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Helmerich & Payne Inc HP

Morningstar Rating
$38.99 +0.60 (1.56%)
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Company Report

Helmerich & Payne Looks to Maintain U.S. Leadership, Expand Internationally

Helmerich & Payne has maintained the dominant market share in U.S. horizontal land rigs (26%) for over a decade. H&P seeks to differentiate itself in the commoditized drilling services market by staying at the forefront of technological innovation in the space. It was an early adopter of super-spec rigs (AC drive, minimum 1,500 horsepower drawworks, minimum of 750,000 pounds hookload rating, 7,500 psi mud circulating system, and multiple-well pad capability), which now compose the majority of its operating fleet. H&P is the largest super-spec provider in the industry, representing about one-third of total super-spec rigs available in the United States.

Price vs Fair Value

HP is trading at a 22% discount.
Price
$38.99
Fair Value
$25.00
Uncertainty
Very High
1-Star Price
$39.50
5-Star Price
$16.00
Economic Moat
Fydw
Capital Allocation
Mftxwtjm

Bulls Say, Bears Say

Bulls

Successful implementation of automation technology will help lower drilling costs via increased drill efficiency and decreased labor expenses, ultimately lifting profit margins over time.

Bears

An increasingly commoditized rig industry will make it very challenging for H&P to return to (let alone maintain) profitability levels reminiscent of the mid-2010s.

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News

Trading Information

Previous Close Price
$38.39
Day Range
$38.6539.41
52-Week Range
$30.4146.55
Bid/Ask
$38.20 / $39.60
Market Cap
$3.85 Bil
Volume/Avg
937,463 / 1.3 Mil

Key Statistics

Price/Earnings (Normalized)
9.72
Price/Sales
1.39
Dividend Yield (Trailing)
4.64%
Dividend Yield (Forward)
4.31%
Total Yield
11.27%

Company Profile

Helmerich & Payne maintains one of the largest fleets of land drilling rigs in the U.S. The company's FlexRig line is the leading choice to drill horizontal wells for production of U.S. tight oil and gas. H&P is present in nearly every major U.S. shale play and also has a small but growing presence internationally.
Sector
Energy
Industry
Oil & Gas Drilling
Stock Style Box
Small Value
Total Number of Employees
6,200

Competitors

Valuation

Metric
HP
PTEN
HAL
Price/Earnings (Normalized)
9.727.6411.35
Price/Book Value
1.391.003.37
Price/Sales
1.390.791.40
Price/Cash Flow
5.193.068.10
Price/Earnings
HP
PTEN
HAL

Financial Strength

Metric
HP
PTEN
HAL
Quick Ratio
1.571.161.27
Current Ratio
2.111.412.06
Interest Coverage
33.106.696.68
Quick Ratio
HP
PTEN
HAL

Profitability

Metric
HP
PTEN
HAL
Return on Assets (Normalized)
9.46%7.45%11.77%
Return on Equity (Normalized)
15.09%12.24%32.42%
Return on Invested Capital (Normalized)
12.18%9.95%18.20%
Return on Assets
HP
PTEN
HAL
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Oil & Gas Drilling Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
NE
Noble Corp PLC Class AGvwc$6.2 Bil
PTEN
Patterson-UTI Energy IncGpby$4.8 Bil
RIG
Transocean LtdQbhb$4.1 Bil
SDRL
Seadrill LtdRhckz$3.2 Bil
BORR
Borr Drilling LtdKrt$1.5 Bil
DO
Diamond Offshore Drilling IncTmk$1.2 Bil
ODFJF
Odfjell Drilling LtdDszy$984.8 Mil
PDS
Precision Drilling CorpVfyl$884.7 Mil
NBR
Nabors Industries LtdFcgjkx$773.2 Mil

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