Helmerick and Payne anticipates drop in rigs and cap-ex

Tulsa’s Helmerich & Payne, Inc. announced a quarterly dividend of 71 cents a share on Thursday and also provided an operational and capital expenditures update. The update shows company concern about its operations in Argentina and a reduction in capital expenditures for 2020.

The dividend will be payable on Dec. 2, 2019 to stockholders of record at the close of business on Nov. 11, 2019.

The company also stated that 200 of its 206 land rigs are active i the quarter, an amount consistent with its previously provided guidance. Company leaders expect quarterly revenue days to decrease by nearly 5 to 6% sequentially representing a nearly 7% decline in the average number of active rigs.

Management anticipates the company will exit the quarter at the low end of its previously guided range of 193 to 203 rigs.

When it comes to the firm’s international operations, leadership is determining the impacts if any on the firm’s financial position in Argentina from two recent governmental decrees impacting the exchange rate and currency controls.

It’s an important determination because during the most recent quarter ending June 30, 2019, nearly 8% of Helmerich and Payne’s consolidated revenue came from its international operations. And 88% of that was from the company’s Argentine operations. Helmerich and Payne has 16 rigs operating in Argentina.

As a result, H and P now expects to be anywhere from $5 million to $15 million below the low end of its fiscal 2019 capital expenditures of $500-$530 million. It also expects the preliminary cap-ex budget for fiscal 2020 will be $300 million.

 

 

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