- Helmerich & Payne (HP -1.7%) is downgraded to Hold from Buy at Argus based on valuation and weaker conditions in HP's main markets.
- HP remains heavily levered to the U.S., where the rig count has been relatively flat in 2013, and the firm expects continued weak drilling activity in the near term as E&P companies remain disciplined on capital spending.
- Although HP has gained share in unconventional plays, the firm believes earnings will come under pressure as the drilling market becomes more competitive.