HELMERICH & PAYNE, INC. Goldman Sachs Global Energy Conference January 2020 Data as of 11/14/2019 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 Consistent Operational Excellence (Safety, Customer Satisfaction, Reliability)…
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 Continue to lead industry in technology and innovation bringing value to customers Grow international business opportunistically Maintain cash…
H&P Global Rig Fleet Rigs Rigs % Available Contracted(2) Contracted U.S. Land 299 190 64% AC Drive FlexRigs 297 190 64% Super-spec 233 180 77% Upgradeable 44 5 11% Other 20 5 25% 3,000 hp SCR Rigs 2 0 0% International Land 31…
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 Approximately 23%* of U.S. land fleet, 37%* of super-spec fleet Distinctively situated as the incremental supplier of super-spec rigs Leveraging position in terms of…
The Replacement Cycle Continues AC Rigs Continue to be the Preferred Choice of Unconventional Drilling 1,150 83% Total of Lower-48 Active Rigs Legacy style rigs (SCR & Mechanical) % of Unconventional Wells 1,100 YTD…
Super-Spec Rigs More Resilient Lower 48 Land Rig Activity (YTD) 1,050 Drilling Unconventional Well Paths Mech. Rigs Number of Active U.S. Land Rigs 900 Unconventional drilling is more efficient SCR Rigs with, and often…
Evolving Commercial Model As H&P demonstrates value creation through operations and safety, and makes investments in technologies and upgrades, the contract model terms must evolve to ensure a reasonable rate of return Current…
Strong Returns and Market Share Growth 25% Market Share (Oct-14 Peak Rig Count) Market Share (Dec-19) Lower-48 Market Share H&P has a higher quality of earnings with a 20% greater number of super-spec rigs that are in demand…
HPT Helmerich & Payne Technologies Adding Value Through Automation: Wellbore Quality, Accuracy & Efficiency H&P Technologies develops, promotes and commercializes software technology offerings that create a compelling value opportunity…
Traditional Directional Drilling Challenges Wellbore Quality Motive uses a data-driven platform intended to enhance wellbore quality and economics Without Motive With Motive Well Design Difficult to Achieve Improved Accuracy Poor…
Wellbore Quality Matters Tortuosity Adversely Affects Overall Well Economics Tortuosity is the amount of bends and twists in a well often referred to as doglegs; unwanted tortuosity is detrimental to well economics. Tortuosity…
MagVAR Survey Correction Wellbore Accuracy Why is Wellbore Placement Critical Reservoir: Directly impacts well performance by increasing the reservoir volume exposed to stimulation; optimal drainage, more frac wings Completions:…
FlexApps Enhancing Well Efficiency FlexApps (software as a service offered through HPT): FlexTorque hardware and software designed to decrease downhole drilling vibrations leading to increased drilling efficiencies and increased bit…
AutoSlide The Next Evolutionary Step in Drilling Automation Uses machine learning and automation to interface with FlexRig control systems to perform slide drilling automatically via computer control (vs. traditional human control)…
Value Driven AutomationTM Converting Art to Science Through acquisitions and internal R&D, H&P has developed an Autonomous Drilling PlatformTM that optimizes and automates total well execution All technologies are not created…
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 Gulf of Mexico 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…
Strong Financial Foundation & Returns Total-Debt-to-Total-Capitalization Ratio1 Dividends Paid (Fiscal 2009 Current) 350 2 billion returned to shareholders in the HP No debt maturity until fiscal 2025 form of dividends during the…
Strong Term Backlog Term Contract Status H&P Global Fleet U.S. Land Term Contract Revenues 100 300 U.S. Land Already Under Long-Term Contracts International Land 1 billion in term revenue backlog (Estimated Annual…
Free Cash Flow Generation Snapshot Super-Spec Investments Provide Solid Footing Estimate of Cash Flow Generated 192* Avg. (per active U.S. FlexRig and using recent guidance) Active rigs H&P has invested in U.S. Land super-spec…
Why H&P in Current Market Conditions U.S. Land industry leader with dominant position Important to be adaptable in volatile markets Majority of rig releases during 2019 related to E&P budgeted rig demand and not dayrate pricing…
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…
Loading...
