ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION | ||||||||
SIGNATURES | ||||||||
EXHIBIT INDEX | ||||||||
Earnings Press Release |
HELMERICH & PAYNE, INC.
(Registrant) |
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/s/ Steven R. Mackey | ||||
Steven R. Mackey | ||||
Vice President | ||||
Exhibit No.
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Description | |
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99
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Helmerich & Payne, Inc. earnings press release dated November 16, 2005 |
-2-
Three Months Ended | Fiscal Year Ended | |||||||||||||||||||
June 30 | September 30 | September 30 | ||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | 2005 | 2005 | 2004 | 2005 | 2004 | |||||||||||||||
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Operating Revenues:
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Drilling U.S. Land
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$ | 138,720 | $ | 157,335 | $ | 100,055 | $ | 527,637 | $ | 346,015 | ||||||||||
Drilling U.S. Offshore
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19,905 | 26,011 | 23,601 | 84,921 | 84,238 | |||||||||||||||
Drilling International
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46,030 | 47,180 | 38,029 | 177,480 | 148,788 | |||||||||||||||
Real Estate
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2,732 | 2,684 | 2,383 | 10,688 | 10,015 | |||||||||||||||
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207,387 | 233,210 | 164,068 | 800,726 | 589,056 | |||||||||||||||
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Operating costs and expenses:
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Operating costs
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121,470 | 137,188 | 113,423 | 484,231 | 417,716 | |||||||||||||||
Depreciation
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23,419 | 25,643 | 24,821 | 96,274 | 94,425 | |||||||||||||||
Asset impairment
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| | 51,516 | | 51,516 | |||||||||||||||
General and administrative
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11,680 | 10,496 | 9,254 | 41,015 | 37,661 | |||||||||||||||
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156,569 | 173,327 | 199,014 | 621,520 | 601,318 | |||||||||||||||
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Operating
income (loss)
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50,818 | 59,883 | (34,946 | ) | 179,206 | (12,262 | ) | |||||||||||||
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Other income (expense):
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Interest and dividend income
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1,671 | 1,984 | 476 | 5,809 | 1,965 | |||||||||||||||
Interest expense
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(3,127 | ) | (2,960 | ) | (3,247 | ) | (12,642 | ) | (12,695 | ) | ||||||||||
Gain on sale of investment securities
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| 656 | 13,442 | 26,969 | 25,418 | |||||||||||||||
Income from asset sales
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603 | 1,160 | 3,639 | 13,550 | 5,377 | |||||||||||||||
Other
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29 | (610 | ) | 66 | (235 | ) | 197 | |||||||||||||
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(824 | ) | 230 | 14,376 | 33,451 | 20,262 | ||||||||||||||
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Income
(loss) before income taxes and equity
in income of affiliates
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49,994 | 60,113 | (20,570 | ) | 212,657 | 8,000 | ||||||||||||||
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Income tax
provision (benefit)
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20,627 | 24,553 | (7,772 | ) | 87,463 | 4,365 | ||||||||||||||
Equity in income of affiliates
net of income taxes
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458 | 561 | 174 | 2,412 | 724 | |||||||||||||||
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NET
INCOME (LOSS)
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$ | 29,825 | $ | 36,121 | $ | (12,624 | ) | $ | 127,606 | $ | 4,359 | |||||||||
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Earnings
(loss) per common share:
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Basic
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$ | 0.58 | $ | 0.70 | $ | (0.25 | ) | $ | 2.50 | $ | 0.09 | |||||||||
Diluted
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$ | 0.57 | $ | 0.68 | $ | (0.25 | ) | $ | 2.45 | $ | 0.09 | |||||||||
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Average common shares outstanding:
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Basic
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51,233 | 51,616 | 50,426 | 51,087 | 50,312 | |||||||||||||||
Diluted
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52,236 | 52,748 | 50,883 | 52,033 | 50,833 |
CONSOLIDATED CONDENSED BALANCE SHEETS | 9/30/05 | 9/30/04 | ||||||
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ASSETS
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Cash and cash equivalents
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$ | 288,752 | $ | 65,296 | ||||
Other current assets
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212,294 | 180,034 | ||||||
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Total current assets
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501,046 | 245,330 | ||||||
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Investments
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178,452 | 161,532 | ||||||
Net property, plant, and equipment
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981,965 | 998,674 | ||||||
Other assets
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3,136 | 1,308 | ||||||
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TOTAL ASSETS
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$ | 1,664,599 | $ | 1,406,844 | ||||
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LIABILITIES AND SHAREHOLDERS EQUITY
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Total current liabilities
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$ | 90,730 | $ | 59,903 | ||||
Total noncurrent liabilities
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294,631 | 232,831 | ||||||
Long-term notes payable
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200,000 | 200,000 | ||||||
Total shareholders equity
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1,079,238 | 914,110 | ||||||
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TOTAL LIABILITIES AND SHAREHOLDERS EQUITY
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$ | 1,664,599 | $ | 1,406,844 | ||||
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Years Ended | ||||||||
September 30 | ||||||||
CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS | 2005 | 2004 | ||||||
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OPERATING ACTIVITIES:
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Net Income
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$ | 127,606 | $ | 4,359 | ||||
Depreciation
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96,274 | 94,425 | ||||||
Asset impairment charge
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| 51,516 | ||||||
Changes in assets and liabilities
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33,091 | 18,260 | ||||||
Gain on sale of assets and investment securities
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(40,519 | ) | (28,143 | ) | ||||
Non-monetary investment gain
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| (2,521 | ) | |||||
Other
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(4,214 | ) | (1,256 | ) | ||||
Net cash provided by operating activities
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212,238 | 136,640 | ||||||
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INVESTING ACTIVITIES:
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Capital expenditures
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(86,805 | ) | (90,212 | ) | ||||
Purchase of investments
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(5,000 | ) | | |||||
Proceeds from sale of assets and investment securities
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94,531 | 21,974 | ||||||
Net cash provided by (used in) investing activities
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2,726 | (68,238 | ) | |||||
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FINANCING ACTIVITIES:
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Net payments on short-term notes
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| (30,000 | ) | |||||
Dividends paid
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(16,866 | ) | (16,222 | ) | ||||
Proceeds from exercise of stock options
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25,358 | 4,927 | ||||||
Net cash provided by (used in) financing activities
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8,492 | (41,295 | ) | |||||
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Net increase in cash and cash equivalents
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223,456 | 27,107 | ||||||
Cash and cash equivalents, beginning of period
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65,296 | 38,189 | ||||||
Cash and cash equivalents, end of period
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$ | 288,752 | $ | 65,296 | ||||
SEGMENT REPORTING | Three Months Ended | Fiscal Year Ended | ||||||||||||||||||
June 30 | September 30 | September 30 | ||||||||||||||||||
2005 | 2005 | 2004 | 2005 | 2004 | ||||||||||||||||
(in thousands, except days and per day amounts) | ||||||||||||||||||||
U.S. LAND OPERATIONS
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Revenues
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$ | 138,720 | $ | 157,335 | $ | 100,055 | $ | 527,637 | $ | 346,015 | ||||||||||
Direct operating expenses
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74,639 | 82,852 | 68,960 | 294,164 | 246,177 | |||||||||||||||
General and administrative expense
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2,346 | 2,543 | 2,142 | 8,594 | 7,765 | |||||||||||||||
Depreciation
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14,491 | 15,912 | 15,097 | 60,222 | 56,528 | |||||||||||||||
Operating income
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$ | 47,244 | $ | 56,028 | $ | 13,856 | $ | 164,657 | $ | 35,545 | ||||||||||
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Activity days
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7,797 | 7,994 | 7,363 | 30,968 | 27,472 | |||||||||||||||
Average rig revenue per day
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$ | 16,658 | $ | 18,563 | $ | 12,437 | $ | 15,941 | $ | 11,635 | ||||||||||
Average rig expense per day
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$ | 8,439 | $ | 9,246 | $ | 8,214 | $ | 8,403 | $ | 8,001 | ||||||||||
Average rig margin per day
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$ | 8,219 | $ | 9,317 | $ | 4,223 | $ | 7,538 | $ | 3,634 | ||||||||||
Rig utilization
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94 | % | 95 | % | 92 | % | 94 | % | 87 | % | ||||||||||
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U.S. OFFSHORE OPERATIONS
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Revenues
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$ | 19,905 | $ | 26,011 | $ | 23,601 | $ | 84,921 | $ | 84,238 | ||||||||||
Direct operating expenses
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11,504 | 17,443 | 15,653 | 52,786 | 52,987 | |||||||||||||||
General and administrative expense
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1,071 | 1,103 | 968 | 3,825 | 3,256 | |||||||||||||||
Depreciation
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2,682 | 2,745 | 3,004 | 10,602 | 12,107 | |||||||||||||||
Asset impairment
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| | 51,516 | | 51,516 | |||||||||||||||
Operating
income (loss)*
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$ | 4,648 | $ | 4,720 | $ | (47,540 | ) | $ | 17,708 | $ | (35,628 | ) | ||||||||
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Activity days
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455 | 654 | 601 | 2,122 | 2,088 | |||||||||||||||
Average rig revenue per day
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$ | 32,614 | $ | 29,782 | $ | 27,777 | $ | 29,228 | $ | 29,070 | ||||||||||
Average rig expense per day
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$ | 16,426 | $ | 17,838 | $ | 17,377 | $ | 15,967 | $ | 16,509 | ||||||||||
Average rig margin per day
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$ | 16,188 | $ | 11,944 | $ | 10,400 | $ | 13,261 | $ | 12,561 | ||||||||||
Rig utilization
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45 | % | 65 | % | 54 | % | 53 | % | 48 | % |
*NOTE: | The following is a reconciliation of the operating income (loss) for the U.S. Offshore segment for the fourth quarter of 2004, which is provided to assist with quarterly comparisons. |
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Operating Loss | $ | (47,540 | ) | ||
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Impairment charge | 51,516 | ||||
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Operating income, as adjusted | $ | 3,976 | |||
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SEGMENT REPORTING | Three Months Ended | Fiscal Year Ended | ||||||||||||||||||
June 30 | September 30 | September 30 | ||||||||||||||||||
2005 | 2005 | 2004 | 2005 | 2004 | ||||||||||||||||
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Operating income (loss)
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U.S. Land
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$ | 47,244 | $ | 56,028 | $ | 13,856 | $ | 164,657 | $ | 35,545 | ||||||||||
U.S. Offshore
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4,648 | 4,720 | (47,540 | ) | 17,708 | (35,628 | ) | |||||||||||||
International
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5,284 | 3,910 | 5,185 | 18,973 | 12,126 | |||||||||||||||
Real Estate
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1,266 | 1,512 | 34 | 4,714 | 3,198 | |||||||||||||||
Segment operating income (loss)
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$ | 58,442 | $ | 66,170 | $ | (28,465 | ) | $ | 206,052 | $ | 15,241 | |||||||||
Corporate general and administrative
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(7,644 | ) | (6,056 | ) | (5,617 | ) | (26,033 | ) | (24,496 | ) | ||||||||||
Other depreciation
|
(683 | ) | (791 | ) | (864 | ) | (2,991 | ) | (3,007 | ) | ||||||||||
Inter-segment elimination
|
703 | 560 | | 2,178 | | |||||||||||||||
Operating income (loss)
|
$ | 50,818 | $ | 59,883 | $ | (34,946 | ) | $ | 179,206 | $ | (12,262 | ) | ||||||||
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Other income (expense):
|
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Interest and dividend income
|
1,671 | 1,984 | 476 | 5,809 | 1,965 | |||||||||||||||
Interest expense
|
(3,127 | ) | (2,960 | ) | (3,247 | ) | (12,642 | ) | (12,695 | ) | ||||||||||
Gain on sale of investment securities
|
| 656 | 13,442 | 26,969 | 25,418 | |||||||||||||||
Income from asset sales
|
603 | 1,160 | 3,639 | 13,550 | 5,377 | |||||||||||||||
Other
|
29 | (610 | ) | 66 | (235 | ) | 197 | |||||||||||||
Total other income (expense)
|
(824 | ) | 230 | 14,376 | 33,451 | 20,262 | ||||||||||||||
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Income (loss) before income taxes and
equity in income of affiliates
|
$ | 49,994 | $ | 60,113 | $ | (20,570 | ) | $ | 212,657 | $ | 8,000 | |||||||||