HELMERICH & PAYNE, INC. Barclays CEO Energy-Power Conference September 6, 2018 Data as of 08/22/2018 unless otherwise noted.
H&P Investment Thesis Industry Leader in U.S. Land Drilling FlexRig Fleet Poised for Continued Market Share Gains Most Capable and Uniform Fleet Outperformed OSX in 8 Out of Last 10* Years Consistent Operational Excellence…
H&P Today Founded in 1920, H&P is the industrys most trusted drilling partner. Committed to operational excellence and conservative financial discipline, H&P is the recognized industry leader in drilling as well as technological…
H&Ps Winning Strategy Todays Focus Points Execute as the dominant U.S. land driller Grow international business opportunistically Maintain cash flow generating offshore exposure Continue to lead industry in technology and…
H&P Global Rig Fleet Rigs Rigs % Available Contracted Contracted U.S. Land 350 228 65% AC Drive FlexRigs 348 228 66% (1) Super-spec 201 195 97% Upgradeable 76 24 32% Other 71 9 13% 3,000 hp SCR Rigs 2 0 0% Offshore 8 6 75%…
Competitive Benefits of Uniform Fleet Uniform fleet creates adaptive environment to reach maximum efficiency for people, equipment and technology Uniform fleet is critical in increasingly complex basins providing consistent and…
Differentiated from Land Drilling Peers Leading U.S. market share with significant growth trajectory Approximately 20%* of U.S. land fleet, over 40%* of super-spec fleet, and over 60%* of idle upgradeable rigs Distinctively situated…
Dominant U.S. Land Driller As of August 2018 (1,095 Active Rigs in U.S. Land) 24% Estimated Market Share 18% 12% 6% 0% HP PTEN NBR PDS Source: RigData. The drawworks capacity of each land rig included in the above…
Leading U.S. Unconventional Driller Resource Play ( Rigs, Mkt Share) Utica (5,9%) Niobrara (3,28%) Other Prospect (1) 8 Marcellus (6,10%) Piceance Basin (7,70%) Haynesville (7,18%) 5 36 Bakken (8,14%) 7 Woodford Permian…
H&P Leads in U.S. Land AC Drive Rigs With 1,500hp Drawworks & 750,000 lb. Hookload 320 H&P has a higher quality of earnings with a Number of AC Rigs in U.S. with 1,500 hp greater number of super-spec rigs that are in Drawworks &…
Super-Spec and Upgradable Utilization Super-Spec Specifications Industry Super-Spec Utilization AC drive 1,500 hp drawworks 750,000 lb hookload rating 7,500 psi mud circulating system Multiple-well pad capable Additional…
Super-Spec Upgrade Program 200 180 Upgrades Generate High Returns H&P's Super-Spec Rigs 160 140 Skidding Upgrade: 120 Cost of upgrade 2-3 million 100 80 Roughly 65% of upgrades in fiscal 2018 60 Full after-tax payback 12…
Opportunistic International Growth Important line of business for H&P 9% of companys total active rig count Adds diversification, long-term contracting and growth opportunities, especially with unconventional shale growth…
Established Offshore Business Legacy business for H&P Drilling offshore since 1968 Today requires relatively little capex Yields free cash flow supporting other segments Long operational track record Niche business line in the…
Wellbore Quality & Accuracy Extracting Higher Value from Shale Assets Recent MOTIVE and MagVAR acquisitions create a powerful platform and compelling value opportunity for E&P companies Offers flexibility to select best technology…
MOTIVE Drilling Technologies MOTIVE is the industry leader in the use of cognitive computing to guide the directional drilling process. MOTIVE has commercially drilled more than 8 million feet on over 600 wells across all of the…
Magnetic Variation Services Unconventional Drilling - Why Surveying Accuracy Matters MagVAR is a leading provider of MWD geomagnetic referencing and survey quality management Real-time center serving active horizontal rigs drilling…
H&P FlexRig AutoSlide SM The Next Evolutionary Step in Drilling Automation Standardizes highest quality well paths by providing automated and optimized slide execution with no human dependency Searches for optimal parameters in…
Strong Financial Foundation & Returns Total-Debt-to-Total-Capitalization Ratio1 Dividends Paid (Fiscal 2008 Current) 350 HP No debt maturity until fiscal 2025 Over 1.5 billion returned to 300 shareholders in the form of…
Strong Term Backlog Term Contract Status H&P Global Fleet U.S. Land Term Contract Revenues 140 800 U.S. Land International Land 700 Already Under Long-Term Contracts 120 Offshore 1.1 billion in term revenue backlog…
Drilling Market Conditions Crude oil prices are roughly 30% higher than they were when many E&Ps set their 2018 capex budgets Higher oil prices boding well for increasing drilling demand and improving dayrates Customer level of…
Why H&P U.S. Land industry leader with dominant position poised for future gains Stock performance supported by operational excellence, financial strength and technological innovations Fiscal discipline leads to superior returns,…
Helmerich & Payne, Inc. Thank you for your interest in H&P. Our stock is traded on the NYSE, ticker symbol - HP For more information please visit our website at www.hpinc.com or contact: Dave Wilson, CFA, CPA Director of Investor…
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