Stocks have been on a tear this week with Wells Fargo, Morgan Stanley, and Bank of America each up more than 5% since Monday. It's a lot for a bank. However, the regional bank stocks keep slipping.The S&P regional bank ETF on pace for its fourth negative week in a row. It is down almost 10% since the beginning of September. But your next guest sees upside ahead.She believes the strong results we've seen from the major financial players will have a positive spillover effect down the line. In other words, to ...

Core Viewpoint - Helmerich & Payne, Inc. will host a conference call on November 18, 2025, to discuss its fiscal fourth quarter 2025 results, led by CEO John Lindsay and CFO Kevin Vann [1][2]. Group 1: Conference Call Details - The conference call is scheduled for 11:00 a.m. ET (10:00 a.m. CT) on November 18, 2025 [2]. - Investors can join the call via domestic phone at 800-245-3047 or international phone at 203-518-9765, with the access code being "Helmerich" [2]. - The earnings release and accompanying presentation will be available on the company's website, hpinc.com [1][2]. Group 2: Archiving and Accessibility - If unable to listen live, the call will be archived for 365 days on the company's website under "News & Events – Events & Presentations" [3]. Group 3: Company Overview - Helmerich & Payne, Inc. was founded in 1920 and focuses on delivering industry-leading drilling productivity and reliability [4]. - The company operates with high integrity, safety, and innovation to achieve superior results for customers and returns for shareholders [4]. - It designs, fabricates, and operates high-performance drilling rigs globally and develops advanced technologies in automation and directional drilling [4].

Group 1 - Helmerich & Payne, Inc. (NYSE:HP) experienced a share price increase of 4.52% from September 25 to October 2, 2025, ranking among the top gaining energy stocks for the week [1] - The company provides drilling solutions and technologies for oil and gas exploration and production companies [2] - Barclays upgraded Helmerich & Payne's stock from 'Equal Weight' to 'Overweight' and raised its price target from $17 to $25, indicating a belief that the worst is over for the company and suggesting a potential recovery [3] Group 2 - The company announced leadership restructuring, promoting Raymond John Adams III to President, overseeing all revenue-generating business units [4]

TULSA, Okla.--(BUSINESS WIRE)--Helmerich & Payne, Inc. (NYSE: HP) today announced an enhanced leadership structure with three important promotions. Effective Oct. 1, 2025, Raymond John ("Trey†) Adams III has been promoted to President, leading all the company's revenue-generating business units. Senior executives reporting to Adams will be: Mike Lennox, who has been promoted to Executive Vice President (EVP) of Western Hemisphere Land operations John Bell, who has been promoted to EVP of Ea. ...

Group 1 - The article discusses the recommendation to sell Helmerich & Payne, Inc. (NYSE: HP) due to ongoing secular business headwinds and expectations of a dividend cut, which has led to the stock's significant underperformance compared to the broader market over the past six years [1] - The author emphasizes a strong background in chemical engineering and economics, highlighting expertise in fundamental and technical analysis, as well as the use of options for investment and trading [1] - The author achieved financial independence at the age of 45, indicating a successful investment strategy and a commitment to analyzing financial statements rigorously [1]

Analyst Upgrades and Downgrades - Barclays analyst Eddie Kim upgraded Helmerich & Payne, Inc. from Equal-Weight to Overweight, raising the price target from $17 to $25, with shares closing at $20.54 [3] - UBS analyst Alex Kramm upgraded FactSet Research Systems Inc. from Neutral to Buy but lowered the price target from $480 to $425, with shares closing at $289.15 [3] - BMO Capital analyst Kostas Biliouris upgraded Sarepta Therapeutics, Inc. from Market Perform to Outperform, maintaining the price target at $50, with shares closing at $17.43 [3] - Evercore ISI Group analyst Daniel Markowitz upgraded Repligen Corporation from In-Line to Outperform, raising the price target from $130 to $155, with shares closing at $122.30 [3] - Wells Fargo analyst Zachary Fadem upgraded Brinker International, Inc. from Equal-Weight to Overweight, boosting the price target from $165 to $175, with shares closing at $136.35 [3]

Core Viewpoint - The current market presents a "pain trade" opportunity in the energy sector, particularly for oil, as short positions have accumulated, potentially leading to a short squeeze if demand increases due to Federal Reserve interest rate cuts [1][2]. Group 1: Oil Market Dynamics - The consensus view is that inflation has been tamed, leading to a belief that oil prices will not rise significantly in the near term [2]. - However, there are emerging signs that oil demand could increase, particularly if the Federal Reserve cuts interest rates, which may create a supply bottleneck and drive prices higher [3]. Group 2: Company-Specific Insights - **Transocean Ltd. (NYSE: RIG)**: - Operates one of the largest and most advanced deepwater rig fleets, positioning it well to benefit from a rebound in oil demand [8]. - With a market capitalization of $3 billion, there is potential for significant upside, possibly reaching $6 billion under favorable conditions [9]. - **Patterson-UTI Energy Inc. (NASDAQ: PTEN)**: - Positioned to benefit from the removal of fracking and shale drilling restrictions in the U.S., which could lead to substantial EPS expansion [10]. - Current valuation target is $7.90 per share, indicating a potential upside of 40.4% from current prices [11]. - **Helmerich & Payne Inc. (NYSE: HP)**: - Known for advanced land drilling technology, which may reduce costs and investment requirements, making it a strong candidate for outperformance in the sector [14][15]. - Current price target is $22.20, suggesting a 4.80% dividend yield and potential upside of 35% from current prices [13][17].

Industry Overview - The Zacks Oil and Gas - Drilling industry includes companies that provide rigs and services for oil and gas exploration and development on a contractual basis [2] - Drilling for hydrocarbons is costly and technically challenging, with future prospects primarily dependent on contracting activity and rig availability rather than oil or gas prices [2] - Offshore drilling companies experience higher volatility compared to onshore counterparts, with their share prices more closely correlated to oil prices [2] Current Market Conditions - The industry is currently facing uncertainty and volatility due to cautious customer spending, geopolitical risks, and fluctuating oil prices [1][3] - Contracting activity has slowed, with operators deferring work to maintain capital discipline, impacting near-term earnings visibility [3] - Day rates have decreased from previous highs, and rig utilization is expected to bottom in the mid-80% range before recovery [5] Long-Term Outlook - A structural rise in LNG demand is anticipated to drive drilling activity, particularly from 2026 onward, providing a more stable outlook for drillers [1][4] - The global expansion of LNG is expected to support rig utilization and long-cycle contracts tied to offshore basins [1][4] Industry Performance - The Zacks Oil and Gas - Drilling industry ranks 210 out of 244 Zacks industries, placing it in the bottom 14% [6][7] - The industry's earnings estimates for 2025 have decreased by 94.6% over the past year, and estimates for 2026 have fallen by 66% [9][8] - Over the past year, the industry has declined by 20%, underperforming the broader Zacks Oil - Energy sector, which increased by 5.7%, and the S&P 500, which gained 20.2% [10] Valuation Metrics - The industry is currently trading at an EV/EBITDA ratio of 5.50X, significantly lower than the S&P 500's 17.94X but above the sector's 5X [13][12] - Historical trading ranges for the industry show a high of 24.81X and a low of 4.97X over the past five years, with a median of 14.54X [13] Notable Companies - **Transocean**: A leading offshore drilling contractor with a focus on ultra-deepwater and harsh environment drilling, reported contract drilling revenues of $988 million for Q2 2025, a nearly 15% increase year-over-year [15][16] - **Helmerich & Payne**: The largest land drilling contractor in the U.S., known for its FlexRig fleet and advanced automation, has a market capitalization of $2 billion and has lost 33% in a year [18][20] - **Precision Drilling**: A top drilling rig contractor in Canada with operations in the U.S. and the Middle East, has a market capitalization of $743.3 million and has seen its earnings estimates for 2025 rise from $3.89 to $4.70 per share in the past 60 days [22][24]

Core Insights - Helmerich & Payne, Inc. (HP) reported a fiscal third-quarter 2025 adjusted net income of 22 cents per share, exceeding the Zacks Consensus Estimate of 20 cents, but down significantly from 92 cents in the same quarter last year due to weakness in the International Solutions segment [1][10] Financial Performance - Operating revenues reached $1 billion, surpassing the Zacks Consensus Estimate by $42 million, with Drilling Services sales increasing by 49.1% year-over-year [2][10] - The company distributed approximately $25 million to shareholders as part of its ongoing dividend program [2] Debt and Capital Management - As of the end of July, the company repaid $120 million of its $400 million term loan and expects to repay an additional $200 million by the end of calendar year 2025, an increase from the previous expectation of $175 million [3] - In the reported quarter, HP spent $362.2 million on capital programs, with cash and cash equivalents totaling $166.1 million and long-term debt at $2.2 billion, resulting in a debt-to-capitalization ratio of 43.3% [8] Segment Performance - North America Solutions reported operating revenues of $592.2 million, down 4.5% year-over-year, with an operating profit of $157.6 million, which beat estimates [5] - International Solutions saw operating revenues of $265.8 million, a 455.1% increase from the previous year, but incurred an operating loss of $166.5 million, impacted by a one-time goodwill impairment loss of $128 million [6] - Offshore Solutions revenues increased by 494.4% to $161.8 million, with an operating profit of $8.8 million, although it missed estimates [7] Synergies and Future Guidance - The quarter marked the first full impact of the KCA Deutag acquisition, with HP identifying about $50 million in cost synergies towards a goal of $50-$75 million [4][10] - For fiscal Q4 2025, the company expects direct margins for North America Solutions to be between $230 million and $250 million, while International Solutions is projected to have direct margins between $22 million and $32 million [11][12]

Financial Data and Key Metrics Changes - The company generated quarterly revenues of just over $1 billion for the second consecutive quarter [18] - Total direct operating costs were $735 million, and general and administrative expenses were approximately $66 million, representing a reduction of $15 million from the previous quarter [19] - EBITDA increased to $268 million from $242 million in the last quarter [20] Business Line Data and Key Metrics Changes - North American Solutions averaged 147 contracted rigs during the quarter, with a direct margin of $266 million, consistent with the previous quarter [20][21] - International Solutions ended the quarter with 69 rigs working, generating direct margins of $34 million, up $7 million from the second quarter [22] - Offshore Solutions segment generated $23 million in direct margins, benefiting from the inclusion of KCAD's offshore business [22] Market Data and Key Metrics Changes - The Permian Basin saw a 12% year-over-year decline in total rig count, while the company's market share in the region grew by over three percentage points [11] - The company is active in nearly all major basins outside of Russia and China, with growth opportunities identified in South America and other key markets [12] Company Strategy and Development Direction - The company remains focused on executing its global strategy to stay at the forefront of the drilling solutions industry, emphasizing customer-centric solutions and technological advancements [6][16] - The integration of KCAD is progressing well, with significant cost synergies already identified [15][28] - The company aims to leverage its broader operational footprint and expanded customer base to differentiate itself on the global stage [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing challenges from volatile oil and natural gas prices but expressed confidence in the company's strategic initiatives and operational performance [5][6] - The outlook for growth in Saudi Arabia and the Middle East is positive, with expectations for increased activity in 2026 [14][33] - Management remains cautious about the impact of tariffs and commodity price fluctuations on future performance [21] Other Important Information - The company recorded an impairment of a significant part of the goodwill from the KCAD acquisition, primarily due to a drop in equity price [23] - The company expects to pay down $200 million on its term loan by the end of the calendar year, reflecting improved cash flow generation [29] Q&A Session Summary Question: Growth in international business from fiscal fourth quarter - Management indicated that there are opportunities for growth in Saudi Arabia, with tenders expected to emerge in 2026 [30][33] Question: Ongoing conversations about suspended rigs - Management noted that the worst is behind them, but the timing for resuming operations remains uncertain, likely pushing into 2026 [37] Question: Adoption of performance contracts - Management highlighted that performance contracts are being adopted by a range of customers, including small privates and large majors, with ongoing interest in international markets [42][46] Question: Rig count guidance and market share - Management explained that the guidance for rig count reflects a combination of effective churn management and potential new rig additions [60][90] Question: Competitive landscape and pricing pressures - Management acknowledged industry-wide pricing pressures but emphasized that they price based on the value delivered to customers [91][92]