Helmerich & Payne Provides Company Update
September 05 2019 - 8:59AM
Business Wire
Helmerich & Payne, Inc. (“H&P” or the “Company”) (NYSE:
HP) announces its quarterly dividend and provides an operational
and capital expenditures update.
On September 4, 2019, the Board of Directors of H&P held a
meeting and declared a quarterly cash dividend of $0.71 per share
on its common stock, payable on December 2, 2019, to stockholders
of record at the close of business on November 11, 2019.
U.S. Land Operations:
Quarter-to-date, the Company’s average U.S. Land rig count is
approximately 206 with 200 active as of September 4, 2019. This
level of activity is consistent with H&P’s previously provided
guidance, which stated the Company expects quarterly revenue days
to decrease by approximately 5%-6% sequentially representing a
roughly 6%-7% decrease in the average number of active rigs.
H&P expects to exit the quarter at the low end of its
previously guided range of 193-203 rigs.
International Land Operations:
The Company is currently in the process of determining the
impacts, if any, on its business and financial position in
Argentina related to two recent governmental decrees that impact
both the exchange rate and currency controls. During the most
recent quarter ended June 30, 2019, approximately 8% of the
Company’s consolidated revenue was generated from its international
operations of which approximately 88% was from the Company’s
Argentine operations. H&P currently has 16 rigs operating in
Argentina, of which eight are under term contract with YPF S.A.
Capex for Fiscal 2019
H&P previously stated expectations for its fiscal 2019
capital expenditures to be at the low end of its $500-$530 million
guidance range. The Company now expects total capital expenditures
to be $5-$15 million below the low end of that guidance range with
the final outcome dependent on the timing of certain procurement
activities in late fiscal 2019 and early fiscal 2020.
Capex for Fiscal 2020
The Company is proposing a preliminary capital expenditure
budget for fiscal 2020 of approximately $300 million, which
includes $35 million related to adding additional super-spec
walking capabilities in U.S. Land and select international
super-spec upgrades should demand for such rigs develop in fiscal
2020. Formal approval of the fiscal 2020 capital expenditure budget
by the Board of Directors is expected to occur during the Company’s
first fiscal quarter of 2020.
About Helmerich & Payne, Inc.:
Founded in 1920, Helmerich & Payne, Inc. 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 operating performance, 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, 2018 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/20190905005561/en/
IR Contact: Dave Wilson, Director of Investor Relations
918-588-5190 investor.relations@hpinc.com Media Contact:
Leslie Agee, Manager of Communications 918-588-2610
Leslie.agee@hpinc.com
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