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]

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]