Helmerich & Payne, Inc. · NYSE:HP
Helmerich & Payne — Investor Presentation (February 2021)
20 slides from Helmerich & Payne's investor presentation, Feb 9, 2021
Slide 1: Helmerich & Payne, Inc. February 2021
HELMERICH & PAYNE, INC FEBRUARY 2021 Financial data as of 12/31/2020; other data as of 2/09/2021 unless otherwise noted.
Slide 2: 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 financial position, business s
Slide 3: H&P Today
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 H&P TODAY in drilling solutions as well as technological innovation. H&P operates in 3 segments (% of Revenue) o North America Solutio
Slide 4: Why H&P in Current Market Conditions?
WHY H&P IN CURRENT MARKET CONDITIONS? Industry leader in U.S. land drilling with a dominant position Leading evolution of commercial model in order to receive fair compensation for value delivered At the forefront of drilling automation creating compelling value opportunities for customers Strong ba
Slide 5: H&P's Winning Strategy
H&P’S WINNING STRATEGY GLOBAL DRILLING SOLUTIONS PROVIDER 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 f
Slide 6: Evolving Commercial Model
EVOLVING COMMERCIAL MODEL H&P has a long track record of providing value Under current industry norms, incorporating to customers, the contract model terms must more services and solutions into a rig day- evolve to ensure a reasonable rate of return rate model is a losing proposition in the long- te
Slide 7: Differentiated from Land Drilling Peers
DIFFERENTIATED FROM LAND DRILLING PEERS Strategic advantages – innovation, economies of scale, operational efficiency, financial flexibility and risk reduction Changing the commercial model – H&P provides distinctive value to customers Uniform design of FlexRig fleet • Best and highly trained workfo
Slide 8: H&P's Offerings Create Compelling Value Opportunities for E&Ps
H&P’S OFFERINGS CREATE COMPELLING VALUE OPPORTUNITIES FOR E&PS
Slide 9: H&P's Drilling Solutions
H&P’S DRILLING SOLUTIONS FOCUSING ON HIGHEST VARIABILITY AND GREATEST VALUE H&P has focused on the 3 areas that provide the most value in drilling a well, but have the greatest variability • Drilling Rig Provider – FlexRig fleet, market leader • Directional Service Provider – H&P’s digital technolog
Slide 10: H&P Drilling Solutions: Addressing Industry Challenges Through Automation
H&P DRILLING SOLUTIONS ADDRESSING INDUSTRY CHALLENGES THROUGH AUTOMATION Oil and gas industry is still heavily dependent on human decision making to design, execute, and optimize oil and gas extraction. INDUSTRY CHALLENGE H&P AUTOMATION SOLUTION Human Decisions and Execution = Art Converts Art to Sc
Slide 11: Drilling and Digital Technology Solutions
DRILLING AND DIGITAL TECHNOLOGY SOLUTIONS OUR CUSTOMERS WANT TO GENERATE HIGHER RETURNS ON THEIR CAPEX SPEND, H&P’S DRILLING SOLUTIONS CAN ASSIST BY: Improving wellbore quality and placement – increases customers revenue potential Lowering cost – decreases cost of ownership over the life of the well
Slide 12: Value Proposition
VALUE PROPOSITION WELLBORE QUALITY LOWER COST CONSISTENCY AT AND PLACEMENT REDUCED RISK • Optimize drilling economics • Drill an efficient well, reducing • Provide reliability, repeatable results to customer specifications non-productive time • Enables de-manning of 3rd-party • Drill a less tortuous
Slide 13: Enabling Industry Profitability
ENABLING INDUSTRY PROFITABILITY AUTOMATING THE WELLBORE MANUFACTURING PROCESS EARLY ADOPTERS & INNOVATORS OF WELLBORE MANUFACTURING Focus • Cost of well viewed over well life-cycle • Digital technologies used to improve wellbore quality, placement, and consistency • Greater well efficiencies and val
Slide 14: H&P Global Rig Fleet
H&P GLOBAL RIG FLEET Rigs Rigs % Available Contracted (1) Contracted U.S. Land 262 103 39% Super-Spec FlexRigs 234 101 43% Upgradeable AC FlexRigs 8 0 0% Other AC-Style FlexRigs 20 2 10% International Land 32 4 13% Argentina 20 1 5% Bahrain 3 3 100% U.A.E. 2 0 0% Colombia 7 0 0% Offshore 7 4 57% Tot
Slide 15: H&P Is Built to Withstand Volatile Markets
H&P IS BUILT TO WITHSTAND VOLATILE MARKETS
Slide 16: Conservative Capital Structure
CONSERVATIVE CAPITAL STRUCTURE CAPITAL EMPLOYED ($MM) LIQUIDITY AVAILABLE ($MM) 250% $1,250 HP Liquidity as a % of Debt Total Liquidity Available 200% $1,000 PTEN 150% $750 100% NBR $500 $250 50% PDS* $0 0% $0 $1,000 $2,000 $3,000 $4,000 $5,000 HP PTEN NBR PDS* Cash & ST Investments Revolver Availab
Slide 17: Conservative Capital Structure
CONSERVATIVE CAPITAL STRUCTURE (1) TOTAL-DEBT-TO-TOTAL-CAPITALIZATION RATIO DEBT MATURITY SCHEDULE (IN MILLIONS) $1,600 HP $1,400 $1,200 PTEN $1,000 $286 $854 $800 $348 PDS $600 $510 $400 $823 $263 $500 $560 NBR $200 $86 $50 $324 $390 $349 $0 0% 25% 50% 75% 2021 2022 2023 2024 2025 2026 2027 2028 20
Slide 18: ESG – Social Responsibility
ESG – SOCIAL RESPONSIBILITY ENVIRONMENT SOCIAL GOVERNANCE Drilling Solutions Safety Governance Structure • Walking/skidding rigs for multi-well • Health and safety are fundamental • Does not maintain a classified Board of Directors programs minimizes the impact to the principles and company-wide env
Slide 19: 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 FIN
Slide 20: Thank You for Your Interest in H&P
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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