Q4 2024 Helmerich and Payne Inc Earnings Call Transcript
Key Points
- Helmerich & Payne Inc (HP) delivered a strong fiscal year 2024, leading the industry in safety, customer satisfaction, and margin generation.
- The company increased its market share in North America to approximately 28%, despite a challenging market with customer consolidation and commodity price volatility.
- HP's International Solutions growth strategy is progressing well, with five of eight FlexRigs delivered in Saudi Arabia and the first rig commencing operations for Aramco.
- The acquisition of KCA Deutag is expected to position HP as a global drilling leader, enhancing its presence in the Middle East and increasing global scale and revenue diversification.
- HP successfully improved its sustainability profile by reducing potential safety incidents by approximately 17% and decreasing normalized GHG emissions by over 10% year over year.
- The US industry rig count experienced a decline, with the super-spec rig count down approximately 30 rigs from the high in 2024.
- KCA Deutag announced eight contract suspensions of their rigs in Saudi Arabia for up to 12 months, presenting near-term headwinds for the acquisition.
- HP's fiscal 2024 effective tax rate was at the high end of the guided range due to some acquisition costs that could not be expensed for tax purposes.
- The company's revenue backlog from the North American Solutions fleet decreased from $800 million to $700 million in the previous quarter.
- HP has suspended its supplemental dividend as part of its deleveraging efforts following the KCA Deutag acquisition.
Good day and welcome to Helmerich & Payne's fiscal fourth-quarter earnings call.
(Operator Instructions)
Please note today's call will be recorded.
It is now my pleasure to turn the call over to Dave Wilson. Please go ahead.
Thank you, Todd and welcome everyone to Helmerich & Payne's conference call and webcast for the fourth-quarter and full fiscal year of 2024.
With us today are John Lindsay, President and CEO; and Kevin Vann, Senior Vice President and CFO.
Both John and Kevin will be sharing comments with us after which we'll open the call for questions.
Before we begin our prepared remarks, I will remind everyone that this call will include forward-looking statements as defined under the securities laws. Such statements are based on current information and management's expectations as of this date and are not guarantees of future performance. Forward-looking statements involve certain risks, uncertainties and
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