NYSE$HP

Helmerich & Payne Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Helmerich & Payne's fiscal second quarter results were announced, revealing a net income of $85 million and strategic advancements in both North America and international markets.

Helmerich & Payne reported a fiscal second quarter net income of $85 million, or $0.84 per diluted share, with operating revenues of $688 million. The North America Solutions segment showed increased direct margins, and the company is expanding its presence in the Middle East with a seven-rig tender award from Saudi Aramco.

  • Reported fiscal second quarter net income of $85 million, or $0.84 per diluted share.
  • North America Solutions segment exited the quarter with 152 active rigs and increased direct margins per day.
  • Returned approximately $46 million of capital to shareholders through dividends and share repurchases.
  • Expanding presence in the Middle East with a seven-rig tender award from Saudi Aramco.

Headline financials

Total Revenue

$688M

Previous: $769M-10.6%
EPS

$0.84

Previous: $1.26-33.3%
Capital Expenditures

-$255M

Previous: -$181M-40.4%
Free Cash Flow

-$170M

Previous: -$17.4M-874.1%
Net Income

$84.8M

Previous: $164M-48.3%
Operating Income

$111M

Previous: $175M-36.9%
Gross Profit

$285M

Previous: $319M-10.6%
Cash & Equivalents

$194M

Previous: $160M+21.3%
Total Assets

$4.42B

Previous: $4.37B+1.4%
R&D Expense

$12.9M

No prior period
Stock-Based Comp

$8.43M

Previous: $7.43M+13.4%

Revenue & EPS history

Helmerich & Payne · Revenue · Quarterly

$688M

Q2 2024-10.6%vs Q2 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

Helmerich & Payne expects North America Solutions direct margins to be between $255-$275 million and to exit the quarter between approximately 145-151 contracted rigs. International Solutions direct margins are expected to be between $(2)-$2 million, inclusive of rig preparation and start-up expenses for Saudi Arabia operations. Offshore Gulf of Mexico direct margins are expected to be between $5-$8 million.

Tailwinds

  • North America Solutions direct margins are expected to be between $255-$275 million.
  • Company expects to exit the quarter with 145-151 contracted rigs in North America Solutions.
  • Offshore Gulf of Mexico direct margins are expected to be between $5-$8 million.
  • Gross capital expenditures are now expected to be approximately $500 million.
  • Depreciation for fiscal year 2024 is now expected to be approximately $405 million.

Headwinds

  • International Solutions direct margins are expected to be between $(2)-$2 million, inclusive of rig preparation and start-up expense related to Saudi Arabia operations.
  • Research and development expenses for fiscal year 2024 are now expected to be roughly $37 million.
  • General and administrative expenses for fiscal year 2024 are now expected to be approximately $240 million.
  • Cash taxes to be paid in fiscal year 2024 are still expected to be approximately $150-$200 million.
  • Lower activity is a result of contractual churn and a weaker natural gas environment.

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 2024

Historical avgQ2 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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