NYSE$HP

Helmerich & Payne Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Helmerich & Payne reported Q4 2022 earnings with increased revenues and net income.

Helmerich & Payne reported a strong fourth quarter with net income of $46 million, or $0.42 per diluted share, from operating revenues of $631 million. The company experienced improved contract economics and increased activity in its North America Solutions segment, leading to higher operating income and direct margins.

  • H&P announced its fiscal 2023 Supplemental Shareholder Return Plan, projected to provide nearly $210 million in dividends.
  • Quarterly North America Solutions operating income increased $35 million sequentially.
  • North America Solutions segment exited the fourth quarter with 176 active rigs and increased revenue per day by approximately $3,000/day.
  • H&P set its fiscal year 2023 capex budget to range between $425 and $475 million.

Headline financials

Total Revenue

$631M

Previous: $344M+83.6%
EPS (adj)

$0.45

Previous: -$0.62+172.6%
Capital Expenditures

$75.9M

Previous: $33M+130.3%
Free Cash Flow

$41.3M

Previous: $13.6M+203.0%
Net Income

$46M

Previous: -$79M+158.2%
Operating Income

$76.8M

Previous: -$97M+179.1%
Gross Profit

$120M

Previous: -$27.3M+539.9%
Cash & Equivalents

$232M

Previous: $918M-74.7%
Total Assets

$4.36B

Previous: $5.03B-13.5%
Stock-Based Comp

$6.82M

Previous: $6.62M+3.0%

Revenue & EPS history

Helmerich & Payne · Revenue · Quarterly

$631M

Q4 2022+83.6%vs Q4 2021
Beat estimate in 11 of 14 quarters(79%)
ActualEstimate

Revenue by segment

Helmerich & Payne · $595M total across 2 segments · Q4 2022

  • North America Solutions
    $552M+88.3%
  • International Solutions
    $42.4M+144.8%

Forward guidance

Helmerich & Payne anticipates a modest 16 rig uplift in its NAS rig count in fiscal 2023 and expects its financial results for the first fiscal quarter of 2023 to follow the improving trend of the past two fiscal quarters. The company expects North America Solutions direct margins to be between $250-$270 million and International Solutions direct margins to be between $7-$10 million for the first quarter of fiscal year 2023.

Tailwinds

  • Strong demand from customers coupled with rollovers of term contracts should continue to drive higher average levels of pricing across the active fleet.
  • North America Solutions direct margins are expected to be between $250-$270 million for the first quarter of fiscal year 2023.
  • International Solutions direct margins are expected to be between $7-$10 million for the first quarter of fiscal year 2023.
  • Company plans to deploy capital in preparation for more substantive growth in the International Solutions segment.
  • Company should have flexibility to be positioned to take advantage of additional investment opportunities and/or further augment shareholder returns through additional supplemental dividends and/or share repurchases.

Headwinds

  • Inflationary and supply chain challenges have been more apparent as of late with a labor-related cost increase just at the end of the fiscal fourth quarter.
  • Fiscal 2023 capex budget reflecting higher levels of maintenance expenditures.
  • Anticipate experiencing additional contractual churn throughout the year.
  • International Solutions direct margins are expected to be reduced by operating costs related to establishing our Middle East hub.
  • Market conditions and industry conditions could impact the company's ability to return capital to shareholders.

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 2022

Historical avgQ4 2022

-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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