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1. Company Snapshot

1.a. Company Description

Helmerich & Payne, Inc., together with its subsidiaries, provides drilling services and solutions for exploration and production companies.The company operates through three segments: North America Solutions, Offshore Gulf of Mexico, and International Solutions.The North America Solutions segment drills primarily in Colorado, Louisiana, Montana, Nevada, New Mexico, North Dakota, Ohio, Oklahoma, Pennsylvania, Texas, Utah, West Virginia, and Wyoming.


It also focuses on developing, promoting, and commercializing technologies designed to enhance the drilling operations, as well as wellbore quality and placement.The Offshore Gulf of Mexico segment has drilling operations in Louisiana and in U.S. federal waters in the Gulf of Mexico.The International Solutions segment conducts drilling operations in Argentina, Bahrain, Colombia, and the United Arab Emirates.


As of September 30, 2021, the company operated a fleet of 236 land rigs in North America; 30 international land rigs; and 7 offshore platform rigs.It also owns, develops, and operates commercial real estate properties.The company's real estate investments include a shopping center comprising approximately 390,000 leasable square feet; and approximately 176 acres of undeveloped real estate located in Tulsa, Oklahoma.


Helmerich & Payne, Inc.was founded in 1920 and is headquartered in Tulsa, Oklahoma.

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1.b. Last Insights on HP

Helmerich & Payne, Inc.'s recent performance was driven by strong Q4 2025 results, including a prudent acquisition of KCA Deutag, which expanded its operating capacity and improved liquidity. The company's exposure to natural gas and geothermal energy markets positions it for long-term growth. Analysts expect higher revenues in the fiscal fourth quarter, with a strong offshore growth offset by international losses and one-time charges. With an average recommendation of "Hold" from thirteen ratings firms, the stock's valuation remains attractive, indicating further upside potential.

1.c. Company Highlights

2. H&P's Fiscal 2025: Strong Q4 Results and Positioning for Future Success

Helmerich & Payne's (H&P) fiscal 2025 fourth-quarter results demonstrated the company's resilience and ability to navigate challenges, with revenues exceeding $1 billion and total direct operating costs of $715 million. The company's net loss was $0.58 per diluted share, and it reported a direct margin of $242 million in its North America Solutions segment, above the midpoint of guidance. The earnings per share (EPS) came in at -$0.01, missing estimates of $0.26. Analysts had projected a revenue growth of 2.7% for the next year, indicating a potential turnaround.

Publication Date: Nov -19

📋 Highlights
  • Strong North America Performance: North America Solutions segment achieved $242 million direct margin, exceeding guidance midpoint
  • International Expansion Momentum: Reactivated 8 FlexRigs in Saudi Arabia, boosting rig count to 24 and positioning as largest active global driller
  • Financial Stability: Generated $1 billion in Q4 revenue with $715 million operating costs, while paying down $210 million on term loan
  • 2026 Guidance: Projects $280–$320 million capital expenditures and $690 million depreciation, targeting improved international margins by year-end
  • Technology & R&D Focus: $25 million allocated for drilling automation and efficiency innovations in 2026, enhancing global operations

Segment Performance

The North America Solutions segment performed well, driven by drilling efficiencies, with average lateral lengths and average drilled footage per day increasing by 5%. The International Land segment saw significant developments, including the export of 8 FlexRigs to Saudi Arabia and the completion of the KCAD acquisition, making H&P the largest active land driller globally. The Offshore Segment provided stable long-horizon revenues, with a direct margin of approximately $35 million.

Financial Position and Guidance

As of September 30, 2025, H&P had cash and short-term investments of approximately $218 million, with total liquidity of around $1.2 billion. The company has made progress in paying down its $400 million term loan, with only $190 million currently outstanding, aiming to pay it off by June next year. For fiscal 2026, H&P expects gross capital expenditures of $280 million to $320 million and depreciation of approximately $690 million.

Valuation and Outlook

With a P/E Ratio of -16.13 and a P/S Ratio of 0.71, the market has factored in the challenges faced by the company. However, the Dividend Yield of 3.77% and Free Cash Flow Yield of 4.41% indicate that the stock may be attractive to income investors. As H&P continues to focus on paying down its term loan and generating free cash flow, the company's efforts to strengthen its balance sheet and drive growth through its commercial strategies and advanced technologies may lead to improved financial performance.

Growth Opportunities

H&P is well-positioned for growth across diversified global markets, driven by its commercial strategies and advanced technologies. The company sees growth potential in the Middle East, with conversations underway with customers in the region, and is leveraging its technology profile outside of the US. With a history of putting rigs to work with IOCs in various geographies, H&P is poised to deliver value in regions like Argentina, Australia, and Europe.

3. NewsRoom

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Fisher Asset Management LLC Sells 91,008 Shares of Helmerich & Payne, Inc. $HP

Dec -03

Source: defenseworld.net

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73,052 Shares in Helmerich & Payne, Inc. $HP Bought by Advisors Asset Management Inc.

Dec -01

Source: defenseworld.net

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My Biggest Energy Call In Years - And Almost Everyone Is Missing It

Nov -25

Source: seekingalpha.com

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Analysts Set Helmerich & Payne, Inc. (NYSE:HP) PT at $24.20

Nov -22

Source: defenseworld.net

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Helmerich & Payne, Inc. (HP) Q4 2025 Earnings Call Transcript

Nov -18

Source: seekingalpha.com

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Helmerich & Payne Q4 Earnings Miss Estimates, Revenues Beat

Nov -18

Source:

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Helmerich & Payne: There Is Still Some Upside

Nov -18

Source: seekingalpha.com

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Helmerich and Payne, Invivyd, Home Depot And Other Big Stocks Moving Lower In Tuesday's Pre-Market Session

Nov -18

Source: benzinga.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.39%)

6. Segments

North America Solutions

Expected Growth: 3.5%

Helmerich & Payne's North America Solutions segment growth of 3.5% is driven by increasing demand for drilling services, improved rig utilization, and rising oil prices. Additionally, the company's strategic investments in digitalization and automation, as well as its focus on operational efficiency, have contributed to the segment's growth.

International Solutions

Expected Growth: 2.8%

Helmerich & Payne's International Solutions segment growth of 2.8% is driven by increasing demand for drilling services in international markets, particularly in the Middle East and Latin America. Additionally, the company's strategic partnerships and investments in digital technologies, such as drilling automation and data analytics, are enhancing operational efficiency and driving revenue growth.

Offshore Gulf of Mexico

Expected Growth: 2.2%

The 2.2% growth in Offshore Gulf of Mexico from Helmerich & Payne, Inc. is driven by increasing demand for oil and gas, rising day rates, and higher utilization of rigs. Additionally, the company's strategic investments in premium rigs and technology enhancements have improved operational efficiency, contributing to the growth.

Other

Expected Growth: 3.2%

Helmerich & Payne's 3.2% growth in 'Other' segment is driven by increased demand for its drilling services, particularly in the international market. The company's strategic expansion into new geographies, improved operational efficiency, and higher utilization rates of its drilling rigs also contributed to this growth.

7. Detailed Products

U.S. Land Drilling

Helmerich & Payne, Inc. provides contract drilling services to oil and gas operators in the United States.

International Land Drilling

The company provides contract drilling services to oil and gas operators in international markets.

Offshore Gulf of Mexico Drilling

Helmerich & Payne, Inc. provides offshore drilling services to oil and gas operators in the Gulf of Mexico.

HPIDC (Drilling Equipment and Services)

The company provides drilling equipment and services to oil and gas operators.

8. Helmerich & Payne, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Helmerich & Payne, Inc. operates in the oil and gas industry, which has a moderate threat of substitutes. While there are alternative energy sources, the demand for oil and gas is still high, and the company's drilling services are essential for the industry.

Bargaining Power Of Customers

Helmerich & Payne, Inc.'s customers are primarily oil and gas companies, which have limited bargaining power due to their dependence on the company's drilling services.

Bargaining Power Of Suppliers

Helmerich & Payne, Inc. relies on suppliers for equipment and materials, but the company's size and scale give it some bargaining power to negotiate prices.

Threat Of New Entrants

The oil and gas industry has high barriers to entry, including significant capital requirements and regulatory hurdles, making it difficult for new entrants to compete with Helmerich & Payne, Inc.

Intensity Of Rivalry

The oil and gas industry is highly competitive, with many established players competing for market share. Helmerich & Payne, Inc. faces intense rivalry from other drilling service providers.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 17.79%
Debt Cost 3.95%
Equity Weight 82.21%
Equity Cost 11.49%
WACC 10.15%
Leverage 21.64%

11. Quality Control: Helmerich & Payne, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Alliance Resource Partners

A-Score: 7.4/10

Value: 8.6

Growth: 4.8

Quality: 7.1

Yield: 10.0

Momentum: 5.5

Volatility: 8.7

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International Seaways

A-Score: 6.7/10

Value: 7.2

Growth: 8.2

Quality: 7.4

Yield: 10.0

Momentum: 2.0

Volatility: 5.7

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Chord Energy

A-Score: 6.5/10

Value: 8.1

Growth: 8.1

Quality: 5.1

Yield: 10.0

Momentum: 1.5

Volatility: 6.0

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Arch Resources

A-Score: 5.1/10

Value: 4.3

Growth: 7.3

Quality: 4.6

Yield: 5.0

Momentum: 3.5

Volatility: 5.7

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Helmerich & Payne

A-Score: 4.7/10

Value: 6.8

Growth: 5.7

Quality: 3.1

Yield: 8.0

Momentum: 1.0

Volatility: 3.7

1-Year Total Return ->

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Patterson-UTI Energy

A-Score: 4.7/10

Value: 8.9

Growth: 4.2

Quality: 3.6

Yield: 7.0

Momentum: 1.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

29.88$

Current Price

29.88$

Potential

-0.00%

Expected Cash-Flows