Helmerich & Payne, Inc. (NYSE: HP)

Helmerich & Payne, Inc. ("H&P") is a leading provider of performance-driven drilling solutions and technologies for the oil and gas industry. The company specializes in delivering safer, more efficient, and cost-effective hydrocarbon recovery services, primarily focusing on the drilling segment of the oil and gas production value chain. H&P combines advanced drilling rigs, proprietary technologies, and engineering expertise to enhance operational efficiency, wellbore quality, and placement accuracy for exploration and production companies worldwide. The company’s recent acquisition of KCA Deutag has expanded its global footprint, reinforcing its position as a key partner in both land and offshore drilling markets.

H&P generates revenue primarily through daywork and performance-based drilling contracts. Under daywork contracts, the company charges a daily rate based on rig specifications, well complexity, and market conditions. Performance-based contracts offer a lower base dayrate but include incentives for meeting or exceeding predefined operational targets, such as drilling speed or lateral feet per day. Additional revenue streams include mobilization and demobilization fees, as well as manufacturing and engineering services through its BENTEC™ business unit. The company also earns income from commercial real estate leasing and captive insurance operations.

The company operates through the following segments:

• North America Solutions: This segment represents H&P’s largest revenue contributor, operating the largest and most technologically advanced AC drive land rig fleet in North America. The segment focuses on shale and unconventional resource plays, with a strong presence in key basins such as the Permian Basin and Eagle Ford Shale. As of September 30, 2025, the segment accounted for 63.0% of consolidated operating revenues, deploying 223 marketed rigs, of which 144 were active under contract. The fleet includes 221 super-spec FlexRig® units, designed for high-performance drilling with features such as 1,500 horsepower drawworks, 750,000 lbs. hookload capacity, and multiple-well pad capabilities.

• International Solutions: This segment conducts land drilling operations across major international oil and gas markets, including Saudi Arabia, Argentina, Oman, Bahrain, Germany, Colombia, and Kuwait. The acquisition of KCA Deutag significantly expanded this segment’s footprint, contributing 21.4% of consolidated operating revenues in fiscal 2025. The segment operates 137 available rigs, with 88 contracted as of September 30, 2025. Revenue is generated through contracts with national oil companies, large international oil companies, and private independents, with Saudi Arabia alone contributing 6.9% of total consolidated revenues.

• Offshore Solutions: This segment provides asset-light offshore management contract services and operates platform rigs in U. S. federal waters, the North Sea, and other international regions. The segment contributed 13.9% of consolidated operating revenues in fiscal 2025, with three of seven available rigs under contract as of September 30, 2025. The acquisition of KCA Deutag enhanced this segment’s capabilities, particularly in the North Sea and Northern Africa, where it manages customer-owned drilling platforms.

• Other: This segment includes BENTEC™ manufacturing and engineering operations, commercial real estate investments, and captive insurance subsidiaries. BENTEC™ operates four facilities in Germany, Saudi Arabia, Oman, and Ukraine, providing rig upgrades, overhauls, and component manufacturing. The real estate portfolio consists of a 372,000 square-foot shopping center and 176 acres of undeveloped land in Tulsa, Oklahoma. Captive insurance subsidiaries fund self-insured retentions for workers’ compensation, general liability, and other risks.

H&P holds a dominant position in the North American land drilling market, operating the largest super-spec AC drive rig fleet in the Western Hemisphere. The company commands approximately 24.0% of the total U. S. land drilling market share and 33.7% of the super-spec rig market. Its competitive advantages include proprietary FlexRig® technology, automation solutions, and a vertically integrated manufacturing and engineering infrastructure. The acquisition of KCA Deutag further strengthened its global reach, particularly in the Middle East and offshore markets. Key competitors include Nabors Industries Ltd., Patterson-UTI Energy, Inc., and Precision Drilling Corporation in North America, while international competition varies by region and includes local and global drilling contractors.

H&P serves a diverse customer base, including major integrated oil companies, large independents, mid-sized and small-cap oil companies, and private equity-backed independents. In North America, its largest customer accounted for 18.2% of the North America Solutions segment’s revenues in fiscal 2025. Internationally, the company works with national oil companies, such as Saudi Aramco, and large international oil companies in regions like the Middle East, Latin America, and Europe. The largest international customer contributed 32.3% of the International Solutions segment’s revenues, while the largest offshore customer accounted for 45.2% of Offshore Solutions revenues.