NYSE$HP

Helmerich & Payne Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Helmerich & Payne reported a net loss for Q3 2021 due to operating losses across most segments, though North America Solutions showed improvement. Revenue increased compared to the previous quarter, and the company maintained a strong cash position.

Helmerich & Payne reported a net loss of $56 million, or $(0.52) per diluted share, on operating revenues of $332 million for the quarter ended June 30, 2021. The company's North America Solutions segment saw increased revenues and improved operating gross margins, but overall results were still negatively impacted by costs associated with reactivating rigs. The company expects activity and pricing to continue to increase over the next quarter.

  • North America Solutions segment exited Q3 with 121 active rigs, up over 10% during the quarter.
  • The company ended the quarter with $558 million in cash and short-term investments and no amounts drawn on its $750 million revolving credit facility, culminating in approximately $1.3 billion in available liquidity.
  • Quarterly North America Solutions operating gross margins increased $11 million to $75 million sequentially, as revenues increased by $31 million to $281 million.
  • The company reported a fiscal third quarter net loss of $(0.52) per diluted share; including select items of $0.05 per diluted share.

Headline financials

Total Revenue

$332M

Previous: $317M+4.7%
EPS (adj)

-$0.57

Previous: -$0.34-67.6%
Capital Expenditures

-$49.2M

Previous: -$121M+59.3%
Free Cash Flow

-$105M

Previous: -$167M+37.1%
Net Income

-$55.6M

Previous: -$45.6M-21.8%
Operating Income

-$77.4M

Previous: -$57.6M-34.4%
Gross Profit

$75.3M

Previous: $111M-32.0%
Cash & Equivalents

$371M

Previous: $426M-13.1%
Total Assets

$4.5B

Previous: $4.96B-9.4%
Stock-Based Comp

$6.96M

Previous: $11.1M-37.3%

Revenue & EPS history

Helmerich & Payne · Revenue · Quarterly

$332M

Q3 2021+4.7%vs Q3 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Helmerich & Payne · $296M total across 2 segments · Q3 2021

  • North America Solutions
    $281M+10.5%
  • International Solutions
    $15.3M-32.0%

Forward guidance

Helmerich & Payne provided operational outlook for the fourth quarter of fiscal year 2021.

Tailwinds

  • North America Solutions operating gross margins are expected to be between $72-$82 million.
  • The company expects to exit the quarter at between 127-132 contracted rigs in North America Solutions.
  • Offshore Gulf of Mexico operating gross margins are expected to be between $7-$9 million.
  • Gross capital expenditures are now expected to at the lower end of our previous guidance range of $85 to $105 million range.
  • Ongoing asset sales are still expected to total approximately $25 million in fiscal year 2021.

Headwinds

  • International Solutions operating gross margins are expected to be relatively flat between $(2)-$0 million, exclusive of any foreign exchange gains or losses.
  • Depreciation and amortization expenses are still expected to be approximately $425 million.
  • Research and development expenses for fiscal year 2021 are now expected to be roughly $20 to 25 million.
  • Selling, general and administrative expenses for fiscal year 2021 are still expected to be approximately $160 million.
  • The company reported a net loss of $56 million, or $(0.52) per diluted share, from operating revenues of $332 million for the quarter ended June 30, 2021.

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 Q3 2021

Historical avgQ3 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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