[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 ...

© 2022 Helmerich & Payne, Inc. All Rights Reserved. 1 Helmerich & Payne, Inc. | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------------------------------------------------------------------------------------|-------|-------|-------|-------|-------|-------|-------|-------| | | | | | | | | | | | August 2022 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Financial data as of 6/30/2022; other data as of 7/27/2022 unless otherwise noted. | | | | | | | | | | | | | | | | | | | | | | | | | ...

Helmerich & Payne, Inc. (NYSE:HP) Q3 2022 Earnings Conference Call July 28, 2022 11:00 AM ET Company Participants Dave Wilson - Vice President of Investor Relations John Lindsay - President & Chief Executive Officer Mark Smith - Chief Financial Officer Conference Call Participants Derek Podhaizer - Barclays Douglas Becker - Benchmark Research Keith Mackey - RBC Andrew Herring - JP Morgan Tom Carstairs - Stifel Research John Daniel - Daniel Energy Partners Operator Good day, everyone and welcome to today's H ...

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 quarterly period ended: June 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 incorporat ...

Helmerich & Payne, Inc. (NYSE:HP) Q2 2022 Earnings Conference Call April 28, 2022 11:00 AM ET Company Participants John Lindsay - President & CEO Mark Smith - SVP, CFO Dave Wilson - VP of IR Conference Call Participants Taylor Zurcher - Tudor Pickering Douglas Becker - Benchmark Research Ian Macpherson - Piper Sandler Waqar Syed - ATB Capital Markets Derek Podhaizer - Barclays Connor Lynagh - Morgan Stanley Operator Good day everyone and welcome to the Helmerich & Payne Fiscal Second Quarter Earnings Call. ...