HP

Helmerich & Payne (HP) recently reported quarterly results that combined revenue above expectations and stronger EBITDA with an adjusted net loss, while management outlined a constructive outlook that appears to have sparked fresh attention on the stock. Since that report, Helmerich & Payne’s share price has moved sharply, with a 30 day share price return of 33.29% and year to date share price return of 48.16%. The 1 year total shareholder return of 125.99% points to strong momentum building behind the stock. Scan for other energy drillers showing similar momentum and fundamentals by reviewing the curated 19 high quality undiscovered gems alongside Helmerich & Payne’s recent move. For Helmerich & Payne, a 126% one year total return can signal either a reset in how the market views its drilling platform or a sentiment swing that ran ahead of fundamentals. How does today’s valuation compare with that backdrop? Helmerich & Payne last closed at $44.36, slightly above the most widely followed fair value estimate of $43.20, which frames the current momentum against a modest premium. Read the complete narrative. Want to see what sits behind that fair value for Helmerich & Payne? The narrative leans on steady revenue expansion, a swing to profitability and a rerated earnings multiple. Curious which specific profit and margin assumptions justify that view? The full story breaks down how those forecasts feed into a discounted value using an 8.05% rate. Result: Fair Value of $43.20 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Helmerich & Payne’s heavy focus on U.S. shale and the risk of prolonged industry overcapacity could pressure day rates and undercut the current fair value narrative. Find out about the key risks to this Helmerich & Payne narrative. Analysts see Helmerich & Payne as only 2.7% above their $43.20 fair value. Our DCF model presents a different perspective. On that basis, HP at $44.36 is trading at roughly half of an $89.39 fair value estimate. This raises a key question: is the market underpricing long term cash flows, or are the inputs too optimistic? Look into how the SWS DCF model arrives at its fair value. If the mixed signals around Helmerich & Payne leave you unsure, now is a good time to review the data for yourself and move quickly to your own conclusion. To get a clearer picture of both the potential upside and the concerns raised by recent results, start with a simple breakdown of 2 key rewards and 3 important warning signs. Helmerich & Payne’s story is just one opportunity. Use the Simply Wall St Screener to uncover other stocks that match your goals before the market moves. Target potential mispricings by scanning a 47 high quality undervalued stocks that combine solid fundamentals with attractive valuations. Strengthen your portfolio’s foundation by reviewing a list of solid balance sheet and fundamentals (52 results) that can help support resilience across market conditions. Limit unwanted surprises by focusing on a 82 resilient stocks with low risk scores that scores well on financial health and business stability. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include HP. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

It has been about a month since the last earnings report for Helmerich & Payne (HP). Shares have added about 21.5% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Helmerich & Payne due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Helmerich & Payne reported a third-quarter fiscal 2026 adjusted net loss of 11 cents per share, in sharp contrast with the Zacks Consensus Estimate of adjusted net income of 11 cents. Moreover, the bottom line decreased considerably from the year-ago quarter’s reported profit of 22 cents. This was primarily due to an adjustment made for a gain of $115 million related to the sale of Utica Square and lower-than-expected performance of the company's North America Solutions segment. Operating revenues of $1 billion beat the Zacks Consensus Estimate of $988 million. Sales from Drilling Services beat the consensus mark by 4.4%. However, the figure decreased by $6 million from the year-ago quarter’s level. This was primarily caused by lower year-over-year revenues from the North America Solutions and International Solutions segments. The company distributed approximately $25 million to its shareholders as part of its ongoing dividend program. North America Solutions: Operating revenues of $562.9 million were down 5% year over year, with 142 average active rigs. The top line beat our model projection of $546.1 million. Operating profit totaled $140.3 million compared with $157.6 million in the prior-year period. The reported figure also beat our model estimate of $113.1 million. International Solutions: Operating revenues of $250.1 million decreased 5.9% from the year-ago quarter’s level of $265.8 million. However, the top line beat our projection of $234.9 million. Operating loss reached $54.4 million, compared with the prior-year period loss of $166.5 million. The figure was below our projected loss of $93 million. Offshore Solutions: Revenues of $174.4 million increased 7.8% from the year-ago quarter’s level of $161.8 million. The top line beat our projection of $157.5 million. Operating profit totaled $16.8 million compared with $8.8 million in the year-ago quarter.  The figure beat our estimate of $11 million. As of June 30, 2026, the company spent $200.2 million on capital programs. HP had $204.4 million in cash and cash equivalents, while the long-term debt totaled $1.9 billion (debt-to-capitalization of 41%). Helmerich & Payne’s fourth-quarter fiscal 2026 outlook points to continued strength in North America, more variable international performance and stable offshore operations. For North America Solutions, the company expects direct margin of $245 million to $255 million, with an average of 145 to 151 active rigs, compared with a fiscal-year average rig range of 140 to 144. International Solutions is expected to generate direct margin of $25 million to $45 million on 60 to 70 average rigs, compared with a fiscal-year average rig range of 60 to 66. Offshore Solutions is projected to deliver direct margin of $26 million to $30 million in the fiscal fourth quarter, while full-year direct margin is expected at $113 million to $117 million, supported by 30 to 35 average rigs/management contracts. The “Other” segment is expected to contribute up to $5 million of direct margin. For the full fiscal 2026, HP expects gross capital expenditures of $270 million to $310 million, depreciation of approximately $700 million, research and development expense of about $28 million, Selling, general & administrative expenses of $265 million to $285 million, cash taxes of $150 million to $180 million, and interest expense of roughly $100 million. Overall, the outlook implies a relatively constructive finish to fiscal 2026, led by higher North American activity and margins. It turns out, estimates revision have trended upward during the past month. Currently, Helmerich & Payne has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a score of C on the value side, putting it in the middle 20% for this investment strategy. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending upward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Helmerich & Payne has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Helmerich & Payne belongs to the Zacks Oil and Gas - Drilling industry. Another stock from the same industry, Nabors Industries (NBR), has gained 11.9% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Nabors reported revenues of $814.79 million in the last reported quarter, representing a year-over-year change of -2.2%. EPS of -$2.04 for the same period compares with -$2.71 a year ago. For the current quarter, Nabors is expected to post a loss of $0.40 per share, indicating a change of +89.1% from the year-ago quarter. The Zacks Consensus Estimate has changed -364.7% over the last 30 days. Nabors has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Helmerich & Payne, Inc. (HP) : Free Stock Analysis Report Nabors Industries Ltd. (NBR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Helmerich & Payne (NYSE:HP) and the best and worst performers in the oilfield services industry. Oilfield services companies provide equipment, technology, and services enabling exploration and production activities, including drilling, completion, well intervention, and reservoir evaluation. Their fortunes closely track upstream capital spending cycles. Tailwinds include increased drilling activity during favorable commodity environments, demand for efficiency-enhancing technologies, and growing offshore and unconventional resource development. Headwinds include significant revenue volatility tied to oil and gas price swings and producer spending discipline. Intense competition pressures pricing and margins, while the energy transition may structurally reduce long-term demand. Workforce availability and technological disruption require continuous adaptation. The 26 oilfield services stocks we track reported a very strong Q2. As a group, revenues beat analysts’ consensus estimates by 4.4%. Luckily, oilfield services stocks have performed well with share prices up 11.8% on average since the latest earnings results. Operating the largest fleet of super-spec rigs in North America with technology that can drill horizontal wells over two miles long, Helmerich & Payne (NYSE:HP) provides drilling rigs and crews to oil and gas companies that need wells drilled to extract hydrocarbons from underground. Helmerich & Payne reported revenues of $1.03 billion, flat year on year. This print exceeded analysts’ expectations by 5.4%. Overall, it was a strong quarter for the company with a solid beat of analysts’ EBITDA estimates. Interestingly, the stock is up 38% since reporting and currently trades at $45.92. Is now the time to buy Helmerich & Payne? Access our full analysis of the earnings results here, it’s free. Serving over 150,000 customers from commercial jets to cargo ships to heating oil consumers, World Kinect (NYSE:WKC) procures and delivers fuel and energy products to airlines, shipping companies, trucking fleets, and industrial businesses worldwide. World Kinect reported revenues of $13.59 billion, up 50.3% year on year, outperforming analysts’ expectations by 22.71%. The business had an incredible quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates. World Kinect pulled off the biggest analyst estimate beat in the group. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 1.5% since reporting. It currently trades at $35.73. Is now the time to buy World Kinect? Access our full analysis of the earnings results here, it’s free. Operating exclusively in the Permian Basin—one of America's most prolific oil-producing regions—ProPetro (NYSE:PUMP) provides hydraulic fracturing services that pump high-pressure fluid and sand into oil wells to release trapped hydrocarbons. ProPetro reported revenues of $305.8 million, down 6.2% year on year, falling short of analysts’ expectations by 1.6%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates. Interestingly, the stock is up 6.4% since the results and currently trades at $11.35. Read our full analysis of ProPetro’s results here. Operating what's essentially an airborne taxi service for some of the world's most remote workplaces, Bristow Group (NYSE:VTOL) operates helicopters that transport workers to offshore oil and gas platforms and conduct search and rescue operations. Bristow Group reported revenues of $411.8 million, up 9.4% year on year. This number beat analysts’ expectations by 0.9%. Taking a step back, it was a satisfactory quarter as it also recorded full-year revenue guidance exceeding analysts’ expectations but a significant miss of analysts’ EPS estimates. The stock is down 5.1% since reporting and currently trades at $45.31. Read our full, actionable report on Bristow Group here, it’s free. Operating in over 50 countries from deepwater offshore platforms to remote onshore fields, Expro (NYSE:XPRO) provides equipment and services that help oil and gas companies drill wells, measure production, and maintain well integrity. Expro reported revenues of $393.2 million, down 7% year on year. This result surpassed analysts’ expectations by 3%. However, it was a slower quarter as it logged a significant miss of analysts’ EPS estimates and a miss of analysts’ EBITDA estimates. The stock is up 12.4% since reporting and currently trades at $17.62. Read our full, actionable report on Expro here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Helmerich & Payne, Inc.HP trades at a discount to several sales-based valuation benchmarks after a sharp recovery in operating activity. The discount, though, comes with an earnings profile that remains weak. Cost reductions, asset sales and debt repayment could improve cash generation, while Argentina and offshore work add growth avenues. Persistent losses, Middle East uncertainty and execution demands keep the risk-reward balance from looking decisively bullish. HP trades at 1.05X forward 12-month sales, below the Zacks sub-industry at 3.09X and the Zacks Oils-Energy sector at 1.4X. It also sits below its five-year median of 1.26X, which points to a meaningful relative discount. Image Source: Zacks Investment Research That valuation gap is not enough by itself to make the shares attractive. The company still carries a weaker earnings outlook, so investors must weigh the lower sales multiple against the possibility that profitability takes longer to recover. Fiscal third-quarter 2026 adjusted loss was 11 cents per share, versus the Zacks Consensus Estimate for earnings of 11 cents. Revenues exceeded $1 billion, but the earnings miss showed that better activity has not yet translated into consistent bottom-line strength. Image Source: Helmerich & Payne The consensus outlook remains difficult. Fiscal 2026 earnings are projected at a loss of $1.32 per share, followed by a loss of $2.56 in fiscal 2027, even as sales are expected to rise from about $3.99 billion to $4.26 billion. Management expects enterprise optimization efforts to reduce annualized corporate costs by $40 million by the end of fiscal 2027 and targets more than $160 million of asset-sale proceeds. Fiscal third-quarter free cash flow reached $98 million. HP has already repaid its $400 million term loan ahead of schedule and is focused on retiring the $350 million bond due at the end of 2027. Lower debt and a leaner cost base could expand financial flexibility if operating conditions remain supportive. Argentina is a key growth market, with multiyear contracts expected to lift HP's FlexRig count there to 15 by around fiscal third-quarter 2027. Offshore visibility is another support, with backlog reaching $3.6 billion after a four-year Norway renewal, while a second FlexRobotics package was operating in the Permian. Peer activity shows that these markets remain competitive. Patterson-UTI Energy, Inc. PTEN, a drilling and completion services provider, signed a multiyear agreement to lease two rigs for Argentina's Vaca Muerta. Nabors Industries Ltd. NBR operates a global land-drilling platform and also emphasizes drilling automation and software. Execution risk remains material. Middle East disruptions widened fiscal fourth-quarter international direct-margin guidance to $25 million-$45 million, while fiscal 2026 gross capital expenditures are projected at $270 million-$310 million and cash taxes at $150 million-$180 million. FlexRobotics returns are still not fully disclosed. The valuation discount gives HP some appeal, but the earnings outlook and execution risks argue against treating the shares as a straightforward bargain. The current setup looks better suited to investors willing to wait for clearer evidence of sustained profitability and cash-flow improvement. HP carries a Zacks Rank #3 (Hold), along with a Value Score of C, Growth Score of C, Momentum Score of F and VGM Score of D. The C scores suggest middling value and growth characteristics, while the F Momentum Score and D VGM Score indicate a weaker overall style profile. Those signals support a more selective stance rather than an aggressive bullish call. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Helmerich & Payne, Inc. (HP) : Free Stock Analysis Report Patterson-UTI Energy, Inc. (PTEN) : Free Stock Analysis Report Nabors Industries Ltd. (NBR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Helmerich & Payne, Inc. HP reported a third-quarter fiscal 2026 adjusted net loss of 11 cents per share, in sharp contrast with the Zacks Consensus Estimate of adjusted net income of 11 cents. Moreover, the bottom line decreased considerably from the year-ago quarter’s reported profit of 22 cents. This was primarily due to an adjustment made for a gain of $115 million related to the sale of Utica Square and lower-than-expected performance of the company's North America Solutions segment. Operating revenues of $1 billion beat the Zacks Consensus Estimate of $988 million. Sales from Drilling Services beat the consensus mark by 4.4%. However, the figure decreased by $6 million from the year-ago quarter’s level. This was primarily caused by lower year-over-year revenues from the North America Solutions and International Solutions segments. Helmerich & Payne, Inc. price-consensus-eps-surprise-chart | Helmerich & Payne, Inc. Quote The company distributed approximately $25 million to its shareholders as part of its ongoing dividend program. North America Solutions: Operating revenues of $562.9 million were down 5% year over year, with 142 average active rigs. The top line beat our model projection of $546.1 million. Operating profit totaled $140.3 million compared with $157.6 million in the prior-year period. The reported figure also beat our model estimate of $113.1 million. International Solutions: Operating revenues of $250.1 million decreased 5.9% from the year-ago quarter’s level of $265.8 million. However, the top line beat our projection of $234.9 million. Operating loss reached $54.4 million, compared with the prior-year period loss of $166.5 million. The figure was below our projected loss of $93 million. Offshore Solutions: Revenues of $174.4 million increased 7.8% from the year-ago quarter’s level of $161.8 million. The top line beat our projection of $157.5 million. Operating profit totaled $16.8 million compared with $8.8 million in the year-ago quarter.  The figure beat our estimate of $11 million. HP’s Financial Position As of June 30, 2026, this Zacks Rank #3 (Hold) company spent $200.2 million on capital programs. HP had $204.4 million in cash and cash equivalents, while the long-term debt totaled $1.8 billion (debt-to-capitalization of 41%). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Helmerich & Payne’s fourth-quarter fiscal 2026 outlook points to continued strength in North America, more variable international performance and stable offshore operations. For North America Solutions, the company expects direct margin of $245 million to $255 million, with an average of 145 to 151 active rigs, compared with a fiscal-year average rig range of 140 to 144. International Solutions is expected to generate direct margin of $25 million to $45 million on 60 to 70 average rigs, compared with a fiscal-year average rig range of 60 to 66. Offshore Solutions is projected to deliver direct margin of $26 million to $30 million in the fiscal fourth quarter, while full-year direct margin is expected at $113 million to $117 million, supported by 30 to 35 average rigs/management contracts. The “Other” segment is expected to contribute up to $5 million of direct margin. For the full fiscal 2026, HP expects gross capital expenditures of $270 million to $310 million, depreciation of approximately $700 million, research and development expense of about $28 million, Selling, general & administrative expenses of $265 million to $285 million, cash taxes of $150 million to $180 million, and interest expense of roughly $100 million. Overall, the outlook implies a relatively constructive finish to fiscal 2026, led by higher North American activity and margins. While we have discussed HP’s fiscal third-quarter results in detail, let us take a look at three other key reports in this space. U.S. energy operator APA Corporation APA reported second-quarter 2026 adjusted earnings of $1.89 per share, beating the Zacks Consensus Estimate of $1.85. The bottom line rose from the year-ago adjusted profit of 87 cents. The outperformance was primarily driven by higher realized oil prices and lower year-over-year expenses. Revenues of $2.4 billion were down 8.2% from the year-ago quarter’s sales and missed the Zacks Consensus Estimate by 1.5%, caused by a decrease in natural gas revenues. As of June 30, APA had $444 million in cash and cash equivalents and $3.7 billion in long-term debt, representing a debt-to-capitalization of 34.8%. Magnolia Oil & Gas Corporation MGY reported a second-quarter 2026 net profit of 99 cents per share, which beat the Zacks Consensus Estimate of 90 cents. The bottom line more than doubled from the year-ago quarter’s 43 cents. This outperformance can be attributed to higher oil and NGL prices and growth in overall production volumes. The oil and gas exploration and production company’s total revenues were $479 million, which beat the Zacks Consensus Estimate of $440 million. The top line also increased 50.2% from $319 million recorded in the year-ago period, driven by higher revenues from oil and natural gas liquids (NGL). As of June 30, 2026, Magnolia had cash and cash equivalents of $295.9 million. The company had long-term debt of $393.6 million, reflecting a debt-to-capitalization of 15.5%. Permian Resources Corporation PR reported second-quarter 2026 adjusted earnings of 69 cents per share, beating the Zacks Consensus Estimate of 56 cents by 23.2%. The bottom line also increased significantly from the year-ago quarter’s adjusted earnings of 27 cents. This outperformance was primarily driven by higher oil and NGL price realizations. The company’s oil and gas sales of $1.86 billion beat the Zacks Consensus Estimate of $1.64 billion by 13.3%. Revenues also increased from the year-ago quarter’s $1.2 billion, aided by a higher year-over-year contribution from oil sales, NGL sales and purchased gas sales during the quarter. As of June 30, 2026, PR had $131.7 million in cash and cash equivalents. The company had a long-term debt of approximately $3 billion, reflecting a debt-to-capitalization of 20%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Helmerich & Payne, Inc. (HP) : Free Stock Analysis Report APA Corporation (APA) : Free Stock Analysis Report Magnolia Oil & Gas Corp (MGY) : Free Stock Analysis Report Permian Resources Corporation (PR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Helmerich & Payne’s latest quarter drew a positive market response as the company reported revenue above Wall Street’s expectations, despite flat year-on-year sales. Management attributed the performance to increased rig reactivations in North America, expansion in Argentina, and resilient offshore operations. CEO Raymond John Adams emphasized, “Our ability to deliver this margin growth across the largest fleet in the Lower 48 while reactivating 10 rigs demonstrates our differentiated capability.” The quarter also saw improved operating margin, with technology-driven efficiencies helping to offset ongoing volatility in the Middle East and a challenging pricing environment. Is now the time to buy HP? Find out in our full research report (it’s free). Revenue: $1.03 billion vs analyst estimates of $982.1 million (flat year on year, 5.4% beat) Adjusted EPS: -$0.11 vs analyst estimates of $0.10 (significant miss) Adjusted EBITDA: $234.2 million vs analyst estimates of $214.1 million (22.6% margin, 9.3% beat) Operating Margin: 18.2%, up from -12.3% in the same quarter last year Market Capitalization: $4.25 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Derek Podhaizer (Piper Sandler) asked about the drivers sustaining momentum into next year. CEO Raymond John Adams and CFO Todd Scruggs pointed to activity growth across all segments and confidence in sequential EBITDA gains, especially from international operations. Scott Gruber (Citigroup) questioned the sustainability of North America Solutions’ margins amid rig reactivations and performance bonuses. Adams and Executive VP Michael Lennox explained that margin variability was tied to lumpy performance bonuses, but underlying demand and high-spec rig utilization remain strong. Arun Jayaram (JPMorgan) sought clarity on maintaining low capital expenditures as international activity rises. Scruggs stressed discipline, highlighting that fleet upgrades and asset redeployment can support growth without substantial incremental spending. Saurabh Pant (Bank of America) inquired about Middle East opportunities and rig reactivation timelines. Adams expressed optimism about the region’s long-term growth, emphasizing the company’s focus on achieving a $45 million quarterly run rate for international solutions. Keith MacKey (RBC) asked about Argentina’s competitive landscape and the economics of exporting rigs. Adams and Lennox noted that contract margins in Argentina are comparable to U.S. levels, with technology adoption offering further upside. In upcoming quarters, the StockStory team will be watching (1) the pace of rig activations in North America and Argentina and their impact on direct margins, (2) the progress of enterprise-wide cost optimization and its effect on profitability, and (3) the ability to maintain stable operations in the Middle East despite geopolitical risks. The adoption rate of new drilling technologies will also be a key indicator of future competitiveness and margin improvement. Helmerich & Payne currently trades at $42.57, up from $33.28 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 10:00 a.m. ET Vice President of Investor Relations - Kris Nicol President and Chief Executive Officer - Raymond John Adams Chief Financial Officer - Todd Scruggs Executive Vice President of the Western Hemisphere - Michael Lennox Operator: Please stand by. Your program is about to begin. Good day, everyone. And welcome to the H and P Fiscal Third Quarter Earnings Call. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question and answer session. You may register to ask a question at any time by pressing star and 1 on your telephone keypad. You may withdraw your question Please note this call is being recorded. Operators will be standing by if you should need any assistance. It is now my pleasure to turn the conference over to Kris Nicol, Vice President of Investor Relations. Kris Nicol: Welcome everyone to Helmerich and Payne's conference call and webcast for the Third Fiscal Quarter of 26. On today's call, Trey Adams, our President and CEO, will be joined by Todd Scruggs, our Chief Financial Officer and Mike Lennox, Executive Vice President of the Western Hemisphere. Before we begin our prepared remarks, I would like to remind everyone that this call will include forward-looking statements as defined under securities laws. Although management believes that the expectations reflected in such forward looking statements are reasonable, can give no assurance that the expectations will prove to be correct. Please refer to our filings with the SEC for a list of factors that may cause actual results to differ materially from those in the forward looking statements made during this call. Adjusted EBITDA, direct margin, adjusted EPS and free cash flow are non GAAP measures. The most directly comparable GAAP measures and reconciliations are included in our earnings release and investor materials on our investor relations website. Also want to highlight that we have a presentation which supports the prepared remarks from the management team and can be found on the IR website. With that, I will turn the call over to Trey. Raymond John Adams: Thank you, Kris. Hello, everyone. Thank you for joining us. As always, we appreciate your interest in H and P. I will begin with an overview of our quarter results, I will then turn to discuss the broader macro environment, current rig market dynamics, and several key commercial developments. Including a specific update on our activities in the Vaca Muerta in Argentina. Todd will then walk through our financial results, share details on our financial framework, and discuss additional cost optimization actions we are initiating. He will then provide guidance for the fourth fiscal quarter and full year. To wrap up, I will then return to summarize the key takeaways before opening the line for questions. Turning to slide 4 of the presentation. I would like to begin by walking through some of our key highlights from the fiscal third quarter. We delivered strong financial and operational performance during the quarter, led by our operations in the U.S. Adjusted EBITDA was $236 million coming in comfortably ahead of the implied midpoint of our guidance. We also generated strong free cash flows during the quarter. 1 of the most pleasing aspects was exceeding the midpoint of our direct margin guidance in all operating segments, despite ongoing disruption in the Middle East and recent market volatility. We experienced a strong rebound in activity in North America Solutions, averaging 142 rigs during the quarter and direct margins of $241 million. Coming in at the high end of the guidance range. Our talented teams and leading technology continue to deliver for our customers. Generating industry leading margins of $18.7 thousand per day up over $1 thousand a day sequentially. Being able to deliver this margin growth across the largest fleet in the Lower 48 while reactivating 10 rigs during the quarter, demonstrates our differentiated capability to efficiently and economically reactivate rigs. Despite recent commodity price volatility, we have continued to experience strong customer demand and exited the quarter with 147 rigs running in the Lower 48. The combination of a stronger activity landscape and pricing environment has enabled us to increase our fiscal fourth quarter and full year guidance for North America Solutions. In International Solutions, saw a significant sequential increase in direct margins. During the quarter, we delivered a direct margin of $31 million aligning with the high end of our guidance range. This was led by strong performance in our Latin America region, as well as slightly less than expected impacts from the ongoing conflict in the Middle East. We continue to closely monitor developments in the region, and I have just returned from a trip to Saudi Arabia last week. I spent time in the field with our teams, and met with our customer and partners in the kingdom. Despite the ongoing conflict, we continue to do an exceptional job maintaining continuity of operations and navigating supply chain constraints. I left encouraged by our customer interactions, and we are seeing ongoing commercial momentum despite the conflict as we look ahead to 2027. During the quarter, operational activity remained stable in the region. We continued rig reactivations in Saudi, although at a slower pace than planned. We closed the quarter with 4 rigs fully reactivated, and our 5th rig began drilling early this quarter. This takes us to a total of 22 rigs operating in the Kingdom, and we expect to maintain this level of activity through the fiscal fourth quarter. Even with these delays, the broader portfolio continues to perform as expected. We remain confident of achieving the midpoint of the annual rig guidance range we set out at the start of the year. We also remain on course to get the quarterly direct margin run rate to at least $45 million. With strong growth in Argentina offsetting some of the near term conflict related activity changes in the Middle East. Our offshore segment delivered another quarter of strong operational and financial results. Coming in above the high end of our guidance range. This was, again, driven by the achievement of several performance related bonuses during the quarter. In addition to our robust operational performance, we have maintained a clear emphasis on strengthening our balance sheet, and optimizing our enterprise. As we begin preparing for 2027, we are implementing several new initiatives to accelerate debt repayment, optimize our cost structure, and position our portfolio to support the anticipated multiyear growth cycle. Todd will elaborate on these efforts shortly. Looking at the broader macro environment, on slide 5, the Middle East conflict continues to dominate the direction of travel of commodity prices. Over the past 3 months, we have navigated a highly volatile pricing environment. With prices initially retreating to preconflict levels before rebounding as geopolitical tensions once again intensified. Given the volatile situation, visibility remains somewhat limited. Regardless, with the 12-month strip remaining around $70 per barrel, WTI, we are confident that our customers will be using higher planning price assumptions this budget season. Compared to what they used last year. Pointing to upstream spending growth in 2027. Beyond the short term market dynamics, what has not changed is that our belief that the world will require significantly more energy than it consumes today driven by expanding populations and growing prosperity in emerging markets. Along with rising power needs from AI advancements in many developed nations. At the same time, the potential bifurcation of supply and energy security concerns caused by this shock support the view that we may now need even more energy supply. This dynamic strengthens our view that demand for oil and gas will persist and grow for many years to come. And, therefore, increases the need for our global drilling solution. And will now likely bring forward activity sooner than we anticipated. Looking at the rest of this calendar year, we have not seen any deviation from the recent ramp up in drilling activity from private operators. We are on track to surpass 150 rigs during the quarter, which is at least 17 more than we were operating in a recent trough in February. We are confident that our rig activity will persist at these levels throughout the remainder of the year and is likely to continue into 2027 assuming commodity prices remain supported. The majority of these additions have originated from private and small independent operators who typically are more price sensitive. Larger operators have so far focused on adding term additional technology to existing rigs. We are encouraged by this dynamic heading into 2027, as we believe all operators will need to increase drilling programs to maintain, if not grow production. With utilization of the super spec fleet already trending at 95%, we see further tightening of the market, which will be supportive of direct margins. As of today, we have around 10 rigs remaining that can go back to work relatively quickly, for maintenance CapEx levels or less. Importantly, we are not solely reliant on operators in the Lower 48 picking up these rigs. We are seeing strong demand in the Vaca Muerta, Geothermal continues to grow. And we are in several discussions to strengthen our FlexRig footprint in the Middle East and Australia. More specifically in the Middle East, as was the case last quarter, the uptick in activity remains less defined as the conflict continues to create disruption. However, we remain hopeful that more rigs will be required in 2027 with several of the NOCs stating plans to grow production. Lastly, offshore continues to be an area of strength for us, and the market more broadly. With several projects progressing. We are hopeful that we can continue to capture increasing scopes of work as operators seek to maximize output from existing assets. In sum we remain positive on the outlook despite the market volatility created by the ongoing conflict. This will be led by North American Solutions, our most important market, and supplemented by growth in Argentina, and the ongoing recovery in The Middle East. Importantly, we believe this is the early innings of a multiyear growth cycle. Turning to slide 6. On the commercial front, we continue to make progress during the third fiscal quarter. And while market conditions remain dynamic, we are encouraged by the level of customer engagement and the opportunities developing across our diversified portfolio. These opportunities are taking shape in North America Solutions. Where demand from private operators drove 10 incremental rig additions during the quarter. That activity reflects the constructive industry outlook that we discussed earlier. As operators continue to advance development programs despite commodity price volatility. We also continue to advance the deployment of FlexRobotics, with a 2nd package now operating on a rig for a super major customer in the Permian marking another key milestone in the rollout of this innovative technology. As these systems transition from initial commitment to field deployment, they are demonstrating the effectiveness of our automation strategy. And strengthening the competitive advantage of our super spec fleet. Beyond traditional oil and gas, geothermal activity continues to expand. Representing an exciting opportunity to leverage our drilling expertise and technology in a growing adjacent market. We recently signed agreements for 3 additional rigs to work on geothermal projects in The US, Combined with our existing projects in The US and Europe, we are well on our way to hitting a double digit rig count. That commercial momentum extends across our international operations. We are encouraged by the progress in Argentina. Where activity levels and customer engagement continue to increase. We are nearing 100% utilization securing multiyear contracts for our remaining idle flex rigs, available in country as well as contracts for an additional 3 rigs that will be exported from the United States. Operational performance remains a key differentiator for us in the basin. And we are particularly pleased with the results being delivered through our technology portfolio. In The Middle East, activity remained stable as conflict related disruptions began to ease. As a result, we have now resumed operations on the 2 suspended rigs in Bahrain during the fourth quarter. Elsewhere internationally, Australia continues to gain momentum. We are pleased to announce the award for a third rig, which will be exporting from The US as development activity continues to build in the Beetaloo Basin. Lastly, in offshore solutions, we secured a multimillion dollar 4-year contract renewal with an operator in Norway. Strengthening the durability of our offshore backlog. We also continued to advance several opportunities. Including potential multiyear contract renewals and possible rig mobilizations in the Gulf of America. Which could further enhance the resilience and growth prospects of our offshore portfolio. Taken together, these developments reinforce our confidence in the competitive position of our business. We continue to see opportunities to expand our technology footprint deepen customer relationships, and create long term value for our shareholders. Turning to the next slide. I want to spend some time on our operations in the Vaca Muerta. We have been in Argentina since 2 thousand. And currently have 9 rigs operating. Which represents approximately 25% market share. Making H and P 1 of the region's leading drilling contractors. The Vaca Muerta continues to gain momentum and is quickly transitioning into 1 of the most attractive and advanced shale basins outside the Lower 48. Production growth continues to accelerate, with Argentina's oil output recently reaching its highest level in more than 2 decades. The quality of the resource has never been in doubt. But several changes led by the Milei government including the Rigi investment framework, are providing greater fiscal and regulatory stability. Combined with large scale infrastructure investments, including several pipeline and LNG projects, the strengthening long term demand visibility is influencing not only domestic operators, but several IOCs to deploy capital across the basin. Looking ahead, the rig demand outlook remains favorable. Wood Mackenzie's energy analytics forecast Vaca Muerta production could grow by >50% between 2026 and 2030. Supported by an approximately $60 billion of investment in unconventional resource development and infrastructure projects. Growing operator focused on reducing well costs and maximizing drilling efficiency continues to reinforce the value proposition of super spec rigs and advanced technology solutions. Recently, H and P drilled a record setting well in the Vaca Muerta. Completing the well 13% faster than the operator's previous record. While coming in 15% below the operator's budget. The project was executed under a performance based contract. Demonstrating our ability to translate operational excellence into tangible customer value. We also continue to extend our technology leadership in the basin. Recently deploying auto slide drilling automation that enabled 0 manual slides. This success is creating opportunities to expand adoption of H and Ps broader automation and drilling technology suite across customer programs. As operators shift to larger pads, longer laterals, and more repeatable drilling programs, the importance of reliable execution continues to increase. These dynamics play directly into H and P's core strengths. Particularly as the region remains in the early stages of its evolution. In addition to the 9 flex rigs, we are currently operating in Vaca Muerta, We expect to activate our 10th and 11th rigs by the end of August. We have contracted our last flex rig that is in Argentina and then plan to export 3 more from The US later this year. This will take our total to 15 FlexRigs. Which we expect to all be drilling by this time next year with potential to deploy more rigs through 2027. As well as the strong growth, the most important aspect for us is the healthy margin rates we are able to achieve, on longer duration contracts in country. Adding further strength and diversity to our international drilling solutions portfolio. Overall, we view the Vaca Muerta as a basin with substantial long term potential. With proven drilling performance and growing customer demand for super spec rigs, we believe H and P is well positioned to expand alongside the basin. To close, let me briefly recap. Our third quarter performance highlights the momentum we are building across H and P. We delivered a strong set of results. Led by our operations in the Lower 48 where we gained share and increased margins. Latin American offshore also made strong contributions, alongside ongoing resilience in the Middle East. This strong performance is a testament to our teams around the world. And I want to thank them for their dedication and commitment to H and P. And to our customers. We appreciate the continued partnership. On that positive note, I will now hand it over to our new CFO, Todd Scruggs, to walk you through our financial results, our updated financial framework, and our guidance for the fiscal fourth quarter and full year. Todd Scruggs: Thank you, Trey. I will start by reviewing our third quarter financial results and share details on the performance of our segments. As this is my first earnings call after stepping into the CFO role, I also want to provide an update on our financial framework as well as several projects we will be embarking on across finance and the broader organization to accelerate our enterprise optimization initiative. I will conclude by outlining our guidance for the fiscal fourth quarter and full year before handing it back to Trey. Turning to slide 9. We delivered strong financial and operating results in the quarter. While continuing to navigate the dynamic situation in the Middle East. During the quarter, the company generated revenues of over $1 billion, up 11% sequentially. We generated $236 million of adjusted EBITDA, and exceeded the midpoint of our direct margin guidance in all operating segments. On EPS, we reported a net profit of $0.74 per diluted share, These results were supplemented by the gain from the sale of Utica Square. Absent this and other select items, we recorded a loss of $0.11 per share. Gross capital expenditures for the third quarter were $70 million which continued to trend below anticipated spending levels. This was attributable to the reordering of capital expenditures from the third to the fourth quarter in NAS as well as delayed expenditure on rig reactivations in the Middle East. Free cash flow during the quarter came in strong at $98 million Let me now turn to our North American Solutions segment on Slide 10, which was a particular highlight this quarter. We experienced a stronger than anticipated ramp up in activity averaging 142 contracted rigs during the third quarter. Coming in above the midpoint of our activity expectations. Segment direct margin for North America Solutions was $241 million also exceeding the high end of our guidance range. The most impressive aspect of this result was our direct margin of $18.7 thousand per day up over $1 thousand per day sequentially, led by strong pricing and performance related bonuses during the quarter. We also saw operating cost per day improve despite absorbing the recommissioning cost of 10 rigs. We added back more rigs at higher margins for a lower cost than anyone else in the industry. In addition to the 10 rigs I just mentioned, we still have enough capacity that can be reactivated at or below our $1 million maintenance capital level to reach 160 rigs operating in the lower 48. But as Trey pointed out, some of these rigs could also go to Argentina or beyond. Turning to international solutions on slide 11. The segment generated $31 million in direct margins. Coming in at the high end of our guidance range. The Vaca Muerta, in particular, was an area of strength during the quarter. In the Middle East, we continued to navigate the dynamics around the ongoing conflict. During the quarter, our rigs in Iraq and Bahrain remained suspended, and we faced further delays in the reactivation of our rigs in Saudi. As of today, we have 5 of the reactivated rigs turning to the right, taking us to a total of 22 rigs operating in the country. As Trey mentioned, we now expect to maintain that average throughout the balance of the fiscal year. Despite these challenges, we experienced a lower impact from the conflict on our direct margins than we expected as travel routes and logistical challenges incrementally eased throughout the quarter. Lastly, with our 12, we generated a direct margin of $29 million during the quarter. Which also came in ahead of the high end of our guidance range. We had 3 active rigs and 30 management contracts in operation during the strong performance of our offshore segment was led by several performance related bonuses that the teams achieved across our offshore fleet. We remain excited about this business and the consistent and stable results that it delivers. It requires minimal capital, generate steady cash flow, and continues to provide strong diversification in our portfolio. Turning to slide 13, I want to provide an update on our financial framework and some of the details around our enterprise optimization initiatives, which includes several projects we are working on across our global organization. This includes a broad spectrum of initiatives with the aim of making H and P a simpler and more profitable business. Many of you will welcome the news that we will also be examining ways in which we can simplify the way we report as well as the timing of our fiscal year end. With regard to our balance sheet, our focus remains unchanged. My top priority is to continue to drive our leverage towards 1 turn of net debt to EBITDA. In a relatively short time, we have made great progress. Paying off our term loan of $400 million ahead of schedule and we are now focused on retiring our $350 million bond due at the end of 27. I am eager to accelerate this program wherever possible. Over the coming quarters, we will be streamlining our central functions reducing duplication, and deploying a standard operating model for all regions as well as harmonizing our ERP systems. We expect to see significant operational and financial benefits from this exercise. And anticipate reducing our corporate costs by an annualized $40 million by the end of 27. We are also looking at ways to further reduce our overhead costs, which will have a positive impact on our direct margins. Additionally, there are several remaining areas of our portfolio and operations that we are looking to streamline and simplify. We will continue to exit noncore geographies and monetize assets where possible. Collectively, these initiatives will now help us raise over $160 million from asset sales which we are targeting to complete by the end of fiscal 2027, if not sooner. Finally, we are also conducting a thorough review of our working capital and inventory management practices. To unify processes and enhance our free cash flow generation. All of these actions, when coupled with growing EBITDA and free cash flows and an improving market backdrop, will enable us to quickly delever and reach our 1 turn of net debt to EBITDA target. At that point, our optionality to maximize shareholder value through effective capital allocation increases significantly. Turning to slide 14, I want to provide a bit more detail on how we think about our capital allocation evolution. Particularly related to shareholder returns and capital expenditures. On the left hand side of the slide, we are showing the current state which will take us through the end of 27. Our base dividend is a core element of our shareholder return strategy, and we are very proud that we have been able to consistently pay a dividend for 34 years. During this deleveraging phase, we will maintain our dividend, which accounts for around $100 million per year of spending. Beyond the dividend, our capital allocation is focused on the balance between capital investment and debt repayment in the near term. As illustrated on the chart, we break out our capital investment into 3 categories. Maintenance CapEx is the minimum amount of capital we need to allocate to keep our rigs running in the field. Based on today's activity levels and average maintenance CapEx costs, our total spend amounts to around $250 million annually for maintenance capital. Importantly, we feel confident that we can maintain this level of spend for several years. Beyond that, we have what we call sustaining CapEx. These are investments we consistently make to our rig fleet to maintain their technology and performance leadership. Examples of this type of expenditure include walking conversions, larger setbacks, heavier hook loads, and rig floor automation packages. We plan to invest $50 million every year in these enhancements. The last category considers growth projects which may include new country entries or the expansion of fleets in key growth markets. We also include flex robotics within this category. To start with, all these investments must meet a return threshold. Beyond that, we assess the duration, scalability, and durability of the geography, and customer relationship. Lastly, our ability to drive technology adoption and performance based contracts are also key considerations. As we approach our deleveraging target, we expect to have significantly more financial flexibility from 2028 onwards. Which we highlight on the right hand side of the chart. This will be achieved through the discipline of our capital investment programs higher cash flow from operations, and the retirement of our $350 million bond. This frees up significant capital, which can be deployed most effectively to maximize shareholder value through a balanced combination of dividends and buybacks, further strengthening the balance sheet, and disciplined investment in growth projects. Now I want to transition to our fourth quarter and full year guidance on slide 15. Looking ahead to the fourth quarter for North America Solutions, we expect our operating rig count to show solid sequential growth as we see no deviation from the activity ramp we experienced in the Lower 48 in the third quarter. As a result, we expect direct margins in our fourth quarter to average between $245 and $255 million based on an anticipated rig count of between 145 and 151 rigs during the quarter. Given the better than expected result in the third quarter and our upgraded guidance for the fourth quarter, we are also raising our full year rig count range to 140-144 rigs. As we have said, we see continued momentum for the U.S. Lower 48 into 2027 and feel comfortable at least maintaining similar levels of activity and margins across the portfolio, assuming commodity pricing remains supportive. For international, we anticipate the rig count to average between 60 to 70 rigs in the fourth quarter and we remain confident in achieving the midpoint of the annual rig guidance range we set out at the start of the year. We are seeing increased levels of activity in Latin America as we move toward full utilization of the fleet in Argentina offsetting some of the activity changes we have experienced in the Middle East. We expect International Solutions to generate a direct margin between $25 and $45 million. The wider range captures the spectrum of potential outcomes regarding the ongoing conflict in The Middle East. For offshore, we anticipate an average of 30 to 35 management contracts and operating rigs. We expect the direct margin rate in the fiscal fourth quarter to range between $26 million and $30 million Given the strong performance year to date, we are also upgrading the full year guidance range to $113 million to $117 million CapEx came in lighter than expected during the quarter largely due to the timing of spending on several projects across the business. This variance primarily reflects deferred spending rather than any change in project scope, and we therefore expect capital expenditures to increase sequentially in the fourth quarter. Importantly, we expect to remain within our guidance range of $270 million to $310 million for the full year. Reflecting the tax impact of the Utica Square sale and stronger financial performance in North America Solutions, we have increased our cash tax outlook and now expect payments to range between $150 to $180 million. In summary, the positive tailwinds from activity and direct margins from the third quarter are expected to carry forward into the fiscal fourth quarter. Despite some project timing shifts, which impact capital expenditures the fundamentals of the business remain strong. We continue to believe we are well positioned to capitalize on continued customer demand and carry this momentum into fiscal 27. And with that, I will hand it back to Trey for some closing remarks. Raymond John Adams: Thank you, Todd. Before we open the line for questions, I would like to leave you with a few key takeaways. We delivered a strong third quarter. Exceeding the midpoint across all 3 operating segments, and demonstrating the strength of our people, technology, and diversified portfolio. Activity in The US Lower 48 continues to build. Our international business is benefiting from growing opportunities in Latin America, and offshore remains a consistent source of value and cash flow. While calendar 2026 got off to a slow start, we were confident that we had the discipline, the portfolio, and the customers to make up the lost ground. Despite all the challenges and volatility created by the conflict in the Middle East, we are well positioned to deliver full year results which exceed original expectations. Looking ahead, remain optimistic on the outlook for our business in 2027 and beyond. Supported by our advanced technologies, and strong operational execution. At the same time, we are excited by the value we can unlock from our enterprise optimization initiatives. All with the aim of simplifying our business increasing profitability, and maximizing the long term value we create for shareholders. Building upon this positive momentum, we hope to see you at our Technology Day on October 8th. Which we are hosting here in Tulsa. We will be providing a deeper look at our FlexRobotics technology as well as showcasing some of the critical technologies and solutions that truly differentiate H and P. That concludes our prepared remarks. And we will now turn it back to the operator for questions. Operator: Thank you. Once again, to ask a question, please limit yourself to 1 question. We will pause for just a moment to allow everyone a chance to join the queue. Thank you. We will take our first question from Derek Podhaizer with Piper Sandler. Please go ahead. Derek Podhaizer: Hey. Good morning, Trey and Todd. Just wanted to start things off here with maybe walking through the different puts and takes for your fiscal Q4 guide and how you expect to sustain momentum that you are building into fiscal 27. If you can hit on, NAS, international and offshore, I think that would be great. Raymond John Adams: Yeah. Good morning, and thank you for the question. I will start and then turn it over to Todd. To give a bit more color on the full year and 4Q guide. But in general, the sequential improvement that we are seeing from Q3 to Q4 in our implied EBITDA guide it is approximately 5% Q-over-Q. Is really underpinned by activity growth across the business. And we have talked a lot about North America solutions. The activity adds that we have seen throughout that segment. Through Q3, and we are continuing to see rig count grow and be additive into Q4, it is also the same story across international solutions today. We have seen great growth in LatAm and really proud of the rig reactivation we have been on in the Middle East. And then the third segment, our offshore segment, just provides such stability and durability to our portfolio. And so really proud of the performance contract journey and customer partnerships we have across that segment. All 3 of the segments together are what is guiding us up as we look through Q3 into Q4. And have been fairly constructive. Before I turn to Todd, just broadly across the market, I would say that customer conversations have been constructive. We are feeling very confident in our Q4. And then obviously, as we look beyond into FY 2027, customer conversation's constructive and a good backdrop for us. Todd Scruggs: Yeah. And thanks, Derek. This is Todd. I do not have a ton to add but I do think there are a couple things that are worth pointing out here. You know, we feel like we can really grow our EBITDA over the next few quarters and into the next couple of years and our fourth quarter guide is kind of emblematic of that where we see continued organic growth in our international solutions portfolio. that is going to be the fastest growing part of the company. And in this case, you know, we are seeing some increased activity in Argentina. We are seeing increased activity in the Middle East, and we think that will continue for a little while, you know, until we get to our $45 million quarterly run rate, which we still have a lot of confidence in getting to. And then similarly, you continue to see sequential improvement in North America. And you know, I think of the $250 million per quarter level as a really good as a really good level of profitability for us to benchmark. You know, we are probably a bit less focused on the exact rig count or things like that and more focused on just making that aggregate dollar amount go up every quarter. And then you continue to see offshore as a very steady, very ratable piece of business for us that we think is gonna continue. And then Trey mentioned this in his prepared remarks, but it is interesting to think about the trajectory into 2027 You know, kind of going into 2026, things felt relatively bearish, but I do think it is quite a different story right now. And we think this fourth quarter is a pretty good marker, you know, for where we are gonna be in 2027. We actually think we will be improving from this base into 2027, but it is a good place to kind of start thinking about where EBITDA levels are gonna be next year. Derek Podhaizer: Okay. Thanks for all that. I appreciate the color. I will turn it back. Operator: Your next question comes from the line of Scott Gruber with Citigroup. Please go ahead. Scott Gruber: Yes, good morning. A lot of good trends going on here for H&P, so good to hear. I want to unpack the outlook for NAS a bit more. You beat on fiscal Q3 margins, but then Q4 is down a bit. How much are activation and reactivation costs weighing on margins? How did-- how much did the performance bonuses contribute to Q3, and how you think about those going forward? And then obviously, rates are rising, so I would expect that to be a bit of a tailwind. What I am really trying to understand is, you know, if we stabilize just call it around 150 rigs, you know, where can margins get to as we start calendar year 27 years? So maybe unpack the kind of near term trends and a little bit of color on kind of where you think you can get margins to in a couple quarters? Raymond John Adams: Yeah. Thank you for the question. This is Trey. I will start, and then I will hand it over to our Executive Vice President of Western Hemisphere and head of global ops support, Mike Lennox, to add in some further detail and more specificity to what we are seeing here in North America But what I would start with is just really proud of the team and really proud of the H and P enterprise overall. Our ability to reactivate 10 rigs in Q3 and sequentially grow margins $1 thousand a day is a huge testament to what we have been building towards here at the company for the past 2 decades. And it is been really, really encouraging to see and, obviously, we knew the machine was in place, but to see it really Hitting top dead center was fantastic in Q3. More broadly with the market, I will touch on the market more broadly in North America, and then Mike can talk about reactivations, pricing, and other aspects. But more broadly across U.S. Lower 48, you know, our rig count and rig additions have been mostly underwritten by private E&Ps. Up to this point in time. You know, as the forward strip has improved and looked more constructive, those private E&Ps have been able to really use risk management tools and hedge positions to be more confident in their forward approach. And so that is been a real positive movement. You know, we have seen similar and kind of consistent behavior from the public side of the fence up to this point in time. We are very disciplined, focused on capital returns frameworks, very focused on their budgets. And we have actually seen some churn from public E&Ps through the summer months. But we are as we as we touched on in our prepared remarks, we are very confident as we look into FY 2027 and the calendar 2027 that the underlying elements and the base price points that our public E&Ps are going to be utilizing for budgets as they go into their budget season. Are just dramatically different in calendar 2027 than they were in 2026. I know I do not need to remind everyone on the call, but crude was crude was in the fifties towards the end of calendar 2025. And so from a budget standpoint, there was not the same backdrop that there is today. The service intensity that is gonna be required, continue to require to maintain production much less grow it in calendar 2027. it is gonna require more rigs, and but just highlight that know, we are we are 95% utilized today from super specs. And so the market is tight. We will we will touch on more about why the market 's tight, but the market continues to be tight just based on U. S. Demand points much less the international demand points for those similar assets. So I will turn it over to Mike to provide a bit more specificity on pricing and some of the reactivations. Michael Lennox: Scott, yeah, thank you for the question. But before I answer it, do want to thank our teams who have taken part in recommissioning all these rigs. And, of course, that is just goes from the sales team to the operational team. To the crews as we train and bring these rigs out and do it safely. And then lastly, to our customers just for believing in H and P and just recognizing the value. As Trey said, you know, in the in Q3, we have reactivated 10 rigs. But since our trough in March, it is actually been 17 rigs. And doing that, while also having improved margins is just fantastic work by the leadership and team that we have in our lower 48. So to answer your question, maybe a little more direct, a lot of it is due to the lumpiness in our bonuses, and some of it is conservatism that is in there, but, >50% of our rigs are on performance based contracts. And as we perform, some of those bonuses come in, again, lumpy. And so that is where you see some of the fluctuation. The rig reactivations has been a small component of changing and affecting the margins We have about 10 more, roughly, that we could bring out at CapEx related costs. And then once we get past that, you know, we would hit another tranche. As Trey had mentioned, our high spec rigs are in demand. We have been upgrading rigs for additional setback, additional hook load, to drill longer and more complex wells for quite some time. And so we are going to continue that trend. And as a result of that, we are very well positioned. We have also invested significantly in technology. And technology matters as we drill these more complex wells. It helps keep the bit on bottom and helps our customers as we add value. Maybe to end it, we have talked before, and it is not a question you asked, but I do wanna highlight it. So we have talked about the robotics. We have 1 rig that is deployed running a robotic system. Our second 1 is rigging up and should start drilling probably this weekend. But that rig is performing very, very well. And as we talked about on previous earning calls, we brought that rig out with the expectation that it would perform at P50. And what we mean by that is at least as well as what our people are performing. And out of the gate, it has exceeded that average And today, for that customer, it is their top rig. And they are running high twenties rig fleet. And it is their number 1 rig in the fleet. And we are going to continue to see demand in that robotics space. Up to, you know, by February having 5 robotic rigs deployed to the field. Scott Gruber: that is great. Appreciate all the color. I will turn it back. Operator: Thank you. Your next question comes from the line of Arun Jayaram with JPMorgan. Please go ahead. Arun Jayaram: Yeah. Good morning, Trey, Todd. I wanted to dig in a little bit on your financial framework You have kind of given us some interesting views on how you see capital you know, progressing beyond, you know, 2026? You highlight you called it $300 million maintenance plus sustaining kind of program. Perhaps for you, Todd, I was wondering how you think about you know, maintaining that level of CapEx just in an environment where your international activity will be growing? Obviously, the trade highlighted all of the growth opportunities in Argentina, but talk just a little bit about that kind of confidence on that because that could unlock a lot of free cash flow if you are able to keep capital that relatively low. Todd Scruggs: Yeah. Thanks for the question, and we thought it was important to lay this out just kind of right now as there is been some change at the company. And as the company is evolving, you know, it is good to just remind everybody of how we are thinking about these things and what our framework is. You know, let me talk about capital in just a second, but equally important to us in the near term are some of the enterprise initiatives we laid out. I think we have got a lot of work to do internally on cost reductions, realigning internally as a global organization, finding ways to operate differently. Think about where our core activity areas are gonna be, and that all ultimately translates the amount of capital spending into the way we can return capital back to our shareholders. So I do not wanna lose sight of that, but you know, on slide 14, you know, where we talk about our capital framework. I think the first observation I would make is that if you think about what H and P has done over the years, we have invested a lot of dollars in creating a uniform fleet with strong operating practices that are safe and efficient and that meet our customers' needs And we feel like that is a really durable advantage for us. And as we think about capital allocation, we do not want our capital allocation to mask the underlying efficiency that our assets have. And so the 2 big takeaways here are number 1, we are gonna remain committed to debt reduction in the near term. We have to hit our 1x net debt to EBITDA target. But number 2, over the longer term, is that we are gonna remain very, very disciplined with our overall spending. You know, we think that we can unlock a lot of growth in the current portfolio without spending a lot of capital. We think there is a lot of areas that we can drive cash flow that do not really require incremental rig counts and rig adds, and so therefore do not really require incremental capital. So that would be 1 thing I would say. Secondly, you I think it is important to remember if you kinda zoom back a couple of years, part of the reason we have made the changes at the company we have made and we have made the acquisitions we made would be to have a global platform where we could grow without having to do major you know, capital spending projects. So if you think about you know, the stuff that Mike's team is doing an amazing job on right now with moving these rigs to Argentina, you know, it does not really look that different than you know, recommissioning a rig in North America and then effectively putting it on a boat. We are not spending tens of millions of dollars on those rigs. I feel like we are really at a point now where we are set up, to generate a substantial amount of free cash flow. And then on the right side of the page, what we are trying to illustrate is that you know, we do not look at that free cash flow as just a new way to spend money. We look at it as you know, a way that we can potentially return more capital to our shareholders And we want that return of capital to be perceived as sustainable and durable. And so what that means by definition is that we cannot just ramp up the spending because there is additional cash there. So you know, I mean, we wanna take advantage of opportunities as they come up, and we are going to,. But the point here is that we do think we are pretty differentiated amongst oil and gas companies in terms of our ability to generate that cash and we are going to make sure that we stay disciplined and true to that, you know, not only over the next year when we need to reduce debt, but over the longer term when we have a little bit more flexibility. Arun Jayaram: Great. Thank you. Operator: Your next question comes from the line of Saurabh Pant with Bank of America. Please go ahead. Saurabh Pant: Hi. Good morning, Trey and Todd. Good morning. Good. Yeah. Trey, I think you talked about your recent visit to Saudi I saw some good pictures. of that on LinkedIn, so thanks for sharing. But just quickly reflecting on that, Raymond, can you talk to what you are seeing in the region, Middle East in general, Saudi in particular, in terms of current operations, new opportunities. I see you have successfully got to 5 of the 7 Saudi rigs that you were supposed to bring back after the suspension, but can you talk to the timeline on the other 2, Trey? And then should we think about opportunities for more rigs beyond the 7 that are coming off suspension? Raymond John Adams: Yeah. Thank you for the question. And, yes, it was great to spend time in Saudi Arabia last week with our teams, our partners, and our customers in the kingdom. You know, I left really encouraged, and I will share kind of a 1 that I thought was funny last week is someone who spent most of their oil and gas career in the U.S. Lower 48 and, you know, from the state of Texas to be told that now I am a real oil man, and we are a real oil company because we are present in Saudi Arabia. It was a big proud marker for us as we as we really grow and become fully fledged there in the kingdom. But, you know, what I wanna highlight is just the strength and resilience of our team. Throughout the GCC and Saudi Arabia. You think about reactivating 5 rigs. You touched on reactivating 5 of the 7 rigs. Reactivating 5 rigs in you know, I think outside of maybe 1 or 2, all of them are reactivated. Since March in the midst of the conflict. it is really a testament to our great teams and our customers' ability to be very stable and reliable, think long term, and provide a great backdrop for us to reactivate those rigs on. You know, the overall environment there and I will hit kind of conventional and, our rig reactivations first, and then I will talk about Jafurah and our unconventional story. But the 5 rigs we have reactivated, you know, right now is a great base load for us. We are at 22 rigs and 22 rigs we have. Obviously, the other 2 rigs, we are not adding to our forecast or our guide into Q4. And right now, we are really focused on the number that Todd had shared as it relates to our financial framework of getting our international solutions segment to $45 million a quarter We believe we have all the cards that we need to play in front of us to achieve that. And so when we think about discipline, simplification, and a focus on our core business, that is where our heads are right now. We are at 22 rigs. We wanna get stability. We wanna create economic viability there in Saudi Arabia. And as timelines manifest and improve on rig 6 and 7, we will be certain to update everyone on those timelines. The Jafurah story in Saudi unconventionals is a really positive 1. And we have 8 FlexRigs running in Jafurah today. I was able to spend time in the field last week with our team members. And see the direct application and some of the mirroring elements to our story, whether it is in the Lower 48 or Vaca Muerta in Argentina, and it provided a lot of tailwinds for me coming off the trip because we are not starting from zero there. We are adding and layering in a lot of benefit accelerating well programs, And our rigs are just so well suited for that environment to unlock efficiencies and do them safely that I believe it is gonna position us very uniquely going forward as that resource base continues to expand and grow. You know, I was thinking about an analog for my trip you know, last week, and was reflecting on early days and some time spent in the Permian Basin. And it reminded me of being in the Permian not too not too long ago where every single day, there is some new 22-inch or 16-inch whole section well record being broken. And, production section record being broken. And, obviously, we are a huge part of that story, and we will be continually, as we look forward, You know, beyond Saudi across the broader Middle East, we see, obviously, today. We have been very encouraged to bring back our 2 rigs in Bahrain. So those have been reactivated as of this summer. And then, you know, our customers in the region do not think short cycle. They are thinking long term. there is been production increase targets that have played out. We are active in those geographies. We are active in those markets, having really constructive conversations with customers. And you layer all that into this unconventional story. And outside of Jafurah, you know, there is a lot of great unconventional stories manifesting across the region. You look at those key IOCs that are participating in those exploration programs, there is a desire and a need for them to draw out exact parallels to what is going on here in the Lower 48. And they are gonna require the similar set of services and service contractors. So I think it positions us well as we look into FY 2027 and calendar 2027 I left very encouraged. But I would just love to reroute us back to our focus of $45 million-plus per quarter for our international solutions segment. And there is a lot that we can do that is right in front of us to increase the economic viability of our current assets that are operating today. Saurabh Pant: Thanks. that is very helpful. Thanks, Raymond. I will turn it back. Operator: Your next question comes from the line of Keith MacKey with RBC. Please go ahead. Keith MacKey: Hi. Good morning, team. Just on Argentina, your presentation, you quoted 25% market share in the Vaca Muerta with 9 rigs today expanding to 15. With that expected unconventional investment in the basin through 2030, how do you see the competitive landscape evolving? And as you export those 3 rigs from The US, can you help us understand the reactivation timelines in margin economics you are writing on those contracts relative to, say, the international average? Raymond John Adams: Yeah. I would be happy to, Keith. And, this is Trey. I will start before turning over to Mike, who will dive into much more detail and color. You know, overall, Argentina has been a real positive for us. I touched on the tightness of the, super spec supply earlier today, and just wanna reinforce that the assets we are talking about going to the Vaca Muerta, the assets we have in country today are very much alike and very similar to what we run and operate here in the U.S. Lower 48. And so it puts us at a great spot when you think about the fleet optimization that we are able to apply, the operational expertise, the technology, And so I am I am very encouraged by it. The customers down there are not wanting to start, you know, at 0. They are wanting to come in with automation apps and technology. So I feel like we are in a great spot, and I will turn it to Mike to add additional color. Michael Lennox: Yes, Keith, thanks for the question. I have been spending a lot more time in country, and just really the opportunity as the infrastructure is being built out. And it is coming online, it is created more and more opportunity for us. So as a result of that, as we have said, yeah, we have a line of sight to have 15 rigs down there. I will tell you, there are a lot of discussions about 15. I think, obviously, we are gonna be disciplined. And understand the economics before continuing to send more, but it is pretty bright for down there. As far as the timeline, you know, within the next 6 to 8 months, those rigs will be, sent down there. As far as the margins on those, they are very much in line with, really what we are seeing here, and they have the opportunity for that because of the technology expansion. They are early innings in using technology down there, and so we have a great opportunity to continue to, send more and do more with technology down there. On the on the cost front, I know Todd had mentioned that in the in comments earlier on a question. But, you know, you think about it is it is rigs that are similar here. So the cost to bring them out, in The US is similar with the exception of obviously have to truck it to the port. It has to be packed, sent on a boat. Sent on a ship to Argentina, and then trucked to the Vaca Muerta. So those costs are added. And then when you think about, the some of the equipment top drives, well control equipment, those have API requirements and timelines of 5 years, which, again, these contracts are on 5 years, we are going ahead and, changing out top drives well control equipment so we do not have to replace it 2 years in. And the beauty of that is the equipment that we are taking off can be repurposed and used domestically. Keith MacKey: Got it. Thanks for the color. Operator: Your next question comes from the line of Eddie Kim with Barclays. Please go ahead. Eddie Kim: Good morning. Just wanted to touch on your involvement in and opportunity in geothermal. You mentioned you recently signed agreements for 3 rigs on geothermal projects in The U.S., and said you have some other projects in the U.S. and Europe. So with these 3-rig adds, how many rigs will you have on geothermal projects in total? And do you expect you will get to double digits maybe by sometime next year? And just in terms of the return profile, just curious how the returns of your geothermal rigs compare to oil and gas? Sort of similar worse, or better? I know there is a lot in there, but any color on that would be great. Raymond John Adams: Yeah. Thank you for the question. And I will start, and Marc and Mike can touch on just more of the details around counts and pricing and why there is a great transference of the technology that we have on our rigs. But, yeah, geothermal has been a great story for us. You know, we have leaned in pretty hard into enhanced geothermal, projects, across the globe. And so we have a good cubby of geothermal projects going in Europe today. You know, several of those have bounced between different countries in Europe. and have been a great stable part of our business. In addition to that, Enhanced Geothermal here in the U.S. Lower 48 has continued to expand But the great thing about geothermal is the fact that there is an efficiency angle and cycle to this that we are able to apply that is directly transferable to geothermal. Transferable from our U.S. Lower 48 fleet. We have been encouraged by the growth. You know, I am going to say a similar line that I said earlier is that this geothermal demand is continuing to pull on the same supply base that the U.S. Lower 48 and the Vaca Muerta is. And so we talk about tightness of supply. This is all very additive to the tightness story that we have been projecting, and we do believe that the market is very tight with super specs right now for Lower 48 adds, geothermal adds, and the Vaca Muerta pull. Michael Lennox: Yeah, Eddie. Maybe to layer in just 6 rigs, in The US operations is kinda what we are we are thinking. there is obviously discussions for more, and, really, that is exciting for us just as you have a concentration of rigs in an area. Obviously, the efficiencies on our side will continue to improve. You know, as Trey mentioned, the application of our rigs is very similar to other basins with technology. Again, it is very, very hot rock, obviously. As well as very hard rock. And so keeping that bid on bottom some of the technology that we have, is very helpful and meaningful for our customers. As far as the margins, again, they are very much in line with the rest of our Lower 48 margins Eddie Kim: Got it. Thank you. Actually, just a clarification. So how many rigs do you have currently in geothermal across both the U.S. and Europe? Raymond John Adams: I think you said 6 in The US. and how many in Europe currently do you have? it is still below the double digit mark, we think that double-digit marker is a good 1 for us to project towards. We are not guiding exactly to that number today. But we think that this geothermal story for us could be you know, call it a mid-continent, you know, Middle of America, Oklahoma style rig activity baseload for us. And it is it is a key part of what we believe we do well, right? Expertise, technology, accelerating well programs, delivering high levels of customer value. Got it. Eddie Kim: Great. It all makes sense. Thanks for the color. I will turn it back. Operator: Due to time constraints, this concludes our question and answer session. Raymond John Adams: I will now turn the call back to Trey Adams for closing remarks. Yes. Thank you to everyone for joining the call today. Operator, you may now close the line. Operator: This does conclude today's call. Thank you for your participation. You may disconnect at this time. Before you buy stock in Helmerich & Payne, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Helmerich & Payne wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,393!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 13, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends Helmerich & Payne. The Motley Fool has a disclosure policy. Helmerich & Payne (HP) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Helmerich & Payne, Inc.? Here are five stocks we like better. Helmerich & Payne exceeded fiscal Q3 2026 guidance across all three segments, with revenue above $1 billion, adjusted EBITDA of $236 million and free cash flow of $98 million. North American drilling strengthened: the company reactivated 10 rigs, exited the quarter with 147 Lower 48 rigs working and raised full-year rig-count guidance; super-spec utilization reached 95%. Deleveraging and cost reduction remain priorities. H&P repaid its $400 million term loan early, targets $40 million in annual corporate-cost savings by 2027 and plans more than $160 million in asset sales while maintaining its dividend. 5 Tech Stocks Holding Their Ground Through the AI Trade Pullback Helmerich & Payne (NYSE:HP) reported fiscal third-quarter 2026 results that exceeded the midpoint of its guidance across all three operating segments, supported by a rebound in U.S. drilling activity, stronger Latin American performance and performance-related bonuses in its offshore business. Adjusted EBITDA totaled $236 million for the quarter, while revenue exceeded $1 billion, up 11% sequentially. The company generated $98 million in free cash flow and reported net income of $0.74 per diluted share. Excluding the gain on the sale of Utica Square and other select items, Helmerich & Payne recorded a loss of $0.11 per share, CFO Todd Scruggs said. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Chips & Clips: Memory Tariffs Rewire Tech Supply Chains President and CEO Trey Adams said the company’s results demonstrated the strength of its operational execution and diversified portfolio despite commodity-price volatility and disruption from the conflict in the Middle East. North America Solutions was a key contributor during the quarter. The segment averaged 142 contracted rigs and generated direct margin of $241 million, reaching the high end of company guidance. Direct margin averaged $18,700 per day, up more than $1,000 per day sequentially. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Bank Earnings Are Roaring, But Wall Street Isn't Ready to Celebrate The company reactivated 10 rigs during the quarter and exited the period with 147 rigs working in the Lower 48. Adams said private and smaller independent operators accounted for most recent rig additions, while larger operators have generally focused on adding contract term and technology to existing rigs. Helmerich & Payne said super-spec fleet utilization is trending at 95%, which management believes could support further market tightening and direct-margin improvement. The company has roughly 10 additional rigs that could be returned to work relatively quickly at maintenance-capital levels or less, although some could be deployed outside the Lower 48. → No Hangover: Revisiting Microsoft One Week After Earnings For the fiscal fourth quarter, the company expects North America Solutions to operate 145 to 151 rigs and generate direct margin of $245 million to $255 million. It raised full-year North American rig-count guidance to a range of 140 to 144 rigs. Management said the second Flex Robotics package has been deployed to a rig for a supermajor customer in the Permian Basin. Mike Lennox, executive vice president of the Western Hemisphere, said the first robotic rig has performed above the company’s initial P50 expectation and is currently the customer’s top-performing rig in a fleet of rigs in the high 20s. Helmerich & Payne expects to have five robotic rigs deployed by February. International Solutions produced $31 million in direct margin during the quarter, also at the high end of guidance. The result benefited from Latin American operations and a lower-than-expected impact from Middle East disruption as travel routes and logistics incrementally improved. In Saudi Arabia, Helmerich & Payne completed four rig reactivations by quarter-end, while a fifth began drilling early in the fourth quarter. The company now has 22 rigs operating in the kingdom and expects to maintain that activity level through the fiscal fourth quarter. Operations on two previously suspended rigs in Bahrain resumed during the fourth quarter. Management said it remains focused on reaching an International Solutions quarterly direct-margin run rate of at least $45 million, with growth in Argentina expected to offset some near-term changes in the Middle East. For the fourth quarter, International Solutions is expected to operate 60 to 70 rigs and produce direct margin of $25 million to $45 million. The wide range reflects possible outcomes related to the ongoing conflict in the region. Argentina’s Vaca Muerta basin was a major area of growth. Helmerich & Payne currently operates nine rigs there, representing approximately 25% market share, and expects to activate its 10th and 11th rigs by the end of August. The company has contracted its final FlexRig already in Argentina and plans to export three more rigs from the United States later this year, which would bring its Argentine fleet to 15 FlexRigs. Management expects all 15 to be drilling by this time next year. Adams said the company recently drilled a record-setting Vaca Muerta well 13% faster than the operator’s prior record and 15% below the operator’s budget under a performance-based contract. The company also deployed AutoSlide automation on a project that enabled zero manual slides. In Australia, Helmerich & Payne received an award for a third rig to be exported from the U.S. for work in the Beetaloo Basin. The company also cited expanding geothermal activity, with agreements signed for three additional U.S. geothermal rigs. Management said it was working toward a double-digit geothermal rig count across the U.S. and Europe, though it did not provide a specific timeline. Offshore Solutions generated $29 million of direct margin, above the high end of guidance, aided by several performance-related bonuses. The segment had three active rigs and 30 management contracts in operation during the quarter. The company secured a multimillion-dollar, four-year contract renewal with an operator in Norway and is pursuing potential multiyear renewals and possible rig mobilizations in the Gulf of Mexico. For the fourth quarter, it expects 30 to 35 management contracts and operating rigs, with direct margin of $26 million to $30 million. Given year-to-date performance, Helmerich & Payne raised its full-year Offshore Solutions direct-margin guidance to $113 million to $117 million. Scruggs said Helmerich & Payne is targeting net debt-to-EBITDA of one turn and has already repaid its $400 million term loan ahead of schedule. The company is now focused on retiring a $350 million bond due at the end of 2027. The company plans to streamline central functions, reduce duplication, standardize regional operating practices and harmonize enterprise resource planning systems. Management expects those efforts to reduce annualized corporate costs by $40 million by the end of 2027. Helmerich & Payne also plans to exit non-core geographies and monetize assets where possible, targeting more than $160 million of asset sales by the end of fiscal 2027, if not sooner. The company said it will maintain its dividend during the deleveraging period, which it estimated at roughly $100 million annually. Gross capital expenditures were $70 million in the third quarter, below anticipated spending because of deferred North America projects and delays in Middle East rig reactivations. The company expects spending to increase sequentially in the fourth quarter but remain within its full-year capital-expenditure guidance of $270 million to $310 million. It increased expected cash-tax payments to $150 million to $180 million, reflecting the tax impact from the Utica Square sale and stronger North American financial performance. Looking ahead, Adams said management remains optimistic about fiscal 2027, citing constructive customer discussions, expected upstream spending growth and demand for the company’s drilling technology. The outlook, however, remains dependent on commodity prices remaining supportive and on developments in the Middle East. Helmerich & Payne, Inc is a leading provider of contract drilling services to the oil and gas industry, specializing primarily in onshore drilling operations. The company designs, engineers and operates a fleet of advanced drilling rigs, including its proprietary FlexRigs, which are engineered for high efficiency, safety and rapid mobilization. Alongside core drilling services, Helmerich & Payne offers well intervention, workover and coiled tubing services, positioning itself as a comprehensive drilling solutions partner for exploration and production companies worldwide. Founded in 1920 and headquartered in Tulsa, Oklahoma, Helmerich & Payne has grown through innovation and strategic expansion to serve diverse hydrocarbon basins. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Helmerich & Payne Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

For the quarter ended June 2026, Helmerich & Payne (HP) reported revenue of $1.03 billion, down 0.6% over the same period last year. EPS came in at -$0.11, compared to $0.22 in the year-ago quarter. The reported revenue represents a surprise of +4.7% over the Zacks Consensus Estimate of $988.44 million. With the consensus EPS estimate being $0.11, the EPS surprise was -200%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Helmerich & Payne performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Average active rigs - North America Solutions: 142 versus 141 estimated by four analysts on average. Average active rigs - Offshore Solutions: 3 compared to the 3 average estimate based on four analysts. Number of available rigs at the end of period - Offshore Solutions: 4 versus 4 estimated by four analysts on average. Number of available rigs at the end of period - International Solutions: 127 versus 130 estimated by four analysts on average. Number of available rigs at the end of period - North America Solutions: 202 versus the four-analyst average estimate of 204. Average active rigs - International Solutions: 65 compared to the 64 average estimate based on four analysts. Operating Revenues- North America Solutions: $562.9 million compared to the $548.37 million average estimate based on four analysts. The reported number represents a change of -5% year over year. Operating Revenues- Offshore Solutions: $174.41 million compared to the $165.25 million average estimate based on four analysts. The reported number represents a change of +7.8% year over year. Operating Revenues- International Solutions: $250.12 million versus $239.85 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -5.9% change. Operating Revenues- Drilling services: $986.88 million compared to the $945.29 million average estimate based on two analysts. The reported number represents a change of -4.9% year over year. Operating Revenues- Other: $47.97 million versus the two-analyst average estimate of $29.01 million. The reported number represents a year-over-year change of +1474%. Segment operating income (loss)- North America Solutions: $140.31 million versus the four-analyst average estimate of $130.81 million. View all Key Company Metrics for Helmerich & Payne here>>> Shares of Helmerich & Payne have returned +13.2% over the past month versus the Zacks S&P 500 composite's +2.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Helmerich & Payne, Inc. (HP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Delivered strong Q3 results led by North America Solutions, where the company reactivated 10 rigs while simultaneously increasing direct margins by over $1,000 per day sequentially. Management attributes margin expansion to differentiated reactivation capabilities and strong demand for super-spec rigs, which are currently trending at 95% market utilization. The Vaca Muerta in Argentina is transitioning into a core growth engine, with production expected to grow by over 50% through 2030, supported by favorable regulatory shifts and infrastructure investment. International performance was bolstered by stable Middle East operations despite ongoing conflict, with 22 rigs currently operating in Saudi Arabia and a focus on unconventional gas development in the Jafurah basin. Strategic positioning is increasingly focused on 'energy security' and rising power needs from AI, which management believes will bring forward global drilling demand sooner than previously anticipated. The company is successfully diversifying into geothermal projects, leveraging hard-rock drilling expertise to secure contracts for what is expected to become a double-digit rig count business. Management expects to reach an international direct margin run rate of at least $45 million per quarter as Argentina activity scales and Middle East disruptions ease. The company is initiating an enterprise optimization program targeting $40 million in annualized corporate cost reductions by the end of fiscal 2027 through ERP harmonization and streamlined central functions. Capital allocation will prioritize reaching a leverage target of 1.0x net debt to EBITDA, primarily by retiring the $350 million bond due in late 2027. Guidance for 2027 assumes higher commodity price planning assumptions by customers compared to the previous year, likely leading to increased upstream spending and drilling programs. H&P plans to export three additional rigs from the U.S. to Argentina by late 2027, bringing the total Vaca Muerta fleet to 15 FlexRigs. Ongoing conflict in the Middle East continues to limit visibility and has caused slower-than-planned rig reactivations in Saudi Arabia. The company is exploring a change to its fiscal year-end and reporting structure to simplify investor communication and align with industry standards. Management plans to monetize non-core assets, targeting over $160 million in proceeds by the end of fiscal 2027 to accelerate debt repayment. Cash tax outlook was increased to a range of $150 to $180 million, reflecting the impact of the Utica Square asset sale and improved domestic performance. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management views $250 million in quarterly EBITDA as a sustainable benchmark for NAS, driven by a tight market for super-spec rigs and performance-based bonuses. While private E&Ps drove recent growth, public operators are expected to increase activity in 2027 as they reset budgets against a more constructive commodity price backdrop. H&P maintains a disciplined $300 million annual budget for maintenance and sustaining CapEx, which management believes can be held steady for several years. Growth in Argentina and the Middle East is being achieved by repurposing existing idle U.S. assets, avoiding the need for heavy new-build capital investment. The first robotic package is currently the top-performing rig in a super-major's 20-plus rig fleet, exceeding 'P50' human performance benchmarks. H&P expects to have five robotic rigs deployed by February 2027, viewing automation as a key differentiator that supports higher pricing and customer retention.

For the quarter ended June 2026, Helmerich & Payne (HP) reported revenue of $1.03 billion, down 0.6% over the same period last year. EPS came in at -$0.11, compared to $0.22 in the year-ago quarter. The reported revenue represents a surprise of +4.7% over the Zacks Consensus Estimate of $988.44 million. With the consensus EPS estimate being $0.11, the EPS surprise was -200%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Helmerich & Payne performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Average active rigs - North America Solutions: 142 versus the four-analyst average estimate of 141. Average active rigs - Offshore Solutions: 3 versus 3 estimated by four analysts on average. Number of available rigs at the end of period - Offshore Solutions: 4 versus 4 estimated by four analysts on average. Number of available rigs at the end of period - International Solutions: 127 versus 130 estimated by four analysts on average. Number of available rigs at the end of period - North America Solutions: 202 versus the four-analyst average estimate of 204. Average active rigs - International Solutions: 65 versus the four-analyst average estimate of 64. Operating Revenues- North America Solutions: $562.9 million versus $548.37 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -5% change. Operating Revenues- Offshore Solutions: $174.41 million versus $165.25 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +7.8% change. Operating Revenues- International Solutions: $250.12 million compared to the $239.85 million average estimate based on four analysts. The reported number represents a change of -5.9% year over year. Operating Revenues- Drilling services: $986.88 million compared to the $945.29 million average estimate based on two analysts. The reported number represents a change of -4.9% year over year. Operating Revenues- Other: $47.97 million versus $29.01 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +1474% change. Segment operating income (loss)- North America Solutions: $140.31 million versus the four-analyst average estimate of $130.81 million. View all Key Company Metrics for Helmerich & Payne here>>> Shares of Helmerich & Payne have returned +8.4% over the past month versus the Zacks S&P 500 composite's +3.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Helmerich & Payne, Inc. (HP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research