Helmerich & Payne Announces Third Quarter Results
TULSA, Okla.--(BUSINESS WIRE)--July 21, 1999--Helmerich & Payne
Inc. (NYSE:HP) reported net income of $12,196,000 ($0.24 per share)
from revenues of $131,799,000 for the third quarter ended June 30,
1999, compared with net income of $33,861,000 ($0.67 per share) from
revenues of $177,136,000 for the third quarter of the prior fiscal
year.
Net income for the first nine months of this fiscal year totaled
$32,359,000 ($0.65 per share) from revenues of $431,037,000, compared
with net income of $82,363,000 ($1.62 per share) from revenues of
$471,348,000 recorded for the same period last year.
Included in third quarter net income were gains from the sale of
portfolio securities of $0.01 per share, compared with $0.26 per share
during last year's third quarter. Net income from security sales for
the nine months ended June 30 was $0.02 per share for 1999, and $0.33
per share for 1998.
Operating profits for both domestic and international contract
drilling operations were down substantially from the previous quarter
and from the third quarter of last year. U.S. land rig utilization
during the quarter was 53%, compared with 74% the previous quarter,
and 95% during last year's third quarter. Average U.S. land rig
dayrates were down by approximately 5% from the previous quarter and
19% from last year's third quarter.
Included in this quarter's domestic operating results are $10.4
million of revenue and $2.3 million in earnings from the Company's
Jade construction project. The project neared completion during the
third quarter, and could produce as much as a half million dollars of
operating profit during the fourth quarter. Additionally, the
Company's two offshore platform rigs that were idle for most of the
third quarter are now under contract and will earn revenues in the
fourth quarter. Even with those improvements, domestic contract
drilling earnings will most likely decline during the next quarter.
International rig utilization fell to 49% for this year's third
quarter, compared with 56% the previous quarter, and 91% during last
year's third quarter. The most significant declines in utilization and
earnings occurred at the Company's largest international operations in
Venezuela and Colombia. During the quarter, Rig 200, the offshore
platform rig located in Australia owned in a 50-50 partnership with
Atwood Oceanics, ceased operations and is now stacked. The Company
also expects to record lower international earnings during the next
quarter.
Operating earnings for the Company's Exploration and Production
Division improved over this year's second quarter, but were down from
last year's third quarter due to higher dry hole costs, and
depreciation and depletion charges. During the fourth quarter, the
Company will be drilling a significant development well in its
Dixieland prospect, and continuing its drilling in Jefferson County,
Texas, where four successful exploratory wells, in which H&P owns
approximately 33%, are at various stages of completion. The Company
participated in two dry holes during the quarter, resulting in
approximately $1.0 million of dry hole expense.
Company President and CEO, Hans Helmerich, commented, "Although
there has been recent improvement in the price of crude oil, the
volatility of pricing, combined with mergers among customers, have
caused a more conservative approach to current capital spending and
will have a negative impact on Company earnings near-term. However, we
are optimistic about the general improvements in the industry and are
financially and operationally positioned in both our contract drilling
and exploration and production divisions to capitalize on
opportunities this market provides."
Helmerich & Payne Inc. (NYSE:HP) is an energy-oriented company
engaged in contract drilling and oil and gas exploration and
production. Its contract drilling subsidiary operates 35 land rigs and
10 platform rigs in the U.S., and 43 land rigs in South America. The
Company also holds substantial equity investments in several other
publicly owned corporations.
The information contained within this announcement is
forward-looking and involves risks and uncertainties that could
significantly impact expected results. A discussion of these risks and
uncertainties is contained in the Company's Form 10-Q filed with the
Securities and Exchange Commission on May 14, 1999.
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HELMERICH & PAYNE INC.
Unaudited
(000's except per share data)
06/30/99 09/30/98
Consolidated Condensed Balance Sheets
ASSETS:
Total current assets $ 174,541 $ 184,345
Investments 237,728 200,400
Net property, plant, and equipment 693,556 692,371
Other assets 12,569 13,314
TOTAL ASSETS $1,118,394 $1,090,430
LIABILITIES AND
SHAREHOLDERS' EQUITY:
Total current liabilities $ 95,562 $ 125,484
Total noncurrent liabilities 184,739 171,798
Total Shareholders' Equity 838,093 793,148
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $1,118,394 $1,090,430
Three Months Ended Nine Months Ended
June 30 June 30
1999 1998 1999 1998
Consolidated Statements of Income
REVENUES:
Sales and other operating
revenues $129,284 $153,902 $425,844 $438,836
Income from investments 2,515 23,234 5,193 32,512
131,799 177,136 431,037 471,348
COST AND EXPENSES:
Operating costs 73,888 91,976 256,793 249,848
Depreciation, depletion
and amortization 25,341 21,195 82,711 59,032
Dry holes and abandonments 3,063 1,967 6,956 9,273
Taxes, other than
income taxes 5,975 6,900 19,050 17,877
General and administrative 3,296 2,406 11,413 8,801
Interest 1,928 572 5,407 631
113,491 125,016 382,330 345,462
INCOME BEFORE INCOME TAXES
AND EQUITY IN INCOME
OF AFFILIATE 18,308 52,120 48,707 125,886
INCOME TAX EXPENSE 7,293 19,836 19,190 47,876
EQUITY IN INCOME OF AFFILIATE,
net of income taxes 1,181 1,577 2,842 4,353
NET INCOME $ 12,196 $ 33,861 $ 32,359 $ 82,363
EARNINGS PER COMMON SHARE:
Basic $ 0.25 $ 0.68 $ 0.66 $ 1.65
Diluted $ 0.24 $ 0.67 $ 0.65 $ 1.62
Average common shares
outstanding:
Basic 49,252 50,078 49,211 50,045
Diluted 49,933 50,540 49,730 50,738
HELMERICH & PAYNE INC.
Unaudited
(in thousands)
Three Months Ended Nine Months Ended
June 30 June 30
1999 1998 1999 1998
Financial Results - Lines of Business
SALES AND OTHER REVENUES:
Contract Drilling -
Domestic $ 47,848 $ 46,781 $165,983 $131,121
Contract Drilling -
International 42,528 69,202 147,066 182,873
Total Contract
Drilling
Division 90,376 115,983 313,049 313,994
Exploration and
Production 22,364 22,296 67,641 76,697
Natural Gas Marketing 13,993 12,890 38,649 41,045
Total Oil and Gas
Division 36,357 35,186 106,290 117,742
Real Estate Division 2,188 2,541 6,476 6,773
Investments and Other
Income 2,878 23,426 5,222 32,839
Total Revenues $131,799 $177,136 $431,037 $471,348
OPERATING PROFIT:
Contract Drilling -
Domestic $ 6,332 $ 9,363 $ 25,700 $ 27,009
Contract Drilling -
International 7,307 13,414 26,330 42,272
Total Contract
Drilling
Division 13,639 22,777 52,030 69,281
Exploration and
Production 5,445 7,299 3,680 28,794
Natural Gas Marketing 1,023 651 3,003 1,686
Total Oil and
Gas Division 6,468 7,950 6,683 30,480
Real Estate Division 1,333 1,723 3,994 4,443
Total Operating
Profit 21,440 32,450 62,707 104,204
OTHER (3,132) 19,670 (14,000) 21,682
INCOME BEFORE INCOME
TAXES AND EQUITY IN
INCOME OF
AFFILIATE: $ 18,308 $ 52,120 $ 48,707 $125,886
Average Production and Prices
Production
Oil - Barrels
Per Day 1,718 1,886 1,743 1,962
Natural Gas -
Mcf Per Day 122,049 112,534 122,373 115,103
Sales Prices
Oil - $ Per Barrel 15.66 12.89 12.69 15.52
Natural Gas -
$ Per Mcf 1.80 1.94 1.69 2.15
CONTACT:
Helmerich & Payne Inc., Tulsa
Doug Fears, 918/748-5208 |
