Core Insights - Helmerich & Payne, Inc. (HP) is a prominent player in the oil and gas drilling industry, recognized for its specialized drilling services and a substantial fleet of land rigs both domestically and internationally [1] - RBC Capital has set a price target of $29 for HP, suggesting a potential price increase of 4.54% from its current trading price of $27.74 [1] - HP's stock price is currently at $27.81, reflecting a 2.22% increase or $0.61 from previous levels [2] Financial Performance - During the Q4 2025 earnings call, HP presented its financial standing with CEO John Lindsay and CFO J. Vann leading the discussion [2] - The stock has shown volatility, trading between $27.05 and $27.96 on the day, with significant fluctuations over the past year, reaching a high of $37.30 and a low of $14.65 [3] Market Position - HP has a market capitalization of approximately $2.76 billion, indicating its size and influence in the drilling sector [4] - The trading volume on the NYSE is 357,186 shares, reflecting active investor interest and providing insights into the company's market position and investor sentiment [4]

Helmerich & Payne (NYSE:HP) Q4 2025 Earnings Call November 18, 2025 11:00 AM ET Speaker7Please note this call is being recorded. We are standing by if you should need any assistance. It is now my pleasure to turn the meeting over to Mr. Kevin Vann, CFO. Please go ahead.Speaker3Thank you. Welcome, everyone, to Helmerich & Payne's conference call and webcast for the fourth quarter and fiscal full year 2025. Before we get started, I first wanted to extend a warm welcome to Chris Nickel, who has joined the comp ...

Core Insights - Helmerich & Payne, Inc. is set to announce its fiscal fourth-quarter earnings on November 17, 2025, with an expected EPS of $0.26 and revenues of approximately $973 million [1][5] Financial Performance - The anticipated revenue of $973 million represents a significant 40% increase from the previous year's revenue of $694 million, driven by strong growth in the International and Offshore divisions [2][5] - The projected EPS of $0.26 indicates a decline from the prior year's EPS of $0.76, attributed to rising operating, depreciation, and administrative expenses [2][5] Analyst Sentiment - Despite profitability challenges, HP's stock has garnered attention from analysts, with Citigroup analyst Scott Gruber maintaining a Neutral rating but raising the price target from $17 to $26, reflecting a more optimistic outlook [3] - The consensus EPS forecast has seen a 7.9% downward adjustment over the last month, indicating some caution among analysts [3] Dividend and Valuation Metrics - HP offers an attractive annual dividend yield of 3.71%, translating to a quarterly dividend of $0.25 per share or $1.00 annually [4] - The price-to-sales ratio is 0.78, suggesting that investors are paying $0.78 for every dollar of sales, while the debt-to-equity ratio stands at 0.79, indicating moderate debt levels [4]

Core Insights - Nabors Industries (NBR) reported a quarterly loss of $3.67 per share, which was worse than the Zacks Consensus Estimate of a loss of $2.37, and compared to a loss of $3.35 per share a year ago, indicating a significant earnings surprise of -54.85% [1] - The company generated revenues of $818.19 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 2.79%, but showing an increase from $731.8 million in the same quarter last year [2] - Nabors shares have declined approximately 17.4% year-to-date, contrasting with the S&P 500's gain of 16.9% [3] Earnings Outlook - The future performance of Nabors' stock will largely depend on management's commentary during the earnings call and the company's earnings outlook, which includes current consensus earnings expectations for upcoming quarters [4][6] - The current consensus EPS estimate for the next quarter is -$2.20 on revenues of $824.06 million, and for the current fiscal year, it is -$5.09 on revenues of $3.24 billion [7] Industry Context - The Oil and Gas - Drilling industry, to which Nabors belongs, is currently ranked in the bottom 7% of over 250 Zacks industries, indicating a challenging environment that could impact stock performance [8] - Another company in the same industry, Seadrill (SDRL), is expected to report a quarterly earnings decline of 46.9% year-over-year, with revenues projected to decrease by 7.1% from the previous year [9][10]

Core Viewpoint - Precision Drilling reported a quarterly loss of $0.37 per share, significantly missing the Zacks Consensus Estimate of $1.2, and down from earnings of $1.69 per share a year ago, indicating an earnings surprise of -130.83% [1] Financial Performance - The company posted revenues of $335.67 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.77%, but down from $349.79 million in the same quarter last year [2] - Over the last four quarters, Precision Drilling has exceeded consensus revenue estimates two times [2] Stock Performance - Precision Drilling shares have declined approximately 10.3% since the beginning of the year, contrasting with the S&P 500's gain of 14.5% [3] Future Outlook - The company's earnings outlook will be crucial for determining the stock's immediate price movement, with current consensus EPS estimates at $1.14 for the coming quarter and $6.01 for the current fiscal year [4][7] - The Zacks Rank for Precision Drilling is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Oil and Gas - Drilling industry is currently ranked in the bottom 11% of over 250 Zacks industries, suggesting that the industry's outlook could materially impact the stock's performance [8]

Core Insights - Patterson-UTI reported a quarterly loss of $0.06 per share, which was better than the Zacks Consensus Estimate of a loss of $0.10, marking a 40% earnings surprise [1] - The company generated revenues of $1.18 billion for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 0.47%, but down from $1.36 billion year-over-year [2] - The stock has underperformed, losing approximately 27% year-to-date compared to the S&P 500's gain of 14.5% [3] Company Performance - Over the last four quarters, Patterson-UTI has surpassed consensus EPS estimates two times and topped revenue estimates three times [2] - The current consensus EPS estimate for the upcoming quarter is -$0.15 on revenues of $1.09 billion, and for the current fiscal year, it is -$0.38 on revenues of $4.75 billion [7] Industry Context - The Oil and Gas - Drilling industry, to which Patterson-UTI belongs, is currently ranked in the bottom 11% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Patterson-UTI's stock performance [5][6]

Core Viewpoint - Nabors Industries reported a wider-than-expected loss in Q2 2025, but operating revenues increased year-over-year, indicating mixed performance across its segments [2][3]. Financial Performance - The adjusted loss for Q2 2025 was $2.71 per share, exceeding the consensus estimate of a loss of $2.05, but improved from a loss of $4.29 per share in the prior year [2]. - Operating revenues reached $832.8 million, slightly above the consensus estimate of $831 million and up from $734.8 million a year ago [3]. - Adjusted EBITDA was $248.5 million, an increase from $218.1 million year-over-year, but below the model estimate of $306.5 million [3]. Segmental Performances - U.S. Drilling revenues were $255.4 million, down 1.6% from $259.7 million a year ago, missing the estimate of $312.7 million [4]. - International Drilling revenues increased to $385 million from $356.7 million year-over-year, but fell short of the estimate of $394.8 million [5]. - The Drilling Solutions segment saw revenues of $170.3 million, a 105.3% increase from $83 million in the prior year, exceeding the estimate of $91.1 million [5]. Financial Position - Total costs and expenses rose to $818 million from $740.5 million year-over-year, slightly above the prediction of $816.1 million [7]. - As of June 30, 2025, cash and short-term investments totaled $387.4 million, with long-term debt at approximately $2.7 billion [7]. Guidance - For Q3 2025, U.S. Drilling operations are expected to have an average rig count of 57 to 59 rigs and a daily adjusted gross margin of about $13,300 [8]. - International operations are projected to have an average rig count of 87 to 88 rigs, with a daily adjusted gross margin of approximately $17,900 [9]. - Capital expenditures for Q3 2025 are planned between $200 million and $210 million, with a total expected for the year ranging from $700 million to $710 million [10]. Cash Flow and Outlook - The company anticipates adjusted free cash flow for Q3 2025 to be consistent with Q2 levels, aiming for a full-year target of $80 million [11]. - Estimates for the stock have been trending upward, with a Zacks Rank of 3 (Hold), indicating an expectation of in-line returns in the coming months [14].

Core Viewpoint - Helmerich & Payne reported strong Q3 FY2025 earnings with non-GAAP EPS of $0.22, exceeding expectations, but faced a net loss due to a significant goodwill impairment of $173 million in its international segment [1][5][9] Financial Performance - Revenue for Q3 FY2025 reached $1,040.9 million, a 49.3% increase from $697.7 million in Q3 FY2024 [2][5] - Adjusted EBITDA was $268.1 million, up 21.5% from $220.7 million in Q3 FY2024 [2][6] - Direct margin for North America Solutions was stable at $266.2 million, while International Solutions saw a substantial increase to $34.1 million from $2.5 million in Q3 FY2024 [2][5] - Offshore Solutions' direct margin nearly tripled to $22.8 million from $7.6 million in Q3 FY2024 [2][6] Business Overview and Strategy - Helmerich & Payne specializes in land-based drilling services, particularly with its advanced FlexRig® line, and operates through North America Solutions, International Solutions, and Offshore Solutions [3][4] - The company focuses on technological advancements and geographic expansion, particularly in Saudi Arabia and the Middle East [4] Key Developments - The quarter marked the first full period of the KCA Deutag acquisition, with management identifying approximately $50 million in annual cost savings from integration efforts [5][7] - The company maintained its quarterly dividend of $25 million and repaid $120 million in term loan debt, raising its full-year repayment target to $200 million [9][14] Outlook and Guidance - Management provided cautious guidance for future direct margins, expecting North America Solutions to see rig counts fall to 138–144 and direct margins between $230–$250 million [12][13] - International Solutions is forecasted to have direct margins in the $22–$32 million range, with ongoing uncertainties due to rig suspensions in Saudi Arabia [12][13]

Core Insights - Noble Corporation PLC reported quarterly earnings of $0.13 per share, missing the Zacks Consensus Estimate of $0.57 per share, and down from $0.72 per share a year ago, representing an earnings surprise of -77.19% [1] - The company posted revenues of $848.65 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 0.61%, but up from $692.84 million year-over-year [2] - Noble Corporation PLC shares have declined approximately 17.5% since the beginning of the year, contrasting with the S&P 500's gain of 7.6% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.45 on revenues of $822.15 million, and for the current fiscal year, it is $1.22 on revenues of $3.36 billion [7] - The estimate revisions trend for Noble Corporation PLC was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Oil and Gas - Drilling industry, to which Noble Corporation PLC belongs, is currently in the bottom 10% of over 250 Zacks industries, suggesting a challenging environment for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, highlighting the importance of monitoring these revisions for investment decisions [5]

Core Insights - Transocean reported break-even quarterly earnings per share, surpassing the Zacks Consensus Estimate of a loss of $0.01, and showing improvement from a loss of $0.15 per share a year ago, resulting in an earnings surprise of +100.00% [1] - The company posted revenues of $988 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 2.05%, and up from $861 million year-over-year [2] - Transocean shares have underperformed the market, losing about 24.8% since the beginning of the year compared to the S&P 500's gain of 6.1% [3] Earnings Outlook - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.04 on revenues of $971.99 million, and $0.02 on revenues of $3.85 billion for the current fiscal year [7] Industry Context - The Oil and Gas - Drilling industry, to which Transocean belongs, is currently ranked in the bottom 9% of over 250 Zacks industries, indicating potential challenges ahead [8] - Helmerich & Payne, another company in the same industry, is expected to report a significant year-over-year earnings decline of -78.3% for the quarter ended June 2025, with a consensus EPS estimate revised 15.1% lower [9]