Since much of our commentary today will include our forward expectations, they may constitute forward looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934.
In the first quarter, we generated $60 million.
We generated adjusted EBITDA of $108 million.
By early March, WTI exceeded $66.
The price held back has been in the tight range around $60 since.
The EIA reports global inventories of approximately 185 million barrels during the quarter.
Comparing the first quarter and fourth quarter averages, the Baker Hughes Lower 48 land rig count increased by 28%.
According to Inverness, from the beginning of the first quarter through the end, the Lower 48 rig count increased by 116 or approximately 30%.
The growth rate among smaller clients outpaced the growth of the larger operators at 39% versus 13%.
In comparison, with our focus on larger midsized companies, our own average working rig count increased by 21%.
Once again, we surveyed the largest Lower 48 clients.
This group accounts for approximately 40% of the working rig count.
Total adjusted EBITDA was 108 million in the quarter.
With this performance, we generated approximately $60 million in free cash flow.
In our Lower 48 business, reported daily big margin of 8,466 was in line with our guidance.
Daily margin at 12,917 was near the upper end of our guidance range driven by expert performance in the field.
Our installations on Nabors' Lower 48 rigs increased by nearly 25% versus the fourth quarter.
Overall, NDS penetration of five or more services, our Nabors' Lower 48 rigs increased versus the prior quarter.
It now stands at more than 70%.
A year ago, this penetration rate was 60%.
In the first quarter, clients utilized RigCLOUD on nearly all of our working rigs in Lower 48.
On a related note, we now have two rigs running advanced battery-based hybrid energy management solutions in the Lower 48.
A third Lower 48 system is expected to deploy in the near future.
The Lower 48 industry has added 197 rigs, or 87% since its low in August.
We have rigs working for three customers in Colombia, and five in Argentina, where we hold 38% of the market.
The net loss from continuing operations of $141 million in the first quarter represented a loss of $20.16 per share.
First-quarter results compared to a loss of $112 million, or $16.46 per share in the fourth quarter of 2020.
The fourth quarter included $162 million of pre-tax gains from debt exchanges and repurchases partially offset by charges of $71 million, mainly from asset impairments for a net after tax gain of $52 million or $7.40 per share.
Excluding this unusual item, the net loss improved by 23 million, primarily reflecting lower depreciation and interest expense.
Revenue from operations for the first quarter was $461 million, a sequential gain of 4%.
In the Lower 48, drilling revenue of $110 million increased by 6.2 million, or 6%, as a rig count improved by 5%.
Despite some deterioration in the average pricing for a fleet, revenue per day increased by $700, reflecting a significant reduction in the number of rigs stacked on rate.
Lower 48 average rig count at 56.2 was up sequentially by 2.6 rigs in line with our expectations.
International drilling revenue at $247 million increased by 1.7 million or 1%.
Despite the absence of 4 million in early termination revenue from the prior quarter.
Average rig count of 64.8 increased by 2.2 rigs or 3.5% matching our expectations for the quarter.
Canada drilling revenue was $21 million, an increase of $6.2 million or 42%.
Daily revenue increased by nearly $400.
Nabors drilling solutions revenue was $35.7 million, up 3.7 million or 12%, primarily driven by improved performance software and manage pressure drilling.
Rig technologies revenue of $25.7 million increased by $1.6 million or 6% due to lower capital equipment sales and fewer rentals.
Total adjusted EBITDA for the quarter was $108 million in line with the fourth quarter, and somewhat ahead of our expectations.
US rolling adjusted EBITDA of $58.8 million was down by 3.4 million or 5.4%.
Lower 48 performance was in line with our expectations.
As we expected daily rig margin came in at $8,466, a $1,000-impact compared to the fourth quarter.
For the second quarter, we expect daily rig margins are between $7,000 and $7,500 drew mainly by the signing of renewals or new contracts with current day rates, which are lower than the average for a fleet.
We forecast as six to seven rig increase for the second quarter, or an 11 to 12% sequential improvement.
Our rig count in the Lower 48 currently stands at 64 rigs or about 7.8 rigs higher than the average for the first quarter.
International adjusted EBITDA decreased by $1.9 million to $62.6 million in the first quarter, or 2.9% sequentially.
Daily gross margin for the quarter was $12,917, a $600 reduction as compared to the prior quarter.
The fourth quarter included approximately $700 per day in early termination revenue.
Turning to the second quarter, we expect an international rig count increase of three to four rigs, or 5 to 6% driven by units that return to work in Latin America and Saudi Arabia over the course of the prior quarter.
We expect gross margin per day of approximately 12,500 reflecting a long rig move in Mexico and general strikes in Argentina.
Current rig count in the international segment is 69 rigs, which translate into a 6.5% increase over the average of the first quarter.
Canada adjusted EBITDA of $9.7 million increased by $6.2 million.
Rig counts at 13.7 rigs was four higher sequentially.
Gross margin per day of 8160 also increased due to the higher activity level and the receipt of $3.5 million in governmental wage subsidies.
In the second quarter, we expect the effects of the seasonal spring breakup to impact results, with average rig count around six rigs and daily margins between $5,500 and $6,000.
We currently have six rigs operating in Canada Drilling solutions adjusted EBITDA of $11.5 million was up $1.2 million in the first quarter, or 12%.
Rig technologies reported negative adjusted EBITDA of $500,000 in the first quarter, a decrease of roughly $1 million.
Now, before I turn to liquidity and cash generation, let me remind you that the mandatory convertible preferred shares will be converting next Monday May 3, approximately 668,000 common shares will be issued and a final dividend will be paid on the conversion.
In the first quarter, free cash flow totaled $60 million.
This compares to free cash flow of approximately $66 million in the fourth quarter.
I would like to point out that in the first quarter of 2020, we delivered $8 million in free cash flow.
As in the past, the first quarter was marked by the semi-annual interest payments and a senior note of over $70 million and by approximately $25 million in several annual payments that we incur at the beginning of the year.
Our capital expenditures of $40 million in the first quarter included $7.5 million in payments related to SANAD newbuilds.
During the second quarter, we expect to incur $80 million in capex, of which 30 million will be paid by SANAD for the new bill program.
Our target remains at 200 million for the full year 2021 excluding in Kingdom newbuilds for SANAD.
Given the recent awards, and additional rig purchase orders by SANAD, we now expect SANAD's total payments for these new rigs to approach $100 million for this year assuming milestones are met.
In January, SANAD distributed a combined 100 million of the excess cash it had accumulated to its partners.
As a result, the net debt reduction for the quarter was limited to $6 million.
During the quarter, we retired approximately 40 million in senior notes, including convertibles, which resulted in a 30-meter reduction in our total debt as reported.
We also reduce the amount of standing on a revolving credit facility by an additional $40 million.
Our total debt reduction for the quarter was $70 million.
At the end of the first quarter, the amount drawn in our credit facility was $633 million and our cash balances stood at $418 million.
For the second quarter, we are targeting approximately $50 million in free cash flow.

Summary:
The net loss from continuing operations of $141 million in the first quarter represented a loss of $20.16 per share.
Revenue from operations for the first quarter was $461 million, a sequential gain of 4%.