Loading...
•
Dec 31, 2023
Helmerich & Payne Q1 2024 Earnings Report
Helmerich & Payne's Q1 2024 results reflected strong operational and financial performance despite market volatility, with increased North America Solutions margins and progress in international expansion.
Key Takeaways
Helmerich & Payne reported a net income of $95 million, or $0.94 per diluted share, on operating revenues of $677 million for the quarter ended December 31, 2023. The North America Solutions segment experienced increased revenue and direct margins per day. The company is expanding internationally with new rig awards in the Middle East.
North America Solutions segment exited the quarter with 151 active rigs and increased revenue per day by approximately $1,000 to $38,300.
Net income for the quarter was $95 million, or $0.94 per diluted share.
North America Solutions operating income increased $16 million sequentially, with direct margins increasing $17 million to $256 million.
Company received preliminary notification for an award of seven super-spec rigs in the Middle East.
Helmerich & Payne
Helmerich & Payne
Helmerich & Payne Revenue by Segment
Helmerich & Payne Revenue by Geographic Location
Revenue by Segment
North America Solutions Revenue
CapyFin.comInternational Solutions Revenue
CapyFin.comOffshore Gulf of Mexico Revenue
CapyFin.comOther Revenue
CapyFin.comRevenue by Geographic Location
United States Revenue
CapyFin.comArgentina Revenue
CapyFin.comBahrain Revenue
CapyFin.comAustralia Revenue
CapyFin.comColombia Revenue
CapyFin.comUnited Arab Emirates Revenue
CapyFin.comOther foreign Revenue
CapyFin.com Forward Guidance
H&P anticipates exiting the second quarter of fiscal year 2024 between 154-159 active rigs in the North America Solutions segment. They expect North America Solutions direct margins to be between $255-$275 million. International Solutions direct margins are expected to be between $1-$3 million, and Offshore Gulf of Mexico direct margins are expected to be between $4-$7 million.
Positive Outlook
- North America Solutions direct margins are expected to be between $255-$275 million.
- Company anticipates exiting the second quarter of fiscal year 2024 between 154-159 active rigs in the North America Solutions segment.
- Gross capital expenditures are still expected to be approximately $450 to $500 million.
- Depreciation for fiscal year 2024 is still expected to be approximately $390 million.
- Research and development expenses for fiscal year 2024 are still expected to be roughly $30 million.
Challenges Ahead
- International Solutions direct margins are expected to decline sequentially due to one less rig operating in both Argentina and Colombia and expenses related to preparing rigs for export.
- Cash taxes to be paid in fiscal year 2024 are still expected to be approximately $150-$200 million.
- Expects churn to continue in the March quarter as E&P budgets are being reset in a relatively weaker commodity price environment, particularly on the natural gas side.
- Outlook for a lower level of crude oil production growth in the U.S. in 2024, combined with the recent volatility in commodity prices.
- Conditions highlight the continued need to remain focused on our NAS margins
Revenue & Expenses
Visualization of income flow from segment revenue to net income