Attached files
| file | filename |
|---|---|
| 8-K - CURRENT REPORT OF MATERIAL EVENTS OR CORPORATE CHANGES - Helmerich & Payne, Inc. | a16-15559_18k.htm |
Exhibit 99
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|
NEWS RELEASE |
HELMERICH & PAYNE, INC. / 1437 SOUTH BOULDER AVENUE / TULSA, OKLAHOMA
July 28, 2016
HELMERICH & PAYNE, INC. ANNOUNCES THIRD QUARTER RESULTS
Helmerich & Payne, Inc. (NYSE: HP) reported a net loss of $21 million (negative $0.20 per diluted share) from operating revenues of $366 million for the third quarter of fiscal 2016, compared to net income of $91 million ($0.83 per diluted share) from operating revenues of $661 million (as adjusted) during the third quarter of fiscal 2015, and net income of $21 million ($0.19 per diluted share) from operating revenues of $438 million during the second quarter of fiscal 2016. Included in net income per diluted share for this year’s and last year’s third fiscal quarters as well as this year’s second fiscal quarter are approximately $0.27, $0.61, and $0.46, respectively, of after-tax income related to a combination of select items (including long-term contract early termination compensation from customers) as described in a separate section of this press release.
President and CEO John Lindsay commented, “Even though oil prices have pulled back over the past several weeks, it is encouraging to still see signs of optimism in the market. In May, the BHI U.S. land rig count troughed at 380 rigs, and has since increased from what everyone hopes was the absolute bottom of this market cycle. Recently, some E&P companies have announced budget increases and rig count additions. It is a positive sign, but many still remain on the sidelines.
“This has been an extraordinary downturn and it is having a pervasive effect on every enterprise within the industry. While H&P remains very strong and has been proactive and effective in adjusting to this new environment, the declines in activity levels and spot pricing that we have experienced have significantly impacted our bottom line and the size of our organization. An improving market reverses these two trends, and we believe that we are uniquely positioned to grow market share in the increasingly complex drilling environment that unconventional shale plays will require going forward.
“Time will tell whether momentum is truly building in the market; a few data points do not make a trend. However, regardless of the timing, we are making every effort to emerge from this as a stronger Company for customers, employees, and shareholders.”
Operating Segment Results
Segment operating income for the Company’s U.S. land operations was $26 million for the third quarter of fiscal 2016, compared with $122 million for last year’s third fiscal quarter and $63 million for this year’s second fiscal quarter. As compared to the second quarter of fiscal 2016, segment operating income decreased as a result of lower quarterly levels of activity and rig margins (excluding revenues from early contract terminations), as well as impairment charges during the third fiscal quarter related to
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News Release
July 28, 2016
used drilling equipment. The number of quarterly revenue days decreased sequentially by approximately 22% to 7,483 days. Excluding the impact of $8,287 and $10,790 per day corresponding to revenues from early contract terminations during this year’s second and third fiscal quarters, respectively, the average rig revenue per day decreased sequentially by $1,247 to $24,684. Excluding the impact of $110 and $363 per day corresponding to employee severance expense during this year’s second and third fiscal quarters, respectively, the average rig expense per day decreased sequentially by $612 to $13,417. Thus, the corresponding average rig margin per day decreased sequentially by $635 to $11,267. Rig utilization for the segment was 24% for this year’s third fiscal quarter, compared with 47% and 31% for last year’s third fiscal quarter and this year’s second fiscal quarter, respectively. At June 30, 2016, the Company’s U.S. land segment had approximately 89 contracted rigs generating revenue (including 75 under long-term contracts) and 259 idle rigs. The 89 contracted rigs included 84 rigs generating revenue days.
Segment operating income for the Company’s offshore operations was $2.1 million for the third quarter of fiscal 2016, compared with $14.7 million for last year’s third fiscal quarter and $3.3 million for this year’s second fiscal quarter. The sequential decrease in operating income was attributable to employee severance expense and declines in rig revenue days. Excluding the impact of $537 and $1,236 per day corresponding to employee severance expense during this year’s second and third fiscal quarters, respectively, the average rig margin per day increased sequentially from $7,883 to $7,981, and quarterly revenue days decreased from 691 days to 637 days during the third fiscal quarter.
The Company’s international land operations reported a segment operating loss of $5.0 million for this year’s third fiscal quarter, compared with operating income of $19.0 million (as adjusted) for last year’s third fiscal quarter and an operating loss of $2.3 million for this year’s second fiscal quarter. The sequential decrease in operating results was attributable to declines in the average daily margins and rig revenue days. Excluding the impact of $212 and $924 per day corresponding to employee severance expense during this year’s second and third fiscal quarters, respectively, the average rig margin per day decreased sequentially from $10,699 to $9,461 during the third fiscal quarter. The number of quarterly revenue days decreased sequentially by approximately 3% to 1,274 days.
Drilling Operations Outlook for the Fourth Quarter of Fiscal 2016
In the U.S. land segment, the Company expects revenue days (activity) to increase by roughly 3% to 7% during the fourth fiscal quarter as compared to the third fiscal quarter of 2016. Excluding any impact from early termination revenue, the average rig revenue per day is expected to be roughly $24,000, and the corresponding average rig expense per day is expected to decrease to roughly $13.300. As of today, the U.S. land segment has approximately 91 contracted rigs that are generating revenue (including 72 under term contracts) and 257 idle rigs. The 91 contracted rigs include 86 rigs generating revenue days.
In the offshore segment, the Company expects revenue days to increase by approximately 1% during the fourth fiscal quarter as compared to the third fiscal quarter
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News Release
July 28, 2016
of 2016. The average rig margin per day is expected to be approximately $8,000 during the fourth quarter of fiscal 2016.
In the international land segment, the Company expects revenue days to increase by approximately 5% to 10% during the fourth quarter as compared to the third quarter of fiscal 2016. The average rig margin per day is expected to be roughly $8,300 during the fourth quarter of fiscal 2016.
Select Items Included in Net Income (or Loss) per Diluted Share
Included in net loss per diluted share corresponding to the third quarter of fiscal 2016 are approximately $0.27 of after-tax income related to a combination of the following: $0.35 of after-tax gains from long-term contract early termination compensation from customers; $0.02 of after-tax losses from employee severance expense; $0.03 of after-tax losses from impairment charges related to used drilling equipment; and $0.03 of after-tax losses in general and administrative expenses from employer 401K plan matching contributions related to employee work force reductions.
Included in net income per diluted share corresponding to the third quarter of fiscal 2015 are approximately $0.61 of after-tax income related to a combination of the following: $0.60 (as adjusted) of after-tax gains from long-term contract early termination compensation from customers and $0.01 of after-tax gains related to the sale of used drilling equipment.
Included in net income per diluted share corresponding to the second quarter of fiscal 2016 are approximately $0.46 of after-tax income related to a combination of the following: $0.49 of after-tax gains from long-term contract early termination compensation from customers; $0.02 of after-tax gains related to the sale of used drilling equipment; $0.01 of after-tax losses from employee severance expense; and $0.04 of losses from discontinued operations.
About Helmerich & Payne, Inc.
Helmerich & Payne, Inc. is primarily a contract drilling company. As of July 28, 2016, the Company’s existing fleet includes 348 land rigs in the U.S., 38 international land rigs, and nine offshore platform rigs. In addition, the Company is scheduled to deliver another two new H&P-designed and operated FlexRigs®* during this fiscal year, both under long-term contracts with customers. Upon completion of these commitments, the Company’s global fleet is expected to have a total of 388 land rigs, including 373 AC drive FlexRigs.
Forward-Looking Statements
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, operations outlook, business strategy, budgets, projected costs and plans and objectives of management for future operations, are forward-looking
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News Release
July 28, 2016
statements. For information regarding risks and uncertainties associated with the Company’s business, please refer to the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” 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.
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*FlexRig® is a registered trademark of Helmerich & Payne, Inc. |
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Contact: Investor Relations |
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investor.relations@hpinc.com |
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(918) 588-5190 |
(more)
News Release
July 28, 2016
HELMERICH & PAYNE, INC.
Unaudited
(in thousands, except per share data)
|
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Three Months Ended |
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Nine Months Ended |
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CONSOLIDATED STATEMENTS OF |
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March 31 |
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June 30 |
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June 30 |
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OPERATIONS |
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2016 |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
| |||||
|
|
|
|
|
|
|
(As adjusted) |
|
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(As adjusted) |
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|
|
|
|
|
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|
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Operating Revenues: |
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Drilling — U.S. Land |
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$ |
349,283 |
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$ |
285,028 |
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$ |
494,615 |
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$ |
1,004,116 |
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$ |
2,103,125 |
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Drilling — Offshore |
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34,325 |
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30,492 |
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57,071 |
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106,697 |
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189,386 |
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Drilling — International Land |
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51,352 |
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47,983 |
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106,551 |
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171,529 |
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304,262 |
| |||||
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Other |
|
3,231 |
|
2,983 |
|
3,208 |
|
10,182 |
|
11,129 |
| |||||
|
|
|
$ |
438,191 |
|
$ |
366,486 |
|
$ |
661,445 |
|
$ |
1,292,524 |
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$ |
2,607,902 |
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|
|
|
|
|
|
|
|
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Operating costs and expenses: |
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|
|
|
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|
|
|
|
|
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Operating costs, excluding depreciation |
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221,611 |
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186,146 |
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350,640 |
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684,401 |
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1,377,202 |
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Depreciation |
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141,517 |
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138,690 |
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144,965 |
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422,336 |
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433,445 |
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Asset impairment charge |
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— |
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6,250 |
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— |
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6,250 |
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— |
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General and administrative |
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33,811 |
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46,496 |
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29,253 |
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112,381 |
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96,984 |
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Research and development |
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2,315 |
|
2,707 |
|
3,329 |
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7,941 |
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12,344 |
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Income from asset sales |
|
(2,684 |
) |
(547 |
) |
(1,791 |
) |
(7,820 |
) |
(8,819 |
) | |||||
|
|
|
396,570 |
|
379,742 |
|
526,396 |
|
1,225,489 |
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1,911,156 |
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|
|
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|
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|
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Operating income (loss) |
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41,621 |
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(13,256 |
) |
135,049 |
|
67,035 |
|
696,746 |
| |||||
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|
|
|
|
|
|
|
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| |||||
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Other income (expense): |
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|
|
|
|
|
|
|
|
|
| |||||
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Interest and dividend income |
|
799 |
|
778 |
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1,588 |
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2,310 |
|
4,447 |
| |||||
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Interest expense |
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(5,721 |
) |
(6,407 |
) |
(6,136 |
) |
(16,652 |
) |
(9,326 |
) | |||||
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Other |
|
653 |
|
534 |
|
(281 |
) |
926 |
|
88 |
| |||||
|
|
|
(4,269 |
) |
(5,095 |
) |
(4,829 |
) |
(13,416 |
) |
(4,791 |
) | |||||
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Income (loss) from continuing operations before income taxes |
|
37,352 |
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(18,351 |
) |
130,220 |
|
53,619 |
|
691,955 |
| |||||
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Income tax provision |
|
12,178 |
|
2,842 |
|
39,321 |
|
33,740 |
|
243,891 |
| |||||
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Income (loss) from continuing operations |
|
25,174 |
|
(21,193 |
) |
90,899 |
|
19,879 |
|
448,064 |
| |||||
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|
|
|
|
|
|
|
|
|
|
|
| |||||
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Income (loss) from discontinued operations, before income taxes |
|
(56 |
) |
2,193 |
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(27 |
) |
2,241 |
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(41 |
) | |||||
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Income tax provision |
|
3,913 |
|
2,200 |
|
— |
|
6,113 |
|
— |
| |||||
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Loss from discontinued operations |
|
(3,969 |
) |
(7 |
) |
(27 |
) |
(3,872 |
) |
(41 |
) | |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
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NET INCOME (LOSS) |
|
$ |
21,205 |
|
$ |
(21,200 |
) |
$ |
90,872 |
|
$ |
16,007 |
|
$ |
448,023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
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Basic earnings per common share: |
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|
|
|
|
|
|
|
|
|
| |||||
|
Income (loss) from continuing operations |
|
$ |
0.23 |
|
$ |
(0.20 |
) |
$ |
0.84 |
|
$ |
0.18 |
|
$ |
4.13 |
|
|
Loss from discontinued operations |
|
$ |
(0.04 |
) |
$ |
— |
|
$ |
— |
|
$ |
(0.04 |
) |
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
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Net income (loss) |
|
$ |
0.19 |
|
$ |
(0.20 |
) |
$ |
0.84 |
|
$ |
0.14 |
|
$ |
4.13 |
|
(more)
News Release
July 28, 2016
HELMERICH & PAYNE, INC.
Unaudited
(in thousands, except per share data)
|
|
|
Three Months Ended |
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Nine Months Ended |
| |||||||||||
|
CONSOLIDATED STATEMENTS OF |
|
March 31 |
|
June 30 |
|
June 30 |
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|
OPERATIONS |
|
2016 |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
| |||||
|
|
|
|
|
|
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(As adjusted) |
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|
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(As adjusted) |
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|
|
|
|
|
|
|
|
|
|
|
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Diluted earnings per common share: |
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|
|
|
|
|
|
|
|
|
| |||||
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Income (loss) from continuing operations |
|
$ |
0.23 |
|
$ |
(0.20 |
) |
$ |
0.83 |
|
$ |
0.17 |
|
$ |
4.10 |
|
|
Loss from discontinued operations |
|
$ |
(0.04 |
) |
$ |
— |
|
$ |
— |
|
$ |
(0.04 |
) |
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
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Net income |
|
$ |
0.19 |
|
$ |
(0.20 |
) |
$ |
0.83 |
|
$ |
0.13 |
|
$ |
4.10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
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Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
| |||||
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Basic |
|
108,014 |
|
108,047 |
|
107,652 |
|
107,970 |
|
107,759 |
| |||||
|
Diluted |
|
108,466 |
|
108,047 |
|
108,469 |
|
108,523 |
|
108,571 |
| |||||
Effective October 1, 2015, the Company eliminated a legacy one-month lag period between its U.S. fiscal year and its foreign subsidiaries’ fiscal years. As required, the elimination of the one-month lag has been applied retrospectively to all periods presented herein.
(more)
News Release
July 28, 2016
HELMERICH & PAYNE, INC.
Unaudited
(in thousands)
|
CONSOLIDATED CONDENSED BALANCE SHEETS |
|
June 30 |
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September 30 |
| ||
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|
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(As Adjusted) |
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|
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ASSETS |
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|
|
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Cash and cash equivalents |
|
$ |
907,032 |
|
$ |
729,384 |
|
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Short term investments |
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49,565 |
|
45,543 |
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Other current assets |
|
580,995 |
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656,170 |
| ||
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Current assets of discontinued operations |
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80 |
|
8,097 |
| ||
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Total current assets |
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1,537,672 |
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1,439,194 |
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Investments |
|
99,898 |
|
104,354 |
| ||
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Net property, plant, and equipment |
|
5,306,434 |
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5,563,170 |
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Other assets |
|
32,515 |
|
40,524 |
| ||
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TOTAL ASSETS |
|
$ |
6,976,519 |
|
$ |
7,147,242 |
|
|
|
|
|
|
|
| ||
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
| ||
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Current liabilities |
|
$ |
326,571 |
|
$ |
344,820 |
|
|
Current liabilities of discontinued operations |
|
38 |
|
3,377 |
| ||
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Total current liabilities |
|
326,609 |
|
348,197 |
| ||
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Non-current liabilities |
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1,451,314 |
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1,406,036 |
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Non-current liabilities of discontinued operations |
|
3,984 |
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4,720 |
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Long-term notes payable |
|
493,150 |
|
492,443 |
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Total shareholders’ equity |
|
4,701,462 |
|
4,895,846 |
| ||
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|
|
|
|
|
| ||
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TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
$ |
6,976,519 |
|
$ |
7,147,242 |
|
(more)
News Release
July 28, 2016
HELMERICH & PAYNE, INC.
Unaudited
(in thousands)
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|
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Nine Months Ended |
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|
June 30 |
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CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS |
|
2016 |
|
2015 |
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|
|
|
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(As Adjusted) |
| ||
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|
|
|
|
|
| ||
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OPERATING ACTIVITIES: |
|
|
|
|
| ||
|
Net income |
|
$ |
16,007 |
|
$ |
448,023 |
|
|
Adjustment for loss from discontinued operations |
|
3,872 |
|
41 |
| ||
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Income from continuing operations |
|
19,879 |
|
448,064 |
| ||
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Depreciation |
|
422,336 |
|
433,445 |
| ||
|
Asset impairment charge |
|
6,250 |
|
— |
| ||
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Changes in assets and liabilities |
|
153,624 |
|
258,102 |
| ||
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Gain on sale of assets |
|
(7,820 |
) |
(8,819 |
) | ||
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Other |
|
21,071 |
|
20,805 |
| ||
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Net cash provided by operating activities from continuing operations |
|
615,340 |
|
1,151,597 |
| ||
|
Net cash provided by (used in) operating activities from discontinued operations |
|
70 |
|
(41 |
) | ||
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Net cash provided by operating activities |
|
615,410 |
|
1,151,556 |
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|
|
|
|
|
| ||
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INVESTING ACTIVITIES: |
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|
|
|
| ||
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Capital expenditures |
|
(219,549 |
) |
(971,602 |
) | ||
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Purchase of short-term investments |
|
(36,958 |
) |
— |
| ||
|
Proceeds from sales of short-term investments |
|
32,681 |
|
— |
| ||
|
Proceeds from sale of assets |
|
12,804 |
|
17,757 |
| ||
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Net cash used in investing activities |
|
(211,022 |
) |
(953,845 |
) | ||
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|
|
|
|
|
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FINANCING ACTIVITIES: |
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|
|
|
| ||
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Proceeds from senior notes, net of discount and debt issuance costs |
|
(32 |
) |
491,923 |
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Proceeds from short-term debt |
|
— |
|
1,002 |
| ||
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Payments on short-term debt |
|
— |
|
(1,002 |
) | ||
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Increase in bank overdraft |
|
— |
|
10,824 |
| ||
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Dividends paid |
|
(224,040 |
) |
(223,827 |
) | ||
|
Repurchase of common stock |
|
— |
|
(59,654 |
) | ||
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Exercise of stock options |
|
483 |
|
(609 |
) | ||
|
Tax withholdings related to net share settlements of restricted stock |
|
(3,912 |
) |
(5,104 |
) | ||
|
Excess tax benefit from stock-based compensation |
|
761 |
|
2,969 |
| ||
|
Net cash provided by (used in) financing activities |
|
(226,740 |
) |
216,522 |
| ||
|
|
|
|
|
|
| ||
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Net increase in cash and cash equivalents |
|
177,648 |
|
414,233 |
| ||
|
Cash and cash equivalents, beginning of period |
|
729,384 |
|
360,307 |
| ||
|
Cash and cash equivalents, end of period |
|
$ |
907,032 |
|
$ |
774,540 |
|
(more)
News Release
July 28, 2016
|
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|
Three Months Ended |
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Nine Months Ended |
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|
March 31 |
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June 30 |
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June 30 |
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|
SEGMENT REPORTING |
|
2016 |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
| |||||
|
|
|
|
|
|
|
(As adjusted) |
|
|
|
(As adjusted) |
| |||||
|
|
|
(in thousands, except days and per day amounts) |
| |||||||||||||
|
U.S. LAND OPERATIONS |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Revenues |
|
$ |
349,283 |
|
$ |
285,028 |
|
$ |
494,615 |
|
$ |
1,004,116 |
|
$ |
2,103,125 |
|
|
Direct operating expenses |
|
155,884 |
|
122,694 |
|
241,109 |
|
460,119 |
|
1,034,724 |
| |||||
|
General and administrative expense |
|
12,196 |
|
14,221 |
|
10,465 |
|
38,790 |
|
34,785 |
| |||||
|
Depreciation |
|
118,682 |
|
116,061 |
|
121,307 |
|
355,102 |
|
368,894 |
| |||||
|
Asset impairment charge |
|
— |
|
6,250 |
|
— |
|
6,250 |
|
— |
| |||||
|
Segment operating income |
|
$ |
62,521 |
|
$ |
25,802 |
|
$ |
121,734 |
|
$ |
143,855 |
|
$ |
664,722 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Revenue days |
|
9,601 |
|
7,483 |
|
14,219 |
|
29,029 |
|
62,376 |
| |||||
|
Average rig revenue per day |
|
$ |
34,218 |
|
$ |
35,474 |
|
$ |
31,959 |
|
$ |
32,251 |
|
$ |
30,538 |
|
|
Average rig expense per day |
|
$ |
14,139 |
|
$ |
13,780 |
|
$ |
14,130 |
|
$ |
13,532 |
|
$ |
13,410 |
|
|
Average rig margin per day |
|
$ |
20,079 |
|
$ |
21,694 |
|
$ |
17,829 |
|
$ |
18,719 |
|
$ |
17,128 |
|
|
Rig utilization |
|
31 |
% |
24 |
% |
47 |
% |
31 |
% |
68 |
% | |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
OFFSHORE OPERATIONS |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Revenues |
|
$ |
34,325 |
|
$ |
30,492 |
|
$ |
57,071 |
|
$ |
106,697 |
|
$ |
189,386 |
|
|
Direct operating expenses |
|
27,065 |
|
24,249 |
|
39,011 |
|
81,607 |
|
122,750 |
| |||||
|
General and administrative expense |
|
837 |
|
975 |
|
688 |
|
2,674 |
|
2,468 |
| |||||
|
Depreciation |
|
3,124 |
|
3,184 |
|
2,688 |
|
9,311 |
|
8,782 |
| |||||
|
Segment operating income |
|
$ |
3,299 |
|
$ |
2,084 |
|
$ |
14,684 |
|
$ |
13,105 |
|
$ |
55,386 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Revenue days |
|
691 |
|
637 |
|
728 |
|
2,064 |
|
2,331 |
| |||||
|
Average rig revenue per day |
|
$ |
28,004 |
|
$ |
25,568 |
|
$ |
38,333 |
|
$ |
27,086 |
|
$ |
48,136 |
|
|
Average rig expense per day |
|
$ |
20,658 |
|
$ |
18,823 |
|
$ |
24,068 |
|
$ |
19,721 |
|
$ |
30,126 |
|
|
Average rig margin per day |
|
$ |
7,346 |
|
$ |
6,745 |
|
$ |
14,265 |
|
$ |
7,365 |
|
$ |
18,010 |
|
|
Rig utilization |
|
84 |
% |
78 |
% |
89 |
% |
84 |
% |
95 |
% | |||||
(more)
News Release
July 28, 2016
|
|
|
Three Months Ended |
|
Nine Months Ended |
| |||||||||||
|
|
|
March 31 |
|
June 30 |
|
June 30 |
| |||||||||
|
SEGMENT REPORTING |
|
2016 |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
| |||||
|
|
|
|
|
|
|
(As adjusted) |
|
|
|
(As adjusted) |
| |||||
|
|
|
(in thousands, except days and per day amounts) |
| |||||||||||||
|
INTERNATIONAL LAND OPERATIONS |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Revenues |
|
$ |
51,352 |
|
$ |
47,983 |
|
$ |
106,551 |
|
$ |
171,529 |
|
$ |
304,262 |
|
|
Direct operating expenses |
|
38,113 |
|
38,230 |
|
70,602 |
|
140,351 |
|
219,916 |
| |||||
|
General and administrative expense |
|
887 |
|
772 |
|
628 |
|
2,377 |
|
2,256 |
| |||||
|
Depreciation |
|
14,620 |
|
13,972 |
|
16,322 |
|
42,725 |
|
41,951 |
| |||||
|
Segment operating income (loss) |
|
$ |
(2,268 |
) |
$ |
(4,991 |
) |
$ |
18,999 |
|
$ |
(13,924 |
) |
$ |
40,139 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Revenue days |
|
1,307 |
|
1,274 |
|
1,836 |
|
3,992 |
|
5,676 |
| |||||
|
Average rig revenue per day |
|
$ |
36,774 |
|
$ |
34,693 |
|
$ |
53,383 |
|
$ |
39,382 |
|
$ |
48,398 |
|
|
Average rig expense per day |
|
$ |
26,287 |
|
$ |
26,156 |
|
$ |
33,598 |
|
$ |
29,050 |
|
$ |
33,769 |
|
|
Average rig margin per day |
|
$ |
10,487 |
|
$ |
8,537 |
|
$ |
19,785 |
|
$ |
10,332 |
|
$ |
14,629 |
|
|
Rig utilization |
|
38 |
% |
37 |
% |
50 |
% |
38 |
% |
53 |
% | |||||
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 |
|
$ |
20,751 |
|
$ |
19,593 |
|
$ |
40,188 |
|
$ |
67,915 |
|
$ |
198,303 |
|
|
Offshore Operations |
|
$ |
6,086 |
|
$ |
5,270 |
|
$ |
10,716 |
|
$ |
17,687 |
|
$ |
21,544 |
|
|
International Land Operations |
|
$ |
3,288 |
|
$ |
3,784 |
|
$ |
8,540 |
|
$ |
14,316 |
|
$ |
29,557 |
|
(more)
News Release
July 28, 2016
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 Operations (in thousands).
|
|
|
Three Months Ended |
|
Nine Months Ended |
| |||||||||||
|
|
|
March 31 |
|
June 30 |
|
June 30 |
| |||||||||
|
|
|
2016 |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
| |||||
|
|
|
|
|
|
|
(As adjusted) |
|
|
|
(As adjusted) |
| |||||
|
Operating income |
|
|
|
|
|
|
|
|
|
|
| |||||
|
U.S. Land |
|
$ |
62,521 |
|
$ |
25,802 |
|
$ |
121,734 |
|
$ |
143,855 |
|
$ |
664,722 |
|
|
Offshore |
|
3,299 |
|
2,084 |
|
14,684 |
|
13,105 |
|
55,386 |
| |||||
|
International Land |
|
(2,268 |
) |
(4,991 |
) |
18,999 |
|
(13,924 |
) |
40,139 |
| |||||
|
Other |
|
(1,349 |
) |
(2,186 |
) |
(2,324 |
) |
(4,839 |
) |
(7,440 |
) | |||||
|
Segment operating income |
|
$ |
62,203 |
|
$ |
20,709 |
|
$ |
153,093 |
|
$ |
138,197 |
|
$ |
752,807 |
|
|
Corporate general and administrative |
|
(19,891 |
) |
(30,528 |
) |
(17,472 |
) |
(68,540 |
) |
(57,475 |
) | |||||
|
Other depreciation |
|
(3,971 |
) |
(4,456 |
) |
(3,626 |
) |
(12,037 |
) |
(11,274 |
) | |||||
|
Inter-segment elimination |
|
596 |
|
472 |
|
1,263 |
|
1,595 |
|
3,869 |
| |||||
|
Income from asset sales |
|
2,684 |
|
547 |
|
1,791 |
|
7,820 |
|
8,819 |
| |||||
|
Operating income (loss) |
|
$ |
41,621 |
|
$ |
(13,256 |
) |
$ |
135,049 |
|
$ |
67,035 |
|
$ |
696,746 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Interest and dividend income |
|
799 |
|
778 |
|
1,588 |
|
2,310 |
|
4,447 |
| |||||
|
Interest expense |
|
(5,721 |
) |
(6,407 |
) |
(6,136 |
) |
(16,652 |
) |
(9,326 |
) | |||||
|
Other |
|
653 |
|
534 |
|
(281 |
) |
926 |
|
88 |
| |||||
|
Total other income (expense) |
|
(4,269 |
) |
(5,095 |
) |
(4,829 |
) |
(13,416 |
) |
(4,791 |
) | |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Income (loss) from continuing operations before income taxes |
|
$ |
37,352 |
|
$ |
(18,351 |
) |
$ |
130,220 |
|
$ |
53,619 |
|
$ |
691,955 |
|
# # #