Helmerich & Payne, Inc. · NYSE:HP
Helmerich & Payne — Q1 2025 Earnings Presentation
17 slides from Helmerich & Payne's earnings presentation, Feb 6, 2025
Slide 1: Helmerich & Payne, Inc.
Helmerich & Payne, Inc. February 2025 Financial data as of 12/31/2024; other data and year-to-date references are as of 02/05/2025 unless otherwise noted. © 2025 Helmerich & Payne, Inc. All Rights Reserved. 1
Slide 2: Forward-Looking Statements
Helmerich & Payne Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact
Slide 3: H&P – Achieving Global Scale
H&P – Achieving Global Scale Premier U.S. driller 149 contracted rigs Leading presence in Middle East 65 contracted rigs(1)(2) Asset lite offshore business 37 offshore rigs and management contracts Growth market exposure Leading provider of Vaca Muerta rigs (1) An expected amount at March 31, 2025 (
Slide 4: Current Focus for Fiscal 2025
Current Focus for Fiscal 2025 Focus on ▪ Target of > $38k/day in revenue/day NAS Direct ▪ Resilient margin/day is a testament of H&P’s value creation for customers Margin/Day(1) ▪ Reducing capital intensity on revenue generated International ▪ Closed acquisition of KCA Deutag in January ’25 – now wo
Slide 5: H&P is Differentiated
H&P is Differentiated Scale: global leader in onshore drilling(1) ▪ largest driller in U.S.; margin and market share leader ▪ a leading driller in Middle East ▪ a leading driller in South America Evolving the commercial model: performance contracts ▪ ~50% of H&P contracts are performance-based ▪ Per
Slide 6: KCA Deutag Acquisition – Creating a Global Leader
KCA Deutag Acquisition – Creating a Global Leader ✓ now with leading positions in the U.S. and Middle East Enhances scale and geographic diversification ✓ through a robust contract backlog supported by a blue-chip customer base Strengthens cash flow stability and durability ✓ with a focus on balance
Slide 7: H&P’s Commitment to Capital Allocation
H&P’s Commitment to Capital Allocation STRONG FINANCIAL POSITION Commitment to maintaining investment grade credit ratings Promptly delever with free cash flow post close of KCA Deutag acquisition CASH FLOW RETURNS TO SHAREHOLDERS CAPITAL Intends to maintain annual base dividend of $1/share (~
Slide 8: Q1 Fiscal 2025 – Impressive Execution
Q1 Fiscal 2025 – Impressive Execution Quarterly Actuals $ in Millions Average Rig Count for North America Solutions 149 contracted rigs Resilient NAM Solutions rig activity (1) $265.5 North America Solutions Direct Margin International Solutions Direct Margin(1) ($7.6) Offshore Solutions Direct Ma
Slide 9: Q2 Fiscal 2025 Guidance
Q2 Fiscal 2025 Guidance North America International Offshore Solutions Solutions Solutions Legacy Legacy Legacy Legacy Legacy Legacy Q2 Guidance Items H&P KCAD H&P KCAD H&P KCAD Direct Margin1 ($MMs) $240 - $260 N/A $(7) - $(3) $35 - $50 $6 - $8 $18 - $25 Exit Rig Count/Mgmt Contracts 146 - 152 N/A
Slide 10: Financial Strength and Liquidity
Financial Strength and Liquidity Total Liquidity Debt Reduction Goal $1.2 B $400 M Cash and Undrawn In 2025-2026 Credit Facility Credit Rating Backlog(1) BBB+/Baa2 ~$7 B Investment-Grade at Backlog Supported by Large S&P & Moody’s Investment-Grade Customers Q1 Net Capex(2) Dividend Yield $94.4 M ~3%
Slide 11: Appendix Section
Appendix Section © 2025 Helmerich & Payne, Inc. All Rights Reserved. 11
Slide 12: H&P Global Rig Fleet
H&P Global Rig Fleet Rigs Rigs % (1) Available Contracted Contracted (2) North America Solutions 225 148 66% A global leader in onshore drilling International Solutions 153 89 58% Middle East (3)(4) 77 65 84% Largest fleet of super-spec rigs in the U.S. South America 47 16 34% Rest of World 29 8 28%
Slide 13: Debt and Liquidity
Debt and Liquidity Debt Schedule: Type Amount Maturity Interest Rate Term Loan $400 M January 2027 5.66% (1) 3-yr Bond $350 M December 2027 4.65% Credit Rating 5-yr Bond $350 M December 2029 4.85% 10-yr Bond 10-yr Bond $550 M $550 M March 2031 December 2034 2.90% 5.50% BBB+/Baa2 Investment-Grade at
Slide 14: Non-GAAP Reconciliation of Direct Margin
Non-GAAP Reconciliation of Direct Margin Direct margin is considered a non- GAAP metric. We define "direct margin" as operating revenues (less reimbursements) less direct operating expenses (less reimbursements). Direct margin is included as a supplemental disclosure because we believe it is useful
Slide 15: Non-GAAP Reconciliation of Adjusted EBITDA
Non-GAAP Reconciliation of Adjusted EBITDA Adjusted EBITDA and 'Select Items' are considered to be non-GAAP metrics. Adjusted EBITDA is defined as net income(loss) before taxes, depreciation and amortization, gains and losses on asset sales, other income and expense - which includes interest income
Slide 16: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Adjusted EPS Debt-to-cap ratio (in thousands) Debt(1) $2,286,630 (2) Equity $2,946,781 Adjusted EPS and Debt-to-cap 'Select Items' are considered to be non-GAAP ratio 44%metrics. Adjusted EPS is defined as Earnings Per Share excluding the impact of 'sele
Slide 17: Helmerich & Payne, Inc.
Helmerich & Payne, Inc. Thank You for Your Interest in H&P For more information, please visit our website at www.helmerichpayne.com Contact: Dave Wilson, CFA, CPA VP of Investor Relations 918-588-5190, investor.relations@hpinc.com NYSE : HP © 2025 Helmerich & Payne, Inc. All Rights Reserved. 17