Turan Drilling & Engineering, a joint venture (JV) between SOCAR AQS and Helmerich & Payne, has secured the renewal of a long-term contract from bp for offshore operations and maintenance (O&M) in the Caspian Sea off the coast of Azerbaijan. The renewed agreement spans a firm period of five years, with the possibility of three additional one-year extensions. It is scheduled to begin in March 2026. The contract value could exceed $1bn (£742.39m) if all extension options are utilised. Helmerich & Payne o ...

Group 1 - Fluidsdoc is an international oil industry veteran with 40 years of experience across six continents and over twenty countries, specializing in the upstream oil sector [1] - The Daily Drilling Report, led by Fluidsdoc, provides investment analysis for the oil and gas industry, featuring a model portfolio that covers all segments of upstream oilfield activity with weekly updates [1] - The group offers investment ideas for both U.S. and international energy companies, covering a range from shale to deepwater drillers, and includes technical analysis to identify catalysts [1]

TULSA, Okla.--(BUSINESS WIRE)--Helmerich & Payne, Inc. (NYSE: HP) (H&P or the Company) today announced the publication of its fiscal 2025 Sustainability Report, which provides an overview of the Company's sustainability program, performance, and progress for the fiscal year ended September 30, 2025. "As I reflect on H&P's sustainability journey, I am proud of the progress we have made in advancing sustainability across our business, which is included in our fiscal 2025 Sustainabilit. ...

Market Overview - The US stock market showed mixed results with the Dow Jones up by 0.46%, while the Nasdaq fell by 0.31% and the S&P 500 increased by 0.09% [1] - Major tech stocks had varied performances, with Nvidia rising by 0.7% and Amazon and Apple both declining by over 1% [3] Semiconductor Sector - Micron Technology reported that its new NAND flash wafer factory is on track to begin shipments in the second half of 2028, with HBM4 customer shipments expected to increase in the first quarter of 2028, one quarter ahead of schedule [4] - The CFO of Micron indicated that market demand significantly exceeds supply, predicting that supply constraints will persist until after 2026 [4] Retail Sector - Notable gains were observed in major US retailers, with Walmart rising over 2% to reach a historical high, and Macy's, Kohl's, and Ross Stores also seeing increases [4] - McDonald's reported a 9.5% year-over-year revenue growth in Q4, reaching $7 billion, with adjusted earnings per share of $3.12, exceeding expectations [4] Software Sector - Cisco experienced a significant drop of over 9%, marking its largest decline in 2023, due to disappointing gross margin guidance despite raising its annual forecast based on AI demand [4] - Other software stocks showed mixed results, with Fastly surging over 60% post-earnings, while Applovin plummeted over 14% [4][5] Chinese Stocks - Chinese stocks listed in the US faced collective declines, with the Nasdaq Golden Dragon China Index falling by 1.4%, and major companies like Tencent Music and Pinduoduo dropping by nearly 6% and 2.5% respectively [4][6] Commodity Market - Precious metals saw a decline, with spot gold down by 0.37% at $5065 per ounce and silver down by 1.43% at $83 per ounce [6][7] - International oil prices also fell, with Brent crude futures down about 1% to $68.75 per barrel and WTI crude futures down about 1% to $63.99 per barrel [7] Cryptocurrency Market - The majority of cryptocurrencies experienced gains, with Bitcoin rising by 0.96%, remaining below $68,000, while over 118,000 individuals faced liquidation in the past 24 hours [9][10]

Group 1: Helmerich & Payne (H&P) Overview - H&P views the Middle East as a primary growth driver, particularly for international shale development and increased rig demand [1] - The company is investing heavily in the Middle East to offset stagnation in the U.S. market, with plans to operate 24 rigs in Saudi Arabia by mid-2026 [1] - H&P reported mixed financial results for Q1 2026, with revenue of $1.02 billion exceeding expectations but a GAAP EPS of -$0.98 due to a $103 million non-cash impairment charge [2] Group 2: Industry Trends and Competitors - Major oilfield-service providers are increasingly focusing on the Middle East to hedge against volatility in the U.S. market, as the region can sustain production at lower oil prices [3] - The U.S. shale revolution has significantly increased production, but growth is now declining, with active oil-directed rigs dropping over 30% from late 2022 to October 2025 [4] - Companies like Patterson-UTI Energy and SLB are also targeting the Middle East for growth, leveraging their U.S. expertise and securing major contracts in the region [6][8] Group 3: Regional Opportunities - The Middle East is identified as a primary growth engine for several companies, including Weatherford and Halliburton, with strong opportunities in Saudi Arabia, UAE, Kuwait, and Oman [10][12] - Halliburton emphasizes the importance of mature field development and enhanced oil recovery (EOR) in the region, viewing it as a stable market for services [12] - SLB has secured a $1.5 billion contract with Kuwait Oil Company and is investing in local manufacturing and talent development in Oman [9]

Core Insights - Helmerich & Payne reported $1.0 billion in revenue for the fiscal first quarter of 2026, marking the third consecutive quarter at this revenue level, despite a net loss of $0.98 per diluted share due to a $103 million non-cash impairment charge and other unusual items [1][6] Financial Performance - Adjusted EBITDA was $230 million, exceeding expectations, supported by strong results in North America Solutions and Offshore Solutions, as well as better-than-anticipated performance in International Solutions [2][6] - The company generated strong free cash flow of $126 million, with capital expenditures of $68 million for the quarter, and reduced its fiscal year capex guidance to $270–310 million [4][7][19] Operational Highlights - North America Solutions averaged 143 rigs working, with a direct margin of $239 million, driven by a higher rig count and gross margin above $18,000 per day [8] - International Solutions outperformed expectations with 59 rigs working and direct margins of approximately $29 million, attributed to lower-than-expected Saudi reactivation costs [9] - Offshore Solutions generated about $31 million in direct margin with 3 active rigs, maintaining stable operations [10] Market Outlook - The company anticipates a sequential margin step-down in the second quarter due to seasonal impacts and the timing of rig reactivation costs, with North America Solutions margins expected to range from $205 million to $230 million [5][16] - International Solutions is projected to average 57 to 63 rigs in the second quarter, with direct margins of $12 million to $22 million, reflecting the shifting of Saudi reactivation costs [17] - Offshore Solutions is expected to average 30 to 35 operating rigs, with second-quarter direct margin guidance of $20 million to $30 million [18] Strategic Initiatives - The company is focusing on FlexRobotics technology to automate rig floor tasks, which has shown promising results in initial deployments [15] - Geothermal interest remains high, with contract awards in Europe and additional rigs added in North America [14] Leadership Transition - CEO John Lindsay will be succeeded by Trey Adams next month, with Lindsay expressing confidence in the leadership team to execute the company's strategy [4][20]

Core Insights - Helmerich & Payne, Inc. (HP) reported a first-quarter fiscal 2026 adjusted net loss of 15 cents per share, significantly missing the Zacks Consensus Estimate of adjusted net income of 12 cents, and a sharp decline from the previous year's profit of 71 cents due to weakness in the North America Solutions segment and a non-cash impairment charge of $103 million [1][9] Financial Performance - Operating revenues reached $1 billion, surpassing the Zacks Consensus Estimate of $986 million, with Drilling Services sales increasing by 50.2% year-over-year [2][9] - The company distributed approximately $25 million to shareholders as part of its ongoing dividend program [2] Segment Performance - **North America Solutions**: Operating revenues were $563.9 million, down 5.7% year-over-year, with an operating profit of $36.2 million, significantly lower than the prior year's $152.2 million due to a one-time impairment of $98 million [4] - **International Solutions**: Operating revenues surged 393.4% to $234.3 million, but the operating loss widened to $55.3 million compared to a loss of $14.5 million in the prior year [5] - **Offshore Solutions**: Revenues increased 554.6% to $188.3 million, with an operating profit of $16.4 million, although it missed the estimate of $20.3 million [6] Debt and Financial Position - As of the end of January, HP repaid $260 million of its existing $400 million term loan, expecting to repay the entire loan by the end of the third quarter of fiscal 2026 [3] - The company had $247.2 million in cash and cash equivalents, with long-term debt totaling $2 billion and a debt-to-capitalization ratio of 42.8% [7] Guidance - For the second quarter of fiscal 2026, North America Solutions is projected to deliver direct margins between $205 million and $230 million, while International Solutions is expected to generate direct margins of $12 million to $22 million [8][10]

Group 1 - The article does not provide any relevant content regarding the company or industry [1]

Financial Performance - The company recorded a net loss of $96.7 million ($(0.98) diluted share) for the three months ended December 31, 2025, compared to a net income of $54.8 million ($0.54 diluted share) for the same period in 2024 [144]. - Consolidated operating revenues increased to $1.0 billion for the three months ended December 31, 2025, up from $0.7 billion in the same period of 2024, primarily due to the completion of the Acquisition, contributing an additional $342.5 million [145]. - Operating revenues for the three months ended December 31, 2025, were $563.9 million, a decrease of 5.7% from $598.1 million in the same period of 2024 [155]. - The company recorded a total income tax expense of $11.2 million for the three months ended December 31, 2025, compared to $21.6 million in the same period of 2024 [153]. - The company reported a direct margin of $238.8 million for North America Solutions for the three months ended December 31, 2025, compared to $265.8 million for the same period in 2024, reflecting a decrease of approximately 10.1% [214]. - The International Solutions segment reported a direct margin of $28.7 million for the three months ended December 31, 2025, compared to a loss of $6.9 million for the same period in 2024 [214]. - The Offshore Solutions segment achieved a direct margin of $31.0 million for the three months ended December 31, 2025, up from $6.5 million in the same period in 2024 [214]. Expenses and Impairments - Direct operating expenses rose to $682.8 million for the three months ended December 31, 2025, compared to $410.9 million in 2024, with an additional $270.4 million attributed to the Acquisition [146]. - The company recognized a non-cash impairment charge of $103.1 million during the three months ended December 31, 2025, related to assets reclassified as held-for-sale [150]. - The company recorded a non-cash asset impairment charge of $97.9 million during the three months ended December 31, 2025, related to assets reclassified as held-for-sale [160]. - Direct operating expenses in the International Solutions segment rose to $205.6 million in Q4 2025, up 277.7% from $54.4 million in Q4 2024, primarily due to the acquisition [165]. - Direct operating expenses in the Offshore Solutions segment increased to $157.3 million in Q4 2025, up 594.1% from $22.7 million in Q4 2024, driven by the acquisition [171]. - Research and development expenses decreased to $6.4 million in Q4 2025, down 32.1% from $9.4 million in Q4 2024 [155]. Backlog and Contracts - As of December 31, 2025, the total contract drilling backlog was $7.0 billion, with approximately 16.6% expected to be fulfilled through fiscal year 2026 [139]. - The North America Solutions segment's backlog decreased from $0.5 billion on September 30, 2025, to $0.2 billion on December 31, 2025 [140]. - The International Solutions segment's backlog increased from $3.4 billion on September 30, 2025, to $3.8 billion on December 31, 2025 [140]. Cash Flow and Capital Management - Cash and cash equivalents totaled $247.2 million, with short-term investments of $21.8 million as of December 31, 2025 [180]. - Operating cash flows for the three months ended December 31, 2025, were $182.4 million, up from $158.4 million in the same period of 2024 [181]. - Capital expenditures decreased to $67.6 million for the three months ended December 31, 2025, compared to $106.5 million in 2024 [182]. - The company paid cash dividends of $0.25 per share, totaling $25.2 million for the three months ended December 31, 2025 [185]. - The company repaid $30.0 million of the outstanding balance on the Term Loan Credit Agreement during the three months ended December 31, 2025 [186]. Debt and Financing - The outstanding balance on the Term Loan Credit Agreement was $170.0 million as of December 31, 2025, with a weighted average variable interest rate of 5.494 percent [194]. - The company completed a private offering of $1.25 billion in senior notes in September 2024, with various tranches maturing between 2027 and 2034 [188]. - The Amended Credit Facility allows for unsecured revolving loans up to $950.0 million, with commitments maturing between 2027 and 2028 [201]. - As of December 31, 2025, the company had $950.0 million available to borrow under the Amended Credit Facility, with no outstanding borrowings or letters of credit [203]. - The company's total indebtedness under unsecured senior notes was $1.8 billion, with maturities of $350.0 million due in December 2027, $350.0 million due in December 2029, $550.0 million due in September 2031, and $550.0 million due in December 2034 [206]. - The company was in compliance with all debt covenants as of December 31, 2025 [205]. Tax and Liabilities - The company had a deferred tax liability of $631.1 million as of December 31, 2025, primarily related to temporary differences in property, plant, and equipment [207]. - The company recorded unrecognized tax benefits and related interest and penalties of approximately $18.8 million as of December 31, 2025 [207]. Integration and Future Plans - The company is in the process of integrating the KCA Deutag business into its internal control environment, expected to be completed by the second quarter of fiscal 2026 [216]. - The company expects to fund its operating cash requirements, scheduled debt repayments, interest payments, and capital expenditures for fiscal year 2026 through current cash and cash generated from operations [206].

Group 1 - The article does not provide any relevant content regarding the company or industry [1]