Helmerich & Payne, Inc. · NYSE:HP
Helmerich & Payne — Goldman Sachs Global Energy Conference 2012
41 slides from Helmerich & Payne's conference presentation, Jan 9, 2012
Slide 1: Helmerich & Payne, Inc. Goldman Sachs Global Energy Conference
Helmerich & Payne, Inc. Goldman Sachs Global Energy Conference January 10-11, 2012
Slide 2: 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 3: Fleet including announced new FlexRigs under construction
* Includes 40 announced new FlexRigs under construction with customer commitments that are scheduled for completion during fiscal 2012 and fiscal 2013.
Slide 4: Lead Innovation, Expand Market Share, Satisfy Customers, Drive Well Costs Down
Lead Innovation Expand Market Share Satisfy Customers Drive Well Costs Down
Slide 5: H&P's New Build Advantages
H&P’s New Build Advantages We have been improving and honing the process for over 10 years, prompting our assertion that we build a better rig for less Safety is our first priority, followed by a relentless focus on strong execution and performance in the field Exceptional fleet uniformity Extensive
Slide 6: H&P New Builds
H&P New Builds Total of 71 new builds announced in calendar 2011 Delivering new FlexRigs at the rate of four per month As of January 9, 2012, 40 announced new builds left to deliver in fiscal 2012 and fiscal 2013 Encouraging conversations with customers continue regarding additional new build commit
Slide 7: The FlexRig Difference: Key Advantages
The FlexRig Difference: Key Advantages Increased drilling productivity and reliability Variable frequency (AC) drives with increased precision and measurability Computerized electronic driller that more precisely controls weight on bit, rotation and pressure Designed to move quickly from well to wel
Slide 8: Performance is Not Only About Better Rigs
Performance is Not Only About Better Rigs It’s also about: People Safety Experience Training Culture Support Structure Processes Organizational Network Maintenance Supply Chain
Slide 9: A Value Proposition Example – H&P vs. Competitors
A Value Proposition Example – H&P vs. Competitors Estimated Estimated Peer H&P FlexRig3 Conventional Fit-for-purpose Average Average Average 2011 (Spot Market) (Spot Market) (Spot Market) 1. Drilling days 20 11 9 Completion days 3 3 3 Moving days 7 5 3.5 Total rig revenue days per well 30 19 15.5 2.
Slide 10: H&P's Margin Premium
Technology & Quality Service Make a Difference * Does not include the impact of early contract termination revenue. ** Represents weighted-average rig margin per day for PTEN, NBR and UNT through Q3CY11. H&P’s Margin Premium
Slide 11: H&P's Utilization Premium
Technology & Quality Service Make a Difference * Utilization is herein calculated to be average active rigs divided by estimated available marketable rigs during the period. ** Represents estimated average combined utilization for PTEN, NBR and UNT in the Lower 48 through Q3CY11. H&P’s Utilization P
Slide 12: Lower U.S. Land Market Share – Ten Years Ago
As of December 28, 2001 Lower 48 U.S. Land Market Share Active Rig Market Share – Ten Years Ago Note: The above estimates corresponding to U.S. land rig market share are derived from Smith Bits S.T.A.T.S..
Slide 13: Lower U.S. Land Market Share Organically Growing
As of March 16, 2001 As of December 30, 2011 Lower 48 U.S. Land Market Share Organically Growing Active Rig Market Share Note: The above estimates corresponding to U.S. land rig market share are derived from Smith Bits S.T.A.T.S..
Slide 14: Organic U.S. Land Fleet Growth
Organic U.S. Land Fleet Growth * Estimates include existing rigs and announced new build commitments. 296 49
Slide 15: Highest U.S. Activity Level in Company History
Highest U.S. Activity Level in Company History As of 1/9/12
Slide 16: Most Profitable Driller in U.S. Land Business
Most Profitable Driller in U.S. Land Business * PTEN’s operating income includes drilling operations in Canada. ** NBR’s operating income corresponds to its U.S. Lower 48 Land Drilling segment.
Slide 17: Five-Year Relative Shareholder Return
Five-Year Relative Shareholder Return Source: Yahoo! Finance as of January 6, 2012
Slide 18: [LOGO]
[LOGO]
Slide 19: H&P's Global Rig Fleet
H&P’s Global Rig Fleet * Estimates include existing rigs and announced new build commitments.
Slide 20: Activity as of January 9, 2012
Activity as of January 9, 2012 Rigs Working/ Contracted 233 7 22 262 40 302 Rigs Available 256 9 26 291 40 331 % Contracted 91% 78% 85% 90% U.S. Land Offshore International Land Total FlexRig Construction Total Fleet * * Includes new FlexRig commitments announced through November 17, 2011.
Slide 21: H&P's U.S. Land Operations
H&P’s U.S. Land Operations Industry rig counts and spot pricing remain strong. Driven primarily by incremental new builds, we expect total revenue days in the U.S. land segment to increase by approximately five percent from the fourth fiscal quarter of 2011 to the first fiscal quarter of 2012. Quart
Slide 22: H&P's U.S. Land Fleet Activity
H&P’s U.S. Land Fleet Activity ** Includes completed new builds that were waiting on customers and which generated revenue but did not generate revenue days. * Active rigs on term (in blue) generated both revenue and revenue days.
Slide 23: Leading U.S. Unconventional Driller
(273 H&P Contracted Land Rigs as of 1/9/12*) Leading U.S. Unconventional Driller * Includes announced new FlexRigs with customer commitments scheduled for completion in fiscal 2012 and fiscal 2013.
Slide 24: H&P's Growing Exposure to Oil & Liquids
H&P’s Growing Exposure to Oil & Liquids Estimated proportion of H&P’s active U.S. Land rigs by primary hydrocarbon target.
Slide 25: H&P Global Fleet Under Term Contract
H&P Global Fleet Under Term Contract
Slide 26: H&P's Offshore Operations
H&P’s Offshore Operations Seven of the Company’s nine offshore platform rigs remain active, including two under long-term contracts. The number of revenue days during the first fiscal quarter of 2012 is now expected to decrease by approximately one percent as compared to the fourth fiscal quarter of
Slide 27: H&P's International Land Operations
H&P’s International Land Operations Of the 26 rigs assigned to international operations, 22 are currently active or contracted, including ten under long-term contracts. Total revenue days during the first fiscal quarter of 2012 are expected to increase by approximately six percent sequentially from
Slide 28: H&P's International Land Operations Rig Fleet Status
H&P’s International Land Operations Active Contracted Idle Total Long-term Contracts Argentina 5 4 9 4 Bahrain 4 4 4 Colombia 5 1 6 2 Ecuador 4 1 5 Tunisia 2 2 Total 20 2 4 26 10 Rig Fleet Status (as of January 9, 2012) An additional FlexRig is in transit from the U.S. to Colombia and is expected to
Slide 29: [LOGO]
[LOGO]
Slide 30: Market Trends Favor H&P
Market Trends Favor H&P Drilling today involves more complex well designs directed at oil and liquid rich plays. Customers continue to focus on efficiency and technology to achieve lower total well costs. Major customers are increasingly proactive in terms of safety and environmental protection. The
Slide 31: The New Build Replacement Cycle Continues
The New Build Replacement Cycle Continues Industry is undersupplied with high performance AC drive rigs With reportedly over 150 mechanical rigs retired in 2011, it is increasingly clear that older rigs are not well suited for this more complex drilling environment High-efficiency AC drive new build
Slide 32: Total Industry Available U.S. Land Fleet (by Power Type)
Total Industry Available U.S. Land Fleet (by Power Type) Note: The above estimates corresponding to the available rig fleet in the U.S. are derived from multiple sources including Rig Data, Smith Bits, and corporate filings.
Slide 33: Rigs Active in the U.S. Land Market (By Power Type)
Rigs Active (~1,900) in the U.S. Land Market Note: The above estimates corresponding to rig activity are derived from multiple sources including Rig Data, Smith Bits, and corporate filings. (By Power Type)
Slide 34: H&P's Lead in U.S. High-Efficiency Rig Offering
H&P’s Lead in U.S. High-Efficiency Rig Offering Note: The above estimates corresponding to U.S. lower 48 AC Drive fleets and new build commitments are derived from Rig Data and corporate filings.
Slide 35: AC Drive U.S. Rig Market Share
AC Drive U.S. Rig Market Share (~500 Rigs) Note: The above estimates corresponding to market share are derived from multiple sources including Rig Data, Smith Bits, and corporate filings.
Slide 36: H&P U.S. Land Fleet by Power Type
H&P U.S. Land Fleet by Power Type* * Includes New Build Commitments.
Slide 37: Economics Shift Activity Towards Oil Drilling
Economics Shift Activity Towards Oil Drilling
Slide 38: Increasing Focus on More Difficult Drilling
Increasing Focus on More Difficult Drilling
Slide 39: Increasing Focus on More Difficult Drilling
Increasing Focus on More Difficult Drilling
Slide 40: EnergyPoint Research Customer Satisfaction Index
Source: EnergyPoint Research, Inc. Customer Satisfaction Index 10 = “Highly Satisfied”, 1 = “Highly Dissatisfied”
Slide 41: End of Document
End of Document
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