Helmerich & Payne Inc HP
Q4 2012 Earnings Call Transcript

Transcript Call Date 11/15/2012

Operator: Good day, everyone and welcome to today's program. At this time all participants are in a listen-only mode. Later, you will have an opportunity to ask questions during the question-and-answer session. Please note this call maybe recorded.

It is now my pleasure to turn the conference over to Juan Pablo Tardio, Vice President and CFO of Helmerich & Payne.

Juan Pablo Tardio - VP and CFO: Thank you, and welcome everyone to Helmerich & Payne's conference call and webcast corresponding to the fourth year and fiscal year end of 2012. With us today are Hans Helmerich, Chairman and CEO and John Lindsay, President and COO.

As usual, and as defined by the U.S. Private Securities Litigation Reform Act of 1995, all forward-looking statements made during this call are based on current expectations and assumptions that are subject to risks and uncertainties as discussed in the Company's Annual Report on Form 10-K and quarterly reports on Form 10-Q. The Company's actual results may differ materially from those indicated or implied by such forward-looking statements.

We will also be making reference to certain non-GAAP financial measures such as segment operating income and operating statistics. You may find the GAAP reconciliation comments and calculations on the last page of today's press release.

I will now turn the call over to Hans Helmerich.

Hans Helmerich - Chairman and CEO: Thank you, Juan Pablo. We are pleased to report record revenues and all-time high net income for 2012 fiscal year. During the year, they experienced substantial headwinds across the oilfield service sector in terms of volatile energy prices and a sharply declining gas directed rig count. It's a nice tribute to our people and their dedication that allowed us to post several all-time high marks. For example 2012 was also our best safety year ever as the Company continues to achieve the lowest recordable injury rate by wide margin as compared to the industry and our largest competitors.

Additional manufacturing and operating performance achievements set new standards during 2012 and acted to further underscore the Company's organizational competencies and competitive advantages. Speaking of organizational competency, it's easy to focus on FlexRigs on the number side of the equation and overlook the primary role that our folks play in our continuing success, but in fact this is very much a people business. We are convinced that a strong culture is our most sustainable strategic advantage. We think of culture as the business of encouraging genuine buying Company-wide of our shared values, touch tones, such as integrity, safety, innovation, team work and then providing the framework in the systems, with the tools to see those values translated into improved field performance long-term value creation.

Our ability to recruit and retain the best people is the top priority to building on our success going forward. The proof shows up in lots of ways. Here is one interesting snapshot, at a recent Company service award dinner, we recognized the loyalty of some of our long service employees, listened to the totals regarding our on the ground experience. In 2012, we have 911 employees with 10 or more years with H&P. We have a 198 with 20 years or more and then 69 with 30 years or more. Those may be the numbers we're most proud of today.

Read our Earnings Call Transcript disclaimer.
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