UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): July 22, 2004
HELMERICH & PAYNE, INC.
Delaware
1-4221
73-0679879
(State or Other
Jurisdiction of
Incorporation)
(Commission File
Number)
(I.R.S. Employer
Identification
Number)
1437 South Boulder Avenue, Tulsa, Oklahoma
74119
(Address of Principal Executive Offices)
(Zip Code)
(918) 742-5531
N/A
| ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION | ||||||||
| SIGNATURES | ||||||||
| EXHIBIT INDEX | ||||||||
| Earnings Press Release | ||||||||
ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On July 22, 2004, Helmerich & Payne, Inc. (“Registrant”) issued a press release announcing its financial results for its third quarter ended June 30, 2004. A copy of the press release is attached as Exhibit 99 to this Report on Form 8-K. This information is being furnished pursuant to Item 12 of Form 8-K and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly authorized the undersigned to sign this report on its behalf.
|
HELMERICH & PAYNE, INC.
|
||||
| By: | /s/ Steven R. Mackey | |||
| Name: | Steven R. Mackey | |||
| Title: | Vice President | |||
Dated: July 22, 2004
EXHIBIT INDEX
Exhibit No.
Description
Helmerich & Payne, Inc. earnings press release dated July 22, 2004
EXHIBIT 99
July 22, 2004
HELMERICH & PAYNE, INC. ANNOUNCES THIRD QUARTER RESULTS
Helmerich & Payne, Inc. reported net income of $4,347,000 ($0.09 per diluted share) from revenues of $147,874,000 for its third fiscal quarter ended June 30, 2004, compared with net income of $8,162,000 ($0.16 per diluted share) from revenues of $137,025,000 during last year’s third fiscal quarter. Net income for the nine month period ending June 30, 2004 totaled $16,024,000 ($0.32 per diluted share) from revenues of $437,954,000, compared with net income of $11,343,000 ($0.22 per diluted share) from revenues of $376,658,000 for the same period last year.
The Company did not sell any portfolio securities during the third quarter 2004, but $0.13 per share of gains from securities sales were included in net income for the first nine months of 2004. Net income for the three and nine months ended June 30, 2003 includes no material gain or loss from the sale of portfolio securities.
During this year’s third quarter and nine month period ending June 30, 2004, increases in U.S. land rig operating profits were more than offset by reductions in the Company’s offshore platform rig operating profits, resulting in lower total net income (excluding portfolio sales) compared with those same periods last year.
U.S. Land
U.S. land rig utilization for this year’s third quarter increased to 89%, from 86% the previous quarter and 82% for last year’s third quarter. Revenue days for the current third quarter increased to 7,071 days, compared with 6,758 days the previous quarter and 5,912 days during last year’s third quarter. The substantial increase in revenue days reflects not only improved rig utilization, but also the addition and full utilization of the Company’s fleet of newly constructed FlexRigs®. Average cash margins per rig day for the third quarter ($3,657 per day) were up from the previous quarter ($3,270 per day), and were virtually flat compared with last year’s third quarter ($3,672 per day). (See accompanying segment data for complete statistics for all business segments.) Even with the increased depreciation as a result of the FlexRig3 construction, U.S. land rig operating profit for this year’s third quarter of $9,579,000 was up 52% over the previous quarter and 25% over last year’s third quarter.
U. S. Offshore Platform
Third quarter operating profit for the U.S. offshore platform rig segment fell slightly from the second quarter 2004, but was down substantially from last year’s third quarter. Near the end of last year’s third quarter, one rig was stacked after generating almost a full quarter of high margin dayrate. Additionally, $1.5 million of early termination income was recorded for that same rig during last year’s third quarter. The Company also had two rigs that were on full dayrate during last year’s third quarter that were on reduced standby rates during this year’s
(over)
Page 2
July 22, 2004
News Release
third quarter. Utilization for the third quarter 2004 was 52%, compared with 42% during the previous quarter and 54% for last year’s third quarter. At the present time, the Company has seven of its twelve available rigs working or receiving standby income.
International
International rig utilization for the third quarter (53%) was up compared to the previous quarter (51%), and compared to last year’s third quarter (43%). Third quarter 2004 international operating profit improved from the previous quarter, but results were hampered by lower rig activity and cash margins in Ecuador, lower income associated with changing out a rig in Argentina and reduced income associated with the winding down of operations in Chad. Venezuela operating profit for this year’s third quarter improved by approximately $1.5 million from the previous quarter, but results did not meet expectations due to increased operating costs and reduced income resulting from more days used for moving rigs than normally experienced during a quarter.
Company President and C.E.O., Hans Helmerich commented: “We are encouraged by the steady strengthening of U.S. land rig demand and the long anticipated up-tick in dayrates we saw towards the end of the reporting period. We are also seeing positive movement in our international markets as well. We would expect these positive trends to continue as customers respond to strong commodity pricing fundamentals.”
Helmerich & Payne, Inc. (HP/NYSE) is a contract drilling company that owns 87 U.S. land rigs, 12 U.S. platform rigs located in the Gulf of Mexico, 30 rigs located in South America, one rig in Hungary and one rig in West Africa, for a total of 131 rigs. The Company currently operates 50 H&P-designed FlexRigs.
Helmerich & Payne, Inc.’s conference call/webcast, scheduled for this afternoon, is at www.corporate-ir.net/ireye/ir_site.zhtml?ticker=HP&script=1010&item_id=91 5744 and will begin at 3:30 p.m. ET (2:30 p.m. CT). If you are unable to participate during the live webcast, the call will be archived for 60 days on the website listed above as well as on H&P’s website at www.hpinc.com.
The information to be disclosed in the conference call and webcast shall include forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. Such forward-looking statements are subject to certain risks and uncertainties, as disclosed by H&P from time to time in its filings with the Securities and Exchange Commission. As a result of these factors, H&P’s actual results may differ materially from those indicated or implied by such forward-looking statements.
Contact: Doug Fears
(918) 588-5208
(more)
Page 3
July 22, 2004
HELMERICH & PAYNE, INC.
Unaudited
(in thousands, except per share data)
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||||||
|
March 31
|
June 30
|
June 30
|
||||||||||||||||||
|
CONSOLIDATED STATEMENTS of INCOME
|
2004
|
2004
|
2003
|
2004
|
2003
|
|||||||||||||||
|
REVENUES
|
||||||||||||||||||||
|
Operating revenues
|
$ | 143,463 | $ | 147,498 | $ | 136,553 | $ | 425,831 | $ | 374,516 | ||||||||||
|
Income from investments
|
7,723 | 376 | 472 | 12,123 | 2,142 | |||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
|
|
151,186 | 147,874 | 137,025 | 437,954 | 376,658 | |||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
|
COSTS AND EXPENSES
|
||||||||||||||||||||
|
Direct operating costs
|
104,660 | 105,302 | 88,720 | 303,489 | 257,129 | |||||||||||||||
|
Depreciation
|
23,402 | 23,934 | 21,517 | 69,604 | 59,696 | |||||||||||||||
|
General and administrative
|
9,789 | 9,516 | 9,368 | 28,407 | 31,884 | |||||||||||||||
|
Interest
|
3,112 | 3,114 | 3,247 | 9,448 | 9,049 | |||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
|
|
140,963 | 141,866 | 122,852 | 410,948 | 357,758 | |||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
|
Income before income taxes and equity
in income of affiliates
|
10,223 | 6,008 | 14,173 | 27,006 | 18,900 | |||||||||||||||
|
Provision for income taxes
|
4,484 | 2,522 | 6,144 | 11,532 | 8,176 | |||||||||||||||
|
Equity in income of affiliates
net of income taxes
|
309 | 861 | 133 | 550 | 619 | |||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
|
NET INCOME
|
$ | 6,048 | $ | 4,347 | $ | 8,162 | $ | 16,024 | $ | 11,343 | ||||||||||
|
|
|
|
|
|
|
|||||||||||||||
|
Earnings per common share:
|
||||||||||||||||||||
|
Basic
|
$ | 0.12 | $ | 0.09 | $ | 0.16 | $ | 0.32 | $ | 0.23 | ||||||||||
|
Diluted
|
$ | 0.12 | $ | 0.09 | $ | 0.16 | $ | 0.32 | $ | 0.22 | ||||||||||
|
Average common shares outstanding:
|
||||||||||||||||||||
|
Basic
|
50,263 | 50,404 | 50,045 | 50,273 | 50,016 | |||||||||||||||
|
Diluted
|
50,903 | 50,880 | 50,681 | 50,816 | 50,563 | |||||||||||||||
(more)
Page 4
July 22, 2004
HELMERICH & PAYNE, INC.
Unaudited
(in thousands)
|
CONSOLIDATED CONDENSED BALANCE SHEETS
|
6/30/04
|
9/30/03
|
||||||
|
ASSETS
|
||||||||
|
Cash and cash equivalents
|
$ | 24,447 | $ | 38,189 | ||||
|
Other current assets
|
172,878 | 159,342 | ||||||
|
|
|
|
||||||
|
Total current assets
|
197,325 | 197,531 | ||||||
|
|
|
|
||||||
|
Investments
|
172,785 | 158,770 | ||||||
|
Net property, plant, and equipment
|
1,057,597 | 1,058,205 | ||||||
|
Other assets
|
21,177 | 1,329 | ||||||
|
|
|
|
||||||
|
TOTAL ASSETS
|
$ | 1,448,884 | $ | 1,415,835 | ||||
|
|
|
|
||||||
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||
|
Total current liabilities
|
$ | 54,784 | $ | 88,618 | ||||
|
Total noncurrent liabilities
|
257,391 | 209,966 | ||||||
|
Long-term notes payable
|
200,000 | 200,000 | ||||||
|
Total shareholders’ equity
|
936,709 | 917,251 | ||||||
|
|
|
|
||||||
|
TOTAL LIABILITIES AND SHAREHOLDERS’EQUITY
|
$ | 1,448,884 | $ | 1,415,835 | ||||
|
|
|
|
||||||
(more)
Page 5
July 22, 2004
| Nine Months Ended | ||||||||
|
June 30
|
||||||||
|
CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS
|
2004
|
2003
|
||||||
| (Amounts in thousands) | ||||||||
|
OPERATING ACTIVITIES:
|
||||||||
|
Net Income
|
$ | 16,024 | $ | 11,343 | ||||
|
Depreciation
|
69,604 | 59,696 | ||||||
|
Changes in assets and liabilities
|
1,561 | (3,544 | ) | |||||
|
Gain on sale of assets
|
(12,148 | ) | (1,387 | ) | ||||
|
Other
|
(801 | ) | (303 | ) | ||||
|
|
|
|
||||||
|
Net cash provided by operating activities
|
74,240 | 65,805 | ||||||
|
|
|
|
||||||
|
INVESTING ACTIVITIES:
|
||||||||
|
Capital expenditures
|
(70,536 | ) | (201,381 | ) | ||||
|
Proceeds from sale of assets
|
17,313 | 16,321 | ||||||
|
|
|
|
||||||
|
Net cash used in investing activities
|
(53,223 | ) | (185,060 | ) | ||||
|
|
|
|
||||||
|
FINANCING ACTIVITIES:
|
||||||||
|
Net proceeds (payments) from notes payable
|
(27,000 | ) | 110,000 | |||||
|
Dividends paid
|
(12,083 | ) | (12,012 | ) | ||||
|
Proceeds from exercise of stock options
|
4,324 | 1,357 | ||||||
|
|
|
|
||||||
|
Net cash (used in) provided by financing activities
|
(34,759 | ) | 99,345 | |||||
|
|
|
|
||||||
|
Net decrease in cash and cash equivalents
|
(13,742 | ) | (19,910 | ) | ||||
|
Cash and cash equivalents, beginning of period
|
38,189 | 46,883 | ||||||
|
|
|
|
||||||
|
Cash and cash equivalents, end of period
|
$ | 24,447 | $ | 26,973 | ||||
|
|
|
|
||||||
(more)
Page 6
July 22, 2004
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||||||
|
March 31
|
June 30
|
June 30
|
||||||||||||||||||
|
SEGMENT REPORTING
|
2004
|
2004
|
2003
|
2004
|
2003
|
|||||||||||||||
| (Amounts in thousands, except operating statistics) | ||||||||||||||||||||
|
US LAND OPERATIONS
|
||||||||||||||||||||
|
Revenues
|
$ | 83,045 | $ | 88,642 | $ | 74,036 | $ | 247,155 | $ | 198,486 | ||||||||||
|
Direct operating expenses
|
60,943 | 62,784 | 52,327 | 177,217 | 147,319 | |||||||||||||||
|
General and administrative expense
|
1,867 | 1,831 | 2,108 | 5,623 | 7,593 | |||||||||||||||
|
Depreciation
|
13,920 | 14,448 | 11,936 | 41,431 | 31,370 | |||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
|
Operating profit
|
$ | 6,315 | $ | 9,579 | $ | 7,665 | $ | 22,884 | $ | 12,204 | ||||||||||
|
Activity days
|
6,758 | 7,071 | 5,912 | 20,109 | 16,284 | |||||||||||||||
|
Average rig revenue per day
|
$ | 11,302 | $ | 11,550 | $ | 11,752 | $ | 11,401 | $ | 11,513 | ||||||||||
|
Average rig expense per day
|
$ | 8,032 | $ | 7,893 | $ | 8,080 | $ | 7,923 | $ | 8,371 | ||||||||||
|
Average rig margin per day
|
$ | 3,270 | $ | 3,657 | $ | 3,672 | $ | 3,478 | $ | 3,142 | ||||||||||
|
Rig utilization
|
86 | % | 89 | % | 82 | % | 85 | % | 80 | % | ||||||||||
|
US OFFSHORE OPERATIONS
|
||||||||||||||||||||
|
Revenues
|
$ | 18,901 | $ | 21,266 | $ | 30,596 | $ | 61,032 | $ | 86,386 | ||||||||||
|
Direct operating expenses
|
10,997 | 13,615 | 15,621 | 37,334 | 47,140 | |||||||||||||||
|
General and administrative expense
|
767 | 792 | 725 | 2,288 | 2,313 | |||||||||||||||
|
Depreciation
|
3,031 | 3,033 | 3,158 | 9,103 | 9,487 | |||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
|
Operating profit
|
$ | 4,106 | $ | 3,826 | $ | 11,092 | $ | 12,307 | $ | 27,446 | ||||||||||
|
Activity days
|
455 | 572 | 592 | 1,487 | 1,704 | |||||||||||||||
|
Average rig revenue per day
|
$ | 29,276 | $ | 27,963 | $ | 41,058 | $ | 29,858 | $ | 38,464 | ||||||||||
|
Average rig expense per day
|
$ | 14,481 | $ | 16,347 | $ | 18,496 | $ | 16,159 | $ | 18,057 | ||||||||||
|
Average rig margin per day
|
$ | 14,795 | $ | 11,616 | $ | 22,562 | $ | 13,699 | $ | 20,407 | ||||||||||
|
Rig utilization
|
42 | % | 52 | % | 54 | % | 45 | % | 52 | % | ||||||||||
(more)
Page 7
July 22, 2004
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||||||
|
March 31
|
June 30
|
June 30
|
||||||||||||||||||
|
SEGMENT REPORTING
|
2004
|
2004
|
2003
|
2004
|
2003
|
|||||||||||||||
| (Amounts in thousands) | ||||||||||||||||||||
|
INTERNATIONAL OPERATIONS
|
||||||||||||||||||||
|
Revenues
|
$ | 39,277 | $ | 35,497 | $ | 29,981 | $ | 110,918 | $ | 82,956 | ||||||||||
|
Direct operating expenses
|
32,056 | 28,210 | 20,280 | 86,938 | 61,032 | |||||||||||||||
|
General and administrative expense
|
561 | 428 | 705 | 1,617 | 2,387 | |||||||||||||||
|
Depreciation
|
5,139 | 5,103 | 5,112 | 15,263 | 14,997 | |||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
|
Operating profit
|
$ | 1,521 | $ | 1,756 | $ | 3,884 | $ | 7,100 | $ | 4,540 | ||||||||||
|
Activity days
|
1,473 | 1,567 | 1,211 | 4,574 | 3,407 | |||||||||||||||
|
Average rig revenue per day
|
$ | 21,826 | $ | 18,833 | $ | 20,332 | $ | 19,923 | $ | 19,533 | ||||||||||
|
Average rig expense per day
|
$ | 16,645 | $ | 14,576 | $ | 13,970 | $ | 14,848 | $ | 14,278 | ||||||||||
|
Average rig margin per day
|
$ | 5,181 | $ | 4,257 | $ | 6,362 | $ | 5,075 | $ | 5,255 | ||||||||||
|
Rig utilization
|
51 | % | 53 | % | 43 | % | 52 | % | 39 | % | ||||||||||
Per day calculations for international operations exclude gains and losses from translation of foreign currency transactions.
Operating statistics exclude the effects of offshore platform management contracts, and do not include reimbursements of “out-of-pocket” expenses in revenue per day, expense per day and margin calculations.
Reimbursed amounts were as follows:
(more)
$
6,666
$
6,971
$
4,557
$
17,889
$
11,010
$
1,551
$
1,180
$
1,177
$
4,332
$
5,767
$
3,510
$
2,479
$
1,991
$
9,250
$
6,459
$
2,240
$
2,093
$
1,940
$
6,726
$
6,688
632
652
436
1,897
1,360
561
579
693
1,664
1,991
$
1,047
$
862
$
811
$
3,165
$
3,337
Page 8
July 22, 2004
###