is PP&E at $2.91B; applying a 50-70% recovery haircut to drilling rig assets (specialist capital equipment with a thin secondary market) yields $1.46B-$2.04B in recoverable value against $2.15B in face-value debt alone. Adding cash at 100% ($501M) and AR at 90-95% ($446M-$471M of the $470M contract receivable balance and $418M net current AR) improves the asset side, but total unsecured noteholder and trade creditor claims fully absorb recoveries before equity is reached. MFFAIS corroborates this: CLV of -$2.20B, LLV of -$1.79B, OLV of -$1.70B—all deeply negative. Notably, the quarter included a $379M debt repayment from what was $940M in year-end cash, compressing cash to $501M and reducing net debt. Long-term debt face value stands at $2.15B (carrying amount). The A/R facility adds $147M of receivables sold off-balance-sheet, which marginally reduces the gross AR pool available in liquidation. Redeemable noncontrolling interest (NETC II SPAC residual) at $489M sits structurally ahead of NBR common equity. The OtherLiabilitiesNoncurrent line at $235M covers items such as deferred revenue, pension, and other long-tail obligations that would survive windup at face value, adding further drag. The $184M deferred tax asset carries zero liquidation value. Since the prior annual filing (10-K, December 31, 2025), the material change is the $379M debt paydown in Q1 2026, partially offset by $165M capex and working capital consumption of $61M, resulting in a net cash draw of $440M. The liability stack improved modestly but equity recovery remains unambiguously negative.