Helmerich & Payne (HP) investor relations material

Executive summary

• Delivered strong financial and operational performance in Q3 2026, exceeding expectations across all regions and segments, led by U.S. operations, robust results in Latin America, and operational excellence in offshore markets.

• Net income attributable to shareholders was $76 million ($0.74 per share), reversing prior losses, and included a $115 million gain from the sale of Utica Square; adjusted net loss was $(0.11) per share, excluding select items.

• Adjusted EBITDA reached $236 million, reflecting strong operational execution and margin expansion, with free cash flow of $98 million.

• Exited the quarter with 147 rigs operating, high utilization rates, and direct margins at the high end of guidance.

• Continued focus on balance sheet strength, debt repayment, enterprise optimization, and technology deployment initiatives.

Financial highlights

• Q3 revenues reached $1.035 billion, up 11% sequentially, with adjusted EBITDA of $236 million (23% margin) and net income of $76 million ($0.74 per share); adjusted EPS was $(0.11) due to non-recurring items.

• Free cash flow was $98 million; gross CapEx for Q3 was $70 million, below anticipated levels due to timing.

• North America Solutions direct margin: $241 million, $18,669 per day, with 142 rigs operating.

• International Solutions direct margin: $31 million; Offshore Solutions direct margin: $29 million.

• Cash and cash equivalents at quarter-end were $204 million; net working capital was $770 million.

Outlook and guidance

• Q4 guidance: North America Solutions direct margin $245–$255 million, rig count 145–151; International Solutions direct margin $25–$45 million, rig count 60–70; Offshore Solutions direct margin $26–$30 million.

• Upgraded full-year offshore margin guidance to $113–$117 million; CapEx expected to remain within $270–$310 million for the year.

• Cash tax payments now expected at $150–$180 million.

• Total contract backlog increased to $9.1 billion, with 28.2% expected to be fulfilled by FY27.

• Management anticipates robust rig activity growth in both hemispheres and increased upstream spending in 2027.