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Mar 31, 2024
Helmerich & Payne Q2 2024 Earnings Report
Helmerich & Payne's fiscal second quarter results were announced, revealing a net income of $85 million and strategic advancements in both North America and international markets.
Key Takeaways
Helmerich & Payne reported a fiscal second quarter net income of $85 million, or $0.84 per diluted share, with operating revenues of $688 million. The North America Solutions segment showed increased direct margins, and the company is expanding its presence in the Middle East with a seven-rig tender award from Saudi Aramco.
Reported fiscal second quarter net income of $85 million, or $0.84 per diluted share.
North America Solutions segment exited the quarter with 152 active rigs and increased direct margins per day.
Returned approximately $46 million of capital to shareholders through dividends and share repurchases.
Expanding presence in the Middle East with a seven-rig tender award from Saudi Aramco.
Revenue by Segment
Forward Guidance
Helmerich & Payne expects North America Solutions direct margins to be between $255-$275 million and to exit the quarter between approximately 145-151 contracted rigs. International Solutions direct margins are expected to be between $(2)-$2 million, inclusive of rig preparation and start-up expenses for Saudi Arabia operations. Offshore Gulf of Mexico direct margins are expected to be between $5-$8 million.
Positive Outlook
- North America Solutions direct margins are expected to be between $255-$275 million.
- Company expects to exit the quarter with 145-151 contracted rigs in North America Solutions.
- Offshore Gulf of Mexico direct margins are expected to be between $5-$8 million.
- Gross capital expenditures are now expected to be approximately $500 million.
- Depreciation for fiscal year 2024 is now expected to be approximately $405 million.
Challenges Ahead
- International Solutions direct margins are expected to be between $(2)-$2 million, inclusive of rig preparation and start-up expense related to Saudi Arabia operations.
- Research and development expenses for fiscal year 2024 are now expected to be roughly $37 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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