Helmerich & Payne, Inc. Q3 FY2025 earnings call

• John Lindsay highlighted the company's history, KCA acquisition, and progress on debt and cost reduction, emphasizing global strategy and customer focus. - Trey Adams discussed North America Solutions' performance, customer-centric approach, performance-based agreements, and international segment progress, noting digital applications at all-time highs for adoption. - Kevin Vann reviewed Q3 operating results, provided guidance for Q4 and full year 2025, including CapEx revision to $380M-$395M, and discussed cost savings and financial position.

North America Solutions: Averaged 147 contracted rigs during the quarter, with daily margins of $19,860 per day and segment direct margin of $266 million. International Solutions: Ended the third fiscal quarter with 69 rigs working, generated direct margins of $34 million (up $7 million from prior quarter), expected direct margins for Q4 between $22 million and $32 million with average operating rig count 62-66. Offshore Solutions: Generated $23 million in direct margins in Q3, expected $22 million to $30 million in Q4 with average management contracts and contracted platform rigs around 30 to 35.

• Fiscal Q4 North America Solutions: Average 138-144 contracted rigs, direct margins $230M-$250M. - International Solutions: Direct margins $22M-$32M, average rig count 62-66. - Offshore Solutions: Direct margins $22M-$30M, average rigs 30-35. - Full year 2025 CapEx revised to $380M-$395M, cash taxes paid guidance lowered to $220M, interest expense expected $25M in Q4.

• Volatile oil and gas prices due to tariffs, supply dynamics, and geopolitical factors. - Uncertainty regarding timing of suspended rigs returning to work. - Commodity price fluctuations impacting customer spending and E&P activity.

Q: Doug Becker asks about growth in Saudi Arabia and suspended rigs.

A: John Lindsay states growth in Saudi is likely a 2026 timing, and suspended rigs' return timing is uncertain.

Q: Grant Hynes inquires about performance contracts and adopters.

A: Mike Lennox and Trey Adams mention performance contracts are used with all customer types, starting with understanding outcomes.

Q: Eddie Kim asks about North America rig count guidance.

A: Michael Lennox and Trey Adams discuss rig count fluctuations due to commodity prices and customer mix.

Q: Derek Podhaizer asks about KCA incremental activity.

A: John Lindsay explains legacy KCA rigs in Jafurah and gas-focused opportunities.

Q: Ati Modak asks about North America margins and guidance.

A: Kevin Vann and Trey Adams talk about margin outlook, performance-based incentives, and team's ability to exceed targets.

Q: Jeff LeBlanc asks about rig churn in North America.

A: John Lindsay, Arun Jayaram, and Trey Adams discuss churn management and new customer opportunities.

Q: Keith MacKey asks about Q4 rig count guidance.

A: Michael Lennox explains combination of churn management and incremental adds.

Q: Blake McLean asks about customer mindset on crude.

A: Michael Lennox and Kevin Vann discuss varied customer outlooks based on cycle planning and crude price stability.

Q: Marc Bianchi asks about North America margin outlook and international margin dynamics.

A: Kevin Vann and Raymond Adams talk about margin formation, cost efficiencies, and international margin improvement.

Q: David Smith asks about CapEx and cost savings.

A: Kevin Vann discusses CapEx guidance and identified $50 million in cost savings with more to come.