NYSE$HP

Helmerich & Payne Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Helmerich & Payne reported a net loss of $70.4 million with operating revenues of $246.4 million for the quarter ended December 31, 2020.

Helmerich & Payne's Q1 2021 results showed a net loss of $70.4 million, or $(0.66) per diluted share, with operating revenues of $246.4 million. The North America Solutions segment exited the quarter with 94 rigs, a significant increase from the lows in August 2020. The company's cash and short-term investments totaled $524 million, with $1.3 billion in available liquidity.

  • North America Solutions segment exited Q1 2021 with 94 rigs, doubling the lows experienced in August 2020.
  • The company ended the quarter with $524 million in cash and short-term investments and $1.3 billion in available liquidity.
  • North America Solutions operating gross margins increased $5 million sequentially to $45 million, with revenues increasing by $53 million to $202 million.
  • H&P's active FlexRig® fleet utilized AutoSlide® and performance-based contracts for 25% to 30% of its operations.

Headline financials

Total Revenue

$246M

Previous: $615M-59.9%
EPS (adj)

-$0.82

Previous: $0.27-403.7%
Capital Expenditures

-$14M

Previous: -$46M+69.6%
Free Cash Flow

-$84.4M

Previous: -$15.4M-447.6%
Net Income

-$70.4M

Previous: $30.6M-330.1%
Operating Income

-$93.2M

Previous: $31.4M-397.2%
Gross Profit

$46.3M

Previous: $214M-78.3%
Cash & Equivalents

$374M

Previous: $355M+5.3%
Total Assets

$4.73B

Previous: $5.84B-19.1%
Stock-Based Comp

$7.45M

Previous: $10.2M-27.0%

Revenue & EPS history

Helmerich & Payne · Revenue · Quarterly

$246M

Q1 2021-59.9%vs Q1 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Helmerich & Payne · $213M total across 2 segments · Q1 2021

  • North America Solutions
    $202M
  • International Solutions
    $10.5M

Forward guidance

Helmerich & Payne provided guidance for the second quarter of fiscal year 2021.

Tailwinds

  • North America Solutions operating gross margins are expected to be between $60-$70 million.
  • The company expects to exit the quarter at between 105-110 contracted rigs.
  • Offshore Gulf of Mexico operating gross margins are expected to be between $6-$9 million.
  • Gross capital expenditures are still expected to be approximately $85 to $105 million.
  • Asset sales are now expected to total approximately $25 million in fiscal year 2021.

Headwinds

  • International Solutions operating gross margins are expected to be between $(1)-$(3) million, exclusive of any foreign exchange gains or losses.
  • COVID-19 pandemic continues to have a significant impact.
  • Industry activity still remains at much lower relative levels.
  • The environment in which we operate is still uncertain.
  • Incurred significant costs associated with the large number of rig reactivations.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

-1.2%

Avg return

Earnings day

-1.7%

Avg return

5 days after

-3.4%

Avg return

30 days after

43%

31 / 72 earnings

Positive

+12.8%

Q1 2024

Best reaction

-20.8%

Q2 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026-7.2%-1.7%-6.0%
Q1 2026-5.2%-6.0%-6.4%
Q4 2025-3.7%-3.2%+0.3%
Q2 2025-3.5%+0.6%-11.8%
Q1 2025-16.5%-17.9%-23.0%
Q4 2024-6.0%-6.8%-6.9%
Q3 2024+8.8%+3.8%-11.4%
Q2 2024-4.4%-3.5%-12.2%
Q1 2024+12.8%+5.0%+6.9%
Q4 2023-3.0%-0.7%-6.2%
Q3 2023+5.1%+5.4%-5.0%
Q2 2023-4.0%-5.0%-5.8%
Q1 2023-1.5%-7.8%-12.8%
Q4 2022-1.6%-3.2%-11.5%
Q3 2022+5.2%+7.4%+7.4%
Q2 2022+12.1%+6.6%+22.5%
Q1 2022+6.8%+14.2%+33.7%
Q4 2021-19.7%-23.8%-28.1%
Q3 2021-0.9%-4.7%-5.4%
Q2 2021-5.2%-0.5%+4.5%
Q1 2021+4.8%+3.5%+21.5%
Q4 2020+2.0%+22.5%+26.1%
Q3 2020-9.9%-12.9%-18.9%
Q2 2020-20.8%-19.9%-5.1%
Q1 2020+2.8%+5.2%-13.9%
Q4 2019+3.4%-2.1%+7.3%
Q3 2019-2.5%-5.1%-26.3%
Q2 2019-2.5%-7.3%-19.9%
Q1 2019+8.4%+7.9%+3.4%
Q4 2018+7.4%+4.3%+0.3%
Q3 2018+1.0%+6.4%+11.2%
Q2 2018-2.4%-4.5%-7.7%
Q1 2018+3.8%+1.9%-6.3%
Q4 2017+3.6%+3.9%+7.5%
Q3 2017-5.9%-10.7%-18.7%
Q2 2017-7.0%-10.0%-17.7%
Q1 2017-10.4%-12.3%-16.7%
Q4 2016+3.5%+5.4%+19.4%
Q3 2016-1.6%-2.0%-0.9%
Q2 2016-6.7%
Q1 2016+10.3%
Q4 2015-2.2%
Q3 2015-3.4%
Q2 2015+1.2%
Q1 2015-0.2%
Q4 2014-7.7%
Q3 2014-7.9%
Q2 2014-6.0%
Q1 2014+3.4%
Q4 2013+3.0%
Q3 2013-4.7%
Q2 2013-4.5%
Q1 2013+2.2%
Q4 2012+8.4%
Q3 2012+5.0%
Q2 2012-6.6%
Q1 2012+1.9%
Q4 2011-5.5%
Q3 2011-2.9%
Q2 2011+1.7%
Q1 2011+0.3%
Q4 2010+1.2%
Q3 2010-1.9%
Q2 2010-6.0%
Q1 2009-6.8%
Q1 2010+3.1%
Q4 2007-1.2%
Q2 2009-1.2%
Q4 2009-1.2%
Q3 2008+0.5%
Q4 2008+0.5%
Q3 2009+0.5%

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