|
Delaware
|
|
73-0679879
|
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer I.D. Number)
|
Title of each class
|
Trading symbol(s)
|
Name of each exchange on which registered
|
Common Stock ($0.10 par value)
|
HP
|
New York Stock Exchange
|
Large accelerated filer
|
☒
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☐
|
Smaller reporting company
|
☐
|
|
|
Emerging growth company
|
☐
|
CLASS
|
|
OUTSTANDING AT July 18, 2019
|
Common Stock, $0.10 par value
|
|
109,433,698
|
|
|
|
Page
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
September 30,
|
||||
(in thousands except share data and per share amounts)
|
2019
|
|
2018
|
||||
Assets
|
|
|
|
||||
Current Assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
334,775
|
|
|
$
|
284,355
|
|
Short-term investments
|
45,748
|
|
|
41,461
|
|
||
Accounts receivable, net of allowance of $4,837 and $6,217, respectively
|
508,183
|
|
|
565,202
|
|
||
Inventories of materials and supplies, net
|
150,126
|
|
|
158,134
|
|
||
Prepaid expenses and other
|
77,406
|
|
|
66,398
|
|
||
Total current assets
|
1,116,238
|
|
|
1,115,550
|
|
||
Investments
|
48,291
|
|
|
98,696
|
|
||
Property, plant and equipment, net
|
4,583,673
|
|
|
4,857,382
|
|
||
Other Noncurrent Assets:
|
|
|
|
||||
Goodwill
|
67,902
|
|
|
64,777
|
|
||
Intangible assets, net
|
69,093
|
|
|
73,207
|
|
||
Other assets
|
12,182
|
|
|
5,255
|
|
||
Total other noncurrent assets
|
149,177
|
|
|
143,239
|
|
||
|
|
|
|
||||
Total assets
|
$
|
5,897,379
|
|
|
$
|
6,214,867
|
|
|
|
|
|
||||
Liabilities and Shareholders’ Equity
|
|
|
|
||||
Current Liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
134,077
|
|
|
$
|
132,664
|
|
Accrued liabilities
|
256,449
|
|
|
244,504
|
|
||
Total current liabilities
|
390,526
|
|
|
377,168
|
|
||
Noncurrent Liabilities:
|
|
|
|
||||
Long-term debt, net
|
491,651
|
|
|
493,968
|
|
||
Deferred income taxes
|
827,027
|
|
|
853,136
|
|
||
Other
|
78,490
|
|
|
93,606
|
|
||
Noncurrent liabilities - discontinued operations
|
14,631
|
|
|
14,254
|
|
||
Total noncurrent liabilities
|
1,411,799
|
|
|
1,454,964
|
|
||
Commitments and Contingencies (Note 14)
|
|
|
|
||||
Shareholders' Equity:
|
|
|
|
||||
Common stock, $.10 par value, 160,000,000 shares authorized, 112,080,262 and 112,008,961 shares issued as of June 30, 2019 and September 30, 2018, respectively, and 109,433,198 and 108,993,718 shares outstanding as of June 30, 2019 and September 30, 2018, respectively
|
11,208
|
|
|
11,201
|
|
||
Preferred stock, no par value, 1,000,000 shares authorized, no shares issued
|
—
|
|
|
—
|
|
||
Additional paid-in capital
|
501,585
|
|
|
500,393
|
|
||
Retained earnings
|
3,750,785
|
|
|
4,027,779
|
|
||
Accumulated other comprehensive income (loss)
|
(16,085
|
)
|
|
16,550
|
|
||
Treasury stock, at cost, 2,647,064 shares and 3,015,243 shares as of June 30, 2019 and September 30, 2018, respectively
|
(152,439
|
)
|
|
(173,188
|
)
|
||
Total shareholders’ equity
|
4,095,054
|
|
|
4,382,735
|
|
||
Total liabilities and shareholders' equity
|
$
|
5,897,379
|
|
|
$
|
6,214,867
|
|
|
Three Months Ended
June 30, |
|
Nine Months Ended
June 30, |
||||||||||||
(in thousands, except per share amounts)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
|
As adjusted (Note 2)
|
|
|
|
As adjusted (Note 2)
|
||||||||
Operating revenues
|
|
|
|
|
|
|
|
||||||||
Contract drilling
|
$
|
684,788
|
|
|
$
|
637,548
|
|
|
$
|
2,139,798
|
|
|
$
|
1,763,939
|
|
Other
|
3,186
|
|
|
11,324
|
|
|
9,642
|
|
|
26,504
|
|
||||
|
687,974
|
|
|
648,872
|
|
|
2,149,440
|
|
|
1,790,443
|
|
||||
Operating costs and expenses
|
|
|
|
|
|
|
|
||||||||
Contract drilling operating expenses, excluding depreciation and amortization
|
443,114
|
|
|
443,087
|
|
|
1,372,426
|
|
|
1,199,422
|
|
||||
Operating expenses applicable to other revenues
|
1,414
|
|
|
1,424
|
|
|
4,308
|
|
|
3,728
|
|
||||
Depreciation and amortization
|
143,297
|
|
|
144,579
|
|
|
427,917
|
|
|
433,521
|
|
||||
Asset impairment charge
|
224,327
|
|
|
—
|
|
|
224,327
|
|
|
—
|
|
||||
Research and development
|
7,066
|
|
|
5,479
|
|
|
21,347
|
|
|
13,149
|
|
||||
Selling, general and administrative
|
46,590
|
|
|
52,310
|
|
|
144,604
|
|
|
147,005
|
|
||||
Gain on sale of assets
|
(9,960
|
)
|
|
(4,313
|
)
|
|
(27,050
|
)
|
|
(15,133
|
)
|
||||
|
855,848
|
|
|
642,566
|
|
|
2,167,879
|
|
|
1,781,692
|
|
||||
Operating income (loss) from continuing operations
|
(167,874
|
)
|
|
6,306
|
|
|
(18,439
|
)
|
|
8,751
|
|
||||
Other income (expense)
|
|
|
|
|
|
|
|
||||||||
Interest and dividend income
|
2,349
|
|
|
2,109
|
|
|
6,861
|
|
|
5,680
|
|
||||
Interest expense
|
(6,257
|
)
|
|
(5,993
|
)
|
|
(17,145
|
)
|
|
(17,794
|
)
|
||||
Loss on investment securities
|
(13,271
|
)
|
|
—
|
|
|
(50,228
|
)
|
|
—
|
|
||||
Other
|
(1,599
|
)
|
|
(61
|
)
|
|
(1,051
|
)
|
|
170
|
|
||||
|
(18,778
|
)
|
|
(3,945
|
)
|
|
(61,563
|
)
|
|
(11,944
|
)
|
||||
Income (loss) from continuing operations before income taxes
|
(186,652
|
)
|
|
2,361
|
|
|
(80,002
|
)
|
|
(3,193
|
)
|
||||
Income tax provision (benefit)
|
(32,031
|
)
|
|
10,535
|
|
|
(5,602
|
)
|
|
(494,028
|
)
|
||||
Income (loss) from continuing operations
|
(154,621
|
)
|
|
(8,174
|
)
|
|
(74,400
|
)
|
|
490,835
|
|
||||
Income from discontinued operations before income taxes
|
7,244
|
|
|
8,383
|
|
|
22,798
|
|
|
9,127
|
|
||||
Income tax provision
|
7,306
|
|
|
8,217
|
|
|
23,231
|
|
|
19,743
|
|
||||
Income (loss) from discontinued operations
|
(62
|
)
|
|
166
|
|
|
(433
|
)
|
|
(10,616
|
)
|
||||
Net income (loss)
|
$
|
(154,683
|
)
|
|
$
|
(8,008
|
)
|
|
$
|
(74,833
|
)
|
|
$
|
480,219
|
|
Basic earnings (loss) per common share:
|
|
|
|
|
|
|
|
||||||||
Income (loss) from continuing operations
|
$
|
(1.42
|
)
|
|
$
|
(0.08
|
)
|
|
$
|
(0.71
|
)
|
|
$
|
4.47
|
|
Loss from discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.10
|
)
|
||||
Net income (loss)
|
$
|
(1.42
|
)
|
|
$
|
(0.08
|
)
|
|
$
|
(0.71
|
)
|
|
$
|
4.37
|
|
Diluted earnings (loss) per common share:
|
|
|
|
|
|
|
|
||||||||
Income (loss) from continuing operations
|
$
|
(1.42
|
)
|
|
$
|
(0.08
|
)
|
|
$
|
(0.71
|
)
|
|
$
|
4.45
|
|
Loss from discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.10
|
)
|
||||
Net income (loss)
|
$
|
(1.42
|
)
|
|
$
|
(0.08
|
)
|
|
$
|
(0.71
|
)
|
|
$
|
4.35
|
|
Weighted average shares outstanding (in thousands):
|
|
|
|
|
|
|
|
||||||||
Basic
|
109,425
|
|
|
108,905
|
|
|
109,324
|
|
|
108,818
|
|
||||
Diluted
|
109,425
|
|
|
108,905
|
|
|
109,324
|
|
|
109,338
|
|
|
Three Months Ended
June 30, |
|
Nine Months Ended
June 30, |
||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net income (loss)
|
$
|
(154,683
|
)
|
|
$
|
(8,008
|
)
|
|
$
|
(74,833
|
)
|
|
$
|
480,219
|
|
Other comprehensive income, net of income taxes:
|
|
|
|
|
|
|
|
||||||||
Unrealized appreciation on securities, net of income taxes of ($5.6) million and ($2.0) million for the three and nine months ended June 30, 2018, respectively
|
—
|
|
|
13,826
|
|
|
—
|
|
|
5,657
|
|
||||
Minimum pension liability adjustments, net of income taxes of ($0.1) million and ($0.2) million for the three and nine months ended June 30, 2019, respectively, and ($0.1) million and ($0.4) million for the three and nine months ended June 30, 2018, respectively
|
226
|
|
|
337
|
|
|
675
|
|
|
985
|
|
||||
Other comprehensive income
|
226
|
|
|
14,163
|
|
|
675
|
|
|
6,642
|
|
||||
Comprehensive income (loss)
|
$
|
(154,457
|
)
|
|
$
|
6,155
|
|
|
$
|
(74,158
|
)
|
|
$
|
486,861
|
|
(in thousands, except per share amounts)
|
Common Stock
|
|
Additional
Paid-In
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Treasury Stock
|
|
|
||||||||||||||||||
Shares
|
|
Amount
|
|
|
|
|
Shares
|
|
Amount
|
|
Total
|
||||||||||||||||||
Balance, March 31, 2019
|
112,080
|
|
|
$
|
11,208
|
|
|
$
|
493,421
|
|
|
$
|
3,979,708
|
|
|
$
|
(12,072
|
)
|
|
2,668
|
|
|
$
|
(153,645
|
)
|
|
$
|
4,318,620
|
|
Comprehensive loss:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(154,683
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(154,683
|
)
|
||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
226
|
|
|
—
|
|
|
—
|
|
|
226
|
|
||||||
Dividends declared ($0.71 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(78,479
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(78,479
|
)
|
||||||
Exercise of employee stock options, net of shares withheld for employee taxes
|
—
|
|
|
—
|
|
|
(225
|
)
|
|
—
|
|
|
—
|
|
|
(15
|
)
|
|
870
|
|
|
645
|
|
||||||
Vesting of restricted stock awards, net of shares withheld for employee taxes
|
—
|
|
|
—
|
|
|
(489
|
)
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
336
|
|
|
(153
|
)
|
||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
8,878
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,878
|
|
||||||
Reclassification of stranded tax effect for adoption of ASU No. 2018-02 (Note 2)
|
—
|
|
|
—
|
|
|
—
|
|
|
4,239
|
|
|
(4,239
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Balance, June 30, 2019
|
112,080
|
|
|
$
|
11,208
|
|
|
$
|
501,585
|
|
|
$
|
3,750,785
|
|
|
$
|
(16,085
|
)
|
|
2,647
|
|
|
$
|
(152,439
|
)
|
|
$
|
4,095,054
|
|
(in thousands, except per share amounts)
|
Common Stock
|
|
Additional
Paid-In
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Treasury Stock
|
|
|
||||||||||||||||||
Shares
|
|
Amount
|
|
|
|
|
Shares
|
|
Amount
|
|
Total
|
||||||||||||||||||
Balance, March 31, 2018
|
112,009
|
|
|
$
|
11,201
|
|
|
$
|
487,135
|
|
|
$
|
4,189,497
|
|
|
$
|
(5,221
|
)
|
|
3,132
|
|
|
$
|
(179,459
|
)
|
|
$
|
4,503,153
|
|
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,008
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,008
|
)
|
||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,163
|
|
|
—
|
|
|
—
|
|
|
14,163
|
|
||||||
Dividends declared ($0.71 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(78,071
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(78,071
|
)
|
||||||
Exercise of employee stock options, net of shares withheld for employee taxes
|
—
|
|
|
—
|
|
|
(84
|
)
|
|
—
|
|
|
—
|
|
|
(62
|
)
|
|
3,498
|
|
|
3,414
|
|
||||||
Vesting of restricted stock awards, net of shares withheld for employee taxes
|
—
|
|
|
—
|
|
|
(373
|
)
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
287
|
|
|
(86
|
)
|
||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
7,926
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,926
|
|
||||||
Balance, June 30, 2018
|
112,009
|
|
|
$
|
11,201
|
|
|
$
|
494,604
|
|
|
$
|
4,103,418
|
|
|
$
|
8,942
|
|
|
3,065
|
|
|
$
|
(175,674
|
)
|
|
$
|
4,442,491
|
|
(in thousands, except per share amounts)
|
Common Stock
|
|
Additional
Paid-In
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other Comprehensive Income (Loss) |
|
Treasury Stock
|
|
|
||||||||||||||||||
Shares
|
|
Amount
|
|
|
|
|
Shares
|
|
Amount
|
|
Total
|
||||||||||||||||||
Balance, September 30, 2018
|
112,009
|
|
|
$
|
11,201
|
|
|
$
|
500,393
|
|
|
$
|
4,027,779
|
|
|
$
|
16,550
|
|
|
3,015
|
|
|
$
|
(173,188
|
)
|
|
$
|
4,382,735
|
|
Comprehensive loss:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(74,833
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(74,833
|
)
|
||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
675
|
|
|
—
|
|
|
—
|
|
|
675
|
|
||||||
Dividends declared ($2.13 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(235,433
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(235,433
|
)
|
||||||
Exercise of employee stock options, net of shares withheld for employee taxes
|
—
|
|
|
—
|
|
|
(7,088
|
)
|
|
—
|
|
|
—
|
|
|
(147
|
)
|
|
8,259
|
|
|
1,171
|
|
||||||
Vesting of restricted stock awards, net of shares withheld for employee taxes
|
71
|
|
|
7
|
|
|
(17,187
|
)
|
|
—
|
|
|
—
|
|
|
(221
|
)
|
|
12,490
|
|
|
(4,690
|
)
|
||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
25,467
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25,467
|
|
||||||
Cumulative effect adjustment for adoption of ASU No. 2014-09 (Note 9)
|
—
|
|
|
—
|
|
|
—
|
|
|
(38
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(38
|
)
|
||||||
Cumulative effect adjustment for adoption of ASU No. 2016-01 (Note 2)
|
—
|
|
|
—
|
|
|
—
|
|
|
29,071
|
|
|
(29,071
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Reclassification of stranded tax effect for adoption of ASU No. 2018-02 (Note 2)
|
—
|
|
|
—
|
|
|
—
|
|
|
4,239
|
|
|
(4,239
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Balance, June 30, 2019
|
112,080
|
|
|
$
|
11,208
|
|
|
$
|
501,585
|
|
|
$
|
3,750,785
|
|
|
$
|
(16,085
|
)
|
|
2,647
|
|
|
$
|
(152,439
|
)
|
|
$
|
4,095,054
|
|
(in thousands, except per share amounts)
|
Common Stock
|
|
Additional
Paid-In
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other Comprehensive Income (Loss) |
|
Treasury Stock
|
|
|
||||||||||||||||||
Shares
|
|
Amount
|
|
|
|
|
Shares
|
|
Amount
|
|
Total
|
||||||||||||||||||
Balance, September 30, 2017
|
111,957
|
|
|
$
|
11,196
|
|
|
$
|
487,248
|
|
|
$
|
3,855,686
|
|
|
$
|
2,300
|
|
|
3,353
|
|
|
$
|
(191,839
|
)
|
|
$
|
4,164,591
|
|
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
480,219
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
480,219
|
|
||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,642
|
|
|
—
|
|
|
—
|
|
|
6,642
|
|
||||||
Dividends declared ($2.11 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(231,932
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(231,932
|
)
|
||||||
Exercise of employee stock options, net of shares withheld for employee taxes
|
1
|
|
|
—
|
|
|
(5,147
|
)
|
|
—
|
|
|
—
|
|
|
(152
|
)
|
|
8,503
|
|
|
3,356
|
|
||||||
Vesting of restricted stock awards, net of shares withheld for employee taxes
|
51
|
|
|
5
|
|
|
(11,841
|
)
|
|
—
|
|
|
—
|
|
|
(136
|
)
|
|
7,662
|
|
|
(4,174
|
)
|
||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
23,472
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23,472
|
|
||||||
Cumulative effect adjustment for adoption of ASU No. 2016-09
|
—
|
|
|
—
|
|
|
872
|
|
|
(555
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
317
|
|
||||||
Balance, June 30, 2018
|
112,009
|
|
|
$
|
11,201
|
|
|
$
|
494,604
|
|
|
$
|
4,103,418
|
|
|
$
|
8,942
|
|
|
3,065
|
|
|
$
|
(175,674
|
)
|
|
$
|
4,442,491
|
|
|
Nine Months Ended June 30,
|
||||||
(in thousands)
|
2019
|
|
2018
|
||||
|
|
|
As adjusted (Note 2)
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income (loss)
|
$
|
(74,833
|
)
|
|
$
|
480,219
|
|
Adjustment for loss from discontinued operations
|
433
|
|
|
10,616
|
|
||
Income (loss) from continuing operations
|
(74,400
|
)
|
|
490,835
|
|
||
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
427,917
|
|
|
433,521
|
|
||
Asset impairment charge
|
224,327
|
|
|
—
|
|
||
Amortization of debt discount and debt issuance costs
|
1,176
|
|
|
798
|
|
||
Provision for bad debt
|
544
|
|
|
598
|
|
||
Stock-based compensation
|
25,467
|
|
|
23,472
|
|
||
Loss on investment securities
|
50,228
|
|
|
—
|
|
||
Gain on sale of assets
|
(27,050
|
)
|
|
(15,133
|
)
|
||
Deferred income tax benefit
|
(25,503
|
)
|
|
(498,491
|
)
|
||
Other
|
5,356
|
|
|
3,735
|
|
||
Change in assets and liabilities increasing (decreasing) cash:
|
|
|
|
||||
Accounts receivable
|
63,002
|
|
|
(87,508
|
)
|
||
Inventories of materials and supplies
|
1,473
|
|
|
(14,905
|
)
|
||
Prepaid expenses and other
|
(9,556
|
)
|
|
(9,623
|
)
|
||
Other noncurrent assets
|
(5,899
|
)
|
|
6,105
|
|
||
Accounts payable
|
276
|
|
|
6,513
|
|
||
Accrued liabilities
|
8,110
|
|
|
40,668
|
|
||
Deferred income tax liability
|
11
|
|
|
(2,511
|
)
|
||
Other noncurrent liabilities
|
(6,052
|
)
|
|
(6,496
|
)
|
||
Net cash provided by operating activities from continuing operations
|
659,427
|
|
|
371,578
|
|
||
Net cash used in operating activities from discontinued operations
|
(56
|
)
|
|
(150
|
)
|
||
Net cash provided by operating activities
|
659,371
|
|
|
371,428
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Capital expenditures
|
(403,570
|
)
|
|
(322,658
|
)
|
||
Purchase of short-term investments
|
(71,852
|
)
|
|
(52,159
|
)
|
||
Payment for acquisition of business, net of cash acquired
|
(2,781
|
)
|
|
(47,886
|
)
|
||
Proceeds from sale of short-term investments
|
68,015
|
|
|
52,470
|
|
||
Proceeds from asset sales
|
36,227
|
|
|
28,049
|
|
||
Net cash used in investing activities
|
(373,961
|
)
|
|
(342,184
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Dividends paid
|
(235,058
|
)
|
|
(230,368
|
)
|
||
Debt issuance costs paid
|
(3,912
|
)
|
|
—
|
|
||
Proceeds from stock option exercises
|
2,901
|
|
|
5,160
|
|
||
Payments for employee taxes on net settlement of equity awards
|
(6,420
|
)
|
|
(5,978
|
)
|
||
Payment of contingent consideration from acquisition of business
|
—
|
|
|
(10,625
|
)
|
||
Net cash used in financing activities
|
(242,489
|
)
|
|
(241,811
|
)
|
||
Net increase (decrease) in cash and cash equivalents and restricted cash
|
42,921
|
|
|
(212,567
|
)
|
||
Cash and cash equivalents and restricted cash, beginning of period
|
326,185
|
|
|
560,509
|
|
||
Cash and cash equivalents and restricted cash, end of period
|
$
|
369,106
|
|
|
$
|
347,942
|
|
|
|
|
|
||||
Supplemental disclosure of cash flow information:
|
|
|
|
||||
Cash paid during the period:
|
|
|
|
||||
Interest paid
|
$
|
12,794
|
|
|
$
|
11,888
|
|
Income tax paid, net
|
$
|
11,213
|
|
|
$
|
4,633
|
|
Changes in accounts payable and accrued liabilities related to purchases of property, plant and equipment
|
$
|
16,279
|
|
|
$
|
1,070
|
|
|
June 30,
|
|
September 30,
|
||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2018
|
|
2017
|
||||||||
Cash
|
$
|
334,775
|
|
|
$
|
306,426
|
|
|
$
|
284,355
|
|
|
$
|
521,375
|
|
Restricted Cash
|
|
|
|
|
|
|
|
||||||||
Prepaid expenses and other
|
30,543
|
|
|
34,614
|
|
|
39,830
|
|
|
32,439
|
|
||||
Other assets
|
3,788
|
|
|
6,902
|
|
|
2,000
|
|
|
6,695
|
|
||||
Total cash, cash equivalents, and restricted cash
|
$
|
369,106
|
|
|
$
|
347,942
|
|
|
$
|
326,185
|
|
|
$
|
560,509
|
|
|
Nine Months Ended June 30, 2018
|
||||||||||||||
(in thousands)
|
Historical
Accounting
Method
|
|
Effect of
Adoption of
ASU No. 2016-15
|
|
Effect of
Adoption of
ASU No. 2016-18
|
|
As
Adjusted
|
||||||||
Unaudited Condensed Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
|
||||||||
Change in prepaid expenses and other
|
$
|
(11,798
|
)
|
|
$
|
—
|
|
|
$
|
2,175
|
|
|
$
|
(9,623
|
)
|
Change in noncurrent assets
|
5,898
|
|
|
—
|
|
|
207
|
|
|
6,105
|
|
||||
Change in accrued liabilities
|
30,043
|
|
|
10,625
|
|
|
—
|
|
|
40,668
|
|
||||
Cash provided by operating activities
|
358,421
|
|
|
10,625
|
|
|
2,382
|
|
|
371,428
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Payment of contingent consideration from acquisition of business
|
—
|
|
|
(10,625
|
)
|
|
—
|
|
|
(10,625
|
)
|
||||
Cash used in financing activities
|
(231,186
|
)
|
|
(10,625
|
)
|
|
—
|
|
|
(241,811
|
)
|
(in thousands)
|
Estimated Useful Lives
|
|
June 30, 2019
|
|
September 30, 2018
|
||||
Contract drilling equipment
|
4 - 15 years
|
|
$
|
8,486,332
|
|
|
$
|
8,442,081
|
|
Real estate properties
|
10 - 45 years
|
|
71,114
|
|
|
68,888
|
|
||
Other
|
2 - 23 years
|
|
469,933
|
|
|
471,310
|
|
||
Construction in progress
|
|
|
158,936
|
|
|
163,968
|
|
||
|
|
|
9,186,315
|
|
|
9,146,247
|
|
||
Accumulated depreciation
|
|
|
(4,602,642
|
)
|
|
(4,288,865
|
)
|
||
Property, plant and equipment, net
|
|
|
$
|
4,583,673
|
|
|
$
|
4,857,382
|
|
Balance at September 30, 2018
|
$
|
64,777
|
|
Additions (Note 1)
|
3,125
|
|
|
Balance at June 30, 2019
|
$
|
67,902
|
|
|
|
|
June 30, 2019
|
|
September 30, 2018
|
||||||||||||||||||||
(in thousands)
|
Estimated Useful Lives
|
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
|
Net
|
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
|
Net
|
||||||||||||
Finite-lived intangible asset:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Developed technology
|
15 years
|
|
$
|
70,200
|
|
|
$
|
9,089
|
|
|
$
|
61,111
|
|
|
$
|
70,000
|
|
|
$
|
5,589
|
|
|
$
|
64,411
|
|
Trade name
|
20 years
|
|
5,700
|
|
|
451
|
|
|
5,249
|
|
|
5,700
|
|
|
237
|
|
|
5,463
|
|
||||||
Customer relationships
|
5 years
|
|
4,000
|
|
|
1,267
|
|
|
2,733
|
|
|
4,000
|
|
|
667
|
|
|
3,333
|
|
||||||
|
|
|
$
|
79,900
|
|
|
$
|
10,807
|
|
|
$
|
69,093
|
|
|
$
|
79,700
|
|
|
$
|
6,493
|
|
|
$
|
73,207
|
|
|
June 30, 2019
|
|
September 30, 2018
|
||||||||||||||||||||
(in thousands)
|
Face
Amount
|
|
Unamortized
Discount and Debt Issuance
Cost
|
|
Book
Value
|
|
Face
Amount
|
|
Unamortized
Discount and Debt Issuance Cost |
|
Book
Value
|
||||||||||||
Unsecured senior notes:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Due March 19, 2025
|
$
|
500,000
|
|
|
$
|
(8,349
|
)
|
|
$
|
491,651
|
|
|
$
|
500,000
|
|
|
$
|
(6,032
|
)
|
|
$
|
493,968
|
|
|
500,000
|
|
|
(8,349
|
)
|
|
491,651
|
|
|
500,000
|
|
|
(6,032
|
)
|
|
493,968
|
|
||||||
Less long-term debt due within one year
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Long-term debt
|
$
|
500,000
|
|
|
$
|
(8,349
|
)
|
|
$
|
491,651
|
|
|
$
|
500,000
|
|
|
$
|
(6,032
|
)
|
|
$
|
493,968
|
|
(in thousands)
|
June 30,
2019 |
|
September 30,
2018 |
||||
Pre-tax amounts:
|
|
|
|
||||
Unrealized appreciation on securities (1)
|
$
|
—
|
|
|
$
|
44,023
|
|
Unrealized actuarial loss
|
(20,818
|
)
|
|
(21,693
|
)
|
||
|
$
|
(20,818
|
)
|
|
$
|
22,330
|
|
After-tax amounts:
|
|
|
|
||||
Unrealized appreciation on securities (1)
|
$
|
—
|
|
|
$
|
29,071
|
|
Unrealized actuarial loss
|
(16,085
|
)
|
|
(12,521
|
)
|
||
|
$
|
(16,085
|
)
|
|
$
|
16,550
|
|
(1)
|
As disclosed in Note 2—Summary of Significant Accounting Policies, Risks and Uncertainties, we adopted ASU No. 2016-01 on October 1, 2018. The standard requires that changes in the fair value of our equity investments must be recognized in net income.
|
|
Three Months Ended
June 30, 2019 |
||
(in thousands)
|
Defined Benefit
Pension Plan
|
||
Balance at March 31, 2019
|
$
|
(12,072
|
)
|
Adoption of ASU No. 2018-02 (1)
|
(4,239
|
)
|
|
|
(16,311
|
)
|
|
Activity during the period
|
|
||
Amounts reclassified from accumulated other comprehensive loss
|
226
|
|
|
Net current-period other comprehensive loss
|
226
|
|
|
Balance at June 30, 2019
|
$
|
(16,085
|
)
|
(1)
|
As disclosed in Note 2—Summary of Significant Accounting Policies, Risks and Uncertainties, we adopted ASU No. 2018-02 as of June 30, 2019. The standard permits the reclassification of certain income tax effects of the Tax Reform Act from Accumulated Other Comprehensive Income (Loss) to Retained Earnings.
|
|
Nine Months Ended June 30, 2019
|
||||||||||
(in thousands)
|
Unrealized
Appreciation
on Equity
Securities
|
|
Defined
Benefit
Pension Plan
|
|
Total
|
||||||
Balance at September 30, 2018
|
$
|
29,071
|
|
|
$
|
(12,521
|
)
|
|
$
|
16,550
|
|
Adoption of ASU No. 2016-01 (1)
|
(29,071
|
)
|
|
—
|
|
|
(29,071
|
)
|
|||
Adoption of ASU No. 2018-02 (2)
|
—
|
|
|
(4,239
|
)
|
|
(4,239
|
)
|
|||
|
—
|
|
|
(16,760
|
)
|
|
(16,760
|
)
|
|||
Activity during the period
|
|
|
|
|
|
||||||
Amounts reclassified from accumulated other comprehensive loss
|
—
|
|
|
675
|
|
|
675
|
|
|||
Net current-period other comprehensive loss
|
—
|
|
|
675
|
|
|
675
|
|
|||
Balance at June 30, 2019
|
$
|
—
|
|
|
$
|
(16,085
|
)
|
|
$
|
(16,085
|
)
|
(1)
|
As disclosed in Note 2—Summary of Significant Accounting Policies, Risks and Uncertainties, we adopted ASU No. 2016-01 on October 1, 2018. The transition provisions enforced upon adoption require any unrealized gains or losses as of October 1, 2018 to be recognized in the beginning balance of equity.
|
(2)
|
As disclosed in Note 2—Summary of Significant Accounting Policies, Risks and Uncertainties, we adopted ASU No. 2018-02 as of June 30, 2019. The standard permits the reclassification of certain income tax effects of the Tax Reform Act from Accumulated Other Comprehensive Income (Loss) to Retained Earnings.
|
|
Reclassified from
Accumulated Other
Comprehensive
Income (Loss)
|
|
Reclassified from
Accumulated Other
Comprehensive
Income (Loss)
|
|
Affected Line
Item in the Consolidated
Statements of Operations
|
||||||||||||
|
Three Months Ended
June 30, |
|
Nine Months Ended
June 30, |
|
|||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|||||||||
Amortization of net actuarial loss on defined benefit pension plan
|
$
|
(291
|
)
|
|
$
|
(461
|
)
|
|
$
|
(874
|
)
|
|
$
|
(1,382
|
)
|
|
Other income (expense)
|
|
65
|
|
|
124
|
|
|
199
|
|
|
397
|
|
|
Income tax provision
|
||||
Total reclassifications for the period
|
$
|
(226
|
)
|
|
$
|
(337
|
)
|
|
$
|
(675
|
)
|
|
$
|
(985
|
)
|
|
Net of tax
|
(in thousands)
|
June 30, 2019
|
|
October 1, 2018
|
||||
Contract assets
|
$
|
1,551
|
|
|
$
|
2,600
|
|
(in thousands)
|
June 30, 2019
|
||
Contract liabilities balance at October 1, 2018
|
$
|
30,032
|
|
Payment received/accrued and deferred
|
21,656
|
|
|
Revenue recognized during the period
|
(30,903
|
)
|
|
Contract liabilities balance at June 30, 2019
|
$
|
20,785
|
|
|
Three Months Ended
June 30, |
|
Nine Months Ended
June 30, |
||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Compensation expense
|
|
|
|
|
|
|
|
||||||||
Stock options
|
$
|
719
|
|
|
$
|
1,815
|
|
|
$
|
3,073
|
|
|
$
|
5,887
|
|
Restricted stock
|
6,771
|
|
|
6,111
|
|
|
19,374
|
|
|
17,585
|
|
||||
Performance share units
|
1,388
|
|
|
—
|
|
|
3,020
|
|
|
—
|
|
||||
|
$
|
8,878
|
|
|
$
|
7,926
|
|
|
$
|
25,467
|
|
|
$
|
23,472
|
|
|
Three Months Ended June 30, 2019
|
|||||||||||
(in thousands, except per share amounts and years)
|
Shares
|
|
Weighted
Average
Exercise
Price
|
|
Weighted
Average
Remaining
Contractual
Term in Years
|
|
Aggregate
Intrinsic
Value
|
|||||
Outstanding at April 1, 2019
|
3,292
|
|
|
$
|
60.77
|
|
|
|
|
|
||
Exercised
|
(15
|
)
|
|
42.67
|
|
|
|
|
|
|||
Forfeited/Expired
|
(14
|
)
|
|
62.24
|
|
|
|
|
|
|||
Outstanding at June 30, 2019
|
3,263
|
|
|
$
|
60.85
|
|
|
5.42
|
|
$
|
3,158
|
|
Vested and expected to vest at June 30, 2019
|
3,263
|
|
|
$
|
60.85
|
|
|
5.42
|
|
$
|
3,158
|
|
Exercisable at June 30, 2019
|
2,505
|
|
|
$
|
60.37
|
|
|
4.69
|
|
$
|
3,158
|
|
|
Nine Months Ended
June 30, 2019 |
|||||
(in thousands, except per share amounts)
|
Shares
|
|
Weighted
Average
Exercise
Price
|
|||
Outstanding at October 1, 2018
|
3,499
|
|
|
$
|
58.62
|
|
Exercised
|
(213
|
)
|
|
24.21
|
|
|
Forfeited
|
(23
|
)
|
|
60.77
|
|
|
Outstanding at June 30, 2019
|
3,263
|
|
|
$
|
60.85
|
|
|
Nine Months Ended
June 30, 2019 |
|||||
(in thousands, except per share amounts)
|
Shares
|
|
Weighted Average
Grant Date Fair
Value per Share
|
|||
Outstanding at October 1, 2018
|
1,001
|
|
|
$
|
63.74
|
|
Granted
|
475
|
|
|
58.45
|
|
|
Vested (1)
|
(369
|
)
|
|
64.32
|
|
|
Forfeited
|
(17
|
)
|
|
61.01
|
|
|
Outstanding at June 30, 2019
|
1,090
|
|
|
$
|
61.28
|
|
(1)
|
The number of restricted stock awards vested includes shares that we withheld on behalf of our employees to satisfy the statutory tax withholding requirements.
|
|
Nine Months Ended
June 30, 2019 |
|||||
(in thousands, except per share amounts)
|
Shares
|
|
Weighted Average
Grant Date Fair
Value per Share
|
|||
Outstanding at October 1, 2018
|
—
|
|
|
$
|
—
|
|
Granted
|
145
|
|
|
62.66
|
|
|
Outstanding at June 30, 2019
|
145
|
|
|
$
|
62.66
|
|
|
Three Months Ended
June 30, |
|
Nine Months Ended
June 30, |
||||||||||||
(in thousands, except per share amounts)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Numerator:
|
|
|
|
|
|
|
|
||||||||
Income (loss) from continuing operations
|
$
|
(154,621
|
)
|
|
$
|
(8,174
|
)
|
|
$
|
(74,400
|
)
|
|
$
|
490,835
|
|
Income (loss) from discontinued operations
|
(62
|
)
|
|
166
|
|
|
(433
|
)
|
|
(10,616
|
)
|
||||
Net income (loss)
|
(154,683
|
)
|
|
(8,008
|
)
|
|
(74,833
|
)
|
|
480,219
|
|
||||
Adjustment for basic earnings per share
|
|
|
|
|
|
|
|
||||||||
Earnings allocated to unvested shareholders
|
(772
|
)
|
|
(717
|
)
|
|
(2,332
|
)
|
|
(4,241
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Numerator for basic earnings (loss) per share:
|
|
|
|
|
|
|
|
||||||||
From continuing operations
|
(155,393
|
)
|
|
(8,891
|
)
|
|
(76,732
|
)
|
|
486,594
|
|
||||
From discontinued operations
|
(62
|
)
|
|
166
|
|
|
(433
|
)
|
|
(10,616
|
)
|
||||
|
(155,455
|
)
|
|
(8,725
|
)
|
|
(77,165
|
)
|
|
475,978
|
|
||||
Adjustment for diluted earnings (loss) per share:
|
|
|
|
|
|
|
|
||||||||
Effect of reallocating undistributed earnings of unvested shareholders
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Numerator for diluted earnings (loss) per share:
|
|
|
|
|
|
|
|
||||||||
From continuing operations
|
(155,393
|
)
|
|
(8,891
|
)
|
|
(76,732
|
)
|
|
486,604
|
|
||||
From discontinued operations
|
(62
|
)
|
|
166
|
|
|
(433
|
)
|
|
(10,616
|
)
|
||||
|
$
|
(155,455
|
)
|
|
$
|
(8,725
|
)
|
|
$
|
(77,165
|
)
|
|
$
|
475,988
|
|
Denominator:
|
|
|
|
|
|
|
|
||||||||
Denominator for basic earnings (loss) per share - weighted-average shares
|
109,425
|
|
|
108,905
|
|
|
109,324
|
|
|
108,818
|
|
||||
Effect of dilutive shares from stock options, restricted stock and performance share units
|
—
|
|
|
—
|
|
|
—
|
|
|
520
|
|
||||
Denominator for diluted earnings (loss) per share - adjusted weighted-average shares
|
109,425
|
|
|
108,905
|
|
|
109,324
|
|
|
109,338
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Basic earnings (loss) per common share:
|
|
|
|
|
|
|
|
||||||||
Income (loss) from continuing operations
|
$
|
(1.42
|
)
|
|
$
|
(0.08
|
)
|
|
$
|
(0.71
|
)
|
|
$
|
4.47
|
|
Loss from discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.10
|
)
|
||||
Net income (loss)
|
$
|
(1.42
|
)
|
|
$
|
(0.08
|
)
|
|
$
|
(0.71
|
)
|
|
$
|
4.37
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings (loss) per common share:
|
|
|
|
|
|
|
|
||||||||
Income (loss) from continuing operations
|
$
|
(1.42
|
)
|
|
$
|
(0.08
|
)
|
|
$
|
(0.71
|
)
|
|
$
|
4.45
|
|
Loss from discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.10
|
)
|
||||
Net income (loss)
|
$
|
(1.42
|
)
|
|
$
|
(0.08
|
)
|
|
$
|
(0.71
|
)
|
|
$
|
4.35
|
|
|
Three Months Ended
June 30, |
|
Nine Months Ended
June 30, |
||||||||||||
(in thousands, except per share amounts)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Shares excluded from calculation of diluted earnings (loss) per share
|
2,753
|
|
|
929
|
|
|
2,768
|
|
|
1,585
|
|
||||
Weighted-average price per share
|
$
|
64.22
|
|
|
$
|
75.56
|
|
|
$
|
64.21
|
|
|
$
|
68.51
|
|
•
|
Level 1 — Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.
|
•
|
Level 2 — Observable inputs, other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets; quoted prices for similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.
|
•
|
Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.
|
|
Three Months Ended
June 30, |
|
Nine Months Ended
June 30, |
||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net liabilities at beginning of period
|
$
|
9,015
|
|
|
$
|
15,702
|
|
|
$
|
11,160
|
|
|
$
|
14,879
|
|
Additions
|
—
|
|
|
—
|
|
|
673
|
|
|
—
|
|
||||
Total gains or losses:
|
|
|
|
|
|
|
|
||||||||
Included in earnings
|
540
|
|
|
(175
|
)
|
|
(2,278
|
)
|
|
5,148
|
|
||||
Settlements (1)
|
—
|
|
|
(6,125
|
)
|
|
—
|
|
|
(10,625
|
)
|
||||
Net liabilities at end of period
|
$
|
9,555
|
|
|
$
|
9,402
|
|
|
$
|
9,555
|
|
|
$
|
9,402
|
|
(1)
|
Settlements represent earnout payments that have been paid or earned during the period.
|
(in thousands)
|
Fair Value
|
|
Valuation Technique
|
|
Unobservable Input
|
|
Percentage
|
|||
Contingent Consideration
|
$
|
9,555
|
|
|
Monte Carlo simulation
|
|
Discount rate
|
|
11.0
|
%
|
|
|
|
|
|
Revenue volatility
|
|
13.0
|
%
|
||
|
|
|
|
|
Risk free rate
|
|
2.0
|
%
|
(in millions)
|
June 30, 2019
|
|
September 30, 2018
|
||||
Carrying value of long-term fixed-rate debt
|
$
|
491.7
|
|
|
$
|
494.0
|
|
Fair value of long-term fixed-rate debt
|
$
|
530.0
|
|
|
$
|
509.3
|
|
(in thousands)
|
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Estimated
Fair
Value
|
||||||||
Equity Securities:
|
|
|
|
|
|
|
|
||||||||
June 30, 2019
|
$
|
38,473
|
|
|
$
|
14,865
|
|
|
$
|
(21,112
|
)
|
|
$
|
32,226
|
|
September 30, 2018
|
$
|
38,473
|
|
|
$
|
44,023
|
|
|
$
|
—
|
|
|
$
|
82,496
|
|
|
Three Months Ended
June 30, |
|
Nine Months Ended
June 30, |
||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Interest cost
|
$
|
1,097
|
|
|
$
|
1,013
|
|
|
$
|
3,291
|
|
|
$
|
3,041
|
|
Expected return on plan assets
|
(1,386
|
)
|
|
(1,386
|
)
|
|
(4,158
|
)
|
|
(4,158
|
)
|
||||
Recognized net actuarial loss
|
291
|
|
|
461
|
|
|
874
|
|
|
1,382
|
|
||||
Settlement
|
1,548
|
|
|
—
|
|
|
1,548
|
|
|
—
|
|
||||
Net pension expense
|
$
|
1,550
|
|
|
$
|
88
|
|
|
$
|
1,555
|
|
|
$
|
265
|
|
•
|
Revenues from external and internal customers
|
•
|
Direct operating costs
|
•
|
Depreciation and
|
•
|
Allocated general and administrative costs
|
•
|
Asset impairment charges
|
|
Three Months Ended June 30, 2019
|
||||||||||||||||||||||||||
(in thousands)
|
U.S. Land (1)
|
|
Offshore
|
|
International
Land
|
|
H&P
Technologies
|
|
Other
|
|
Eliminations
|
|
Total
|
||||||||||||||
External Sales
|
$
|
593,297
|
|
|
$
|
37,674
|
|
|
$
|
46,283
|
|
|
$
|
7,534
|
|
|
$
|
3,186
|
|
|
$
|
—
|
|
|
$
|
687,974
|
|
Intersegment
|
—
|
|
|
—
|
|
|
—
|
|
|
1,842
|
|
|
8
|
|
|
$
|
(1,850
|
)
|
|
—
|
|
||||||
Total Sales
|
593,297
|
|
|
37,674
|
|
|
46,283
|
|
|
9,376
|
|
|
3,194
|
|
|
(1,850
|
)
|
|
687,974
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Segment Operating Income (Loss)
|
(138,205
|
)
|
|
5,078
|
|
|
(5,023
|
)
|
|
(8,810
|
)
|
|
(731
|
)
|
|
—
|
|
|
(147,691
|
)
|
|
Three Months Ended June 30, 2018
|
||||||||||||||||||||||||||
(in thousands)
|
U.S. Land
|
|
Offshore
|
|
International
Land
|
|
H&P
Technologies (2)
|
|
Other (2)
|
|
Eliminations
|
|
Total
|
||||||||||||||
External Sales
|
$
|
536,582
|
|
|
$
|
37,669
|
|
|
$
|
63,297
|
|
|
$
|
7,693
|
|
|
$
|
3,631
|
|
|
$
|
—
|
|
|
$
|
648,872
|
|
Intersegment
|
599
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
303
|
|
|
(902
|
)
|
|
—
|
|
|||||||
Total Sales
|
537,181
|
|
|
37,669
|
|
|
63,297
|
|
|
7,693
|
|
|
3,934
|
|
|
(902
|
)
|
|
648,872
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Segment Operating Income (Loss)
|
34,339
|
|
|
3,780
|
|
|
4,332
|
|
|
(9,052
|
)
|
|
1,826
|
|
|
—
|
|
|
35,225
|
|
(1)
|
Includes $9.1 million of technology related sales, of which $1.8 million is fulfilled by the H&P Technologies business segment.
|
(2)
|
Prior period information has been recast to reflect the change in operating segments.
|
|
Nine Months Ended June 30, 2019
|
||||||||||||||||||||||||||
(in thousands)
|
U.S. Land (1)
|
|
Offshore
|
|
International
Land
|
|
H&P
Technologies
|
|
Other
|
|
Eliminations
|
|
Total
|
||||||||||||||
External Sales
|
$
|
1,842,054
|
|
|
$
|
109,167
|
|
|
$
|
163,378
|
|
|
$
|
25,199
|
|
|
$
|
9,642
|
|
|
$
|
—
|
|
|
$
|
2,149,440
|
|
Intersegment
|
—
|
|
|
—
|
|
|
—
|
|
|
4,154
|
|
|
23
|
|
|
(4,177
|
)
|
|
—
|
|
|||||||
Total Sales
|
1,842,054
|
|
|
109,167
|
|
|
163,378
|
|
|
29,353
|
|
|
9,665
|
|
|
(4,177
|
)
|
|
2,149,440
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Segment Operating Income (Loss)
|
47,602
|
|
|
16,778
|
|
|
9,575
|
|
|
(27,088
|
)
|
|
1,988
|
|
|
—
|
|
|
48,855
|
|
|
Nine Months Ended June 30, 2018
|
||||||||||||||||||||||||||
(in thousands)
|
U.S. Land
|
|
Offshore
|
|
International
Land
|
|
H&P
Technologies (2)
|
|
Other (2)
|
|
Eliminations
|
|
Total
|
||||||||||||||
External Sales
|
$
|
1,480,951
|
|
|
$
|
104,018
|
|
|
$
|
178,970
|
|
|
$
|
16,842
|
|
|
$
|
9,662
|
|
|
$
|
—
|
|
|
$
|
1,790,443
|
|
Intersegment
|
634
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
775
|
|
|
(1,409
|
)
|
|
—
|
|
|||||||
Total Sales
|
1,481,585
|
|
|
104,018
|
|
|
178,970
|
|
|
16,842
|
|
|
10,437
|
|
|
(1,409
|
)
|
|
1,790,443
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Segment Operating Income (Loss)
|
86,159
|
|
|
17,954
|
|
|
7,171
|
|
|
(26,400
|
)
|
|
4,842
|
|
|
—
|
|
|
89,726
|
|
(1)
|
Includes $20.9 million of technology related sales, of which $4.2 million is fulfilled by the H&P Technologies business segment.
|
(2)
|
Prior period information has been recast to reflect the change in operating segments.
|
|
Three Months Ended
June 30, |
|
Nine Months Ended
June 30, |
||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
|
As adjusted
|
|
|
|
As adjusted
|
||||||||
Segment operating income (loss)
|
$
|
(147,691
|
)
|
|
$
|
35,225
|
|
|
$
|
48,855
|
|
|
$
|
89,726
|
|
Gain on sale of assets
|
9,960
|
|
|
4,313
|
|
|
27,050
|
|
|
15,133
|
|
||||
Corporate selling, general and administrative costs and corporate depreciation
|
(30,143
|
)
|
|
(33,232
|
)
|
|
(94,344
|
)
|
|
(96,108
|
)
|
||||
Operating income (loss) from continuing operations
|
(167,874
|
)
|
|
6,306
|
|
|
(18,439
|
)
|
|
8,751
|
|
||||
Other income (expense)
|
|
|
|
|
|
|
|
||||||||
Interest and dividend income
|
2,349
|
|
|
2,109
|
|
|
6,861
|
|
|
5,680
|
|
||||
Interest expense
|
(6,257
|
)
|
|
(5,993
|
)
|
|
(17,145
|
)
|
|
(17,794
|
)
|
||||
Loss on investment securities
|
(13,271
|
)
|
|
—
|
|
|
(50,228
|
)
|
|
—
|
|
||||
Other
|
(1,599
|
)
|
|
(61
|
)
|
|
(1,051
|
)
|
|
170
|
|
||||
Total unallocated amounts
|
(18,778
|
)
|
|
(3,945
|
)
|
|
(61,563
|
)
|
|
(11,944
|
)
|
||||
Income (loss) from continuing operations before income taxes
|
$
|
(186,652
|
)
|
|
$
|
2,361
|
|
|
$
|
(80,002
|
)
|
|
$
|
(3,193
|
)
|
(in thousands)
|
June 30,
2019 |
|
September 30,
2018 |
||||
Total assets
|
|
|
|
||||
U.S. Land
|
$
|
4,742,605
|
|
|
$
|
5,012,378
|
|
Offshore
|
100,490
|
|
|
105,439
|
|
||
International Land
|
318,195
|
|
|
362,033
|
|
||
H&P Technologies
|
149,712
|
|
|
146,957
|
|
||
Other
|
31,232
|
|
|
29,525
|
|
||
|
5,342,234
|
|
|
5,656,332
|
|
||
Investments and corporate operations
|
555,145
|
|
|
558,535
|
|
||
Total assets from continuing operations
|
5,897,379
|
|
|
6,214,867
|
|
||
Discontinued operations
|
—
|
|
|
—
|
|
||
|
$
|
5,897,379
|
|
|
$
|
6,214,867
|
|
|
Three Months Ended
June 30, |
|
Nine Months Ended
June 30, |
||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Operating revenues
|
|
|
|
|
|
|
|
||||||||
United States
|
641,270
|
|
|
585,126
|
|
|
1,984,695
|
|
|
1,610,319
|
|
||||
Argentina
|
40,977
|
|
|
50,272
|
|
|
123,666
|
|
|
148,901
|
|
||||
Colombia
|
3,451
|
|
|
10,639
|
|
|
28,075
|
|
|
22,872
|
|
||||
Other Foreign
|
$
|
2,276
|
|
|
$
|
2,835
|
|
|
$
|
13,004
|
|
|
$
|
8,351
|
|
Total
|
$
|
687,974
|
|
|
$
|
648,872
|
|
|
$
|
2,149,440
|
|
|
$
|
1,790,443
|
|
|
June 30, 2019
|
||||||||||||||||||
(in thousands)
|
Helmerich & Payne, Inc.
(Guarantor)
|
|
Helmerich & Payne
International Drilling Co.
(Issuer)
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Total
Consolidated
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
94,354
|
|
|
$
|
224,838
|
|
|
$
|
15,583
|
|
|
$
|
—
|
|
|
$
|
334,775
|
|
Short-term investments
|
—
|
|
|
44,071
|
|
|
1,677
|
|
|
—
|
|
|
45,748
|
|
|||||
Accounts receivable, net
|
(291
|
)
|
|
462,885
|
|
|
46,582
|
|
|
(993
|
)
|
|
508,183
|
|
|||||
Inventories of materials and supplies, net
|
—
|
|
|
118,530
|
|
|
31,596
|
|
|
—
|
|
|
150,126
|
|
|||||
Prepaid expenses and other
|
14,414
|
|
|
19,160
|
|
|
43,684
|
|
|
148
|
|
|
77,406
|
|
|||||
Total current assets
|
108,477
|
|
|
869,484
|
|
|
139,122
|
|
|
(845
|
)
|
|
1,116,238
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Investments
|
15,774
|
|
|
32,226
|
|
|
291
|
|
|
—
|
|
|
48,291
|
|
|||||
Property, plant and equipment, net
|
45,450
|
|
|
4,270,440
|
|
|
267,783
|
|
|
—
|
|
|
4,583,673
|
|
|||||
Intercompany receivables
|
299,182
|
|
|
1,959,592
|
|
|
522,577
|
|
|
(2,781,351
|
)
|
|
—
|
|
|||||
Goodwill
|
—
|
|
|
—
|
|
|
67,902
|
|
|
—
|
|
|
67,902
|
|
|||||
Intangible assets, net
|
—
|
|
|
—
|
|
|
69,093
|
|
|
—
|
|
|
69,093
|
|
|||||
Other assets
|
318
|
|
|
6,471
|
|
|
5,393
|
|
|
—
|
|
|
12,182
|
|
|||||
Investment in subsidiaries
|
5,926,270
|
|
|
277,550
|
|
|
—
|
|
|
(6,203,820
|
)
|
|
—
|
|
|||||
Total assets
|
$
|
6,395,471
|
|
|
$
|
7,415,763
|
|
|
$
|
1,072,161
|
|
|
$
|
(8,986,016
|
)
|
|
$
|
5,897,379
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities and Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts payable
|
$
|
84,703
|
|
|
$
|
45,946
|
|
|
$
|
3,789
|
|
|
$
|
(361
|
)
|
|
$
|
134,077
|
|
Accrued liabilities
|
25,190
|
|
|
205,630
|
|
|
26,113
|
|
|
(484
|
)
|
|
256,449
|
|
|||||
Total current liabilities
|
109,893
|
|
|
251,576
|
|
|
29,902
|
|
|
(845
|
)
|
|
390,526
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Noncurrent liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Long-term debt, net
|
482,962
|
|
|
8,689
|
|
|
—
|
|
|
—
|
|
|
491,651
|
|
|||||
Deferred income taxes
|
(4,273
|
)
|
|
783,109
|
|
|
48,191
|
|
|
—
|
|
|
827,027
|
|
|||||
Intercompany payables
|
1,690,102
|
|
|
259,027
|
|
|
832,122
|
|
|
(2,781,251
|
)
|
|
—
|
|
|||||
Other
|
21,733
|
|
|
47,537
|
|
|
9,220
|
|
|
—
|
|
|
78,490
|
|
|||||
Noncurrent liabilities - discontinued operations
|
—
|
|
|
—
|
|
|
14,631
|
|
|
—
|
|
|
14,631
|
|
|||||
Total noncurrent liabilities
|
2,190,524
|
|
|
1,098,362
|
|
|
904,164
|
|
|
(2,781,251
|
)
|
|
1,411,799
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Shareholders’ equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Common stock
|
11,208
|
|
|
100
|
|
|
—
|
|
|
(100
|
)
|
|
11,208
|
|
|||||
Additional paid-in capital
|
501,585
|
|
|
52,437
|
|
|
1,040
|
|
|
(53,477
|
)
|
|
501,585
|
|
|||||
Retained earnings
|
3,750,785
|
|
|
6,025,212
|
|
|
137,055
|
|
|
(6,162,267
|
)
|
|
3,750,785
|
|
|||||
Accumulated other comprehensive income (loss)
|
(16,085
|
)
|
|
(11,924
|
)
|
|
—
|
|
|
11,924
|
|
|
(16,085
|
)
|
|||||
Treasury stock, at cost
|
(152,439
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(152,439
|
)
|
|||||
Total shareholders’ equity
|
4,095,054
|
|
|
6,065,825
|
|
|
138,095
|
|
|
(6,203,920
|
)
|
|
4,095,054
|
|
|||||
Total liabilities and shareholders’ equity
|
$
|
6,395,471
|
|
|
$
|
7,415,763
|
|
|
$
|
1,072,161
|
|
|
$
|
(8,986,016
|
)
|
|
$
|
5,897,379
|
|
|
September 30, 2018
|
||||||||||||||||||
(in thousands)
|
Helmerich & Payne, Inc.
(Guarantor)
|
|
Helmerich & Payne
International Drilling Co.
(Issuer)
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Total
Consolidated
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
273,214
|
|
|
$
|
11,141
|
|
|
$
|
—
|
|
|
$
|
284,355
|
|
Short-term investments
|
—
|
|
|
41,461
|
|
|
—
|
|
|
—
|
|
|
41,461
|
|
|||||
Accounts receivable, net
|
(29
|
)
|
|
499,644
|
|
|
65,859
|
|
|
(272
|
)
|
|
565,202
|
|
|||||
Inventories of materials and supplies, net
|
—
|
|
|
127,154
|
|
|
30,980
|
|
|
—
|
|
|
158,134
|
|
|||||
Prepaid expenses and other
|
20,783
|
|
|
10,649
|
|
|
35,539
|
|
|
(573
|
)
|
|
66,398
|
|
|||||
Total current assets
|
20,754
|
|
|
952,122
|
|
|
143,519
|
|
|
(845
|
)
|
|
1,115,550
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Investments
|
16,200
|
|
|
82,496
|
|
|
—
|
|
|
—
|
|
|
98,696
|
|
|||||
Property, plant and equipment, net
|
46,859
|
|
|
4,515,077
|
|
|
295,446
|
|
|
—
|
|
|
4,857,382
|
|
|||||
Intercompany receivables
|
161,532
|
|
|
2,024,652
|
|
|
294,206
|
|
|
(2,480,390
|
)
|
|
—
|
|
|||||
Goodwill
|
—
|
|
|
—
|
|
|
64,777
|
|
|
—
|
|
|
64,777
|
|
|||||
Intangible assets, net
|
—
|
|
|
—
|
|
|
73,207
|
|
|
—
|
|
|
73,207
|
|
|||||
Other assets
|
268
|
|
|
907
|
|
|
4,080
|
|
|
—
|
|
|
5,255
|
|
|||||
Investment in subsidiaries
|
5,981,197
|
|
|
172,513
|
|
|
—
|
|
|
(6,153,710
|
)
|
|
—
|
|
|||||
Total assets
|
$
|
6,226,810
|
|
|
$
|
7,747,767
|
|
|
$
|
875,235
|
|
|
$
|
(8,634,945
|
)
|
|
$
|
6,214,867
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities and Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts payable
|
$
|
83,819
|
|
|
$
|
43,626
|
|
|
$
|
5,483
|
|
|
$
|
(264
|
)
|
|
$
|
132,664
|
|
Accrued liabilities
|
43,449
|
|
|
164,542
|
|
|
37,093
|
|
|
(580
|
)
|
|
244,504
|
|
|||||
Total current liabilities
|
127,268
|
|
|
208,168
|
|
|
42,576
|
|
|
(844
|
)
|
|
377,168
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Noncurrent liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Long-term debt, net
|
—
|
|
|
493,968
|
|
|
—
|
|
|
—
|
|
|
493,968
|
|
|||||
Deferred income taxes
|
(7,112
|
)
|
|
834,714
|
|
|
25,534
|
|
|
—
|
|
|
853,136
|
|
|||||
Intercompany payables
|
1,701,694
|
|
|
178,759
|
|
|
599,837
|
|
|
(2,480,290
|
)
|
|
—
|
|
|||||
Other
|
22,225
|
|
|
48,836
|
|
|
22,545
|
|
|
—
|
|
|
93,606
|
|
|||||
Noncurrent liabilities - discontinued operations
|
—
|
|
|
—
|
|
|
14,254
|
|
|
—
|
|
|
14,254
|
|
|||||
Total noncurrent liabilities
|
1,716,807
|
|
|
1,556,277
|
|
|
662,170
|
|
|
(2,480,290
|
)
|
|
1,454,964
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Shareholders’ equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Common stock
|
11,201
|
|
|
100
|
|
|
—
|
|
|
(100
|
)
|
|
11,201
|
|
|||||
Additional paid-in capital
|
500,393
|
|
|
52,437
|
|
|
1,040
|
|
|
(53,477
|
)
|
|
500,393
|
|
|||||
Retained earnings
|
4,027,779
|
|
|
5,910,955
|
|
|
169,449
|
|
|
(6,080,404
|
)
|
|
4,027,779
|
|
|||||
Accumulated other comprehensive income
|
16,550
|
|
|
19,830
|
|
|
—
|
|
|
(19,830
|
)
|
|
16,550
|
|
|||||
Treasury stock, at cost
|
(173,188
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(173,188
|
)
|
|||||
Total shareholders’ equity
|
4,382,735
|
|
|
5,983,322
|
|
|
170,489
|
|
|
(6,153,811
|
)
|
|
4,382,735
|
|
|||||
Total liabilities and shareholders’ equity
|
$
|
6,226,810
|
|
|
$
|
7,747,767
|
|
|
$
|
875,235
|
|
|
$
|
(8,634,945
|
)
|
|
$
|
6,214,867
|
|
|
Three Months Ended June 30, 2019
|
||||||||||||||||||
(in thousands)
|
Helmerich & Payne, Inc.
(Guarantor)
|
|
Helmerich & Payne
International Drilling Co.
(Issuer)
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Total
Consolidated
|
||||||||||
Operating revenue
|
$
|
—
|
|
|
$
|
633,284
|
|
|
$
|
58,870
|
|
|
$
|
(4,180
|
)
|
|
$
|
687,974
|
|
Operating costs and other
|
2,942
|
|
|
780,880
|
|
|
76,383
|
|
|
(4,357
|
)
|
|
855,848
|
|
|||||
Operating loss from continuing operations
|
(2,942
|
)
|
|
(147,596
|
)
|
|
(17,513
|
)
|
|
177
|
|
|
(167,874
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Other income (expense), net
|
(35
|
)
|
|
(12,639
|
)
|
|
330
|
|
|
(177
|
)
|
|
(12,521
|
)
|
|||||
Interest expense
|
(6,083
|
)
|
|
(132
|
)
|
|
(42
|
)
|
|
—
|
|
|
(6,257
|
)
|
|||||
Equity in net loss of subsidiaries
|
(145,440
|
)
|
|
(3,417
|
)
|
|
—
|
|
|
148,857
|
|
|
—
|
|
|||||
Loss from continuing operations before income taxes
|
(154,500
|
)
|
|
(163,784
|
)
|
|
(17,225
|
)
|
|
148,857
|
|
|
(186,652
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Income tax (benefit) provision
|
183
|
|
|
(43,271
|
)
|
|
11,057
|
|
|
—
|
|
|
(32,031
|
)
|
|||||
Loss from continuing operations
|
(154,683
|
)
|
|
(120,513
|
)
|
|
(28,282
|
)
|
|
148,857
|
|
|
(154,621
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from discontinued operations before income taxes
|
—
|
|
|
—
|
|
|
7,244
|
|
|
—
|
|
|
7,244
|
|
|||||
Income tax provision
|
—
|
|
|
—
|
|
|
7,306
|
|
|
—
|
|
|
7,306
|
|
|||||
Loss from discontinued operations
|
—
|
|
|
—
|
|
|
(62
|
)
|
|
—
|
|
|
(62
|
)
|
|||||
Net loss
|
$
|
(154,683
|
)
|
|
$
|
(120,513
|
)
|
|
$
|
(28,344
|
)
|
|
$
|
148,857
|
|
|
$
|
(154,683
|
)
|
|
Three Months Ended June 30, 2018 as adjusted (Note 2)
|
||||||||||||||||||
(in thousands)
|
Helmerich & Payne, Inc.
(Guarantor)
|
|
Helmerich & Payne
International Drilling Co.
(Issuer)
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Total
Consolidated
|
||||||||||
Operating revenue
|
$
|
—
|
|
|
$
|
574,252
|
|
|
$
|
74,647
|
|
|
$
|
(27
|
)
|
|
$
|
648,872
|
|
Operating costs and other
|
4,151
|
|
|
557,994
|
|
|
80,639
|
|
|
(218
|
)
|
|
642,566
|
|
|||||
Operating income (loss) from continuing operations
|
(4,151
|
)
|
|
16,258
|
|
|
(5,992
|
)
|
|
191
|
|
|
6,306
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Other income (expense), net
|
107
|
|
|
1,854
|
|
|
278
|
|
|
(191
|
)
|
|
2,048
|
|
|||||
Interest expense
|
(108
|
)
|
|
(5,117
|
)
|
|
(768
|
)
|
|
—
|
|
|
(5,993
|
)
|
|||||
Equity in net loss of subsidiaries
|
(4,883
|
)
|
|
(2,093
|
)
|
|
—
|
|
|
6,976
|
|
|
—
|
|
|||||
Income (loss) from continuing operations before income taxes
|
(9,035
|
)
|
|
10,902
|
|
|
(6,482
|
)
|
|
6,976
|
|
|
2,361
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Income tax provision (benefit)
|
(1,027
|
)
|
|
17,384
|
|
|
(5,822
|
)
|
|
—
|
|
|
10,535
|
|
|||||
Loss from continuing operations
|
(8,008
|
)
|
|
(6,482
|
)
|
|
(660
|
)
|
|
6,976
|
|
|
(8,174
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from discontinued operations before income taxes
|
—
|
|
|
—
|
|
|
8,383
|
|
|
—
|
|
|
8,383
|
|
|||||
Income tax provision
|
—
|
|
|
—
|
|
|
8,217
|
|
|
—
|
|
|
8,217
|
|
|||||
Income from discontinued operations
|
—
|
|
|
—
|
|
|
166
|
|
|
—
|
|
|
166
|
|
|||||
Net loss
|
$
|
(8,008
|
)
|
|
$
|
(6,482
|
)
|
|
$
|
(494
|
)
|
|
$
|
6,976
|
|
|
$
|
(8,008
|
)
|
|
Nine Months Ended June 30, 2019
|
||||||||||||||||||
(in thousands)
|
Helmerich & Payne, Inc.
(Guarantor)
|
|
Helmerich & Payne
International Drilling Co.
(Issuer)
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Total
Consolidated
|
||||||||||
Operating revenue
|
$
|
—
|
|
|
$
|
1,951,221
|
|
|
$
|
202,447
|
|
|
$
|
(4,228
|
)
|
|
$
|
2,149,440
|
|
Operating costs and other
|
8,526
|
|
|
1,937,425
|
|
|
226,824
|
|
|
(4,896
|
)
|
|
2,167,879
|
|
|||||
Operating income (loss) from continuing operations
|
(8,526
|
)
|
|
13,796
|
|
|
(24,377
|
)
|
|
668
|
|
|
(18,439
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Other income (expense), net
|
(77
|
)
|
|
(45,275
|
)
|
|
1,602
|
|
|
(668
|
)
|
|
(44,418
|
)
|
|||||
Interest income (expense)
|
(13,202
|
)
|
|
(4,844
|
)
|
|
901
|
|
|
—
|
|
|
(17,145
|
)
|
|||||
Equity in net income (loss) of subsidiaries
|
(55,331
|
)
|
|
6,254
|
|
|
—
|
|
|
49,077
|
|
|
—
|
|
|||||
Loss from continuing operations before income taxes
|
(77,136
|
)
|
|
(30,069
|
)
|
|
(21,874
|
)
|
|
49,077
|
|
|
(80,002
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Income tax (benefit) provision
|
(2,303
|
)
|
|
(11,884
|
)
|
|
8,585
|
|
|
—
|
|
|
(5,602
|
)
|
|||||
Loss from continuing operations
|
(74,833
|
)
|
|
(18,185
|
)
|
|
(30,459
|
)
|
|
49,077
|
|
|
(74,400
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from discontinued operations before income taxes
|
—
|
|
|
—
|
|
|
22,798
|
|
|
—
|
|
|
22,798
|
|
|||||
Income tax provision
|
—
|
|
|
—
|
|
|
23,231
|
|
|
—
|
|
|
23,231
|
|
|||||
Loss from discontinued operations
|
—
|
|
|
—
|
|
|
(433
|
)
|
|
—
|
|
|
(433
|
)
|
|||||
Net loss
|
$
|
(74,833
|
)
|
|
$
|
(18,185
|
)
|
|
$
|
(30,892
|
)
|
|
$
|
49,077
|
|
|
$
|
(74,833
|
)
|
|
Nine Months Ended June 30, 2018 as adjusted (Note 2)
|
||||||||||||||||||
(in thousands)
|
Helmerich & Payne, Inc.
(Guarantor)
|
|
Helmerich & Payne
International Drilling Co.
(Issuer)
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Total
Consolidated
|
||||||||||
Operating revenue
|
$
|
—
|
|
|
$
|
1,584,970
|
|
|
$
|
205,537
|
|
|
$
|
(64
|
)
|
|
$
|
1,790,443
|
|
Operating costs and other
|
12,360
|
|
|
1,542,815
|
|
|
227,186
|
|
|
(669
|
)
|
|
1,781,692
|
|
|||||
Operating income (loss) from continuing operations
|
(12,360
|
)
|
|
42,155
|
|
|
(21,649
|
)
|
|
605
|
|
|
8,751
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Other income, net
|
210
|
|
|
5,226
|
|
|
1,019
|
|
|
(605
|
)
|
|
5,850
|
|
|||||
Interest expense
|
(274
|
)
|
|
(15,368
|
)
|
|
(2,152
|
)
|
|
—
|
|
|
(17,794
|
)
|
|||||
Equity in net income of subsidiaries
|
494,574
|
|
|
3,191
|
|
|
—
|
|
|
(497,765
|
)
|
|
—
|
|
|||||
Income (loss) from continuing operations before income taxes
|
482,150
|
|
|
35,204
|
|
|
(22,782
|
)
|
|
(497,765
|
)
|
|
(3,193
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Income tax (benefit) provision
|
1,931
|
|
|
(459,571
|
)
|
|
(36,388
|
)
|
|
—
|
|
|
(494,028
|
)
|
|||||
Income from continuing operations
|
480,219
|
|
|
494,775
|
|
|
13,606
|
|
|
(497,765
|
)
|
|
490,835
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from discontinued operations before income taxes
|
—
|
|
|
—
|
|
|
9,127
|
|
|
—
|
|
|
9,127
|
|
|||||
Income tax provision
|
—
|
|
|
—
|
|
|
19,743
|
|
|
—
|
|
|
19,743
|
|
|||||
Loss from discontinued operations
|
—
|
|
|
—
|
|
|
(10,616
|
)
|
|
—
|
|
|
(10,616
|
)
|
|||||
Net income
|
$
|
480,219
|
|
|
$
|
494,775
|
|
|
$
|
2,990
|
|
|
$
|
(497,765
|
)
|
|
$
|
480,219
|
|
|
Three Months Ended June 30, 2019
|
||||||||||||||||||
(in thousands)
|
Helmerich & Payne, Inc.
(Guarantor)
|
|
Helmerich & Payne
International Drilling Co.
(Issuer)
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Total
Consolidated
|
||||||||||
Net loss
|
$
|
(154,683
|
)
|
|
$
|
(120,513
|
)
|
|
$
|
(28,344
|
)
|
|
$
|
148,857
|
|
|
$
|
(154,683
|
)
|
Other comprehensive income, net of income taxes:
|
|
|
|
|
|
|
|
|
|
||||||||||
Minimum pension liability adjustments, net
|
78
|
|
|
148
|
|
|
—
|
|
|
—
|
|
|
226
|
|
|||||
Other comprehensive income
|
78
|
|
|
148
|
|
|
—
|
|
|
—
|
|
|
226
|
|
|||||
Comprehensive loss
|
$
|
(154,605
|
)
|
|
$
|
(120,365
|
)
|
|
$
|
(28,344
|
)
|
|
$
|
148,857
|
|
|
$
|
(154,457
|
)
|
|
Three Months Ended June 30, 2018
|
||||||||||||||||||
(in thousands)
|
Helmerich & Payne, Inc.
(Guarantor)
|
|
Helmerich & Payne
International Drilling Co.
(Issuer)
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Total
Consolidated
|
||||||||||
Net loss
|
$
|
(8,008
|
)
|
|
$
|
(6,482
|
)
|
|
$
|
(494
|
)
|
|
$
|
6,976
|
|
|
$
|
(8,008
|
)
|
Other comprehensive income, net of income taxes:
|
|
|
|
|
|
|
|
|
|
||||||||||
Unrealized depreciation on securities, net
|
—
|
|
|
13,826
|
|
|
—
|
|
|
—
|
|
|
13,826
|
|
|||||
Minimum pension liability adjustments, net
|
101
|
|
|
236
|
|
|
—
|
|
|
—
|
|
|
337
|
|
|||||
Other comprehensive income
|
$
|
101
|
|
|
$
|
14,062
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
14,163
|
|
Comprehensive income (loss)
|
$
|
(7,907
|
)
|
|
$
|
7,580
|
|
|
$
|
(494
|
)
|
|
$
|
6,976
|
|
|
$
|
6,155
|
|
|
Nine Months Ended June 30, 2019
|
||||||||||||||||||
(in thousands)
|
Helmerich & Payne, Inc.
(Guarantor)
|
|
Helmerich & Payne
International Drilling Co.
(Issuer)
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Total
Consolidated
|
||||||||||
Net loss
|
$
|
(74,833
|
)
|
|
$
|
(18,185
|
)
|
|
$
|
(30,892
|
)
|
|
$
|
49,077
|
|
|
$
|
(74,833
|
)
|
Other comprehensive income, net of income taxes:
|
|
|
|
|
|
|
|
|
|
||||||||||
Minimum pension liability adjustments, net
|
233
|
|
|
442
|
|
|
—
|
|
|
—
|
|
|
675
|
|
|||||
Other comprehensive income
|
233
|
|
|
442
|
|
|
—
|
|
|
—
|
|
|
675
|
|
|||||
Comprehensive loss
|
$
|
(74,600
|
)
|
|
$
|
(17,743
|
)
|
|
$
|
(30,892
|
)
|
|
$
|
49,077
|
|
|
$
|
(74,158
|
)
|
|
Nine Months Ended June 30, 2018
|
||||||||||||||||||
(in thousands)
|
Helmerich & Payne, Inc.
(Guarantor)
|
|
Helmerich & Payne
International Drilling Co.
(Issuer)
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Total
Consolidated
|
||||||||||
Net income
|
$
|
480,219
|
|
|
$
|
494,775
|
|
|
$
|
2,990
|
|
|
$
|
(497,765
|
)
|
|
$
|
480,219
|
|
Other comprehensive income, net of income taxes:
|
|
|
|
|
|
|
|
|
|
||||||||||
Unrealized appreciation on securities, net
|
—
|
|
|
5,657
|
|
|
—
|
|
|
—
|
|
|
5,657
|
|
|||||
Minimum pension liability adjustments, net
|
295
|
|
|
690
|
|
|
—
|
|
|
—
|
|
|
985
|
|
|||||
Other comprehensive income
|
295
|
|
|
6,347
|
|
|
—
|
|
|
—
|
|
|
6,642
|
|
|||||
Comprehensive income
|
$
|
480,514
|
|
|
$
|
501,122
|
|
|
$
|
2,990
|
|
|
$
|
(497,765
|
)
|
|
$
|
486,861
|
|
|
Nine Months Ended June 30, 2019
|
||||||||||||||||||
(in thousands)
|
Helmerich
& Payne, Inc.
(Guarantor)
|
|
Helmerich & Payne
International
Drilling Co.
(Issuer)
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Total
Consolidated
|
||||||||||
Net cash provided by (used in) operating activities
|
$
|
(15,599
|
)
|
|
$
|
657,016
|
|
|
$
|
17,954
|
|
|
$
|
—
|
|
|
$
|
659,371
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
(7,355
|
)
|
|
(389,615
|
)
|
|
(6,600
|
)
|
|
—
|
|
|
(403,570
|
)
|
|||||
Purchase of short-term investments
|
—
|
|
|
(70,175
|
)
|
|
(1,677
|
)
|
|
—
|
|
|
(71,852
|
)
|
|||||
Payment for acquisition of business, net of cash acquired
|
(2,781
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,781
|
)
|
|||||
Proceeds from sale of short-term investments
|
—
|
|
|
68,015
|
|
|
—
|
|
|
—
|
|
|
68,015
|
|
|||||
Intercompany transfers
|
7,355
|
|
|
(7,355
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Proceeds from asset sales
|
6
|
|
|
32,585
|
|
|
3,636
|
|
|
—
|
|
|
36,227
|
|
|||||
Net cash used in investing activities
|
(2,775
|
)
|
|
(366,545
|
)
|
|
(4,641
|
)
|
|
—
|
|
|
(373,961
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Intercompany transfers
|
235,058
|
|
|
(235,058
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Dividends paid
|
(235,058
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(235,058
|
)
|
|||||
Debt issuance costs paid
|
(3,912
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,912
|
)
|
|||||
Payments for employee taxes on net settlement of equity awards
|
(6,420
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,420
|
)
|
|||||
Proceeds from stock option exercises
|
2,901
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,901
|
|
|||||
Other intercompany transfers
|
111,339
|
|
|
(103,788
|
)
|
|
(7,551
|
)
|
|
—
|
|
|
—
|
|
|||||
Net cash provided by (used in) financing activities
|
103,908
|
|
|
(338,846
|
)
|
|
(7,551
|
)
|
|
—
|
|
|
(242,489
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net increase (decrease) in cash and cash equivalents and restricted cash
|
85,534
|
|
|
(48,375
|
)
|
|
5,762
|
|
|
—
|
|
|
42,921
|
|
|||||
Cash and cash equivalents and restricted cash, beginning of period
|
6,037
|
|
|
273,214
|
|
|
46,934
|
|
|
—
|
|
|
326,185
|
|
|||||
Cash and cash equivalents and restricted cash, end of period
|
$
|
91,571
|
|
|
$
|
224,839
|
|
|
$
|
52,696
|
|
|
$
|
—
|
|
|
$
|
369,106
|
|
|
Nine Months Ended June 30, 2018 as adjusted (Note 2)
|
||||||||||||||||||
(in thousands)
|
Helmerich
& Payne, Inc.
(Guarantor)
|
|
Helmerich & Payne
International
Drilling Co.
(Issuer)
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Total
Consolidated
|
||||||||||
Net cash provided by operating activities
|
$
|
1,914
|
|
|
$
|
350,557
|
|
|
$
|
18,957
|
|
|
$
|
—
|
|
|
$
|
371,428
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
(8,725
|
)
|
|
(306,278
|
)
|
|
(7,655
|
)
|
|
—
|
|
|
(322,658
|
)
|
|||||
Purchase of short-term investments
|
—
|
|
|
(52,159
|
)
|
|
—
|
|
|
—
|
|
|
(52,159
|
)
|
|||||
Payment for acquisition of business, net cash acquired
|
(47,886
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(47,886
|
)
|
|||||
Proceeds from sale of short-term investments
|
—
|
|
|
52,470
|
|
|
—
|
|
|
—
|
|
|
52,470
|
|
|||||
Intercompany transfers
|
56,611
|
|
|
(56,611
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Proceeds from asset sales
|
—
|
|
|
26,737
|
|
|
1,312
|
|
|
—
|
|
|
28,049
|
|
|||||
Net cash used in investing activities
|
—
|
|
|
(335,841
|
)
|
|
(6,343
|
)
|
|
—
|
|
|
(342,184
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Intercompany transfers
|
230,368
|
|
|
(230,368
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Dividends paid
|
(230,368
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(230,368
|
)
|
|||||
Payments for employee taxes on net settlement of equity awards
|
(5,978
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,978
|
)
|
|||||
Proceeds from stock option exercises
|
5,160
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,160
|
|
|||||
Payment of contingent consideration from acquisition of business
|
—
|
|
|
—
|
|
|
(10,625
|
)
|
|
—
|
|
|
(10,625
|
)
|
|||||
Net cash used in financing activities
|
(818
|
)
|
|
(230,368
|
)
|
|
(10,625
|
)
|
|
—
|
|
|
(241,811
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net increase (decrease) in cash and cash equivalents and restricted cash
|
1,096
|
|
|
(215,652
|
)
|
|
1,989
|
|
|
—
|
|
|
(212,567
|
)
|
|||||
Cash and cash equivalents and restricted cash, beginning of period
|
9,385
|
|
|
507,504
|
|
|
43,620
|
|
|
—
|
|
|
560,509
|
|
|||||
Cash and cash equivalents and restricted cash, end of period
|
$
|
10,481
|
|
|
$
|
291,852
|
|
|
$
|
45,609
|
|
|
$
|
—
|
|
|
$
|
347,942
|
|
•
|
our business strategy;
|
•
|
the amount and nature of our future capital expenditures and how we expect to fund our capital expenditures, and the number of rigs we plan to construct or acquire;
|
•
|
the volatility of future oil and natural gas prices;
|
•
|
changes in future levels of drilling activity and capital expenditures by our customers, whether as a result of global capital markets and liquidity, changes in prices of oil and natural gas or otherwise, which may cause us to idle or stack additional rigs, or increase our capital expenditures and the construction or acquisition of rigs;
|
•
|
changes in worldwide rig supply and demand, competition, or technology;
|
•
|
possible cancellation, suspension, renegotiation or termination (with or without cause) of our contracts as a result of general or industry-specific economic conditions, mechanical difficulties, performance or other reasons;
|
•
|
expansion and growth of our business and operations;
|
•
|
our belief that the final outcome of our legal proceedings will not materially affect our financial results;
|
•
|
impact of federal and state legislative and regulatory actions affecting our costs and increasing operation restrictions or delay and other adverse impacts on our business;
|
•
|
environmental or other liabilities, risks, damages or losses, whether related to storms or hurricanes (including wreckage or debris removal), collisions, grounding, blowouts, fires, explosions, other accidents, terrorism or otherwise, for which insurance coverage and contractual indemnities may be insufficient, unenforceable or otherwise unavailable;
|
•
|
our financial condition and liquidity;
|
•
|
tax matters, including our effective tax rates, tax positions, results of audits, changes in tax laws, treaties and regulations, tax assessments and liabilities for taxes; and
|
•
|
potential long-lived asset impairments.
|
|
Total Backlog
Revenue
|
|
Percentage Reasonably
Expected to be Filled in
Fiscal Year 2020
and Thereafter
|
|||||||
(in billions)
|
June 30, 2019
|
|
September 30, 2018
|
|
||||||
U.S. Land
|
$
|
1.4
|
|
|
$
|
1.0
|
|
|
71.7
|
%
|
Offshore
|
—
|
|
|
—
|
|
|
—
|
%
|
||
International Land
|
0.2
|
|
|
0.2
|
|
|
74.7
|
%
|
||
|
$
|
1.6
|
|
|
$
|
1.2
|
|
|
|
|
|
Three Months Ended
June 30, |
|
|
|||||||
(in thousands, except operating statistics)
|
2019
|
|
2018
|
|
% Change
|
|||||
Operating revenues
|
$
|
591,455
|
|
|
$
|
536,582
|
|
|
10.2
|
%
|
Direct operating expenses
|
374,097
|
|
|
362,037
|
|
|
3.3
|
|
||
Research and development
|
165
|
|
|
—
|
|
|
—
|
|
||
Selling, general and administrative expense
|
11,450
|
|
|
14,788
|
|
|
(22.6
|
)
|
||
Depreciation
|
127,040
|
|
|
125,418
|
|
|
1.3
|
|
||
Asset impairment charge
|
216,908
|
|
|
$
|
—
|
|
|
—
|
|
|
Segment operating income (loss)
|
$
|
(138,205
|
)
|
|
$
|
34,339
|
|
|
(502.5
|
)
|
Operating Statistics (1):
|
|
|
|
|
|
|
|
|||
Revenue days
|
19,846
|
|
|
19,917
|
|
|
(0.4
|
)%
|
||
Average rig revenue per day
|
$
|
26,155
|
|
|
$
|
23,698
|
|
|
10.4
|
|
Average rig expense per day
|
$
|
15,202
|
|
|
$
|
14,934
|
|
|
1.8
|
|
Average rig margin per day
|
$
|
10,953
|
|
|
$
|
8,764
|
|
|
25.0
|
|
Rig utilization
|
62
|
%
|
|
63
|
%
|
|
(1.6
|
)
|
(1)
|
Operating statistics for per day revenue, expense and margin do not include reimbursements of “out‑of‑pocket” expenses of $72.4 million and $64.6 million during the three months ended June 30, 2019 and 2018, respectively.
|
|
Three Months Ended
June 30, |
|
|
|||||||
(in thousands, except operating statistics)
|
2019
|
|
2018
|
|
% Change
|
|||||
Operating revenues
|
$
|
37,674
|
|
|
$
|
37,669
|
|
|
—
|
%
|
Direct operating expenses
|
28,869
|
|
|
30,146
|
|
|
(4.2
|
)
|
||
Selling, general and administrative expense
|
1,145
|
|
|
1,126
|
|
|
1.7
|
|
||
Depreciation
|
2,582
|
|
|
2,617
|
|
|
(1.3
|
)
|
||
Segment operating income
|
$
|
5,078
|
|
|
$
|
3,780
|
|
|
34.3
|
|
Operating Statistics (1):
|
|
|
|
|
|
|
|
|
||
Revenue days
|
546
|
|
|
574
|
|
|
(4.9
|
)%
|
||
Average rig revenue per day
|
$
|
39,643
|
|
|
$
|
35,293
|
|
|
12.3
|
|
Average rig expense per day
|
$
|
27,222
|
|
|
$
|
30,607
|
|
|
(11.1
|
)
|
Average rig margin per day
|
$
|
12,421
|
|
|
$
|
4,686
|
|
|
165.1
|
|
Rig utilization
|
75
|
%
|
|
79
|
%
|
|
(5.1
|
)
|
(1)
|
Operating statistics for per day revenue, expense and margin do not include reimbursements of “out‑of‑pocket” expenses of $7.3 million and $5.1 million during the three months ended June 30, 2019 and 2018, respectively. The operating statistics only include rigs owned by us and exclude offshore platform management and labor service contracts and currency revaluation expense.
|
|
Three Months Ended
June 30, |
|
|
|||||||
(in thousands, except operating statistics)
|
2019
|
|
2018
|
|
% Change
|
|||||
Operating revenues
|
$
|
46,283
|
|
|
$
|
63,297
|
|
|
(26.9
|
)%
|
Direct operating expenses
|
34,146
|
|
|
46,810
|
|
|
(27.1
|
)
|
||
Selling, general and administrative expense
|
1,150
|
|
|
995
|
|
|
15.6
|
|
||
Depreciation
|
8,591
|
|
|
11,160
|
|
|
(23.0
|
)
|
||
Asset impairment charge
|
7,419
|
|
|
$
|
—
|
|
|
—
|
|
|
Segment operating income (loss)
|
$
|
(5,023
|
)
|
|
$
|
4,332
|
|
|
(216.0
|
)
|
Operating Statistics (1):
|
|
|
|
|
|
|
|
|||
Revenue days
|
1,510
|
|
|
1,762
|
|
|
(14.3
|
)%
|
||
Average rig revenue per day
|
$
|
29,669
|
|
|
$
|
33,941
|
|
|
(12.6
|
)
|
Average rig expense per day
|
$
|
21,650
|
|
|
$
|
23,947
|
|
|
(9.6
|
)
|
Average rig margin per day
|
$
|
8,019
|
|
|
$
|
9,994
|
|
|
(19.8
|
)
|
Rig utilization
|
51
|
%
|
|
51
|
%
|
|
—
|
|
(1)
|
Operating statistics for per day revenue, expense and margin do not include reimbursements of “out‑of‑pocket” expenses of $1.5 million and $3.5 million for the three months ended June 30, 2019 and 2018, respectively. Also excluded are the effects of currency revaluation income and expense.
|
|
Three Months Ended
June 30, |
|
|
|||||||
(in thousands)
|
2019
|
|
2018
|
|
% Change
|
|||||
Operating revenues
|
$
|
9,376
|
|
|
$
|
7,693
|
|
|
21.9
|
%
|
Direct operating expenses
|
6,357
|
|
|
4,500
|
|
|
41.3
|
|
||
Research and development
|
4,801
|
|
|
5,479
|
|
|
(12.4
|
)
|
||
Selling, general and administrative expense
|
5,204
|
|
|
5,071
|
|
|
2.6
|
|
||
Depreciation and amortization
|
1,824
|
|
|
1,695
|
|
|
7.6
|
|
||
Segment operating loss
|
$
|
(8,810
|
)
|
|
$
|
(9,052
|
)
|
|
(2.7
|
)
|
|
Three Months Ended
June 30, |
|
|
|||||||
(in thousands)
|
2019
|
|
2018
|
|
% Change
|
|||||
Operating revenues
|
$
|
3,186
|
|
|
$
|
3,631
|
|
|
(12.3
|
)%
|
Direct operating expenses
|
1,414
|
|
|
1,424
|
|
|
(0.7
|
)
|
||
Research and development
|
2,100
|
|
|
—
|
|
|
—
|
|
||
Depreciation and amortization
|
403
|
|
|
381
|
|
|
5.8
|
|
||
Operating income (loss)
|
$
|
(731
|
)
|
|
$
|
1,826
|
|
|
(140.0
|
)
|
|
Nine Months Ended
June 30, |
|
|
|||||||
(in thousands, except operating statistics)
|
2019
|
|
2018
|
|
% Change
|
|||||
Operating revenues
|
$
|
1,837,900
|
|
|
$
|
1,480,951
|
|
|
24.1
|
%
|
Direct operating expenses
|
1,160,887
|
|
|
978,789
|
|
|
18.6
|
|
||
Research and development
|
165
|
|
|
—
|
|
|
—
|
|
||
Selling, general and administrative expense
|
34,276
|
|
|
42,792
|
|
|
(19.9
|
)
|
||
Depreciation
|
378,062
|
|
|
373,211
|
|
|
1.3
|
|
||
Asset impairment charge
|
216,908
|
|
|
$
|
—
|
|
|
—
|
|
|
Segment operating income
|
$
|
47,602
|
|
|
$
|
86,159
|
|
|
(44.8
|
)
|
Operating Statistics (1):
|
|
|
|
|
|
|
|
|||
Revenue days
|
63,040
|
|
|
56,946
|
|
|
10.7
|
%
|
||
Average rig revenue per day
|
$
|
25,686
|
|
|
$
|
23,027
|
|
|
11.5
|
|
Average rig expense per day
|
$
|
14,947
|
|
|
$
|
14,209
|
|
|
5.2
|
|
Average rig margin per day
|
$
|
10,739
|
|
|
$
|
8,818
|
|
|
21.8
|
|
Rig utilization
|
66
|
%
|
|
60
|
%
|
|
10.0
|
|
(1)
|
Operating statistics for per day revenue, expense and margin do not include reimbursements of “out‑of‑pocket” expenses of $218.6 million and $169.7 million during the nine months ended June 30, 2019 and 2018, respectively.
|
|
Nine Months Ended
June 30, |
|
|
|||||||
(in thousands, except operating statistics)
|
2019
|
|
2018
|
|
% Change
|
|||||
Operating revenues
|
$
|
109,167
|
|
|
$
|
104,018
|
|
|
5.0
|
%
|
Direct operating expenses
|
82,158
|
|
|
74,863
|
|
|
9.7
|
|
||
Selling, general and administrative expense
|
2,719
|
|
|
3,397
|
|
|
(20.0
|
)
|
||
Depreciation
|
7,512
|
|
|
7,804
|
|
|
(3.7
|
)
|
||
Segment operating income
|
$
|
16,778
|
|
|
$
|
17,954
|
|
|
(6.6
|
)
|
Operating Statistics (1):
|
|
|
|
|
|
|
|
|||
Revenue days
|
1,611
|
|
|
1,484
|
|
|
8.6
|
%
|
||
Average rig revenue per day
|
$
|
35,561
|
|
|
$
|
34,924
|
|
|
1.8
|
|
Average rig expense per day
|
$
|
26,276
|
|
|
$
|
26,394
|
|
|
(0.4
|
)
|
Average rig margin per day
|
$
|
9,285
|
|
|
$
|
8,530
|
|
|
8.9
|
|
Rig utilization
|
74
|
%
|
|
68
|
%
|
|
8.8
|
|
(1)
|
Operating statistics for per day revenue, expense and margin do not include reimbursements of “out‑of‑pocket” expenses of $18.5 million and $14.4 million during the nine months ended June 30, 2019 and 2018, respectively. The operating statistics only include rigs owned by us and exclude offshore platform management and labor service contracts and currency revaluation expense.
|
|
Nine Months Ended
June 30, |
|
|
|||||||
(in thousands, except operating statistics)
|
2019
|
|
2018
|
|
% Change
|
|||||
Operating revenues
|
$
|
163,378
|
|
|
$
|
178,970
|
|
|
(8.7
|
)%
|
Direct operating expenses
|
114,736
|
|
|
132,796
|
|
|
(13.6
|
)
|
||
Selling, general and administrative expense
|
4,225
|
|
|
2,959
|
|
|
42.8
|
|
||
Depreciation
|
27,423
|
|
|
36,044
|
|
|
(23.9
|
)
|
||
Asset impairment charge
|
7,419
|
|
|
$
|
—
|
|
|
—
|
|
|
Segment operating income
|
$
|
9,575
|
|
|
$
|
7,171
|
|
|
33.5
|
|
Operating Statistics (1):
|
|
|
|
|
|
|
||||
Revenue days
|
4,828
|
|
|
4,878
|
|
|
(1.0
|
)%
|
||
Average rig revenue per day
|
$
|
32,285
|
|
|
$
|
34,919
|
|
|
(7.5
|
)
|
Average rig expense per day
|
$
|
21,261
|
|
|
$
|
24,941
|
|
|
(14.8
|
)
|
Average rig margin per day
|
$
|
11,024
|
|
|
$
|
9,978
|
|
|
10.5
|
|
Rig utilization
|
55
|
%
|
|
47
|
%
|
|
17.0
|
|
(1)
|
Operating statistics for per day revenue, expense and margin do not include reimbursements of “out‑of‑pocket” expenses of $7.5 million and $8.6 million during the nine months ended June 30, 2019 and 2018, respectively. Also excluded are the effects of currency revaluation income and expense.
|
|
Nine Months Ended
June 30, |
|
|
|||||||
(in thousands)
|
2019
|
|
2018
|
|
% Change
|
|||||
Operating revenues
|
$
|
29,353
|
|
|
$
|
16,842
|
|
|
74.3
|
%
|
Direct operating expenses
|
15,859
|
|
|
14,105
|
|
|
12.4
|
|
||
Research and development
|
19,082
|
|
|
13,149
|
|
|
45.1
|
|
||
Selling, general and administrative expense
|
16,085
|
|
|
10,889
|
|
|
47.7
|
|
||
Depreciation and amortization
|
5,415
|
|
|
5,099
|
|
|
6.2
|
|
||
Segment operating loss
|
$
|
(27,088
|
)
|
|
$
|
(26,400
|
)
|
|
2.6
|
|
|
Nine Months Ended
June 30, |
|
|
|||||||
(in thousands)
|
2019
|
|
2018
|
|
% Change
|
|||||
Operating revenues
|
$
|
9,642
|
|
|
$
|
9,662
|
|
|
(0.2
|
)%
|
Direct operating expenses
|
4,308
|
|
|
3,728
|
|
|
15.6
|
|
||
Research and development
|
2,100
|
|
|
—
|
|
|
—
|
|
||
Depreciation and amortization
|
1,246
|
|
|
1,092
|
|
|
14.1
|
|
||
Operating income
|
$
|
1,988
|
|
|
$
|
4,842
|
|
|
(58.9
|
)
|
|
Nine Months Ended
June 30, |
||||||
(in thousands)
|
2019
|
|
2018
|
||||
|
|
|
As adjusted
|
||||
Net cash provided (used) by:
|
|
|
|
||||
Operating activities
|
$
|
659,371
|
|
|
$
|
371,428
|
|
Investing activities
|
(373,961
|
)
|
|
(342,184
|
)
|
||
Financing activities
|
(242,489
|
)
|
|
(241,811
|
)
|
||
Increase (decrease) in cash and cash equivalents
|
$
|
42,921
|
|
|
$
|
(212,567
|
)
|
(in thousands, except share amounts)
|
Number
of Shares
|
|
Cost Basis
|
|
Market Value
|
|||||
Ensco Rowan plc
|
1,600,000
|
|
|
$
|
34,760
|
|
|
$
|
13,648
|
|
Schlumberger, Ltd.
|
467,500
|
|
|
3,713
|
|
|
18,578
|
|
||
Total
|
|
|
|
$
|
38,473
|
|
|
$
|
32,226
|
|
•
|
Note 12 to the Unaudited Condensed Consolidated Financial Statements contained in Item 1 of Part I hereof with regard to equity price risk which is incorporated herein by reference;
|
•
|
“Item 7A. Quantitative and Qualitative Disclosures About Market Risk” in our 2018 Annual Report on Form 10-K filed with the SEC on November 16, 2018;
|
•
|
Note 6 to the Unaudited Condensed Consolidated Financial Statements contained in Item 1 of Part I hereof with regard to interest rate risk which is incorporated herein by reference; and
|
•
|
Note 2 to the Unaudited Condensed Consolidated Financial Statements contained in Item 1 of Part I hereof with regard to foreign currency exchange rate risk which is incorporated herein by reference.
|
Exhibit
Number
|
Description
|
|
|
3.1
|
|
3.2
|
|
31.1
|
|
31.2
|
|
32
|
|
101
|
Financial statements from the quarterly report on Form 10-Q of Helmerich & Payne, Inc. for the quarter ended June 30, 2019, filed on July 26, 2019, formatted in Extensive Business Reporting Language (XBRL): (i) the Unaudited Condensed Consolidated Balance Sheets, (ii) the Unaudited Condensed Consolidated Statements of Operations, (iii) the Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss), (iv) the Unaudited Condensed Consolidated Statements of Shareholders’ Equity, (v) the Unaudited Condensed Consolidated Statements of Cash Flows and (vi) the Notes to Unaudited Condensed Consolidated Financial Statements.
|
|
|
HELMERICH & PAYNE, INC.
|
|
|
|
(Registrant)
|
|
|
|
|
|
Date:
|
July 26, 2019
|
By:
|
/S/ JOHN W. LINDSAY
|
|
|
|
John W. Lindsay, Chief Executive Officer
|
|
|
|
|
Date:
|
July 26, 2019
|
By:
|
/S/ MARK W. SMITH
|
|
|
|
Mark W. Smith, Chief Financial Officer
(Principal Financial Officer and Principal Accounting Officer)
|
1.
|
I have reviewed this report on Form 10-Q of Helmerich & Payne, Inc.;
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/S/ JOHN W. LINDSAY
|
Date: July 26, 2019
|
John W. Lindsay, Chief Executive Officer
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: July 26, 2019
|
/S/ MARK W. SMITH
|
|
Mark W. Smith, Chief Financial Officer
|
|
|
|
/S/ JOHN W. LINDSAY
|
|
/S/ MARK W. SMITH
|
John W. Lindsay
Chief Executive Officer
|
|
Mark W. Smith
Chief Financial Officer
|
July 26, 2019
|
|
July 26, 2019
|