EXHIBIT 99.1

		NABORS INDUSTRIES
				NEWS RELEASE

Nabors’ 4Q EPS Beats Expectations at $0.44 versus $0.37 Mean Estimates,
Excluding Certain Non-Cash E&P Related Adjustments

HAMILTON, Bermuda, February 15, 2011 — Nabors Industries Ltd. (NYSE:NBR) today announced its results for the fourth quarter and full year 2010. The Company’s non-GAAP net income from continuing operations was $127.7 million ($0.44 per diluted share) in the fourth quarter and $299.9 million ($1.03 per diluted share) for the full year. This compares to the Company’s 2009 results which were $35.1 million ($0.12 per diluted share) and $384.4 million ($1.34 per diluted share), respectively, in net income from continuing operations. The quarter’s adjusted income derived from operating activities was $222.4 million bringing the total for 2010 to $655.4 million. This compares to $140.4 million for the corresponding quarter of 2009 and $681.6 million for all of last year. This quarter’s results do not include nearly $5 million or $0.02 per share of deferred income from work performed for the Company’s NFR joint venture which have been eliminated for GAAP purposes and will be reflected in future periods through favorable adjustments to the Company’s portion of their depletion. Revenues for the Company were $1.3 billion for the quarter and $4.2 billion for the full year. The quarter’s GAAP income from continuing operations was $50.2 million ($0.17 per diluted share) and included non-cash impairments of certain E&P assets.

Gene Isenberg, Nabors’ Chairman and CEO, commented, “Our fourth quarter results exceeded expectations in virtually all sectors of our business except the Gulf of Mexico where the permitting gridlock persists. Operating income rose sequentially by $58.0 million to $222.4 million. The addition of Superior Well Services generated the largest impact followed by Canada, US Lower 48 land drilling, International and US Well-servicing. Our Other Operating Segments income decreased sequentially as a result of lower activity in both our Alaska joint ventures and in our directional drilling entity, more than offsetting an increase in Canrig’s results.

“We expect 2011 to show a 50-60 percent increase in non-GAAP earnings per share, even though the first and second quarters will be adversely impacted by several period-specific issues and the customary seasonal slowness in our US Pressure Pumping and US Well-servicing businesses. Among these issues are the usual first quarter payroll tax drag on our US businesses and approximately $90 million in International income reductions resulting from three events: lower market rates on three jackup renewals, scheduled downtime for regulatory inspections on four jackups, and approximately 360 days of downtime to accomplish upgrades on six land rigs in Saudi Arabia in preparation for long-term gas drilling contracts. Despite the magnitude of these items, we still expect International income in 2011 to approximate 90% of 2010 with a fourth quarter annualized run rate that far exceeds that result as rig activity increases. With the exception of Alaska, all of our units are expected to be up significantly and in the aggregate deliver a very strong year.

“Meanwhile, our financial position remains solid. Despite a significant increase in our 2011 investment opportunities, we plan to redeem our remaining $1.4 billion in convertible notes on May 15, 2011 from a combination of our cash on hand, interim cash generation, E&P sale proceeds and temporary use of our revolving lines of credit.

“Our US Pressure Pumping segment posted a very strong quarter at $54.7 million, a record performance that included a seasonally lower December. We expect the first quarter to be flat with the fourth quarter with seasonality in some areas, offsetting higher average volume and pricing in other areas. The first of nine incremental crews are expected to commence operations in March, with one deploying each month thereafter. We also expect to begin operating the first of our new coiled tubing units in June. We continue to see improvement in this business as increasing demand in oil and liquids-rich fields outstrips slowing activity in dry gas areas, with the notable exception being the Marcellus shale. The average number of stages per well continues to increase and we believe overcapacity will not be an issue for some time, particularly if commercial success is achieved in some of the numerous new oil shale plays. We anticipate 2011 will show significant further sequential increases in quarterly results.

“Results in our Canada operations increased substantially to $16.6 million as we ramped up into the seasonally strong first quarter. In addition to the normal improvement associated with the beginning of the winter drilling season, this market is seeing strong increases in oil and liquids-directed activity which more than offsets declining rig counts in gas areas such as Horn River and Montney. We expect 2011 to be a significantly better year than 2010.

“Our US Lower 48 land drilling unit also posted a large increase in operating income principally on higher average margins of $843 per rig day, with only $250 of that increase attributable to favorable end-of-year workers’ compensation adjustments. Since our third quarter release, we have secured another six new build rig contracts bringing the total over the last four quarters to 29, including three economically equivalent SCR upgrades. Interest in additional new builds remains strong. The outlook for this business remains very good, although a sharper-than-anticipated decline in gas activity could partially offset the continuing ramp up in oil and liquids-directed work. In 2011, we expect that 68% of our operating cash flow in this unit will be derived from oil and liquids-directed drilling, as opposed to only 15% in 2006.

“Our International business exceeded our expectations with favorable costs and delayed repricing on the first of three jackups. The aforementioned $90 million reduction in income will largely be felt equally in the first and second quarters. However, a significant ramp-up in this unit’s rig count during each quarter should result in sequential improvement as the year progresses, with the fourth quarter approximating this quarter’s results. Prospects are improving in multiple markets and we are optimistic this unit will outperform our expectations over the next few years.

“Our US Well-servicing business achieved a significant improvement in results, with $12.1 million in operating income derived from improved rig rates and robust activity in its fluids management division. We expect this unit to achieve steady improvement subsequent to the seasonally weak first quarter leading to a possible doubling of the full-year results. There remains significant potential in this business with sustained oil prices and a large expansion of our fluids management fleet, facilitated by the synergies this unit is deriving from the Superior acquisition.

“Our Alaska operations were sequentially down slightly with the demobilization of two rigs following the completion of long-term projects. We expect 2011 results to be only 40% of those achieved in 2010 as another higher margin project winds up in May, adding to the effects of a significant decline in rig activity. There are early indications of improving activity later this year if proposed modifications to the progressive Alaska tax structure are enacted. Sustained high oil prices, additional demand for our proprietary coiled tubing technology and the eventual development of viscous oil deposits are promising longer term.

“Our US Offshore operations were down more than expected as the lack of permit issuance continued to severely curtail activity. We expect this situation to continue through mid-year, although increased workover and plug and abandonment work for our shallow water jackups and Sundowner® rigs should somewhat lessen the adverse financial effects. The longer-term outlook is solid, particularly considering the two new build high-spec deepwater rigs we are constructing for deployment around the end of next year under long-term contracts.

“Our Other Operating Segments posted lower results as a decline in Ryan’s US gas-related directional drilling operations combined with a drop off in activity in both of our Alaska joint ventures. These effects were partially offset by a small increase in Canrig’s results, principally on the strength of third party capital equipment sales and increasing contributions from its ROCKIT^® technology. The outlook for this segment appears to be good with continued strength in Canrig and the commencement of the winter season in Ryan’s Canada operations and in our Alaska joint ventures.

“In our Oil and Gas segment the quarter’s GAAP results included dry-hole expense and impairment of certain gas properties, the development of which is unwarranted because of the current natural gas price environment. As we previously discussed, we are progressing toward the completion of the sale of a portion of our Colombian assets. We are evaluating a second stage of bid submissions and believe we will derive a value in line with the lower end of the range of our expectations.

“In summary, all of our units are poised to improve as 2011 progresses. Longer term, our global infrastructure, premium fleet and solid balance sheet position us to perform well in almost any market environment. Recovery in our International segment is commencing and we remain confident in the sustainability of growth in our North American markets even in the face of today’s weak gas prices. The leverage we enjoy in the natural gas market positions us for even greater profitability when prices eventually improve.”

The Nabors companies own and operate approximately 550 land drilling and approximately 727 land workover and well-servicing rigs in North America. Nabors’ actively marketed offshore fleet consists of 37 platform rigs, 13 jackup units and 3 barge rigs in the United States and multiple international markets. In addition, Nabors manufactures top drives and drilling instrumentation systems and provides comprehensive oilfield hauling, engineering, civil construction, logistics and facilities maintenance, and project management services. Nabors participates in most of the significant oil and gas markets in the world.

The information above includes forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. Such forward-looking statements are subject to certain risks and uncertainties, as disclosed by Nabors from time to time in its filings with the

Securities and Exchange Commission. As a result of these factors, Nabors’ actual results may differ materially from those indicated or implied by such forward-looking statements.

The Company will host a conference call tomorrow, February 16, 2011 at 10:00 a.m. Central Time to discuss the results and its outlook in more detail. You may access a webcast of the call through Nabors’ website at www.nabors.com > Investor Relations > Events Calendar or via www.streetevents.com. The Company will also post a set of slides on its website in advance of the call in order to provide additional detail on its operations. For further information, please contact Dennis A. Smith, Director of Corporate Development for Nabors Corporate Services, Inc., at 281-775-8038. To request investor materials, contact our corporate headquarters in Hamilton, Bermuda at 441-292-1510 or via email at mark.andrews@nabors.com.

NABORS INDUSTRIES LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(Unaudited)

		Three Months Ended												Year Ended
		December 31,								September 30,				December 31,
(In thousands, except per share amounts)		2010				2009				2010				2010				2009
Revenues and other income:
Operating revenues		$	1,317,999			$	829,475			$	1,069,261			$	4,174,635			$	3,683,419
Earnings (losses) from unconsolidated affiliates (1)			4,928				(102,301	)			11,842				33,257				(155,433	)
Investment income (loss)			8,624				51				(733	)			7,648				25,599
Total revenues and other income			1,331,551				727,225				1,080,370				4,215,540				3,553,585
Costs and other deductions:
Direct costs			775,313				455,328				625,561				2,423,602				2,001,404
General and administrative expenses			103,704				75,949				87,194				346,661				428,161
Depreciation and amortization			219,169				168,270				198,151				764,253				667,100
Depletion			2,297				1,580				5,778				17,943				9,417
Interest expense			74,009				66,263				66,973				273,044				266,039
Losses (gains) on sales and retirements of long-lived assets and other expense (income), net			6,262				11,934				9,407				47,060				12,559
Impairments and other charges (2)			137,832				103,893				123,099				260,931				330,976
Total costs and other deductions			1,318,586				883,217				1,116,163				4,133,494				3,715,656
Income (loss) from continuing operations before income taxes			12,965				(155,992	)			(35,793	)			82,046				(162,071	)
Income tax expense (benefit):
Current			(42,837	)			25,599				(71,276	)			(83,816	)			69,532
Deferred			4,869				(160,130	)			67,046				59,002				(203,335	)
Income tax expense (benefit)			(37,968	)			(134,531	)			(4,230	)			(24,814	)			(133,803	)
Subsidiary preferred stock dividend			750				—				—				750				—
Income (loss) from continuing operations, net of tax			50,183				(21,461	)			(31,563	)			106,110				(28,268	)
Income (loss) from discontinued operations, net of tax			1,591				(25,765	)			(7,591	)			(11,330	)			(57,620	)
Net income (loss)			51,774				(47,226	)			(39,154	)			94,780				(85,888	)
Less: Net (income) loss attributable to noncontrolling interest			(1,293	)			(34	)			(453	)			(85	)			342
Net income (loss) attributable to Nabors		$	50,481			$	(47,260	)		$	(39,607	)		$	94,695			$	(85,546	)
Earnings (losses) per share: (3)
Basic from continuing operations		$	.18			$	(.08	)		$	(.11	)		$	.37			$	(.10	)
Basic from discontinued operations		$	—			$	(.09	)		$	(.03	)		$	(.04	)		$	(.20	)
Basic		$	.18			$	(.17	)		$	(.14	)		$	.33			$	(.30	)
Diluted from continuing operations		$	.17			$	(.08	)		$	(.11	)		$	.37			$	(.10	)
Diluted from discontinued operations		$	—			$	(.09	)		$	(.03	)		$	(.04	)		$	(.20	)
Diluted		$	.17			$	(.17	)		$	(.14	)		$	.33			$	(.30	)
Weighted-average number of common shares outstanding: (3)
Basic			285,443				283,854				285,282				285,145				283,326
Diluted			290,442				283,854				285,282				289,996				283,326
Adjusted income (loss) derived from operating activities (1) (4)		$	222,444			$	26,047			$	164,419			$	655,433			$	421,904

NABORS INDUSTRIES LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)

		December 31,				September 30,				December 31,
(In thousands, except ratios)		2010				2010				2009
ASSETS
Current assets:
Cash and short-term investments		$	801,190			$	772,469			$	1,090,851
Accounts receivable, net			1,116,510				1,002,974				724,040
Assets held for sale			352,048				345,138				—
Other current assets			343,182				445,343				361,773
Total current assets			2,612,930				2,565,924				2,176,664
Long-term investments and other receivables			40,300				37,448				100,882
Property, plant and equipment, net			7,815,419				7,884,874				7,646,050
Goodwill			494,372				463,427				164,265
Investment in unconsolidated affiliates			267,723				272,432				306,608
Other long-term assets			415,825				396,623				250,221
Total assets		$	11,646,569			$	11,620,728			$	10,644,690
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt		$	1,379,018			$	1,442,714			$	163
Other current liabilities			775,362				818,806				608,459
Total current liabilities			2,154,380				2,261,520				608,622
Long-term debt			3,064,126				3,066,748				3,940,605
Other long-term liabilities			1,016,012				1,002,702				913,484
Total liabilities			6,234,518				6,330,970				5,462,711
Subsidiary preferred stock (1)			69,188				69,188				—
Equity:
Shareholders’ equity			5,328,162				5,207,632				5,167,656
Noncontrolling interest			14,701				12,938				14,323
Total equity			5,342,863				5,220,570				5,181,979
Total liabilities and equity		$	11,646,569			$	11,620,728			$	10,644,690
Cash, short-term and long-term investments (2)		$	841,490			$	809,917			$	1,191,733
Funded debt to capital ratio: (3)
- Gross			0.42 : 1				0.43 : 1				0.41 : 1
- Net of cash and investments			0.37 : 1				0.38 : 1				0.33 : 1
Interest coverage ratio: (4)			7.0 : 1				6.3 : 1				6.3 : 1

NABORS INDUSTRIES LTD. AND SUBSIDIARIES
SEGMENT REPORTING
(Unaudited)

The following tables set forth certain information with respect to our reportable segments and rig activity:

		Three Months Ended												Year Ended
		December 31,								September 30,				December 31,
(In thousands, except rig activity)		2010				2009				2010				2010				2009
Reportable segments:
Operating revenues and Earnings (losses) from unconsolidated affiliates:
Contract Drilling: (1)
U.S. Lower 48 Land Drilling		$	369,591			$	230,789			$	350,348			$	1,294,853			$	1,082,531
U.S. Land Well-servicing			122,687				88,342				119,127				444,665				412,243
U.S. Pressure Pumping (2)			259,684				—				61,611				321,295				—
U.S. Offshore			20,081				29,258				26,504				123,761				157,305
Alaska			40,119				43,208				45,920				179,218				204,407
Canada			127,186				81,189				85,728				389,229				298,653
International			292,722				287,230				288,535				1,093,608				1,265,097
Subtotal Contract Drilling (3)			1,232,070				760,016				977,773				3,846,629				3,420,236
Oil and Gas (4)			8,929				(104,906	)			11,280				40,611				(158,780	)
Other Operating Segments (5) (6)			123,239				96,109				130,392				456,893				446,282
Other reconciling items (7)			(41,311	)			(24,045	)			(38,342	)			(136,241	)			(179,752	)
Total		$	1,322,927			$	727,174			$	1,081,103			$	4,207,892			$	3,527,986
Adjusted income (loss) derived from operating activities:
Contract Drilling: (1)
U.S. Lower 48 Land Drilling		$	85,308			$	48,980			$	70,452			$	274,215			$	294,679
U.S. Land Well-servicing			12,132				8,758				9,049				31,597				28,950
U.S. Pressure Pumping (2)			54,664				—				11,987				66,651				—
U.S. Offshore			(5,142	)			7,117				(1,090	)			9,245				30,508
Alaska			11,252				14,398				14,299				51,896				62,742
Canada			16,572				632				1,013				22,970				(7,019	)
International			71,814				74,423				64,379				254,744				365,566
Subtotal Contract Drilling (3)			246,600				154,308				170,089				711,318				775,426
Oil and Gas (4)			675				(114,693	)			1,037				6,329				(190,798	)
Other Operating Segments (5) (6)			10,003				5,867				17,969				43,179				34,120
Other reconciling items (8)			(34,834	)			(19,435	)			(24,676	)			(105,393	)			(196,844	)
Total			222,444				26,047				164,419				655,433				421,904
Interest expense			(74,009	)			(66,263	)			(66,973	)			(273,044	)			(266,039	)
Investment income (loss)			8,624				51				(733	)			7,648				25,599
(Losses) gains on sales and retirements of
long-lived assets and other (expense) income, net			(6,262	)			(11,934	)			(9,407	)			(47,060	)			(12,559	)
Impairments and other charges (9)			(137,832	)			(103,893	)			(123,099	)			(260,931	)			(330,976	)
Income (loss) before income taxes from continuing operations		$	12,965			$	(155,992	)		$	(35,793	)		$	82,046			$	(162,071	)
Rig activity:
Rig years: (10)
U.S. Lower 48 Land Drilling			184.3				139.1				182.2				174.5				149.4
U.S. Offshore			6.5				8.6				8.2				9.4				11.0
Alaska			6.0				8.0				6.7				7.4				10.0
Canada			39.3				21.2				27.5				29.8				19.7
International (11)			102.1				85.9				103.0				97.8				100.2
Total rig years			338.2				262.8				327.6				318.9				290.3
Rig hours: (12)
U.S. Land Well-servicing			169,318				133,474				168,949				643,813				590,878
Canada Well-servicing			49,740				38,018				44,606				172,589				143,824
Total rig hours			219,058				171,492				213,555				816,402				734,702

NABORS INDUSTRIES LTD. AND SUBSIDIARIES
COMPUTATION OF EARNINGS (LOSSES) PER SHARE
(Unaudited)

A reconciliation of the numerators and denominators of the basic and diluted earnings (losses) per share computations is as follows:

		Three Months Ended												Year Ended
		December 31,								September 30,				December 31,
(In thousands, except per share amounts)		2010				2009				2010				2010				2009
Net income (loss) attributable to Nabors (numerator):
Income (loss) from continuing operations, net of tax		$	50,183			$	(21,461	)		$	(31,563	)		$	106,110			$	(28,268	)
Less: net (income) loss attributable to noncontrolling interest			(1,293	)			(34	)			(453	)			(85	)			342
Adjusted income (loss) from continuing operations, net of tax — basic		$	48,890			$	(21,495	)		$	(32,016	)		$	106,025			$	(27,926	)
Add interest expense on assumed conversion of our 0.94% senior exchangeable notes due 2011, net of tax (1)			—				—				—				—				—
Adjusted income (loss) from continuing operations, net of tax — diluted		$	48,890			$	(21,495	)		$	(32,016	)		$	106,025			$	(27,926	)
Income (loss) from discontinued operations, net of tax			1,591				(25,765	)			(7,591	)			(11,330	)			(57,620	)
Adjusted net income (loss) attributable to Nabors		$	50,481			$	(47,260	)		$	(39,607	)		$	94,695			$	(85,546	)
Earnings (losses) per share:
Basic from continuing operations		$	.18			$	(.08	)		$	(.11	)		$	.37			$	(.10	)
Basic from discontinued operations			—				(.09	)			(.03	)			(.04	)			(.20	)
Total Basic		$	.18			$	(.17	)		$	(.14	)		$	.33			$	(.30	)
Diluted from continuing operations		$	.17			$	(.08	)		$	(.11	)		$	.37			$	(.10	)
Diluted from discontinued operations			—				(.09	)			(.03	)			(.04	)			(.20	)
Total Diluted		$	.17			$	(.17	)		$	(.14	)		$	.33			$	(.30	)
Shares (denominator):
Weighted-average number of shares outstanding-basic (2)			285,443				283,854				285,282				285,145				283,326
Net effect of dilutive stock options, warrants and restricted stock awards based on the if-converted method			4,999				—				—				4,851				—
Assumed conversion of our 0.94% senior exchangeable notes due 2011 (1)			—				—				—				—				—
Weighted-average number of shares outstanding — diluted			290,442				283,854				285,282				289,996				283,326

For all periods presented, the computation of diluted earnings (losses) per share excluded outstanding stock options and warrants with exercise prices greater than the average market price of Nabors’ common shares, because their inclusion would have been anti-dilutive and because they were not considered participating securities. The average number of options and warrants that were excluded from diluted earnings (losses) per share that would have potentially diluted earnings (losses) per share in the future were 13,693,063 and 34,197,583 shares during the three months ended December 31, 2010 and 2009, respectively; and 32,543,395 shares during the three months ended September 30, 2010; and 14,004,749 and 34,113,887 shares during the years ended December 31, 2010 and 2009, respectively. In any period during which the average market price of Nabors’ common shares exceeds the exercise prices of these stock options and warrants, such stock options and warrants are included in our diluted earnings (losses) per share computation using the if-converted method of accounting. Restricted stock is included in our basic and diluted earnings (losses) per share computation using the two-class method of accounting in all periods because it is considered a participating security.

NABORS INDUSTRIES LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (LOSS) EXCLUDING CERTAIN NON-CASH CHARGES (NON-GAAP)
(Unaudited)

		Three Months Ended												Three Months Ended												Year Ended
		December 31, 2010												September 30, 2010												December 31, 2010
										As adjusted to												As adjusted to												As adjusted to
										Exclude												Exclude												Exclude
		Actuals								Charges				Actuals								Charges				Actuals								Charges
(In thousands, except per share amounts)		(GAAP)				Charges				(Non-GAAP)(1)				(GAAP)				Charges				(Non-GAAP)(1)				(GAAP)				Charges				(Non-GAAP)(1)
Revenues and other income:
Operating revenues		$	1,317,999			$	—			$	1,317,999			$	1,069,261			$	—			$	1,069,261			$	4,174,635			$	—			$	4,174,635
Earnings (losses) from unconsolidated affiliates			4,928				—				4,928				11,842				—				11,842				33,257				—				33,257
Investment income			8,624				—				8,624				(733	)			3,656				2,923				7,648				3,656				11,304
Total revenues and other income			1,331,551				—				1,331,551				1,080,370				3,656				1,084,026				4,215,540				3,656				4,219,196
Costs and other deductions:
Direct costs			775,313				—				775,313				625,561				—				625,561				2,423,602				—				2,423,602
General and administrative expenses			103,704				—				103,704				87,194				—				87,194				346,661				—				346,661
Depreciation and amortization			219,169				—				219,169				198,151				—				198,151				764,253				—				764,253
Depletion			2,297				—				2,297				5,778				—				5,778				17,943				—				17,943
Interest expense			74,009				—				74,009				66,973				—				66,973				273,044				—				273,044
Losses (gains) on sales and retirements of long-lived assets and other expense (income), net			6,262				—				6,262				9,407				(7,000	)			2,407				47,060				(7,000	)			40,060
Impairments and other charges			137,832				(137,832	)			—				123,099				(123,099	)			—				260,931				(260,931	)			—
Total costs and other deductions			1,318,586				(137,832	)			1,180,754				1,116,163				(130,099	)			986,064				4,133,494				(267,931	)			3,865,563
Income (loss) from continuing operations before income taxes			12,965				137,832				150,797				(35,793	)			133,755				97,962				82,046				271,587				353,633
Income tax expense (benefit)			(37,968	)			60,336				22,368				(4,230	)			17,475				13,245				(24,814	)			77,811				52,997
Subsidiary preferred stock dividend			750				—				750				—				—				—				750				—				750
Income (loss) from continuing operations, net of tax			50,183				77,496				127,679				(31,563	)			116,280				84,717				106,110				193,776				299,886
Income (loss) from discontinued operations, net of tax			1,591				—				1,591				(7,591	)			—				(7,591	)			(11,330	)			—				(11,330	)
Net income (loss)			51,774				77,496				129,270				(39,154	)			116,280				77,126				94,780				193,776				288,556
Less: Net (income) loss attributable to noncontrolling interest			(1,293	)			—				(1,293	)			(453	)			—				(453	)			(85	)			—				(85	)
Net income (loss) attributable to Nabors		$	50,481			$	77,496			$	127,977			$	(39,607	)		$	116,280			$	76,673			$	94,695			$	193,776			$	288,471
Earnings (losses) per share:
Diluted from continuing operations		$	.17			$	.27			$	.44			$	(.11	)		$	.40			$	.29			$	.37			$	.66			$	1.03
Diluted from discontinued operations			—				—				—				(.03	)			.01				(.02	)			(.04	)			—				(.04	)
Earnings (losses) per share — diluted		$	.17			$	.27			$	.44			$	(.14	)		$	.41			$	.27			$	.33			$	.66			$	.99
Weighted-average number of common shares outstanding — diluted			290,442								290,442				285,282								289,008				289,996								289,996
Adjusted income (loss) derived from operating activities (2)		$	222,444			$	—			$	222,444			$	164,419			$	—			$	164,419			$	655,433			$	—			$	655,433

NABORS INDUSTRIES LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (LOSS) EXCLUDING CERTAIN NON-CASH CHARGES (NON-GAAP)
(Unaudited)

		Three Months Ended												Year Ended
		December 31, 2009												December 31, 2009
										As adjusted to												As adjusted to
										Exclude												Exclude
		Actuals								Charges				Actuals								Charges
(In thousands, except per share amounts)		(GAAP)				Charges				(Non-GAAP)(1)				(GAAP)				Charges				(Non-GAAP)(1)
Revenues and other income:
Operating revenues		$	829,475			$	—			$	829,475			$	3,683,419			$	—			$	3,683,419
Earnings (losses) from unconsolidated affiliates			(102,301	)			114,311				12,010				(155,433	)			197,606				42,173
Investment income (loss)			51				—				51				25,599				—				25,599
Total revenues and other income			727,225				114,311				841,536				3,553,585				197,606				3,751,191
Costs and other deductions:
Direct costs			455,328				—				455,328				2,001,404				—				2,001,404
General and administrative expenses			75,949				—				75,949				428,161				(62,114	)			366,047
Depreciation and amortization			168,270				—				168,270				667,100				—				667,100
Depletion			1,580				—				1,580				9,417				—				9,417
Interest expense			66,263				—				66,263				266,039				—				266,039
Losses (gains) on sales and retirements of long-lived assets and other expense (income), net			11,934				—				11,934				12,559				—				12,559
Impairments and other charges			103,893				(103,893	)			—				330,976				(330,976	)			—
Total costs and other deductions			883,217				(103,893	)			779,324				3,715,656				(393,090	)			3,322,566
Income (loss) from continuing operations before income taxes			(155,992	)			218,204				62,212				(162,071	)			590,696				428,625
Income tax expense (benefit)			(134,531	)			161,647				27,116				(133,803	)			177,998				44,195
Income (loss) from continuing operations, net of tax			(21,461	)			56,557				35,096				(28,268	)			412,698				384,430
Income (loss) from discontinued operations, net of tax			(25,765	)			42,227				16,462				(57,620	)			42,227				(15,393	)
Net income (loss)			(47,226	)			98,784				51,558				(85,888	)			454,925				369,037
Less: Net (income) loss attributable to noncontrolling interest			(34	)			—				(34	)			342				—				342
Net income (loss) attributable to Nabors		$	(47,260	)		$	98,784			$	51,524			$	(85,546	)		$	454,925			$	369,379
Earnings (losses) per share:
Diluted from continuing operations		$	(.08	)		$	.20			$	.12			$	(.10	)		$	1.44			$	1.34
Diluted from discontinued operations			(.09	)			.15				.06				(.20	)			.15				(.05	)
Earnings (losses) per share — diluted		$	(.17	)		$	.35			$	.18			$	(.30	)		$	1.59			$	1.29
Weighted-average number of common shares outstanding — diluted			283,854								289,427				283,326								286,502
Adjusted income (loss) derived from operating activities (2)		$	26,047			$	114,311			$	140,358			$	421,904			$	259,720			$	681,624

NABORS INDUSTRIES LTD. AND SUBSIDIARIES
SUMMARY OF NON-CASH CHARGES (NON-GAAP)
(Unaudited)

		Three Months Ended												Year Ended
		December 31,								September 30,				December 31,
(In thousands)		2010				2009				2010				2010				2009
Equity method oil and gas joint venture impairments		$	—			$	(114,311	)		$	—			$	—			$	(197,606	)
Goodwill impairment			—				—				(10,707	)			(10,707	)			(14,689	)
Rig asset retirements and impairments			—				—				(58,045	)			(58,045	)			(64,229	)
Stock compensation charge			—				—				—				—				(62,114	)
Impairments of oil and gas assets			(137,832	)			(85,228	)			(54,347	)			(192,179	)			(197,744	)
Other-than-temporary impairments on securities			—				(18,665	)			—				—				(54,314	)
Acquisition related expenses			—				—				(7,000	)			(7,000	)			—
Other non-operational items			—				—				(3,656	)			(3,656	)			—
Total charges before income taxes			(137,832	)			(218,204	)			(133,755	)			(271,587	)			(590,696	)
Tax benefit (1)			60,336				161,647				17,475				77,811				177,998
Total charges after income taxes			(77,496	)			(56,557	)			(116,280	)			(193,776	)			(412,698	)
Discontinued Operations			—				(42,227	)			—				—				(42,227	)
Total charges, net of income taxes		$	(77,496	)		$	(98,784	)		$	(116,280	)		$	(193,776	)		$	(454,925	)