Helmerich & Payne Q1 2025 Earnings Report
Key Takeaways
Helmerich & Payne reported net income of $55 million on operating revenues of $677 million for the quarter ended December 31, 2024. The company completed the acquisition of KCA Deutag, expanding its international presence and offshore business. NAS segment maintained its industry leading position with a financial performance and a stable rig count reflecting the value proposition we are providing to customers.
Net income was $55 million, or $0.54 per diluted share.
Operating revenues were $677 million.
Completed the acquisition of KCA Deutag, increasing international rig count and offshore business.
NAS segment exited the quarter with 148 active rigs.
Helmerich & Payne
Helmerich & Payne
Helmerich & Payne Revenue by Segment
Forward Guidance
The company provided guidance for the second quarter of fiscal year 2025, including direct margins for North America Solutions, International Solutions, and Offshore Solutions. Gross capital expenditures for fiscal year 2025 are expected to be approximately $360-$395 million.
Positive Outlook
- North America Solutions direct margins to be between $240-$260 million.
- International Solutions direct margin contribution from KCA Deutag's legacy operations to be between $35-$50 million.
- Offshore Solutions direct margin contribution from H&P's legacy operations to be between $6-$8 million.
- Offshore Solutions direct margin contribution from KCA Deutag's legacy operations to be between $18-$25 million.
- Other operations direct margin contribution to be between $4-$6 million.
Challenges Ahead
- North America Solutions to exit the quarter between approximately 146-152 contracted rigs.
- International Solutions direct margin contribution from H&P's legacy operations to be between $(7)-$(3) million, exclusive of any foreign exchange gains or losses.
- International Solutions to collectively exit the quarter between approximately 88-94 contracted rigs, of which 71-77 are expected to be generating revenue.
- Offshore Solutions to collectively exit the quarter between approximately 35-39 management contracts and contracted platform rigs.
- Cash taxes to be paid in fiscal year 2025 are now expected to be approximately $190-$240 million