Helmerich & Payne, Inc. May 2023 Financial data as of 03/31/2023; other data as of 04/26/2023 unless otherwise noted. 2022 Helmerich & Payne, Inc. All Rights Reserved. 1
Helmerich & Payne H&P is recognized as the industry leader in unconventional drilling solutions as well as technological innovation. H&P TODAY H&P operates in 3 segments (% of revenue at 03/31/23) o North America Solutions 88%…
Current Highlights Increased NAS direct margins(1) over 100% in FY22(2) and 40% in FY23(2) Driving up revenue/day & direct margin/day: Targeting 30k/day in revenue/day in NAS achieved in 1QFY23 Targeting 50% direct margins in NAS…
H&Ps Winning Strategy Global Drilling Solutions Provider Focus on Customercentricity Evolve commercial model to be customer centered and value driven Continue to lead industry in technology automation adoption and…
Our Approach Customercentricity Where we lead: What we own: How we do it: What customers want: Unconventional drilling Delivering better People, processes, Consistency in drilling outcomes automation, fleet, execution and…
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 99% of Total NAS Fleet Rigs Rigs % (1) Available Contracted Contracted North America Solutions 233 169 73% Super-Spec FlexRig Fleet 231 167 72% Other AC-Style FlexRig 2 2 100%…
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…
Benefits of Allocating Capital Internationally Taking industry leading unconventional drilling expertise, consisting of rigs, technology, people and processes, to emerging unconventional plays around the globe Diversification from…
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…
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
Fiscal 2023 Cash Projection 1,750 1,500 65 400 - 450 Projecting to return 210 million in cash to shareholders Implied 25 YTD share repurchases of 145 million; still have 1,250 availability for accretive investment opportunities,…
H&Ps Commitment to Capital Allocation RETURNS TO SHAREHOLDERS Established base dividend Supplemental dividends Opportunistic share repurchases (5 million share authorization for calendar 2023*) CAPITAL EXPENDITURES CASH FLOW…
2023 Supplemental Shareholder Return Plan Returning 2/3 of Projected Cash Flow After Capex to Shareholders Cash Flow From Operations Less: FY2023 Planned Capex 400-450MM Less: FY2023 Planned Base Dividend 110MM 50%* Remaining…
Leading Shareholder Returns Total Cash Returned Per Share 18 Total Cash Returned Per Share 2016-2022 15 12 Already Leader in Providing Shareholder Returns 9 6 Total Cash Returned Yield 3 6% Total Cash Return Yield…
Fiscal 2023 Capital Expenditures Budget 400 - 450 Million Maintenance: 1.1 - 1.3 million per active rig Reactivation: 1.0 - 4.0 million per rig Conversion: 6 planned rig conversions; 7 million per rig North America Solutions…
Generating Returns at Lower Capital Intensity Revenue per rig back to a level where the returns generated are above cost of capital... but at a much lower capital intensity level. *Revenue per Rig includes 0.9 million…
Higher Margins and Cash Flows Drive Value Creation 40.0 North America Solutions - Per Day (in thousands) 35.0 Cash flow leveraged to increasing margins is evident 30.0 29.5 Lower capital intensity combined with higher direct…
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 16%; average 35% Cash…
Conservative Capital Structure Total-Debt-to-Capitlization Ratio(1) Net Debt / LTM Cashflow from Ops(3) Total Liquidity (MM) 4.0x 1,200 200% Liquidity as a % of Debt HP 16% 84% Total Liquidity Available 3.5x 3.4x 3.3x 1,050…
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 Efficient 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 Sustainability Report Issued December 2022 Highlights Provides: Environmental management and oversight practices Strong use of data to report over 40 environmental metrics, including Scope 1 & 2 emissions data Includes…
H&P CO2 Emissions 25,000 75 H&P has a history of taking thoughtful and 20,000 Emissions per kilometer 70 methodical approaches to solving drilled declining problems and working with customers to (in metric tons C02e) optimize…
H&P Investment Thesis INDUSTRY LEADER AS AN UNCONVENTIONAL DRILLING SOLUTIONS PROVIDER Largest, Uniform and Most Capable Fleet Consistent Operational Excellence (Safety, Customer Satisfaction, Reliability) Technology and…
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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