• The Enterprise Rent-A-Car of oil drilling rigs.
• The Caterpillar of advanced oil drilling services.
• The Tesla of oil drilling technology and services.

• Contract Drilling Services: Provides advanced, high-performance AC drive drilling rigs (FlexRigs) and skilled crews for the onshore drilling of oil and natural gas wells.
• Drilling Technology Solutions: Offers a suite of software, hardware, and data analytics tools designed to enhance drilling efficiency, wellbore accuracy, and overall operational performance for customers.

For the public company Helmerich & Payne (symbol: HP), its major customers are other companies in the oil and gas exploration and production (E&P) sector.

Helmerich & Payne (HP) primarily sells its advanced drilling rigs and services to other companies. According to its public filings, HP does not typically disclose specific major customers by name because no single customer has accounted for 10% or more of its consolidated operating revenues in recent fiscal years. Instead, HP serves a diverse customer base, which can be broadly categorized as follows:

• Independent Oil and Gas Companies: These are companies primarily focused on exploration and production activities, typically without significant refining or marketing operations. They range from large independents to smaller regional players. Examples of such companies (which may or may not be direct customers of HP at any given time) include:
  • EOG Resources (NYSE: EOG)
  • ConocoPhillips (NYSE: COP)
  • Occidental Petroleum (NYSE: OXY)
• Integrated Oil and Gas Companies: These are large, multinational companies involved in all aspects of the oil and gas industry, encompassing exploration, production, refining, transportation, and marketing. Examples of such companies (which may or may not be direct customers of HP at any given time) include:
  • ExxonMobil (NYSE: XOM)
  • Chevron (NYSE: CVX)
  • BP plc (NYSE: BP)
  • Shell plc (NYSE: SHEL)
• National Oil and Gas Companies: These are typically state-owned or state-controlled entities that manage the oil and gas resources of their respective countries. While many are not publicly traded on major Western exchanges, some have publicly traded components. Examples of the types of entities that fall into this category (some of which are public or have public subsidiaries, and may or may not be direct customers of HP at any given time) include:
  • Petrobras (NYSE: PBR) (Brazilian national oil company)
  • Saudi Aramco (TADAWUL: 2222) (Saudi Arabian national oil company, traded on the Tadawul exchange)
  • Various other state-owned entities or their subsidiaries in regions where HP operates.

• NOV Inc. (NYSE: NOV)
• Caterpillar Inc. (NYSE: CAT)
• Cummins Inc. (NYSE: CMI)

John W. Lindsay, Chief Executive Officer

J. Kevin Vann, Senior Vice President and Chief Financial Officer

Raymond John "Trey" Adams III, President

Michael P. Lennox, Executive Vice President of Western Hemisphere Land Operations

John R. Bell, Executive Vice President of Eastern Hemisphere Land Operations

The key risks to Helmerich & Payne's business include the inherent cyclicality and volatility of the oil and gas market, challenges in international operations coupled with geopolitical instability, and integration and impairment risks stemming from acquisitions and increased leverage.

1. Market Cyclicality and Volatility of Oil & Gas Prices: Helmerich & Payne's demand and profitability are highly susceptible to the cyclical nature of the oil and gas industry, which is driven by volatile commodity prices, capital expenditure cycles, and global geopolitical tensions. Fluctuations in oil prices directly impact exploration and production activities, leading to potential decreases in demand for H&P's drilling services and subsequently affecting revenues.
2. Challenges in International Operations and Geopolitical Risks: The company faces significant risks associated with its international operations, particularly evident in regions like Saudi Arabia, where political, regulatory, and economic instability can lead to operational disruptions. A notable example includes rig suspensions in Saudi Arabia due to a shift in the country's energy strategy towards unconventional gas exploration, impacting H&P's conventional drilling fleet and overall operational capacity. Geopolitical events in regions such as the Middle East and Latin America can result in project delays or cancellations.
3. Integration and Impairment Risks from Acquisitions and High Leverage: Acquisitions, such as that of KCA Deutag, introduce operational, integration, and financial risks. Helmerich & Payne has experienced goodwill impairments, underscoring the challenge of successfully integrating acquired operations and realizing anticipated benefits. Post-acquisition, the company also faces elevated leverage, which increases interest expenses and financial risk, necessitating close monitoring for potential impairment.

The accelerating global energy transition and decarbonization efforts represent a clear emerging threat. This trend, driven by environmental concerns, government policies, and increasing investment in renewable energy sources, poses a fundamental threat to the long-term demand for oil and natural gas, the primary commodities that Helmerich & Payne's drilling rigs are used to extract. As the world shifts away from fossil fuels, the addressable market for drilling services may contract, leading to reduced demand for rigs, lower utilization rates, and downward pressure on day rates for HP's services over time.

Helmerich & Payne (HP) primarily provides contract drilling services and solutions for oil and gas exploration and production companies globally, with operations segmented into North America, the Offshore Gulf of Mexico, and International Solutions.

Addressable Markets for Helmerich & Payne's Main Products and Services:

• North America Solutions (Land Rigs): The drilling rig market in the United States, a key region for Helmerich & Payne's North America Solutions segment, was valued at approximately USD 18.82 billion in 2023 and is projected to reach USD 26.57 billion by 2029, demonstrating a compound annual growth rate (CAGR) of 5.76%. North America as a whole held the largest revenue share in the global drilling rig market in 2024, at 38.5%, with the U.S. contributing the most within this region.
• Offshore Gulf of Mexico (Offshore Platform Rigs): The U.S. offshore drilling market was valued at USD 2.08 billion in 2022 and is projected to grow at a CAGR of 6.25% through the forecast period. Furthermore, North America held a significant share of the global offshore contract drilling market, with an estimated value of USD 22.0 billion in 2023, which is expected to rise to USD 28.4 billion by 2032.
• International Solutions (International Land Rigs): Helmerich & Payne conducts international drilling operations in regions such as Argentina, Bahrain, Colombia, and the United Arab Emirates. The broader global drilling rig market, which encompasses international land drilling, was estimated at USD 83.58 billion in 2024 and is projected to grow to USD 138.61 billion by 2033, with a CAGR of 6.0% from 2025 to 2033. Another estimate places the global drilling rig market at USD 99.66 billion in 2025. The global oil and gas wells drilling services market, which includes international operations, was valued at $50.21 billion in 2024 and is projected to grow to $59.12 billion in 2029.

Helmerich & Payne (HP) is expected to drive future revenue growth over the next 2-3 years through several key strategies:

1. International Expansion and Market Penetration: The company's acquisition of KCA Deutag is a significant step to establish H&P as a global leader in onshore drilling solutions, expanding its geographic and operational mix. This expansion includes the successful deployment of eight super-spec FlexRigs to Saudi Arabia for unconventional natural gas drilling, a move expected to contribute approximately $20 million of incremental EBITDA once fully operational. Management views the KCA Deutag acquisition and organic growth initiatives as providing a market-leading position in the Middle East and accelerating its international growth strategy.
2. Sustained Strong Performance and Market Share in North American Solutions: Helmerich & Payne continues to maintain a strong market share in North America, particularly in the Permian Basin, with over 35% market share of super-spec rigs. The company anticipates generating at least $1 billion of annual direct margin in its North America Solutions segment for fiscal 2025, supported by a significant term-contract backlog of approximately $700 million. H&P's strategy includes a focus on performance contracts and maintaining strong direct margins in this segment.
3. Leveraging Technology and Innovation for Enhanced Drilling Productivity: H&P emphasizes a strategy focused on long-term profitable growth and forward-looking products and services. The company is committed to technologies and innovation that enhance efficiency and deliver desired drilling outcomes for its customers, including investments in innovative equipment and technology-driven solutions.
4. Growth in Natural Gas Demand: With the acquisition of KCA Deutag, Helmerich & Payne has increased exposure to international markets, including countries with substantial proven natural gas reserves. This positioning allows H&P to capitalize on the sustained demand for natural gas, which is seen as crucial for its growth in the coming years despite increasing calls for renewables.

Share Repurchases

• A share repurchase authorization was noted on June 7, 2023.
• In fiscal year 2023, approximately $450 million was returned to shareholders, which included opportunistic share repurchases.
• For fiscal year 2024, roughly $200 million of free cash flow was allocated to a base dividend, a supplemental dividend, and share repurchases.

Outbound Investments

• Helmerich & Payne completed the acquisition of KCA Deutag in January 2025, a strategic move valued at approximately $5.5 billion.
• This acquisition positions H&P as a global leader in onshore drilling solutions and aims to accelerate international growth, particularly in the Middle East.
• The acquisition is expected to generate $50-$75 million in synergies and other cost savings for the remainder of fiscal 2025.

Capital Expenditures

• For fiscal year 2025, gross capital expenditures are expected to be between $360 million and $395 million, inclusive of expanded international business post-acquisition.
• Capital expenditures for fiscal year 2024 were approximately $495.07 million. This increase was primarily driven by the timing of procurement for equipment overhauls and long-term projects, including international expansion.
• In prior fiscal years, capital expenditures were approximately $395.46 million in 2023, $272.54 million in 2022, and $82.15 million in 2021.