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

May 05, 2010 | About:
10qk

10qk

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Helmerich & Payne Inc. (HP) filed Quarterly Report for the period ended 2010-03-31.

Helmerich & Payne Inc. has a market cap of $4.21 billion; its shares were traded at around $39.74 with a P/E ratio of 18.6 and P/S ratio of 2.3. The dividend yield of Helmerich & Payne Inc. stocks is 0.5%. Helmerich & Payne Inc. had an annual average earning growth of 19.3% over the past 10 years.HP is in the portfolios of Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC, Ron Baron of Baron Funds, Chuck Royce of Royce& Associates, Kenneth Fisher of Fisher Asset Management, LLC, George Soros of Soros Fund Management LLC, Steven Cohen of SAC Capital Advisors.

Highlight of Business Operations:

We reported net income of $46.7 million ($0.43 per diluted share) from operating revenues of $439.7 million for the second quarter ended March 31, 2010, compared with net income of $103.7 million ($0.98 per diluted share) from operating revenues of $520.3 million for the second quarter of fiscal year 2009. Net income for the second quarter of fiscal 2010 includes approximately $0.8 million ($0.01 per diluted share) of after-tax gains from the sale of assets. Net income for the second quarter of fiscal 2009 includes approximately $1.2 million ($0.01 per diluted share) of after-tax gains from the sale of assets.

U.S. LAND segment operating income decreased to $90.7 million for the second quarter of fiscal 2010 compared to $192.9 million in the same period of fiscal 2009. Revenues were $324.4 million and $414.5 million in the second quarter of fiscal 2010 and 2009, respectively. Included in U.S. land revenues for the three months ended March 31, 2010 and 2009 are reimbursements for out-of-pocket expenses of $17.8 million and $21.3 million, respectively. Also included in U.S. land revenues for the second quarter of fiscal 2010 and 2009 is approximately $10.4 million and $81.5 million, respectively, attributable to early termination related revenue and customer requested delivery delay revenue for new FlexRigs® (hereinafter FlexRig).

General and administrative expenses increased to $20.8 million in the second quarter of fiscal 2010 from $16.4 million in the second quarter of fiscal 2009. The $4.4 million increase is primarily due to employee bonus accruals of $2.7 million, additional stock-based compensation expense of $0.9 million and additional pension expense in fiscal 2010 of $0.5 million.

Interest expense was $4.2 million and $2.6 million in the second quarter of fiscal 2010 and 2009, respectively. Capitalized interest, all attributable to our rig construction, was $1.8 million and $1.7 million for the comparable quarters. Interest expense before capitalized interest increased $1.7 million during the second quarter of fiscal 2010 compared to the second quarter of fiscal 2009 primarily due to additional borrowings under a fixed-rate credit facility obtained in July 2009.

We reported net income of $110.0 million ($1.02 per diluted share) from operating revenues of $839.6 million for the six months ended March 31, 2010, compared with net income of $249.0 million ($2.34 per diluted share) from operating revenues of $1,144.1 million for the first six months of fiscal year 2009. Included in net income are after-tax gains from the sale of assets of approximately $1.3 million ($0.01 per diluted share) for the six months ended March 31, 2010, compared to approximately $1.7 million ($0.02 per diluted share) for the six months ended March 31, 2009. Also included in net income for fiscal 2009 is approximately $0.2 million of after-tax gains from involuntary conversion of long-lived assets.

U.S. LAND segment operating income in the first six months of fiscal 2010 decreased to $182.2 million from $387.0 million in the first six months of fiscal 2009. Revenues were $609.5 million in the first six months of fiscal 2010, compared with $889.7 million in the same period of fiscal 2009. Included in U.S. land revenues for the six months ended March 31, 2010 and 2009 are reimbursements for out-of-pocket expenses of $31.4 million and $54.7 million, respectively. Also included in U.S. land revenues for fiscal 2010 and 2009 is approximately $26.1 million and $100.0 million, respectively, attributable to early termination related revenue and customer requested delivery delay revenue for new FlexRigs.

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