NYSE$HP

Helmerich & Payne Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Helmerich & Payne's Q1 2024 results reflected strong operational and financial performance despite market volatility, with increased North America Solutions margins and progress in international expansion.

Helmerich & Payne reported a net income of $95 million, or $0.94 per diluted share, on operating revenues of $677 million for the quarter ended December 31, 2023. The North America Solutions segment experienced increased revenue and direct margins per day. The company is expanding internationally with new rig awards in the Middle East.

  • North America Solutions segment exited the quarter with 151 active rigs and increased revenue per day by approximately $1,000 to $38,300.
  • Net income for the quarter was $95 million, or $0.94 per diluted share.
  • North America Solutions operating income increased $16 million sequentially, with direct margins increasing $17 million to $256 million.
  • Company received preliminary notification for an award of seven super-spec rigs in the Middle East.

Headline financials

Total Revenue

$677M

Previous: $720M-5.9%
EPS (adj)

$0.97

Previous: $1.11-12.6%
Capital Expenditures

-$136M

Previous: -$96M-42.1%
Free Cash Flow

-$41.2M

Previous: $1.12M-3788.6%
Net Income

$95.2M

Previous: $97.1M-2.0%
Operating Income

$123M

Previous: $144M-14.4%
Gross Profit

$273M

Previous: $290M-6.0%
Cash & Equivalents

$214M

Previous: $229M-6.6%
Total Assets

$4.42B

Previous: $4.41B+0.2%
R&D Expense

$8.61M

No prior period
Stock-Based Comp

$7.67M

Previous: $8.27M-7.3%

Revenue & EPS history

Helmerich & Payne · Revenue · Quarterly

$677M

Q1 2024-5.9%vs Q1 2023
Beat estimate in 11 of 14 quarters(79%)
ActualEstimate

Revenue by segment

Helmerich & Payne · $628M total across 2 segments · Q4 2023

  • North America Solutions
    $575M+4.1%
  • International Solutions
    $53.2M+25.5%

Forward guidance

H&P anticipates exiting the second quarter of fiscal year 2024 between 154-159 active rigs in the North America Solutions segment. They expect North America Solutions direct margins to be between $255-$275 million. International Solutions direct margins are expected to be between $1-$3 million, and Offshore Gulf of Mexico direct margins are expected to be between $4-$7 million.

Tailwinds

  • North America Solutions direct margins are expected to be between $255-$275 million.
  • Company anticipates exiting the second quarter of fiscal year 2024 between 154-159 active rigs in the North America Solutions segment.
  • Gross capital expenditures are still expected to be approximately $450 to $500 million.
  • Depreciation for fiscal year 2024 is still expected to be approximately $390 million.
  • Research and development expenses for fiscal year 2024 are still expected to be roughly $30 million.

Headwinds

  • International Solutions direct margins are expected to decline sequentially due to one less rig operating in both Argentina and Colombia and expenses related to preparing rigs for export.
  • Cash taxes to be paid in fiscal year 2024 are still expected to be approximately $150-$200 million.
  • Expects churn to continue in the March quarter as E&P budgets are being reset in a relatively weaker commodity price environment, particularly on the natural gas side.
  • Outlook for a lower level of crude oil production growth in the U.S. in 2024, combined with the recent volatility in commodity prices.
  • Conditions highlight the continued need to remain focused on our NAS margins

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 2024

Historical avgQ1 2024

-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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