Helmerich & Payne, Inc. (“H&P” or the “Company”) (NYSE:
HP) today provided an update on its capital allocation policy as
well as its capital expenditure and SG&A cost outlook for the
remainder of fiscal 2020. The Company also announced the timing of
its upcoming second fiscal 2020 quarterly conference call and
webcast.
As part of the Company’s commitment to long-term shareholder
returns and at the same time maintaining its strong financial
position, consistent with its previous announcement on March 23,
2020 that it was reviewing its capital allocation policy, the
Company announced it intends to reduce the future quarterly
dividends to $0.25 per share. The declaration and amount of any
future dividends, and any future increase or decrease, is at the
discretion of the Board of Directors and subject to the Company’s
financial condition, results of operations, cash flows and other
factors the Board deems relevant. H&P also reaffirms its
commitment to pay the previously announced $0.71 per share dividend
on June 1, 2020, to stockholders of record at the close of business
on May 11, 2020.
“I am proud of how our people have responded in these
challenging times,” said John Lindsay, President and Chief
Executive Officer. “H&P recognizes the uncertainties and
concerns caused by the COVID-19 pandemic. The Company is an
‘essential critical infrastructure’ company as defined by the
Department of Homeland Security and the Cybersecurity and
Infrastructure Security Agency and as such, continues to operate
rigs and technology solutions, providing valuable services to our
customers in support of the global energy infrastructure. The
health and safety of all H&P stakeholders - our employees,
customers, and vendors, remain a top priority at the Company.
Accordingly, H&P has implemented additional policies and
procedures to protect the well-being of our stakeholders and to
minimize the impact of COVID-19 on our ongoing operations and began
working remotely where possible since March 13. In difficult times,
our Company will continue to make operationally sound and fiscally
conservative decisions that will continue to support H&P’s
long-term success.”
In light of the uncertainties related to COVID-19 and the
significant negative impact that a weakened commodity price
environment have had on the outlook for the industry rig count,
H&P has preliminarily reassessed certain portions of its cost
structure, including SG&A and capital expenditures, for the
remaining six months of fiscal year 2020. Gross capital
expenditures are now expected to be approximately $210 to $230
million for the full fiscal year 2020 and are still expected to
include amounts for walking rig conversions backed by term
contracts and certain in-process corporate projects, including
information technology initiatives. Second half fiscal 2020 capital
expenditures are expected to consist primarily of maintenance
capital expenditures at an annualized level of approximately $1
million per average active rig. Asset sales include reimbursements
for lost and damaged tubulars and sales of other used drilling
equipment that offset a portion of gross capital expenditures, and
are now expected to be approximately $25 to $35 million for full
fiscal 2020. SG&A costs, excluding any future one-time items,
for the full fiscal year 2020 are now expected to be approximately
$185 million. Additional guidance information and details are
expected to be made available during the Company’s upcoming
earnings conference call.
The Company’s fiscal second quarter 2020 conference call will
take place on Friday, May 1, 2020, at 11:00 a.m. (ET) with John
Lindsay, President and CEO; Mark Smith, Senior Vice President and
CFO; and Dave Wilson, Director of Investor Relations. Investors may
listen to the conference call either by phone or audio webcast.
What:
Helmerich & Payne, Inc.’s Fiscal
Second Quarter 2020 Earnings Release. Other material developments
may also be discussed.
When:
11:00 a.m. ET (10:00 a.m. CT), Friday, May
1, 2020
Via Phone:
Domestic: 866-342-8591 Access Code:
Helmerich
International: 203-518-9713 Access Code:
Helmerich
Via Internet:
Log on to http://www.hpinc.com then click
on “INVESTORS” and then click on “Event Calendar” to find the event
and the link to the webcast.
Questions:
Dave Wilson, investor.relations@hpinc.com,
918-588-5190
If you are unable to listen during the live webcast, the call
will be archived for 365-days on Helmerich & Payne, Inc.’s
website at http://www.hpinc.com under “Event Calendar,” which can
be accessed through the “INVESTORS” section of the website.
About Helmerich & Payne, Inc.:
Founded in 1920, Helmerich & Payne, Inc. (H&P) (NYSE:
HP) is committed to delivering industry leading drilling
productivity and reliability. H&P operates with the highest
level of integrity, safety and innovation to deliver superior
results for our customers and returns for shareholders. Through its
subsidiaries, the Company designs, fabricates and operates
high-performance drilling rigs in conventional and unconventional
plays around the world. H&P also develops and implements
advanced automation, directional drilling and survey management
technologies. For more information, visit www.hpinc.com.
Forward Looking Statements
This release contains forward-looking statements within the
meaning of the securities laws. Forward-looking statements can be
identified by the fact that they do not relate strictly to
historical or current facts. They often include words or variation
of words such as "expect," "look forward to,” "anticipate,"
"intend," "plan," "believe," "seek," "estimate," "will," "project"
or words of similar meaning or other similar expressions.
Forward-looking statements provide management's current
expectations or predictions of future conditions, events or
results. All statements that address events or developments that we
expect or anticipate will occur in the future are forward-looking
statements. They may include estimates of revenues, market share,
income, effective tax rate, earnings per share, cost savings,
capital expenditures, dividends, share repurchases, liquidity,
capital structure or other financial items, descriptions of
management's plans or objectives for future operations, products or
services, or descriptions of assumptions underlying any of the
above. All forward-looking statements speak only as of the date
they are made and reflect the Company's good faith beliefs,
assumptions and expectations, but they are not guarantees of future
performance or events. Furthermore, the Company disclaims any
obligation to publicly update or revise any forward-looking
statement to reflect changes in underlying assumptions, factors, or
expectations, new information, data or methods, future events or
other changes, except as required by law.
By their nature, forward-looking statements are subject to risks
and uncertainties that could cause actual results to differ
materially from those suggested by the forward-looking statements.
Factors that might cause such differences include, but are not
limited to a variety of economic, competitive and regulatory
factors, many of which are beyond the Company's control, that are
described in our Annual Report on Form 10-K for the fiscal year
ended September 30, 2019 in the sections entitled "Risk Factors”
and “Management’s Discussion & Analysis of Financial Condition
and Results of Operations” and additional factors we may describe
from time to time in other filings with the Securities and Exchange
Commission.
You may get such filings for free at our website at
https://www.hpinc.com/. You should understand that it is not
possible to predict or identify all such factors and, consequently,
you should not consider any such list to be a complete set of all
potential risks or uncertainties.
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version on businesswire.com: https://www.businesswire.com/news/home/20200331005843/en/
Dave Wilson, Director of Investor Relations 918-588-5190
investor.relations@hpinc.com
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