NYSE$HP

Helmerich & Payne Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Helmerich & Payne reported mixed results with a decrease in revenue but maintained healthy margins and shareholder returns. The company is navigating uncertainties while focusing on customer value and international growth.

Helmerich & Payne reported a net income of $78 million, or $0.77 per diluted share, on operating revenues of $660 million for the quarter ended September 30, 2023. The company's North America Solutions segment exited the quarter with 147 active rigs. The company anticipates exiting the first quarter of fiscal year 2024 with 150-156 active rigs.

  • Net income for Q4 2023 was $78 million, or $0.77 per diluted share, with operating revenues of $660 million.
  • North America Solutions segment saw a decrease in operating income to $128.5 million due to lower activity levels.
  • International Solutions segment experienced an operating loss of $5.0 million due to increased spending.
  • Company expects to exit the first quarter of fiscal year 2024 with 150-156 active rigs in North America Solutions.

Headline financials

Total Revenue

$660M

Previous: $631M+4.5%
EPS (adj)

$0.69

Previous: $0.45+53.3%
Capital Expenditures

-$114M

Previous: $75.9M-249.7%
Free Cash Flow

$101M

Previous: $41.3M+144.4%
Net Income

$78M

Previous: $46M+69.6%
Operating Income

$93.7M

Previous: $76.8M+22.0%
Gross Profit

$156M

Previous: $120M+30.3%
Cash & Equivalents

$410M

Previous: $232M+76.6%
Total Assets

$4.44B

Previous: $4.36B+1.9%
Stock-Based Comp

$8.57M

Previous: $6.82M+25.7%

Revenue & EPS history

Helmerich & Payne · Revenue · Quarterly

$660M

Q4 2023+4.5%vs Q4 2022
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

H&P expects North America Solutions direct margins to be between $235-$255 million and to exit the quarter between approximately 150-156 contracted rigs. International Solutions direct margins are expected to be between $7-$10 million. Offshore Gulf of Mexico direct margins are expected to be between $3-$7 million. Gross capital expenditures for fiscal year 2024 are expected to be approximately $450 to $500 million.

Tailwinds

  • North America Solutions direct margins are expected to be between $235-$255 million.
  • Company expects to exit the quarter between approximately 150-156 contracted rigs in North America Solutions.
  • International Solutions direct margins are expected to be between $7-$10 million.
  • Offshore Gulf of Mexico direct margins are expected to be between $3-$7 million.
  • Gross capital expenditures are expected to be approximately $450 to $500 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 Q4 2023

Historical avgQ4 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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