NYSE$HP

Helmerich & Payne Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Helmerich & Payne reported a net loss for the fiscal fourth quarter of 2020, driven primarily by the continued decline in rig activity due to lower crude oil prices.

Helmerich & Payne reported a net loss of $59 million, or $(0.55) per diluted share, from operating revenues of $208 million for the quarter ended September 30, 2020. The quarter was one of the most challenging in the company's history, but they focused on introducing new commercial models and expanding drilling and digital technology solutions. The company ended the quarter with $577 million in cash and short-term investments and no amounts drawn on its $750 million revolving credit facility.

  • Ended the quarter with $577 million in cash and short-term investments.
  • Expects first quarter of fiscal 2021 North America Solutions rig count to exit at approximately 90 rigs, up over 30% during the quarter.
  • Reported a fiscal fourth quarter net loss of $(0.55) per diluted share; including select items of $0.19 per diluted share.
  • Quarterly North America Solutions operating gross margins decreased $63 million to $39 million sequentially.

Headline financials

Total Revenue

$208M

Previous: $649M-67.9%
EPS (adj)

-$0.74

Previous: $0.38-294.7%
NA revenue days

5.9K

No prior period
NA avg active rigs

54

No prior period
Capital Expenditures

$19.8M

Previous: $54.8M-63.8%
Free Cash Flow

$72.8M

Previous: $142M-48.6%
Net Income

-$59M

Previous: $41.2M-243.2%
Operating Income

-$75.4M

Previous: $39M-293.3%
Gross Profit

-$65.3M

Previous: $82.3M-179.4%
Cash & Equivalents

$488M

Previous: $348M+40.2%
Total Assets

$4.83B

Previous: $5.84B-17.3%
Stock-Based Comp

$4.27M

Previous: $8.83M-51.6%

Revenue & EPS history

Helmerich & Payne · Revenue · Quarterly

$208M

Q4 2020-67.9%vs Q4 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Helmerich & Payne · $173M total across 2 segments · Q4 2020

  • North America Solutions
    $149M
  • International Solutions
    $24M

Forward guidance

Helmerich & Payne provided operational outlook for the first quarter of fiscal year 2021. They anticipate an increase in contracted rigs and customer utilization of performance-based contracts and rig automation software.

Tailwinds

  • Expect North America Solutions operating gross margins to be between $40-$50 million, inclusive of approximately $1 million of contract early termination compensation
  • Expect to exit the quarter at between 88-93 contracted rigs, inclusive of approximately 0-2 contracted rigs generating revenue that could remain idle
  • Expect Offshore Gulf of Mexico rig operating gross margins to be between $5-$7 million
  • Management contracts are also expected to generate approximately $1-2 million in operating income

Headwinds

  • Expect International Solutions operating gross margins to be between $(5)-$(7) million, exclusive of any foreign exchange gains or loses

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 Q4 2020

Historical avgQ4 2020

-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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