There are 2 articles on this stock available only to PRO subscribers.
From other sites
at Nasdaq.com (Wed, 12:45PM)
Helmerich & Payne, Inc. (HP): New Analyst Report from Zacks Equity Research - Zacks Equity Research Reportat Zacks.com (Wed, 7:00AM)
at CNBC.com (Dec 11, 2014)
at Zacks.com (Dec 10, 2014)
at Zacks.com (Dec 5, 2014)
at CNBC.com (Dec 3, 2014)
at Zacks.com (Dec 3, 2014)
at CNBC.com (Nov 26, 2014)
at Zacks.com (Nov 18, 2014)
at Nasdaq.com (Nov 17, 2014)
- The November 28 sell-off in the oil patch prompted a purchase of Dividend Champion HP.
- Helmerich & Payne is a long-time leader in the business of contract oil drilling.
- The company has benefited from three generations of CEOs from the Helmerich family.
- H&P is well positioned to continue to increase its market share, despite the likely onset of downcycle market conditions.
- The company’s "design, build and operate" business model is a distinct advantage in the equipment replacement cycle.
- The stock is currently trading at close to rig replacement cost.
- The stock price reflects demand levels that would be consistent with shale oil production growth.
- Helmerich & Payne reported its fourth-quarter results on November 13th, with total operating revenues of $3.7 billion and a net income of $168.7 million or an EPS of $1.53.
- Helmerich & Payne is a very solid company with a large exposure in US Land drilling. The company operates 337 rigs in the USA.
- The company believes it will be able to weather this bearish oil cycle; however, the next few quarters may be weak. I recommend HP as a HOLD.
Helmerich & Payne - Appeal Remains Despite Worsening Operating Conditions
- Shares of Helmerich & Payne have seen a difficult weak following an earnings miss as oil prices hit new lows.
- Shares of the rig company have fallen a third from the highs of this summer, yet they are flat so far this year.
- Given the appealing valuation, the excellent long term track record, appealing dividend and strong balance sheet, long term appeal remains.
- HP is a Dividend Champion with an impressive 42-year streak of dividend increases.
- At $85.57 per share, my initial yield on cost is 3.21%.
- Weaker-than-expected earnings caused HP's price to drop to below $79, driving the dividend yield higher to about 3.5%.
High-Yielding Helmerich & Payne Is Not Talked About Much
- The company has a 46.9% 5-year dividend growth rate.
- The company appears to me to be undervalued and has high earnings growth expectations.
- I like the name and will consider it for my IRA when it gets funded.
Helmerich & Payne: Low Oil Prices Give A Good Entry Point
- With the drop in oil prices, HP has given us a solid entry point.
- HP has a 3.22% dividend yield and has increased it for 41 consecutive years.
- HP has a clean balance sheet and is trading at historically average valuations.
Helmerich & Payne: How Long Will The Rig Replacement Cycle Last?
- Understanding the sector’s position in the cycle is critical to anticipating stock price direction of the U.S. Land Drilling stocks.
- Newbuilding is a critical element of the sector’s business model and a significant factor impacting valuations.
- H&P is expected to grow its FlexRig fleet by ~10% in 2015 year-over-year, in line with the company’s growth rate in the previous years.
- The company is well positioned to sustain a high fleet growth rate and capture additional market share for a number of years.
Helmerich & Payne, Inc.: Complete Fleet Analysis And 3rd Quarter Result
- Helmerich & Payne is a top-tier contract driller both on land and offshore, with operations worldwide. Its main land operations are located in the USA, with 292 active rigs.
- The Company has strong financial results with a growing backlog of $4.8 billion; and a low-level long-term debt. The company's technology "FlexRig" is recognized as the best in the industry.
- H&P is a solid business with a definitive future growth potential, especially in the US market and its amazing "shale revolution." H&P is a long-term BUY.
Have Expectations Exceeded Helmerich & Payne's Capacity To Outperform?
- The sell-off after FQ3 earnings likely had more to do with sector-wide profit-taking after a big run than fundamental issues with an otherwise okay quarter.
- HP management believes there's still a need for about 50% more AC drive rigs in the U.S., and the company could be looking at a multiyear opportunity outside the U.S.
- At 6.5x 12-month EBITDA Helmerich & Payne shares are just slightly undervalued; HP remains a great company in the space but not the best value.
- Customer satisfaction data suggest low-key Helmerich & Payne poised to continue to dominate U.S. land markets.
- Pumps remain primed with contracts for dozens of newbuild rigs in the pipeline.
- Fit-for-purpose FlexRig rigs offer customers both performance and cost benefits.
- Company's distinct culture an asset and competitive advantage.
Helmerich & Payne: Staying Bullish As The Company Raises Its Dividend
- On Thursday, June 5, Helmerich & Payne announced it would be increasing its quarterly dividend by 10%.
- Helmerich & Payne's most recent earnings looked strong, but could have been even stronger if it wasn't for the company's international land-based operations.
- Helmerich & Payne's net income as well as its upcoming dividend distributions could demonstrate significant long-term growth especially if its international land-based operations begin to improve.
Helmerich & Payne: Here's Why I'm Staying Fairly Bullish On Shares
- Helmerich & Payne enters into a number of new drilling contracts with Argentina's YPF.
- All ten FlexRig rigs are expected to be fully operational by Q2 2015.
- Recent trend behavior signals a strong buying mode for long-term investors.
Wed, Nov. 26, 10:42 AM
- Seadrill (SDRL -19.2%) shares are plunging after the drilling contractor suspended dividend payments due to "significant deterioration" in the broader markets, and North Atlantic Drilling (NADL -13.8%) suspends its dividend because of the delay of its agreement with Rosneft as well as the weaker market.
- The move is slamming the entire sector, and Wells Fargo says that although SDRL is the first driller to cut its dividend, Diamond Offshore (DO -8.3%) and Transocean (RIG -4.7%) will "ultimately have to follow suit."
- Also: SDLP -6.6%, ESV -4.8%, ATW -4.3%, RDC -3.3%, NE -3.2%, PACD -6.5%, ORIG -2.7%, HP -1.1%, RIGP -2.5%.
- ETF: OIH
Thu, Nov. 13, 12:17 PM
- Helmerich & Payne (HP -7.2%) is sharply lower, despite setting records for revenue, operating income and drilling activity in its just concluded FY 2014.
- Q3 operating earnings for HP's U.S. land segment totaled $258M, up 9.6% Y/Y but down 4.6% from FQ3.
- HP expects to spend $1.4B-$1.7B capex in the next year, and says it is "very well prepared for any type of softening in the market."
- HP also says it entered into agreements to build and operate six new patented FlexRigs in U.S. oil and gas plays; the company has contracted 89 newbuild FlexRigs just in the past 14 months.
Thu, Oct. 23, 3:46 PM
- Diamond Offshore's (DO +5.5%) better than expected Q3 results is providing a lift across the offshore drilling sector today: RIG +3.8%, ESV +4.1%, RDC +2.6%, SDRL +1.9%, PKD +3.6%, HP +3.1%, ATW -0.5%.
- It was a trifecta of good news for DO: Its operating profit of $0.97/share easily topped Wall Street consensus for $0.79, it announced a special dividend of $0.75/share, and a positive fleet status update included two new rigs that had found work with Hess and Petrobras extending contracts on three rigs for three years.
- However, Cowen’s J.B. Lowe is cautious, noting that while that the $400K dayrates with Hess give DO a solid backlog though a soft time in the market, "they represent a new low in leading-edge newbuild ultra-deepwater floaters in this part of the cycle.”
Wed, Oct. 15, 3:59 PM
- Oil services companies are rising after Citigroup issued positive comments on a number of stocks in the sector.
- Baker Hughes earns a Buy rating, seen as having a strong chance of meeting EPS estimates before tomorrow's open given recent contract wins in Norway and Brazil, and the stock's valuation is "compelling."
- Among small- and mid-caps, Citi starts Patterson-UTI (PTEN +5.7%) and RPC (RES +2.3%) with Buy ratings, seeing each as likely to outperform if, as the firm forecasts, crude prices rebound and E&P companies' capital expenditures are higher than expected.
- Citi tags Schlumberger (SLB +0.5%), Halliburton (HAL +2.1%), Weatherford (WFT +1%), Superior Energy (SPN +2%) and Helmerich & Payne (HP +5.1%) with Neutral ratings.
Thu, Oct. 9, 3:43 PM
- Offshore drillers have company now that falling oil prices are hitting the shares of land drillers such as Helmerich & Payne (HP -3.7%), Patterson-UTI (PTEN -6.8%), Nabors Industries (NBR -4.7%) and Seventy Seven Energy (SSE -5%) - with good reason, Susquehanna analysts say.
- The firm views land drillers at considerable risk to estimate revisions, given high current dayrates and significant newbuild construction activity, which could be problematic if lower crude prices persist or a weaker outlook on U.S. E&P spending comes out of earnings season.
- Nevertheless, the firm finds valuations much better in land drilling for now, and it prefers PTEN and NBR at a respective 3.7x and 4.5x 2015 EBITDA.
Thu, Sep. 11, 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.
Wed, Sep. 10, 5:35 PM
Thu, Aug. 21, 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%.
Tue, Jul. 8, 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%.
Thu, Apr. 24, 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.
Thu, Feb. 20, 12:44 PM
- Nabors Industries (NBR +3.4%) extends yesterday's big gains after posting strong Q4 results, and Morgan Stanley thinks shares can move a lot higher, upgrading NBR to Overweight from Equal Weight and raising its price target to $28 from $18.
- NBR has underperformed peers Helmerich & Payne (HP) and Patterson-UTI (PTEN) by ~25% since Q3 2013 on poor operational execution and a muddled corporate strategy, but Stanley sees signs that NBR's North America results have bottomed and execution has gained relative traction.
- The firm also expects operational streamlining to gain momentum over coming quarters and is encouraged by the appointment of a new CFO.
Wed, Feb. 19, 2:23 PM
- Nabors Industries (NBR +11%) surges to 52-week highs after reporting Q4 results that beat Wall Street expectations and offering an optimistic near-term outlook.
- “We believe we’ve seen the bottom” in the drilling rig market, CEO Tony Petrello said in today's earnings call, adding that rig rates increased modestly in Q4 but could rise higher this year.
- Daily rates for highly specialized walking rigs have begun to increase as more U.S. oil companies use multiwell drilling platforms, Petrello says; a turnaround in the drilling business could lift land drillers out of their earnings slump.
- NBR's fleet of ~150 pad-compatible walking rigs saw 94% utilization in the Q4, while demand for its older, mechanical rigs continues to lag behind.
- Most other deepwater drillers also are higher: PKD +2%, HP +1.7%, PDS +1.2%.
Thu, Feb. 6, 3:19 PM
- Recent bearish views on offshore drillers are forgotten for at least a day, as Diamond Offshore's (DO +2%) solid Q4 earnings and revenue beats help lift the entire sector.
- Cowen analysts especially like DO's increased dayrates: Q4 ultra-deepwater average dayrates rose to $350K/day from $284K, deepwater dayrates increased to $402K/day from $380K, and mid-water floater rates rose to $277K/day from $258K.
- However, Wunderlich notes that while the contracts and extensions are a positive, the low duration of the contracts may be the new norm for many of DO’s older lower specification rigs, which will translate to a lower backlog and less revenue visibility.
- ESV +3.4%, SDRL +2.1%, ATW +2.1%, RIG +2%, HP +2%, NBL +1.9%, RDC +1.9%, PKD +1.8%, HERO +1.3%.
Thu, Jan. 30, 2:25 PM
- In addition to issuing a strong set of FQ1 results, Helmerich & Payne (HP +2.1%) announces plans to build and operate nine new FlexRigs for oil and gas companies in the U.S.
- Overall, HP nailed down 35 new FlexRig commitments in the quarter, and its global fleet is expected to total 366 land rigs once the new builds are completed.
- HP now expects to spend ~$950M on capital expenditures during FY 2014, citing increasing demand.
- But HP warns that U.S. land rig rates are set to flatten in FQ2 with rig expenses rising; in the U.S. offshore segment, rig margins and revenue days are set to decline, while rig rates are set to come in flat with revenue days down In international land drilling.
Thu, Jan. 23, 2:18 PM
- Noble Corp. (NE -9.7%) leads a drop in deepwater drilling contractors after saying it is seeing fewer contract opportunities than a year ago and the industry may be experiencing a “pause in the cycle” after years of growth fueled by oil and natural gas discoveries.
- The pace of customer spending growth is expected to be lower this year compared with last year, NE says in its earnings call, and that's with 38 ultra-deepwater rigs around the world looking for work vs. 22 a year ago.
- The market for shallow-water rigs also looks wobbly, as Hercules Offshore (HERO -16.3%) said yesterday in a fleet status report that it suspended plans to reactivate a shallow-water rig in the Gulf of Mexico.
- Also: DO -5.3%, ESV -4.8%, RDC -3.8%, ATW -3.9%, RIG -3.5%, SDRL -2.8%, HP -1.1%, VTG -4.3%, PKD -1.9%.
Tue, Jan. 7, 12:49 PM
- Cowen lowers its estimates on oil service and drilling stocks (OIH) after an internal survey estimates slower than expected 4% growth in exploration and production spending in 2014, presenting a difficult scenario for the stocks to perform well (Briefing.com).
- The firm downgrades and cuts earnings estimates for Baker Hughes (BHI -1.5%), Cameron (CAM -0.4%), Nabors Industries (NBR -2%), CGG (CGG -0.2%), Superior Energy (SPN -1.9%) and Helmerich & Payne (HP +1.1%) to Market Perform from Outperform as it reduces industry growth estimates for 2014 and 2015.
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.
Other News & PR