Helmerich & Payne, Inc. Announces Finalization of Contractual Terms with Saudi Aramco for Recent 7-rig Unconventional Gas Award
12 Febrero 2024 - 3:37PM
Business Wire
Helmerich & Payne, Inc. (the “Company” or “H&P”) (NYSE:
HP) today announced that the Company and Saudi Aramco have
finalized the contractual terms related to a recent 7-rig tender
award.
The seven super-spec rigs were awarded 5-year contracts, with
1-year options, and are expected to commence operations shortly
after delivery, which for a majority of these rigs is scheduled
during the fourth calendar quarter of 2024. Similar to the one-rig
award with Saudi Aramco in August 2023, these rigs will be sourced
from H&P’s idle super-spec FlexRigs® in the U.S. and, during
fiscal 2024, the Company plans to convert the rigs to walking
configurations and further equip them to suit Saudi Aramco’s
unconventional gas drilling rig specifications. The bulk of capex
required to prepare these rigs for this award was included as part
of the Company’s fiscal 2024 capex budget with the remainder to be
spent early in fiscal 2025. In total, expectations are for capital
expenditures related to these rigs to be approximately $175 to $196
million, of which $30 to $35 million is expected to be spent in
fiscal 2025. Additionally, the Company expects this contract award
to contribute more than $25 million to its International Solutions
segment direct margin(1) on an annualized basis.
President and CEO John Lindsay commented, “We are extremely
pleased to be working with Saudi Aramco and supporting their
unconventional gas drilling campaign. With the additional capital
invested, we believe these highly-mobile, pad-capable super-spec
rigs will be some of the most capable rigs in the world to be used
for unconventional drilling. After these initial investments, we
expect to create a diversified revenue source that is able to
generate a stable source of cash flows with a relatively low level
of additional annual maintenance capex.”
About Helmerich & Payne, Inc.
Founded in 1920, Helmerich & Payne, Inc. is committed to
delivering industry leading drilling productivity and reliability.
H&P operates with the highest level of integrity, safety and
innovation to deliver superior results for our customers and
returns for shareholders. Through its subsidiaries, the Company
designs, fabricates and operates high-performance drilling rigs in
conventional and unconventional plays around the world. H&P
also develops and implements advanced automation, directional
drilling and survey management technologies. For more information,
visit www.helmerichpayne.com.
This release includes “forward-looking statements” within the
meaning of the Securities Act of 1933 and the Securities Exchange
Act of 1934, and such statements are based on current expectations
and assumptions that are subject to risks and uncertainties, which
may prove to be inaccurate in the future and are subject to a
number of risk factors. For information regarding risks and
uncertainties associated with the Company’s business, please refer
to the “Risk Factors” and “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” sections and other
disclosures in the Company’s SEC filings, including but not limited
to its annual report on Form 10‑K and quarterly reports on Form
10‑Q. We undertake no duty to publicly update or revise any
forward-looking statements, whether as a result of new information,
changes in internal estimates, expectations or otherwise, except as
required under applicable securities laws.
Helmerich & Payne uses its website as a channel of
distribution for material company information. Such information is
routinely posted and accessible on its Investor Relations website
at www.helmerichpayne.com.
(1)
Direct margin, which is considered a
non-GAAP metric, is defined as operating revenues (less
reimbursements) less direct operating expenses (less
reimbursements) and is included as a supplemental disclosure. We
believe it is useful in assessing and understanding our current
operational performance, especially in making comparisons over
time.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240212350645/en/
IR Contact: Dave Wilson, Vice President of Investor Relations
918-588-5190 investor.relations@hpinc.com
Helmerich and Payne (NYSE:HP)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Helmerich and Payne (NYSE:HP)
Gráfica de Acción Histórica
De May 2023 a May 2024