Exhibit 99

February 1, 2007

HELMERICH & PAYNE, INC. ANNOUNCES FIRST QUARTER EARNINGS

Helmerich & Payne, Inc. reported record net income of $110,786,000 ($1.06 per diluted share) from operating revenues of $386,399,000 for its first fiscal quarter ended December 31, 2006, compared with net income of $50,814,000 ($0.48 per diluted share) from operating revenues of $255,388,000 during last year’s first fiscal quarter ended December 31, 2005.

Included in this year’s first quarter net income are after-tax gains from the sale of portfolio securities of $16,184,000 ($0.15 per diluted share).  Last year’s first quarter net income included $1,721,000 ($0.02 per diluted share) of gains from the sale of portfolio securities.

The Company reported operating income of $146,654,000 for the first quarter of fiscal 2007, which represents an increase of over 80% as compared to operating income of $80,904,000 for the first quarter of fiscal 2006, and a sequential quarterly increase of over 20% as compared to operating income of $121,994,000 for the quarter ended September 30, 2006.  The most recent quarter-to-quarter growth in operating income was mostly a result of increased activity in the Company’s U.S. land operations and increased margins in its international operations.

Segment operating income in the Company’s U.S. land operations increased for the 11th consecutive quarter to $118,408,000 for the first quarter of fiscal 2007, from $70,991,000 for the same period last year and from $103,679,000 for last year’s fourth fiscal quarter.  The average rig margin per day was up slightly compared to the previous quarter as a result of a lower average rig expense per day.  Total activity days in U.S. land operations during the quarter increased to 10,548, compared with 8,035 activity days during the same period last year and 9,577 activity days during the fourth quarter of fiscal 2006.   Additional rig activity days associated with the Company’s new FlexRig®* construction program are estimated to continue at 900 to 1,100 per quarter during this fiscal year as three to four rigs per month are completed and sent to the field.

The average U.S. land rig revenue per day for the first quarter of fiscal 2007 was $24,231, compared with $24,343 per rig day during the previous quarter.  Average rig expense per day for the quarter fell slightly to $10,717, compared with $11,055 per rig day during the previous quarter.  The average U.S. land rig margin per day for the quarter was $13,514, a slight increase from the previous quarter average of $13,288 per rig day.  Rig utilization during the quarter averaged 98%, compared with 97% during the same period last year and 99% during the fourth quarter of fiscal 2006.

Since March 2005 and as previously announced, the Company has signed term contracts for three years or more with a number of exploration and production companies to build and operate 73 new FlexRigs with favorable financial returns.  The Company announced today that 38 of the 73 rigs have been completed and are now operating in (or in transit to) the field.

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News Release

February 1, 2007

 

Company President and C.E.O., Hans Helmerich commented, “We continue to experience strong demand for the H&P brand, which is based on delivering savings to our customers through high efficiency rigs and an organization focused on safety and field execution.  Although the U.S. land market has recently experienced a softening in dayrates and lower utilization rates, we expect our customers’ strong preference for FlexRigs to sustain better margins and utilization rates for our fleet as compared to our competition.  Whereas much of the industry’s new builds and rig refurbishments will actually go to replace aging and less capable equipment, our current new build program drives an 80% expansion to our fleet.  The incremental number of fully contracted new FlexRigs that we are scheduled to deliver this year will significantly contribute to earnings going forward.”

The Company’s U.S. offshore operations reported segment operating income of $5,691,000 for the first quarter of fiscal 2007, compared with $5,111,000 for the first quarter of fiscal 2006 and $6,892,000 for the fourth quarter of fiscal 2006.  Total activity days in U.S. offshore operations during the quarter decreased to 588, compared with 644 activity days during the same period last year and 672 activity days during the fourth quarter of fiscal 2006.  During January 2007, the Company finalized an agreement to sell two of its offshore platform rigs.  The sale is expected to close in February 2007.  After completing the sale, the Company will own nine offshore platform rigs, three of which are currently fully active, three are on standby rates, one is waiting on location, and two are stacked.

The Company’s international operations reported that segment operating income for the first quarter of fiscal 2007 was up substantially to $25,763,000, compared with $9,302,000 for last fiscal year’s first quarter and $17,077,000 for last fiscal year’s fourth quarter.  The average rig margin per rig day for the first quarter of fiscal 2007 rose to $12,812, compared with $6,773 per day during last fiscal year’s first quarter and $9,777 per day during last fiscal year’s fourth quarter.  Rig utilization for international operations was 96% for the quarter, compared with 83% during last fiscal year’s first quarter and 95% for last fiscal year’s fourth quarter.  The Company experienced improved rig margins per day in all of its major international operations during the quarter.

Helmerich & Payne, Inc. is a contract drilling company with a rig fleet that currently includes 127 U.S. land rigs, nine U.S. platform rigs located in the Gulf of Mexico and 27 international land rigs.  In addition, the Company expects to complete another 35 new H&P-designed and operated FlexRigs during calendar 2007, expanding its total number of FlexRigs to 123 and its total number of U.S. land rigs to 162. 

Helmerich & Payne, Inc.’s conference call/webcast is scheduled to begin this morning at 11:00 a.m. ET (10:00 a.m. CT) and can be accessed at http://www.hpinc.com under Investors.  If you are unable to participate during the live webcast, the call will be archived for a year on H&P’s website indicated above.

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News Release

February 1, 2007

 

Statements in this release and information disclosed in the conference call and webcast that are “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934 are based on current expectations and assumptions that are subject to risks and uncertainties. For information regarding risks and uncertainties associated with the Company’s business, please refer to the “Risk Factors” and “Management’s Discussion & Analysis of Results of Operations and Financial Condition” sections of the Company’s SEC filings, including but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q.  As a result of these factors, Helmerich & Payne, Inc.’s actual results may differ materially from those indicated or implied by such forward-looking statements.

*FlexRig® is a registered trademark of Helmerich & Payne, Inc.

Contact:  Juan Pablo Tardio

(918) 588-5383

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News Release

February 1, 2007

 

HELMERICH & PAYNE, INC.
Unaudited
(in thousands, except per share data)

 

		Three Months Ended
		September 30			December 31
CONSOLIDATED STATEMENTS OF INCOME		2006			2006			2005
Operating revenues:
Drilling - U.S. Land		$	247,776		$	269,900		$	172,754
Drilling - U.S. Offshore		34,789			30,986			29,520
Drilling - International		73,587			82,614			50,257
Real Estate		2,647			2,899			2,857
		358,799			386,399			255,388
Operating costs and expenses:
Operating costs		194,738			199,467			140,596
Depreciation		30,199			30,151			22,923
General and administrative		12,929			10,613			11,938
Income from asset sales		(1,061		)	(486		)	(973		)
		236,805			239,745			174,484
Operating income		121,994			146,654			80,904
Other income (expense):
Interest and dividend income		2,215			1,244			2,530
Interest expense		(837		)	(919		)	(2,580		)
Gain on sale of investment securities		7,756			26,337			2,720
Other		40			64			(513		)
		9,174			26,726			2,157
Income before income taxes and equity in income of affiliates		131,168			173,380			83,061
Income tax provision		35,713			64,098			32,802
Equity in income of affiliates net of income taxes		3,041			1,504			555
NET INCOME		$	98,496		$	110,786		$	50,814
Earnings per common share:
Basic		$	0.94		$	1.07		$	0.49
Diluted		$	0.93		$	1.06		$	0.48
Average common shares outstanding:
Basic		105,003			103,312			103,987
Diluted		106,176			104,776			106,173

 

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News Release

February 1, 2007

 

HELMERICH & PAYNE, INC.
Unaudited
(in thousands)

 

CONSOLIDATED CONDENSED BALANCE SHEETS		12/31/06			9/30/06
ASSETS
Cash and cash equivalents		$	73,088		$	33,853
Short-term investments		333			48,673
Other current assets		398,904			346,165
Total current assets		472,325			428,691
Investments		191,119			218,309
Net property, plant, and equipment		1,603,978			1,483,134
Other assets		4,584			4,578
TOTAL ASSETS		$	2,272,006		$	2,134,712
LIABILITIES AND SHAREHOLDERS’ EQUITY
Total current liabilities		295,928			$	264,548
Total noncurrent liabilities		312,760			313,272
Long-term notes payable		205,000			175,000
Total shareholders’ equity		1,458,318			1,381,892
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	2,272,006		$	2,134,712

 

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News Release

February 1, 2007

 

HELMERICH & PAYNE, INC.
Unaudited
(in thousands)

 

		Three Months Ended December 31
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS		2006			2005
OPERATING ACTIVITIES:
Net income		$	110,786		$	50,814
Depreciation		30,151			22,923
Changes in assets and liabilities		24,157			(11,529		)
Gain on sale of assets		(26,685		)	(3,557		)
Other		(591		)	1,823
Net cash provided by operating activities		137,818			60,474
INVESTING ACTIVITIES:
Capital expenditures		(187,484		)	(53,654		)
Proceeds from sale of assets		85,616			4,528
Net cash used in investing activities		(101,868		)	(49,126		)
FINANCING ACTIVITIES:
Dividends paid		(4,655		)	(4,291		)
Repurchase of common stock		(17,621		)	—
Net decrease in bank overdraft		(14,943		)	—
Proceeds from exercise of stock options		471			3,718
Net proceeds from short-term notes and long-term debt		40,000			—
Excess tax benefit from stock-based compensation		33			2,051
Net cash provided by financing activities		3,285			1,478
Net increase in cash and cash equivalents		39,235			12,826
Cash and cash equivalents, beginning of period		33,853			288,752
Cash and cash equivalents, end of period		$	73,088		$	301,578

 

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February 1, 2007

 

 

		Three Months Ended
		September 30,			December 31,
SEGMENT REPORTING		2006			2006			2005
		(in thousands except days and per day amounts)
U.S. LAND OPERATIONS
Revenues		$	247,776		$	269,900		$	172,754
Direct operating expenses		120,513			127,357			84,215
General and administrative expense		2,914			3,452			3,082
Depreciation		20,670			20,683			14,466
Segment Operating income		$	103,679		$	118,408		$	70,991
Activity days		9,577			10,548			8,035
Average rig revenue per day		$	24,343		$	24,231		$	20,198
Average rig expense per day		$	11,055		$	10,717		$	9,179
Average rig margin per day		$	13,288		$	13,514		$	11,019
Rig utilization		99		%	98		%	97		%
U.S. OFFSHORE OPERATIONS
Revenues		$	34,789		$	30,986		$	29,520
Direct operating expenses		23,439			21,104			20,308
General and administrative expense		1,336			1,421			1,437
Depreciation		3,122			2,770			2,664
Segment Operating Income		$	6,892		$	5,691		$	5,111
Activity days		672			588			644
Average rig revenue per day		$	38,695		$	38,824		$	36,339
Average rig expense per day		$	24,198		$	23,901		$	22,986
Average rig margin per day		$	14,497		$	14,923		$	13,353
Rig utilization		69		%	71		%	64		%

 

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News Release

February 1, 2007

 

 

		Three Months Ended
		September 30,			December 31,
SEGMENT REPORTING		2006			2006			2005
		(in thousands except days and per day amounts)
INTERNATIONAL OPERATIONS
Revenues		$	73,587		$	82,614		$	50,257
Direct operating expenses		50,257			50,694			35,693
General and administrative expense		992			600			606
Depreciation		5,261			5,557			4,656
Segment Operating income		$	17,077		$	25,763		$	9,302
Activity days		2,324			2,366			2,028
Average rig revenue per day		$	25,242		$	27,690		$	20,285
Average rig expense per day		$	15,465		$	14,878		$	13,512
Average rig margin per day		$	9,777		$	12,812		$	6,773
Rig utilization		95		%	96		%	83		%

 

Per day calculations for international operations exclude gains and losses from translation of foreign currency transactions.

 

Operating statistics exclude the effects of offshore platform and international management contracts, and do not include reimbursement of “out-of-pocket” expenses in revenue per day, expense per day and margin calculations.

 

Reimbursed amounts were as follows:

 

U.S. Land Operations		$	14,645		$	14,309		$	10,463
U.S. Offshore Operations		$	4,034		$	3,344		$	3,753
International Operations		$	10,487		$	12,516		$	5,125
REAL ESTATE
Revenues		$	2,647		$	2,899		$	2,857
Direct operating expenses		877			843			801
Depreciation		630			589			603
Segment Operating income		$	1,140		$	1,467		$	1,453

 

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News Release

February 1, 2007

 

Segment operating income for all segments is a non-GAAP financial measure of the Company’s performance, as it excludes general and administrative expenses, corporate depreciation, income from asset sales and other corporate income and expense.  The Company considers segment operating income to be an important supplemental measure of operating performance for presenting trends in the Company’s core businesses.  This measure is used by the Company for planning and budgeting purposes and to facilitate period-to-period comparisons in operating performance of the Company’s reportable segments in the aggregate by eliminating items that affect comparability between periods.  The Company believes that segment operating income is useful to investors because it provides a means to evaluate the operating performance of the segments and the Company on an ongoing basis using criteria that are used by our internal decision makers.  Additionally, it highlights operating trends and aids analytical comparisons.  However, segment operating income has limitations and should not be used as an alternative to operating income or loss, a performance measure determined in accordance with GAAP, as it excludes certain costs that may affect the Company’s operating performance in future periods.

 

The following table reconciles segment operating income per the information above to income before income taxes and equity in income of affiliates as reported on the Consolidated Statements of Income (in thousands).

 

		Three Months Ended
		September 30,			December 31,
		2006			2006			2005
Operating income
U.S. Land		$	103,679		$	118,408		$	70,991
U.S. Offshore		6,892			5,691			5,111
International		17,077			25,763			9,302
Real Estate		1,140			1,467			1,453
Segment operating income		$	128,788		$	151,329		$	86,857
Corporate general & administrative		(7,687		)	(5,140		)	(6,813		)
Other depreciation		(516		)	(552		)	(534		)
Inter-segment elimination		348			531			421
Income from asset sales		1,061			486			973
Operating income		$	121,994		$	146,654		$	80,904
Other income (expense):
Interest and dividend income		2,215			1,244			2,530
Interest expense		(837		)	(919		)	(2,580		)
Gain on sale of investment securities		7,756			26,337			2,720
Other		40			64			(513		)
Total other income		9,174			26,726			2,157
Income before income taxes and equity in income of affiliates		$	131,168		$	173,380		$	83,061

 

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