NYSE$HP

Helmerich & Payne Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Helmerich & Payne's Q1 2022 results reflected increased activity in North America and strategic investments.

Helmerich & Payne reported a net loss of $51 million, or $(0.48) per diluted share, on operating revenues of $410 million for the quarter ended December 31, 2021. The company experienced increased activity levels in North America Solutions, with operating gross margins increasing $15 million sequentially. Strategic investments, such as ADNOC Drilling, contributed to the company's financial position.

  • North America Solutions segment exited the quarter with 154 active rigs, up over 20% during the quarter.
  • North America Solutions operating gross margins increased $15 million sequentially to $84 million.
  • The Company reported a fiscal first quarter net loss of $(0.48) per diluted share, including select items of $(0.03) per diluted share.
  • During the fiscal first quarter H&P repurchased 2.5 million shares for approximately $60 million.

Headline financials

Total Revenue

$410M

Previous: $246M+66.3%
EPS (adj)

-$0.45

Previous: -$0.82+45.1%
Capital Expenditures

-$44M

Previous: -$14M-214.7%
Free Cash Flow

-$95.4M

Previous: -$84.4M-13.0%
Net Income

-$51.4M

Previous: -$70.4M+27.1%
Operating Income

-$42.6M

Previous: -$93.2M+54.3%
Gross Profit

$109M

Previous: $46.3M+135.2%
Cash & Equivalents

$234M

Previous: $374M-37.4%
Total Assets

$4.39B

Previous: $4.73B-7.1%
Stock-Based Comp

$6.22M

Previous: $7.45M-16.5%

Revenue & EPS history

Helmerich & Payne · Revenue · Quarterly

$410M

Q1 2022+66.3%vs Q1 2021
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Helmerich & Payne · $378M total across 2 segments · Q1 2022

  • North America Solutions
    $341M+68.8%
  • International Solutions
    $37.2M+253.3%

Forward guidance

Helmerich & Payne provided operational outlook for the second quarter of fiscal year 2022, including expectations for North America Solutions, International Solutions, and Offshore Gulf of Mexico.

Tailwinds

  • North America Solutions operating gross margins are expected to be between $100-$115 million.
  • Exit the quarter at between 165-175 contracted rigs in North America Solutions.
  • Gross capital expenditures are still expected to be approximately $250 to $270 million.
  • Ongoing asset sales are now expected to total approximately $45 million in fiscal year 2022.
  • Depreciation and amortization expenses are still expected to be approximately $405 million.

Headwinds

  • North America Solutions operating gross margins include approximately $11 million in estimated reactivation costs.
  • International Solutions operating gross margins are expected to be between $(2)-$0 million, exclusive of any foreign exchange gains or losses.
  • Research and development expenses for fiscal year 2022 are now expected to be roughly $27 million.
  • Selling, general and administrative expenses for fiscal year 2022 are still expected to be approximately $170 million.
  • International markets rig count in the Middle East is expected to decline due to two unexpected rig releases.

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 2022

Historical avgQ1 2022

-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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro