Helmerich & Payne (HP) AI Stock Analysis

• Market Cap: $2.07B
• Dividend Yield: 4.95%
• Average Volume (3M): 2.29M
• Price to Earnings (P/E): 7.1
• Beta (1Y): 0.87
• Revenue Growth: 25.92%
• EPS Growth: -109.50%
• Country: US
• Employees: 7,000
• Sector: Energy
• Sector Strength: 67
• Industry: Oil & Gas Drilling
• EPS (TTM): 0.22
• Shares Outstanding: 99,439,835
• 10 Day Avg. Volume: 1,964,372
• 30 Day Avg. Volume: 2,285,883
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.72
• Enterprise Value/Revenue: 1.04
• Enterprise Value/Gross Profit: 5.61
• Enterprise Value/Ebitda: 3.98
• 1Y Price Target: $20.89
• Price Target Upside: 3.42% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11

• Rating: 67 Neutral
• Price Target: $19.00 ▼(-5.94% Downside)

Helmerich & Payne's overall stock score reflects a mix of strengths and challenges. The company's strong earnings call performance and positive technical indicators are offset by weak financial performance and valuation concerns. The attractive dividend yield provides some support, but profitability and cash flow issues need addressing for improved financial health.

Positive Factors

Financial Performance

HP's 3Q results showed resilient NAS margins, early signs of international stabilization, and steady offshore contributions.

Financial Strategy

HP expanded its global footprint and it is now a top Middle East driller, important strategic decisions to secure the company's longevity.

Valuation

Valuation is attractive on what are considered conservative estimates.

Negative Factors

Guidance

Guided activity declines in both Int'l and Offshore are more severe than the guided decline in NAS.

Market Dynamics

The outlook also reflects U.S. price weakness, which until now has not been a major factor for HP.

Market Performance

HP underperformed the OIH by 650bps after a poor cash flow quarter and downside guidance.

Helmerich & Payne Business Overview & Revenue Model

Company Description

Helmerich & 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 Money

Helmerich & Payne generates revenue primarily through its drilling services, where it charges clients rig rental fees based on the duration and complexity of drilling operations. The company's U.S. Land segment is a significant contributor to its earnings, as it operates a fleet of high-specification rigs that are in demand for unconventional drilling projects. Additionally, HP earns revenue from its Offshore segment, which includes the operation of jack-up rigs and other offshore drilling assets. The company also benefits from long-term contracts with major oil and gas companies, providing stability and predictability in its revenue streams. Strategic partnerships with operators and technology providers enhance its service offerings, contributing to its financial performance.

Helmerich & Payne Financial Statement Overview

Summary

Helmerich & Payne shows signs of revenue growth recovery, but profitability remains a challenge with a negative net profit margin. The balance sheet is strong with low leverage, yet the negative return on equity highlights profitability issues. Cash flow generation is weak, with declining free cash flow growth, impacting future financial flexibility.

Income Statement

Helmerich & Payne's income statement shows a positive revenue growth rate of 11.13% in the TTM, indicating a recovery from previous declines. However, the company is currently experiencing a negative net profit margin of -0.90%, reflecting ongoing profitability challenges. The gross profit margin has decreased to 18.49% from higher levels in previous years, suggesting pressure on cost management. Despite these challenges, the EBIT and EBITDA margins remain positive at 10.41% and 26.08%, respectively, indicating operational efficiency.

Balance Sheet

The balance sheet of Helmerich & Payne is relatively strong, with a very low debt-to-equity ratio of 0.0024 in the TTM, indicating minimal leverage and financial risk. However, the return on equity is negative at -1.06%, reflecting the company's struggle to generate returns for shareholders. The equity ratio is stable, suggesting a solid capital structure.

Cash Flow

The cash flow statement reveals a significant decline in free cash flow growth by -51.24% in the TTM, which is a concern for future liquidity. The operating cash flow to net income ratio is 0.62, indicating that operating cash flow is not fully covering net income. The free cash flow to net income ratio is low at 0.07, suggesting limited cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.43B	2.76B	2.87B	2.06B	1.22B	1.77B
Gross Profit	634.00M	729.04M	775.01M	224.55M	-158.90M	101.48M
EBITDA	894.07M	907.46M	992.98M	425.76M	2.50M	-131.64M
Net Income	-30.86M	344.17M	434.10M	5.45M	-337.46M	-496.39M
Balance Sheet
Total Assets	6.86B	5.78B	4.38B	4.36B	5.03B	4.83B
Cash, Cash Equivalents and Short-Term Investments	187.40M	510.26M	350.77M	349.23M	1.12B	577.22M
Total Debt	6.86M	1.86B	599.95M	554.99M	1.03B	480.73M
Total Liabilities	4.00B	2.86B	1.61B	1.59B	2.12B	1.51B
Stockholders Equity	2.87B	2.92B	2.77B	2.77B	2.91B	3.32B
Cash Flow
Free Cash Flow	36.55M	189.59M	438.22M	-38.63M	54.29M	398.09M
Operating Cash Flow	504.76M	684.66M	833.68M	233.91M	136.44M	538.88M
Investing Cash Flow	-1.98B	-458.75M	-322.58M	-167.31M	-161.99M	-87.89M
Financing Cash Flow	1.40B	986.51M	-463.87M	-734.30M	425.52M	-297.22M

Helmerich & Payne Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 20.2 is above the 20-day moving average (MA) of 18.80, above the 50-day MA of 17.11, and below the 200-day MA of 23.03, indicating a neutral trend. The MACD of 1.06 indicates Negative momentum. The RSI at 62.62 is Neutral, neither overbought nor oversold. The STOCH value of 71.91 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VAL	72 Outperform	$3.58B	13.09	12.23%	―	18.78%	-72.57%
HP	67 Neutral	$2.07B	7.12	-1.19%	4.95%	25.92%	-109.50%
SDRL	67 Neutral	$2.03B	28.06	2.60%	―	-13.36%	-82.21%
Sector *	65 Neutral	$15.28B	7.48	3.19%	5.33%	4.10%	-60.58%
RIG	58 Neutral	$2.92B	―	-14.99%	―	23.26%	-284.22%
NBR	54 Neutral	$594.54M	―	-49.08%	―	3.49%	18.16%
PTEN	54 Neutral	$2.25B	―	-27.16%	5.64%	-7.98%	-1011.04%

Helmerich & Payne Corporate Events

Helmerich & Payne Extends Senior Notes Exchange Offer

On June 27, 2025, Helmerich & Payne extended its Exchange Offer for senior notes, allowing additional time for holders of unregistered Old Notes to exchange them for registered New Notes. The offer, initially set to expire on June 26, 2025, will now close on July 10, 2025, with a high percentage of the Old Notes already tendered, indicating strong participation from stakeholders.

Helmerich & Payne Faces New Rig Contract Suspensions

On June 10, 2025, Helmerich & Payne announced its executives’ participation in the J.P. Morgan 2025 Energy, Power and Renewables Conference in New York City. The company also provided a market update revealing contract suspensions for nine additional rigs in Saudi Arabia, totaling 26 suspensions. Despite these challenges, H&P remains financially robust and optimistic about long-term synergies from its KCA Deutag acquisition, maintaining strong operations in North America and other markets.