NYSE$HP

Helmerich & Payne Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Helmerich & Payne reported fiscal second quarter results with increased North America Solutions operating income and direct margins, while focusing on maintaining returns over market share amidst market uncertainties.

Helmerich & Payne, Inc. reported a net income of $164 million, or $1.55 per diluted share, on operating revenues of $769 million for the quarter ended March 31, 2023. The company's North America Solutions segment saw increased operating income and direct margins. H&P is focused on maintaining profitability amidst market volatility, prioritizing returns over market share, and continuing its capital allocation strategy.

  • Reported fiscal second quarter net income of $1.55 per diluted share, including select items of $0.29 per diluted share.
  • North America Solutions operating income increased $37 million sequentially, with direct margins increasing $36 million to approximately $296 million.
  • North America Solutions segment exited the quarter with 179 active rigs, with revenue per day increasing by approximately $3,200/day or 10% to $36,300/day.
  • Company expects North America Solutions direct margins per day to remain relatively flat or increase slightly in the fiscal third quarter despite contractual churn and cost absorption challenges.

Headline financials

Total Revenue

$769M

Previous: $468M+64.5%
EPS (adj)

$1.26

Previous: -$0.17+841.2%
Capital Expenditures

-$181M

Previous: -$104M-73.7%
Free Cash Flow

-$17.4M

Previous: -$109M+84.1%
Net Income

$164M

Previous: -$4.98M+3396.6%
Operating Income

$175M

Previous: -$22.6M+874.7%
Gross Profit

$319M

Previous: $127M+151.8%
Cash & Equivalents

$160M

Previous: $202M-21.0%
Total Assets

$4.37B

Previous: $4.33B+0.7%
Stock-Based Comp

$7.43M

Previous: $7.95M-6.5%

Revenue & EPS history

Helmerich & Payne · Revenue · Quarterly

$769M

Q2 2023+64.5%vs Q2 2022
Beat estimate in 11 of 14 quarters(79%)
ActualEstimate

Revenue by segment

Helmerich & Payne · $732M total across 2 segments · Q2 2023

  • North America Solutions
    $676M+65.3%
  • International Solutions
    $55.9M+103.8%

Forward guidance

Helmerich & Payne expects North America Solutions direct margins to be between $265-$285 million with an average active rig count of 163-167 rigs during the third quarter of fiscal year 2023. The company expects to exit the quarter between approximately 155-160 contracted rigs. International Solutions direct margins are expected to be between $4-$7 million, and Offshore Gulf of Mexico direct margins to be between $5.5-$7.5 million.

Tailwinds

  • We expect North America Solutions direct margins(2) to be between $265-$285 million with an average active rig count of 163-167 rigs during the quarter
  • We expect to exit the quarter between approximately 155-160 contracted rigs
  • We expect International Solutions direct margins(2) to be between $4-$7 million, exclusive of any foreign exchange gains or losses
  • We expect Offshore Gulf of Mexico direct margins(2) to be between $5.5-$7.5 million

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 Q2 2023

Historical avgQ2 2023

-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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