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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's recent performance was driven by strategic expansion and growth initiatives. The company's acquisition of KCA Deutag bolstered its operating capacity and exposure to natural gas and geothermal energy markets. Strong Q4 2025 results and growing market share across segments also contributed positively. However, Q1 2026 earnings revealed a loss, pressured by North America weakness and a $103M non-cash impairment charge. Analysts currently rate the stock as "Hold" with a target price of $24.20, according to MarketBeat.com.

1.c. Company Highlights

2. Helmerich & Payne's Q1 Earnings: A Resilient Performance

Helmerich & Payne reported revenues of $1 billion and adjusted EBITDA of $230 million for the fiscal first quarter, exceeding expectations. The company's EPS was -$0.15, missing estimates of $0.12. The financial performance was supported by resilient results in North America Solutions and Offshore Solutions segments, as well as stronger-than-anticipated performance in International Solutions. The company's direct margins exceeded the midpoint of their guidance in all operating regions.

Publication Date: Feb -11

📋 Highlights
  • Record Adjusted EBITDA:: Exceeded $230 million driven by strong performance across all segments, including $100 million in planned Saudi reactivations.
  • Deleveraging Progress:: Repaid $260 million of the $400 million term loan, with $1.2 billion liquidity (including $931 million credit facility) to support 2026 repayment ahead of schedule.
  • Saudi Reactivations:: 6 of 7 rigs to restart by mid-2026, targeting $45 million quarterly direct margins in International Solutions post-stabilization.
  • Cost Efficiency:: SG&A reduced by $50 million since the merger, with $100 million divestment line of sight for portfolio optimization.
  • FlexRig Margins:: Improved profitability via Jafurah gas field operations, exceeding P50 performance in FlexRobotics deployments.

Operational Highlights

The company's operational performance was marked by meaningful margin improvement from their FlexRig fleet operating in the Jafurah gas field. The rig reactivation expenses, which were timed favorably in the first quarter, will be more heavily reflected in the second quarter. Trey Adams, President, noted that the current macro environment is cautiously positive, with operators remaining focused on disciplined capital deployment and prioritizing returns over volume expansion.

Financial Position and Outlook

Kevin Vann, Chief Financial Officer, highlighted the company's strong progress on the deleveraging front, having paid off $260 million on their $400 million term loan as of the end of January. The company's total liquidity is approximately $1.2 billion, including $269 million in cash and short-term investments, and $931 million in revolving credit facility. For the second quarter, the company expects direct margins in North American Solutions to range between $205 million to $230 million.

Valuation and Growth Prospects

The company's current valuation metrics indicate a P/E Ratio of -10.78, a P/B Ratio of 1.31, and an EV/EBITDA of 8.87. Analysts estimate next year's revenue growth at 3.8%. With a focus on deleveraging and maintaining investment-grade status, the company is confident in repaying their term loan ahead of schedule. The company's vision for the future emphasizes international growth and expansion, particularly in the Middle East and North Africa.

Segment Performance and Future Expectations

The International Solutions segment is expected to exceed $45 million in direct margin per quarter once the reactivations are fully ramped up. In North America, the company is seeing a mix of customers, with some being disciplined and sticking to their plans, while others are more sensitive to commodity prices. The company is optimistic about the back half of the year, but is not chasing market share and is committed to maintaining 45-50% direct margins.

3. NewsRoom

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Helmerich & Payne: Not Time To Dive In Quite Yet

Feb -19

Source: seekingalpha.com

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H&P Releases 2025 Sustainability Report

Feb -17

Source: businesswire.com

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Helmerich & Payne Q1 Earnings Call Highlights

Feb -08

Source: defenseworld.net

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Helmerich & Payne Q1 Earnings Miss Estimates, Revenues Beat

Feb -06

Source: zacks.com

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Helmerich & Payne (HP) Q1 Earnings: How Key Metrics Compare to Wall Street Estimates

Feb -06

Source: zacks.com

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Helmerich & Payne, Inc. (HP) Q1 2026 Earnings Call Transcript

Feb -05

Source: seekingalpha.com

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Helmerich & Payne (HP) Reports Q1 Loss, Beats Revenue Estimates

Feb -04

Source: zacks.com

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Helmerich & Payne, Inc. Announces Fiscal First Quarter Results

Feb -04

Source: businesswire.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

Stock-Card
International Seaways

A-Score: 7.0/10

Value: 6.3

Growth: 8.2

Quality: 6.9

Yield: 10.0

Momentum: 4.5

Volatility: 6.0

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Alliance Resource Partners

A-Score: 6.6/10

Value: 7.4

Growth: 4.7

Quality: 5.9

Yield: 10.0

Momentum: 2.5

Volatility: 9.0

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Chord Energy

A-Score: 6.5/10

Value: 7.7

Growth: 8.1

Quality: 5.0

Yield: 10.0

Momentum: 2.0

Volatility: 6.0

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Patterson-UTI Energy

A-Score: 4.8/10

Value: 9.0

Growth: 4.2

Quality: 3.6

Yield: 7.0

Momentum: 1.5

Volatility: 3.3

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Stock-Card
Helmerich & Payne

A-Score: 4.7/10

Value: 7.2

Growth: 4.8

Quality: 2.8

Yield: 8.0

Momentum: 2.0

Volatility: 3.7

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Arch Resources

A-Score: 4.5/10

Value: 2.4

Growth: 7.3

Quality: 4.2

Yield: 5.0

Momentum: 2.5

Volatility: 5.7

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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

35.63$

Current Price

35.63$

Potential

-0.00%

Expected Cash-Flows