Business Context and Reporting Period
Company: NABORS INDUSTRIES LTD.
Filing Type: Form 8-K (Current Report)
Date of Report: December 13, 2010
Purpose: To update historical financial statements from the 2009 Annual Report (Form 10-K) to reflect the reclassification of specific oil and gas assets as discontinued operations.
Key Financial Metrics
This filing does not report new revenue, profit, cash flow, or debt figures. It addresses a presentation change regarding the following assets:
- Oil and gas assets in the Horn River basin (Canada) and Llanos basin (Colombia).
- 49.7% ownership interest in Remora Energy International, LP.
- 50.0% ownership interest in Stone Mountain Ventures Partnership.
Impact on Financials: The reclassification has no effect on total net income, total assets, liabilities, shareholders' equity, or the statements of cash flows as previously reported.
Material Changes Versus Prior Period
The primary material change is the reclassification of the aforementioned assets from "continuing operations" to "discontinued operations" in accordance with ASC Topic relating to the Presentation of Financial Statements for Assets Sold or Held for Sale. These assets were previously presented as assets held for sale in the quarterly report for the period ended September 30, 2010.
Guidance, Outlook, and Management Commentary
Management Commentary: The company has recently begun actively marketing the assets and equity interests listed above. The filing is intended solely to permit the incorporation of updated financial statements by reference in other SEC filings and offering documents.
Limitations: The filing explicitly states that no attempt has been made to reflect subsequent information or events occurring after the filing date of the 2009 Annual Report, except for the reclassification described. Investors are directed to the 10-Q and other filings for more current information.
Important Facts for Investor Verification
- Verify the status of the active marketing efforts for the Horn River and Llanos basin assets.
- Confirm the impact of the discontinued operations classification on future earnings per share calculations in upcoming filings.
- Review the most recent Form 10-Q (filed November 5, 2010) for updated liquidity and operational data not contained in this 8-K.
- Note that this filing does not alter the total net income or balance sheet totals of the 2009 Annual Report.