Helmerich & Payne, Inc. Q4 FY2025 earnings call

• North America Solutions: Positioned as leading driller in US land market, strong partnerships with customers, focus on efficiency, safety, and technology. Customers demand complex well designs, and H&P's success is rooted in delivering value.
• International Land: Exported 8 FlexRigs to Saudi Arabia, completed KCAD acquisition, making H&P largest active land driller globally. Reactivating 7 rigs in Saudi Arabia, expanding footprint in multiple countries including Saudi Arabia, Kuwait, Oman, etc.
• Offshore Segment: Provides stable long-horizon revenues, 30% share of global platform operations and maintenance, strategically positioned to benefit from offshore investment cycle

North America Solutions

• Fourth quarter averaged 141 contracted rigs, exited with 144 rigs running. Segment direct margin was $242 million, above guidance midpoint. First quarter 2026 direct margins expected to range between $225 million to $250 million.

International Solutions

• Ended fourth quarter with 61 rigs, generated approximately $30 million in direct margins. First quarter 2026 anticipated $13 million to $23 million in direct margin. Full year 2026 rig count expected to average between 56 to 68 rigs.

Offshore Solutions

• Generated approximately $35 million in direct margin during the quarter. First quarter 2026 expected to generate between $27 million and $33 million in direct margin

• 2026 capital expenditures expected $280 million to $320 million, with maintenance, fleet upgrades, and reactivation capital ~$230 million to $250 million.
• Sales, general, and administrative expenses expected $265 million to $285 million with $50 million savings.
• Projected consolidated cash tax $95 million to $145 million, interest expense $100 million.
• Expect reduced capital investment in 2026, focus on capital discipline

• Cyclical nature of oil and gas industry.
• Challenges in acreage quality in unconventional shale plays.
• Uncertainties in market trends affecting rig activity and margins

Q: Saurabh Pant on international rig count and margins A: John Lindsay and Raymond Adams discuss rig reactivations in Saudi, margin improvement expectations Q: Doug Becker on North America revenue and expenses A: Michael Lennox talks about NAS market resilience, rig churn, technology investments Q: Scott Gruber on cash taxes and international margins A: Kevin Vann discusses cash tax benefits and margin improvement expectations Q: Edward Kim on CapEx guidance A: Kevin Vann provides details on CapEx breakdown and margin implications Q: Daniel Kutz on maintenance CapEx by segment A: Kevin Vann and Mike Lennox discuss maintenance CapEx ranges for US and international rigs Q: Donald Crist on international unconventional drilling timing A: Trey Adams talks about timing in Australia, North Africa, etc., and technology transfer Q: John Daniel on fiscal year '26 guidance A: Raymond Adams discusses guidance based on market trends, customer M&A, and drilling efficiency gains