Helmerich & Payne, Inc. Thank You for Your Interest in H&P For more information, please visit our website at www.helmerichpayne.com Contact: Dave Wilson, CFA, CPA VP of Investor Relations 918-588-5190, investor.relations@hpinc.com NYSE : HP • Supporting baseload power source alternative • 6 investments in companies pursuing unconventional geothermal resources with enhanced geothermal and closed-loop systems • Drilled the first horizontal geothermal well in the U.S. • Natural gas/LNG • Investment in Galileo ...

Helmerich & Payne, Inc. (NYSE:HP) Q3 2023 Earnings Conference Call July 27, 2023 11:00 AM ET Company Participants Dave Wilson - Vice President-Investor Relations John Lindsay - President & Chief Executive Officer Mark Smith - Senior Vice President & Chief Financial Officer Conference Call Participants Derek Podhaizer – Barclays David Smith - Pickering Energy Keith Mackey - RBC Capital Markets Saurabh Pant - Bank of America Arun Jayaram - JPMorgan Kurt Hallead - Benchmark Doug Becker - Capital One Operator G ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to (Exact name of registrant as specified in its charter) For the quarterly period ended June 30, 2023 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) OR Delaware 73-0679879 Commission file number 1-4221 QUARTERLY REPORT PURSUANT TO SECTI ...

Financial Data and Key Metrics Changes - The company reported earnings of $1.55 per diluted share for Q2, up from $0.91 in the previous quarter, with a net gain of $0.29 per share attributed to investment securities [50][78] - Revenue increased to $769 million in Q2 from $720 million in the previous quarter, primarily due to higher pricing efforts in the North America fleet [78] - Operating cash flow for Q2 was approximately $141 million, including $114 million in cash tax payments [51] Business Line Data and Key Metrics Changes - In the North America Solutions segment, the average contracted rigs increased to 183 in Q2 from 180 in Q1, with revenues rising by $49 million due to higher average pricing [9][78] - The direct margin for the North America Solutions segment was $296 million, up from $260 million in the previous quarter [52] - The offshore Gulf of Mexico segment generated a direct margin of $9.3 million, remaining flat sequentially [57] Market Data and Key Metrics Changes - The company noted a reduction in active rig count due to customer budgetary constraints and a focus on returns, leading to a lower forward rig count projection [7] - The effective utilization of super-spec rigs remained above 90%, which historically supports a favorable pricing environment [72] - The company expects to exit Q3 with between 155 and 160 contracted rigs, down from 179 at the end of Q2 [54] Company Strategy and Development Direction - The company is focused on achieving returns over market share, emphasizing the importance of maintaining pricing to preserve return profiles [5][19] - Investments in the FlexRig fleet and technology are aimed at improving drilling performance and reliability, with a goal of achieving a 50% direct margin in the North America Solutions segment [40][52] - The company plans to export additional super-spec rigs to the Middle East and Australia, indicating a strategic focus on international growth [8][47] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term energy fundamentals, particularly for natural gas, despite current softness in pricing affecting rig activity [71] - The company anticipates a recovery in rig count in the second half of the year, driven by expected improvements in crude oil demand [73] - Management acknowledged the challenges posed by political and economic uncertainties in the global crude oil market [28] Other Important Information - General and administrative expenses for Q2 were approximately $53 million, slightly higher than expected due to IT and professional services costs [18] - The company has returned approximately $250 million to shareholders through dividends and share buybacks since October of the fiscal year [77] - Capital expenditures for the full fiscal year are now expected to range between $400 million to $450 million, reflecting a decrease in the midpoint from prior guidance [58] Q&A Session Summary Question: Can you provide insights on the performance-based contracts and their benefits? - The company reported that performance-based contracts now account for about 45% of the current fleet, with gradual increases from 40% [91][112] Question: What is the mix of rigs being dropped and the impact of natural gas prices? - Approximately 70% of the rigs released are from private companies, primarily due to low gas prices affecting rig demand [95][112] Question: How does the company view capital allocation for international growth versus stock buybacks? - The company is open to both international growth opportunities and stock buybacks, indicating a balanced approach to capital allocation [113] Question: What are the expectations for rig count recovery in the second half of the year? - Management expects an increase in rig count in the second half of the year, with ongoing conversations with customers about potential rig pickups [101][124]

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The unaudited financial statements show a significant year-over-year revenue increase and a return to profitability [Unaudited Condensed Consolidated Balance Sheets](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheets | (in thousands) | March 31, 2023 | September 30, 2022 | | :--- | :--- | :--- | | **Total current assets** | $1,004,451 | $1,002,944 | | **Total assets** | **$4,365,733** | **$4,355,531** | | **Total current liabilities** | $413,721 | $394,810 | | **Total liabilities** | $1,609,927 | $1,590,059 | | **Total shareholders' equity** | **$2,755,806** | **$2,765,472** | - Total assets remained relatively stable, increasing slightly to **$4.37 billion** as of March 31, 2023[7](index=7&type=chunk) - Cash and cash equivalents decreased from **$232.1 million to $159.7 million** over the six-month period[7](index=7&type=chunk) [Unaudited Condensed Consolidated Statements of Operations](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) Three Months Ended March 31 | (in thousands, except per share) | Three Months Ended Mar 31, 2023 | Three Months Ended Mar 31, 2022 | | :--- | :--- | :--- | | **Operating Revenues** | **$769,222** | **$467,597** | | **Operating Income (Loss)** | $175,205 | $(22,617) | | **Net Income (Loss)** | **$164,040** | **$(4,976)** | | **Diluted EPS** | **$1.55** | **$(0.05)** | Six Months Ended March 31 | (in thousands, except per share) | Six Months Ended Mar 31, 2023 | Six Months Ended Mar 31, 2022 | | :--- | :--- | :--- | | **Operating Revenues** | **$1,488,859** | **$877,379** | | **Operating Income (Loss)** | $319,428 | $(65,228) | | **Net Income (Loss)** | **$261,185** | **$(56,338)** | | **Diluted EPS** | **$2.46** | **$(0.53)** | - The company experienced a significant turnaround, with operating revenues for the three and six months ended March 31, 2023 increasing by **64.5% and 69.7%** year-over-year, respectively[8](index=8&type=chunk) - This growth led to substantial net income compared to net losses in the prior-year periods[8](index=8&type=chunk) [Unaudited Condensed Consolidated Statements of Shareholders' Equity](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity) - For the six months ended March 31, 2023, the company declared dividends totaling **$126.7 million**[10](index=10&type=chunk) - The company repurchased **3.4 million shares** for an aggregate cost of **$145.8 million** during the six months ended March 31, 2023[10](index=10&type=chunk)[57](index=57&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Six Months Ended March 31 | (in thousands) | Six Months Ended Mar 31, 2023 | Six Months Ended Mar 31, 2022 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | **$326,254** | **$18,896** | | Net cash used in investing activities | $(119,206) | $(45,321) | | Net cash used in financing activities | $(263,154) | $(680,915) | | **Net decrease in cash** | **$(56,106)** | **$(707,340)** | - Cash flow from operations increased dramatically to **$326.3 million** for the six-month period, driven by higher net income[12](index=12&type=chunk) - Cash used in financing activities decreased significantly year-over-year, as the prior period included a **$487.1 million** payment for early debt extinguishment[12](index=12&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) - The company's operations are organized into three segments: North America Solutions, Offshore Gulf of Mexico, and International Solutions[15](index=15&type=chunk)[27](index=27&type=chunk) - The company recorded non-cash impairment charges of **$12.1 million** related to the decommissioning of several rigs and equipment[34](index=34&type=chunk)[160](index=160&type=chunk) - As of March 31, 2023, the company had **$542.7 million** in long-term debt and an undrawn **$750.0 million** revolving credit facility[43](index=43&type=chunk)[49](index=49&type=chunk) - The company's contract backlog was approximately **$1.3 billion** as of March 31, 2023[63](index=63&type=chunk) - The company is appealing a legal judgment of **$60.0 million** from a 2018 car accident involving an employee[100](index=100&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Performance was driven by increased rig activity and pricing, with a constructive outlook despite some market volatility [Executive Summary & Market Outlook](index=31&type=section&id=Executive%20Summary%20%26%20Market%20Outlook) - As of March 31, 2023, the company had **198 active contracted rigs** out of a total fleet of 262[116](index=116&type=chunk) - There is strong customer preference for **super-spec rigs**, where H&P is the largest provider[120](index=120&type=chunk) - Recent weakness in natural gas prices has led some customers to reduce activity, lowering the active rig count forecast for fiscal 2023[123](index=123&type=chunk)[124](index=124&type=chunk) - Despite the lower activity outlook, the company expects a **higher average revenue per day** in the latter half of fiscal 2023[124](index=124&type=chunk) [Results of Operations](index=33&type=section&id=Results%20of%20Operations) Consolidated Results (Three Months) | (in millions) | Three Months Ended Mar 31, 2023 | Three Months Ended Mar 31, 2022 | | :--- | :--- | :--- | | **Operating Revenues** | $769.2 | $467.6 | | **Net Income (Loss)** | $164.0 | $(5.0) | Consolidated Results (Six Months) | (in millions) | Six Months Ended Mar 31, 2023 | Six Months Ended Mar 31, 2022 | | :--- | :--- | :--- | | **Operating Revenues** | $1,488.9 | $877.4 | | **Net Income (Loss)** | $261.2 | $(56.3) | - The **North America Solutions segment** was the primary driver of growth, with revenues increasing **65.3% YoY** for the quarter[138](index=138&type=chunk) - The **International Solutions segment** also saw significant growth, with revenues more than doubling and average active rigs increasing from 7 to 14 YoY[149](index=149&type=chunk)[152](index=152&type=chunk) [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) - Sources of liquidity include **$159.7 million in cash**, **$85.1 million in short-term investments**, and an undrawn **$750.0 million credit facility**[183](index=183&type=chunk)[186](index=186&type=chunk) - Cash flow from operations for the six months was **$326.3 million**, a substantial increase from $18.9 million in the prior-year period[187](index=187&type=chunk) - Capital expenditures for the six-month period were **$181.5 million**, up from $104.5 million year-over-year[188](index=188&type=chunk) - The company returned significant capital to shareholders, paying **$102.9 million in dividends** and repurchasing **$145.8 million of its stock**[192](index=192&type=chunk)[194](index=194&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=46&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section refers to other report sections for detailed disclosures on market, interest rate, and currency risks - The company directs investors to other sections for information on market risks, including equity price, interest rate, and foreign currency risk[219](index=219&type=chunk) [Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material internal control changes - Based on an evaluation, management concluded that the company's disclosure controls and procedures were **effective** as of the end of the period[216](index=216&type=chunk) - **No material changes** to internal controls over financial reporting occurred during the most recent fiscal quarter[217](index=217&type=chunk) [PART II. OTHER INFORMATION](index=46&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 12 of the financial statements for information regarding legal proceedings - For information regarding legal proceedings, the report refers to Note 12—Commitments and Contingencies in the financial statements[218](index=218&type=chunk) [Risk Factors](index=47&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors previously disclosed in the 2022 Annual Report on Form 10-K are reported - There have been **no material changes** in the risk factors from those disclosed in the company's 2022 Annual Report on Form 10-K[220](index=220&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=47&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company details its repurchase of 2.543 million shares during the quarter under its authorized plan Share Repurchase Activity (Q2 2023) | Period (2023) | Total Shares Purchased (thousands) | Average Price Paid per Share | | :--- | :--- | :--- | | January | 491 | $47.34 | | February | 870 | $43.13 | | March | 1,182 | $38.22 | | **Total** | **2,543** | **N/A** | - In December 2022, the Board of Directors increased the maximum number of shares authorized for repurchase in calendar year 2023 to **five million** common shares[221](index=221&type=chunk) [Exhibits](index=47&type=section&id=Item%206.%20Exhibits) This section lists filed exhibits, including CEO/CFO certifications and financial statements in Inline XBRL format - The exhibits include certifications from the CEO and CFO pursuant to Sections 302 and 906 of the **Sarbanes-Oxley Act of 2002**[223](index=223&type=chunk)

© 2022 Helmerich & Payne, Inc. All Rights Reserved. 1 | --- | --- | --- | --- | --- | --- | --- | --- | --- | |---------------------------------------------------------------------------------------|-------|-------|-------|-------|-------|-------|-------|-------| | | | | | | | | | | | March 2023 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Financial data as of 12/31/2022; other data as of 01/30/2023 unless otherwise noted. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ...

Financial Data and Key Metrics Changes - The company reported quarterly revenues of $720 million, an increase from $631 million in the previous quarter, primarily due to higher average pricing in the North America Solutions segment [9][28] - The effective tax rate for Q1 was approximately 25%, consistent with previous guidance [11] - Earnings per diluted share were $0.91, up from $0.42 in the previous quarter, with adjusted diluted earnings per share at $1.11 compared to $0.45 in the fourth quarter [28][28] - Operating cash flow for Q1 was approximately $185 million, aligning with expectations [12] Business Line Data and Key Metrics Changes - In the North America Solutions segment, direct margins were $260 million, up from $204 million in the previous quarter, with an average of 180 contracted rigs during Q1 [13][29] - The Offshore Gulf of Mexico segment generated a direct margin of $9.5 million, with expectations for Q2 margins between $8 million to $10 million [16] - The International Solutions segment saw an increase to 13 active rigs, with results exceeding guidance due to timing delays in costs associated with the Middle East hub [152] Market Data and Key Metrics Changes - Utilization of the active super-spec fleet is currently over 80%, supporting current pricing levels [22] - The average revenue per day for the North America Solutions segment was reported at $33,000, with expectations for further increases in the coming quarters [121][136] - The company has a revenue backlog of approximately $1.1 billion for rigs under term contract in North America [135] Company Strategy and Development Direction - The company remains focused on three strategic objectives: pricing and margin dynamics in North America, international opportunities, and investments in technology and sustainability [4] - Plans to add no more than 16 incremental rigs in North America during fiscal 2023, depending on customer demand [5] - The company is pursuing additional work in the Middle East and expects to establish an operational hub in the latter half of fiscal 2023 [124] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the outlook for 2023, citing strong customer relationships and the value proposition provided by the company [24] - The company anticipates continued upward momentum in financial results, with direct margins per day moving closer to the target level of 50% [130] - Management emphasized the importance of capital discipline and maintaining pricing power in a cyclical industry [122][164] Other Important Information - The company incurred capital expenditures of $96 million in Q1, with expectations for total CapEx in fiscal 2023 to range between $425 million to $475 million [12][139] - Approximately 844,000 shares were repurchased in December for about $39.1 million, with total fiscal 2023 repurchases reaching approximately 1.28 million shares for about $60 million [31][42] Q&A Session Summary Question: What is the company's strategy if rig demand decreases by 5% or 10%? - Management indicated that a decline of 20 to 40 rigs would be a small percentage of the overall fleet, and they would focus on pricing rather than adjusting operations significantly [35][164] Question: How does the company view the current appetite for term contracts among E&Ps? - Management noted that the appetite for term contracts remains strong, with a historical focus on maintaining 50% to 60% of contracts as term agreements [72] Question: What is the expected trend for capital expenditures? - The company expects capital expenditures to be lumpy, with timing affecting the spend across quarters [178] Question: How is the company addressing supply chain challenges? - Management highlighted that they have secured supply needs for 2023 and expect costs for materials and supplies to remain stable [74] Question: What is the outlook for performance-based contracts? - Management noted that performance-based contracts are becoming more common, with technology and automation driving increased adoption [99]

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 the quarterly period ended December 31, 2022 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 ...

Helmerich & Payne, Inc. (NYSE:HP) Q4 2022 Earnings Conference Call November 17, 2022 11:00 AM ET Company Participants Dave Wilson - Vice President of Investor Relations John Lindsay - President and Chief Executive Officer Mark Smith - Chief Financial Officer Conference Call Participants Derek Podhaizer - Barclays David Smith - Pickering Energy Partners Luke Lemoine - Piper Sandler Arun Jayaram - JPMorgan Chase & Co. Waqar Syed - ATB Capital Markets Inc. Marc Bianchi - Cowen Inc. Operator Good day, everyone, ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended September 30, 2022 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 incorporati ...