[Financial Highlights](index=1&type=section&id=Financial%20Highlights) Helmerich & Payne reported fiscal third-quarter 2024 net income of $89 million, or $0.88 per diluted share, an increase from the prior quarter's $85 million, with operating revenues growing sequentially to $698 million, generating $197 million in cash from operations and returning $42 million to shareholders Q3 FY22024 vs Q2 FY2024 Key Financials (in millions) | Metric | Q3 FY2024 | Q2 FY2024 | | :--- | :--- | :--- | | Net Income | $89 million | $85 million | | Diluted EPS | $0.88 | $0.84 | | Operating Revenues | $698 million | $688 million | | Net Cash from Operations | $197 million | $144 million | - The Board of Directors declared a quarterly base dividend of $0.25 per share and a supplemental dividend of $0.17 per share, totaling **$42 million** returned to shareholders during the quarter[18](index=18&type=chunk)[28](index=28&type=chunk) - Net income for the quarter included a net **$(0.04) per share** impact from select items, primarily consisting of a **$0.06 gain** from equity investment adjustments and **$(0.10) in losses** from a Blue Chip Swap transaction and professional fees[14](index=14&type=chunk)[28](index=28&type=chunk) - The North America Solutions (NAS) segment exited the quarter with **146 active rigs**, achieving revenue per day of **$39,800** and direct margins per day of **$20,300**[28](index=28&type=chunk) [Management Commentary](index=2&type=section&id=Management%20Commentary) Management highlighted the resilience of the North America Solutions segment, which maintained a stable rig count despite a broader industry decline, emphasizing progress on the international strategy with the first super-spec rig arriving in Saudi Arabia for a new contract with Saudi Aramco, and anticipating a stable to modestly inclining rig count despite macro headwinds - The North America Solutions (NAS) active rig count remained **relatively stable** during the third fiscal quarter, demonstrating resilience despite a more significant decline in the overall industry rig count[16](index=16&type=chunk) - The company is advancing its international strategy, marked by the arrival of its **first super-spec FlexRig®** in **Saudi Arabia** to begin work for Saudi Aramco, with preparation for the remaining seven rigs on schedule[16](index=16&type=chunk)[17](index=17&type=chunk)[32](index=32&type=chunk) - The company returned **$42 million** to shareholders via dividends in the quarter, with preliminary FY2025 capex expected to be similar to FY2024 levels, and potential increases tied to new international contract awards[18](index=18&type=chunk) - Management anticipates continued contractual churn in the U.S. market but expects the active rig count to be **flat with a potential modest incline** towards the fiscal year-end[30](index=30&type=chunk)[31](index=31&type=chunk) [Operating Segment Results and Outlook](index=3&type=section&id=Operating%20Segment%20Results%20and%20Outlook) In Q3 FY2024, the North America Solutions segment's operating income increased sequentially due to higher direct margins, while the International Solutions segment posted an operating loss primarily driven by start-up costs for Saudi Arabia operations, and the Offshore Gulf of Mexico segment saw a significant rise in operating income as rigs became fully operational ahead of schedule [North America Solutions](index=3&type=section&id=North%20America%20Solutions) The North America Solutions segment's operating income grew to $163.4 million from $147.1 million in the prior quarter, as direct margin increased by $6.0 million to $277.4 million, with the company exiting Q3 with 146 active rigs and projecting an exit rig count between 147-153 for Q4, with direct margins of $260-$280 million North America Solutions Performance (Q3 vs Q2 FY2024, in millions) | Metric | Q3 FY2024 | Q2 FY2024 | | :--- | :--- | :--- | | Operating Income | $163.4 million | $147.1 million | | Direct Margin | $277.4 million | $271.4 million | North America Solutions Q4 FY2024 Outlook (in millions) | Metric | Q4 FY2024 Guidance | | :--- | :--- | | Direct Margins | $260 - $280 million | | Exit Active Rigs | 147 - 153 | [International Solutions](index=3&type=section&id=International%20Solutions) This segment reported an operating loss of $4.8 million, a sharp decline from the $3.6 million operating income in the previous quarter, primarily due to recommissioning and start-up expenses for rigs being exported to Saudi Arabia, with Q4 direct margins projected to be between $(2) million and $2 million, including an estimated $6-$8 million in rig preparation and start-up costs International Solutions Performance (Q3 vs Q2 FY2024, in millions) | Metric | Q3 FY2024 | Q2 FY2024 | | :--- | :--- | :--- | | Operating Income (Loss) | ($4.8 million) | $3.6 million | | Direct Margin | $0.4 million | $8.4 million | - The decrease in operating income was mainly due to recommissioning expenses for rigs being sent to Saudi Arabia and related start-up costs[33](index=33&type=chunk) International Solutions Q4 FY2024 Outlook (in millions) | Metric | Q4 FY2024 Guidance | | :--- | :--- | | Direct Margins | $(2) - $2 million | | Est. Saudi Start-up Costs | $6 - $8 million | [Offshore Gulf of Mexico](index=3&type=section&id=Offshore%20Gulf%20of%20Mexico) Operating income for the Offshore segment surged to $5.0 million from just $0.1 million in the prior quarter, with this significant improvement attributed to rigs moving to full operating rates earlier than planned, and the outlook for Q4 anticipating direct margins to be between $6-$8 million Offshore Gulf of Mexico Performance (Q3 vs Q2 FY2024, in millions) | Metric | Q3 FY2024 | Q2 FY2024 | | :--- | :--- | :--- | | Operating Income | $5.0 million | $0.1 million | | Direct Margin | $7.6 million | $2.9 million | - The increase in operating income was primarily attributable to rigs moving to full operating rates earlier than planned[33](index=33&type=chunk) Offshore Gulf of Mexico Q4 FY2024 Outlook (in millions) | Metric | Q4 FY2024 Guidance | | :--- | :--- | | Direct Margins | $6 - $8 million | [Fiscal Year 2024 Outlook](index=3&type=section&id=Other%20Estimates%20for%20Fiscal%20Year%202024) The company updated its full-year guidance for fiscal 2024, maintaining gross capital expenditures at approximately $500 million, with expected offsets from asset sales revised to $45 million, and updated guidance for depreciation, R&D, and G&A expenses, while the cash tax forecast remains unchanged Updated FY2024 Full-Year Guidance (in millions) | Metric | FY2024 Estimate | | :--- | :--- | | Gross Capital Expenditures | ~$500 million | | Asset Sale Offsets | ~$45 million | | Depreciation | ~$400 million | | R&D Expenses | ~$40 million | | G&A Expenses | ~$250 million | | Cash Taxes Paid | $150 - $200 million | [Consolidated Financial Statements](index=6&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) This section provides the unaudited condensed consolidated financial statements for the three and nine months ended June 30, 2024, showing the company generated $697.7 million in revenue and $88.7 million in net income for the third quarter, with total assets at $4.48 billion as of June 30, 2024, and cash from operations at $515.9 million for the nine-month period [Statements of Operations](index=6&type=section&id=Statements%20of%20Operations) For the third quarter ended June 30, 2024, H&P reported total operating revenues of $697.7 million and an operating income of $111.3 million, resulting in a net income of $88.7 million and diluted earnings per share of $0.88, which compares favorably to the prior quarter's net income of $84.8 million Condensed Statement of Operations (in thousands) | Metric | Three Months Ended June 30, 2024 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Operating Revenues | $697,724 | $687,943 | | Operating Income | $111,313 | $110,572 | | Net Income | $88,685 | $84,831 | | Diluted EPS | $0.88 | $0.84 | [Balance Sheets](index=7&type=section&id=Balance%20Sheets) As of June 30, 2024, H&P's balance sheet showed total assets of $4.48 billion, an increase from $4.38 billion at the end of fiscal 2023, with cash and cash equivalents at $203.6 million, total liabilities at $1.63 billion, and total shareholders' equity increasing to $2.86 billion Condensed Balance Sheet Data (in thousands) | Metric | June 30, 2024 | September 30, 2023 | | :--- | :--- | :--- | | Total Current Assets | $970,319 | $1,006,625 | | Property, Plant & Equipment, net | $3,014,345 | $2,921,695 | | **Total Assets** | **$4,484,982** | **$4,381,956** | | Total Current Liabilities | $456,792 | $418,931 | | Long-Term Debt, net | $545,589 | $545,144 | | **Total Shareholders' Equity** | **$2,856,845** | **$2,771,943** | [Statements of Cash Flows](index=8&type=section&id=Statements%20of%20Cash%20Flows) For the nine months ended June 30, 2024, net cash provided by operating activities was $515.9 million, net cash used in investing activities totaled $354.0 million largely due to $389.1 million in capital expenditures, and net cash used in financing activities was $415.0 million, driven by dividends and share repurchases Cash Flow Summary (Nine Months Ended June 30, in thousands) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $515,907 | $619,000 | | Net Cash used in Investing Activities | ($353,998) | ($191,044) | | Net Cash used in Financing Activities | ($414,992) | ($414,992) | [Supplementary Information and Non-GAAP Reconciliations](index=9&type=section&id=SUPPLEMENTARY%20STATISTICAL%20INFORMATION) This section provides supplemental operational data and reconciles non-GAAP measures to their GAAP equivalents, detailing H&P's 148 contracted U.S. land rigs as of July 24, 2024, and outlining future rig activity under long-term contracts, while clarifying adjustments made to GAAP net income to arrive at adjusted net income and reconciling segment operating income to the non-GAAP direct margin metric [Supplementary Rig Data](index=11&type=section&id=Supplementary%20Rig%20Data) As of July 24, 2024, H&P's U.S. land operations had 148 total contracted rigs, comprising 88 on term contracts and 60 on spot contracts, out of a total marketable fleet of 232, with a forward-looking schedule showing 95.9 total rigs under long-term contracts for Q4 FY24, projected to decrease to 14.0 by Q2 FY26 U.S. Land Rig Counts (as of July 24, 2024) | Contract Type | Rig Count | | :--- | :--- | | Term Contract Rigs | 88 | | Spot Contract Rigs | 60 | | **Total Contracted Rigs** | **148** | | Idle or Other Rigs | 84 | | **Total Marketable Fleet** | **232** | Rigs Under Long-Term Contracts (Estimated Quarterly Average) | Period | Total Rigs | | :--- | :--- | | Q4 FY24 | 95.9 | | Q1 FY25 | 83.4 | | Q2 FY25 | 53.9 | | Q3 FY25 | 42.1 | | Q4 FY25 | 38.1 | [Non-GAAP Reconciliations](index=13&type=section&id=NON-GAAP%20MEASUREMENTS) The company provides reconciliations for key non-GAAP metrics, showing that for Q3 FY24, GAAP net income of $88.7 million was adjusted for items including a $7.5 million pre-tax gain on equity investments and a $7.1 million pre-tax loss on a Blue Chip Swap transaction, resulting in an adjusted net income of $93.3 million, and detailing how direct margin for each segment is reconciled to segment operating income - The company uses non-GAAP metrics like direct margin and adjusted net income to assess and understand current operational performance, facilitate comparisons over time, and forecast future results by excluding items deemed outside core business operations[3](index=3&type=chunk)[10](index=10&type=chunk)[48](index=48&type=chunk) Reconciliation of Net Income to Adjusted Net Income (Q3 FY2024, in thousands) | Description | Pre-Tax | Tax Impact | Net | | :--- | :--- | :--- | :--- | | **Net Income (GAAP)** | **-** | **-** | **$88,685** | | Fair market adjustment to equity investments | $7,508 | $1,944 | $5,564 | | Non-recurring professional service fees | $(6,680) | $(1,730) | $(4,950) | | Losses on a Blue Chip Swap transaction | $(7,112) | $(1,842) | $(5,270) | | **Adjusted Net Income (Non-GAAP)** | **-** | **-** | **$93,341** | Reconciliation of Segment Operating Income to Direct Margin (Q3 FY2024, in thousands) | Segment | Operating Income (Loss) | Depreciation & Amortization | R&D | SG&A | Direct Margin (Non-GAAP) | | :--- | :--- | :--- | :--- | :--- | :--- | | North America Solutions | $163,359 | $89,207 | $10,623 | $14,234 | $277,423 | | International Solutions | $(4,844) | $2,797 | - | $2,483 | $436 | | Offshore Gulf of Mexico | $5,010 | $1,798 | - | $799 | $7,607 |

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 ...

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]

Net cash provided by operating activities was $144 million for the second quarter of fiscal year 2024 compared to net cash provided by operating activities of $175 million for the first quarter of fiscal year 2024. Helmerich & Payne | 1437 South Boulder Ave. | Suite 1400 Tulsa, OK 74119 | 918.588.5190 | helmerichpayne.com Exhibit 99.1 NEWS RELEASE April 24, 2024 HELMERICH & PAYNE, INC. ANNOUNCES FISCAL SECOND QUARTER RESULTS Helmerich & Payne, Inc. (NYSE: HP) reported net income of $85 million, or $0.84 per ...

Table of Contents FORM 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2023 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 incorp ...

Operational Performance - As of September 30, 2023, the North America Solutions segment had 233 available rigs, with 147 contracted, representing a utilization rate of approximately 63%[28] - The Offshore Gulf of Mexico segment had a total of 7 available rigs, with 4 contracted, indicating a utilization rate of about 57%[30] - The International Solutions segment reported 22 available rigs, with 13 contracted, resulting in a utilization rate of approximately 59%[34] - Revenue days for North America Solutions increased to 61,814 in 2023 from 59,672 in 2022, reflecting a growth of about 3.8% year-over-year[37] - The average active rigs in North America Solutions rose to 169 in 2023, compared to 163 in 2022, indicating a 3.7% increase[37] - The total revenue days for International Solutions increased significantly to 4,788 in 2023 from 3,036 in 2022, marking a growth of approximately 57.5%[37] - The company had 164 active rigs under contract as of September 30, 2023, compared to 192 and 137 rigs under contract in 2022 and 2021, respectively[60] - The company operates the largest super-spec fleet in the industry with 242 super-spec rigs as of September 30, 2023[56] Financial Performance - Operating revenues for the year ended September 30, 2023, were $2,872,421 thousand, a significant increase of 39.4% from $2,058,944 thousand in 2022[340] - The net income for the year ended September 30, 2023, was $434,100 thousand, compared to a net income of $6,953 thousand in 2022, indicating a substantial improvement[340] - The company reported an operating income of $561,889 thousand for the year ended September 30, 2023, compared to an operating income of $45,292 thousand in 2022[340] - Basic earnings per common share for 2023 were $4.18, a significant increase from $0.05 in 2022[340] - Comprehensive income for 2023 reached $438.2 million, compared to $15.1 million in 2022[341] - Net cash provided by operating activities was $833.7 million in 2023, up from $233.9 million in 2022[343] - Capital expenditures for 2023 totaled $395.5 million, an increase from $250.9 million in 2022[343] - Dividends paid in 2023 amounted to $201.5 million, compared to $107.4 million in 2022[343] - Cash and cash equivalents at the end of 2023 were $316.2 million, up from $269 million at the end of 2022[344] Market Position - As of September 30, 2023, the company held approximately 23.6% of the total market share in U.S. land drilling and 33.4% of the super-spec market share[40] - North America Solutions segment contributed approximately 87.7% ($2.5 billion) of consolidated operating revenues in fiscal year 2023, up from 86.8% ($1.8 billion) in 2022[42] - Offshore Gulf of Mexico segment accounted for approximately 4.5% ($130.2 million) of consolidated operating revenues in fiscal year 2023, down from 6.1% ($125.5 million) in 2022[44] - International Solutions segment contributed approximately 7.4% ($212.6 million) of consolidated operating revenues in fiscal year 2023, an increase from 6.6% ($136.1 million) in 2022[45] Strategic Initiatives - The company commenced operations in Australia in the fourth fiscal quarter of 2023, expanding its international footprint[25] - The company maintains a strategy focused on developing and commercializing technologies to enhance drilling efficiency and accuracy[24] - The company continues to develop automation solutions aimed at reducing variability and costs in the drilling process, enhancing wellbore quality and placement[58] - The company has reconfigured 68 FlexRig drilling rigs to super-spec walking rigs since introducing the first walking rig in 2017[56] Employee and Corporate Governance - The company had approximately 6,200 employees in the U.S. and 900 internationally as of September 30, 2023, with employee numbers fluctuating based on service demand[68] - The company maintains a strong commitment to employee training and development, focusing on safety, ethical conduct, and inclusive teamwork[72] - Employee benefits include medical, dental, and vision insurance, a 401(k) plan with company match, and educational assistance for pursuing degrees[83] - The company has implemented a diversity, equity, and inclusion program, including a DE&I Advisory Council and tracking of diversity data[78] Risk Management - The company’s drilling services demand is influenced by crude oil and natural gas prices, which have historically been volatile and difficult to predict[303] - The company’s operations in Argentina are subject to currency exchange risks, with a potential 10% decrease in the value of Argentine pesos resulting in a decrease of approximately $0.4 million in monetary assets[301] - The company is subject to various U.S. and foreign laws, including the U.S. Foreign Corrupt Practices Act, which could impact its operations if not complied with[89] Sustainability and Compliance - The company’s sustainability strategy focuses on emissions, diversity, and safety, utilizing data to understand its impacts[91] - The company has made required expenditures to comply with current and future regulatory requirements, with no significant anticipated changes to its competitive position or earnings for fiscal year 2024[90] Debt and Equity - The company reported a fixed rate of 2.90% on its outstanding debt of $550.0 million in senior unsecured notes as of September 30, 2023[306] - As of September 30, 2023, the fair value of the company's equity securities in ADNOC Drilling was $174.8 million, up from $147.4 million in the previous year[307] - The company has no outstanding borrowings under its revolving credit facility as of September 30, 2023[306] Asset Management - The consolidated balance sheets of Helmerich & Payne, Inc. show total assets of $4,381,956 thousand as of September 30, 2023, compared to $4,355,531 thousand in 2022, reflecting a slight increase[339] - The total current liabilities increased to $418,931 thousand in 2023 from $394,810 thousand in 2022, marking a rise of 6.1%[339] - The company’s long-term debt remained relatively stable at $545,144 thousand in 2023, compared to $542,610 thousand in 2022[339] - The company recognized a gain of $48.2 million in fiscal year 2023 related to customer reimbursement for lost or damaged drill pipe[406] Lease and Rental Obligations - Total lease costs for fiscal year 2023 amounted to $12.4 million, up from $11.2 million in 2022[414] - The operating lease commitments, including probable extensions, increased to $65.97 million in 2023 from $44.77 million in 2022[412] - Future minimum rental payments required under operating leases total $54.421 million, with $10.534 million due in 2024 and $21.391 million due thereafter[416] - A lease agreement was entered into for relocating the corporate headquarters to a new office space, resulting in a $17.6 million increase to right-of-use assets and lease liability[417]