Helmerich & Payne, Inc. October 2022 Financial data as of 6/30/2022; other data as of 9/30/2022 unless otherwise noted. 2022 Helmerich & Payne, Inc. All Rights Reserved. 1
Helmerich & Payne H&P is recognized as the industry leader in drilling solutions as well as technological innovation. H&P TODAY H&P operates in 3 segments (% of revenue at 6/30/22) o North America Solutions 88% market leader in…
Current Highlights Increased NAS rig count 33% in 1HFY22 Substantially increasing NAS direct margins(1) in 2HFY22 (2) Driving up revenue/day: Targeting 50% direct margins(1) in NAS with increasing pricing Double-digit ROIC/ROCE…
H&Ps Winning Strategy Global Drilling Solutions Provider Evolve commercial model to be customer centered and value driven Continue to lead industry in technology automation adoption and differentiation International expansion…
Differentiated from Land Drilling Peers Strategic advantages innovation, economies of scale, operational efficiency, financial flexibility, and risk reduction Changing the commercial model H&P provides distinctive value to…
H&P Global Rig Fleet Super-Spec Rigs Represent Super-Spec Rigs Represent 97% of Total Land Fleet 97% of Total Land Fleet Rigs Rigs % Available Contracted (1) Contracted U.S. Land 236 176 75% Super-Spec FlexRig Fleet 230 174 76%…
Benefits of Long Economic Life Assets Long economic life exceeds accounting life Weighted average accounting life is 15 years for a super-spec FlexRig drilling rig, but economic life is 30 years Major rig assemblies mast and…
International Expansion Benefits of Allocating Capital Internationally Diversification from U.S. and outlet for super-spec FlexRig fleet capacity Exporting U.S. rigs for appropriately scaled opportunities offers growth outside of…
H&P Offerings Create Compelling Value Opportunities for E&Ps
Value Proposition Wellbore Quality & Placement Lower Cost Consistency at Reduced Risk Optimize drilling economics Drill an efficient well, reducing Provide reliable, repeatable results to customer specifications non-productive…
H&P Drilling Solutions Addressing Industry Challenges Through Automation The oil and gas industry is still heavily dependent on human decision making to design, execute, and optimize oil and gas extraction. H&P INDUSTRY CHALLENGE…
Drilling Solutions Value Proposition More than drilling a hole in the ground Value over the life of the well Drilling Completions Production Primary Focus Drilling Time & Cost Human decisions and execution variable,…
Evolving Commercial Model H&P has a long track record of providing value to customers, the commercial model must evolve to ensure a reasonable rate of return Current day-rate model does not adequately compensate for value being…
H&P is Built to Withstand Volatile Markets
H&Ps Commitment to Capital Allocation RETURNS TO SHAREHOLDERS Established base dividend Supplemental dividends Opportunistic share repurchases CAPITAL EXPENDITURES CASH FLOW CAPITAL Maintenance moves with active rig count FROM…
2023 Supplemental Shareholder Return Plan Cashflow From Operations Less: FY2023 Planned Capex 425-475MM Less: FY2023 Planned Base Dividend 110MM 50%* Remaining Cashflow as Supplemental Dividend 100MM 50%* Remaining Cashflow:…
Leading Shareholder Returns Total Cash Returned Per Share 16 Total Cash Returned Per Share 2016-2021 12 Already Leader in Providing Shareholder Returns 8 4 Total Cash Returned Yield 0 6% HP SLB BKR HAL PTEN FTI NOV…
Fiscal 2023 Capital Expenditures Budget 425 - 475 Million Maintenance: Upper target of 192 rigs; 1.1 - 1.3 million per active rig Reactivation: Up to 16 rig reactivations based on demand (includes reactivation of 6 planned…
Generating Returns at Lower Capital Intensity Revenue Per Rig 14 Revenue per Rig Millions 13 12 Revenue per rig back 11 to a level where the 10 returns generated are 9 above cost of capital... 8 7 2014 2015 2016 2017…
H&P Compelling Energy Investment 28 Energy Companies in S&P 600 Index 14 OFS, 7 E&Ps, 5 Refining & Marketing, 2 Other H&P Stands Out Balance Sheet Strength H&P ranks in top quartile in debt-to-cap at 17%; average 42% Cash…
Conservative Capital Structure Total-Debt-to-Capitlization Ratio(1) Net Debt / LTM Cashflow from Ops(3) Total Liquidity (MM) 7.0x 1,200 200% 6.3x Liquidity as a % of Debt Total Liquidity Available HP 17% 83% 6.0x 1,050 175%…
Helmerich & Payne ROOTED IN OUR CORE VALUES DO THE RIGHT THING H&P continues to refine and evolve its sustainability strategy. Implementing, executing and monitoring the strategy is multi-faceted, spanning across various…
Reducing Carbon Footprint Operating and Investing OPERATING Drilling efficiencies operational and technological expertise Engine management optimizing engine output to operational power demand Alternative power sources for customers…
Improving Lives Through Affordable and Responsible Energy WE ARE FOCUSED ON UNDERSTANDING OUR IMPACTS AND ULTIMATELY DEVELOPING STRATEGIES ROOTED IN OUR CORE VALUES TO MANAGE THEM ENVIRONMENTAL SOCIAL GOVERNANCE Environmental…
H&P Inaugural Sustainability Report Issued December 2021 Highlights Provides: Environmental management and oversight practices Strong use of data to report over 40 environmental metrics, including Scope 1 & 2 emissions data…
H&P CO2 Emissions Normalized by Distance Drilled FY 2018 FY 2019 FY 2020 FY 2021 75 25 H&P has a history of taking thoughtful and methodical approaches to solving 70 20 problems and working with customers to optimize solutions…
H&P Investment Thesis INDUSTRY LEADER AS A DRILLING SOLUTIONS PROVIDER Largest, Uniform and Most Capable Fleet Consistent Operational Excellence (Safety, Customer Satisfaction, Reliability) Technology and Innovation Leader…
Helmerich & Payne, Inc. Thank You for Your Interest in H&P For more information, please visit our website at www.helmerichpayne.com Contact: Dave Wilson, CFA, CPA VP of Investor Relations 918-588-5190, investor.relationshpinc.com…
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