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Nabors' rig is drilling Project Obsidian, while exclusivity could open future drilling opportunities.
Nabors Industries Ltd. (NBR - Free Report) is deepening its presence in the geothermal energy market with a $35 million strategic equity investment in Quaise Energy. The investment makes Nabors the largest shareholder in Quaise, with a 14% fully diluted ownership stake, and strengthens the companies’ long-standing relationship.
The deal aligns with Nabors’ strategy of expanding its drilling, automation and well-construction capabilities into attractive adjacent energy markets. It also gives the company potential exposure to the commercialization of Quaise’s millimeter-wave drilling technology and the broader superhot geothermal opportunity.
Nabors funded the investment through the issuance of approximately 392,000 shares of common stock. The funding forms part of Quaise’s Series B financing round and reflects Nabors’ continued support for the company’s technology development and expansion plans.
For Nabors, the investment provides a pathway to participate more closely in the development of an emerging geothermal technology while leveraging its existing drilling expertise and global operating platform.
Quaise is developing a hybrid drilling platform that combines conventional rotary drilling with high-power millimeter-wave technology. The system is designed to reach deeper and hotter geothermal resources that conventional drilling methods may not be able to access.
The company’s gyrotron-powered platform uses millimeter-wave energy transmitted downhole through a waveguide to ablate rock. This approach is intended to reduce reliance on complex downhole equipment in extreme-temperature environments while integrating with established drilling practices and infrastructure.
If successfully commercialized, the technology could expand the addressable market for geothermal power. For Nabors, that could create future opportunities across rigs, drilling services, engineering and automation solutions.
Project Obsidian Provides a Direct Field Role
Nabors is already involved in Quaise’s development efforts. A Nabors PACE®-B rig is currently drilling at Project Obsidian in Oregon, giving the company a direct role in field execution.
The first phase of the project is targeting 50 megawatts of reliable power, while subsequent phases could add as much as one gigawatt of capacity. Project Obsidian is intended to become the first commercial deployment of a superhot enhanced geothermal system.
Exclusivity Could Create Future Revenue Opportunities
The investment also establishes a strategic framework between Nabors and Quaise that includes an exclusivity arrangement for drilling services supporting Quaise’s geothermal projects.
The companies expect to evaluate additional opportunities involving drilling-system integration, rig engineering, field deployment, automation and global project development. These initiatives could expand Nabors’ participation beyond its current equity ownership and create potential future revenue opportunities as Quaise works toward wider market adoption.
A Strategic Bet on Next-Generation Geothermal
Nabors’ increased investment in Quaise represents more than a financial stake. It gives the drilling company a stronger position in the development of superhot geothermal resources while allowing it to apply its existing technical and field capabilities to a new energy market.
The success of this strategy will ultimately depend on Quaise’s ability to advance its technology toward commercial deployment. However, Nabors’ equity investment, field involvement and planned exclusivity arrangement provide multiple potential avenues for participation if the technology reaches broader commercial adoption.
NBR’s Zacks Rank & Key Picks
Hamilton-based Nabors is one of the largest land-drilling contractors in the world, conducting oil, gas and geothermal land drilling operations. Currently, NBR carries a Zacks Rank #3 (Hold).
Brentwood, TN-based Delek Logistics Partners owns, operates, acquires and constructs crude oil and refined products logistics and marketing assets. The Zacks Consensus Estimate for DKL’s 2026 earnings indicates 19.4% year-over-year growth.
Par Pacific Holdings is a growth-oriented energy company supplying conventional and renewable fuels across the western U.S. The Zacks Consensus Estimate for PARR’s 2026 earnings indicates 182.1% year-over-year growth.
PBF Energy is a leading independent refiner of crude oil based in Parsippany, NJ. The Zacks Consensus Estimate for PBF’s 2026 earnings indicates 481.1% year-over-year growth.
View the Zacks #1 Rank List
Image: Bigstock
Nabors Expands Geothermal Platform With $35M Quaise Investment
Key Takeaways
Nabors Industries Ltd. (NBR - Free Report) is deepening its presence in the geothermal energy market with a $35 million strategic equity investment in Quaise Energy. The investment makes Nabors the largest shareholder in Quaise, with a 14% fully diluted ownership stake, and strengthens the companies’ long-standing relationship.
The deal aligns with Nabors’ strategy of expanding its drilling, automation and well-construction capabilities into attractive adjacent energy markets. It also gives the company potential exposure to the commercialization of Quaise’s millimeter-wave drilling technology and the broader superhot geothermal opportunity.
Investment Strengthens Nabors’ Geothermal Strategy
Nabors funded the investment through the issuance of approximately 392,000 shares of common stock. The funding forms part of Quaise’s Series B financing round and reflects Nabors’ continued support for the company’s technology development and expansion plans.
For Nabors, the investment provides a pathway to participate more closely in the development of an emerging geothermal technology while leveraging its existing drilling expertise and global operating platform.
Millimeter-Wave Technology Targets Deeper Resources
Quaise is developing a hybrid drilling platform that combines conventional rotary drilling with high-power millimeter-wave technology. The system is designed to reach deeper and hotter geothermal resources that conventional drilling methods may not be able to access.
The company’s gyrotron-powered platform uses millimeter-wave energy transmitted downhole through a waveguide to ablate rock. This approach is intended to reduce reliance on complex downhole equipment in extreme-temperature environments while integrating with established drilling practices and infrastructure.
If successfully commercialized, the technology could expand the addressable market for geothermal power. For Nabors, that could create future opportunities across rigs, drilling services, engineering and automation solutions.
Project Obsidian Provides a Direct Field Role
Nabors is already involved in Quaise’s development efforts. A Nabors PACE®-B rig is currently drilling at Project Obsidian in Oregon, giving the company a direct role in field execution.
The first phase of the project is targeting 50 megawatts of reliable power, while subsequent phases could add as much as one gigawatt of capacity. Project Obsidian is intended to become the first commercial deployment of a superhot enhanced geothermal system.
Exclusivity Could Create Future Revenue Opportunities
The investment also establishes a strategic framework between Nabors and Quaise that includes an exclusivity arrangement for drilling services supporting Quaise’s geothermal projects.
The companies expect to evaluate additional opportunities involving drilling-system integration, rig engineering, field deployment, automation and global project development. These initiatives could expand Nabors’ participation beyond its current equity ownership and create potential future revenue opportunities as Quaise works toward wider market adoption.
A Strategic Bet on Next-Generation Geothermal
Nabors’ increased investment in Quaise represents more than a financial stake. It gives the drilling company a stronger position in the development of superhot geothermal resources while allowing it to apply its existing technical and field capabilities to a new energy market.
The success of this strategy will ultimately depend on Quaise’s ability to advance its technology toward commercial deployment. However, Nabors’ equity investment, field involvement and planned exclusivity arrangement provide multiple potential avenues for participation if the technology reaches broader commercial adoption.
NBR’s Zacks Rank & Key Picks
Hamilton-based Nabors is one of the largest land-drilling contractors in the world, conducting oil, gas and geothermal land drilling operations. Currently, NBR carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector may consider some top-ranked stocks like Delek Logistics Partners, LP (DKL - Free Report) , Par Pacific Holdings, Inc. (PARR - Free Report) and PBF Energy Inc. (PBF - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Brentwood, TN-based Delek Logistics Partners owns, operates, acquires and constructs crude oil and refined products logistics and marketing assets. The Zacks Consensus Estimate for DKL’s 2026 earnings indicates 19.4% year-over-year growth.
Par Pacific Holdings is a growth-oriented energy company supplying conventional and renewable fuels across the western U.S. The Zacks Consensus Estimate for PARR’s 2026 earnings indicates 182.1% year-over-year growth.
PBF Energy is a leading independent refiner of crude oil based in Parsippany, NJ. The Zacks Consensus Estimate for PBF’s 2026 earnings indicates 481.1% year-over-year growth.