SCHEDULE: Oaktree Capital Discloses 0.83% Stake in Nabors Industries

Oaktree Capital Management and its affiliates reported a passive beneficial ownership of 0.83% in Nabors Industries Ltd., primarily through convertible bonds.

Summary

• Oaktree Capital Holdings, LLC, Oaktree Capital Group Holdings GP, LLC, and Oaktree Capital Management, L.P. (collectively "Oaktree") have filed an Amendment No. 1 to Schedule 13G regarding their beneficial ownership in Nabors Industries Ltd.
• Oaktree beneficially owns 121,673 common shares of Nabors Industries Ltd.
• This ownership represents 0.83% of the total common shares outstanding.
• The shares are issuable upon the redemption of convertible bonds.
• The calculation is based on 14,561,171 common shares outstanding as of October 27, 2025, as reported in Nabors' Form 10-Q, plus the 121,673 shares from convertible bonds.
• The filing indicates a passive investment, as Oaktree certified that the securities were not acquired for the purpose of changing or influencing control of the issuer.

Sentiment

Score: 5

Explanation: The filing is a routine disclosure of a passive beneficial ownership stake. It does not contain information that would significantly alter the fundamental outlook for the company, nor does it suggest any immediate positive or negative catalysts. The sentiment is neutral as it's a standard regulatory update.

Positives

• Oaktree Capital, a reputable investment firm, maintains a position in Nabors Industries Ltd., indicating continued confidence in the company's long-term prospects.
• The investment is structured through convertible bonds, offering potential upside participation while providing a degree of capital preservation.

Negatives

• The beneficial ownership represents a relatively small stake of 0.83%, suggesting it is not a significant catalyst for immediate strategic changes or activist engagement.

Risks

• The filing itself does not detail specific risks related to Nabors Industries Ltd. or Oaktree's investment beyond the inherent risks of holding convertible bonds (e.g., conversion price, interest rate risk, credit risk of the issuer).

Future Outlook

The filing is a disclosure of beneficial ownership and does not contain forward-looking statements or guidance from either Nabors Industries Ltd. or Oaktree Capital regarding future performance or strategic plans.

Management Comments

• The reported securities are held and managed by OCM on behalf of various funds and accounts.
• The filing of this Statement shall not be deemed an admission of beneficial ownership by any of the Reporting Persons for purposes of Section 13(d) or 13(g), or for any other purpose.
• The securities referred to above were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under §§ 240.14a-11.

Industry Context

Oaktree Capital Management is known for its distressed debt and value investing strategies. Their holding in Nabors Industries Ltd., an oil and gas drilling contractor, through convertible bonds suggests a potential long-term value play or a position taken during a period of market volatility or restructuring within the energy sector. This type of passive investment by a major institutional investor can signal a degree of confidence in the issuer's recovery or stability within its industry.

Stakeholder Impact

• Shareholders: Provides transparency regarding a significant institutional investor's passive stake, which might be viewed as a vote of confidence. However, the small percentage (0.83%) limits its direct influence.
• Creditors: Oaktree's holding of convertible bonds implies a creditor-like position with equity upside, which could be seen as a positive signal regarding the company's financial health by other creditors.

Next Steps

• Oaktree Capital Management will continue to monitor its investment in Nabors Industries Ltd.
• Nabors Industries Ltd. will continue its operations as an oil and gas drilling contractor.

Key Dates

Recommendation

This Schedule 13G filing is a routine disclosure of a passive, non-controlling ownership stake by Oaktree Capital. The 0.83% stake, primarily through convertible bonds, does not indicate any immediate strategic changes, activist intent, or significant new information that would warrant a change in investment thesis. While Oaktree is a respected investor, this particular filing provides insufficient new data to justify a "buy" or "sell" recommendation. Therefore, a "hold" recommendation is appropriate, maintaining existing positions while awaiting more substantive operational or financial news from Nabors Industries Ltd.

Keywords

Nabors Industries Ltd., Oaktree Capital, Schedule 13G, Beneficial Ownership, Convertible Bonds, Common Shares, SEC Filing, Investment, Passive Stake