Helmerich & Payne, Inc. (HP) reported a fiscal third-quarter 2024 adjusted net income of 92 cents per share, which beat the Zacks Consensus Estimate of 77 cents. The outperformance signifies an improvement in the company's Offshore Gulf of Mexico Segment performance. However, the bottom line was below the year-ago quarter's reported figure of $1.09. This was primarily due to the poor performance of the company's International Solutions and North America Solutions segments. Operating revenues of $697.7 milli ...

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Helmerich & Payne (HP) came out with quarterly earnings of $0.92 per share, beating the Zacks Consensus Estimate of $0.77 per share. This compares to earnings of $1.09 per share a year ago. These figures are adjusted for ...

About Helmerich & Payne, Inc. This release includes "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, and such statements are based on current expectations and assumptions that are subject to risks and uncertainties. All statements other than statements of historical facts included in this release, including, without limitation, statements regarding the registrant's business strategy, future financial position, operations outlook, future c ...

Helmerich & Payne, Inc. (HP) is set to release fiscal third-quarter earnings on Jul 24, after the closing bell. The current Zacks Consensus Estimate for earnings is pegged at 77 cents per share on revenues of $668.8 million. Highlights of Q2 Earnings Trend in Estimate Revision On a positive note, Helmerich & Payne's operating costs and expenses are projected to have reached $559.5 million in the fiscal third quarter, down 2.7% from the year-ago period's level. Specifically, the company's drilling services a ...

Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or ...

A month has gone by since the last earnings report for Helmerich & Payne (HP) . Shares have lost about 8.3% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Helmerich & Payne due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Helmerich & Payne Q2 Earnings Beat Esti ...

Helmerich & Payne (HP) reported second-quarter fiscal 2024 adjusted net income of 86 cents per share, which marginally beat the Zacks Consensus Estimate of 85 cents. Operating profit from the International Solutions unit totaled $3.6 million, which beat the consensus estimate of a loss of $1.6 million. However, the bottom line was below the year-ago quarter’s reported figure of $1.26. This was primarily due to the poor performance of the company's segments.Operating revenues of $687.9 million outpaced the Z ...

Financial Data and Key Metrics Changes - The company generated quarterly revenues of $688 million, up from $677 million in the previous quarter, primarily due to an increase in average active rig activity in North America [23] - Profit per diluted share was $0.84, compared to $0.94 in the previous quarter, with select items having a neutral impact on diluted earnings per share [24] - Total direct operating costs were $403 million for the second quarter, slightly down from $404 million in the previous quarter [23] Business Line Data and Key Metrics Changes - In the North America Solutions segment, the average contracted rig count increased to 155 from 149 in the first fiscal quarter, but the exit rig count was 152, below the projected range due to lower natural gas prices [25][26] - The International Solutions segment ended the second fiscal quarter with 11 rigs on contract, with results above guidance due to a less detrimental inflationary environment in Argentina [29] - The offshore segment generated a direct margin of about $3 million during the quarter, which was below guidance due to a rig being delayed in resuming full rate operations [31] Market Data and Key Metrics Changes - The company maintained a U.S. land market share of 27.5%, up from 25.5% at the end of fiscal 2023, despite a slight decrease in rig count [27] - Approximately 57% of the U.S. active fleet is on a term contract, with average pricing and revenue per day expected to remain relatively flat [56] Company Strategy and Development Direction - The company is focusing on performance-based contracts combined with technology solutions to enhance customer value and maintain strong margins [21][100] - The operational strategy includes preparing for unconventional projects in Saudi Arabia, with expectations for a long-term presence and growth opportunities in the region [8][9] - Capital allocation strategy includes a base and supplemental dividend as well as opportunistic share repurchases [48] Management's Comments on Operating Environment and Future Outlook - Management expressed a positive outlook despite choppy market conditions, noting strong margins and a resilient customer outlook regarding medium- and long-term energy fundamentals [16][7] - The company anticipates a slight decrease in North America Solutions direct margin for the third fiscal quarter due to a lower average rig count, but expects resiliency in per day direct margins [18] - Management highlighted ongoing conversations with customers to understand their deliverables and ensure alignment with their expectations [41] Other Important Information - Capital expenditures for fiscal 2024 are expected to be at the top end of the original $450 million to $500 million range, with maintenance CapEx revised up due to supply chain clarity [32][34] - The effective tax rate for the second quarter was approximately 27.5%, within the previously guided range [12] Q&A Session Summary Question: Update on supply and demand for the super spec market - Management noted that the super spec segment continues to grow, but activity has pulled back due to natural gas prices [66] Question: Insights on Saudi rig costs and operations - Most recommissioning expenses will be incurred in fiscal 2024, with rigs expected to commence operations in early 2025 [80] Question: Impact of customer consolidation on market share - Management indicated that delivering safe, efficient, and reliable performance will be key to benefiting from customer consolidation [85] Question: Future drilling activity related to LNG facilities - Management expressed hope for increased drilling activity as LNG facilities come online, but timing remains uncertain [142] Question: Changes in super spec rig specifications - Management confirmed that super spec rigs remain relevant and capable of handling current drilling requirements [139]

Lately, the Zacks Oil and Gas - Drilling industry has faced setbacks due to the conclusion of their lucrative legacy contracts, uncertainties surrounding the slowdown in upstream capital spending growth, and inflationary pressures. Despite these macro challenges causing a slowdown in activity, we believe there are opportunities for growth-oriented operators focused on efficiency initiatives. Our watchlist for investors includes Saipem SpA (SAPMF) , Helmerich & Payne (HP) and Precision Drilling Corporation ( ...

Drilling Rig Fleet and Contract Backlog - The company's drilling rig fleet totaled 262 rigs as of March 31, 2024, with 233 in North America Solutions, 22 in International Solutions, and 7 in Offshore Gulf of Mexico[124] - The company had 166 active contracted rigs at the end of Q2 FY24, with 102 under fixed-term contracts and 64 working well-to-well[124] - The company's contract drilling backlog increased to $1.7 billion as of March 31, 2024, up from $1.4 billion in September 2023, with 66.6% expected to be fulfilled in FY25 and beyond[132] Financial Performance - The company reported net income of $84.8 million ($0.84 per diluted share) for Q2 FY24, compared to $164.0 million ($1.55 per diluted share) in Q2 FY23[135] - Consolidated operating revenues decreased to $687.9 million in Q2 FY24 from $769.2 million in Q2 FY23, primarily due to lower activity levels in North America Solutions and Offshore Gulf of Mexico segments[136] - Direct operating expenses decreased to $402.9 million in Q2 FY24 from $450.3 million in Q2 FY23, primarily due to lower activity levels[137] - Selling, general, and administrative expenses increased to $62.0 million in Q2 FY24 from $52.9 million in Q2 FY23, primarily due to a $4.8 million increase in labor-related expenses[138] - The company recognized a $3.7 million gain on investment securities in Q2 FY24, primarily from an $8.3 million gain on ADNOC Drilling equity investment[139] - Income tax expense decreased to $32.2 million in Q2 FY24 from $51.1 million in Q2 FY23, with a statutory federal income tax rate of 21.0%[140] - Consolidated operating revenues decreased to $1.4 billion in the six months ended March 31, 2024 compared to $1.5 billion in the same period in 2023, primarily driven by lower activity levels in North America Solutions and Offshore Gulf of Mexico segments[163] - Consolidated direct operating expenses decreased to $807.3 million in the six months ended March 31, 2024 compared to $879.7 million in the same period in 2023, primarily due to lower activity levels[164] - Selling, general and administrative expenses increased to $118.6 million in the six months ended March 31, 2024 compared to $101.3 million in the same period in 2023, primarily due to a $11.9 million increase in labor and labor-related expenses[165] - The company recognized an aggregate loss of $0.3 million on investment securities in the six months ended March 31, 2024, primarily due to a $2.1 million loss on the equity investment in ADNOC Drilling[167] - Income tax expense decreased to $62.3 million in the six months ended March 31, 2024 compared to $83.5 million in the same period in 2023, including a discrete tax benefit of $0.9 million related to equity compensation[168] Segment Performance - North America Solutions operating revenues decreased by 9.2% to $613.3 million in Q1 2024 compared to $675.8 million in Q1 2023, primarily due to a 14.3% decrease in activity levels[144] - North America Solutions direct operating expenses decreased by 9.9% to $341.9 million in Q1 2024 compared to $379.6 million in Q1 2023, driven by lower activity levels[145] - North America Solutions research and development expenses increased by 48.8% to $13.0 million in Q1 2024 compared to $8.7 million in Q1 2023, driven by an associated asset acquisition[147] - International Solutions operating revenues decreased by 17.9% to $45.9 million in Q1 2024 compared to $55.9 million in Q1 2023, primarily due to a 17.8% decrease in activity levels[152] - Offshore Gulf of Mexico operating revenues decreased by 25.9% to $25.9 million in Q1 2024 compared to $35.0 million in Q1 2023, primarily due to a 24.2% decrease in activity[157] - North America Solutions operating revenues decreased by 7.3% to $1.2 billion in the six months ended March 31, 2024, compared to $1.3 billion in the same period in 2023[170] - Research and development expenses increased by 37.3% to $21.7 million in the six months ended March 31, 2024, driven by an associated asset acquisition[170] - International Solutions operating revenues decreased by 9.1% to $100.6 million in the six months ended March 31, 2024, compared to $110.7 million in the same period in 2023[179] - Offshore Gulf of Mexico operating revenues decreased by 26.7% to $51.4 million in the six months ended March 31, 2024, compared to $70.1 million in the same period in 2023[184] - Other Operations operating revenues decreased by 7.1% to $36.4 million in the six months ended March 31, 2024, compared to $39.1 million in the same period in 2023[188] - North America Solutions average active rigs decreased by 15.8% to 152 in the six months ended March 31, 2024, compared to 182 in the same period in 2023[170] - International Solutions average active rigs decreased by 8.0% to 12 in the six months ended March 31, 2024, compared to 13 in the same period in 2023[179] - Offshore Gulf of Mexico average active rigs decreased by 22.8% to 3 in the six months ended March 31, 2024, compared to 4 in the same period in 2023[184] - North America Solutions direct margin (Non-GAAP) decreased by 5.2% to $527.5 million in the six months ended March 31, 2024, compared to $556.5 million in the same period in 2023[170] - International Solutions direct margin (Non-GAAP) decreased by 17.1% to $18.6 million in the six months ended March 31, 2024, compared to $22.4 million in the same period in 2023[179] - North America Solutions segment operating income for Q1 2024 was $147,130 thousand, a decrease of 19.2% compared to $182,149 thousand in Q1 2023[223] - International Solutions segment operating income for Q1 2024 was $3,569 thousand, a decrease of 9.8% compared to $3,955 thousand in Q1 2023[223] - Offshore Gulf of Mexico segment operating income for Q1 2024 was $78 thousand, a significant decrease of 98.8% compared to $6,687 thousand in Q1 2023[223] - North America Solutions direct margin (Non-GAAP) for Q1 2024 was $271,401 thousand, a decrease of 8.4% compared to $296,169 thousand in Q1 2023[223] - International Solutions direct margin (Non-GAAP) for Q1 2024 was $8,364 thousand, a decrease of 2.9% compared to $8,615 thousand in Q1 2023[223] - Offshore Gulf of Mexico direct margin (Non-GAAP) for Q1 2024 was $2,903 thousand, a decrease of 68.8% compared to $9,291 thousand in Q1 2023[223] - North America Solutions segment operating income for the six months ended March 31, 2024 was $291,620 thousand, a decrease of 10.9% compared to $327,446 thousand for the same period in 2023[223] - International Solutions segment operating income for the six months ended March 31, 2024 was $8,992 thousand, an increase of 62.6% compared to $5,529 thousand for the same period in 2023[223] - Offshore Gulf of Mexico segment operating income for the six months ended March 31, 2024 was $3,130 thousand, a decrease of 76.7% compared to $13,433 thousand for the same period in 2023[223] Cash Flow and Capital Expenditures - Cash and cash equivalents as of March 31, 2024, were $193.6 million, with restricted cash of $68.5 million and short-term investments of $83.4 million[194] - Net cash provided by operating activities for the six months ended March 31, 2024, was $318.5 million, compared to $326.3 million in the same period in 2023[194] - Operating net working capital (non-GAAP) increased to $262.1 million as of March 31, 2024, from $239.6 million as of September 30, 2023[195] - Capital expenditures for the six months ended March 31, 2024, were $254.7 million, up from $181.5 million in the same period in 2023[197] - Net sales of short-term investments for the six months ended March 31, 2024, were $12.4 million, down from $33.3 million in the same period in 2023[198] - Dividends paid during the six months ended March 31, 2024, totaled $84.4 million, compared to $102.9 million in the same period in 2023[202] - The company repurchased 1.4 million common shares at an aggregate cost of $51.6 million during the six months ended March 31, 2024[203] Debt and Tax Liabilities - The 2018 Credit Facility has $750.0 million in aggregate availability, with no borrowings or letters of credit outstanding as of March 31, 2024[208] - The long-term debt to total capitalization ratio was 16.4% at March 31, 2024, compared to 16.6% at September 30, 2023[215] - A deferred tax liability of $502.1 million was recorded as of March 31, 2024, primarily related to temporary differences in property, plant, and equipment[212] Customer Capital Spending and Market Outlook - The company expects customer capital spending in 2024 to remain flat or decrease by approximately 5% compared to 2023[125] Internal Controls and Reporting - The company's disclosure controls and procedures were effective as of March 31, 2024, ensuring timely and accurate reporting of required information[225]