Exhibit 99
October 27, 2005
HELMERICH
& PAYNE ANNOUNCES CONTRACTS FOR 16 NEW FLEXRIGS®
Helmerich & Payne, Inc. announced today that separate three-year term contracts have been
reached with three exploration and production companies to operate 16 new FlexRigs. Projected rig
construction costs are expected to average approximately $10 million each for 11 FlexRig4s and
$14.2 million each for five FlexRig3s. Field delivery of the rigs is scheduled for June 2006
through January 2007. Other terms and customer names were not disclosed. With these new term
contracts, the Company has now committed to build a total of 41 new rigs for 11 exploration and
production companies.
Company President and CEO, Hans Helmerich commented, We are pleased to add to our order book
for fully contracted new-build rigs and to broaden the range of customers that have selected the
FlexRig for their long-term drilling programs. It underscores the customers long-term outlook for
the cycle and their interest in capturing proven drilling efficiencies provided by the Company.
The
Company also announced it has notified some of its new-build customers of a four-week
delay in rig deliveries due to major labor disruptions caused by Hurricane Rita to one of the
Companys fabrication vendors. As a result, the first FlexRig4 will be delivered to the field
during late November or early December, instead of November as previously announced. The
hurricane-related delays will also affect rigs scheduled to be delivered during the remainder of
2005 and the first half of 2006. The Helmerich & Payne, Inc.
assembly facility located in
Houston sustained no hurricane damage.
As previously announced, the only other major effect from recent hurricanes was the damage
done by Hurricane Katrina to Helmerich & Payne Rig 201. Complete assessment and repair estimates
of the damage are ongoing. The Company anticipates that it could be as long as nine more months
before the rig is fully operational and for dayrate payments to
resume. Due to the damage to Rig 201, there will likely be a
slight reduction in offshore platform rig operating income for the fourth quarter of fiscal 2005
compared to the third quarter. However, the Company has committed
two previously stacked offshore platform rigs for work in the Gulf of
Mexico, from which the
combined operating cash flow is expected to exceed the operating cash flow that was generated by
Rig 201 prior to the hurricane. The newly committed platform rigs are Rig 100, which began work
earlier this month, and Rig 105, which will begin operations in January 2006. As previously
announced, the Company expects to record income from insurance proceeds once the repairs to Rig 201
have been completed.
(more)
October 27, 2005
News Release
The Company will release its Fourth Quarter and Year-End Earnings prior to the market open on
Wednesday, November 16, 2005. Its conference call will be broadcast live over the Internet that
same morning at 11:00 a.m. Eastern Time (10:00 a.m. Central Time). The call can be accessed on our
website at
http://www.hpinc.com
under Investors
.
Helmerich & Payne, Inc. is a contract drilling company that owns 90 U.S. land rigs, 11 U.S.
platform rigs located in the Gulf of Mexico, and 27 international rigs, for a total of 128 rigs.
Included in the total fleet of 128 rigs are 50 H&P-designed and operated FlexRigs. The Company has
reached contractual agreements with customers that will result in the construction of 41 additional
FlexRigs.
The information disclosed herein includes forward-looking statements within the meaning of the
Securities Act of 1933 and the Securities and Exchange Act of 1934. Such forward-looking
statements are subject to certain risks and uncertainties, as disclosed by Helmerich & Payne in its
Form 10-K filed with the Securities and Exchange Commission on December 13, 2004. As a result of
these factors, the Companys actual results may differ materially from those indicated or implied
by such forward-looking statements.
*FlexRig® is a registered trademark of Helmerich & Payne, Inc.
Contacts:
Doug Fears
(918) 588-5208
Juan Pablo Tardio
(918) 588-5383
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