Helmerich Payne (HP) Tops Q3 EPS by 9c, Beats on Revenues

Helmerich Payne (NYSE: HP) reported Q3 EPS of ($0.21), $0.09 better than the analyst estimate of ($0.30). Revenue for the quarter came in at $499 million versus the consensus estimate of $457.47 million.

Operational Outlook for the Fourth Quarter of Fiscal 2017

U.S. Land Operations:

• Quarterly revenue days expected to increase by approximately 3% to 5% sequentially
• Average rig revenue per day expected to be slightly over $21,000 (excluding any impact from early termination revenue)
• Average rig expense per day expected to be roughly $13,700

Offshore Operations:

• Quarterly revenue days expected to decrease by approximately 10% sequentially
• Average rig margin per day expected to be approximately $12,500
• Management contracts expected to generate approximately $4 million in operating income

International Land Operations:

• Adjusted quarterly revenue days expected to be roughly unchanged sequentially, resulting in approximately 13 average rigs generating revenue days during the quarter
• Average rig margin per day expected to be roughly $7,500

Other Estimates for Fiscal 2017

• FY17 capital expenditures are now estimated at roughly $400 million, and potentially higher depending on the timing of expenditures related to upgrading opportunities. This increase from our prior estimate of $350 million is due to more rigs being upgraded than initially anticipated and higher levels of maintenance capital expenditures as a result of more rigs working than previously estimated. The revised estimate excludes the acquisition of MOTIVE Drilling Technologies, Inc.
• FY17 general and administrative expenses are now expected to be approximately $150 million primarily due to the acquisition of MOTIVE Drilling Technologies, Inc., and to a higher level of resources required to support a much higher active rig count than originally anticipated.

For earnings history and earnings-related data on Helmerich Payne (HP) click here.

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