Helmerich & Payne (HP)
NYSE:HP
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Helmerich & Payne
(NYSE:HP)
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Rating:60Neutral
Price Target:
$40.00
▲(18.91% Upside)
Action:Reiterated
Date:05/11/26
The score is held back primarily by weakened TTM profitability and higher leverage versus prior years, despite positive and growing free cash flow. Offsetting this, technicals show a clear uptrend with constructive momentum, and the latest earnings call was broadly supportive with improved guidance and balance-sheet actions, though Middle East uncertainty and lower near-term free cash flow conversion temper upside. Valuation is constrained by the negative P/E despite a moderate dividend yield.
Positive Factors
Free Cash Flow Generation
Sustained operating cash flow ($548M TTM) and positive free cash flow ($256M, +42.6% growth) give the company durable internal funding to cover capex, pay down debt, and support dividends. Strong FCF provides resilience across cycles and flexibility for strategic investments.
Negative Factors
Earnings Volatility
The business remains highly cyclical: margins swung from strong prior years to a TTM net loss and negative EBIT margin. This volatility undermines sustained profitability, complicates capital allocation and makes multi‑period return targets and dividend sustainability more sensitive to activity cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Generation
Sustained operating cash flow ($548M TTM) and positive free cash flow ($256M, +42.6% growth) give the company durable internal funding to cover capex, pay down debt, and support dividends. Strong FCF provides resilience across cycles and flexibility for strategic investments.
Read all positive factors
Helmerich & Payne (HP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.09B
Dividend Yield3.24%
Average Volume (3M)1.18M
Price to Earnings (P/E)―
Beta (1Y)0.81
Revenue Growth29.73%
EPS Growth-272.28%
CountryUS
Employees7,000
SectorEnergy
Sector Strength52
IndustryOil & Gas Drilling
Share Statistics
EPS (TTM)-3.78
Shares Outstanding99,930,954
10 Day Avg. Volume1,330,918
30 Day Avg. Volume1,184,741
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 Cap1.44
Enterprise Value/Revenue1.47
Enterprise Value/Gross Profit13.02
Enterprise Value/Ebitda11.26
Forecast
1Y Price Target
$41.75Price Target Upside24.11% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)-0.19
Revenue Forecast (FY)$3.96B
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 Internat...
How the Company Makes Money
HP primarily makes money by contracting its drilling rigs and crews to oil and gas producers under drilling contracts. Revenue is generated mainly from: (1) rig-based contract drilling fees—customers pay for the use of a rig (and typically associa...
Helmerich & Payne Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call presented multiple operational and commercial positives — solid revenue and adjusted EBITDA, stronger North America outlook with higher full-year rig count guidance, successful technology deployments (FlexRobotics), a major offshore contract extension with BP, the sale of Tulsa real estate and accelerated debt paydown, and meaningful liquidity and cost reductions. Near-term challenges are concentrated in the Middle East (supply chain disruption, elevated OpEx, and a few rig suspensions), a reported net loss driven by a noncash impairment, timing-driven negative free cash flow this quarter, and higher near-term taxes and CapEx that will temper free cash flow conversion. Management characterized many headwinds as discrete/transitory and raised guidance for the back half of the year, pointing to a multiyear upcycle opportunity. Overall, the positives (operational momentum, balance-sheet improvement, technology traction and improved NAS demand) substantially outweigh the transitory negatives tied to the geopolitical environment and timing impacts.Positive Updates
Solid Quarterly Financials and Revenue
Revenue of $932 million and adjusted EBITDA of $178 million (aligned with low-to-midpoint of implied guidance).
Negative Updates
Middle East Conflict Impacts
Unplanned direct and indirect costs tied to the Middle East conflict negatively impacted direct margins by an estimated ~$3.5 million in Q2 and management included roughly $6 million of incremental impact in Q3 midpoint guidance if the Strait of Hormuz remains effectively closed.
Read all updates
Q2-2026 Updates
Positive
Negative
Solid Quarterly Financials and Revenue
Revenue of $932 million and adjusted EBITDA of $178 million (aligned with low-to-midpoint of implied guidance).
Read all positive updates
Company Guidance
H&P guided to sequential improvement in Q3 and the back half of fiscal 2026, with North America Solutions direct margin of $230–$240 million on an operated rig count of 137–143 rigs (full‑year NAS rig count raised to 138–144), International Solutions averaging 58–68 rigs with direct margin of $12–$32 million (management noted ~ $6 million of potential Q3 headwind at the midpoint if the Strait of Hormuz remains closed and expects 6 of 7 Saudi reactivations by quarter end), and Offshore averaging 30–35 contracts/rigs with Q3 direct margin of $24–$28 million (full‑year Offshore direct margin guidance $100–$115 million). The company now sees gross CapEx toward the high end of $270–$310 million (Q3 CapEx $100–$130 million), cash taxes of $125–$150 million, and free cash flow conversion for the year nearer ~30% (targeting 40–45% in 2027–28); balance‑sheet actions include after‑tax proceeds from the Utica Square sale (> $100 million target), payoff of the $400 million term loan, ~ $199 million cash on hand (≈ $1.15 billion total liquidity including the revolver), and a 1x leverage target with a $350 million bond due end‑2027 to be addressed—commercially, H&P plans to deploy four additional FlexRobotics systems (first 3–4 operational this calendar year) and now has >55% of its operating fleet on term contracts (up from just over 50%).Helmerich & Payne Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
55
Neutral
Cash Flow
67
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.00B | 3.75B | 2.76B | 2.87B | 2.06B | 1.22B |
| Gross Profit | 451.89M | 553.50M | 729.04M | 775.01M | 229.19M | -153.76M |
| EBITDA | 522.62M | 658.78M | 907.46M | 992.98M | 453.69M | 13.81M |
| Net Income | -375.89M | -165.09M | 344.17M | 434.10M | 6.95M | -326.15M |
Balance Sheet | ||||||
| Total Assets | 6.34B | 6.71B | 5.78B | 4.44B | 4.41B | 5.03B |
| Cash, Cash Equivalents and Short-Term Investments | 224.67M | 245.76M | 510.26M | 409.84M | 385.48M | 1.12B |
| Total Debt | 2.00B | 2.32B | 1.86B | 599.95M | 582.34M | 1.08B |
| Total Liabilities | 3.71B | 3.88B | 2.86B | 1.67B | 1.64B | 2.12B |
| Stockholders Equity | 2.53B | 2.72B | 2.92B | 2.77B | 2.77B | 2.91B |
Cash Flow | ||||||
| Free Cash Flow | 255.99M | 116.58M | 189.59M | 438.22M | -38.63M | 54.29M |
| Operating Cash Flow | 547.55M | 542.95M | 684.66M | 833.68M | 233.91M | 136.44M |
| Investing Cash Flow | -206.76M | -1.93B | -458.75M | -322.58M | -167.31M | -161.99M |
| Financing Cash Flow | -387.91M | 66.66M | 986.51M | -463.87M | -734.30M | 425.52M |
Helmerich & Payne Technical Analysis
Positive
33.64
Price Trends
36.85
Positive
34.80
Positive
29.01
Positive
Market Momentum
1.08
Negative
60.70
Neutral
88.78
Negative
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 33.64 is below the 20-day moving average (MA) of 39.32, below the 50-day MA of 36.85, and above the 200-day MA of 29.01, indicating a bullish trend. The MACD of 1.08 indicates Negative momentum. The RSI at 60.70 is Neutral, neither overbought nor oversold. The STOCH value of 88.78 is Negative, 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 |
|---|---|---|---|---|---|---|---|
84 Outperform | $2.67B | 4.15 | 21.40% | 3.72% | -2.29% | 31.43% | |
67 Neutral | $4.66B | -41.73 | -3.67% | 5.42% | -9.41% | 88.02% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
61 Neutral | $1.58B | ― | 40.63% | ― | 10.21% | ― | |
61 Neutral | $5.34B | 51.72 | 7.39% | 1.78% | -4.02% | -39.84% | |
60 Neutral | $4.09B | ― | -14.16% | 3.24% | 29.73% | -272.28% |
* Energy Sector Average
HP
Helmerich & Payne
40.88
26.22
178.85%
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106.55
81.95
333.13%
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Patterson-UTI
12.28
6.98
131.92%
TNK
Teekay Tankers
78.99
34.48
77.47%
LBRT
Liberty Energy
32.72
21.67
196.14%
Helmerich & Payne Corporate Events
Business Operations and StrategyExecutive/Board Changes
Helmerich & Payne Announces CFO Retirement and Successor
Neutral
Mar 16, 2026
Helmerich Payne announced on March 16, 2026 that Senior Vice President and Chief Financial Officer Kevin Vann will retire from his CFO role effective June 30, 2026, after helping steer the company through key transactions such as the KCA Deutag a...
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 ind...
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 busine...
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.