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Sep 30, 2024
Helmerich & Payne Q4 2024 Earnings Report
Helmerich & Payne reported fourth quarter earnings with net income of $75 million and revenue of $694 million. The company is progressing with the KCA Deutag acquisition and anticipates its closure by the end of the calendar year.
Key Takeaways
Helmerich & Payne's Q4 2024 earnings revealed a net income of $75 million on operating revenues of $694 million. The North America Solutions segment exited the quarter with 151 active rigs. The company is focused on the KCA Deutag acquisition, expecting it to close before the end of 2024.
Net income for the fourth quarter of fiscal year 2024 was $75 million, or $0.76 per diluted share, from operating revenues of $694 million.
The North America Solutions segment exited the fourth quarter with 151 active rigs.
NAS revenue per day was approximately $39,100 with direct margins per day of $19,800 during the quarter.
The company expects the KCA Deutag acquisition to close prior to calendar 2024 year end.
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.comRevenue by Geographic Location
United States Revenue
CapyFin.com Forward Guidance
H&P anticipates exiting the first quarter of fiscal year 2025 with between 147-153 active rigs in the North America Solutions segment. Capital expenditures for fiscal year 2025 are expected to range between $290 and $325 million.
Positive Outlook
- North America Solutions direct margins are expected to be between $260-$280 million.
- Offshore Gulf of Mexico direct margins are expected to be between $7-$9 million.
- The company plans to allocate approximately $100 million to its annual base dividend of $1/share.
- Planned capital expenditures are expected to range between $290 and $325 million, representing a sizeable sequential decrease from H&P's fiscal 2024 spend.
- The anticipated reduction in the planned fiscal 2025 capex relative to fiscal 2024, which we currently believe will be approximately $190 million, is projected to create a significant increase in the Company's projected free cash flow
Challenges Ahead
- International Solutions direct margins are expected to be between $(2)-$2 million, exclusive of any foreign exchange gains or losses.
- Incremental demand for rigs is fairly matched with rigs rolling from existing commitments, leading to a relatively flat rig count.
- NAS direct margins are expected to remain relatively flat.
- Cash taxes for fiscal year 2025 are expected to be approximately $140 to $190 million
- The current capital expenditures expectations do not include any amounts related to the pending KCA Deutag acquisition
Revenue & Expenses
Visualization of income flow from segment revenue to net income