For the full year, we reduced overhead spending by 24%.
Our run rate in the fourth quarter represents nearly 27% drop over the 2019 quarterly average.
We began the year at just under $2.9 billion in net debt.
We delevered by nearly $400 million, fueled, in part, by free cash flow generation of $184 million.
We ended 2020 with net debt less than $2.5 billion.
And in the Lower 48, we continue to deliver the highest daily gross margins among our peers.
In the fourth quarter, the combined gross margin from our Lower 48 drilling rigs and our U.S.
After briefly testing the upper 30s in late October, the price of near-month WTI increased by 35% through the end of the year.
Recently, WTI was trading above $61.
It was recently priced above $64.
The EIA reports consumption increased by more than 2% versus the third quarter.
In part, this contributed to a global inventory draw of over 200 million barrels.
Comparing the fourth quarter and third-quarter averages, the Baker Hughes Lower 48 land rig count increased by 23%.
From the beginning of the fourth quarter through the end, the Anvers Lower 48 rig count increased by nearly 30%.
Once again, we surveyed the largest Lower 48 clients.
This group accounts for approximately 35% of the working rig count.
Total adjusted EBITDA was $108 million in the quarter.
Our Lower 48 operation and our International and Drilling Solutions segments exceeded our expectations.
With this adjusted EBITDA performance, we generated approximately $66 million in free cash flow after funding $41 million in capital spending.
Our global rig count for the fourth quarter was essentially stable at 131 rigs.
Growth in the Lower 48 in Canada largely offset the decline in international.
In our Lower 48 business, our reported daily rig margin of $9,541 exceeded our guidance and remained in line with the third quarter.
In the aggregate, these reduced our outstanding debt obligations by $284 million.
Adjusted EBITDA in our Drilling Solutions segment increased sequentially by 44%.
The adjusted EBITDA margin in NDS widened to 32% in the fourth quarter.
This compares very favorably to 24% margins in the prior quarter.
In the fourth quarter, RigCLOUD was running on nearly all of our working rigs in the Lower 48.
Our cumulative footage growth for these apps working together increased by 11% in the fourth quarter.
Our cumulative well count was up by 12%.
We have an inventory of 40 dual fuel packages to satisfy market needs in the Lower 48.
Approximately 15% of our operating rigs in the Lower 48 are currently running on either high-line power or bi-fuel.
We are also running 12 rigs in Canada with bi-fuel capability.
The Lower 48 industry has added 151 rigs or 67% since its low in August.
Our working rig count in the region rose more than 50% during the quarter.
Our working rig count in Saudi Arabia now stands at 38.
This leaves five expected to return over the next 12 months.
The net loss from continuing operations of $112 million in the fourth quarter represented a loss of $16.46 per share.
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.
Fourth-quarter results compared to a loss of $161 million or $23.42 per share in the third quarter.
The third quarter included net after-tax gains of $6 million related to gains from debt repurchases, asset impairments, and severance costs.
Revenue from operations for the fourth quarter was $443 million, a sequential gain of 1%.
In the Lower 48, despite some deterioration in the average pricing for our fleet, drilling revenue of $103 million increased by $6.9 million or 7% as our rig count improved by 11%.
Lower 48 rig count at 53.6 was up sequentially by 5.4 rigs, which is 2.4 rigs more than we had anticipated.
Daily rig revenue in the Lower 48 at $20,950 decreased by about $800 as we continue to sign contracts at current market rates that are lower than the average for our fleet.
In aggregate, revenue in our other U.S. markets decreased by $3 million, reflecting a reduction in our offshore activity as one of our rigs finalized this contract in the prior quarter.
International drilling revenue at $245 million decreased by $3.3 million or 1%.
This decrease was primarily related to declines in activity across several markets, as rig count fell by almost nine rigs or 12%.
The softer rig count was offset by approximately $4 million in revenue from early terminations and from the restoration of full-day rates for customers with negotiated COVID rates.
Canada drilling revenue was $14.8 million, an increase of $4.1 million or 38%.
Rig count increased by 2.3 rigs on the usual seasonal ramp-up in activity.
The quarter also benefited from a $700 increase in revenue per day.
Nabors's Drilling Solutions revenue of $32 million, up $2.7 million or 9% primarily reflected strong increases in our high-margin performance drilling offerings, as well as our RigCLOUD installations.
During the quarter, we continued to increase the penetration of these services with Nabors and third-party rigs while also benefiting from the higher Lower 48 rig count.
Rig Technologies revenue decreased by $1.1 million or 4% as several clients delayed deliveries beyond the end of the year.
Total adjusted EBITDA for the quarter was $108 million, compared to $114 million in the third quarter.
The decrease was driven by a $7.4 million reduction in our International segment and a more modest reduction in rig technologies.
Drilling adjusted EBITDA of $62.2 million was up by $1.6 million or 3.1% sequentially.
The Lower 48 performance came in better than expected on the stronger rig count and higher margins.
Daily rig margin of $9,541 was about $500 above the high end of our previous guidance and in line with the third-quarter level.
For the first quarter, we expect daily rig margins of approximately $8,500, driven mainly by the repricing of renewals as rigs continue to roll off pre-pandemic contracts and by the return to more normal levels of property taxes, with an adverse impact of approximately $600 per day.
Our current rig count in the Lower 48 is 57 rigs.
International adjusted EBITDA decreased by $7.4 million to $64.5 million in the fourth quarter or 10% sequentially.
Average international rig count was 62.6, a reduction of 8.7 rigs or 12%.
Daily gross margin for the quarter was $13,500 as compared to $12,700 for the prior quarter.
The fourth quarter included approximately $800 per day in early termination revenue.
Turning to the first quarter, we expect an international rig count increase of two to three rigs as several Saudi rigs returned to work progressively during the quarter and for gross margin per day to settle between $12,500 and $13,000 per day.
Our current rig count in the International segment is 57 rigs.
Canada adjusted EBITDA of $3.5 million increased by $1.4 million.
Rig count at 9.7 rigs was 2.3 higher sequentially.
Gross margins per day of $4,633 also increased due to the higher activity level.
We expect both rig count and daily margins to improve again in the first quarter by three rigs and $500, respectively.
We currently have 14 rigs operating in Canada.
Drilling Solutions posted adjusted EBITDA of $10.3 million, up from $7.1 million in the third quarter or 44%.
Rig Technologies reported adjusted EBITDA of $0.5 million in the fourth quarter, a decrease of $800,000.
These actions were instrumental in helping Nabors deliver $184 million in free cash flow for the full year.
In 2020, we reduced overhead spend by 24%.
These reductions began in the second quarter and translated into cash savings of approximately $90 million over the last 9 months of the year.
Our run rate in the fourth quarter represents a nearly 28% reduction over the 2019 quarterly average.
The decrease in overhead, combined with capex reductions of $170 million and dividend cuts of $7 million, translate into total cash savings of approximately $267 million versus our initial plan for 2020.
In the fourth quarter, net debt declined by $290 million to $2.49 billion.
Free cash flow, defined as net cash from operating activities less net cash used for investing activities, totaled $66 million.
This compares to free cash flow of approximately $9 million in the prior quarter.
The fourth quarter included minimal interest payments as compared to semiannual interest payments of approximately $80 million in the third quarter.
While our quarterly free cash flow was affected by some $30 million, we expect this situation to prove temporary.
These payments and other one-time annual outflows in the first quarter typically amount to about $30 million.
These transactions reduced our total debt obligations by $284 million and reduced our near-term maturities.
During 2020, we reduced through repayments, buybacks or exchanges, near-term notes with maturities in or before 2023 by an aggregate amount of $1.5 billion.
These transactions reduced our debt obligations by an additional $22 million.
Capital spending in the fourth quarter was $41 million, compared to $39 million in the prior quarter.
For all of 2020, capex totaled $190 million, $10 million less than we had planned.
We are targeting capex of $50 million for the first quarter and up $200 million for the full-year 2021, excluding Saudi newbuilds for SANAD.
Consequently, a cash payment of roughly $50 million to each partner was approved.
With regard to our assets, we continue to produce leading margins in both the Lower 48 and international markets.
Utilization of the X rig, as well as our other advanced Lower 48 models, has increased steadily since last summer.

Summary:
The net loss from continuing operations of $112 million in the fourth quarter represented a loss of $16.46 per share.
Revenue from operations for the fourth quarter was $443 million, a sequential gain of 1%.