Helmerich & Payne, Inc. Announces Record First Quarter Results

Helmerich & Payne, Inc. Announces Record First Quarter Results

TULSA, Okla., Jan. 31, 2013 (GLOBE NEWSWIRE) -- Helmerich & Payne, Inc.
(NYSE:HP) reported record income from continuing operations of $159,611,000
($1.48 per diluted share) from operating revenues of $844,572,000 for the
first quarter of fiscal 2013, compared to income from continuing operations of
$144,297,000 ($1.32 per diluted share) from operating revenues of $732,588,000
during the first fiscal quarter of 2012, and income from continuing operations
of $149,606,000 ($1.39 per diluted share) from operating revenues of
$829,447,000 during the fourth fiscal quarter of 2012. Included in income from
continuing operations for the first fiscal quarters of 2013 and 2012, and for
the fourth fiscal quarter of 2012, is income (after-tax) related to the sale
of used drilling assets and investment securities of $0.08, $0.03 and $0.03
per diluted share, respectively. Net income for the first quarter of fiscal
2013 was also reported at a record level of $159,603,000 ($1.48 per diluted
share), compared to net income of $144,286,000 ($1.32 per diluted share)
during the first fiscal quarter of 2012, and net income of $157,115,000 ($1.46
per diluted share) during the fourth fiscal quarter of 2012.

Segment operating income for U.S. land operations was $234,388,000 for the
first fiscal quarter of 2013, compared with $224,706,000 for last year's first
fiscal quarter and $236,619,000 for last year's fourth fiscal quarter. As
compared to the prior year's fourth fiscal quarter, the number of revenue days
for the segment sequentially decreased by 208 to 21,743. The average rig
revenue per day decreased by $285 to $28,040 during the first fiscal quarter
of 2013, but the decline was mostly attributable to lower revenue from early
termination fees during the first fiscal quarter. Also as compared to the
prior year's fourth fiscal quarter, average rig expense per day for the
segment increased by $14 to $12,634 during the first fiscal quarter, resulting
in a $299 average rig margin per day decline to $15,406. The rig revenue and
margin per day averages included $37 per day of early termination fees during
the first fiscal quarter of 2013 as compared to $283 per day during the
previous quarter. Rig utilization for the Company's U.S. land segment was 82%
for this year's first fiscal quarter, compared with 91% for last year's first
fiscal quarter and 85% for last year's fourth fiscal quarter. At December 31,
2012, the Company's U.S. land segment had 239 contracted rigs (including 161
under term contracts) and 54 idle rigs.

The Company also announced today that it has entered into agreements to build
and operate three additional FlexRigs®* ^ in the U.S. with two exploration and
production companies.The three rigs will be built under multi-year term
contracts and are expected to generate attractive economic returns for the
Company. Including the new builds announced today, five contracted FlexRigs
remain to be delivered. Once these rigs are delivered, the Company's global
fleet is expected to include 299 FlexRigs.

Chairman and CEO Hans Helmerich commented, "We are pleased that the Company
remains on a record-breaking pace with the results from our most recent
quarter. Going forward, E&P spending plans appear poised for increases as our
customers remain focused on innovative technology and productivity
improvements that are transforming the energy sector in this country. Our
competitive advantages are well aligned with this ongoing industry
transformation and should allow us to continue to expand our market share
while sustaining premium dayrates and margins."

Segment operating income for the Company's offshore operations was $15,006,000
for the first fiscal quarter of 2013, compared with $12,204,000 for last
year's first fiscal quarter and $12,033,000 for last year's fourth fiscal
quarter. The sequential increase in operating income was attributable to a
higher number of revenue days along with higher average rig margin per day
during the first fiscal quarter of 2013. Rig utilization in the segment was
reported at 89% for the first fiscal quarter of 2013, as compared to 84% for
the immediately preceding quarter.

The Company's international land operations reported segment operating income
of $9,111,000 for this year's first fiscal quarter, compared with $7,939,000
for last year's first fiscal quarter and $7,126,000 for the fourth fiscal
quarter of 2012. The increase in segment operating income as compared to last
year's fourth fiscal quarter was mostly attributable to a 12% increase in
revenue days. The average rig margin per day for the first fiscal quarter of
2013 increased sequentially to $8,400, from $8,210 per day during the fourth
quarter of fiscal 2012.

Helmerich & Payne, Inc. is primarily a contract drilling company.As of
January 31, 2013, the Company's existing fleet included 296 land rigs in the
U.S., 29 international land rigs and nine offshore platform rigs. In addition,
the Company has commitments to deliver another five new H&P-designed and
operated FlexRigs under long-term contracts with customers. Upon completion of
these commitments, the Company's global fleet is expected to have a total of
330 land rigs, including 299 FlexRigs.

Helmerich & Payne, Inc.'s conference call/webcast is scheduled to begin this
morning at 11:00 a.m. ET (10:00 a.m. CT) and can be accessed at
http://www.hpinc.com under Investors. If you are unable to participate during
the live webcast, the call will be archived on H&P's website indicated above.

This release includes "forward-looking statements" within the meaning of the
Securities Act of 1933 and the Securities Exchange Act of 1934, and such
statements are based on current expectations and assumptions that are subject
to risks and uncertainties. All statements other than statements of historical
facts included in this release, including, without limitation, statements
regarding the registrant's future financial position, business strategy,
budgets, projected costs and plans and objectives of management for future
operations, are forward-looking statements. For information regarding risks
and uncertainties associated with the Company's business, please refer to the
"Risk Factors" and "Management's Discussion & Analysis of Results of
Operations and Financial Condition" sections of the Company's SEC filings,
including but not limited to, its annual report on Form 10-K and quarterly
reports on Form 10-Q. As a result of these factors, Helmerich & Payne, Inc.'s
actual results may differ materially from those indicated or implied by such
forward-looking statements. We undertake no duty to update or revise our
forward-looking statements based on changes in internal estimates,
expectations or otherwise, except as required by law.

*FlexRig® is a registered trademark of Helmerich & Payne, Inc.

HELMERICH & PAYNE, INC.
Unaudited
(in thousands, except per share data)
                                                       
                                           Three Months Ended
                                           September 30 December 31
CONSOLIDATED STATEMENTS OF INCOME           2012         2012       2011
                                                                 
Operating Revenues:                                               
Drilling – U.S. Land                        $695,106   $696,030 $617,779
Drilling – Offshore                         53,256       57,718     50,792
Drilling – International Land               77,722       87,267     60,735
Other                                       3,363        3,557      3,282
                                           829,447      844,572    732,588
                                                                 
Operating costs and expenses:                                     
Operating costs, excluding depreciation     447,335     466,871   391,032
Depreciation                                115,145      106,599    86,288
General and administrative                  27,763       32,421     26,163
Research and development                    4,682        3,353      3,249
Income from asset sales                     (4,858)      (5,219)    (4,683)
                                           590,067      604,025    502,049
                                                                 
Operating income                            239,380      240,547    230,539
                                                                 
Other income (expense):                                           
Interest and dividend income                359          426        336
Interest expense                            (1,360)      (1,308)    (2,461)
Gain on sale of investment securities       --           8,752      --
Other                                       (34)         (2,084)    21
                                           (1,035)      5,786      (2,104)
                                                                 
Income from continuing operations before    238,345     246,333   228,435
income taxes
Income tax provision                        88,739       86,722     84,138
Income from continuing operations           149,606      159,611    144,297
                                                                 
Income (loss) from discontinued operations  7,509       (8)        (11)
before income taxes
Income tax provision                        --           --         --
Income (loss) from discontinued operations  7,509      (8)        (11)
                                                                 
NET INCOME                                  $157,115   $159,603 $144,286
                                                                 
Basic earnings per common share:                                  
Income from continuing operations           $1.41     $1.50    $1.34
Income from discontinued operations         $.07     $--   $--
                                                                 
Net income                                  $1.48     $1.50    $1.34
                                                                 
Diluted earnings per common share:                                
Income from continuing operations           $1.39      $1.48   $1.32
Income from discontinued operations         $.07       $ --   $ --
                                                                 
Net income                                  $1.46      $1.48   $1.32
                                                                 
Weighted average shares outstanding:                              
Basic                                       105,695      105,867   107,186
Diluted                                     107,086      107,412   108,788

                                                                           
                                                                           
                                                                           
HELMERICH & PAYNE, INC.                                                     
Unaudited                                                                   
(in thousands)                                                              
                                                                         
CONSOLIDATED CONDENSED BALANCE SHEETS              December 31 September 30 
                                                   2012        2012

                                                                         
ASSETS                                                                    
Cash and cash equivalents                          $241,146   $96,095    
Other current assets                               730,498     791,514      
Current assets of discontinued operations          7,788       7,619        
Total current assets                               979,432     895,228      
Investments                                        441,794     451,144      
Net property, plant, and equipment                 4,491,051   4,351,571    
Other assets                                       22,011      23,142       
TOTAL ASSETS                                       $ 5,934,288 $ 5,721,085 
                                                                         
                                                                         
LIABILITIES AND SHAREHOLDERS' EQUITY                                      
Current liabilities                                $422,028   $376,035   
Current liabilities of discontinued operations     5,205       5,129        
Total current liabilities                          427,233     381,164      
Non-current liabilities                            1,319,077   1,307,433    
Non-current liabilities of discontinued operations 2,583       2,490        
Long-term notes payable                            195,000     195,000      
Total shareholders' equity                         3,990,395   3,834,998    
                                                                         
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY         $ 5,934,288 $ 5,721,085  




HELMERICH & PAYNE, INC.
Unaudited
(in thousands)
                                                          
                                                          Three Months Ended
                                                          December 31
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS            2012         2011
                                                          
OPERATING ACTIVITIES:                                               
Net income                                                 $159,603 $144,286
Adjustment for loss from discontinued operations           8         11
Income from continuing operations                          159,611   144,297
Depreciation                                               106,599   86,288
Changes in assets and liabilities                          83,660    6,823
Gain on sale of assets and investment securities           (13,971)  (4,683)
Other                                                      6,031     3,924
Net cash provided by operating activities from continuing  341,930   236,649
operations
Net cash used in operating activities from discontinued    (8)       (11)
operations
Net cash provided by operating activities                  341,922   236,638
                                                                   
INVESTING ACTIVITIES:                                               
Capital expenditures                                       (219,444) (256,943)
Proceeds from sale of assets and investment securities     25,516    10,155
Net cash used in investing activities                      (193,928) (246,788)
                                                                   
FINANCINGACTIVITIES:                                               
Dividends paid                                             (7,432)   (7,522)
Exercise of stock options                                  473       373
Tax withholdings related to net share settlements of       (1,677)   (1,514)
restricted stock
Excess tax benefit from stock-based compensation           5,693     2,426
Net cash used in financing activities                      (2,943)   (6,237)
                                                                   
Net increase (decrease) in cash and cash equivalents       145,051   (16,387)
Cash and cash equivalents, beginning of period             96,095    364,246
Cash and cash equivalents, end of period                   $241,146 $347,859
                                                                   
                                                                   

                          
                          
SEGMENT REPORTING          Three Months Ended
                          September 30       December 31
                          2012               2012             2011
                          (in thousands, except days and per day amounts)
U.S. LAND OPERATIONS                                         
Revenues                   $ 695,106         $ 696,030      $ 617,779
Direct operating expenses  350,364            361,068          312,306
General and administrative 8,078              9,321            7,298
expense
Depreciation               100,045            91,253           73,469
Segment operating income   $ 236,619         $ 234,388       $ 224,706
                                                            
Revenue days               21,951            21,743           20,968
Average rig revenue per    $28,325          $28,040        $26,861
day
Average rig expense per    $ 12,620          $12,634        $12,292
day
Average rig margin per day $15,705          $15,406        $14,569
Rig utilization            85%               82%            91%
                                                            
OFFSHORE OPERATIONS                                          
Revenues                   $53,256          $57,718       $ 50,792
Direct operating expenses  35,824             37,207           33,201
General and administrative 1,974              2,235            1,732
expense
Depreciation               3,425              3,270            3,655
Segment operating income   $12,033          $15,006        $12,204
                                                            
Revenue days               695               736              697
Average rig revenue per    $62,018          $61,936        $53,644
day
Average rig expense per    $38,688          $36,154        $31,473
day
Average rig margin per day $23,330          $25,782        $22,171
Rig utilization            84%               89%             84%
                                                            
INTERNATIONAL LAND                                           
OPERATIONS
Revenues                   $77,722          $ 87,267        $60,735
Direct operating expenses  61,346             68,639           45,164
General and administrative 806                1,039            778
expense
Depreciation               8,444              8,478            6,854
Segment operating income   $7,126           $9,111         $7,939
                                                            
Revenue days               2,001              2,237            1,729
Average rig revenue per    $35,732          $35,511        $31,072
day
Average rig expense per    $27,522          $27,111        $22,057
day
Average rig margin per day $8,210            $8,400        $9,015
Rig utilization            79%               85%             78%
                                                            
Operating statistics exclude the effects of offshore platform management
contracts, gains and losses from translation of foreign currency transactions,
and do not include reimbursements of "out-of-pocket" expenses in revenue per
day, expense per day and margin calculations.
                                                            
Reimbursed amounts were as                                   
follows:
                                                            
U.S. Land Operations       $73,346          $86,359        $54,562
Offshore Operations        $4,731           $6,259         $5,798
International Land         $6,221           $7,828         $7,012
Operations

Segment operating income for all segments is a non-GAAP financial measure of
the Company's performance, as it excludes general and administrative expenses,
corporate depreciation, income from asset sales and other corporate income and
expense.The Company considers segment operating income to be an important
supplemental measure of operating performance for presenting trends in the
Company's core businesses.This measure is used by the Company to facilitate
period-to-period comparisons in operating performance of the Company's
reportable segments in the aggregate by eliminating items that affect
comparability between periods.The Company believes that segment operating
income is useful to investors because it provides a means to evaluate the
operating performance of the segments and the Company on an ongoing basis
using criteria that are used by our internal decision makers.Additionally, it
highlights operating trends and aids analytical comparisons.However, segment
operating income has limitations and should not be used as an alternative to
operating income or loss, a performance measure determined in accordance with
GAAP, as it excludes certain costs that may affect the Company's operating
performance in future periods.

The following table reconciles operating income per the information above to
income from continuing operations before income taxes as reported on the
Consolidated Statements of Income (in thousands).

                                            Three Months Ended
                                            September 30 December 31
                                            2012         2012       2011
Operating income                                                   
U.S. Land                                    $ 236,619    $ 234,388  $ 224,706
Offshore                                     12,033       15,006     12,204
International Land                           7,126        9,111      7,939
Other                                        (3,042)      (1,635)    (1,788)
Segment operating income                     $ 252,736    $ 256,870  $ 243,061
Corporate general and administrative         (16,905)     (19,826)   (16,355)
Other depreciation                           (2,510)      (2,934)    (1,556)
Inter-segment elimination                    1,201        1,218      706
Income from asset sales                      4,858        5,219      4,683
Operating income                             $ 239,380    $ 240,547 $ 230,539
                                                                  
Other income (expense):                                            
Interest and dividend income                 359         426        336
Interest expense                             (1,360)     (1,308)    (2,461)
Gain on sale of investment securities        --          8,752      --
Other                                        (34)        (2,084)    21
Total other income (expense)                 (1,035)     5,786      (2,104)
                                                                  
Income from continuing operations before     $ 238,345   $ 246,333 $ 228,435
income taxes

CONTACT: Investor Relations
         investor.relations@hpinc.com
         (918) 588-5207

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