The following is a summary of the Helmerich & Payne, Inc. (HP) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Helmerich & Payne reported Q2 revenues of $688 million, up from $677 million the previous quarter, driven by an increase in average active rig activity in North America.

• The Company saw a profit of $0.84 per diluted share, a decrease from $0.94 in the previous quarter.

• Total direct operating costs were $403 million for the second quarter, almost equal to $404 million for the previous quarter.

• Capital expenditures for the second quarter were $118 million and the projected capital expenditures for the full 2024 fiscal year are at the top end of the original $450 million to $500 million range.

• The company forecasts sufficient cash flow to cover capital expenditures, the base dividend, and the fiscal 2024 supplemental dividend plan.

Business Progress:

• The company is preparing for the unconventional project in Saudi Arabia with the first rig expected to commence operations this summer. The majority of the seven rig tender award should commence operations towards the end of 2024.

• International operations in South America, Australia, and offshore Gulf of Mexico are forecasted to remain relatively stable over the next quarter.

• H&P continues to pioneer alternative contract models and its FlexRigs and technology solutions are delivering value to customers through safety, consistency, and reduced execution risk.

• A projection of higher per rig maintenance CapEx due to an increase in service intensity.

• A total expenditure of $2 million is anticipated for mobilization per rig, which will be deferred and recognized over the contract term once operations commence.

• Preparations are underway to accelerate work in Saudi Arabia with new rigs and there's potential for additional tenders. These rigs are expected to commence operations in the beginning of calendar 2025.

• Initiatives are underway to improve supply chain efficiency and develop local content and supply chain in Saudi Arabia, which includes setting up a local office and hiring locally.

More details: Helmerich & Payne IR

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