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Helmerich & Payne (HP)
NYSE:HP
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Helmerich & Payne
(NYSE:HP)
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Rating:58Neutral
Price Target:
$35.00
▲(1.01% Upside)
Action:ReiteratedDate:03/07/26
The score is held back primarily by weakened financial performance (TTM net loss and higher leverage), partially offset by resilient operating/free cash flow. Technicals are a notable positive with a strong longer-term uptrend and neutral momentum. Earnings call tone and guidance add support through strong free cash flow, liquidity, and deleveraging progress, while valuation is constrained by negative earnings despite a moderate dividend yield.
Positive Factors
Cash generation and FCF growth
Sustained positive operating cash flow and meaningful TTM free-cash-flow growth provide durable internal funding for capex, debt paydown, dividends and opportunistic investments. This cash-generation cushion supports flexibility through cyclical oil & gas cycles and underpins deleveraging plans.
Deleveraging progress and ample liquidity
Material term-loan repayment and roughly $1.2B total liquidity materially reduce near-term refinancing risk and interest exposure. Continued paydown improves financial flexibility and lowers structural leverage, enabling strategic choices (dividends, tech investment, portfolio moves) over coming quarters.
Technology/automation (FlexRobotics & FlexRig)
Deployment of FlexRobotics and FlexRig-oriented margin gains indicate durable operational differentiation: automation can lower operating costs, improve consistency and raise per-rig margins. Technology-led efficiency supports competitive positioning in high-spec basins and aids long-term margin resilience.
Negative Factors
Profitability deterioration and revenue decline
A sharp drop in revenue and a sizable TTM net loss weaken sustainable earnings power and reduce retained earnings, limiting reinvestment capacity. Persistent or recurring profitability weakness would erode returns, constrain capital allocation, and make cyclical recovery harder to translate into durable margins.
Elevated leverage vs prior years
Meaningfully higher leverage compared with recent years reduces financial flexibility and raises vulnerability to lower activity or cash-flow shocks. Even with equity on the balance sheet, the step-up in net debt increases interest/coverage risk and limits optionality for growth or buybacks over the cycle.
Asset impairments and older/yarded rigs
Write-downs and yarded rigs signal structural fleet aging and potential need for capex or retirements to restore competitiveness. Restart or upgrade costs, lower utilization and the drag from non-productive assets can persistently depress returns and require sustained cash or strategic disposition to normalize margins.
Helmerich & Payne (HP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.46B
Dividend Yield3.24%
Average Volume (3M)1.75M
Price to Earnings (P/E)―
Beta (1Y)0.93
Revenue Growth35.89%
EPS Growth-148.39%
CountryUS
Employees7,000
SectorEnergy
Sector Strength52
IndustryOil & Gas Drilling
Share Statistics
EPS (TTM)-0.15
Shares Outstanding99,849,490
10 Day Avg. Volume1,419,109
30 Day Avg. Volume1,754,184
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)0.80
Price to Sales (P/S)0.59
P/FCF Ratio18.81
Enterprise Value/Market Cap1.54
Enterprise Value/Revenue1.31
Enterprise Value/Gross Profit9.84
Enterprise Value/Ebitda9.13
Forecast
1Y Price Target
$36.73Price Target Upside6.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)0.09
Revenue Forecast (FY)$3.97B
Helmerich & Payne Business Overview & Revenue Model
Company DescriptionHelmerich & Payne, Inc., together with its subsidiaries, provides drilling services and solutions for exploration and production companies. The company operates through three segments: North America Solutions, Offshore Gulf of Mexico, and International Solutions. The North America Solutions segment drills primarily in Colorado, Louisiana, Montana, Nevada, New Mexico, North Dakota, Ohio, Oklahoma, Pennsylvania, Texas, Utah, West Virginia, and Wyoming. It also focuses on developing, promoting, and commercializing technologies designed to enhance the drilling operations, as well as wellbore quality and placement. The Offshore Gulf of Mexico segment has drilling operations in Louisiana and in U.S. federal waters in the Gulf of Mexico. The International Solutions segment conducts drilling operations in Argentina, Bahrain, Colombia, and the United Arab Emirates. As of September 30, 2021, the company operated a fleet of 236 land rigs in North America; 30 international land rigs; and 7 offshore platform rigs. It also owns, develops, and operates commercial real estate properties. The company's real estate investments include a shopping center comprising approximately 390,000 leasable square feet; and approximately 176 acres of undeveloped real estate located in Tulsa, Oklahoma. Helmerich & Payne, Inc. was founded in 1920 and is headquartered in Tulsa, Oklahoma.
How the Company Makes MoneyHelmerich & Payne generates revenue primarily through its contract drilling services, which are billed on a day-rate basis. The company operates a diverse fleet of land and offshore drilling rigs, and its clients include major oil and gas exploration and production companies. The revenue model is heavily influenced by the demand for oil and gas, as well as the pricing environment within the industry. Key revenue streams include day rates for drilling services, which can vary based on rig type, location, and market conditions. Additionally, HP benefits from long-term contracts with clients, providing a stable income stream. The company also engages in the manufacturing of drilling rigs, contributing to its overall revenue through sales to third parties. Strategic partnerships with major energy firms and a focus on advanced drilling technologies further enhance its earnings potential, allowing HP to maintain a competitive edge in the market.
Helmerich & Payne Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Positive
The call presented a largely constructive operational and financial picture: revenue held at $1B, adjusted EBITDA beat at $230M, strong free cash flow generation, meaningful progress on deleveraging (65% of term loan repaid) and clear technology/contract wins (FlexRobotics, FlexRig improvements, geothermal awards). Offsetting items were primarily timing and one-time impacts — ~$103M non-cash impairment, reactivation cost lumpiness shifting into Q2 (and a bit into Q3), short-term North America softness and some offshore seasonality. Management kept full-year guidance intact, trimmed CapEx modestly, and emphasized returning rigs to work, margin improvement in later quarters and a path to pay down remaining debt. Overall, positive operational momentum and balance-sheet repair outweigh near-term timing and impairment headwinds, with management confident in margin recovery later in the fiscal year.Q1-2026 Updates
Positive Updates
Strong quarterly financial performance
Revenue of $1.0 billion (third consecutive quarter at $1B) and adjusted EBITDA of $230 million, coming in ahead of expectations; free cash flow of $126 million for the quarter.
Progress on deleveraging and liquidity
Paid down $260 million of the $400 million term loan (65% repaid) as of end of January; cash and short-term investments of ~$269 million and total liquidity (including revolver) of ~ $1.2 billion; target to repay remaining term loan ahead of schedule (mid-2026).
North America operational strength
North America averaged 143 rigs working and delivered North America direct margin of $239 million with average gross margin above $18,000 per day; management emphasized maintaining ~45%-50% direct margin discipline.
International segment outperformance and Saudi reactivations
International Solutions ended the quarter with ~59 rigs and generated approx. $29 million of direct margin, exceeding the guidance range ($13M-$23M) primarily due to timing of reactivation costs and stronger FlexRig utilization; management expects 7 Saudi rig reactivations (2 masts raised to date) with most reactivations completed by mid-2026 and ~$5M annualized EBITDA contribution per reactivated rig.
Offshore Solutions stability
Offshore segment produced approx. $31 million of direct margin, with 3 active rigs and 33 management contracts (management contracts provide durable, capital-light cash flow); full-year offshore direct margin guide retained at $100M-$115M.
Technology and innovation progress (FlexRobotics & FlexRig)
FlexRobotics has been deployed successfully on 3 pads for a Super Major in the Permian, automating drilling/connections; FlexRig fleet showed meaningful margin improvement in Jafurah and management expects continued margin expansion from FlexRigs (historical fleet contribution cited in the $20M-$25M range).
Geothermal and international contract wins
Contract awards for geothermal rigs in Germany, Denmark and the Netherlands during the quarter, plus another North American geothermal rig in January; additional deployments in Australia and Pakistan and ongoing discussions in Middle East/North Africa.
Capital discipline and cost optimization
Q1 CapEx of $68 million (below sequential run rate) and trimmed full-year gross CapEx guidance to $270M-$310M; SG&A reduced by over $50 million relative to pre-acquisition run rates and line-of-sight on ~$100 million of portfolio divestments.
Negative Updates
Non-cash impairment and GAAP loss
Reported net loss of $0.98 per diluted share for the quarter, negatively impacted by ~$103 million of non-cash impairment and unusual non-cash items; adjusted loss excluding those items was ~$0.15 per share.
Timing/lumpiness from Saudi reactivation costs
Reactive start-up costs shifted partly from Q1 into Q2 (management expects the majority to hit Q2 with some tail into Q3), creating sequential margin lumpiness in International Solutions (Q2 direct margin guide $12M-$22M vs Q1 ~$29M).
North America seasonal softness and moderated demand
North America exit rig count declined 4% quarter-over-quarter (exit 139 rigs) and management expects Q2 average rigs of 132-138 (implying a further short-term reduction); activity remained restrained with smaller/private E&Ps more price-sensitive.
Offshore seasonality and contract roll-offs
Q2 offshore margin guidance is lower ($20M-$30M) due to typical seasonality, lower revenue days and roll-off of some higher-margin rig management contracts (e.g., Angola), causing a sequential step-down.
Asset rationalizations and yarded rig impairments
Impairments and decommissioning relate to a large set of older/idle rigs (referenced ~30 rigs/components) that had been offline since COVID or earlier; accounting-driven write-downs reflect cost/benefit of returning these assets to service.
Argentina churn and timing of technology upgrades
Some rigs in Argentina returned to the yard to be fitted with additional technology packages before redeployment, producing temporary churn and lower near-term utilization in that market.
Macro and commodity-driven caution
Management reiterated that oil-related investment is expected to remain soft in the near term as operators prioritize returns over volume, creating an uneven activity backdrop (North America described as the most restrained market near-term).
Company Guidance
Management guided that Q1 FY2026 produced $1.0B revenue, $230M adjusted EBITDA, a net loss of $0.98/sh (‑$0.15/sh excluding $103M of non‑cash items), $68M CapEx, and $126M free cash flow while paying $25M in base dividends; they’ve paid $260M of a $400M term loan (leaving $140M) with cash & short‑term investments ≈$269M and total liquidity ≈$1.2B. Segment detail and near‑term guidance: North America averaged 143 rigs (exit 139) with $239M direct margin and >$18k/day gross margin (Q2 operated rigs guided 132–138 with Q2 direct margin $205–230M; full‑year rig count range 132–148); International ended Q1 with 59 rigs and ≈$29M direct margin (Q2 rigs 57–63, Q2 margin $12–22M) noting 7 Saudi reactivations (expect ≈$5M annualized EBITDA per reactivated rig and FlexRig fleet upside targeted historically at ~$20–25M annualized); Offshore generated ≈$31M direct margin with 3 active rigs/33 management contracts (Q2 margin $20–30M; full‑year offshore guide $100–115M). They trimmed FY2026 gross CapEx to $270–310M, reported SG&A reductions >$50M vs. pre‑merger, have line‑of‑sight on >$100M of divestments, and reiterated the priority of deleveraging toward ~1x net debt/EBITDA while maintaining the base dividend.Helmerich & Payne Financial Statement Overview
Summary
Overall fundamentals are pressured by a sharp profitability downturn (TTM revenue -18.1% and a net loss of -$302.2M, -4.4% net margin) and higher leverage versus prior years (debt-to-equity ~0.76 in 2025 annual). Offsetting this, cash generation is holding up (TTM operating cash flow $567.0M and free cash flow $179.6M, +54% TTM FCF growth), which provides some stability despite weaker earnings.Income Statement
Profitability has deteriorated sharply: TTM (Trailing-Twelve-Months) revenue is down 18.1% and the company posted a net loss (-$302.2M) with a negative net margin (-4.4%). This is a significant step back from 2023–2024 when the business was solidly profitable (2024 net margin ~12.5%, 2023 ~15.1%). A positive offset is that EBITDA remains meaningfully positive in TTM ($456.3M; ~17.6% margin), suggesting core operations still generate earnings power, but the near-term earnings trajectory is clearly weaker and more volatile.38
Negative
Balance Sheet
The balance sheet shows mixed signals. Equity is sizable (~$2.70B) versus assets (~$6.46B), but returns have turned negative in TTM (return on equity ~-5.8%), reflecting the current loss-making period. Leverage appears elevated in the annual period with debt-to-equity around 0.76 (2025 annual) versus much lower levels in 2022–2023 (~0.21–0.22), implying a meaningful increase in balance-sheet risk versus prior years. Overall, the company has a capital base to absorb volatility, but weaker profitability and higher leverage reduce flexibility.30
Negative
Cash Flow
Cash generation is a relative strength despite weaker reported earnings. TTM (Trailing-Twelve-Months) operating cash flow is solid at $567.0M and free cash flow is positive at $179.6M, with strong TTM free-cash-flow growth (+54.0%). That said, cash flow conversion is less consistent across the cycle: operating cash flow relative to near-term obligations is below 1x in the latest periods (~0.67x), and free cash flow has been volatile historically (including negative free cash flow in 2022). Still, positive and improving TTM free cash flow supports liquidity.62
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.09B | 3.75B | 2.76B | 2.87B | 2.06B | 1.22B |
| Gross Profit | 542.96M | 553.50M | 729.04M | 775.01M | 229.19M | -153.76M |
| EBITDA | 584.78M | 658.78M | 907.46M | 992.98M | 453.69M | 13.81M |
| Net Income | -315.63M | -165.09M | 344.17M | 434.10M | 6.95M | -326.15M |
Balance Sheet | ||||||
| Total Assets | 6.46B | 6.71B | 5.78B | 4.44B | 4.41B | 5.03B |
| Cash, Cash Equivalents and Short-Term Investments | 268.97M | 245.76M | 510.26M | 409.84M | 385.48M | 1.12B |
| Total Debt | 2.03B | 2.32B | 1.86B | 599.95M | 582.34M | 1.08B |
| Total Liabilities | 3.76B | 3.88B | 2.86B | 1.67B | 1.64B | 2.12B |
| Stockholders Equity | 2.60B | 2.72B | 2.92B | 2.77B | 2.77B | 2.91B |
Cash Flow | ||||||
| Free Cash Flow | 179.57M | 116.58M | 189.59M | 438.22M | -38.63M | 54.29M |
| Operating Cash Flow | 567.02M | 542.95M | 684.66M | 833.68M | 233.91M | 136.44M |
| Investing Cash Flow | -2.02B | -1.93B | -458.75M | -322.58M | -167.31M | -161.99M |
| Financing Cash Flow | 14.64M | 66.66M | 986.51M | -463.87M | -734.30M | 425.52M |
Helmerich & Payne Technical Analysis
Positive
34.65
Price Trends
33.46
Positive
30.34
Positive
24.31
Positive
Market Momentum
0.35
Positive
52.38
Neutral
56.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HP, the sentiment is Positive. The current price of 34.65 is below the 20-day moving average (MA) of 34.67, above the 50-day MA of 33.46, and above the 200-day MA of 24.31, indicating a neutral trend. The MACD of 0.35 indicates Positive momentum. The RSI at 52.38 is Neutral, neither overbought nor oversold. The STOCH value of 56.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HP.
Helmerich & Payne Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $2.29B | 5.26 | 18.37% | 3.72% | -20.11% | -26.44% | |
66 Neutral | $4.86B | 20.22 | 7.25% | 1.78% | -12.05% | -46.45% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
65 Neutral | $3.85B | -25.02 | -2.83% | 5.42% | -16.59% | 83.95% | |
64 Neutral | $1.12B | 2.88 | 57.72% | ― | 6.52% | ― | |
58 Neutral | $3.46B | -7.33 | -11.45% | 3.24% | 35.89% | -148.39% |
* Energy Sector Average
HP
Helmerich & Payne
34.65
10.36
42.65%
NBR
Nabors Industries
76.03
32.95
76.49%
PTEN
Patterson-UTI
10.14
2.64
35.16%
TNK
Teekay Tankers
66.20
29.09
78.41%
LBRT
Liberty Energy
30.02
15.72
109.99%
Helmerich & Payne Corporate Events
Executive/Board ChangesShareholder Meetings
Helmerich & Payne Shareholders Approve Board, Pay, Incentives
Positive
Mar 6, 2026
At its 2026 Annual Meeting, Helmerich & Payne stockholders elected the full slate of director nominees, including Chairman Hans Helmerich and other incumbent and independent directors, to serve until the 2027 annual meeting. The voting outcomes indicate solid but varied support across individual board members, with some directors receiving notably higher opposition than others.
Shareholders also ratified Ernst & Young LLP as independent auditors for the fiscal year ending September 30, 2026, reinforcing continuity in the company’s financial oversight. In addition, investors approved the advisory vote on executive compensation and the Amended and Restated 2024 Omnibus Incentive Plan, signaling general backing for Helmerich & Payne’s leadership, pay practices, and long-term incentive structure.
The most recent analyst rating on (HP) stock is a Hold with a $35.00 price target. To see the full list of analyst forecasts on Helmerich & Payne stock, see the HP Stock Forecast page.
Dividends
Helmerich & Payne Declares Quarterly Cash Dividend Payment
Positive
Mar 4, 2026
At a Board of Directors meeting held on March 4, 2026, Helmerich & Payne, Inc. declared a quarterly cash dividend of $0.25 per share on its common stock. The dividend will be paid on June 1, 2026, to shareholders of record as of the close of business on May 18, 2026, underscoring the company’s continuing return of capital to its investors.
The most recent analyst rating on (HP) stock is a Hold with a $35.00 price target. To see the full list of analyst forecasts on Helmerich & Payne stock, see the HP Stock Forecast page.
Business Operations and StrategyExecutive/Board Changes
Helmerich & Payne Announces CEO Retirement and Successor
Neutral
Dec 11, 2025
On December 10, 2025, Helmerich & Payne, Inc. announced that CEO John Lindsay will retire following the 2026 Annual Meeting of Stockholders, with President Raymond John ‘Trey’ Adams III set to succeed him. Lindsay, who has been pivotal in guiding the company through significant industry cycles and technological advancements, will remain as a senior advisor through December 2026 to ensure a smooth transition. Adams, with a strong background in various leadership roles within the company, is expected to continue focusing on performance, safety, and strategic growth, aiming to maintain H&P’s competitive edge and shareholder value.
The most recent analyst rating on (HP) stock is a Hold with a $33.00 price target. To see the full list of analyst forecasts on Helmerich & Payne stock, see the HP Stock Forecast page.
Dividends
Helmerich & Payne Declares Quarterly Cash Dividend
Positive
Dec 9, 2025
On December 9, 2025, Helmerich & Payne‘s Board of Directors declared a quarterly cash dividend of $0.25 per share, to be paid on February 27, 2026, to shareholders recorded by February 13, 2026. This decision reflects the company’s ongoing commitment to returning value to its shareholders, potentially enhancing its attractiveness to investors and solidifying its position in the market.
The most recent analyst rating on (HP) stock is a Buy with a $33.00 price target. To see the full list of analyst forecasts on Helmerich & Payne stock, see the HP Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.