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Helmerich & Payne
(NYSE:HP)
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Rating:64Neutral
Price Target:
$43.00
▲(2.19% Upside)
Action:Downgraded
Date:09/23/26
HP scores in the mid-range primarily due to solid cash flow and a conservative balance sheet that offset weakened TTM profitability and declining revenue. The earnings call adds support with improved guidance, strong adjusted EBITDA/free cash flow, and clear cost/deleveraging plans, while technicals remain cautious and valuation signals are constrained by negative earnings.
Positive Factors
Strong cash generation
Strong operating and free cash flow gives HP internal funding capacity for maintenance investment, debt reduction, dividends, and selective growth. The recent improvement supports resilience through the cycle, although management still links cash performance to industry conditions.
Negative Factors
Revenue and profitability deterioration
The decline in revenue and return to negative net margin show that HP’s earnings stability has weakened after the prior upcycle. Although EBITDA remains meaningful, lower operating profitability can restrict reinvestment capacity and make results more sensitive to drilling activity.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Strong operating and free cash flow gives HP internal funding capacity for maintenance investment, debt reduction, dividends, and selective growth. The recent improvement supports resilience through the cycle, although management still links cash performance to industry conditions.
Read all positive factors
Helmerich & Payne Key Performance Indicators (KPIs)
Helmerich & Payne (HP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.99B
Dividend Yield2.51%
Average Volume (3M)1.15M
Price to Earnings (P/E)―
Beta (1Y)0.86
Revenue Growth16.57%
EPS Growth-328.07%
CountryUS
Employees15,700
SectorEnergy
Sector Strength52
IndustryOil & Gas Drilling
Share Statistics
EPS (TTM)-1.40
Shares Outstanding99,938,940
10 Day Avg. Volume1,055,275
30 Day Avg. Volume1,149,577
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)0.80
Price to Sales (P/S)0.59
P/FCF Ratio18.81
Enterprise Value/Market Cap1.25
Enterprise Value/Revenue1.24
Enterprise Value/Gross Profit11.85
Enterprise Value/Ebitda6.25
Forecast
1Y Price Target
$46.55Price Target Upside10.61% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)1.52
Revenue Forecast (FY)$4.29B
Helmerich & Payne Business Overview & Revenue Model
Company Description
Helmerich & Payne, Inc., along with its affiliated companies, provides specialized drilling services and innovative solutions to businesses involved in the exploration and production of oil and gas. The company's operations are strategically organ...
How the Company Makes Money
HP primarily makes money by contracting its drilling rigs and crews to customers (typically oil and gas exploration and production companies) under drilling agreements where the customer pays for access to the rig and the performance of drilling s...
Helmerich & Payne Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Nov 18, 2026
Earnings Call Sentiment Positive
The call presented multiple strong operational and financial wins — higher revenue (+11% sequential), beat on adjusted EBITDA ($236M), robust free cash flow ($98M), notable NAS margin expansion and rig reactivations, offshore outperformance, and accelerating momentum in Argentina and geothermal. Management also laid out a concrete deleveraging and cost-reduction plan (targeting 1.0x net debt/EBITDA, $40M annual corporate cost savings, and $160M+ asset-sale proceeds). Offsetting these positives are continuing geopolitical disruptions in the Middle East that have delayed some reactivations, lumpy performance bonus timing, and the fact that reported EPS included a material one-time gain (adjusted EPS would be a loss). On balance, the highlights and forward-looking initiatives outweigh the lowlights, though some execution and geopolitical risks remain.Positive Updates
Revenue Growth
Company generated revenues of over $1.0 billion, up 11% sequentially in the fiscal third quarter.
Negative Updates
Middle East Conflict Disruption
Ongoing Middle East conflict caused operational disruption and uncertainty: rigs in Iraq and some in Bahrain were suspended earlier; reactivation timeline in Saudi slower than planned (5–7 rigs reactivated at differing points), creating variability in international outcomes and wider guidance ranges.
Read all updates
Q3-2026 Updates
Positive
Negative
Revenue Growth
Company generated revenues of over $1.0 billion, up 11% sequentially in the fiscal third quarter.
Read all positive updates
Company Guidance
Management guided fiscal fourth-quarter North America Solutions direct margins of $245–$255 million on an expected 145–151 rigs (upgrading full‑year average rig count to 140–144), International Solutions to average 60–70 rigs with direct margins of $25–$45 million (targeting at least a $45 million quarterly run rate), and Offshore to average 30–35 management contracts/operating rigs with Q4 direct margins of $26–$30 million (offshore full‑year margin guidance upgraded to $113–$117 million); they kept full‑year CapEx guidance at $270–$310 million (anchored by ~ $250 million maintenance CapEx and $50 million sustaining CapEx annually), raised cash tax expectations to $150–$180 million, affirmed a ~ $100 million/year base dividend, and reiterated targets to cut corporate costs by $40 million/year by end of 2027, monetize >$160 million of assets by fiscal 2027, and drive net debt/EBITDA toward ~1.0x (after repaying a $400 million term loan and targeting retirement of a $350 million bond), while noting Q3 adjusted EBITDA of $236 million, Q3 free cash flow of $98 million and an implied ~5% sequential EBITDA improvement into Q4.Helmerich & Payne Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
72
Positive
Cash Flow
77
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.00B | 3.75B | 2.76B | 2.87B | 2.06B | 1.22B |
| Gross Profit | 419.17M | 553.50M | 729.04M | 775.01M | 229.19M | -153.76M |
| EBITDA | 794.46M | 658.78M | 907.46M | 992.98M | 453.69M | 13.81M |
| Net Income | -137.45M | -165.09M | 344.17M | 434.10M | 6.95M | -326.15M |
Balance Sheet | ||||||
| Total Assets | 6.29B | 6.71B | 5.78B | 4.44B | 4.41B | 5.03B |
| Cash, Cash Equivalents and Short-Term Investments | 231.39M | 245.76M | 510.26M | 409.84M | 385.48M | 1.12B |
| Total Debt | 1.86B | 2.32B | 1.86B | 599.95M | 582.34M | 1.08B |
| Total Liabilities | 3.62B | 3.88B | 2.86B | 1.67B | 1.64B | 2.12B |
| Stockholders Equity | 2.57B | 2.72B | 2.92B | 2.77B | 2.77B | 2.91B |
Cash Flow | ||||||
| Free Cash Flow | 315.29M | 116.58M | 189.59M | 438.22M | -38.63M | 54.29M |
| Operating Cash Flow | 579.63M | 542.95M | 684.66M | 833.68M | 233.91M | 136.44M |
| Investing Cash Flow | -81.71M | -1.93B | -458.75M | -322.58M | -167.31M | -161.99M |
| Financing Cash Flow | -471.99M | 66.66M | 986.51M | -463.87M | -734.30M | 425.52M |
Helmerich & Payne Technical Analysis
Negative
42.08
Price Trends
41.14
Negative
38.28
Positive
36.38
Positive
Market Momentum
-0.58
Negative
43.30
Neutral
72.81
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HP, the sentiment is Negative. The current price of 42.08 is above the 20-day moving average (MA) of 39.58, above the 50-day MA of 41.14, and above the 200-day MA of 36.38, indicating a neutral trend. The MACD of -0.58 indicates Negative momentum. The RSI at 43.30 is Neutral, neither overbought nor oversold. The STOCH value of 72.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HP.
Helmerich & Payne Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
65 Neutral | $4.31B | -49.02 | -2.82% | 3.36% | -6.92% | 91.45% | |
65 Neutral | $5.81B | 6.21 | 31.33% | 0.68% | -13.22% | 249.28% | |
64 Neutral | $3.99B | -28.49 | -5.27% | 2.51% | 16.57% | -328.07% | |
64 Neutral | $6.76B | 44.59 | 3.30% | 4.72% | -11.10% | -52.07% | |
60 Neutral | $1.23B | 5.44 | 36.75% | 10.09% | 6.05% | ― | |
50 Neutral | $1.47B | -6.15 | -21.28% | 5.63% | 2.71% | -447.50% |
* Energy Sector Average
HP
Helmerich & Payne
38.72
16.54
74.54%
NBR
Nabors Industries
79.20
38.69
95.51%
PTEN
Patterson-UTI
11.33
5.90
108.54%
BORR
Borr Drilling
4.93
2.27
85.34%
VAL
Valaris
84.94
35.50
71.80%
NE
Noble Corporation
42.94
16.63
63.23%
Helmerich & Payne Corporate Events
Business Operations and StrategyExecutive/Board Changes
Helmerich & Payne Boosts CEO and CFO Compensation Packages
Positive
Sep 22, 2026
On September 16, 2026, Helmerich Payne’s board approved significant increases to President and CEO Raymond John “Trey” Adams III’s compensation, lifting his annual base salary to $1,000,000 effective October 1, 2026 and ra...
Dividends
Helmerich & Payne Declares Quarterly Cash Dividend
Positive
Sep 16, 2026
At a Board of Directors meeting held on September 16, 2026, Helmerich Payne, Inc. declared a quarterly cash dividend of $0.25 per share on its common stock. The dividend will be paid on December 2, 2026, to shareholders of record as of the close ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.