Helmerich and Payne profit hits record in fiscal 2012

BY ROD WALTON World Staff Writer
Friday, November 16, 2012
11/16/12 at 4:18 AM

Growing drilling activity and asset sales helped push Helmerich and Payne Inc. to all-time high profits for the last quarter and fiscal year, the Tulsa-based contract rig company announced Thursday.

Net income totaled a record $157.1 million for the fourth fiscal quarter ending Sept. 30, while the full-year profits topped $581 million, another company best.

Helmerich and Payne increased operating income from all of its U.S. land, offshore and international drilling segments.

CEO Hans Helmerich said the company posted strong financial results despite volatility in crude oil, natural gas and natural gas liquids prices. He noted natural gas dropped below $2 per thousand cubic feet before a slight rally, and crude oil is at the low end of its $85-to-$100 per barrel range.

"Our sense is that oil prices within that range will result in improved activity levels as customers begin to allocate their 2013 budget dollars," he said in a conference call with analysts. "It's hard for us to see natural gas prices increasing enough to add much incremental drilling activity."

Chief Financial Officer Juan Pablo Tardio said the company had $1.1 billion in capital expenditures for the fiscal year. He estimated the 2013 outlay at about $740 million.

U.S. land operations generated $236.6 million in operating income, more than $40 million better than the same period last fiscal year. Offshore operations were up nearly $200,000 while the international segment doubled to $7.1 million.

The company also added after-tax gains on the sales of used drilling equipment and investment securities, according to the earnings report.

Helmerich and Payne's overall assets totaled $5.7 billion by the end of fiscal 2012, well above the $5 billion booked in 2011. As of Thursday, the company had 289 U.S., 26 international and nine offshore platform rigs within its fleet.

Another nine company-designed and -built FlexRigs, already under long-term contracts, are expected to be completed in early fiscal 2013.

Helmerich touted the company's safety record at the all-time best. He also praised the fact that more than 900 employees have worked there 10 or more years, while nearly 200 have 20 years or more with Helmerich and Payne.

"Those are the numbers we may be most proud of today," the CEO said.

Helmerich and Payne has nearly 9,000 employees companywide, with more than 500 in Tulsa.

Helmerich and Payne Inc. earnings*

	2012 4Q	2011 4Q	2012 Full-year	2011 Full-year	Pct. Change
Revenue	$829.4M	$700.8M	$3.15B	$2.54B	24%
Net income	$157.1M	$121.4M	$581M	$434.2M	33.8%
Net per share	$1.46	$1.11	$5.34	$3.99	33.8%

*HP operates on a October-September fiscal year.

Original Print Headline: Fiscal year profit hits record high for H&P

Rod Walton 918-581-8457
rod.walton@tulsaworld.com