HELMERICH & PAYNE, INC. Jefferies 2018 Global Energy Conference November 27-28, 2018 Data as of 11/16/2018 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 350 238 68% AC Drive FlexRigs 348 238 68% Super-spec(1) 210 205 98% Upgradeable 67 25 37% Other 71 8 11% 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 21%* of U.S. land fleet, over 40%* of super-spec fleet, and 60%* of idle upgradeable rigs Distinctively situated as…
Dominant U.S. Land Driller As of November 2018 (1,120 Active Rigs in U.S. Land) Source: RigData. The drawworks capacity of each land rig included in the above analysis was equal to or greater than 600 horsepower. 9 HELMERICH &…
Leading U.S. Unconventional Driller Resource Play ( Rigs, Market Share) Piceance Marcellus Niobrara (5,64%) (3,10%) (6,11%) Utica 9 (7,29%) Haynesville (8,17%) Bakken (9,11%) 6 73 Woodford Permian 5 (34,25%) (121,25%)…
H&P Leads in U.S. Land AC Drive Rigs With 1,500hp Drawworks & 750,000 lb. Hookload H&P has a higher quality of earnings with a greater number of super-spec rigs that are in demand November 2018 activity Unmatched competitive edge…
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 Upgrades Generate High Returns Skidding Upgrade: Cost of upgrade 2-3 million Roughly 40% of upgrades in fiscal 2019 Full after-tax payback 12 to 18 months Walking Upgrade/Conversion: Cost of upgrade 8…
Family of Solutions Commercialization of FlexAppTM Services FlexApps: FlexTorque hardware and software offers less drilling vibration, lowers cost and yields more wells for higher reserves and production. FlexConnect software…
Opportunistic International Growth Important line of business for H&P 8% 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 Assets consist of platform drilling rigs Today requires relatively little capex Yields free cash flow supporting other segments Long operational…
Wellbore Quality & Accuracy Extracting Higher Value from Shale Assets MOTIVE and MagVAR acquisitions create a powerful platform and compelling value opportunity for E&P companies Offers flexibility for E&Ps 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 nearly 10 million feet across all of the major U.S. shale plays…
Magnetic Variation Services Unconventional Drilling - Why Surveying Accuracy Matters MagVAR is a leading provider of measurement while drilling (MWD) geomagnetic referencing and survey quality management Real-time center serving…
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) Solid balance sheet stewardship with lowest debt load among peers Free cash flow available to both invest and…
Strong Term Backlog Term Contract Status H&P Global Fleet U.S. Land Term Contract Revenues Source: Company Filings. Term Contract Status and U.S. Land Term Contract Margins are as of November 16, 2018. 22 HELMERICH & PAYNE, INC.…
Drilling Market Conditions Super-spec rig market fully utilized with tight supply/demand fundamentals Indications that additional demand is forthcoming, even as oil prices have moved lower recently Replacement cycle persists Well…
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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