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Core Insights - Helmerich & Payne, Inc. (HP) reported a fourth-quarter fiscal 2025 adjusted net loss of 1 cent per share, significantly missing the Zacks Consensus Estimate of adjusted net income of 26 cents, and a considerable decrease from the prior year's profit of 76 cents due to weakness in the International Solutions segment and $56 million in non-recurring charges [1] Financial Performance - Operating revenues reached $1 billion, surpassing the Zacks Consensus Estimate of $976 million, with Drilling Services sales exceeding the consensus by 3.2% and increasing by 45.8% year-over-year [2] - The company distributed approximately $25 million to shareholders as part of its ongoing dividend program [2] Debt Management - As of the end of October, HP repaid $210 million of its existing $400 million term loan, exceeding prior expectations of $200 million by the end of calendar year 2025, and now anticipates full repayment by the end of the third quarter of fiscal 2026 [3] Segment Performance - North America Solutions: Operating revenues of $572.3 million, down 7.4% year-over-year, with an operating profit of $118.2 million compared to $155.6 million in the prior year, but beating the estimate of $99.3 million [4] - International Solutions: Operating revenues of $241.2 million, up 430.6% from $45.5 million in the prior year, but an operating loss of $75.7 million compared unfavorably to a loss of $3.9 million in the prior year [5] - Offshore Solutions: Revenues of $180.3 million, up 554.7% from $27.5 million in the prior year, with an operating profit of $20.3 million compared to $4.3 million in the prior year, beating the estimate of $19.8 million [6] Financial Position - In the reported quarter, HP spent $426.4 million on capital programs, with $196.8 million in cash and cash equivalents and long-term debt totaling $2.1 billion, resulting in a debt-to-capitalization ratio of 42.1% [7] Guidance for FY26 - The company anticipates gross capital expenditures of $280-$320 million for fiscal 2026, with $40-$60 million for North America Solutions and $230-$250 million for maintenance and reactivation across its global drilling fleet [8][9] - Operating guidance includes an average contracted rig count of 132-148 in North America Solutions and 58-68 for International Solutions, with Offshore direct margins projected at $100-$115 million [9]

Financial Data and Key Metrics Changes - The company generated quarterly revenues of over $1 billion, marking the third consecutive quarter above the billion-dollar mark [18] - Total direct operating costs for the fourth quarter were $715 million, down from $735 million in the previous quarter [18] - The net loss for the fourth quarter was $0.58 per diluted share, an improvement from a net loss of $1.64 in the previous quarter [18] - For the full year, the earnings per share were a net loss of $1.66 [19] - Operating cash flow for the fourth quarter was $207 million, totaling $543 million for the full year [20] Business Line Data and Key Metrics Changes - North America Solutions averaged 141 contracted rigs during the fourth quarter, with a direct margin of $242 million, above the midpoint of guidance [21][22] - The International Solutions segment ended the fourth quarter with 61 rigs working, generating approximately $30 million in direct margins [23] - The Offshore Solutions segment generated a direct margin of approximately $35 million during the quarter, exceeding guidance [25] Market Data and Key Metrics Changes - The company anticipates oil prices to remain rangebound between the upper $50s and mid-$60s in the first half of 2026 [9] - The utilization rates of rigs that have been idled for less than 12 months remain strong at over 80% [12] - The average first quarter operating rig count for the International Solutions segment is expected to be approximately 57 to 63 rigs [24] Company Strategy and Development Direction - The company is focused on optimizing its financial position to continue paying down its term loan and generating free cash flow [26] - There is a commitment to nurturing leadership and promoting talent within the organization to prepare for future growth [10] - The company plans to maintain its long-standing base dividend of approximately $100 million in 2026 [30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the market stabilizing and the expanded footprint offering new opportunities [9] - The company is encouraged by the resilience of its business and the positive long-term prospects in the oil and gas industry [5] - Management expects further margin improvement throughout fiscal year 2026, despite some initial costs related to rig reactivations [38] Other Important Information - The company has made significant progress on deleveraging, having paid off $210 million on its term loan [17] - Capital expenditures for the fourth quarter were $64 million, with full-year 2025 totaling $426 million [19] - The company operates in six countries and has a blue-chip customer base supported by strong contractual coverage [9] Q&A Session Summary Question: International rig count and margins - Management is focused on the phased approach to reactivations in Saudi Arabia and expects to finish by mid-2026, with further growth anticipated in the region [36][38] Question: North America revenue and operating expenses - The North America Solutions market is expected to remain consistent as long as commodity prices and demand are intact, with a focus on longer and more complex wells [44] Question: CapEx guidance and reactivation costs - The $230 million-$250 million CapEx includes all rig reactivation costs, with more capital costs than operating costs impacting margins [62] Question: Maintenance CapEx for U.S. vs. international rigs - Maintenance CapEx is approximately $1 million per domestic rig and $1.3 million-$1.5 million per international rig [70] Question: International activity levels and unconventional drilling - The company is actively engaged in discussions about unconventional drilling in regions like Algeria and Libya, with a positive outlook for future growth [80]

Financial Data and Key Metrics Changes - The company reported quarterly revenues of just over $1 billion, marking the third consecutive quarter above the billion-dollar mark [17] - Total direct operating costs for the fourth quarter were $715 million, down from $735 million in the previous quarter [17] - The net loss for the fourth quarter was $0.58 per diluted share, an improvement from a net loss of $1.64 in the previous quarter [17] - For the full year, the earnings per share were a net loss of $1.66 [18] - Operating cash flow for the fourth quarter was $207 million, totaling $543 million for the full year [19] Business Line Data and Key Metrics Changes - North America Solutions averaged 141 contracted rigs during the fourth quarter, down from the third quarter, but consistent with industry activity [19] - The segment direct margin for North America Solutions was $242 million, above the midpoint of guidance [19] - The International Solutions segment ended the fourth quarter with 61 rigs working, generating approximately $30 million in direct margins [22] - The Offshore Solutions segment generated a direct margin of approximately $35 million during the quarter, above guidance [24] Market Data and Key Metrics Changes - The company anticipates oil prices to remain rangebound between the upper $50s and mid-$60s in the first half of 2026 [7] - The utilization rates of rigs that have been idled for less than 12 months remain strong at over 80% [11] - The company expects the average first quarter operating rig count for the International Solutions segment to be approximately 57-63 rigs [23] Company Strategy and Development Direction - The company aims to optimize its financial position to continue paying down the term loan and generate free cash flow [25] - Capital expenditures for fiscal 2026 are expected to be approximately $280 million-$320 million, with maintenance capital expenditures approaching historically low figures [26] - The company is focused on enhancing its technology offerings, particularly in drilling automation and wellbore quality [27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the market stabilizing and the expanded footprint offering new opportunities [7] - The company is encouraged by the resilience of its business and the positive long-term prospects for the oil and gas industry [4] - Management expects to see further margin improvement throughout fiscal year 2026, despite some initial costs related to rig reactivations [38] Other Important Information - The company has made significant progress on deleveraging, having paid off $210 million on its term loan [16] - The company operates in six countries and has a blue-chip customer base supported by strong contractual coverage [7] - The company plans to maintain its long-standing base dividend of approximately $100 million in 2026 [28] Q&A Session Summary Question: Potential for more Saudi rigs to come back and international margins normalization - Management indicated that the focus is on the seven reactivations in Saudi Arabia and expects to see further growth and enhancements in the region [36][37] Question: Daily revenue and operating expenses outlook - Management noted that the North America Solutions market is expected to remain consistent as long as commodity prices and demand are intact, with a focus on maintaining low operating expenses [44] Question: Clarification on reactivation expenses - Management confirmed that the reactivation costs are included in the overall capital expenditures, but specific amounts per rig are difficult to quantify [60][62] Question: Maintenance CapEx for U.S. versus international rigs - Management stated that maintenance CapEx for domestic rigs is around $1 million per rig, while for international rigs it ranges from $1.3 million to $1.5 million [65] Question: Progress on unconventional drilling in regions outside the Middle East - Management highlighted ongoing conversations and interest in unconventional drilling in regions like Australia and North Africa, with a focus on transferring U.S. shale expertise [74][81]

Financial Performance - H&P achieved a direct margin of $242 million in North America Solutions, slightly exceeding the midpoint of guidance[12] - The company's consolidated adjusted EBITDA was $225 million[12] - H&P generated free cash flow of approximately $154 million[12] - Debt repayment of $210 million on $400 million term loan through October, with repayment of the entire term loan expected by end of Q3FY26[12] Operational Highlights - H&P's market share in the Permian Basin has expanded from 29% to approximately 35% over the past five years[13] - Approximately 50% of active rigs are operating under performance-based contracts[12] - Seven rigs are scheduled to resume operations in Saudi Arabia in 2026, increasing the total active rig count in-country to 24[12] - Direct margin of over $64 million in International and Offshore Solutions segments[12] Guidance and Capital Expenditure - Gross capital expenditures for full fiscal year 2026 are guided at $280-$320 million[23] - H&P anticipates over $50 million in cost savings in FY26 SG&A guidance compared to proforma annualized FY25[33]

Core Insights - The logistics sector has seen significant engagement from investors, particularly in the ASEAN and US markets, highlighting its growth potential and diversification opportunities [1] - The popularity of insurance companies in the Philippines since 2014 has influenced investment strategies, leading to a broader portfolio that includes various industries and market capitalizations [1] - The entry into the US market in 2020 has allowed for comparative analysis between US and ASEAN markets, particularly in sectors like banking, hotels, and logistics [1] Investment Strategies - Initial investments were focused on blue-chip companies, but the strategy has evolved to include a mix of retirement holdings and trading profits across different sectors [1] - The encouragement to diversify investments beyond traditional savings in banks and properties has led to a more dynamic investment approach [1] - The use of platforms like Seeking Alpha has facilitated knowledge sharing and enhanced market awareness, particularly for newer investors in the US market [1]

Core Points - U.S. stock futures are lower, with Dow futures down approximately 200 points [1] - Helmerich and Payne Inc reported a fourth-quarter loss of 1 cent per share, with quarterly sales of $1.012 billion, exceeding analyst expectations of $973.678 million [1] - Helmerich and Payne shares fell 7% to $25.69 in pre-market trading [1] Company Movements - Alpha Technology Group Ltd shares decreased by 19% to $17.50 after a significant surge of 132% on Monday [4] - Invivyd Inc shares fell 13.4% to $2.46 following the announcement of a $125 million public offering [4] - Nice Ltd shares dropped 7.3% to $112.00 after a 9% decline on the previous day [4] - H World Group Ltd shares fell 6.7% to $41.95 despite reporting better-than-expected third-quarter results [4] - Fulcrum Therapeutics Inc shares decreased by 6.6% to $9.01 after a 12% gain on Monday [4] - Rocket Pharmaceuticals Inc shares declined 6% to $2.86 [4] - OBOOK Holdings Inc shares fell 5.6% to $7.53 [4] - Iperionx Ltd shares decreased by 5% to $33.00 [4] - Home Depot Inc shares slipped 2% to $351.01 after reporting worse-than-expected third-quarter adjusted EPS and lowering FY25 adjusted EPS outlook [4]

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential trading opportunities before the market opens [1] Premarket Gainers - Olema Pharmaceuticals, Inc. (OLMA) has seen a substantial increase of 213%, trading at $26.68 - Diginex Limited (DGNX) is up 12%, currently priced at $15.25 - Gorilla Technology Group Inc. (GRRR) has risen by 11%, trading at $14.05 - Amer Sports, Inc. (AS) is up 9%, priced at $33.47 - Click Holdings Limited (CLIK) has increased by 9%, trading at $7.38 - Beamr Imaging Ltd. (BMR) is up 9%, currently at $2.14 - James Hardie Industries plc (JHX) has risen by 8%, trading at $18.22 - Arvinas, Inc. (ARVN) is up 8%, priced at $12.00 - Axalta Coating Systems Ltd. (AXTA) has increased by 7%, trading at $30.28 - Genprex, Inc. (GNPX) is up 6%, currently at $4.31 [3] Premarket Losers - LifeMD, Inc. (LFMD) has decreased by 22%, trading at $3.65 - Alpha Technology Group Limited (ATGL) is down 21%, currently priced at $17.00 - Intellinetics, Inc. (INLX) has fallen by 19%, trading at $7.25 - Energizer Holdings, Inc. (ENR) is down 16%, priced at $20.00 - Invivyd, Inc. (IVVD) has decreased by 14%, currently at $2.42 - BellRing Brands, Inc. (BRBR) is down 12%, trading at $22.30 - Sadot Group Inc. (SDOT) has fallen by 9%, currently priced at $3.99 - CEVA, Inc. (CEVA) is down 8%, trading at $21.60 - Helmerich & Payne, Inc. (HP) has decreased by 7%, currently at $25.44 - Opendoor Technologies Inc. (OPEN) is down 5%, trading at $7.39 [4]

Market Overview - U.S. stock futures declined on Tuesday following a sell-off on Monday, with major benchmark indices showing lower futures [1] - Market sentiment remains cautious ahead of post-shutdown economic data and Nvidia Corp.'s earnings report [1] - The 10-year Treasury bond yielded 4.10%, while the two-year bond was at 3.57% [2] - The CME Group's FedWatch tool indicates a 46.4% likelihood of the Federal Reserve cutting interest rates in December [2] Index Performance - Dow Jones futures decreased by 0.23%, S&P 500 by 0.15%, Nasdaq 100 by 0.15%, and Russell 2000 by 0.29% [2] - The SPDR S&P 500 ETF Trust (SPY) was down 0.19% at $664.42, and Invesco QQQ Trust ETF (QQQ) declined 0.24% to $602.23 in premarket trading [2] Stocks in Focus - Axalta Coating Systems (AXTA) surged 10.68% after announcing an all-stock merger with Akzo Nobel N.V. [6] - Molina Healthcare (MOH) rose 3.05% following a proposed offering of $750 million in Senior Notes and support from investor Michael Burry [6] - Avantor Inc. (AVTR) increased by 2.76% as CEO Ligner Emmanuel purchased shares worth $993,125 [6] - Home Depot (HD) fell 0.71% with expected earnings of $3.85 per share on revenue of $41.14 billion [6] - Helmerich and Payne Inc. (HP) dropped 8.22% despite reporting quarterly sales of $1.012 billion, exceeding analyst estimates [14] Sector Performance - Materials, financials, and energy sectors experienced the largest losses on Monday, while communication services and utilities closed higher [8] Economic Insights - LPL Financial anticipates a transforming market landscape in 2026, driven by a resilient economy and AI efficiency gains [10] - The firm emphasizes that achieving double-digit earnings growth will be crucial for stock performance [11] - Historical trends suggest stocks perform well when the Fed cuts rates near all-time highs, although current valuations pose risks [12]

Earnings Reports - Home Depot Inc. is expected to report quarterly earnings of $3.85 per share on revenue of $41.14 billion [2] - Helmerich and Payne Inc. reported a loss of 1 cent per share for the fourth quarter, with quarterly sales of $1.012 billion, exceeding the analyst consensus estimate of $973.678 million [2] - Medtronic PLC is anticipated to post quarterly earnings of $1.31 per share on revenue of $8.87 billion [2] - Aecom is expected to report quarterly earnings of $1.34 per share on revenue of $4.31 billion [2] Stock Movements - Home Depot shares fell 0.4% to $356.70 in after-hours trading [2] - Helmerich and Payne shares dipped 8.2% to $25.34 in after-hours trading [2] - Medtronic shares rose 0.1% to $96.29 in after-hours trading [2] - Aecom shares gained 0.8% to $132.99 in after-hours trading [2] Mergers and Acquisitions - Akzo Nobel N.V. and Axalta Coating Systems Ltd. agreed to an all-stock merger of equals, resulting in Axalta Coating shares jumping 13.2% to $31.90 in after-hours trading [2]