HELMERICH & PAYNE, INC. Meetings with Investors June 24-27, 2019 Data as of 4/24/2019 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 (Safety,…
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 350 220 63% AC Drive FlexRigs 348 220 63% Super-spec(1) 230 207 90% Upgradeable 47 8 17% Other 71 5 7% 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 provides consistent and reliable operations in increasingly complex…
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 50%* of idle upgradeable rigs Distinctively situated as…
Leading U.S. Unconventional Driller Resource Play ( Rigs, Market Share) (5,90%) (5,13%) (7,14%) 8 (7,17%) (8,13%) 7 57 (10,17%) 5 (114,24%) (25,25%) 25 114 10 39 (39,40%) Broad exposure to U.S. unconventional…
Strong Returns and Market Share Growth H&P has a higher quality of earnings with a greater number of super-spec rigs that are in demand Unmatched competitive edge super-spec and upgradeable rig fleet ready to meet 2014 peak…
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 H&Ps Super-Spec Upgrades Upgrades generate high returns H&P investing capital to grow the fleet size of its super-spec rigs faster and larger than competitors Over 40% super-spec market share with 230…
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 7% 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…
Traditional Directional Drilling Challenges Without Motive Motive Results Well Design Difficult to Achieve Improved Accuracy Poor drilling accuracy Well Drilled to Plan Missed targets/pay zones More time in pay zone Planned…
MOTIVE Bit Guidance System Motive has commercially drilled over 12 million feet on over 800 wells across all of the major U.S. shale plays and Canada Motive has been issued 19 U.S. Patents Today Motive operates on both H&P FlexRigs…
MagVAR Survey Correction Unconventional Drilling Why Surveying Accuracy Matters The path can be as important as the MagVAR high accuracy modeling of the Earths crustal destinationThe industry is leaving hydrocarbons magnetic field…
Optimized Wellbore Placement Why is Wellbore Placement Critical Reservoir: Directly impacts well performance by increasing stimulate reservoir volume; optimal drainage, more frac wings Completions: improving hydraulic communication…
Path Towards Automation Using the autonomous car analogy, H&P with its new AutoSlide functionality is entering level 4 out of the 5 levels, where there is still a driver but he is not required to touch the steering wheel except in rare…
AutoSlide 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 real-time to…
H&P FlexRig AutoSlide Currently outperforming very experienced directional drillers Less overall time to drill the curve Improved tool face precision While the Motive Bit Guidance System can be used on all rigs, AutoSlide is only…
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 HELMERICH & PAYNE, INC. 2019 24
Why H&P in Current Market Conditions U.S. Land industry leader with dominant position poised for future gains Important to be adaptable in volatile markets Rig release notifications from the beginning of the year have moderated…
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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