Helmerich & Payne, Inc. (NYSE:HP) Q3 2020 Earnings Conference Call July 29, 2020 12:00 PM ET Company Participants David Wilson - Director of IR John Lindsay - President and CEO Mark Smith - SVP and CFO Conference Call Participants Ian McPherson - Simmons Sean Meakim - JPMorgan Tommy Moll - Stephens Jeffrey Campbell - Tuohy Brothers Taylor Zurcher - Tudor Pickering and Holt Waqar Syed - ATB Capital Operator Good day, and welcome to the Helmerich & Payne Fiscal Third Quarter 2020 Earnings Conference Call. At ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For quarterly period ended: June 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-4221 HELMERICH & PAYNE, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporatio ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For quarterly period ended: March 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-4221 HELMERICH & PAYNE, INC. Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by ...

Helmerich & Payne, Inc. (NYSE:HP) Q2 2020 Earnings Conference Call May 1, 2020 11:00 AM ET Company Participants David Wilson - Director of IR John Lindsay - President and CEO Mark Smith - SVP and CFO Conference Call Participants Sean Meakim - JP Morgan Tommy Moll - Stephens Kurt Hallead - RBC Taylor Zurcher - Tudor Pickering & Holt Ian Macpherson - Simmons Jacob Lundberg - Credit Suisse Operator Good day everyone and welcome to the Fiscal Second Quarter 2020 Earnings Conference Call. At this time, all parti ...

HELMERICH & PAYNE, INC. Credit Suisse 25th Annual Energy Summit March 2020 Data as of 2/3/2020 unless otherwise noted. Forward-Looking Statements Forward Looking Statements This presentation contains forward-looking statements within the meaning of the securities laws. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words or variation of words such as "expect," "look forward to," "anticipate" "intend," "plan," "beli ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For quarterly period ended: December 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-4221 HELMERICH & PAYNE, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorpor ...

Helmerich & Payne, Inc. (NYSE:HP) Q1 2020 Results Conference Call February 4, 2020 11:00 AM ET Company Participants David Wilson - Director of Investor Relations John Lindsay - President and Chief Executive Officer Mark Smith - Vice President and Chief Financial Officer Conference Call Participants Jacob Lundberg - Credit Suisse Tommy Moll - Stephens, Inc. Sean Meakim - JP Morgan Marc Bianchi - Cowen and Company David Anderson - Barclays Scott Gruber - Citigroup Global Markets Inc. Chase Mulvelhill - Bank o ...

Part I [Business](index=4&type=section&id=Item%201.%20Business) Helmerich & Payne is a contract drilling services company with four segments, primarily driven by U.S. Land operations and a $1.2 billion contract backlog - The company operates through four segments, with the **U.S. Land segment** being the largest, contributing **85% of consolidated operating revenues** in fiscal 2019[14](index=14&type=chunk)[33](index=33&type=chunk) Drilling Rig Fleet Status as of September 30, 2019 | Segment | Total Available Rigs | Rigs Contracted | | :--- | :--- | :--- | | **U.S. Land** | 299 | 194 | | **Offshore** | 8 | 6 | | **International Land** | 31 | 18 | - **H&P Technologies** is a new segment focused on developing and commercializing advanced digital drilling technologies applicable to both H&P and non-H&P rigs[41](index=41&type=chunk) Contract Backlog Comparison (in billions) | Segment | Sep 30, 2019 | Sep 30, 2018 | | :--- | :--- | :--- | | U.S. Land | $1.0 | $0.9 | | Offshore | — | — | | International Land | $0.2 | $0.2 | | **Total** | **$1.2** | **$1.1** | - As of September 30, 2019, the company employed **7,767 in the U.S.** and **743 internationally**, with no unionized U.S. employees[66](index=66&type=chunk) [Risk Factors](index=14&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from oil and gas price volatility, intense competition, technological obsolescence, operational hazards, and international political instability - Business operations are highly dependent on the volatile oil and natural gas industry activity and prices[92](index=92&type=chunk) - The highly competitive contract drilling market, with a surplus of rigs, leads to **pricing pressure** and impacts rig utilization and profit margins[98](index=98&type=chunk)[100](index=100&type=chunk) - New technologies may render existing equipment obsolete, requiring increased capital expenditures; **120 available rigs** were not under contract as of September 30, 2019[102](index=102&type=chunk)[101](index=101&type=chunk) - Operations are exposed to significant hazards like environmental damage and weather events, with potentially insufficient insurance or indemnities to cover all losses[105](index=105&type=chunk)[106](index=106&type=chunk)[111](index=111&type=chunk) - International operations face political and economic risks, particularly in Argentina, resulting in **$8.2 million in foreign currency losses** in fiscal 2019[153](index=153&type=chunk)[154](index=154&type=chunk)[156](index=156&type=chunk) - The **$1.2 billion contract backlog** may not be fully realized due to potential customer termination of fixed-term contracts, sometimes without early termination payments[135](index=135&type=chunk) [Unresolved Staff Comments](index=27&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company has no unresolved written comments from the SEC staff as of the end of fiscal year 2019 - No unresolved written comments from the SEC staff were issued 180 days or more before the end of fiscal year 2019[166](index=166&type=chunk) [Properties](index=27&type=section&id=Item%202.%20Properties) The company's properties include drilling rigs, a fabrication facility near Houston, a maintenance facility near Tulsa, and investment real estate in Tulsa - The company primarily owns its drilling rigs and ancillary equipment[167](index=167&type=chunk) - Key real properties include a fabrication facility near Houston, Texas, and a maintenance facility near Tulsa, Oklahoma[167](index=167&type=chunk) - The company owns commercial real estate for investment in Tulsa, Oklahoma, including a shopping center and industrial warehouses[168](index=168&type=chunk) [Legal Proceedings](index=27&type=section&id=Item%203.%20Legal%20Proceedings) The company is engaged in a lawsuit against Venezuela for the 2010 expropriation of its drilling business, with uncertain recovery timing and amount - A lawsuit was filed in 2011 against Venezuela for the expropriation of its drilling business, with the timing, amount, and likelihood of recovery currently undeterminable[169](index=169&type=chunk) [Mine Safety Disclosures](index=28&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - Not applicable[170](index=170&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=29&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Helmerich & Payne's common stock trades on the NYSE, with recent share repurchases and historical underperformance against key indices - The company's common stock is traded on the New York Stock Exchange under the symbol **'HP'**[172](index=172&type=chunk) - In Q4 fiscal 2019, the company repurchased **1,000,000 shares** at an average price of **$42.78 per share**[174](index=174&type=chunk) Stock Performance Indexed Returns (Base Period Sep 2014 = 100) | Company / Index | Sep 2018 | Sep 2019 | | :--- | :--- | :--- | | Helmerich & Payne, Inc. | 82.00 | 55.00 | | S&P 500 Index | 157.00 | 164.00 | | S&P 1500 Oil & Gas Drilling Index | 57.00 | 30.00 | [Selected Financial Data](index=30&type=section&id=Item%206.%20Selected%20Financial%20Data) A five-year financial summary shows fiscal 2019 operating revenues of **$2.8 billion** and a net loss of **$33.7 million** Five-Year Summary of Selected Financial Data (in thousands, except per share data) | Metric | 2019 | 2018 | 2017 | 2016 | 2015 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Operating revenues** | $2,798,490 | $2,487,268 | $1,804,741 | $1,624,332 | $3,161,702 | | **Net income (loss)** | $(33,656) | $482,672 | $(128,212) | $(56,828) | $420,427 | | **Diluted earnings (loss) per share** | $(0.34) | $4.37 | $(1.20) | $(0.54) | $3.85 | | **Total assets** | $5,839,515 | $6,214,867 | $6,439,988 | $6,832,019 | $7,147,242 | | **Debt to capital ratio** | 10.8% | 10.1% | 10.6% | 9.7% | 9.1% | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses fiscal 2019 financial performance, market outlook, and liquidity, highlighting a net loss due to asset impairment and a new H&P Technologies segment [Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from foreign currency, commodity prices, and equity prices, while interest rate risk is minimal due to fixed-rate debt - The company faces foreign currency risk in Argentina, where a hypothetical **10% decrease in peso value** would have an insignificant impact on monetary assets[280](index=280&type=chunk) - Demand for drilling services is highly dependent on volatile crude oil and natural gas prices, impacting E&P capital spending[282](index=282&type=chunk) - Interest rate risk is minimal due to **$487.1 million in fixed-rate senior notes** at **4.65%** and no outstanding variable-rate credit facility borrowings[285](index=285&type=chunk) - Equity price risk exists from a **$16.3 million marketable securities portfolio**, where a **10% price decrease** would reduce its value by **$1.6 million**[286](index=286&type=chunk) [Financial Statements and Supplementary Data](index=46&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for fiscal year 2019, including balance sheets, income statements, and detailed notes on key events [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=91&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants regarding accounting principles or financial disclosure - None reported[524](index=524&type=chunk) [Controls and Procedures](index=91&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of September 30, 2019, with no changes in internal control - The CEO and CFO concluded that disclosure controls and procedures were effective at a reasonable assurance level as of period-end[525](index=525&type=chunk) - No changes occurred in the company's internal control over financial reporting during the fourth quarter of fiscal 2019[525](index=525&type=chunk) [Other Information](index=91&type=section&id=Item%209B.%20Other%20Information) The company reports no other information for this item - None reported[526](index=526&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=91&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2020 Proxy Statement - Information for this item is incorporated by reference from the company's 2020 Proxy Statement[527](index=527&type=chunk) [Executive Compensation](index=91&type=section&id=Item%2011.%20Executive%20Compensation) Information on executive and director compensation is incorporated by reference from the 2020 Proxy Statement - Information for this item is incorporated by reference from the company's 2020 Proxy Statement[529](index=529&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=91&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information on security ownership and equity compensation plans is incorporated by reference from the 2020 Proxy Statement - Information for this item is incorporated by reference from the company's 2020 Proxy Statement[530](index=530&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=92&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on certain relationships, related transactions, and director independence is incorporated by reference from the 2020 Proxy Statement - Information for this item is incorporated by reference from the company's 2020 Proxy Statement[531](index=531&type=chunk) [Principal Accountant Fees and Services](index=92&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information on principal accountant fees and services is incorporated by reference from the 2020 Proxy Statement - Information for this item is incorporated by reference from the company's 2020 Proxy Statement[532](index=532&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=93&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists financial statements, schedules, and exhibits filed with the Form 10-K, including governance documents and debt agreements - Consolidated financial statements are listed and included in Item 8 of the report[534](index=534&type=chunk)[535](index=535&type=chunk) - A detailed list of all exhibits filed with the Form 10-K is provided, including governance documents, debt agreements, and compensation plans[536](index=536&type=chunk)[537](index=537&type=chunk)[539](index=539&type=chunk) [Form 10-K Summary](index=96&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company did not provide a Form 10-K summary - None provided[543](index=543&type=chunk)

Financial Data and Key Metrics Changes - The company generated quarterly revenues of $649 million, down from $688 million in the previous quarter, totaling $2.8 billion for fiscal 2019 compared to $2.5 billion in fiscal 2018 [21] - Direct operating costs decreased to $432 million for the fourth quarter from $445 million in the previous quarter [22] - Helmerich & Payne earned $0.37 per diluted share, including a tax benefit of approximately $0.12 per share, compared to a loss of $1.42 in the previous quarter [23] Business Line Data and Key Metrics Changes - The U.S. Land segment exited the fourth fiscal quarter with 194 contracted rigs, a sequential decrease of approximately 9% [26] - Average rig revenue per day in the U.S. Land segment decreased to $25,365, slightly under the guidance midpoint, primarily due to less FlexServices revenue [26] - The adjusted average rig margin per day in the International segment decreased by $2,423 to $5,481, primarily due to higher-than-expected start-up costs in Argentina [35] Market Data and Key Metrics Changes - The U.S. land market share increased to 22% from quarter-to-quarter as less capable legacy rigs were sidelined [26] - The average rig expense per day increased to $15,440, largely due to a one-time legal settlement charge of $9.5 million [26] - The average rig margin per day in the Offshore segment is expected to increase to a range of $12,000 to $13,000 during the first quarter of fiscal 2020 [39] Company Strategy and Development Direction - The company is focusing on capital discipline and expects more stability in rig demand heading into calendar 2020 [10] - H&P Technologies aims to drive the development of an autonomous drilling platform to improve safety and drilling efficiency [14] - The company is committed to maintaining a strong balance sheet and returning capital to shareholders through dividends [51] Management's Comments on Operating Environment and Future Outlook - Management noted that the energy sector has faced significant challenges, with energy indices declining by more than 40% over the past year [7] - The company expects customer budget spending to be more evenly distributed throughout 2020, with a focus on stabilizing rig counts [28] - Management remains optimistic about the potential in the Vaca Muerta basin in Argentina despite uncertainties following elections [18] Other Important Information - Capital expenditures for fiscal 2020 are expected to range between $275 million to $300 million, a reduction of approximately 40% from fiscal 2019 [44] - The company has a revenue backlog of roughly $1 billion for rigs under term contracts [44] - The company’s liquidity was approximately $1.15 billion, including cash on hand and short-term investments [49] Q&A Session Summary Question: What is the expected level of activity throughout 2020? - Management indicated that customers are setting budgets similar to last year, around $50 to $55 per barrel, and expects rig counts to flatten out [55] Question: Can International cash margins return to previous levels? - Management expects margins to improve as new contracts are signed, but it depends on the rollovers and redeployment of rigs [57][58] Question: What is the mix of spot versus term work? - The company has increased term coverage from 60% to over 65% and plans to maintain this balance [60] Question: What is the revenue base required for HPT to achieve profitability? - Management noted that widespread customer adoption is challenging to predict, but success in technology adoption is crucial for profitability [61][64] Question: What is the average day rate for term contracts for fiscal year 2020? - The average day rate is expected to be in the low to mid-20s range, consistent with current rates [110]

PART I. [Financial Information](index=3&type=section&id=PART%20I.%20Financial%20Information) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Helmerich & Payne, Inc.'s unaudited condensed consolidated financial statements as of June 30, 2019, including Balance Sheets, Statements of Operations, and Cash Flows [Unaudited Condensed Consolidated Balance Sheets](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased from **$6.21 billion** to **$5.90 billion**, primarily due to reduced Property, Plant, and Equipment, with total shareholders' equity also declining Condensed Consolidated Balance Sheet Highlights (in thousands) | Balance Sheet Item | June 30, 2019 | September 30, 2018 | | :--- | :--- | :--- | | **Total Current Assets** | $1,116,238 | $1,115,550 | | **Property, plant and equipment, net** | $4,583,673 | $4,857,382 | | **Total Assets** | **$5,897,379** | **$6,214,867** | | **Total Current Liabilities** | $390,526 | $377,168 | | **Long-term debt, net** | $491,651 | $493,968 | | **Total Liabilities** | $1,802,325 | $1,832,132 | | **Total Shareholders' Equity** | $4,095,054 | $4,382,735 | [Unaudited Condensed Consolidated Statements of Operations](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) The company reported a **$154.7 million** net loss for Q3 2019, largely due to a **$224.3 million** asset impairment charge, resulting in a **$74.8 million** net loss for the nine-month period Key Operating Results (in thousands, except per share amounts) | Metric | Three Months Ended June 30, 2019 | Three Months Ended June 30, 2018 | Nine Months Ended June 30, 2019 | Nine Months Ended June 30, 2018 | | :--- | :--- | :--- | :--- | :--- | | **Operating Revenues** | $687,974 | $648,872 | $2,149,440 | $1,790,443 | | **Operating Income (Loss)** | ($167,874) | $6,306 | ($18,439) | $8,751 | | **Asset Impairment Charge** | $224,327 | $0 | $224,327 | $0 | | **Net Income (Loss)** | ($154,683) | ($8,008) | ($74,833) | $480,219 | | **Diluted EPS** | ($1.42) | ($0.08) | ($0.71) | $4.35 | [Unaudited Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations significantly increased to **$659.4 million** for the nine months ended June 30, 2019, while investing activities used **$374.0 million** and financing activities used **$242.5 million** Cash Flow Summary for Nine Months Ended June 30 (in thousands) | Cash Flow Activity | 2019 | 2018 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $659,371 | $371,428 | | **Net cash used in investing activities** | ($373,961) | ($342,184) | | **Net cash used in financing activities** | ($242,489) | ($241,811) | | **Net increase (decrease) in cash** | $42,921 | ($212,567) | [Notes to Unaudited Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, segment reporting, and significant events including new accounting standard adoptions, an asset impairment charge, and a debt exchange offer - Effective October 1, 2018, the company reorganized into four reportable business segments: U.S. Land, Offshore, International Land, and the new H&P Technologies segment[26](index=26&type=chunk) - The company adopted new accounting standards, including **ASC 606** and **ASU 2016-01**, affecting revenue recognition and equity investment accounting[39](index=39&type=chunk) - A decision to downsize the FlexRig4 fleet led to a pre-tax impairment charge of **$224.3 million** in Q3 2019 for excess capital spares and support equipment[55](index=55&type=chunk) - The company completed a debt exchange offer in December 2018, swapping **$487.1 million** of subsidiary notes for new parent company notes to simplify its debt structure[63](index=63&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=42&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance, market outlook, strategic developments, segment analysis, and liquidity, highlighting its strong super-spec rig position amidst moderate demand [Executive Summary and Market Outlook](index=42&type=section&id=Executive%20Summary%20and%20Market%20Outlook) The company maintains leadership in performance drilling with its FlexRig fleet, navigating crude oil price volatility and moderate demand by reducing its capital expenditure plan - The company's long-term strategy focuses on innovation, technology, safety, and operational excellence, leveraging its advanced uniform rig fleet and financial strength[159](index=159&type=chunk) - Demand for super-spec rigs increased through 2018, with H&P holding over **40%** of the U.S. land drilling super-spec market share as of June 30, 2019[164](index=164&type=chunk)[166](index=166&type=chunk) - The fiscal 2019 capital expenditure plan was reduced from **$650-$680 million** to **$500-$530 million** due to market moderation and customer spending adjustments[165](index=165&type=chunk) - Growth opportunities are identified in the International Land segment, particularly in Argentina, with the deployment of super-spec FlexRigs from the U.S[167](index=167&type=chunk) [Recent Developments](index=44&type=section&id=Recent%20Developments) Recent developments include a debt exchange offer, the establishment of H&P Technologies, the acquisition of Angus Jamieson Consulting, and a **$224.3 million** impairment charge from downsizing the FlexRig4 fleet - A debt exchange offer was completed, swapping **$487.1 million** of HPIDC notes for new parent company notes, simplifying the corporate debt structure[169](index=169&type=chunk) - H&P Technologies was established as a new reportable business segment, focusing on advanced drilling technologies and automation solutions[171](index=171&type=chunk) - Angus Jamieson Consulting (AJC), a leader in wellbore positioning, was acquired to accelerate H&P Technologies' automation platform development[172](index=172&type=chunk) - Downsizing the FlexRig4 fleet resulted in a **$224.3 million** impairment charge for excess capital spares and support equipment[175](index=175&type=chunk) [Contract Backlog](index=45&type=section&id=Contract%20Backlog) Contract drilling backlog increased to **$1.6 billion** as of June 30, 2019, up from **$1.2 billion**, primarily driven by U.S. Land segment contracts, with **72%** expected in fiscal year 2020 and beyond Contract Backlog by Segment (in billions) | Segment | June 30, 2019 | September 30, 2018 | | :--- | :--- | :--- | | U.S. Land | $1.4 | $1.0 | | Offshore | $0.0 | $0.0 | | International Land | $0.2 | $0.2 | | **Total** | **$1.6** | **$1.2** | [Results of Operations](index=45&type=section&id=Results%20of%20Operations) This section analyzes the company's operating results for the three and nine months ended June 30, 2019, detailing consolidated and segment performance across revenues, expenses, and key operating statistics Consolidated Results - Three Months Ended June 30 | Metric (in millions) | 2019 | 2018 | | :--- | :--- | :--- | | Operating Revenues | $688.0 | $648.9 | | Asset Impairment Charge | $224.3 | $0.0 | | Net Loss | ($154.7) | ($8.0) | Consolidated Results - Nine Months Ended June 30 | Metric (in millions) | 2019 | 2018 | | :--- | :--- | :--- | | Operating Revenues | $2,100 | $1,800 | | Asset Impairment Charge | $224.3 | $0.0 | | Net Income (Loss) | ($74.8) | $480.2 | [Liquidity and Capital Resources](index=53&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$334.8 million** cash, **$45.7 million** short-term investments, and **$659.4 million** operating cash flow, revising its capital expenditure budget to **$500-$530 million** while continuing dividends - Primary liquidity sources include **$334.8 million** cash on hand, **$45.7 million** short-term investments, operating cash flow, and a **$750 million** credit facility[229](index=229&type=chunk)[232](index=232&type=chunk) - Fiscal 2019 capital expenditures are estimated at **$500 million to $530 million**, reduced from an initial **$650 million to $680 million**[235](index=235&type=chunk) - A new **$750 million** unsecured revolving credit facility was entered in November 2018, maturing in 2023, with no borrowings as of June 30, 2019[240](index=240&type=chunk) - Dividends paid totaled **$235.1 million** (**$2.13 per share**) for the nine months ended June 30, 2019, continuing a 46-year history of increasing annual dividends[239](index=239&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=56&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section addresses the company's exposure to market risks, including equity price, interest rate, and foreign currency exchange rate risks, with further details referenced in other report sections - The company faces market risks including equity price risk from investments, interest rate risk on debt, and foreign currency exchange rate risk from international operations[254](index=254&type=chunk) [Controls and Procedures](index=56&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of June 30, 2019, with no material changes to internal controls over financial reporting during the quarter - Management concluded the company's disclosure controls and procedures were effective as of June 30, 2019[254](index=254&type=chunk) - No material changes to internal controls over financial reporting occurred during the third fiscal quarter[255](index=255&type=chunk) PART II. [Other Information](index=56&type=section&id=PART%20II.%20Other%20Information) [Legal Proceedings](index=56&type=section&id=Item%201.%20Legal%20Proceedings) The company provides an update on its lawsuit against Venezuela regarding the 2011 nationalization of its business, with proceedings currently stayed due to political upheaval - A lawsuit against Venezuela for asset expropriation is currently stayed due to political instability[256](index=256&type=chunk)[257](index=257&type=chunk) - The company cannot determine the timing, amount, or likelihood of recovery from the lawsuit and has not recognized any contingent gains[257](index=257&type=chunk) [Risk Factors](index=56&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's 2018 Annual Report on Form 10-K - No material changes in risk factors have occurred since the company's 2018 Annual Report on Form 10-K[258](index=258&type=chunk) [Exhibits](index=57&type=section&id=Item%206.%20Exhibits) This section lists documents filed as exhibits with the Form 10-Q, including CEO and CFO certifications and XBRL-formatted financial statements - Exhibits filed include CEO and CFO certifications (**31.1, 31.2, 32**) and XBRL data files (**101**)[260](index=260&type=chunk) [Signatures](index=58&type=section&id=Signatures)