Helmerich & Payne Announces First Quarter Results
TULSA, Okla.--(BUSINESS WIRE)--Jan. 20, 2000--Helmerich & Payne,
Inc. (NYSE:HP) reported net income of $14,120,000 ($0.28 per share, on
a diluted basis) from revenues of $139,353,000 for the first quarter
of fiscal year 2000, compared with net income of $12,811,000 ($0.26
per share) from revenues of $143,864,000 during the first quarter of
1999.
This year's first quarter earnings include $1,754,000 ($0.04 per
share) from the sale of investment securities, versus $71,000 (less
than $0.01 per share) in the same period last year.
Although contract drilling operating profit was down from last
year's first quarter, the division recorded a slight improvement over
the previous quarter as domestic activity and dayrates improved. U.S.
land rig utilization for the Company rose from 53% and 65% during the
third and fourth quarters of last year, to 75% during the first
quarter of the Company's new fiscal year. Average domestic land rig
dayrates improved by approximately 4% over the previous quarter. The
Company's offshore platform rig business recorded 100% rig utilization
during the first quarter, compared with 97% utilization in the fourth
quarter of last year. Last year's first quarter rig utilizations were
85% for U.S. land and 100% for the Company's U.S. platform rigs.
The Company's international contract drilling operations continue
to suffer from low activity in South America, particularly Venezuela
where 19 of the Company's 40 international rigs are located. Total
Company international rig utilization averaged 47% during the first
quarter, compared with 44% during the previous quarter and 65% during
last year's first quarter. The Company's Venezuela rig utilization has
averaged 28% for the past three quarters.
The improvement in oil and natural gas prices drove first quarter
Exploration and Production operating profit to its highest level in
eight quarters. First quarter average natural gas prices rose to $2.28
per mcf, compared with $1.78 per mcf in last year's first quarter.
Average oil prices rose to $23.26 per barrel during the first quarter,
compared with $11.26 per barrel during last year's first quarter.
Natural gas production volume rose 4% over last year's first quarter
to 124.5 million cubic feet per day (mmcfd).
The Company's oil production fell slightly to an average of 1,793
barrels per day, from last year's first quarter average of 1,821
barrels per day. In addition to improved prices and production,
divisional income was helped by a reduction in the Company's
geophysical expense of $4,886,000, compared to last year's first
quarter.
As previously announced, the Company has completed, or was in the
process of completing during the first quarter, 28 out of 29 wells in
which the Company has participated. It is estimated that the aggregate
net initial production from those wells would total approximately 25
mmcfd and 500 barrels of oil per day. However, because of normal
production declines of both existing and new production, and the
timing of the new completions, the affect of the new production will
be spread over several months.
The Company's CEO and President, Hans Helmerich, commented,
"There is cautious optimism among the oil service industry due to
improved crude oil prices. At the same time, oil and gas companies
have been slow to increase the pace of investment in new drilling
projects. We are hopeful that a greater appetite for new projects from
our customers will result in greater demand for rigs during the second
half of the year. We are upbeat about the additional drilling
opportunities in the Company's Exploration and Production Division,
and building on the momentum generated by its drilling successes in
the first quarter.
Another important milestone for the Company was that our U.S.
land and offshore operations recently achieved distinctive Lost Time
Injury-free records. Our ten platform rigs have now worked without a
Lost Time Injury (LTI) for over two years, or 9,160 rig days and
3,300,000 rig man-hours. Our 38 U.S. land rigs just completed working
without an LTI for one year, or 8,900 rig days and 1,600,000 rig
man-hours. H&P's long record of progressive actions on safety has
enabled our personnel to achieve these distinctive, LTI-free
operations and to maintain a high level of customer loyalty and
recognition in our industry."
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 owns 39 land rigs and 10
offshore platform rigs in the U.S., and 40 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-K filed with the Securities and
Exchange Commission on December 31, 1999.
HELMERICH & PAYNE, INC.
Unaudited
(in thousands, except per share data)
12/31/99 09/30/99
Consolidated Condensed Balance Sheets
ASSETS:
Total current assets $ 178,667 $ 160,624
Investments 255,558 238,475
Net property, plant, and equipment 684,832 691,215
Other assets 19,051 19,385
TOTAL ASSETS $1,138,108 $1,109,699
LIABILITIES AND SHAREHOLDERS' EQUITY:
Total current liabilities $ 69,764 $ 71,904
Total noncurrent liabilities 148,720 139,686
Long-term debt 50,000 50,000
Total Shareholders' Equity 869,624 848,109
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $1,138,108 $1,109,699
Three Months Ended
December 31
1999 1998
Consolidated Statements of Income (unaudited)
REVENUES:
Sales and other operating revenues $ 135,194 $ 142,518
Income from investments 4,159 1,346
139,353 143,864
COST AND EXPENSES:
Operating costs 76,697 86,614
Depreciation, depletion and amortization 26,138 23,999
Dry holes and abandonments 2,382 1,759
Taxes, other than income taxes 6,512 6,421
General and administrative 2,821 3,590
Interest 821 1,602
115,371 123,985
INCOME BEFORE INCOME TAXES AND EQUITY
IN INCOME OF AFFILIATE 23,982 19,879
INCOME TAX EXPENSE 10,372 7,862
EQUITY IN INCOME OF AFFILIATE,
net of income taxes 510 794
NET INCOME $ 14,120 $ 12,811
EARNINGS PER COMMON SHARE:
Basic $ 0.29 $ .26
Diluted $ 0.28 $ .26
Average common shares outstanding:
Basic 49,427 49,182
Diluted 49,764 49,664
HELMERICH & PAYNE, INC.
Unaudited
(in thousands)
FY 2000 FY 1999
First Qtr. First Qtr.
Ended Ended
12-31-99 12-31-98
Financial Results - Lines of Business
SALES AND OTHER REVENUES:
Contract Drilling - Domestic $ 50,219 $ 45,985
Contract Drilling - International 34,201 54,685
Total Contract Drilling 84,420 100,670
Exploration and Production 30,118 26,428
Natural Gas Marketing 18,315 13,175
Total Oil and Gas Operations 48,433 39,603
Real Estate 2,242 2,193
Other 4,258 1,398
Total Revenues $139,353 $143,864
OPERATING PROFIT (LOSS):
Contract Drilling - Domestic $ 6,511 $ 7,664
Contract Drilling - International 2,510 9,941
Total Contract Drilling 9,021 17,605
Exploration and Production 12,694 4,505
Natural Gas Marketing 950 941
Total Oil and Gas Operations 13,644 5,446
Real Estate 1,385 1,391
Total Operating Profit 24,050 24,442
OTHER ( 68) (4,563)
INCOME BEFORE INCOME TAXES AND EQUITY
IN INCOME OF AFFILIATE: $ 23,982 $ 19,879
Average Production and Prices
Production
Oil - Barrels Per Day 1,793 1,821
Natural Gas - Mcf Per Day 124,469 119,954
Sales Prices
Oil - $ Per Barrel $ 23.26 $ 11.26
Natural Gas - $ Per Mcf $ 2.28 $ 1.78
CONTACT:
Doug Fears, 918/748-5208 |
