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Sep 30, 2023

Helmerich & Payne Q4 2023 Earnings Report

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.

Key Takeaways

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.

Total Revenue
$660M
Previous year: $631M
+4.5%
EPS
$0.69
Previous year: $0.45
+53.3%
Gross Profit
$156M
Previous year: $120M
+30.3%
Cash and Equivalents
$410M
Previous year: $232M
+76.6%
Free Cash Flow
$101M
Previous year: $41.3M
+144.4%
Total Assets
$4.44B
Previous year: $4.36B
+1.9%

Helmerich & Payne

Helmerich & Payne

Helmerich & Payne Revenue by Segment

Helmerich & Payne Revenue by Geographic Location

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.

Positive Outlook

  • 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.

Revenue & Expenses

Visualization of income flow from segment revenue to net income