Adjusted EBITDA in the third quarter reached $125 million.
Free cash flow in the quarter exceeded $130 million, including the Canada sales proceeds.
Without those proceeds and the funding for our geothermal investments, we generated free cash flow of $55 million.
In line with the cash generation, net debt decreased to $2.3 billion in the third quarter, driven by the combination of our strong operating performance, disciplined capital spending, improved working capital and our strategic capital allocation evidenced by the Canadian sale.
Our margin performance in the Lower 48 remains strong.
As we expected, for the third quarter, we held daily margins above the $7,000 mark.
We bring the same elements to support our Lower 48 business to our International segment.
Currently, we have 40 rigs working in Saudi Arabia.
We expect each of these rigs to contribute annual EBITDA of approximately $10 million.
SANAD's long-term plans call for a total of 15 new builds over 10 years.
Each successive generation of five rigs today at $50 million annually.
With that expected growth, our International EBITDA could increase by 20% versus the third quarter just reported.
Quarterly EBITDA in our Drilling Solutions segment increased sequentially by 22%.
Penetration on Nabors' Lower 48 rigs and on third-party rigs increased.
Revenue on third-party rigs improved sequentially by more than 20%.
In the third quarter, 74% of our rigs in the Lower 48 ran five or more NDS services.
This compares to 62% in the second quarter.
Earlier this month, Rig 801 reached total depth of 20,000 feet on its initial well.
With less physical labor required, Rig 801 has the potential to greatly expand the pool of talent available to work on our rigs.
We remain on track for an additional 5% reduction in greenhouse gas emissions in the U.S. in 2021.
The quarter began with WTI above $70.
Since then, it has reached the $80 mark where it remains recently.
Comparing the averages of the third quarter to the second quarter, the Baker Lower 48 land rig count increased by 11%.
According to Inverness, from the beginning of the third quarter through the end, the Lower 48 rig count increased by 47 or approximately 9%.
Once again, we surveyed the largest Lower 48 clients at the end of the third quarter.
Our survey indicates an increase in activity approaching 10% for this group by the end of the year.
Recently, this has become more difficult, particularly in Lower 48.
Natural gas prices have increased to levels not seen in more than 10 years.
The net loss from continuing operations was $122 million or $15.79 per share.
The third quarter included a $13 million after-tax nonrecurring expense or $1.63 per share related to the purchase of technology in the energy transition space.
This compares to a loss of $196 million or $26.59 per share in the second quarter.
The second quarter results included charges of $81 million after taxes, mainly for an impairment of assets on the sale of our Canada drilling rigs and a tax reserve for contingencies in our International segment.
Revenue from operations for the third quarter was $524 million, a 7% improvement compared to the second quarter.
Excluding Canada, revenue increased by 9% with all of our segments providing strong contributions both in the U.S. and internationally.
rig technologies and Drilling Solutions were particularly strong, growing by 22% and 17%, respectively.
In the Lower 48, we are seeing increased rig demand from larger public customers in addition to continued expansion for private operators.
Total adjusted EBITDA of $125 million increased by $8 million or 7%.
Drilling EBITDA of $62.1 million was up by $2.3 million or 4% sequentially.
Our Lower 48 rig count increased by 4.1 from 63.5 in the second quarter to 67.6 in the third quarter.
Daily rig margins came in at $7,025, in line with the prior quarter.
Currently, our rig count stands at 72.
International EBITDA gained almost $5 million in the third quarter or 7% sequentially at $7 million in early termination revenue more than compensated for a move-related decrease in Mexico.
Daily gross margins for International increased by almost $1,000 to $14,375.
Early termination revenue added $1,100 per day to our margins but the Mexico moves offset some of the improvement.
Without the early termination revenue and with the anticipated improvement in Mexico, the fourth-quarter daily margin should come in between $13,000 and $13,500 per day.
International average rig count came in at 67 rigs, a one rig reduction as compared to the second quarter.
Current rig count in the International segment stands at 69.
Drilling Solutions EBITDA of $15.6 million was up $2.8 million or 22% in the third quarter.
Activity in the Lower 48 generally improved, taking our combined drilling rig and Drilling Solutions daily gross margin to $8,900.
This translates into a $1,900 per day contribution from our rapidly growing solutions segment.
Rig technologies generated adjusted EBITDA of $3 million in the third quarter, a $1 million improvement.
In the third quarter, total free cash flow reached $133 million.
This compares to free cash flow of $68 million in the second quarter.
The third quarter included a net benefit of $78 million from strategic transactions, namely the sale of our Canadian business for $94 million, partly offset by several investments in geothermal and other energy transition initiatives.
Outside of these transactions, our free cash generation of $55 million reflected the strong operational results, disciplined capital spending and continued progress on working capital reductions.
Free cash flow for the fourth quarter should reach $80 million to $90 million.
This translates into a total 2021 free cash flow of around $350 million.
Capital expenses in the third quarter of $62 million, including $19 million for SANAD newbuilds were down from $77 million in the second quarter.
The $15 million reduction reflected $13 million lower spend for the SANAD newbuilds.
In the fourth quarter, we now forecast roughly $80 million in capital expenditures, including $30 million for the SANAD newbuilds.
Our forecast capital spending for 2021 is approximately $270 million, including $90 million for Saudi newbuilds.
Our net debt on September 30 was $2.3 billion, a reduction of $120 million in the quarter.
At the start of the pandemic, our net debt stood at $2.9 billion.

Summary:
Our margin performance in the Lower 48 remains strong.
We bring the same elements to support our Lower 48 business to our International segment.
Penetration on Nabors' Lower 48 rigs and on third-party rigs increased.
In the third quarter, 74% of our rigs in the Lower 48 ran five or more NDS services.
Comparing the averages of the third quarter to the second quarter, the Baker Lower 48 land rig count increased by 11%.
According to Inverness, from the beginning of the third quarter through the end, the Lower 48 rig count increased by 47 or approximately 9%.
Once again, we surveyed the largest Lower 48 clients at the end of the third quarter.
Recently, this has become more difficult, particularly in Lower 48.
The net loss from continuing operations was $122 million or $15.79 per share.
The third quarter included a $13 million after-tax nonrecurring expense or $1.63 per share related to the purchase of technology in the energy transition space.
Revenue from operations for the third quarter was $524 million, a 7% improvement compared to the second quarter.
In the Lower 48, we are seeing increased rig demand from larger public customers in addition to continued expansion for private operators.
Drilling EBITDA of $62.1 million was up by $2.3 million or 4% sequentially.
Our Lower 48 rig count increased by 4.1 from 63.5 in the second quarter to 67.6 in the third quarter.
Without the early termination revenue and with the anticipated improvement in Mexico, the fourth-quarter daily margin should come in between $13,000 and $13,500 per day.
Activity in the Lower 48 generally improved, taking our combined drilling rig and Drilling Solutions daily gross margin to $8,900.
Our forecast capital spending for 2021 is approximately $270 million, including $90 million for Saudi newbuilds.