Helmerich & Payne, Inc. · NYSE:HP
Helmerich & Payne — Merger or Acquisition (July 2024)
18 slides from Helmerich & Payne's merger presentation, Jul 25, 2024
Slide 1: Creating a Global Leader in Onshore Drilling: H&P to Acquire KCA Deutag
© 2024 Helmerich & Payne, Inc. All Rights Reserved. 1 Creating a Global Leader in Onshore Drilling July 25, 2024 H&P to Acquire KCA Deutag
Slide 2: Forward-Looking Statements
© 2024 Helmerich & Payne, Inc. All Rights Reserved. 2 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 histor
Slide 3: Creating a Global Leader in Onshore Drilling
© 2024 Helmerich & Payne, Inc. All Rights Reserved. 3 Creating a Global Leader in Onshore Drilling Enhances Scale and Geographic Diversification, Now with Leading Positions in the U.S. and Middle East Strengthens Cash Flow Stability and Durability through a Robust Contract Backlog, Supported by a Bl
Slide 4: Transaction Overview
© 2024 Helmerich & Payne, Inc. All Rights Reserved. 4 Transaction Overview Purchase Price & Transaction Structure Financial Benefits Clear Path to Completion • Transaction has been [unanimously] approved by both companies’ Boards of Directors • Expected to close in the fourth calendar quarter of 202
Slide 5: KCA Deutag Business Overview
© 2024 Helmerich & Payne, Inc. All Rights Reserved. 5 Offshore Contract Services Manufacturing and Engineering Land Operations Business Overview • Core Middle East Countries: Saudi Arabia, Oman and Kuwait • 63 rigs in Core Middle East Countries drive 71% of Operating EBITDA, stemming from 89% utiliz
Slide 6: The Right Transaction at the Right Time
© 2024 Helmerich & Payne, Inc. All Rights Reserved. 6 Financial restructuring; significantly reduce debt and debt service costs Disposal of Nigeria operations and exit from Russia operations KCAD acquires Saipem’s primary onshore operations – Saudi Arabia, UAE, Congo Heavy debt load; significant Oma
Slide 7: Enhanced Geographic Footprint Levered to the Most Resilient Basins
© 2024 Helmerich & Payne, Inc. All Rights Reserved. 7 225 88 80 393 260 203 185 184 105 92 80 71 69 67 Pro Forma H&P Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Enhanced Geographic Footprint Levered to the Most Resilient Basins 296 Core Land Rigs USA 225 Core Middle East (
Slide 8: Resilient Middle East Rig Demand
© 2024 Helmerich & Payne, Inc. All Rights Reserved. 8 343 350 358 295 231 266 287 308 363 398 2017A 2018A 2019A 2020A 2021A 2022A 2023A 2024E 2025E 2026E Resilient Middle East Rig Demand Middle East Rig Demand Historical Brent Price ($ / Bbl) Source: Capital IQ as of July 23, 2024; Middle East Rig D
Slide 9: Acquisition Creates a Globally Diversified Company with Material Scale
© 2024 Helmerich & Payne, Inc. All Rights Reserved. 9 Acquisition Creates a Globally Diversified Company with Material Scale ~$0.9Bn ~$1.2Bn North America Solutions International Solutions Offshore Solutions Other 2023 Operating EBITDA Notes: (1) Based on Calendar Year 2023 pro forma Onshore Drillin
Slide 10: Strengthened Cash Flow Stability and Visibility
© 2024 Helmerich & Payne, Inc. All Rights Reserved. 10 21% 20% 59% H&P NAS 14% H&P Int'l 10% KCAD Land 42% KCAD Offshore 33% KCAD Manufacturing 1% KCAD Land $3.0 KCAD Offshore $2.3 KCAD Manufacturing $0.1 H&P NAS $1.0 H&P Int'l $0.7 Strengthened Cash Flow Stability and Visibility Robust Combined Bac
Slide 11: Accelerating International Growth with Attractive Returns
© 2024 Helmerich & Payne, Inc. All Rights Reserved. 11 ~5.4x 12.2x 12.2x 9.0x Peer 1 Peer 2 Peer 3 2025E 2026E 2027E 2028E Implied Transaction ROIC (% ) H&P Illustrative WACC (%) Accelerating International Growth with Attractive Returns Relevant Metrics Illustrative Transaction Return on Invested Ca
Slide 12: Financing Plan Allows for Rapid Deleveraging Toward Long-Term Targets
© 2024 Helmerich & Payne, Inc. All Rights Reserved. 12 1.7x 2024E 2025E 2026E 2027E $350+ $900+ $1,600+ 2025E 2026E 2027E Financing Plan Allows for Rapid Deleveraging Toward Long-Term Targets • H&P to refinance KCAD’s existing debt at a lower rate • Pre-payable financing and staggered maturity profi
Slide 13: Conservative Balance Sheet and Return of Capital to Shareholders
© 2024 Helmerich & Payne, Inc. All Rights Reserved. 13 H&P Remains Committed to a Conservative Balance Sheet and Return of Capital to Shareholders • Rating agencies expected to affirm investment grade ratings • Promptly delever with free cash flow • Net leverage of ~1.7x at closing with focus on rea
Slide 14: Common Core Values with a Culture of Care
© 2024 Helmerich & Payne, Inc. All Rights Reserved. 14 Common Core Values with a Culture of Care ✓ Culture of C.A.R.E. ✓ Focused on Safety and Wellbeing of Employees ✓ Customer-Centric Approach ✓ Sustainability Commitment ✓ Operational and Financial Excellence Actively C.A.R.E. Service Attitude Inno
Slide 15: Measured Approach to Integration
© 2024 Helmerich & Payne, Inc. All Rights Reserved. 15 North America Solutions International Solutions Offshore Solutions Other Measured Approach to Integration Key Areas of Focus Preliminary Operating Segments (1) Prioritize Strong Execution and Customer Support Optimize Geographical Footprint Buil
Slide 16: H&P of Tomorrow
© 2024 Helmerich & Payne, Inc. All Rights Reserved. 16 H&P of Tomorrow Builds on 100+ Years of Successful Operations Culture of C.A.R.E. & Continuous Improvement U.S. Focused Unconventional Land Rig Fleet Leading Drilling Technology Portfolio GOM Focused Offshore Rig Operations Internationally Focus
Slide 17: Creating a Global Leader in Onshore Drilling
© 2024 Helmerich & Payne, Inc. All Rights Reserved. 17 Creating a Global Leader in Onshore Drilling Enhances Scale and Geographic Diversification, Now with Leading Positions in the U.S. and Middle East Strengthens Cash Flow Stability and Durability through a Robust Contract Backlog, Supported by a B
Slide 18: Thank You for Your Interest in H&P
© 2024 Helmerich & Payne, Inc. All Rights Reserved. 18 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
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