Helmerich & Payne Inc.NYSE
Helmerich & Payne: Do U.S. Shales Need 1,000 Modern Rigs?
Richard Zeits • 23 Comments
Richard Zeits • 23 Comments
Thu, Dec. 1, 9:30 AM
- November monthly performance was: +5.57%
- 52-week performance vs. the S&P 500 is: +8%
- $0.19 in dividends were paid in November
- Top 10 Holdings as of 10/31/2016: ONEOK Inc (OKE): 2.86519%, Mattel Inc (MAT): 1.44508%, CenterPoint Energy Inc (CNP): 1.35701%, Macquarie Infrastructure Corp (MIC): 1.03507%, Coach Inc (COH): 1.03167%, Frontier Communications Corp Class B (FTR): 1.00602%, Microchip Technology Inc (MCHP): 0.94734%, SCANA Corp (SCG): 0.92707%, CMS Energy Corp (CMS): 0.9082%, Helmerich & Payne Inc (HP): 0.84858%
Thu, Dec. 1, 8:22 AM
- Seaport Global rings the register on Helmerich & Payne (NYSE:HP) as yesterday's 12% jump brought the stock within shouting distance of the $77 price target (closed at $75.65).
- HP is higher by 41% YTD.
- Shares are up 0.45% premarket, with oil up another 1.8% to $50.32 per barrel.
- Previously: National-Oilwell downgraded after blasting through price target (Dec. 1)
Thu, Nov. 17, 6:03 AM
Wed, Nov. 16, 5:30 PM
Thu, Nov. 3, 8:29 AM
- October monthly performance was: -2.36%
- 52-week performance vs. the S&P 500 is: +4%
- $0.17 in dividends were paid in October
- Top 10 Holdings as of 9/30/2016: ONEOK Inc (OKE): 2.9392%, Mattel Inc (MAT): 1.34299%, CenterPoint Energy Inc (CNP): 1.33823%, Macquarie Infrastructure Corp (MIC): 1.02004%, Coach Inc (COH): 1.01792%, Frontier Communications Corp Class B (FTR): 1.00738%, Microchip Technology Inc (MCHP): 0.94194%, SCANA Corp (SCG): 0.88622%, CMS Energy Corp (CMS): 0.87714%, Helmerich & Payne Inc (HP): 0.87589%
Thu, Sep. 15, 3:25 PM
- Helmerich & Payne (HP +0.9%) is downgraded to Hold from Buy at Argus, which says HP is increasingly relying on lower priced spot contracts rather than higher priced term contracts.
- Argus believes the spot contracts, together with lower rig utilization for the rest of the year, will result in a 50% drop in overall revenue for the current year and slipping another 9% in the following year.
- On the positive side, the firm notes that HP offers an above-average dividend yield of ~4.9% and should continue to benefit from its fleet of advanced FlexRigs.
Tue, Sep. 6, 10:47 AM
- Helmerich & Payne (HP +2.6%) is upgraded to Equal Weight from Underweight with an $80 price target, raised from $70, at Morgan Stanley, which says the stock offers a defensive play within the U.S. land drilling sector without taking meaningful balance sheet risk.
- "Data points from our conference suggest relative tightness in pockets of the high-spec rig market - notably Texas and Oklahoma - where HP has outsized share," Stanley analyst Ole Slorer writes, with "no reason to believe that HP will not share in these respective gains given its premium reputation and current ~25% share of working rigs in these regions."
- The firm believes HP's activity data and earnings momentum are "meaningfully better" than the sector at large and sees near-term outperformance in the shares.
Mon, Aug. 15, 12:28 PM
- Helmerich & Payne (HP +2.2%) is better positioned that its oil and gas drilling peers in a challenging environment, Argus says as it maintains a Buy rating and $72 price target on the company.
- The firm cites HP's industry-low debt, which offers the flexibility to add debt without straining its balance sheet, and the company’s above-peer-average dividend yield of 4.5%.
- Argus notes that HP's Q2 operating loss primarily was due to lower drilling revenue, driven by reduced capital spending as well as lower drill margins in the offshore segment and lower utilization rates.
Tue, Aug. 2, 10:04 AM
- July monthly performance was: +2.99%
- 52-week performance vs. the S&P 500 is: +7%
- $0.24 in dividends were paid in July
- Top 10 Holdings as of 6/30/2016: ONEOK Inc (OKE): 2.68634%, Mattel Inc (MAT): 1.37579%, CenterPoint Energy Inc (CNP): 1.3705%, Frontier Communications Corp Class B (FTR): 1.18302%, Coach Inc (COH): 1.12088%, CMS Energy Corp (CMS): 0.94653%, SCANA Corp (SCG): 0.91588%, Macquarie Infrastructure Corp (MIC): 0.89711%, Helmerich & Payne Inc (HP): 0.8648%, Digital Realty Trust Inc (DLR): 0.85433%
Thu, Jul. 28, 6:07 AM
Wed, Jul. 27, 5:30 PM
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Fri, Jul. 15, 10:02 AM
- Thomas Lee from Fundstrat Market & Equity Research ("our research process combines both top-down strategy and bottoms-up fundamental views, to develop a roadmap of practical and useful investment insights for our clients") identifies 15 stocks that meet his criteria for his current “highest conviction” strategies, which he calls “laggards become leaders” and “stocks are the new bonds.”
- The following stocks are in 1 of 16 groups that have lagged in the bull market (laggards), and have dividend yield greater than the their long-term bond yield (stocks are the new bonds): APD, CAT, CSCO, CVX, HP, IBM, OXY, PCAR, PG, PX, RL, SLB, T, VZ, XOM.
Tue, Jul. 12, 10:58 AM
- Forum Energy Technologies (FET +3.6%) is downgraded to Underweight from Neutral with a $10 price target at J.P. Morgan, which says expectations "have run too hard too fast" with other North American beta plays, and "a re-rating could lead to underperformance [in H2 2016] relative to equipment peers."
- FET shares have risen significantly since February on better expectations for normalized activity in the next cycle, but the firm sees the possibility for a retreat as expectations reset in H2 if oil prices struggle to move higher and rig counts remain volatile.
- JPM's other North American onshore Underweight-rated stocks that could underperform in a retrench in expectations include Helmerich & Payne (HP +4.2%) and Patterson-UTI Energy (PTEN +2.6%).
Tue, Jun. 21, 3:39 PM
- Helmerich & Payne (HP +2.2%) is higher after KeyBanc upgrades shares to Overweight from Sector Weight with an $80 price target, calling HP "the best positioned land drilling contractor" in an environment poised for a rebound in U.S. land rig activity, also boasting "the strongest balance sheet in the industry."
- The firm notes that HP owns about half of the 1,500 horsepower AC-Drive land rigs that are currently idle, and these rigs will "likely be the rigs of choice as the market recovers."
- KeyBanc says HP should supply about half of incremental demand for horizontal drilling services within the next few years, which will further solidify its market leadership.
Wed, Jun. 1, 3:54 PM
- Land-based oil drillers "all look overvalued," Credit Suisse analysts say as they downgrade Helmerich & Payne (HP -2.1%), Patterson-UTI Energy (PTEN -2%) and Precision Drilling (PDS -4.6%) to Underperform from Neutral, and Nabors Industries (NBR -3.8%) to Neutral from Outperform, predicting current spot rates likely will fall when incremental rigs go to work.
- Among the group, the firm sees HP as "the worst offender" on valuation, with overly optimistic assumptions for $35K spot market dayrates and forgiveness of deferred tax liabilities still not enough to justify the current price based on its rig count, while NBR is "the relative winner due to its international exposure."
- The firm prefers Baker Hughes (BHI +0.1%) and Halliburton (HAL -0.1%) in the sector due to their North American exposure and expectations of execution, while Schlumberger (SLB -0.6%) "has valuation headwinds and issues with exploration, deepwater and international exposure, but longer-term exposure to the stock is essential."
- Now read Moody's: Drillers will be the last to recover in the oil patch (May 16)
Mon, May 16, 7:15 PM
- Drilling companies will be the last to recover among the oil and gas industry when the recovery eventually arrives, Moody's says.
- North American land-based drillers will be stressed through the end of next year as contracts, signed when demand for their services was higher, expire and as prices for their services remain depressed, according to the report.
- The ratings agency predicts that Parker Drilling (NYSE:PKD) and Pioneer Energy Services (NYSE:PES) could breach one of their existing financial covenants by the middle of next year.
- Moody's thinks the best-positioned companies through the ongoing rout are Helmerich and Payne (NYSE:HP) and Precision Drilling (NYSE:PDS), which have "the most high-quality rigs, which will be the first to re-enter the market when industry conditions improve sometime after 2017."