Helmerich & Payne Inc. (HP) reports earnings

The report was filed on February 5, 2025

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Helmerich & Payne Inc. (HP+1.44%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.

The filing includes financial statements for the quarter, showing operating revenues of $677.3 million, a slight increase from $677.1 million in the same quarter the previous year. This increase was primarily due to higher average pricing levels in the North America Solutions segment.

Net income for the quarter was $54.8 million, down from $95.2 million in the previous year. The decrease in net income was attributed to increased acquisition transaction costs and interest expenses.

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Direct operating expenses were $413.0 million, compared to $404.4 million in the previous year. The increase was primarily driven by start-up costs associated with operations in Saudi Arabia.

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Selling, general, and administrative expenses increased to $63.1 million from $56.6 million, primarily due to higher labor and IT-related expenses.

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The company reported a loss of $13.4 million on investment securities, mainly due to the sale of equity securities in ADNOC Drilling and a decrease in the fair market value of its investment in Tamboran Corp.

Cash provided by operating activities was $158.4 million, while cash used in investing and financing activities was $52.7 million and $33.2 million, respectively.

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Helmerich & Payne completed the acquisition of KCA Deutag on January 16, 2025, for approximately $2.0 billion, funded through senior notes, a term loan, and cash on hand.

The company's contract backlog as of December 31, 2024, was $1.5 billion, with approximately 50.6% expected to be fulfilled in fiscal year 2025.

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Helmerich & Payne maintains a strong liquidity position with $391.2 million in cash and cash equivalents and $135.3 million in short-term investments as of December 31, 2024.

The company anticipates stable rig activity in the North America Solutions segment and expects increased operations in the International Solutions segment following the acquisition of KCA Deutag.

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This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Helmerich & Payne Inc. quarterly 10-Q report dated February 5, 2025. To report an error, please email earnings@qz.com.