Skip to main content Meetings with Investors – Helmerich & Payne Inc. Investor Presentation | Shale Experts
Loading...
Pm

Meetings with Investors – Helmerich & Payne Inc.

Helmerich & Payne Inc. · Oct 4, 2016 · 38 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Meetings with Investors – Helmerich & Payne Inc. – slide 1
    Helmerich & Payne, Inc. Meetings with Investors October 4-6, 2016
  2. Meetings with Investors – Helmerich & Payne Inc. – slide 2
    About Helmerich & Payne (H&P) Very strong balance sheet Most capable land drilling fleet Market share leader in the U.S. Robust term contract backlog Operational strategy focused on continued innovation, safety, performance…
  3. Meetings with Investors – Helmerich & Payne Inc. – slide 3
    H&Ps Strong Balance Sheet (As of June 30, 2016) Total-Debt-to-Total-Capitalization Ratio1 1. Total Capitalization is defined as Total Debt plus Shareholders' Equity. Source: Company Filings.
  4. Meetings with Investors – Helmerich & Payne Inc. – slide 4
    Current Dividend Yields Source: Thomson Reuters. Yields calculated as of market close on September 30, 2016.
  5. Meetings with Investors – Helmerich & Payne Inc. – slide 5
    H&Ps Global Rig Fleet * Estimates include existing rigs and announced new build commitments.
  6. Meetings with Investors – Helmerich & Payne Inc. – slide 6
    H&P U.S. Land Fleet Family of Solutions Rig Power Type FlexRig Type Pad* AC Drive FlexRigs Drawworks Horsepower ** * Optimal for multiple-well pad drilling applications. ** Approximately 123 FlexRig3s and 6 FlexRig4s of…
  7. Meetings with Investors – Helmerich & Payne Inc. – slide 7
    U.S. Land Market Share Leader As of September 2016 (530 Active Rigs in U.S. Land) Note: The above estimates corresponding to market share are derived from Rig Data. Additionally, the drawworks capacity of each land rig included in…
  8. Meetings with Investors – Helmerich & Payne Inc. – slide 8
    H&P Global Fleet Under Term Contract * The above term contract coverage excludes long-term contracts for which the Company received early contract termination notifications as of 10/4/16. Given notifications as of 10/4/16, the…
  9. Meetings with Investors – Helmerich & Payne Inc. – slide 9
    H&P vs. Industry U.S. Land Customer Base Note: The above estimates corresponding to the active rig fleet in the U.S. are derived from multiple sources including Rig Data. The category Large Operators includes majors and large…
  10. Meetings with Investors – Helmerich & Payne Inc. – slide 10
    U.S. Land Drilling Market Conditions Some E&P companies have announced budget increases and rig count additions, but many still remain on the sidelines. The U.S. land active rig count has significantly increased over the last few…
  11. Meetings with Investors – Helmerich & Payne Inc. – slide 11
    Drilling Activity in the U.S.
  12. Meetings with Investors – Helmerich & Payne Inc. – slide 12
    U.S. Land Horizontal and Directional Activity (As of September 2016) Note: The above estimates corresponding to horizontal and directional rig activity by power type are derived from multiple sources including Rig Data and…
  13. Meetings with Investors – Helmerich & Payne Inc. – slide 13
    The Replacement Cycle: Customer Adoption U.S. Land Market (as of September 2016) Top 10 E&P Operators Next 75 E&P Operators Remaining E&P Operators (130 Active Rigs by Power Type) (245 Active Rigs by Power Type) (155 Active Rigs by…
  14. Meetings with Investors – Helmerich & Payne Inc. – slide 14
    Replacement Cycle Expected to Continue As of September 2016 (530 Active Rigs in U.S. Land By Power Type) As of October 2008 (Peak) As of October 2014 (Peak) (1,925 Active Rigs in U.S. Land By Power Type) (1,930 Active Rigs in…
  15. Meetings with Investors – Helmerich & Payne Inc. – slide 15
    H&Ps Lead in U.S. Land 1,500 hp AC Drive Rigs * The above estimates corresponding to U.S. lower 48 1,500 hp AC Drive fleets are derived from Rig Data and corporate filings. ** Estimated number of all other available AC Drive rigs not…
  16. Meetings with Investors – Helmerich & Payne Inc. – slide 16
    H&Ps U.S. Land Activity and Pricing Comments H&Ps U.S. Land segment has approximately 96 contracted rigs generating revenue, including 92 rigs generating revenue days as of October 4, 2016 (9% of the 92 rigs remain idle and on…
  17. Meetings with Investors – Helmerich & Payne Inc. – slide 17
    H&P Very Well Positioned to Gain Share Idle 1,500 hp AC Drive Land Rigs (as of September 2016) Note: The above estimates are derived from multiple sources including Rig Data and corporate filings.
  18. Meetings with Investors – Helmerich & Payne Inc. – slide 18
    H&Ps U.S. Land Fleet Activity (1) (2) (1) Includes rigs on standby dayrates. (2) Includes completed new builds pending delivery and not generating revenue days.
  19. Meetings with Investors – Helmerich & Payne Inc. – slide 19
    Leading U.S. Unconventional Driller (98 H&P Contracted Land Rigs as of 10/4/16*) * Includes 2 announced new FlexRigs with customer commitments scheduled for delivery in calendar 2016.   Marcellus Shale…
  20. Meetings with Investors – Helmerich & Payne Inc. – slide 20
    H&P U.S. Land Fleet (Contracted Rigs as of 10/4/16) Rig Power Type FlexRig Type Pad* AC Drive FlexRigs Drawworks Horsepower ** * Optimal for multiple-well pad drilling applications. ** Most of the Other FlexRigs can be…
  21. Meetings with Investors – Helmerich & Payne Inc. – slide 21
    Technology & Quality Service Make a Difference (1) H&Ps Margin Premium (2) (1) Does not include the impact of early contract termination revenue. (2) Represents weighted-average rig margin per day for PTEN, NBR, PDS, and…
  22. Meetings with Investors – Helmerich & Payne Inc. – slide 22
    Performance is Not Only About Better Rigs Our competitive advantage is also about: People Support Structure Safety Processes Experience Organizational Network Training Maintenance Culture Supply Chain
  23. Meetings with Investors – Helmerich & Payne Inc. – slide 23
    Ongoing U.S. Land Market Trends Unconventional plays continue to shape the landscape. Well designs are increasingly complex, including longer laterals and more challenging drilling requirements. Customers continue to focus on…
  24. Meetings with Investors – Helmerich & Payne Inc. – slide 24
    Increasing Focus on More Difficult Drilling
  25. Meetings with Investors – Helmerich & Payne Inc. – slide 25
    H&Ps Long Term Strategy Innovation Technology Safety, operational excellence and reliability Customer satisfaction Financial strength
  26. Meetings with Investors – Helmerich & Payne Inc. – slide 26
    Additional References
  27. Meetings with Investors – Helmerich & Payne Inc. – slide 27
    Estimated H&P Activity as of October 4, 2016 Rigs Rigs Working/ % Available Contracted Contracted U.S. Land 348 96 28% (1) (2) AC Drive FlexRigs 346 96 28% SCR Fleet 2 0 0% Offshore 9 7 78% International Land 38 16 42% Total 395…
  28. Meetings with Investors – Helmerich & Payne Inc. – slide 28
    H&Ps Lead in U.S. Land AC Drive Rigs * The above estimates corresponding to U.S. lower 48 AC Drive fleets are derived from Rig Data and corporate filings. ** Estimated number of all other available AC Drive rigs not including those…
  29. Meetings with Investors – Helmerich & Payne Inc. – slide 29
    U.S. Activity by Well and Rig Type 530 Active U.S. Land Rigs (September 2016) Vertical All Rigs Horiz & Dir SCR & Mech Rigs Horiz & Dir AC Drive Rigs Note: The above estimates corresponding to rig activity and rig type are…
  30. Meetings with Investors – Helmerich & Payne Inc. – slide 30
    H&P U.S. Land Fleet (Idle Rigs as of 10/4/16) Rig Power Type FlexRig Type Pad* AC Drive FlexRigs Drawworks Horsepower ** * Optimal for multiple-well pad drilling applications. ** Most of the Other FlexRigs can be upgraded…
  31. Meetings with Investors – Helmerich & Payne Inc. – slide 31
    H&Ps International Land Operations Rig Fleet Status (as of October 4, 2016) Long-term Contracted Idle Total Contracts (1) (2) Argentina 11 8 19 10 Bahrain 1 2 3 Colombia 2 6 8 1 Ecuador 6 6 U.A.E. 2 2 2 (3) Total 16 22 38 13…
  32. Meetings with Investors – Helmerich & Payne Inc. – slide 32
    H&P Global Fleet Under Term Contract Number of Rigs Already Under Long-Term Contracts* (Estimated Quarterly Average, Including Announced New Builds - as of 10/4/16) Segment Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY16 FY17 FY17 FY17 FY17 FY18 FY18…
  33. Meetings with Investors – Helmerich & Payne Inc. – slide 33
    H&Ps FlexRig Advantage The FlexRig Difference: Key Advantages Increased drilling productivity and reliability Variable frequency AC technology providing precise control and increased capability Computerized electronic driller more…
  34. Meetings with Investors – Helmerich & Payne Inc. – slide 34
    The Value Proposition: The Power of Efficiency Theoretical 20% Efficiency 40% Efficiency Base Case Improvement Improvement 1. Drilling days average 13.5 10.8 8.1 Other days average 5.0 4.0 3.0 Moving days average (several multi-well…
  35. Meetings with Investors – Helmerich & Payne Inc. – slide 35
    Ten-Year Relative Shareholder Return Source: Thomson Reuters as of September 30, 2016.
  36. Meetings with Investors – Helmerich & Payne Inc. – slide 36
    Land Drilling Market Valuations Source: Thomson Reuters as of September 30, 2016.
  37. Meetings with Investors – Helmerich & Payne Inc. – slide 37
    Oil vs. Natural Gas Directed Rig Count
  38. Meetings with Investors – Helmerich & Payne Inc. – slide 38
    Oil and Natural Gas Prices Oil Prices Natural Gas Prices Source: Energy Information Administration and Thomson Reuters.

From the store

Browse maps, data & reports in the Shale Experts store