Attached files
| file | filename |
|---|---|
| 8-K - CURRENT REPORT OF MATERIAL EVENTS OR CORPORATE CHANGES - Helmerich & Payne, Inc. | a13-3925_18k.htm |
Exhibit 99
|
|
NEWS RELEASE |
HELMERICH & PAYNE, INC. / 1437 SOUTH BOULDER AVENUE / TULSA, OKLAHOMA
January 31, 2013
HELMERICH & PAYNE, INC. ANNOUNCES RECORD FIRST QUARTER RESULTS
Helmerich & Payne, Inc. (NYSE:HP) reported record income from continuing operations of $159,611,000 ($1.48 per diluted share) from operating revenues of $844,572,000 for the first quarter of fiscal 2013, compared to income from continuing operations of $144,297,000 ($1.32 per diluted share) from operating revenues of $732,588,000 during the first fiscal quarter of 2012, and income from continuing operations of $149,606,000 ($1.39 per diluted share) from operating revenues of $829,447,000 during the fourth fiscal quarter of 2012. Included in income from continuing operations for the first fiscal quarters of 2013 and 2012, and for the fourth fiscal quarter of 2012, is income (after-tax) related to the sale of used drilling assets and investment securities of $0.08, $0.03 and $0.03 per diluted share, respectively. Net income for the first quarter of fiscal 2013 was also reported at a record level of $159,603,000 ($1.48 per diluted share), compared to net income of $144,286,000 ($1.32 per diluted share) during the first fiscal quarter of 2012, and net income of $157,115,000 ($1.46 per diluted share) during the fourth fiscal quarter of 2012.
Segment operating income for U.S. land operations was $234,388,000 for the first fiscal quarter of 2013, compared with $224,706,000 for last year’s first fiscal quarter and $236,619,000 for last year’s fourth fiscal quarter. As compared to the prior year’s fourth fiscal quarter, the number of revenue days for the segment sequentially decreased by 208 to 21,743. The average rig revenue per day decreased by $285 to $28,040 during the first fiscal quarter of 2013, but the decline was mostly attributable to lower revenue from early termination fees during the first fiscal quarter. Also as compared to the prior year’s fourth fiscal quarter, average rig expense per day for the segment increased by $14 to $12,634 during the first fiscal quarter, resulting in a $299 average rig margin per day decline to $15,406. The rig revenue and margin per day averages included $37 per day of early termination fees during the first fiscal quarter of 2013 as compared to $283 per day during the previous quarter. Rig utilization for the Company’s U.S. land segment was 82% for this year’s first fiscal quarter, compared with 91% for last year’s first fiscal quarter and 85% for last year’s fourth fiscal quarter. At December 31, 2012, the Company’s U.S. land segment had 239 contracted rigs (including 161 under term contracts) and 54 idle rigs.
The Company also announced today that it has entered into agreements to build and operate three additional FlexRigs®* in the U.S. with two exploration and production companies. The three rigs will be built under multi-year term contracts and are expected to generate attractive economic returns for the Company. Including the new builds announced today, five contracted FlexRigs remain to be delivered. Once these rigs are delivered, the Company’s global fleet is expected to include 299 FlexRigs.
(over)
News Release
January 31, 2013
Chairman and CEO Hans Helmerich commented, “We are pleased that the Company remains on a record-breaking pace with the results from our most recent quarter. Going forward, E&P spending plans appear poised for increases as our customers remain focused on innovative technology and productivity improvements that are transforming the energy sector in this country. Our competitive advantages are well aligned with this ongoing industry transformation and should allow us to continue to expand our market share while sustaining premium dayrates and margins.”
Segment operating income for the Company’s offshore operations was $15,006,000 for the first fiscal quarter of 2013, compared with $12,204,000 for last year’s first fiscal quarter and $12,033,000 for last year’s fourth fiscal quarter. The sequential increase in operating income was attributable to a higher number of revenue days along with higher average rig margin per day during the first fiscal quarter of 2013. Rig utilization in the segment was reported at 89% for the first fiscal quarter of 2013, as compared to 84% for the immediately preceding quarter.
The Company’s international land operations reported segment operating income of $9,111,000 for this year’s first fiscal quarter, compared with $7,939,000 for last year’s first fiscal quarter and $7,126,000 for the fourth fiscal quarter of 2012. The increase in segment operating income as compared to last year’s fourth fiscal quarter was mostly attributable to a 12% increase in revenue days. The average rig margin per day for the first fiscal quarter of 2013 increased sequentially to $8,400, from $8,210 per day during the fourth quarter of fiscal 2012.
Helmerich & Payne, Inc. is primarily a contract drilling company. As of January 31, 2013, the Company’s existing fleet included 296 land rigs in the U.S., 29 international land rigs and nine offshore platform rigs. In addition, the Company has commitments to deliver another five new H&P-designed and operated FlexRigs under long-term contracts with customers. Upon completion of these commitments, the Company’s global fleet is expected to have a total of 330 land rigs, including 299 FlexRigs.
Helmerich & Payne, Inc.’s conference call/webcast is scheduled to begin this morning at 11:00 a.m. ET (10:00 a.m. CT) and can be accessed at http://www.hpinc.com under Investors. If you are unable to participate during the live webcast, the call will be archived on H&P’s website indicated above.
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. All statements other than statements of historical facts included in this release, including, without limitation, statements regarding the registrant’s future financial position, business strategy, budgets, projected costs and plans and objectives of management for future operations, are forward-looking statements. For information regarding risks and uncertainties associated with the Company’s business, please refer to the “Risk Factors” and “Management’s Discussion & Analysis of Results of Operations and Financial Condition” sections of the Company’s SEC filings, including but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q. As a result of these factors, Helmerich & Payne, Inc.’s actual results may differ materially from those indicated or implied by such forward-looking statements. We undertake no
(more)
News Release
January 31, 2013
duty to update or revise our forward-looking statements based on changes in internal estimates, expectations or otherwise, except as required by law.
*FlexRig® is a registered trademark of Helmerich & Payne, Inc.
Contact:
Investor Relations
investor.relations@hpinc.com
(918) 588-5207
(more)
News Release
January 31, 2013
HELMERICH & PAYNE, INC.
Unaudited
(in thousands, except per share data)
|
|
|
Three Months Ended |
| |||||||
|
CONSOLIDATED STATEMENTS OF |
|
September 30 |
|
December 31 |
| |||||
|
INCOME |
|
2012 |
|
2012 |
|
2011 |
| |||
|
|
|
|
|
|
|
|
| |||
|
Operating Revenues: |
|
|
|
|
|
|
| |||
|
Drilling — U.S. Land |
|
$ |
695,106 |
|
$ |
696,030 |
|
$ |
617,779 |
|
|
Drilling — Offshore |
|
53,256 |
|
57,718 |
|
50,792 |
| |||
|
Drilling — International Land |
|
77,722 |
|
87,267 |
|
60,735 |
| |||
|
Other |
|
3,363 |
|
3,557 |
|
3,282 |
| |||
|
|
|
829,447 |
|
844,572 |
|
732,588 |
| |||
|
|
|
|
|
|
|
|
| |||
|
Operating costs and expenses: |
|
|
|
|
|
|
| |||
|
Operating costs, excluding depreciation |
|
447,335 |
|
466,871 |
|
391,032 |
| |||
|
Depreciation |
|
115,145 |
|
106,599 |
|
86,288 |
| |||
|
General and administrative |
|
27,763 |
|
32,421 |
|
26,163 |
| |||
|
Research and development |
|
4,682 |
|
3,353 |
|
3,249 |
| |||
|
Income from asset sales |
|
(4,858 |
) |
(5,219 |
) |
(4,683 |
) | |||
|
|
|
590,067 |
|
604,025 |
|
502,049 |
| |||
|
|
|
|
|
|
|
|
| |||
|
Operating income |
|
239,380 |
|
240,547 |
|
230,539 |
| |||
|
|
|
|
|
|
|
|
| |||
|
Other income (expense): |
|
|
|
|
|
|
| |||
|
Interest and dividend income |
|
359 |
|
426 |
|
336 |
| |||
|
Interest expense |
|
(1,360 |
) |
(1,308 |
) |
(2,461 |
) | |||
|
Gain on sale of investment securities |
|
— |
|
8,752 |
|
— |
| |||
|
Other |
|
(34 |
) |
(2,084 |
) |
21 |
| |||
|
|
|
(1,035 |
) |
5,786 |
|
(2,104 |
) | |||
|
|
|
|
|
|
|
|
| |||
|
Income from continuing operations before income taxes |
|
238,345 |
|
246,333 |
|
228,435 |
| |||
|
Income tax provision |
|
88,739 |
|
86,722 |
|
84,138 |
| |||
|
Income from continuing operations |
|
149,606 |
|
159,611 |
|
144,297 |
| |||
|
|
|
|
|
|
|
|
| |||
|
Income (loss) from discontinued operations before income taxes |
|
7,509 |
|
(8 |
) |
(11 |
) | |||
|
Income tax provision |
|
— |
|
— |
|
— |
| |||
|
Income (loss) from discontinued operations |
|
7,509 |
|
(8 |
) |
(11 |
) | |||
|
|
|
|
|
|
|
|
| |||
|
NET INCOME |
|
$ |
157,115 |
|
$ |
159,603 |
|
$ |
144,286 |
|
|
|
|
|
|
|
|
|
| |||
|
Basic earnings per common share: |
|
|
|
|
|
|
| |||
|
Income from continuing operations |
|
$ |
1.41 |
|
$ |
1.50 |
|
$ |
1.34 |
|
|
Income from discontinued operations |
|
$ |
.07 |
|
$ |
— |
|
$ |
— |
|
|
|
|
|
|
|
|
|
| |||
|
Net income |
|
$ |
1.48 |
|
$ |
1.50 |
|
$ |
1.34 |
|
(more)
News Release
January 31, 2013
HELMERICH & PAYNE, INC.
Unaudited
(in thousands, except per share data)
|
|
|
Three Months Ended |
| |||||||
|
CONSOLIDATED STATEMENTS OF |
|
September 30 |
|
December 31 |
| |||||
|
INCOME |
|
2012 |
|
2012 |
|
2011 |
| |||
|
|
|
|
|
|
|
|
| |||
|
Diluted earnings per common share: |
|
|
|
|
|
|
| |||
|
Income from continuing operations |
|
$ |
1.39 |
|
$ |
1.48 |
|
$ |
1.32 |
|
|
Income from discontinued operations |
|
$ |
.07 |
|
$ |
— |
|
$ |
— |
|
|
|
|
|
|
|
|
|
| |||
|
Net income |
|
$ |
1.46 |
|
$ |
1.48 |
|
$ |
1.32 |
|
|
|
|
|
|
|
|
|
| |||
|
Weighted average shares outstanding: |
|
|
|
|
|
|
| |||
|
Basic |
|
105,695 |
|
105,867 |
|
107,186 |
| |||
|
Diluted |
|
107,086 |
|
107,412 |
|
108,788 |
| |||
(more)
News Release
January 31, 2013
HELMERICH & PAYNE, INC.
Unaudited
(in thousands)
|
CONSOLIDATED CONDENSED BALANCE SHEETS |
|
December 31 |
|
September 30 |
| ||
|
|
|
|
|
|
| ||
|
ASSETS |
|
|
|
|
| ||
|
Cash and cash equivalents |
|
$ |
241,146 |
|
$ |
96,095 |
|
|
Other current assets |
|
730,498 |
|
791,514 |
| ||
|
Current assets of discontinued operations |
|
7,788 |
|
7,619 |
| ||
|
Total current assets |
|
979,432 |
|
895,228 |
| ||
|
Investments |
|
441,794 |
|
451,144 |
| ||
|
Net property, plant, and equipment |
|
4,491,051 |
|
4,351,571 |
| ||
|
Other assets |
|
22,011 |
|
23,142 |
| ||
|
TOTAL ASSETS |
|
$ |
5,934,288 |
|
$ |
5,721,085 |
|
|
|
|
|
|
|
| ||
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
| ||
|
Current liabilities |
|
$ |
422,028 |
|
$ |
376,035 |
|
|
Current liabilities of discontinued operations |
|
5,205 |
|
5,129 |
| ||
|
Total current liabilities |
|
427,233 |
|
381,164 |
| ||
|
Non-current liabilities |
|
1,319,077 |
|
1,307,433 |
| ||
|
Non-current liabilities of discontinued operations |
|
2,583 |
|
2,490 |
| ||
|
Long-term notes payable |
|
195,000 |
|
195,000 |
| ||
|
Total shareholders’ equity |
|
3,990,395 |
|
3,834,998 |
| ||
|
|
|
|
|
|
| ||
|
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
$ |
5,934,288 |
|
$ |
5,721,085 |
|
(more)
News Release
January 31, 2013
HELMERICH & PAYNE, INC.
Unaudited
(in thousands)
|
|
|
Three Months Ended |
| ||||
|
|
|
December 31 |
| ||||
|
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS |
|
2012 |
|
2011 |
| ||
|
|
|
|
|
|
| ||
|
OPERATING ACTIVITIES: |
|
|
|
|
| ||
|
Net income |
|
$ |
159,603 |
|
$ |
144,286 |
|
|
Adjustment for loss from discontinued operations |
|
8 |
|
11 |
| ||
|
Income from continuing operations |
|
159,611 |
|
144,297 |
| ||
|
Depreciation |
|
106,599 |
|
86,288 |
| ||
|
Changes in assets and liabilities |
|
83,660 |
|
6,823 |
| ||
|
Gain on sale of assets and investment securities |
|
(13,971 |
) |
(4,683 |
) | ||
|
Other |
|
6,031 |
|
3,924 |
| ||
|
Net cash provided by operating activities from continuing operations |
|
341,930 |
|
236,649 |
| ||
|
Net cash used in operating activities from discontinued operations |
|
(8 |
) |
(11 |
) | ||
|
Net cash provided by operating activities |
|
341,922 |
|
236,638 |
| ||
|
|
|
|
|
|
| ||
|
INVESTING ACTIVITIES: |
|
|
|
|
| ||
|
Capital expenditures |
|
(219,444 |
) |
(256,943 |
) | ||
|
Proceeds from sale of assets and investment securities |
|
25,516 |
|
10,155 |
| ||
|
Net cash used in investing activities |
|
(193,928 |
) |
(246,788 |
) | ||
|
|
|
|
|
|
| ||
|
FINANCING ACTIVITIES: |
|
|
|
|
| ||
|
Dividends paid |
|
(7,432 |
) |
(7,522 |
) | ||
|
Exercise of stock options |
|
473 |
|
373 |
| ||
|
Tax withholdings related to net share settlements of restricted stock |
|
(1,677 |
) |
(1,514 |
) | ||
|
Excess tax benefit from stock-based compensation |
|
5,693 |
|
2,426 |
| ||
|
Net cash used in financing activities |
|
(2,943 |
) |
(6,237 |
) | ||
|
|
|
|
|
|
| ||
|
Net increase (decrease) in cash and cash equivalents |
|
145,051 |
|
(16,387 |
) | ||
|
Cash and cash equivalents, beginning of period |
|
96,095 |
|
364,246 |
| ||
|
Cash and cash equivalents, end of period |
|
$ |
241,146 |
|
$ |
347,859 |
|
(more)
News Release
January 31, 2013
SEGMENT REPORTING
|
|
|
Three Months Ended |
| |||||||
|
|
|
September 30 |
|
December 31 |
| |||||
|
|
|
2012 |
|
2012 |
|
2011 |
| |||
|
|
|
(in thousands, except days and per day amounts) |
| |||||||
|
U.S. LAND OPERATIONS |
|
|
|
|
|
|
| |||
|
Revenues |
|
$ |
695,106 |
|
$ |
696,030 |
|
$ |
617,779 |
|
|
Direct operating expenses |
|
350,364 |
|
361,068 |
|
312,306 |
| |||
|
General and administrative expense |
|
8,078 |
|
9,321 |
|
7,298 |
| |||
|
Depreciation |
|
100,045 |
|
91,253 |
|
73,469 |
| |||
|
Segment operating income |
|
$ |
236,619 |
|
$ |
234,388 |
|
$ |
224,706 |
|
|
|
|
|
|
|
|
|
| |||
|
Revenue days |
|
21,951 |
|
21,743 |
|
20,968 |
| |||
|
Average rig revenue per day |
|
$ |
28,325 |
|
$ |
28,040 |
|
$ |
26,861 |
|
|
Average rig expense per day |
|
$ |
12,620 |
|
$ |
12,634 |
|
$ |
12,292 |
|
|
Average rig margin per day |
|
$ |
15,705 |
|
$ |
15,406 |
|
$ |
14,569 |
|
|
Rig utilization |
|
85 |
% |
82 |
% |
91 |
% | |||
|
|
|
|
|
|
|
|
| |||
|
OFFSHORE OPERATIONS |
|
|
|
|
|
|
| |||
|
Revenues |
|
$ |
53,256 |
|
$ |
57,718 |
|
$ |
50,792 |
|
|
Direct operating expenses |
|
35,824 |
|
37,207 |
|
33,201 |
| |||
|
General and administrative expense |
|
1,974 |
|
2,235 |
|
1,732 |
| |||
|
Depreciation |
|
3,425 |
|
3,270 |
|
3,655 |
| |||
|
Segment operating income |
|
$ |
12,033 |
|
$ |
15,006 |
|
$ |
12,204 |
|
|
|
|
|
|
|
|
|
| |||
|
Revenue days |
|
695 |
|
736 |
|
697 |
| |||
|
Average rig revenue per day |
|
$ |
62,018 |
|
$ |
61,936 |
|
$ |
53,644 |
|
|
Average rig expense per day |
|
$ |
38,688 |
|
$ |
36,154 |
|
$ |
31,473 |
|
|
Average rig margin per day |
|
$ |
23,330 |
|
$ |
25,782 |
|
$ |
22,171 |
|
|
Rig utilization |
|
84 |
% |
89 |
% |
84 |
% | |||
(more)
News Release
January 31, 2013
SEGMENT REPORTING
|
|
|
Three Months Ended |
| |||||||
|
|
|
September 30 |
|
December 31 |
| |||||
|
|
|
2012 |
|
2012 |
|
2011 |
| |||
|
|
|
(in thousands, except days and per day amounts) |
| |||||||
|
INTERNATIONAL LAND OPERATIONS |
|
|
|
|
|
|
| |||
|
Revenues |
|
$ |
77,722 |
|
$ |
87,267 |
|
$ |
60,735 |
|
|
Direct operating expenses |
|
61,346 |
|
68,639 |
|
45,164 |
| |||
|
General and administrative expense |
|
806 |
|
1,039 |
|
778 |
| |||
|
Depreciation |
|
8,444 |
|
8,478 |
|
6,854 |
| |||
|
Segment operating income |
|
$ |
7,126 |
|
$ |
9,111 |
|
$ |
7,939 |
|
|
|
|
|
|
|
|
|
| |||
|
Revenue days |
|
2,001 |
|
2,237 |
|
1,729 |
| |||
|
Average rig revenue per day |
|
$ |
35,732 |
|
$ |
35,511 |
|
$ |
31,072 |
|
|
Average rig expense per day |
|
$ |
27,522 |
|
$ |
27,111 |
|
$ |
22,057 |
|
|
Average rig margin per day |
|
$ |
8,210 |
|
$ |
8,400 |
|
$ |
9,015 |
|
|
Rig utilization |
|
79 |
% |
85 |
% |
78 |
% | |||
Operating statistics exclude the effects of offshore platform management contracts, gains and losses from translation of foreign currency transactions, and do not include reimbursements of “out-of-pocket” expenses in revenue per day, expense per day and margin calculations.
Reimbursed amounts were as follows:
|
U.S. Land Operations |
|
$ |
73,346 |
|
$ |
86,359 |
|
$ |
54,562 |
|
|
Offshore Operations |
|
$ |
4,731 |
|
$ |
6,259 |
|
$ |
5,798 |
|
|
International Land Operations |
|
$ |
6,221 |
|
$ |
7,828 |
|
$ |
7,012 |
|
(more)
News Release
January 31, 2013
Segment operating income for all segments is a non-GAAP financial measure of the Company’s performance, as it excludes general and administrative expenses, corporate depreciation, income from asset sales and other corporate income and expense. The Company considers segment operating income to be an important supplemental measure of operating performance for presenting trends in the Company’s core businesses. This measure is used by the Company to facilitate period-to-period comparisons in operating performance of the Company’s reportable segments in the aggregate by eliminating items that affect comparability between periods. The Company believes that segment operating income is useful to investors because it provides a means to evaluate the operating performance of the segments and the Company on an ongoing basis using criteria that are used by our internal decision makers. Additionally, it highlights operating trends and aids analytical comparisons. However, segment operating income has limitations and should not be used as an alternative to operating income or loss, a performance measure determined in accordance with GAAP, as it excludes certain costs that may affect the Company’s operating performance in future periods.
The following table reconciles operating income per the information above to income from continuing operations before income taxes as reported on the Consolidated Statements of Income (in thousands).
|
|
|
Three Months Ended |
| |||||||
|
|
|
September 30 |
|
December 31 |
| |||||
|
|
|
2012 |
|
2012 |
|
2011 |
| |||
|
Operating income |
|
|
|
|
|
|
| |||
|
U.S. Land |
|
$ |
236,619 |
|
$ |
234,388 |
|
$ |
224,706 |
|
|
Offshore |
|
12,033 |
|
15,006 |
|
12,204 |
| |||
|
International Land |
|
7,126 |
|
9,111 |
|
7,939 |
| |||
|
Other |
|
(3,042 |
) |
(1,635 |
) |
(1,788 |
) | |||
|
Segment operating income |
|
$ |
252,736 |
|
$ |
256,870 |
|
$ |
243,061 |
|
|
Corporate general and administrative |
|
(16,905 |
) |
(19,826 |
) |
(16,355 |
) | |||
|
Other depreciation |
|
(2,510 |
) |
(2,934 |
) |
(1,556 |
) | |||
|
Inter-segment elimination |
|
1,201 |
|
1,218 |
|
706 |
| |||
|
Income from asset sales |
|
4,858 |
|
5,219 |
|
4,683 |
| |||
|
Operating income |
|
$ |
239,380 |
|
$ |
240,547 |
|
$ |
230,539 |
|
|
|
|
|
|
|
|
|
| |||
|
Other income (expense): |
|
|
|
|
|
|
| |||
|
Interest and dividend income |
|
359 |
|
426 |
|
336 |
| |||
|
Interest expense |
|
(1,360 |
) |
(1,308 |
) |
(2,461 |
) | |||
|
Gain on sale of investment securities |
|
— |
|
8,752 |
|
— |
| |||
|
Other |
|
(34 |
) |
(2,084 |
) |
21 |
| |||
|
Total other income (expense) |
|
(1,035 |
) |
5,786 |
|
(2,104 |
) | |||
|
|
|
|
|
|
|
|
| |||
|
Income from continuing operations before income taxes |
|
$ |
238,345 |
|
$ |
246,333 |
|
$ |
228,435 |
|
# # #