Helmerich & Payne, Inc. · NYSE:HP
Helmerich & Payne — Investor Presentation (June 2020)
22 slides from Helmerich & Payne's investor presentation, Jun 2, 2020
Slide 1: Meetings with Investors
HELMERICH & PAYNE, INC. Meetings with Investors June 2020 Financial data as of 3/31/2020; other data as of 4/30/2020 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: COVID-19
COVID-19 The health and safety of all H&P stakeholders - our employees, customers, and vendors - remain a top priority H&P has implemented additional policies and procedures designed to protect the well-being of our stakeholders and to minimize the impact of COVID-19 on our ongoing operations. • Mob
Slide 4: 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 5: 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 Intention to reduce annual dividends by approximately $200 million Reduction of planned
Slide 6: H&P's Winning Strategy
H&P’s Winning Strategy Today’s Focus Points 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 foundat
Slide 7: Differentiated from Land Drilling Peers
Differentiated from Land Drilling Peers Leading U.S. market share – ~24%* of U.S. land fleet, ~37%* of super-spec fleet Changing the commercial model – H&P provides distinctive value to customers Uniform design of FlexRig fleet best and highly trained workforce lower maintenance cost, high
Slide 8: H&P Global Rig Fleet
H&P Global Rig Fleet Rigs Rigs % Available Contracted(1) Contracted U.S. Land 262 86 33% Super-Spec FlexRigs 234 83 35% Upgradeable AC FlexRigs 8 1 13% Other AC Style FlexRigs 20 2 10% International Land 32 10 31% Argentina(2) 20 5 25% Bahrain 3 3 100% U.A.E 2 2 100% Colombia 7 0 0% Offshore 8 5 63%
Slide 9: Leading U.S. Unconventional Driller
Leading U.S. Unconventional Driller (Positioned To Respond To Customer Needs) H&P Has 262 Total FlexRigs Across The U.S. FlexRigs Are Uniquely Designed To Meet The (~90% Of Which Are Super-Spec Rigs) Ever-Growing Complexities Of U.S. Land Drilling 13 Average Lateral Length (ft) of Lower 48 Wells 9,0
Slide 10: 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 does not always adequately compensate for value being derived in well cost savings and productivity gains Unde
Slide 11: HPT – Helmerich & Payne Technologies
HPT – Helmerich & Payne Technologies Adding Value Through Automation: Wellbore Quality, Accuracy & Efficiency Motive’s Bit Guidance System® helps to enable drilling of higher quality wellbores with a scalable, repeatable, data driven platform approach MagVAR solution improves surveying accuracy
Slide 12: MagVAR Survey Correction
MagVAR Survey Correction Wellbore Accuracy Optimal Wellbore Placement Increases the reservoir volume exposed to stimulation Improves hydraulic communication, reducing parent/child interference Provides greater confidence wells are within boundaries Reduces collision risk for future in-fill d
Slide 13: Wellbore Quality Matters
Wellbore Quality Matters Tortuosity Adversely Affects Overall Well Economics Tortuosity is the amount of bends and twists in a well often referred to as doglegs; unwanted tortuosity leads to • Detrimental Well Economics • Increases Pipe Fatigue and Downhole Tool Wear and Failure • Compromises Qualit
Slide 14: AutoSlide
AutoSlideSM The Next Evolutionary Step in Drilling Automation Uses machine learning and automation to interface with FlexRig control systems to perform slide drilling automatically via computer control (vs. traditional human control) Single button execution - fully autonomous sliding with no hum
Slide 15: Value Driven Automation
Value Driven AutomationTM Converting Art to Science H&P’s Autonomous Drilling PlatformTM optimizes and automates total well execution H&P leading industry’s technological advancements Uses machine learning to drive economic-based decision making in real time Automates sliding with single but
Slide 16: HPT Leading Automation
HPT Leading Automation Recent Technical Papers at the IADC/SPE International Drilling Conference Actual experiences regarding quality and placement and their effect on the total cost of ownership over the life of the well SPE Paper # Title Subject Matter Directional Drilling Automation: Human Factor
Slide 17: Opportunistic International Growth
Opportunistic International Growth Important line of business for H&P • ~12% of company’s total active rig count • Adds diversification, long-term contracting and growth opportunities, especially with unconventional shale growth • Additional growth potential for H&P’s digital technology offerings
Slide 18: Conservative Capital Structure
Conservative Capital Structure (H&P Built to Withstand Volatile Markets) Capital Employed ($MM) Liquidity Available ($MM) $1,800 240% Total Liquidity Available HP $1,500 200% $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 PDS Total Debt C
Slide 19: Solid Financial Foundation
Solid Financial Foundation (H&P Positioned to be Strong Through the Cycle) Total-Debt-to-Total-Capitalization Ratio1 Debt Maturity Schedule $1,400 HP $1,200 $1,000 PTEN $345 $775 $800 $368 $303 $525 $600 PDS $400 $712 $575 $600 $66 $500 NBR $200 $400 $350 $240 $221 $100 $0 0% 10% 20% 30% 40% 50% 60%
Slide 20: ESG - Social Responsibility
ESG - Social Responsibility Environment Social Governance Drilling Solutions: Safety: Governance Structure: Utilizing walking/skidding rigs for Rig Managers receive in-field H&P does not maintain a classified Board multi-well programs (which minimizes Coaching from Safety Leadership of Directo
Slide 21: H&P Investment Thesis
H&P Investment Thesis Industry Leader as a Drilling Solutions Provider • Largest, Uniform and Most Capable Fleet • Consistent Operational Excellence (Safety, Customer Satisfaction, Reliability) • Technology and Innovation Leader • Financial Position and Strength • Differentiated Business Partner
Slide 22: 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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