Helmerich & Payne (HP) Tops Q3 EPS by 11c, provides operational outlook

Helmerich & Payne (NYSE: HP) reported Q3 EPS of $0.88, $0.11 better than the analyst estimate of $0.77. Revenue for the quarter came in at $695.14 million versus the consensus estimate of $670.78 million.

Operational Outlook for the Fourth Quarter of Fiscal Year 2024

North America Solutions:

We expect North America Solutions direct margins(2) to be between $260-$280 million
We expect to exit the quarter between approximately 147-153 contracted rigs

International Solutions:

We expect International Solutions direct margins(2) to be between $(2)-$2 million, exclusive of any foreign exchange gains or losses
Projected International Solutions direct margins(2) for the fourth fiscal quarter are inclusive of approximately $6-$8 million of rig preparation and start-up expense related to our Saudi Arabia operations, higher than previous guidance as some costs shifted from the third fiscal quarter into the fourth fiscal quarter

Offshore Gulf of Mexico:

We expect Offshore Gulf of Mexico direct margins(2) to be between $6-$8 million

Other Estimates for Fiscal Year 2024

Gross capital expenditures are still expected to be approximately $500 million;

Ongoing asset sales that include reimbursements for lost and damaged tubulars and sales of other used drilling equipment offset a portion of the gross capital expenditures, and are now expected to total approximately $45 million in fiscal year 2024

Depreciation for fiscal year 2024 is now expected to be approximately $400 million
Research and development expenses for fiscal year 2024 are now expected to be roughly $40 million
General and administrative expenses for fiscal year 2024 are now expected to be approximately $250 million
Cash taxes to be paid in fiscal year 2024 are still expected to be approximately $150-$200 million

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

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