Exhibit 99.1

		NEWS RELEASE

Nabors 3Q2010 EPS Equals $0.29 From Continuing Operations, Excluding
Acquisition Expenses and Certain Non-Cash Asset Impairments

Hamilton, Bermuda, October 26, 2010 /PRNewswire-FirstCall/ Nabors Industries Ltd. (NYSE: NBR) today announced its results for the third quarter and nine months ended September 30, 2010. Adjusted income derived from operating activities was $164.4 million for the third quarter, compared to $117.2 million in the third quarter of 2009 and $126.8 million in the second quarter of this year. Excluding certain non-cash asset impairments and expenses related to the acquisition of Superior Well Services Inc., net income from continuing operations was $84.7 million ($0.29 per diluted share) for the third quarter, compared to $66.7 million ($0.23 per diluted share) in the third quarter of 2009 and $44.0 million ($0.15 per diluted share) in the second quarter of this year. Including these charges, income from continuing operations was a loss of $31.6 million ($0.11 per diluted share). For the nine months ended September 30, 2010, adjusted income derived from operating activities was $433.0 million, compared to $395.9 million in 2009. Net income from continuing operations, excluding the aforementioned items, was $172.2 million ($0.59 per diluted share) for the first nine months of 2010, compared to $349.3 million ($1.23 per diluted share) in the first nine months of 2009. The excluded items during the quarter amounted to $134 million, or $0.40 per share, the largest component of which was impairments to goodwill and various underutilized assets primarily in the Company’s US Offshore operations. The drilling slowdown following the Gulf of Mexico blowout is likely to restrict utilization of these assets for some time. The impairments also included the writedown of an E&P investment. Because most of the Company’s wholly owned and joint-venture interests in Canada and Colombia are being marketed for sale, their results have been classified as discontinued operations beginning this quarter.

Gene Isenberg, Nabors’ Chairman and CEO, commented, “The quarter represented solid operational performance by most of our North American businesses. This is particularly notable considering the flat results in our International operations, a slight loss in our US Offshore unit and only 20 days of contribution from our recently acquired pressure pumping operations. GAAP net income reflected pre-tax charges of $7 million in acquisition transaction expenses and $127 million in non-cash asset impairment charges.

“The most significant sequential increase occurred in our US Lower 48 operations which posted $70.5 million in operating income, compared to the $58.2 million this unit realized in the second quarter. The improvement was primarily due to an $841 increase in average margins, bringing the quarterly average to $8,629 per rig day, augmented by a ten-rig increase during the third quarter, bringing the average rig count to 182.2 rig years. Today’s rig count stands slightly higher at 187 rigs. An important achievement during the quarter was the entry into long-term contractual commitments for 11 more new-build rigs, bringing the total to 23 for the year, including three economically equivalent major refurbishments. Eleven of these rigs are destined for the Bakken Shale where we enjoy a dominant position. Three of the remaining rigs will deploy in the Eagle Ford Shale, one in the Haynesville, the other five rigs to the Marcellus Shale, where we have a small but growing presence. The performance of our PACE^® rigs, especially the new B Series, continues to lead to more inquiries and is supporting modest improvement in leading edge rates. The gap between these rates and our current average rates is significant but they continue to converge as contracts renew. Nevertheless, cost pressure still remains in the most active markets.

“Recent increases in this unit’s rig count are the net result of higher activity in the oil and liquids-rich drilling plays, significantly offset by reduced dry gas drilling. We expect this trend to continue given the disparity between the forward strips for oil compared to natural gas. This is leading to a net modest improvement in our rig count through next year and keeps us cautiously optimistic regarding the 2011 outlook.

“International income was $64.4 million, essentially flat compared to the second quarter. The sequential rig count increased by five rigs, averaging 103 for the quarter. The incremental contribution from these rigs was largely offset by a $562 decrease in average rates. Along with most of the other larger oil service companies, we have further tempered our international outlook as the market continues to lag everyone’s expectations. We now anticipate a sequential decrease on the order of 15% in the fourth quarter and foresee 2011 as essentially flat compared to 2010. We have a significant number of incremental rig deployments scheduled over the next five quarters, but the associated $50 million in additional income will be mostly offset by a large number of expiring contracts renewing at market rates. The largest negative impact is expected from three jackup rig renewals in the Arabian Gulf during the fourth, first and second quarters.

“Income in our US Land Well Servicing unit was $9.0 million, a significant increase over the $3.2 million recorded in the second quarter. Rig hours in the quarter grew to 169,000, up 13,000 from second quarter, while average rig rates increased by $25 per hour. This increased activity was enabled by the extraordinary overtime and rig reactivation expenses incurred last quarter. Today’s level of activity represents a nearly 30% increase over last year, better than the industry average. The effective utilization of ready-to-run rigs and available crews combined with continuing strong oil prices augurs well for improved pricing industry wide. This pricing momentum, combined with further realization of synergistic opportunities through our newly acquired pressure pumping business, suggests solid results in the historically slow fourth quarter and a promising 2011, although still well below the peak levels this business achieved in 2006.

“As expected, we incurred a $1.1 million loss in our US Offshore business due to the lower levels of activity in the Gulf of Mexico following the Macondo blowout. We expect a similar result in the fourth quarter, although we are cautiously optimistic the outlook will improve in 2011 in spite of ongoing permitting delays. However, we still expect activity in this market to be inhibited over the next few years given the more onerous regulatory environment, which led us to impair the carrying value of some of this unit’s goodwill and underutilized assets. On the positive side, we are proceeding with engineering and construction of two first-of-a-kind 4,500 horsepower deepwater platform rigs recently awarded by two major customers. Both projects are scheduled to deploy in late 2012 and entail five to ten-year drilling programs. It is also likely that regulatory authorities will require that some 3,500 wells in the Gulf of Mexico be plugged and abandoned. This holds significant promise for our Sundowner platform and workover jackup rigs.

“In Canada, we posted $1.0 million in operating income, a significant improvement over the $9.5 million loss in the seasonally low second quarter. We have significantly increased our income expectations for both this year and next as a result of higher activity and rigorous cost control. The higher activity is occurring in the British Columbia shale plays, the traditional oil areas of Alberta and Saskatchewan, and the emerging oil shale plays, particularly the Cardium Shale in south central Alberta. Another significant driver is drilling in support of potash development. This unit is building three new rigs, the first of which will deploy in our US Lower 48 operations. An award for the second rig is pending in Canada, and there is strong interest in the innovative design of the third rig, which is targeted at pad drilling applications and should deliver late next year.

“Quarterly results in our Alaskan unit were higher than expected at $14.3 million, with extra income derived from higher rig activity, demobilization fees and camp rentals in support of

various maintenance and construction projects. The quarter also benefited from the acceleration of deferred revenues triggered by the impending end of the primary term of a long-term contract. The end of this contract, the recent wind up of another 12-year contract and spending cuts by the largest operator in this market have caused us to lower our 2011 expectations considerably. Over time, we expect strong crude prices will result in a return to more robust spending and Nabors should be the largest beneficiary given the quality of our operations and rigs and our patented coiled technology.

“Our Other Operating Segments posted an excellent quarter, primarily on the strength of strong results in Canrig which were driven by strong third-party equipment sales and increasing income from our Rockit™ directional drilling technology. Results in our Alaskan joint ventures also contributed significantly. We expect results to be sustainable given Canrig’s third-party backlog, the continuing success of the Rockit™ technology and the rollout of additional directional drilling technologies.

“Our Oil and Gas operations posted income of $1.0 million with the reclassification of our Colombian and Canadian entities as discontinued operations. The proposed sale of these two units is moving ahead expeditiously, with discussions underway with numerous interested parties regarding both regions. Two investment banks are marketing our Colombian properties, with one of them also representing us in Canada. Our expectations of realized value remain intact.

“The most notable development of the quarter was the acquisition of Superior Well Services in an all-cash transaction with an enterprise value of approximately $900 million. We were able to close and finance the transaction within five weeks of the announcement of a definitive agreement. Our consolidated results reflect only $12.0 million in operating income from the 20 days this unit was part of Nabors. In the short time we have owned Superior, the quality of their equipment and technology and the capability of their field personnel and management teams have exceeded our expectations. We have already realized significant economies in procurement, consolidated certain facilities, and integrated Superior’s fluids management business into Nabors Well Services. We still see further synergies and significant investment opportunities facilitated by Nabors’ ability to fund this previously capital-constrained business.

“Our financial position is strong with $810 million in cash and investments at the end of the quarter. This ending balance reflects the all-cash acquisition of Superior and the attendant issuance of $700 million in senior unsecured notes, due 2020, at an annual yield of 5%. In mid-September we also established a $700 million, four-year, committed revolving credit facility which allows us to borrow at LIBOR plus 1.50%. The availability of this credit facility, our expectation of significant free cash flow in subsequent quarters and the anticipated proceeds from the sale of certain E&P properties, leads us to conclude we can comfortably redeem the $1.4 billion in convertible notes due next May and fund anticipated capital expenditures. This should negate the need for issuance of equity in any form or additional borrowings, other than temporary draws on our revolver.

“In summary, we are quite optimistic regarding the direction of our business, notwithstanding a persistently low natural gas strip and the tempered outlook for our International segment.”

The Nabors companies own and operate approximately 554 land drilling and approximately 728 land workover and well-servicing rigs in North America. Nabors’ actively marketed offshore fleet consists of 38 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.

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												Nine Months Ended
		September 30,								June 30,				September 30,
(In thousands, except per share amounts)		2010				2009				2010				2010				2009
Revenues and other income:
Operating revenues		$	1,069,261			$	789,200			$	896,029			$	2,856,636			$	2,853,944
Earnings (losses) from unconsolidated affiliates (1)			11,842				17,103				8,845				28,329				(53,132	)
Investment income (loss)			(733	)			(1,806	)			2,314				(976	)			25,548
Total revenues and other income			1,080,370				804,497				907,188				2,883,989				2,826,360
Costs and other deductions:
Direct costs			625,561				431,280				517,531				1,648,289				1,546,076
General and administrative expenses			87,194				81,637				80,337				242,957				352,212
Depreciation and amortization			198,151				173,701				175,397				545,084				498,830
Depletion			5,778				2,494				4,841				15,646				7,837
Interest expense			66,973				66,671				65,293				199,035				199,776
Losses (gains) on sales and retirements of long-lived assets and other expense (income), net			9,407				10,516				11,024				40,798				625
Impairments and other charges (2)			123,099				—				—				123,099				227,083
Total costs and other deductions			1,116,163				766,299				854,423				2,814,908				2,832,439
Income (loss) from continuing operations before income taxes			(35,793	)			38,198				52,765				69,081				(6,079	)
Income tax expense (benefit):
Current			(71,276	)			37,901				17,652				(40,979	)			43,933
Deferred			67,046				(53,378	)			(8,858	)			54,133				(43,205	)
Income tax expense (benefit)			(4,230	)			(15,477	)			8,794				13,154				728
Income (loss) from continuing operations, net of tax			(31,563	)			53,675				43,971				55,927				(6,807	)
Income (loss) from discontinued operations, net of tax			(7,591	)			(23,250	)			(909	)			(12,921	)			(31,855	)
Net income (loss)			(39,154	)			30,425				43,062				43,006				(38,662	)
Less: Net (income) loss attributable to noncontrolling interest			(453	)			(895	)			559				1,208				376
Net income (loss) attributable to Nabors		$	(39,607	)		$	29,530			$	43,621			$	44,214			$	(38,286	)
Earnings (losses) per share: (3)
Basic from continuing operations		$	(.11	)		$	.18			$	.15			$	.21			$	(.03	)
Basic from discontinued operations		$	(.03	)		$	(.08	)		$	—			$	(.05	)		$	(.11	)
Basic		$	(.14	)		$	.10			$	.15			$	.16			$	(.14	)
Diluted from continuing operations		$	(.11	)		$	.18			$	.15			$	.19			$	(.03	)
Diluted from discontinued operations		$	(.03	)		$	(.08	)		$	—			$	(.04	)		$	(.11	)
Diluted		$	(.14	)		$	.10			$	.15			$	.15			$	(.14	)
Weighted-average number of common shares outstanding: (3)
Basic			285,282				283,197				285,181				285,045				283,150
Diluted			285,282				287,407				289,796				289,847				283,150
Adjusted income (loss) derived from operating activities (1) (4)		$	164,419			$	117,191			$	126,768			$	432,989			$	395,857

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

		September 30,				June 30,				December 31,
(In thousands, except ratios)		2010				2010				2009
ASSETS
Current assets:
Cash and short-term investments		$	772,469			$	892,876			$	1,090,851
Accounts receivable, net			1,002,974				762,589				724,040
Assets held for sale			345,138				—				—
Other current assets			445,343				369,943				361,773
Total current assets			2,565,924				2,025,408				2,176,664
Long-term investments and other receivables			37,448				93,965				100,882
Property, plant and equipment, net			7,884,874				7,641,563				7,646,050
Goodwill			463,427				164,078				164,265
Investment in unconsolidated affiliates			272,432				321,293				306,608
Other long-term assets			396,623				253,834				250,221
Total assets		$	11,620,728			$	10,500,141			$	10,644,690
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt		$	1,442,714			$	1,345,819			$	163
Other current liabilities			818,806				642,263				608,459
Total current liabilities			2,261,520				1,988,082				608,622
Long-term debt			3,066,748				2,364,703				3,940,605
Other long-term liabilities			1,002,702				918,947				913,484
Total liabilities			6,330,970				5,271,732				5,462,711
Preferred Stock (1)			69,188				—				—
Equity:
Shareholders’ equity			5,207,632				5,216,308				5,167,656
Noncontrolling interest			12,938				12,101				14,323
Total equity			5,220,570				5,228,409				5,181,979
Total liabilities and equity		$	11,620,728			$	10,500,141			$	10,644,690
Cash, short-term and long-term investments (2)		$	809,917			$	986,841			$	1,191,733
Funded debt to capital ratio: (3)
- Gross			0.43 : 1				0.39 : 1				0.41 : 1
- Net of cash and investments			0.38 : 1				0.32 : 1				0.33 : 1
Interest coverage ratio: (4)			6.3 : 1				5.9 : 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												Nine Months Ended
		September 30,								June 30,				September 30,
(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		$	350,348			$	212,004			$	303,417			$	925,262			$	851,742
U.S. Land Well-servicing			119,127				89,459				104,860				321,978				323,901
U.S. Pressure Pumping (2)			61,611				—				—				61,611				—
U.S. Offshore			26,504				25,708				38,978				103,680				128,047
Alaska			45,920				45,210				43,385				139,099				161,199
Canada			85,728				58,219				60,759				262,043				217,464
International			288,535				307,660				267,007				800,886				977,867
Subtotal Contract Drilling (3)			977,773				738,260				818,406				2,614,559				2,660,220
Oil and Gas (4)			11,280				11,022				9,800				31,682				(53,874	)
Other Operating Segments (5) (6)			130,392				89,774				107,749				333,654				350,173
Other reconciling items (7)			(38,342	)			(32,753	)			(31,081	)			(94,930	)			(155,707	)
Total		$	1,081,103			$	806,303			$	904,874			$	2,884,965			$	2,800,812
Adjusted income (loss) derived from operating activities:
Contract Drilling: (1)
U.S. Lower 48 Land Drilling		$	70,452			$	46,382			$	58,169			$	188,907			$	245,699
U.S. Land Well-servicing			9,049				342				3,231				19,465				20,192
U.S. Pressure Pumping (2)			11,987				—				—				11,987				—
U.S. Offshore			(1,090	)			(163	)			8,104				14,387				23,391
Alaska			14,299				11,145				12,388				40,644				48,344
Canada			1,013				(10,448	)			(9,497	)			6,398				(7,651	)
International			64,379				86,865				64,972				182,930				291,143
Subtotal Contract Drilling (3)			170,089				134,123				137,367				464,718				621,118
Oil and Gas (4)			1,037				4,322				1,998				5,654				(76,105	)
Other Operating Segments (5) (6)			17,969				3,978				8,317				33,176				28,253
Other reconciling items (8)			(24,676	)			(25,232	)			(20,914	)			(70,559	)			(177,409	)
Total			164,419				117,191				126,768				432,989				395,857
Interest expense			(66,973	)			(66,671	)			(65,293	)			(199,035	)			(199,776	)
Investment income (loss)			(733	)			(1,806	)			2,314				(976	)			25,548
(Losses) gains on sales and retirements of long-lived assets and other (expense) income, net			(9,407	)			(10,516	)			(11,024	)			(40,798	)			(625	)
Impairments and other charges (9)			(123,099	)			—				—				(123,099	)			(227,083	)
Income (loss) before income taxes from continuing operations		$	(35,793	)		$	38,198			$	52,765			$	69,081			$	(6,079	)
Rig activity:
Rig years: (10)
U.S. Lower 48 Land Drilling			182.2				123.6				172.3				171.2				152.8
U.S. Offshore			8.2				7.8				11.0				10.4				11.7
Alaska			6.7				9.0				8.0				7.9				10.7
Canada			27.5				12.3				17.7				26.6				19.2
International (11)			103.0				97.1				97.6				96.3				105.0
Total rig years			327.6				249.8				306.6				312.4				299.4
Rig hours: (12)
U.S. Land Well-servicing			168,949				135,040				157,199				474,495				457,404
Canada Well-servicing			44,606				31,686				32,211				122,849				105,806
Total rig hours			213,555				166,726				189,410				597,344				563,210

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												Nine Months Ended
		September 30,								June 30,				September 30,
(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		$	(31,563	)		$	53,675			$	43,971			$	55,927			$	(6,807	)
Less: net (income) loss attributable to noncontrolling interest			(453	)			(895	)			559				1,208				376
Adjusted income (loss) from continuing operations, net of tax — basic		$	(32,016	)		$	52,780			$	44,530			$	57,135			$	(6,431	)
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		$	(32,016	)		$	52,780			$	44,530			$	57,135			$	(6,431	)
Income (loss) from discontinued operations, net of tax			(7,591	)			(23,250	)			(909	)			(12,921	)			(31,855	)
Total adjusted net income (loss)		$	(39,607	)		$	29,530			$	43,621			$	44,214			$	(38,286	)
Earnings (losses) per share:
Basic from continuing operations		$	(.11	)		$	.18			$	.15			$	.21			$	(.03	)
Basic from discontinued operations			(.03	)			(.08	)			—				(.05	)			(.11	)
Total Basic		$	(.14	)		$	.10			$	.15			$	.16			$	(.14	)
Diluted from continuing operations		$	(.11	)		$	.18			$	.15			$	.19			$	(.03	)
Diluted from discontinued operations			(.03	)			(.08	)			—				(.04	)			(.11	)
Total Diluted		$	(.14	)		$	.10			$	.15			$	.15			$	(.14	)
Shares (denominator):
Weighted-average number of shares outstanding-basic (2)			285,282				283,197				285,181				285,045				283,150
Net effect of dilutive stock options, warrants and restricted stock awards based on the if-converted method			—				4,210				4,615				4,802				—
Assumed conversion of our 0.94% senior exchangeable notes due 2011 (1)			—				—				—
Weighted-average number of shares outstanding — diluted			285,282				287,407				289,796				289,847				283,150

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 32,543,395 and 16,595,790 shares during the three months ended September 30, 2010 and 2009, respectively; and 14,894,841 shares during the three months ended June 30, 2010; and 14,108,644 and 34,085,988 shares during the nine months ended September 30, 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												Nine Months Ended
		September 30, 2010												June 30, 2010												September 30, 2010
		Actuals								As adjusted to Exclude Charges				Actuals								As adjusted to Exclude Charges				Actuals								As adjusted to Exclude 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		$	1,069,261			$	—			$	1,069,261			$	896,029			$	—			$	896,029			$	2,856,636			$	—			$	2,856,636
Earnings (losses) from unconsolidated affiliates			11,842				—				11,842				8,845				—				8,845				28,329				—				28,329
Investment income			(733	)			3,656				2,923				2,314				—				2,314				(976	)			3,656				2,680
Total revenues and other income			1,080,370				3,656				1,084,026				907,188				—				907,188				2,883,989				3,656				2,887,645
Costs and other deductions:
Direct costs			625,561				—				625,561				517,531				—				517,531				1,648,289				—				1,648,289
General and administrative expenses			87,194				—				87,194				80,337				—				80,337				242,957				—				242,957
Depreciation and amortization			198,151				—				198,151				175,397				—				175,397				545,084				—				545,084
Depletion			5,778				—				5,778				4,841				—				4,841				15,646				—				15,646
Interest expense			66,973				—				66,973				65,293				—				65,293				199,035				—				199,035
Losses (gains) on sales and retirements of long-lived assets and other expense (income), net			9,407				(7,000	)			2,407				11,024				—				11,024				40,798				(7,000	)			33,798
Impairments and other charges			123,099				(123,099	)			—				—				—				—				123,099				(123,099	)			—
Total costs and other deductions			1,116,163				(130,099	)			986,064				854,423				—				854,423				2,814,908				(130,099	)			2,684,809
Income (loss) from continuing operations before income taxes			(35,793	)			133,755				97,962				52,765				—				52,765				69,081				133,755				202,836
Income tax expense (benefit)			(4,230	)			17,475				13,245				8,794				—				8,794				13,154				17,475				30,629
Income (loss) from continuing operations, net of tax			(31,563	)			116,280				84,717				43,971				—				43,971				55,927				116,280				172,207
Income (loss) from discontinued operations, net of tax			(7,591	)			—				(7,591	)			(909	)			—				(909	)			(12,921	)			—				(12,921	)
Net income (loss)			(39,154	)			116,280				77,126				43,062				—				43,062				43,006				116,280				159,286
Less: Net (income) loss attributable to noncontrolling interest			(453	)			—				(453	)			559				—				559				1,208				—				1,208
Net income (loss) attributable to Nabors		$	(39,607	)		$	116,280			$	76,673			$	43,621			$	—			$	43,621			$	44,214			$	116,280			$	160,494
Earnings (losses) per share:
Diluted from continuing operations		$	(.11	)		$	.40			$	.29			$	.15			$	—			$	.15			$	.19			$	.40			$	.59
Diluted from discontinued operations			(.03	)			—				(.02	)			—				—				—				(.04	)			—				(.04	)
Earnings (losses) per share — diluted		$	(.14	)		$	.40			$	.27			$	.15			$	—			$	.15			$	.15			$	.40			$	.55
Weighted-average number of common shares outstanding — diluted			285,282								289,008				289,796								289,796				289,847								289,847
Adjusted income (loss) derived from operating activities (2)		$	164,419			$	—			$	164,419			$	126,768			$	—			$	126,768			$	432,989			$	—			$	432,989

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

		Three Months Ended												Nine Months Ended
		September 30, 2009												September 30, 2009
		Actuals								As adjusted to Exclude Charges				Actuals								As adjusted to Exclude Charges
(In thousands, except per share amounts)		(GAAP)				Charges				(Non-GAAP)(1)				(GAAP)				Charges				(Non-GAAP)(1)
Revenues and other income:
Operating revenues		$	789,200			$	—			$	789,200			$	2,853,944			$	—			$	2,853,944
Earnings (losses) from unconsolidated affiliates			17,103				—				17,103				(53,132	)			83,295				30,163
Investment income (loss)			(1,806	)			—				(1,806	)			25,548				—				25,548
Total revenues and other income			804,497				—				804,497				2,826,360				83,295				2,909,655
Costs and other deductions:
Direct costs			431,280				—				431,280				1,546,076				(62,114	)			1,483,962
General and administrative expenses			81,637				—				81,637				352,212				—				352,212
Depreciation and amortization			173,701				—				173,701				498,830				—				498,830
Depletion			2,494				—				2,494				7,837				—				7,837
Interest expense			66,671				—				66,671				199,776				—				199,776
Losses (gains) on sales and retirements of long-lived assets and other expense (income), net			10,516				—				10,516				625				—				625
Impairments and other charges			—				—				—				227,083				(227,083	)			—
Total costs and other deductions			766,299				—				766,299				2,832,439				(289,197	)			2,543,242
Income (loss) from continuing operations before income taxes			38,198				—				38,198				(6,079	)			372,492				366,413
Income tax expense (benefit)			(15,477	)			(12,997	)			(28,474	)			728				16,351				17,079
Income (loss) from continuing operations, net of tax			53,675				12,997				66,672				(6,807	)			356,141				349,334
Income (loss) from discontinued operations, net of tax			(23,250	)			—				(23,250	)			(31,855	)			—				(31,855	)
Net income (loss)			30,425				12,997				43,422				(38,662	)			356,141				317,479
Less: Net (income) loss attributable to noncontrolling interest			(895	)			—				(895	)			376				—				376
Net income (loss) attributable to Nabors		$	29,530			$	12,997			$	42,527			$	(38,286	)		$	356,141			$	317,855
Earnings (losses) per share:
Diluted from continuing operations		$	.18			$	.05			$	.23			$	(.03	)		$	1.26			$	1.23
Diluted from discontinued operations			(.08	)			—				(.08	)			(.11	)			—				(.11	)
Earnings (losses) per share — diluted		$	.10			$	.05			$	.15			$	(.14	)		$	1.26			$	1.12
Weighted-average number of common shares outstanding — diluted			287,407								287,407				283,150								283,150
Adjusted income (loss) derived from operating activities (2)		$	117,191			$	—			$	117,191			$	395,857			$	145,409			$	541,266

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

		Three Months Ended												Nine Months Ended
		September 30,								June 30,				September 30,
(In thousands)		2010				2009				2010				2010				2009
Equity method oil and gas joint venture impairments		$	—			$	—			$	—			$	—			$	(83,295	)
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 financing receivable			(54,347	)			—				—				(54,347	)			(112,516	)
Other-than-temporary impairments on securities			—				—				—				—				(35,649	)
Acquisition related expenses			(7,000	)			—								(7,000	)
Other non-operational items			(3,656	)			—								(3,656	)
Total charges before income taxes			(133,755	)			—				—				(133,755	)			(372,492	)
Tax benefit (expense)			17,475				(12,997	)(1)			—				17,475				16,351
Total charges after income taxes		$	(116,280	)		$	(12,997	)		$	—			$	(116,280	)		$	(356,141	)