1. 1 MERRILL LYNCH GLOBAL ENERGY CONFERENCE NOVEMBER 5, 2003 Presenter: Gene Isenberg Chairman & CEO

2. 2 Balance Sheet Data as of September, 2003 A CONSERVATIVE AND FLEXIBLE FINANCIAL POSITION Cash and Marketable Securities Accounts Receivable Working Capital Property, Plant and Equipment, Net Total Assets Actual 1,517 349 931 2,820 5,487 2,285 2,399 49% 24% 153 A3 A- S&P 500, OSX Total Debt Stockholder’s Equity Total Debt to Total Capitalization Net Debt to Capitalization Weighted Avg. Shares Outstanding Moody’s Rating (1) Standard & Poors ($Millions) (1) Some debt issues are unrated

3. 3 AVAILABLE CAPACITY AT OCTOBER 31, 2003 DrillingWorkingReady-to-RunInventoryTotal North America Alaska810220 US 48 Drilling16812194383 GOM Offshore1427041 Canada3745082 International Int’l Land (1) 56382.596.5 Int’l Offshore (1) 220020.5 Total Drilling30524198.5643 W.O./Well Servicing US Lower 4843263247742 Canada1391852209 Total W.O./Well Servicing57181299951 (1) Represents Nabors’ Net Interest in J.V. Rigs in Saudi @ 50%, operating rig count includes those leased from GOM Offshore

4. 4 NATURAL GAS OUTLOOK Supply challenges point to a more orderly and sustainable cycle » North American Gas Decline Rates Imply 20+ BCFPD Production Decline Per Year » Timing of the Supply Impact of Gas From: Deepwater McKenzie Delta Alaska LNG » US & Canadian Basins are the only alternatives for incremental supply of natural gas over the next five to eight years. Longer term, LNG will ultimately become the marginal supply

5. 5 GLOBAL OIL Supply Demand Balance Appears Favorable But Less Visible Than Gas Supply: » Aging and Declining Fields North Sea, North Slope, US, Latin America, Middle East » Prospective New Supplies Deep Water – US GOM, West Africa Middle East – Exploration and Development Russia – Rehabilitation and New Developments Former Soviet Union States Demand: » Global GDP – China, India and Emerging Economics » North American Gas Alternatives

6. 6 INCREMENTAL GAS DRILLING CHALLENGES » Existing Reserves – Higher Recovery Efficiency – Increased Technology » Incremental Reserves – Deeper Horizons – More Complex – Higher Risks – More Remote – Less Accessible

7. 7 U.S. GAS RIG ACTIVITY Source: Baker Hughes, Bloomberg 376 463 564 563 484 717 691 939 TODAY – 944 YTD 03 – 855

8. 8 U.S. NATURAL GAS PRODUCTION YEAR-OVER-YEAR % CHANGE EOG_BS0503-3 -10% -8% -6% -4% -2% 0% 2% 4% 2000 -4.8 ACT Quarterly YOY % Change 53.0 52.2 51.9 50.550.349.748.749.4 49.048.848.5 -5.2 ACT -2E-3E-2E-1E 200120022003E 52.051.652.052.1 Quarterly Bcfd: Annual Change +1.2%-5.3%-1 to-3% -4.9 ACT Assumes BHI Gas Rig Count 1,000 Year End 2003 Storm Related -6.2 ACT 717 Gas Rigs 939 Gas Rigs 691 Gas Rigs Est. 1,000 at year end Today = 944 Y-T-D Avg. = 855

9. 9 LAND RIG SUPPLY CYCLE-TO-CYLCE » August 2000 Effective 100% Utilization at 850 US Land Rigs » Today Effective 100% Utilization at 1100+ US Land Rigs » Increased Operating Costs » Increased Capital Costs » None the less, we expect significantly lower dayrates than the 2001 peak

10. 10 FOCUSING ON RIG EFFECIENCY & INNOVATION US LOWER 48 » Reducing moving times From 5 – 7 days to 3.5 – 5 days 24 hour moves, pre-planning, load unitizations, and Nabors controlled Trucking » Upgrading rig capabilities Higher hydraulic horsepower Iron ruffnecks » Incorporating technology innovations where cost effective Noble OptiDrill ™ – 8 systems expanding to 12 by end of year » Overall performance improvements in safety and efficiency El Paso’s Robert Guerra #1 well in South Texas set new industry record to 19,000 feet in 38 days - 11 days and more than $1 million under AFE El Paso’s Casa de Nylon well in South Texas drilled to 17,000 feet - 11 days and $750,000 under AFE

11. 11 FOCUSING ON RIG EFFICIENCY & INNOVATION »Data acquisition and management: Real-time and historical rig and well parameters Real-time drilling engineering functions Automation of rig accounting functions »Top drives for directional, horizontal and problem wells: AC drive implementation – 750 to 275 ton capacities New 175 ton DC easily convertible to AC New remote diagnostics and trouble shooting system New directional steering control system

12. 12 NEW AND REMODELED RIGS CANADA:Seven rigs from September 2002 – March 2004 AC – PLC technologies in house 800 – 3,000 HP highly mobile rigs In house design and construction expertise U.S. LOWER 48:Two modularized pad rigs for Shell Pinedale Anticline Upgraded and refurbished rig for Shell South Texas OFFSHORE:Three Gulf of Mexico platform rigs for deepwater development projects Eight international platform rigs since mid 2003

13. 13 U.S. LOWER 48 AND CANADIAN SIGNIFICANT RELATIONSHIPS Lower 48CanadaPossible 1Q04 Apache2620 Anadarko9215 Burlington5315 Chesapeake16018 Devon11115 El Paso15218 EnCana6516 Shell7316

14. 14 GROWING CANADIAN CONTRIBUTION Actual 2001 Proforma 2001 Actual 2002 Implied By Consensus 2003 Average No. Rigs Working Drilling (rig years)20-2340 Workover (000’s hrs/year)0-166310 Segment Results ($Millions) Revenues$86$450$142$250 EBITDA$38$158$38$80 % NBR Segment Total5%-9%18%

15. 15 GROWING INTERNATIONAL CONTRIBUTION Actual 2001 Actual 2002 Implied By Consensus 2003 Average No. Rigs Working Land534547 Offshore1715 Segment Results ($Millions) Revenues$282$320$400 EBITDA$90$114$135 % NBR Segment Total12%28%30%