How Is Helmerich & Payne’s Order Backlog Looking?

On June 30, 2016, Helmerich & Payne (HP) had an order backlog of ~$2.0 billion compared to ~$3.5 billion in the previous year. A company’s backlog estimates the sales value of unfilled, confirmed customer orders.

From fiscal 3Q15 to fiscal 3Q16, HP’s total backlog fell 43%. In fiscal 3Q16, revenue as percentage of backlog was 18%.

In comparison, Patterson-UTI Energy’s (PTEN) revenue as percentage of backlog was 39% in 2Q16. Helmerich & Payne comprises 3.9% of the iShares US Oil Equipment & Services ETF (IEZ).

We will discuss HP’s rigs under contract in the next part of the series.