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Helmerich & Payne’s Q1 Results and 2019 Outlook

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Helmerich & Payne’s first-quarter results

Helmerich & Payne (HP) reported its first-quarter results on January 29. The company will hold a conference call to discuss its results on January 30. Helmerich & Payne reported an EPS of $0.17 for the quarter ending December 31. The EPS rose from $0.02 per share for the quarter ending September 30. Helmerich & Payne’s U.S. Land segment’s revenue days increased ~4% sequentially. The U.S. Land segment contributed more than 90% of Helmerich & Payne’s operating income for the quarter.

As the above graph shows, Helmerich & Payne’s revenues for the quarter rose to $741 million from $697 million for the quarter ending September 30.

“The Company delivered sequentially improved operational results in the face of falling crude oil prices, which decreased by more than 30% during the quarter,” said John Lindsay, Helmerich & Payne’s president and CEO.

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Reduced capital expenditures

“Predictably, demand for super-spec rigs this current quarter has softened largely due to oil price uncertainty and our customers’ aim to spend within cash flow,” said Lindsay. The company reduced its planned capital expenditures for 2019 by 20% in response to uncertainty about customers’ plans.

Second-quarter outlook 

Softer demand is expected to impact Helmerich & Payne’s results for the quarter ending March 31. The company expects the quarterly revenue days to decrease ~3%–5% sequentially for its U.S. Land segment. For Helmerich & Payne’s Offshore operations, the quarterly revenue days are expected to increase 3% sequentially. For International Land operations, the quarterly revenue days are expected to fall ~10% sequentially.

To learn more about Helmerich & Payne’s segments, read Analyzing Helmerich & Payne’s Performance and Prospects. Schlumberger’s (SLB) fourth-quarter earnings fell 22%. Halliburton (HAL) reported its fourth-quarter earnings on January 22.

Baker Hughes (BHGE) is expected to report its earnings on January 31. National Oilwell Varco (NOV) is scheduled to report its results on February 6.

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