Helmerich & Payne, Inc. · NYSE:HP
Helmerich & Payne — Investor Presentation (June 2013)
23 slides from Helmerich & Payne's investor presentation, Jun 17, 2013
Slide 1: Forward-looking Statements
Statements within this presentation are “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, and are based on current expectations and assumptions that are subject to risks and uncertainties. All statements other than statements of hi
Slide 2: The U.S. Land Drilling Market Today
The U.S. Land Drilling Market Today Our operational outlook for the third fiscal quarter remains unchanged. Oil price resiliency will probably accommodate gradual growth in activity as we move through 2013. Customers are deliberate with their budget dollars and increasingly discriminating with the s
Slide 3: H&P Activity as of June 14, 2013
H&P Activity as of June 14, 2013 Rigs Working/ Contracted 246 246 0 8 24 278 Rigs Available 302 267 35 9 29 340 1 1 342 % Contracted 81% 92% 0% 89% 83% 82% U.S. Land AC Drive FlexRigs SCR Fleet Offshore International Land Total FlexRig Construction (1) Other AC Construction (2) Total Fleet (1) (2) I
Slide 4: H&P's U.S. Land Fleet Activity
H&P’s U.S. Land Fleet Activity (1) (2) (1) Active rigs on term (in blue) generated both revenue and revenue days. (2) Includes completed new builds pending delivery and not generating revenue days.
Slide 5: H&P's Pad Capable Fleet
H&P’s Pad Capable Fleet As of 6/14/13, H&P had a total of 113 pad capable FlexRigs, all of which are AC drive rigs. In addition, we continue to add new pad capable FlexRigs and have customer interest in additional pad drilling system upgrades for existing FlexRigs. We have drilled over 5,000 wells o
Slide 6: H&P's New Build Program Continues
H&P’s New Build Program Continues We believe that the rig replacement cycle will continue for several years. H&P plans to continue a build cadence of two rigs per month through the rest of the calendar year, increasing our fiscal 2013 capex estimate to $890 million. We have the flexibility to build
Slide 7: The Replacement Cycle Continues
The Replacement Cycle Continues As of October 2008 (Peak) (~1,900 Active Rigs in the U.S. By Power Type) As of May 2013 (~1,600 Active Rigs in the U.S. By Power Type) Note: The above estimates corresponding to rig activity are derived from multiple sources including Rig Data, Smith Bits, and corpora
Slide 8: H&P Continues to Capture Market Share
H&P Continues to Capture Market Share As of October 2008 (Peak) (~1,900 Active Rigs in the U.S.) As of May 2013 (~1,600 Active Rigs in the U.S.) Note: The above estimates corresponding to market share are derived from Rig Data. PDS’ market share includes both PDS and Grey Wolf rigs. Additionally, th
Slide 9: H&P Continues to Capture Market Share
H&P Continues to Capture Market Share Note: The above estimates corresponding to market share are derived from Rig Data. PDS’ market share includes both PDS and Grey Wolf rigs. Additionally, the drawworks capacity of each land rig included in the above analysis was greater than 600 horsepower. As of
Slide 10: Changes in Lower U.S. Land Rig Count
Changes in Lower 48 U.S. Land Rig Count * PDS’ active rig count includes both PDS and Grey Wolf rigs.
Slide 11: U.S. Land Active Rig Count
Count Ig |: U.S. Land Active Ri 2,400 qunoo Bia Ha eBeeny AuepenD Boe 8 a = = &- 380s —PTEN } Lee ete (Auedwiog Ag) s6ty annoy eBeseny AueuenD e10z zoz broz o1oz 600z 8002 z00z 9002 Calendar Year
Slide 12: U.S. Land Average Daywork Margins
U.S. Land Average Daywork Margins(1) (1) Does not include the impact of early contract termination revenue.
Slide 13: Record Profits During Industry Slowdown
Record Profits During Industry Slowdown ** NBR’s operating income corresponds to its U.S. Drilling and Rig Services segment. * PTEN’s operating income includes drilling operations in Canada.
Slide 14: Return on Equity
Return on Equity * The corresponding ROE values for the selected companies exclude certain extraordinary, non-recurring charges.
Slide 15: Land Drilling Market Valuations
Land Drilling Market Valuations Source: Thomson Financial as of June 13, 2013.
Slide 16: Additional References
ry mee Additional References
Slide 17: Leading U.S. Unconventional Driller
Leading U.S. Unconventional Driller * Includes one announced new FlexRig with a customer commitment. (247 H&P Contracted Land Rigs as of 6/14/13*)
Slide 18: H&P Global Fleet Under Term Contract
H&P Global Fleet Under Term Contract Segment Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY13 FY13 FY14 FY14 FY14 FY14 FY15 U.S. Land 158.6 148.2 135.4 115.4 102.7 90.3 79.8 International Land 16.2 16.1 14.6 12.0 11.0 11.0 9.3 Offshore 2.0 2.0 2.0 2.0 1.5 0.9 0.0 Total 176.8 166.3 152.0 129.5 115.2 102.2 89.1 Number of Ri
Slide 19: H&P's International Land Operations Rig Fleet Status
Active Idle Total Long-term Contracts Argentina 6 3 9 6 Bahrain 3 3 3 Colombia 6 1 7 3 Ecuador 5 1 6 Tunisia 2 2 1 U.A.E. 2 2 2 Total 24 5 29 15 H&P’s International Land Operations Rig Fleet Status (as of June 14, 2013) (1) 14 of 16 FlexRigs, included in the international fleet of 29 rigs, are under
Slide 20: Favorable Market Trends for FlexRigs
Favorable Market Trends for FlexRigs AC drive rigs replacing SCR and mechanical rigs More customers high-grading their fleets Increasing well complexity Expectation to drill more wells with fewer rigs Focus on drilling efficiency, technology and safety
Slide 21: Increasing Focus on More Difficult Drilling
Increasing Focus on More Difficult Drilling
Slide 22: Unconventional Plays Shaping Landscape
Unconventional Plays Shaping Landscape Well Complexity is increasing: Technology solutions that provide safe, environmentally sound and efficient operations are required by contractors to be competitive Extended reach laterals progressively longer Multi-well pad drilling gaining acceptance in more a
Slide 23: End of Document
End of Document
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