Helmerich & Payne, Inc. (NYSE: HP) reported net income of $89 million, or $0.88 per diluted share, from operating revenues of $698 million for the quarter ended June 30, 2024. This compares to net income of $85 million, or $0.84 per diluted share, from operating revenues of $688 million for the quarter ended March 31, 2024. The net income per diluted share for the third and second quarters of fiscal year 2024 includes net $(0.04) and net $0.00 of after-tax gains and losses, respectively, comprised of select items(1). For the third quarter of fiscal year 2024, select items included:
- $0.06 of after-tax gains related to the non-cash fair market value adjustments to equity investments
- $(0.10) of after-tax losses related to a Blue Chip Swap transaction and non-recurring professional service fees
Net cash provided by operating activities was $197 million for the third quarter of fiscal year 2024, compared to $144 million for the second quarter of fiscal year 2024.
President and CEO John Lindsay commented, “Our financial results for the third fiscal quarter continue to demonstrate the resilience of our strategy in the North America Solutions segment. Despite a significant decline in the overall industry rig count, our NAS active rig count remained relatively stable, reflecting H&P’s focus on providing value to our customers. Internationally, our first super-spec FlexRig® arrived in Saudi Arabia, marking a step in our strategy to expand our operational presence in the region.
“Macro headwinds related to the oil and gas industry persist, causing a cautionary outlook. We hope these will subside, bringing a more positive outlook in the coming quarters. Contractual churn remains prevalent in the U.S. market, but our team is managing this well. We anticipate our active rig count to be flat or slightly increase as we approach our fiscal year-end.
“International activity levels in the fourth fiscal quarter are expected to remain consistent with the third fiscal quarter, except that the first of the eight Saudi Arabia rigs is expected to commence work in the fourth fiscal quarter once contractual acceptance procedures are completed. Preparation for the remaining seven super-spec rigs is progressing as planned, with export dates expected through the calendar year. We look forward to working with Saudi Aramco and building a long-term, valuable relationship.”
Senior Vice President and CFO Mark Smith added, “We expect our active NAS rig count in the fourth fiscal quarter to remain consistent with the third fiscal quarter average. Accordingly, our NAS direct margin guidance also remains relatively consistent. Contract economics are the cornerstone of our NAS strategy, and we do not anticipate the same level of volatility or correlation to overall rig counts as in the past. Recent quarterly results support this.
“The Company returned $42 million to shareholders in the form of base and supplemental dividends during the quarter, and the Board of Directors declared the fourth and final installment of the supplemental dividend under the 2024 Supplemental Shareholder Return Plan. As we begin establishing our fiscal 2025 capital budget, we preliminarily expect maintenance and walking rig conversions capex to be similar to fiscal 2024 levels, with international tender awards potentially influencing additional capex. The Company continuously evaluates cash uses and capital allocation priorities.”
John Lindsay concluded, “The Company will continue to execute with a customer-centric approach and safety focus, ingrained in our Company culture. We look forward to commencing work in Saudi Arabia and exploring additional opportunities in the coming quarters.”
