Helmerich & Payne (HP)
NYSE:HP
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Helmerich & Payne
(NYSE:HP)
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Rating:58Neutral
Price Target:
$35.00
▼(-2.45% Downside)
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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Helmerich & Payne (HP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.58B
Dividend Yield3.24%
Average Volume (3M)1.37M
Price to Earnings (P/E)―
Beta (1Y)0.86
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. Volume1,136,552
30 Day Avg. Volume1,368,811
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 Cap1.48
Enterprise Value/Revenue1.30
Enterprise Value/Gross Profit9.79
Enterprise Value/Ebitda9.09
Forecast
1Y Price Target
$37.45Price Target Upside4.38% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)>-0.01
Revenue Forecast (FY)$3.97B
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
Helmerich & 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 explorat...
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.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.
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.
Read all updates
Q1-2026 Updates
Positive
Negative
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.
Read all positive updates
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
Income Statement
38
Negative
Balance Sheet
30
Negative
Cash Flow
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
35.88
Price Trends
34.87
Positive
31.94
Positive
25.77
Positive
Market Momentum
0.24
Positive
53.45
Neutral
28.31
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 35.88 is above the 20-day moving average (MA) of 35.70, above the 50-day MA of 34.87, and above the 200-day MA of 25.77, indicating a bullish trend. The MACD of 0.24 indicates Positive momentum. The RSI at 53.45 is Neutral, neither overbought nor oversold. The STOCH value of 28.31 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 | $2.63B | 5.26 | 18.37% | 3.72% | -20.11% | -26.44% | |
68 Neutral | $1.23B | 2.88 | 57.72% | ― | 6.52% | ― | |
66 Neutral | $4.26B | -25.02 | -2.83% | 5.42% | -16.59% | 83.95% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
63 Neutral | $4.61B | 20.22 | 7.25% | 1.78% | -12.05% | -46.45% | |
58 Neutral | $3.58B | ― | -11.45% | 3.24% | 35.89% | -148.39% |
* Energy Sector Average
HP
Helmerich & Payne
35.88
15.10
72.68%
NBR
Nabors Industries
83.97
51.34
157.34%
PTEN
Patterson-UTI
11.23
5.02
80.72%
TNK
Teekay Tankers
75.82
41.01
117.81%
LBRT
Liberty Energy
28.44
17.04
149.45%
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 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...
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 ...
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 ongo...
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.