Newspaper article THE JOURNAL RECORD

Tulsa-Based H&P Posts Record 1Q Earnings

Newspaper article THE JOURNAL RECORD

Tulsa-Based H&P Posts Record 1Q Earnings

Article excerpt

Helped by higher drilling demand from energy companies, Helmerich & Payne Inc. on Thursday said profits for the first fiscal quarter ended Dec. 31 rose 11 percent.

The Tulsa-based drilling company reported record first-quarter earnings of $159.6 million, or $1.48 per diluted share, up from $144.3 million, or $1.32 per diluted share, for the first quarter of the previous fiscal year.

H&P as a contractor has the best of both crude oil and natural gas, said M. "Jake" Dollarhide, CEO of Tulsa-based Longbow Asset Management.

"As a contractor, they do not have to worry about retooling or switching from gas to oil," Dollarhide said. "They are able to take advantage of their customers switching from gas to oil."

H&P also announced agreements to build and operate three additional FlexRigs in the United States with two exploration and production companies. The rigs will be built under multi-year contracts and are expected to generate economic returns for the company, said Chairman and CEO Hans Helmerich during a conference call with analysts.

"Including the new builds announced today, five contracted FlexRigs remain to be delivered," Helmerich said.

Once the rigs are delivered, HP's global fleet will reach 299 FlexRigs.

Going forward, exploration and production spending plans appear poised for increases as H&P's customers remain focused on innovative technology, Helmerich said.

"Our competitive advantages are aligned with this ongoing industry transformation and should allow us to continue to expand our market share while sustaining dayrates and margins," Helmerich said.

The latest deal is further proof of Helmerich & Payne's leadership in technology, Dollarhide said.

"They were the leader in the shale play for gas a decade ago and remain a leader in the play for oil," Dollarhide said.

It's a great start to what looks like a solid year for the company, "said Katie Michaels, portfolio manager for Tulsa-based Fredric E. …

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