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Helmerich & Payne Inc. Reports Operating Results (10-Q)

February 03, 2010 | About:
10qk

10qk

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Helmerich & Payne Inc. (HP) filed Quarterly Report for the period ended 2009-12-31.

Helmerich & Payne Inc. has a market cap of $4.57 billion; its shares were traded at around $43.27 with a P/E ratio of 17.3 and P/S ratio of 2.4. The dividend yield of Helmerich & Payne Inc. stocks is 0.5%. Helmerich & Payne Inc. had an annual average earning growth of 7.9% over the past 10 years.HP is in the portfolios of Ron Baron of Baron Funds, Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC, Chuck Royce of ROYCE & ASSOCIATES, Kenneth Fisher of Fisher Asset Management, LLC, Diamond Hill Capital of Diamond Hill Capital Management Inc.

Highlight of Business Operations:

We reported net income of $63.2 million ($0.59 per diluted share) from operating revenues of $399.8 million for the first quarter ended December 31, 2009, compared with net income of $145.3 million ($1.36 per diluted share) from operating revenues of $623.8 million for the first quarter of fiscal year 2009. Net income for the first quarter of fiscal 2009 includes approximately $0.8 million ($0.01 per diluted share) of after-tax gains from the sale of assets.

U.S. LAND segment operating income decreased to $91.5 million for the first quarter of fiscal 2010 compared to $194.0 million in the same period of fiscal 2009. Revenues were $285.1 million and $475.2 million in the first quarter of fiscal 2010 and 2009, respectively. Included in U.S. land revenues for the three months ended December 31, 2009 and 2008 are reimbursements for out-of-pocket expenses of $13.6 million and $33.4 million, respectively. Also included in U.S. land revenues for the first quarter of fiscal 2010 and 2009 is approximately $15.6 million and $18.4 million, respectively, attributable to early termination related revenue and customer requested delivery delay revenue for new FlexRigs.

Revenues in the first quarter of fiscal 2010 decreased $35.8 million compared to the first quarter of fiscal 2009 with Venezuela contributing $39.3 million to the decrease as we continue to record revenue in Venezuela as cash is collected (see Note 3 of the Consolidated Condensed Financial Statements). Excluding Venezuela in the comparable quarters, revenue increased $3.5 million, primarily the result of additional rigs working in the segment during the first quarter of fiscal 2010 compared to the first quarter of fiscal 2009. Included in international land revenues for the three months ended December 31, 2009 and 2008 are reimbursements for out-of-pocket expenses of $2.5 million and $7.6 million, respectively.

OTHER General and administrative expenses increased to $20.8 million in the first quarter of fiscal 2010 from $15.1 million in the first quarter of fiscal 2009. The $5.7 million increase is primarily due to a change in our Long-Term Incentive Plan whereby stock-based compensation was accelerated and additional expense of $4.4 million was incurred. Also contributing to the increase was additional pension expense in fiscal 2010 of $0.5 million and an increase in employee bonus accruals of $0.4 million.

Interest expense was $4.7 million and $3.7 million in the first quarter of fiscal 2010 and 2009, respectively. Capitalized interest, all attributable to our rig construction, was $1.7 million for both comparable quarters. Interest expense before capitalized interest increased $1.0 million during the first quarter of fiscal 2010 compared to the first quarter of fiscal 2009 primarily due to additional borrowings under a fixed-rate credit facility obtained in July 2009.

During the three months ended December 31, 2009, we reduced our outstanding debt by $40.0 million compared to net additional borrowings of $13.3 million during the three months ended December 31, 2008. During the three months ended December 31, 2009, we reduced our bank overdraft position $2.0 million compared to increasing the bank overdraft position by $2.3 million in the three months ended December 31, 2008.

Read the The complete Report

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