Helmerich & Payne Inc. Announces Fiscal Year Earnings
TULSA, Okla.--(BUSINESS WIRE)--Nov. 4, 1999--Helmerich & Payne,
Inc. announced net income of $42,788,000 ($0.86 per share) from
revenues of $564,319,000 for the fiscal year ended September 30, 1999.
Net income for the previous year was $101,154,000 ($2.00 per share)
from revenues of $636,640,000. Fourth quarter net income was
$10,429,000 ($0.21 per share) from revenues of $133,282,000, compared
with net income of $18,791,000 ($0.38 per share) from revenues of
$165,292,000 for 1998. Net income included gains from the sale of
equity securities of $0.03 per share for 1999, and $0.46 per share for
1998. Fourth quarter net income from securities sales totaled $0.01
per share in 1999, and $0.13 per share in 1998.
The Company's earnings were negatively impacted by lower rig
utilizations and declining dayrates in both U.S. and international
contract drilling markets. For this year, U.S. land rig utilization
averaged 69%, while international rig utilization averaged 53%. Last
year's rig utilizations were 94% and 88%, respectively. The Company's
U.S. offshore platform fleet recorded an average rig utilization of
95% for this fiscal year, compared with 99% for 1998. Revenues and
costs were higher for domestic operations during 1999 due to the
construction of an offshore platform rig for Mobil s Jade project.
Hans Helmerich, Company CEO and President, commented, "During the
past twelve months, crude oil and natural gas prices fell to cyclical
lows, dramatically impacting both oil service and exploration and
production companies. Capital spending budgets were slashed by most
companies, many of which also reported financial losses. We've been
fortunate to remain profitable throughout the downturn because of our
well-established position as a premium land and offshore contractor,
and the Company's strong financial condition and diversification. Now
that commodity prices have increased, we are expecting industry
earnings and capital budgets for the year 2000 to reflect the improved
conditions. Although recovery in the oil service sector will be slower
than what we would like, we are in great shape to move forward."
The Company's Exploration & Production Division was directly
impacted by the volatility in oil and natural gas prices. Natural gas
prices for this year averaged $1.83 per mcf, compared with $2.04 per
mcf the previous year. Average natural gas production rose to 121.2
mcf/d, from 117.4 mcf/d last year. Oil prices for the Company rose
dramatically, averaging $19.67 per barrel during the fourth quarter,
but only $14.60 per barrel for the entire year, compared with $14.74
per barrel last year. Oil production increased sharply in the fourth
quarter to an average of 1,916 barrels a day, although the entire year
s average was only 1,779 barrels a day, compared with 1,921 barrels
last year. The fourth quarter increase in oil production was primarily
due to the drilling and completion of an exploratory well in the
Company's Lovells Lake prospect in south Texas, and a development well
in Kansas. Both successes were aided by 3-D seismic technology.
Increased seismic expense, amortization of lease bonuses, depletion
and depreciation, and impairment charges accounted for $15.9 million
of the decrease in this year's division operating profit.
Mr. Helmerich continued his comments, "The Company invested a
substantial portion of its E&P budget last year in acreage and 3- D
seismic programs. Although these investments negatively impact
earnings in the short term, we are optimistic about the value-added
potential of the resulting exploration prospects scheduled to be
drilled during the coming year."
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 currently operates 37
land rigs and 10 platform rigs in the U.S., 39 land rigs in South
America, and three land rigs in transit from South America to the U.S.
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 August 14, 1999.
HELMERICH & PAYNE, INC.
Unaudited
(in thousands, except per share data)
09/30/99 09/30/98
Consolidated Condensed Balance Sheets
ASSETS:
Total current assets $ 160,624 $ 184,345
Investments 238,475 200,400
Net property, plant, and equipment 691,215 692,371
Other assets 19,385 13,314
TOTAL ASSETS $1,109,699 $1,090,430
LIABILITIES AND SHAREHOLDERS' EQUITY:
Total current liabilities $ 71,904 $ 125,484
Total noncurrent liabilities 139,686 121,798
Long-term debt 50,000 50,000
Total Shareholders' Equity 848,109 793,148
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $1,109,699 $1,090,430
Three Months Ended Twelve Months Ended
September 30 September 30
1999 1998 1999 1998
Consolidated Statements
of Income
REVENUES:
Sales and other operating
revenues $130,718 $153,201 $556,562 $592,037
Income from investments 2,564 12,091 7,757 44,603
133,282 165,292 564,319 636,640
COST AND EXPENSES:
Operating costs 75,537 96,218 332,330 346,066
Depreciation, depletion
and amortization 26,456 29,318 109,167 88,350
Dry holes and abandonments 4,771 2,299 11,727 11,572
Taxes, other than
income taxes 6,428 7,851 25,478 25,728
General and administrative 2,785 2,961 14,198 11,762
Interest 1,074 311 6,481 942
117,051 138,958 499,381 484,420
INCOME BEFORE INCOME
TAXES AND EQUITY
IN INCOME OF AFFILIATE 16,231 26,334 64,938 152,220
INCOME TAX EXPENSE 6,516 8,801 25,706 56,677
EQUITY IN INCOME OF
AFFILIATE, net of
income taxes 714 1,258 3,556 5,611
NET INCOME $ 10,429 $ 18,791 $ 42,788 $101,154
EARNINGS PER COMMON SHARE:
Basic $ 0.21 $ 0.38 $ 0.87 $ 2.03
Diluted $ 0.21 $ 0.38 $ 0.86 $ 2.00
Average common shares
outstanding:
Basic 49,339 49,658 49,243 49,948
Diluted 50,076 50,050 49,817 50,565
HELMERICH & PAYNE, INC.
Unaudited
(in thousands)
Three Months Ended Twelve Months Ended
September 30 September 30
1999 1998 1999 1998
Financial Results - Lines of Business
SALES AND OTHER REVENUES:
Contract Drilling -
Domestic $ 47,664 $ 45,938 $213,647 $177,059
Contract Drilling -
International 35,921 70,199 182,987 253,072
Total Contract
Drilling Division 83,585 116,137 396,634 430,131
Exploration and
Production 28,312 21,999 95,953 98,696
Natural Gas Marketing 16,610 12,454 55,259 53,499
Total Oil and
Gas Division 44,922 34,453 151,212 152,195
Real Estate Division 2,195 2,149 8,671 8,922
Investments and
Other Income 2,580 12,553 7,802 45,392
Total Revenues $133,282 $165,292 $564,319 $636,640
OPERATING PROFIT (LOSS):
Contract Drilling -
Domestic $ 4,454 $ 8,808 $ 30,154 $ 35,817
Contract Drilling -
International 3,515 8,562 29,845 50,834
Total Contract
Drilling Division 7,969 17,370 59,999 86,651
Exploration and Production 7,565 (706) 11,245 28,088
Natural Gas Marketing 1,415 732 4,418 2,418
Total Oil and Gas
Division 8,980 26 15,663 30,506
Real Estate Division 1,344 928 5,338 5,371
Total Operating Profit 18,293 18,324 81,000 122,528
OTHER (2,062) 8,010 (16,062) 29,692
INCOME BEFORE INCOME TAXES
AND EQUITY IN INCOME OF
AFFILIATE: $ 16,231 $ 26,334 $ 64,938 $152,220
Average Production and Prices
Production
Oil - Barrels Per Day 1,916 1,798 1,779 1,921
Natural Gas -
Mcf Per Day 118,362 124,339 121,206 117,431
Sales Prices
Oil - $ Per Barrel 19.67 12.20 14.60 14.74
Natural Gas - $ Per Mcf 2.26 1.73 1.83 2.04
CONTACT:
Doug Fears, 918/748-5208 |
