Sep. 11, 2014, 3:36 PM
- Helmerich & Payne (HP -1.9%) is upgraded to Buy from Hold with a $124 price target at Argus, which believes HP's rare underperformance relative to the market over the last three months provides a favorable entry point for investors seeking exposure to a top U.S. drilling company with a focus on unconventional resources.
- Argus says HP continues to benefit from its position as the leading provider of high-horsepower, high-specification, premium AC-drive rigs in the U.S. onshore market, which are favored by E&P customers drilling complex unconventional horizontal wells.
Sep. 10, 2014, 5:35 PM
Aug. 21, 2014, 2:29 PM
- The latest fleet status reports from Diamond Offshore (DO -0.2%) and Hercules Offshore (HERO -3.8%), released after yesterday's close, appear to provide another sign that offshore drilling likely will get worse before it gets better.
- Raymond James analysts explain that DO's negative fleet status included a lower than expected dayrate on the ultra-deepwater rig Ocean Monarch for one year at $425K, below the firm's estimated 2015 rate of ~$450K; a convertible option to alter the contract to an 18-month term also was below expectations.
- HERO's August fleet status included a contract termination; Raymond James had expected choppiness in the coming months through hurricane season, but says the termination and increase in potential rigs available is cause for further caution.
- Also: SDRL -0.7%, RIG -0.5%, ESV -0.2%, HP -1.3%, RDC -0.7%, ATW -1%.
Aug. 12, 2014, 11:43 AM
- Helmerich & Payne (HP -0.5%) is upgraded to Accumulate from Neutral with a $115 price target at Global Hunter, which believes HP is poised to deliver stronger earnings growth than consensus expects through FY 2015.
- Global likes HP's backlog of 38 rigs on order with term contracts attached and expectations of continuing to build rigs on order.
- However, the firm has become more conservative on its valuation criteria for the group and in that vein have reduced the calendar-year 2015 EV/EBITDA multiple used to derive its price target.
Jul. 31, 2014, 6:04 AM| Comment!
Jul. 8, 2014, 12:14 PM
- Johnson Rice is optimistic about Atwood Oceanics (ATW -2.3%) despite lowering its 2014 EPS forecast to $4.63 from $4.76; the firm considers ATW among its top picks among offshore drillers, with its combination of a well-contracted fleet with a discounted multiple vs. its peers on visible earnings growth in 2015.
- ATW and other offshore drillers are lower after Seadrill (SDRL -4.8%) announced it would sell $1B in convertible bonds; RIG -1.7%, HERO -1.3%, ESV -0.9%, RDC -0.9%, HP -0.8%, DO -0.1%.
Jun. 19, 2014, 12:26 PM
- Despite news that Atwood Oceanics (ATW +0.4%) found work for its semi-submersible Atwood Hunter for drilling off Equatorial Guinea, offshore drillers aren't enjoying the same boost they received yesterday from fleet updates provided by Ensco (ESV -0.6%) and Diamond Offshore (DO -0.6%).
- Cowen analysts view the contract as a positive since it fills a good portion of the gap in ATW’s remaining 2014 availability; should the Hunter option be exercised, the only rig in ATW’s fleet with 2014 availability is the jackup Atwood Mako, which completes a contract in November.
- Also today: SDRL -0.4%, RDC -0.1%, HP +0.8%, HERO +0.7%, NADL +1.4%, ORIG +0.4%, PACD -0.1%.
Jun. 18, 2014, 3:49 PM
- Ensco’s (ESV +0.3%) fleet status update released late yesterday said it had contracted one of its offshore drillers at a rate far above what anyone thought possible in the current weak market, but analysts still see a struggle ahead for offshore drillers and warn that recent share price strength won't continue.
- Cowen analysts say the $650K dayrate for the Ensco DS-8 ultra-deepwater newbuild drillship is well ahead of the expected low-$500Ks thanks to unique circumstances, but lower-spec ultra-deepwater assets are commanding dayrates as low as $350K with the current market weakness likely to last well into 2015.
- Still, the rally has pushed drillers' shares near their 200-day moving averages; today, DO +0.8%, SDRL +0.6%, HP +0.7%, ATW +0.1%, RDC -1%, HERO -2.2%.
Jun. 4, 2014, 1:34 PM
Apr. 24, 2014, 2:48 PM
- Helmerich & Payne (HP -6%) shares are sharply lower after Q1 earnings came in lower than expected and the company’s international land operations business unit posted disappointing results.
- Operating revenues in U.S. land operations totaled $742M (83% of total revenue), up 8.2% Y/Y; average rig revenue per operating day was ~$28K, down 0.8%, while average rig margin per day fell 1.4% to $14,957.
- International land operations recorded revenues of $85.5M, down 9.1% Y/Y; average daily rig revenue was ~$37K, down 8.8%, while rig margin per day was $10,918, down 1.2%.
- Signed multi-year deals with five E&P companies to build and operate nine additional FlexRigs to drill unconventional U.S. resource plays, bringing the total number of newbuild FlexRig commitments announced in FY 2014 to 44.
Apr. 24, 2014, 6:02 AM| 5 Comments
Apr. 24, 2014, 12:05 AM
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Apr. 23, 2014, 5:30 PM
- AAL, ABC, AET, ALXN, AMAG, ASPS, AVT, AZN, BC, BHE, BKU, BMS, BTU, CAB, CAJ, CAM, CAT, CCE, CELG, CFX, CLFD, CLI, CMS, CNMD, COG, COR, CRR, CRS, CSH, CWEI, DFT, DGX, DHI, DLPH, DLX, DNKN, DO, DST, EQM, EQT, ETR, FAF, FCX, FNFG, GM, GMT, GPK, GTI, HOT, HP, HSY, IMAX, IVC, JBLU, KKR, LAD, LLY, LSTR, LTM, LUV, MDP, MHO, MJN, MMM, MO, NBL, NDAQ, NLSN, NTCT, NUE, NVS, NYT, ODFL, ORI, OSTK, PAG, PENN, PHM, POT, PTEN, RCL, RS, RTIX, RTN, RYL, SCG, SFE, SIAL, SILC, SIRI, SONS, SQNS, STC, SWK, TKR, TROW, TWC, TWI, UA, UAL, UFS, UPS, USG, UTEK, VDSI, VIVO, VLY, VZ, WCC, WM, WYN, YNDX,ZMH
Apr. 22, 2014, 5:15 PM
- Some S&P energy stocks set new 52-week highs today, including Hess (HES), EQT and Baker Hughes (BHI), as the sector begins to catch up to the hype about the U.S. energy renaissance.
- Analysts say oil and gas drillers are just starting to reap the benefits of an ancillary boom in energy-related technology and innovation; RBC Capital sees bullish prospects for rig companies, adding that drillers such as Helmerich & Payne (HP), Patterson-UTI (PTEN) and Nabors Industries (NBR) are best positioned to capitalize on the boom.
- BofA/Merrill's Stephen Suttmeier offers a technical set-up, seeing energy poised for a breakout similar to Oct. 2010, when the sector moved above its 13-, 26- and 40-week relative moving averages and outperformed for another six months.
- ETFs: XLE, ERX, OIH, VDE, ERY, FCG, XOP, DIG, DUG, GASL, FRAK, XES, IYE, IEO, IEZ, GASX, PXE, PXJ, PXI, PSCE, FENY, RYE, FXN, DDG
Mar. 7, 2014, 5:52 PM
- YPF says Q4 profit surged 88% to 1.9B Argentine pesos ($241M) on higher revenue from sales and production, beating analysts’ estimates.
- YPF also says it boosted crude production by 6.3% Y/Y while natural gas output rose 10.2%.
- YPF produces ~35% of Argentina's oil and gas and accounts for more than half of the fuel sold in the country.
- Earlier this week, YPF said it signed two contracts totaling ~$1.2B to lease 15 drilling rigs to develop Vaca Muerta, which contains an estimated 27B barrels of shale oil; Helmerich & Payne (HP) will provide 10 of the rigs.
Mar. 5, 2014, 10:38 AM
- Helmerich & Payne (HP +0.8%) says it secured drilling contracts with Argentina’s YPF for 10 rigs to be deployed in the country’s Vaca Muerta shale play.
- HP plans to deploy existing FlexRig rigs from the U.S. under five-year contracts, with the first rig expected to start operations in Q4 and full operation of all rigs by Q2 2015.
- The total value of the contracts is not disclosed, but HP says the award boosts its Argentina rig count to 19 units in “one of the most promising unconventional plays outside the U.S.”
HP vs. ETF Alternatives
Helmerich & Payne Inc is engaged in contract drilling of oil & gas wells for others in the ownership, development & operation of commercial real estates. Its business comprises of three reportable segments: U.S. Land, Offshore & International Land.
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