Helmerich & Payne, Inc. · NYSE:HP
Helmerich & Payne — Investor Presentation (September 2020)
17 slides from Helmerich & Payne's investor presentation, Sep 1, 2020
Slide 1: Helmerich & Payne, Inc. September 2020
HELMERICH & PAYNE, INC. September 2020 Financial data as of 6/30/2020; other data as of 7/28/2020 unless otherwise noted.
Slide 2: Forward-Looking Statements
Forward-Looking Statements Forward Looking Statements This presentation contains forward-looking statements within the meaning of securities laws. All statements other than statements of historical facts included in this presentation, including without limitation, statements regarding our future fin
Slide 3: H&P Today
H&P Today Founded in 1920, H&P is the industry’s most trusted drilling partner. Committed to operational excellence and conservative financial discipline, H&P is the recognized industry leader in drilling solutions as well as technological innovation. We are a global drilling solutions provider
Slide 4: Why H&P in Current Market Conditions?
Why H&P in Current Market Conditions? U.S. Land industry leader with dominant position Important to be adaptable in volatile markets; H&P moved quickly to respond to these unprecedented market conditions Reduced annual dividends by approximately $200 million Projected to reduce fixed operati
Slide 5: H&P's Winning Strategy
H&P’s Winning Strategy Execute as the dominant U.S. land drilling solutions provider Continue to lead industry in digital technology and innovation bringing value to customers Grow international business opportunistically Maintain and build upon a solid financial foundation Adapt to changi
Slide 6: Differentiated from Land Drilling Peers
Differentiated from Land Drilling Peers Strategic advantages – innovation, economies of scale, operational efficiency, financial flexibility and risk reduction Changing the commercial model – H&P provides distinctive value to customers Uniform design of FlexRig fleet best and highly trained
Slide 7: Evolving Commercial Model
Evolving Commercial Model H&P has a long track record of providing value to customers, the contract model terms must evolve to ensure a reasonable rate of return Current dayrate model is not designed to adequately compensate for value being derived in well cost savings, wellbore placement and pr
Slide 8: H&P Drilling Solutions
H&P Drilling Solutions Focusing on Highest Variability and Greatest Value H&P has focused on the 3 areas that provide the most value in drilling a well, but have the greatest variability Drilling Rig Provider – FlexRig fleet, market leader Directional Solutions Provider – H&P’s digital technolog
Slide 9: Drilling and Digital Technology Solutions
Drilling and Digital Technology Solutions H&P’s offerings create compelling value opportunities for E&Ps Our customers want to generate higher returns on their capex spend, H&P’s drilling solutions can assist by: Improving wellbore quality and placement – can increase customer’s revenue potential
Slide 10: Value Proposition
Value Proposition Wellbore Quality and Placement H&P & Customer partnership can: • Optimize drilling economics to customer specifications • Drill a less tortuous well • Increase confidence that wellbore is appropriately spaced Lower Cost H&P & Customer partnership can: • Drill an efficient well, red
Slide 11: Enabling Industry Profitability
Enabling Industry Profitability Automating the Wellbore Manufacturing Process Throughout history, the introduction of automation into the manufacturing process has increased consistency, reliability, and quality and decreased risks and costs, driving higher returns and profitability. The automobile
Slide 12: H&P Global Rig Fleet
H&P Global Rig Fleet Rigs Rigs % Available Contracted(1) Contracted U.S. Land 262 64 24% Super-Spec FlexRigs 234 62 26% Upgradeable AC FlexRigs 8 0 0% Other AC Style FlexRigs 20 0 2 0 10% 0 International Land 32 6 19% Argentina 20 1 5% Bahrain 3 3 100% U.A.E 2 2 100% Colombia 7 0 00 0% 0 Offshore 8
Slide 13: Conservative Capital Structure
Conservative Capital Structure H&P Built to Withstand Volatile Markets Capital Employed ($MM) Liquidity Available ($MM) $1,500 240% HP Total Liquidity Available Liquidity As A % Of Debt 200% $1,200 160% PTEN $900 120% NBR $600 80% $300 40% PDS $0 0% $0 $1,000 $2,000 $3,000 $4,000 $5,000 HP PTEN NBR
Slide 14: Solid Financial Foundation
Solid Financial Foundation H&P Positioned to be Strong Through the Cycle Total-Debt-to-Total-Capitalization Ratio1 Debt Maturity Schedule (In Millions) $1,400 HP $1,200 $1,000 $344 $775 PTEN $800 $368 $303 $525 $600 PDS $400 $753 $600 $484 $500 NBR $200 $63 $400 $350 $139 $154 $100 $0 0% 10% 20% 30%
Slide 15: ESG - Social Responsibility
ESG - Social Responsibility Environment Social Governance Drilling Solutions: Safety: Governance Structure: Utilizing walking/skidding rigs for multi- Health and safety are fundamental principles H&P does not maintain a classified Board of well programs (which minimizes the and company-wide co
Slide 16: H&P Investment Thesis
H&P Investment Thesis Industry Leader as a Drilling Solutions Provider Largest, Uniform and Most Capable FlexRig Fleet Consistent Operational Excellence (Safety, Customer Satisfaction, Reliability) Technology and Innovation Leader Financial Position and Strength Differentiated Business P
Slide 17: Helmerich & Payne, Inc.
Helmerich & Payne, Inc. Thank you for your interest in H&P. Our stock is traded on the NYSE, ticker symbol - HP For more information please visit our website at www.hpinc.com or contact: Dave Wilson, CFA, CPA Director of Investor Relations 918-588-5190, investor.relations@hpinc.com
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