Helmerich & Payne Announces Second-Quarter Results
TULSA, Okla.--(BUSINESS WIRE)--April 20, 2000--Helmerich &
Payne, Inc. reported net income of $19,273,000 ($0.39 per share) from
revenues of $151,848,000 for the second quarter ended March 31, 2000,
compared with net income of $7,352,000 ($0.15 per share) from revenues
of $155,374,000 for the second quarter of the prior fiscal year. Net
income for the first six months of this fiscal year totaled
$33,393,000 ($0.67 per share) from revenues of $291,201,000, compared
with net income of $20,163,000 ($0.41 per share) from revenues of
$299,238,000 recorded for the same period last year. Second-quarter
and year-to-date earnings include gains from the sale of investment
securities of $5,996,000 ($0.12 per share), and $7,750,000 ($0.16 per
share), respectively. There were no gains from security sales during
the first six months of 1999.
Dramatic increases in crude oil and natural gas prices, coupled
with increases in production volumes, significantly improved earnings
from the Company's Exploration & Production Division, and helped
offset a decline in earnings in the Company's Contract Drilling
Division. Natural gas wellhead prices for the Company's production
averaged $2.25 per mcf during the second quarter, a 50% increase over
last year's second quarter average of $1.50 per mcf. Crude oil prices
averaged $27.33 per barrel during this year's second quarter, a 144%
increase over last year's second-quarter average of $11.21 per barrel.
Natural gas and crude oil production volumes were up over last year's
second quarter by 9% and 41%, respectively. Last year's second quarter
was also negatively impacted by an $8.9 million FAS 121 impairment
charge.
For the second quarter just ended, the Exploration & Production
Division participated in 12 wells, bringing the total wells drilled
during the fiscal year to 41. Of those 41 drilled, 37 have been
completed, or are in the process of being completed, as producers.
Four have been deemed dry holes. Current net producing rates from 29
of the 37 successful wells are 27 mmcf/d and 518 barrels of oil per
day. Eight additional wells are in the process of completing or are
waiting on pipeline connection.
The U.S. drilling business continues to show signs of positive
upward momentum compared with the latest market slump. The Company's
U.S. land rig utilization has improved sequentially over the past
three quarters, averaging 82% during the second quarter of this year,
compared with 74% utilization last year. U.S. offshore platform rig
utilization was down slightly to 92% for this year's second quarter,
compared with 98% during last year's second quarter. International
drilling activity has been considerably slower to rebound, with
earnings in that sector declining over the past year. Utilization for
this year's second quarter in the international sector averaged 45%,
versus 56% during last year's second quarter.
Company CEO and President, Hans Helmerich, commented: "We expect
the Company's international business to pick up in the second half of
the year. Venezuela will eventually require additional drilling
investment just to maintain their OPEC production quota. We are
well-positioned there to be one of the first contractors to benefit
from increased activity. Our recently announced plans to add four new
highly-mobile, medium depth drilling rigs to our U.S. fleet is a sign
of our confidence in an improving domestic land rig market.
The Company continues to move ahead with an increased exploration
and production budget based on improved results in that Division. We
plan to participate in the drilling of an additional 20 wells during
the third quarter, with a slightly greater percentage of wildcat
activity than in the first half of the year. We are experiencing
improvement in our production volumes and profitability as a result of
a greater focus on using 3D technology to lower the risk in our
drilling program."
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 37 land rigs and
10 platform rigs in the U.S., and 41 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 February 14, 2000.
HELMERICH & PAYNE, INC.
Unaudited
(in thousands, except per share data)
03/31/00 09/30/99
Consolidated Condensed Balance Sheets
ASSETS:
Total current assets $ 202,324 $ 160,624
Investments 291,610 238,475
Net property, plant, and equipment 677,247 691,215
Other assets 19,048 19,385
TOTAL ASSETS $1,190,229 $1,109,699
LIABILITIES AND SHAREHOLDERS' EQUITY:
Total current liabilities $ 66,231 71,904
Total noncurrent liabilities 166,271 139,686
Long-term debt 50,000 50,000
Total Shareholders' Equity 907,727 848,109
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $1,190,229 $1,109,699
Three Months Ended Six Months Ended
March 31 March 31
2000 1999 2000 1999
Consolidated Statements
of Income (unaudited)
REVENUES:
Sales and other operating
revenues $140,241 $154,042 $275,435 $296,560
Income from investments 11,607 1,332 15,766 2,678
151,848 155,374 291,201 299,238
COST AND EXPENSES:
Operating costs 75,715 96,291 152,412 182,905
Depreciation, depletion and
amortization 27,702 33,371 53,840 57,370
Dry holes and abandonments 4,445 2,134 6,827 3,893
Taxes, other than income taxes 7,730 6,654 14,242 13,075
General and administrative 3,334 4,527 6,155 8,117
Interest 801 1,877 1,622 3,479
119,727 144,854 235,098 268,839
INCOME BEFORE INCOME
TAXES AND EQUITY IN
INCOME OF AFFILIATE 32,121 10,520 56,103 30,399
INCOME TAX EXPENSE 13,883 4,035 24,255 11,897
EQUITY IN INCOME OF AFFILIATE,
net of income taxes 1,035 867 1,545 1,661
NET INCOME $ 19,273 $ 7,352 $ 33,393 $ 20,163
EARNINGS PER COMMON SHARE:
Basic $ 0.39 $ 0.15 $ 0.68 $ 0.41
Diluted $ 0.39 $ 0.15 $ 0.67 $ 0.41
Average common shares outstanding:
Basic 49,442 49,198 49,434 49,190
Diluted 49,828 49,594 49,796 49,629
HELMERICH & PAYNE, INC.
Unaudited
(in thousands)
Three Months Ended Six Months Ended
March 31 March 31
2000 1999 2000 1999
Financial Results - Lines of Business
SALES AND OTHER REVENUES:
Contract Drilling -
Domestic $ 53,417 $ 72,150 $103,636 $118,135
Contract Drilling -
International 32,167 49,853 66,368 104,538
Total Contract Drilling 85,584 122,003 170,004 222,673
Exploration and Production 34,140 18,849 64,258 45,277
Natural Gas Marketing 17,834 11,481 36,149 24,656
Total Oil and Gas 51,974 30,330 100,407 69,933
Real Estate 2,238 2,095 4,480 4,288
Other 12,052 946 16,310 2,344
Total Revenues $151,848 $155,374 $291,201 $299,238
OPERATING PROFIT (LOSS):
Contract Drilling -
Domestic $ 8,161 $ 11,704 $ 14,672 $ 19,368
Contract Drilling -
International 1,303 9,082 3,813 19,023
Total Contract Drilling 9,464 20,786 18,485 38,391
Exploration and Production 12,445 (6,270) 25,139 (1,765)
Natural Gas Marketing 1,834 1,039 2,784 1,980
Total Oil and Gas 14,279 (5,231) 27,923 215
Real Estate 1,343 1,270 2,728 2,661
Total Operating Profit 25,086 16,825 49,136 41,267
OTHER 7,035 (6,305) 6,967 (10,868)
INCOME BEFORE INCOME TAXES AND
EQUITY IN INCOME OF -------- -------- -------- --------
AFFILIATE: $ 32,121 $ 10,520 $ 56,103 $ 30,399
Average Production and Prices
Production
Oil - Barrels Per Day 2,383 1,687 2,134 1,755
Natural Gas - Mcf Per Day 136,565 125,174 130,108 122,535
Sales Prices
Oil - $ Per Barrel 27.33 11.21 25.64 11.23
Natural Gas - $ Per Mcf 2.25 1.50 2.27 1.64
--30--SH/dx* MG/dx
CONTACT:
Helmerich & Payne,
Doug Fears, 918/748-5208 |
