DE
|
|
1-4221
|
|
73-0679879
|
(State or other jurisdiction of
Incorporation) |
|
(Commission File
Number) |
|
(I.R.S. Employer
Identification No.) |
Title of each class
|
Trading symbol(s)
|
Name of each exchange on which registered
|
Common Stock ($0.10 par value)
|
HP
|
NYSE
|
Exhibit Number
|
|
Description
|
|
99.1
|
|
|
|
104
|
|
|
Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document
|
|
HELMERICH & PAYNE, INC.
|
|
|
|
|
|
By:
|
/s/ Debra R. Stockton
|
|
Name:
|
Debra R. Stockton
|
|
Title:
|
Corporate Secretary
|
|
Date:
|
April 30, 2020
|
|
Exhibit 99.1
|
•
|
H&P's highest priority is the health and safety of employees and customers. Operational protocols have been put into place that meet or exceed those of the CDC and local jurisdictions. Those include:
|
◦
|
Moved to a global "remote work" model for office personnel (beginning March 13, 2020)
|
◦
|
Suspended all non-essential travel
|
◦
|
Required operational and third party personnel to complete a COVID-19 questionnaire prior to reporting to a rig site in order to evaluate actual and potential COVID-19 exposures
|
◦
|
Initiated daily temperature checks on operational personnel, including prior to entering a rig site
|
◦
|
Implemented enhanced sanitation and cleaning protocols
|
•
|
The Company is an ‘essential critical infrastructure’ company as defined by the Department of Homeland Security and the Cybersecurity and Infrastructure Security Agency and as such, continues to operate rigs and technology solutions, providing valuable services to our customers in support of the global energy infrastructure.
|
•
|
The Company revised its capital allocation policy and implemented cost controls to proactively preserve its strong financial position. Those include:
|
◦
|
Announced intention to reduce annual dividends by $200 million
|
◦
|
Reduced planned capital expenditures by approximately $95 million
|
◦
|
Reduced operational fixed costs by $50 million
|
•
|
H&P has a debt-to-cap ratio of 12% with approximately $380 million in cash on hand and short-term investments and no amounts drawn on our $750 million revolving credit facility.
|
•
|
Quarterly U.S. Land revenue increased $22 million to $531 million sequentially, while operating gross margins(1) increased by $2 million to $183 million sequentially; revenue days decreased approximately 2% to 17,273 from 17,684 in the prior quarter
|
•
|
Quarterly U.S. Land adjusted average rig revenue of $25,667(2) per day increased approximately 1% on a sequential basis, while U.S Land adjusted average rig margin of $9,762(2) per day decreased by roughly 6% sequentially
|
•
|
H&P's drilling automation technology, AutoSlideSM, has drilled more than 225 wells and over 4.0 million feet; AutoSlide technology is enabling customers to reduce personnel at the rig
|
•
|
The Company incurred a non-cash impairment charge of $563 million related to goodwill, less capable rigs, and excess related equipment and inventory
|
•
|
On March 4, 2020, Directors of the Company declared a quarterly cash dividend of $0.71 per share on June 1, 2020 to stockholders of record at the close of business May 11, 2020
|
•
|
On March 31, 2020, the Company announced its intention to reduce any future quarterly dividends to $0.25 per share commencing with the quarterly cash distribution to be declared in the third quarter of fiscal year 2020
|
•
|
$0.26 of after-tax gains pertaining to gains on sales, a reduction in the fair value of a contingent liability, the reversal of accrued compensation and early termination compensation
|
•
|
$(4.13) of after-tax losses pertaining to non-cash impairments of goodwill, less capable rigs, and excess related equipment and inventory, abandonments and accelerated depreciation, and a non-cash fair market adjustment to our equity investment
|
•
|
We expect U.S. Land operating gross margins(1) to be between $90-$105 million, inclusive of approximately $45 million of contract early termination compensation
|
•
|
Based on more than 115 rig release notifications since early March 2020, we expect to end the quarter below 70 rigs with much of the decline occurring prior to June 1, 2020.
|
•
|
We expect International Land operating gross margins(1) to be negative and to be between $(4)-$(6) million
|
•
|
We expect Offshore operating gross margins(1) to be between $4-$6 million
|
•
|
Management contracts are expected to generate approximately $2 million in operating income
|
•
|
Fiscal third quarter revenue is expected to be between $4-$7 million
|
•
|
Gross capital expenditures are expected to be approximately $185 to $205 million. Asset sales include reimbursements for lost and damaged tubulars and sales of other used drilling equipment that offset a portion of the gross capital expenditures and are expected to total $30 to $40 million in fiscal year 2020.
|
•
|
General and administrative expenses for fiscal year 2020 are expected to be approximately $180 million, excluding any future one-time items
|
•
|
Depreciation is expected to be approximately $485 million
|
•
|
$0.03 of after-tax gains related to the change in fair value of a contingent liability
|
•
|
$0.03 of after-tax gains related to the sale of used drilling equipment
|
•
|
$0.07 of after-tax income from contract early termination compensation from customers
|
•
|
$0.13 of after-tax benefits from the reversal of accrued compensation
|
•
|
$(0.01) of non-cash after-tax losses from abandonment charges and accelerated depreciation related to used drilling equipment
|
•
|
$(0.09) of non-cash after-tax losses related to fair market value adjustments to equity investments
|
•
|
$(4.03) of non-cash after-tax losses related to the impairment of goodwill, less capable rigs and excess related equipment and inventory
|
•
|
$0.02 of a net after-tax gain related to fair market value adjustments to equity investments
|
•
|
$0.03 of after-tax gains related to the sale of used drilling equipment
|
•
|
$0.10 of after-tax gains related to the sale of a subsidiary
|
•
|
$(0.01) of non-cash after-tax losses from abandonment charges and accelerated depreciation related to used drilling equipment
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||
|
March 31,
|
|
December 31,
|
|
March 31,
|
|
March 31,
|
||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS
|
2020
|
|
2019
|
|
2019
|
|
2020
|
|
2019
|
||||||||||
Operating revenues
|
|
|
|
|
|
|
|
|
|
||||||||||
Contract drilling services
|
$
|
630,290
|
|
|
$
|
611,398
|
|
|
$
|
717,653
|
|
|
$
|
1,241,688
|
|
|
$
|
1,455,011
|
|
Other
|
3,349
|
|
|
3,259
|
|
|
3,215
|
|
|
6,608
|
|
|
6,455
|
|
|||||
|
633,639
|
|
|
614,657
|
|
|
720,868
|
|
|
1,248,296
|
|
|
1,461,466
|
|
|||||
Operating costs and expenses
|
|
|
|
|
|
|
|
|
|
||||||||||
Contract drilling services operating expenses, excluding depreciation and amortization
|
417,743
|
|
|
399,329
|
|
|
441,719
|
|
|
817,072
|
|
|
929,312
|
|
|||||
Other operating expenses
|
1,315
|
|
|
1,422
|
|
|
1,620
|
|
|
2,737
|
|
|
2,894
|
|
|||||
Depreciation and amortization
|
132,006
|
|
|
130,131
|
|
|
143,161
|
|
|
262,137
|
|
|
284,620
|
|
|||||
Research and development
|
6,214
|
|
|
6,878
|
|
|
7,262
|
|
|
13,092
|
|
|
14,281
|
|
|||||
Selling, general and administrative
|
41,978
|
|
|
49,808
|
|
|
43,506
|
|
|
91,786
|
|
|
98,014
|
|
|||||
Asset impairment charge
|
563,234
|
|
|
—
|
|
|
—
|
|
|
563,234
|
|
|
—
|
|
|||||
Gain on sale of assets
|
(10,310
|
)
|
|
(4,279
|
)
|
|
(11,546
|
)
|
|
(14,589
|
)
|
|
(17,090
|
)
|
|||||
|
1,152,180
|
|
|
583,289
|
|
|
625,722
|
|
|
1,735,469
|
|
|
1,312,031
|
|
|||||
Operating income (loss) from continuing operations
|
(518,541
|
)
|
|
31,368
|
|
|
95,146
|
|
|
(487,173
|
)
|
|
149,435
|
|
|||||
Other income (expense)
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest and dividend income
|
3,566
|
|
|
2,214
|
|
|
2,061
|
|
|
5,780
|
|
|
4,512
|
|
|||||
Interest expense
|
(6,095
|
)
|
|
(6,100
|
)
|
|
(6,167
|
)
|
|
(12,195
|
)
|
|
(10,888
|
)
|
|||||
Gain (loss) on investment securities
|
(12,413
|
)
|
|
2,821
|
|
|
5,878
|
|
|
(9,592
|
)
|
|
(36,957
|
)
|
|||||
Gain on sale of subsidiary
|
—
|
|
|
14,963
|
|
|
—
|
|
|
14,963
|
|
|
—
|
|
|||||
Other
|
(398
|
)
|
|
(399
|
)
|
|
17
|
|
|
(797
|
)
|
|
548
|
|
|||||
|
(15,340
|
)
|
|
13,499
|
|
|
1,789
|
|
|
(1,841
|
)
|
|
(42,785
|
)
|
|||||
Income (loss) from continuing operations before income taxes
|
(533,881
|
)
|
|
44,867
|
|
|
96,935
|
|
|
(489,014
|
)
|
|
106,650
|
|
|||||
Income tax provision (benefit)
|
(113,413
|
)
|
|
14,138
|
|
|
25,078
|
|
|
(99,275
|
)
|
|
26,429
|
|
|||||
Income (loss) from continuing operations
|
(420,468
|
)
|
|
30,729
|
|
|
71,857
|
|
|
(389,739
|
)
|
|
80,221
|
|
|||||
Income from discontinued operations before income taxes
|
6,067
|
|
|
7,457
|
|
|
2,889
|
|
|
13,524
|
|
|
15,554
|
|
|||||
Income tax provision
|
6,139
|
|
|
7,581
|
|
|
13,855
|
|
|
13,720
|
|
|
15,925
|
|
|||||
Loss from discontinued operations
|
(72
|
)
|
|
(124
|
)
|
|
(10,966
|
)
|
|
(196
|
)
|
|
(371
|
)
|
|||||
Net income (loss)
|
$
|
(420,540
|
)
|
|
$
|
30,605
|
|
|
$
|
60,891
|
|
|
$
|
(389,935
|
)
|
|
$
|
79,850
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic earnings (loss) per common share:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) from continuing operations
|
$
|
(3.88
|
)
|
|
$
|
0.27
|
|
|
$
|
0.65
|
|
|
$
|
(3.61
|
)
|
|
$
|
0.72
|
|
Loss from discontinued operations
|
—
|
|
|
—
|
|
|
(0.10
|
)
|
|
—
|
|
|
—
|
|
|||||
Net income (loss)
|
$
|
(3.88
|
)
|
|
$
|
0.27
|
|
|
$
|
0.55
|
|
|
$
|
(3.61
|
)
|
|
$
|
0.72
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted earnings (loss) per common share:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) from continuing operations
|
$
|
(3.88
|
)
|
|
$
|
0.27
|
|
|
$
|
0.65
|
|
|
$
|
(3.61
|
)
|
|
$
|
0.72
|
|
Loss from discontinued operations
|
—
|
|
|
—
|
|
|
(0.10
|
)
|
|
—
|
|
|
—
|
|
|||||
Net income (loss)
|
$
|
(3.88
|
)
|
|
$
|
0.27
|
|
|
$
|
0.55
|
|
|
$
|
(3.61
|
)
|
|
$
|
0.72
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted average shares outstanding (in thousands):
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
108,557
|
|
|
108,555
|
|
|
109,406
|
|
|
108,556
|
|
|
109,273
|
|
|||||
Diluted
|
108,557
|
|
|
108,724
|
|
|
109,503
|
|
|
108,556
|
|
|
109,452
|
|
|
March 31,
|
|
September 30,
|
||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
2020
|
|
2019
|
||||
Assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
336,089
|
|
|
$
|
347,943
|
|
Short-term investments
|
45,655
|
|
|
52,960
|
|
||
Other current assets
|
738,372
|
|
|
714,183
|
|
||
Total current assets
|
1,120,116
|
|
|
1,115,086
|
|
||
Investments
|
20,300
|
|
|
31,991
|
|
||
Property, plant and equipment, net
|
3,840,213
|
|
|
4,502,084
|
|
||
Other noncurrent assets
|
196,125
|
|
|
190,354
|
|
||
Total Assets
|
$
|
5,176,754
|
|
|
$
|
5,839,515
|
|
|
|
|
|
||||
Liabilities and Shareholders' Equity
|
|
|
|
||||
Current liabilities
|
$
|
377,419
|
|
|
$
|
410,238
|
|
Long-term debt, net
|
479,811
|
|
|
479,356
|
|
||
Other noncurrent liabilities
|
843,024
|
|
|
922,357
|
|
||
Noncurrent liabilities - discontinued operations
|
15,494
|
|
|
15,341
|
|
||
Total shareholders’ equity
|
3,461,006
|
|
|
4,012,223
|
|
||
Total Liabilities and Shareholders' Equity
|
$
|
5,176,754
|
|
|
$
|
5,839,515
|
|
|
Six Months Ended March 31,
|
||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
2020
|
|
2019
|
||||
OPERATING ACTIVITIES:
|
|
|
|
||||
Net income (loss)
|
$
|
(389,935
|
)
|
|
$
|
79,850
|
|
Adjustment for loss from discontinued operations
|
196
|
|
|
371
|
|
||
Income (loss) from continuing operations
|
(389,739
|
)
|
|
80,221
|
|
||
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
262,137
|
|
|
284,620
|
|
||
Asset impairment charge
|
563,234
|
|
|
—
|
|
||
Amortization of debt discount and debt issuance costs
|
900
|
|
|
752
|
|
||
Provision for (recovery of) bad debt
|
1,779
|
|
|
(75
|
)
|
||
Stock-based compensation
|
20,952
|
|
|
16,589
|
|
||
Loss on investment securities
|
9,592
|
|
|
36,957
|
|
||
Gain on sale of assets
|
(14,589
|
)
|
|
(17,090
|
)
|
||
Gain on sale of subsidiary
|
(14,963
|
)
|
|
—
|
|
||
Deferred income tax (benefit) expense
|
(106,878
|
)
|
|
8,827
|
|
||
Other
|
(3,779
|
)
|
|
(3,209
|
)
|
||
Changes in assets and liabilities
|
(95,976
|
)
|
|
1,471
|
|
||
Net cash provided by operating activities from continuing operations
|
232,670
|
|
|
409,063
|
|
||
Net cash used in operating activities from discontinued operations
|
(28
|
)
|
|
(45
|
)
|
||
Net cash provided by operating activities
|
232,642
|
|
|
409,018
|
|
||
|
|
|
|
||||
INVESTING ACTIVITIES:
|
|
|
|
||||
Capital expenditures
|
(94,312
|
)
|
|
(329,980
|
)
|
||
Purchase of short-term investments
|
(36,336
|
)
|
|
(42,406
|
)
|
||
Payment for acquisition of business, net of cash acquired
|
—
|
|
|
(2,781
|
)
|
||
Proceeds from sale of short-term investments
|
43,894
|
|
|
58,015
|
|
||
Proceeds from sale of subsidiary
|
15,056
|
|
|
—
|
|
||
Proceeds from asset sales
|
24,799
|
|
|
24,559
|
|
||
Other
|
(51
|
)
|
|
—
|
|
||
Net cash used in investing activities
|
(46,950
|
)
|
|
(292,593
|
)
|
||
|
|
|
|
||||
FINANCING ACTIVITIES:
|
|
|
|
||||
Dividends paid
|
(155,890
|
)
|
|
(156,580
|
)
|
||
Debt issuance costs paid
|
—
|
|
|
(3,912
|
)
|
||
Proceeds from stock option exercises
|
4,100
|
|
|
2,257
|
|
||
Payments for employee taxes on net settlement of equity awards
|
(3,455
|
)
|
|
(6,268
|
)
|
||
Payment of contingent consideration from acquisition of business
|
(4,250
|
)
|
|
—
|
|
||
Share repurchase
|
(28,504
|
)
|
|
—
|
|
||
Other
|
(445
|
)
|
|
—
|
|
||
Net cash used in financing activities
|
(188,444
|
)
|
|
(164,503
|
)
|
||
Net decrease in cash and cash equivalents and restricted cash
|
(2,752
|
)
|
|
(48,078
|
)
|
||
Cash and cash equivalents and restricted cash, beginning of period
|
382,971
|
|
|
326,185
|
|
||
Cash and cash equivalents and restricted cash, end of period
|
$
|
380,219
|
|
|
$
|
278,107
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||
|
March 31,
|
|
December 31,
|
|
March 31,
|
|
March 31,
|
||||||||||||
SEGMENT REPORTING
(in thousands, except operating statistics)
|
2020
|
|
2019
|
|
20191
|
|
2020
|
|
20191
|
||||||||||
U.S. LAND OPERATIONS
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating revenues
|
$
|
530,664
|
|
|
$
|
508,828
|
|
|
$
|
617,533
|
|
|
$
|
1,039,492
|
|
|
$
|
1,236,958
|
|
Direct operating expenses
|
347,241
|
|
|
327,292
|
|
|
377,430
|
|
|
674,533
|
|
|
785,116
|
|
|||||
Research and development
|
860
|
|
|
259
|
|
|
134
|
|
|
1,119
|
|
|
301
|
|
|||||
Selling, general and administrative expense
|
8,514
|
|
|
10,861
|
|
|
11,169
|
|
|
19,375
|
|
|
22,826
|
|
|||||
Depreciation
|
114,927
|
|
|
113,726
|
|
|
126,785
|
|
|
228,653
|
|
|
250,787
|
|
|||||
Asset impairment charge
|
368,215
|
|
|
—
|
|
|
—
|
|
|
368,215
|
|
|
—
|
|
|||||
Segment operating income (loss)
|
$
|
(309,093
|
)
|
|
$
|
56,690
|
|
|
$
|
102,015
|
|
|
$
|
(252,403
|
)
|
|
$
|
177,928
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue days
|
17,273
|
|
|
17,684
|
|
|
21,262
|
|
|
34,957
|
|
|
43,194
|
|
|||||
Average rig revenue per day
|
$
|
26,256
|
|
|
$
|
25,405
|
|
|
$
|
25,462
|
|
|
$
|
25,825
|
|
|
$
|
25,251
|
|
Average rig expense per day
|
15,497
|
|
|
14,987
|
|
|
14,169
|
|
|
15,239
|
|
|
14,790
|
|
|||||
Average rig margin per day
|
$
|
10,759
|
|
|
$
|
10,418
|
|
|
$
|
11,293
|
|
|
$
|
10,586
|
|
|
$
|
10,461
|
|
Rig utilization
|
63
|
%
|
|
64
|
%
|
|
67
|
%
|
|
64
|
%
|
|
68
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
INTERNATIONAL LAND OPERATIONS
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating revenues
|
$
|
51,250
|
|
|
$
|
46,462
|
|
|
$
|
50,808
|
|
|
$
|
97,712
|
|
|
$
|
117,095
|
|
Direct operating expenses
|
37,964
|
|
|
34,075
|
|
|
33,051
|
|
|
72,039
|
|
|
80,590
|
|
|||||
Selling, general and administrative expense
|
1,248
|
|
|
1,455
|
|
|
794
|
|
|
2,703
|
|
|
3,076
|
|
|||||
Depreciation
|
7,821
|
|
|
7,817
|
|
|
8,995
|
|
|
15,638
|
|
|
18,832
|
|
|||||
Asset impairment charge
|
156,686
|
|
|
—
|
|
|
—
|
|
|
156,686
|
|
|
—
|
|
|||||
Segment operating income (loss)
|
$
|
(152,469
|
)
|
|
$
|
3,115
|
|
|
$
|
7,968
|
|
|
$
|
(149,354
|
)
|
|
$
|
14,597
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue days
|
1,547
|
|
|
1,619
|
|
|
1,559
|
|
|
3,166
|
|
|
3,318
|
|
|||||
Average rig revenue per day
|
$
|
31,706
|
|
|
$
|
27,714
|
|
|
$
|
31,130
|
|
|
$
|
29,664
|
|
|
$
|
33,476
|
|
Average rig expense per day
|
20,922
|
|
|
20,506
|
|
|
19,269
|
|
|
20,710
|
|
|
21,083
|
|
|||||
Average rig margin per day
|
$
|
10,784
|
|
|
$
|
7,208
|
|
|
$
|
11,861
|
|
|
$
|
8,954
|
|
|
$
|
12,393
|
|
Rig utilization
|
53
|
%
|
|
57
|
%
|
|
54
|
%
|
|
55
|
%
|
|
57
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
OFFSHORE OPERATIONS
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating revenues
|
$
|
33,079
|
|
|
$
|
40,255
|
|
|
$
|
34,583
|
|
|
$
|
73,334
|
|
|
$
|
71,493
|
|
Direct operating expenses
|
32,648
|
|
|
30,045
|
|
|
26,984
|
|
|
62,693
|
|
|
53,289
|
|
|||||
Selling, general and administrative expense
|
908
|
|
|
1,137
|
|
|
805
|
|
|
2,045
|
|
|
1,574
|
|
|||||
Depreciation
|
2,842
|
|
|
2,745
|
|
|
2,263
|
|
|
5,587
|
|
|
4,931
|
|
|||||
Segment operating income (loss)
|
$
|
(3,319
|
)
|
|
$
|
6,328
|
|
|
$
|
4,531
|
|
|
$
|
3,009
|
|
|
$
|
11,699
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue days
|
457
|
|
|
550
|
|
|
540
|
|
|
1,007
|
|
|
1,065
|
|
|||||
Average rig revenue per day
|
$
|
42,098
|
|
|
$
|
43,839
|
|
|
$
|
31,361
|
|
|
$
|
43,049
|
|
|
$
|
33,468
|
|
Average rig expense per day
|
48,117
|
|
|
30,602
|
|
|
25,941
|
|
|
38,545
|
|
|
25,791
|
|
|||||
Average rig margin per day
|
$
|
(6,019
|
)
|
|
$
|
13,237
|
|
|
$
|
5,420
|
|
|
$
|
4,504
|
|
|
$
|
7,677
|
|
Rig utilization
|
63
|
%
|
|
75
|
%
|
|
75
|
%
|
|
69
|
%
|
|
73
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
H&P TECHNOLOGIES
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating revenues
|
$
|
17,709
|
|
|
$
|
18,552
|
|
|
$
|
14,729
|
|
|
$
|
36,261
|
|
|
$
|
29,465
|
|
Direct operating expenses
|
1,735
|
|
|
8,389
|
|
|
4,683
|
|
|
10,124
|
|
|
11,176
|
|
|||||
Research and development
|
4,803
|
|
|
6,490
|
|
|
7,128
|
|
|
11,293
|
|
|
13,980
|
|
|||||
Selling, general and administrative expense
|
4,005
|
|
|
5,885
|
|
|
4,783
|
|
|
9,890
|
|
|
10,881
|
|
|||||
Depreciation and amortization
|
2,407
|
|
|
2,339
|
|
|
1,943
|
|
|
4,746
|
|
|
3,825
|
|
|||||
Asset impairment charge
|
38,333
|
|
|
—
|
|
|
—
|
|
|
38,333
|
|
|
—
|
|
|||||
Segment operating loss
|
$
|
(33,574
|
)
|
|
$
|
(4,551
|
)
|
|
$
|
(3,808
|
)
|
|
$
|
(38,125
|
)
|
|
$
|
(10,397
|
)
|
(1)
|
During the fourth quarter of fiscal year 2019, we migrated our FlexApp offerings into our H&P Technologies segment. The activity
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||
|
March 31,
|
|
December 31,
|
|
March 31,
|
|
March 31,
|
||||||||||||
(in thousands)
|
2020
|
|
2019
|
|
2019
|
|
2020
|
|
2019
|
||||||||||
U.S. Land Operations
|
$
|
77,146
|
|
|
$
|
59,566
|
|
|
$
|
76,172
|
|
|
$
|
136,713
|
|
|
$
|
146,262
|
|
International Land Operations
|
2,209
|
|
|
1,587
|
|
|
2,277
|
|
|
3,796
|
|
|
6,023
|
|
|||||
Offshore Operations
|
6,770
|
|
|
9,902
|
|
|
5,507
|
|
|
16,672
|
|
|
11,257
|
|
|
Three Months Ended March 31, 2020
|
||||||||||||||||||||||||||
(in thousands)
|
U.S. Land
|
|
Offshore
|
|
International Land
|
|
H&P Technologies
|
|
Other
|
|
Eliminations
|
|
Total
|
||||||||||||||
Operating revenue
|
$
|
530,664
|
|
|
$
|
33,079
|
|
|
$
|
51,250
|
|
|
$
|
15,297
|
|
|
$
|
3,349
|
|
|
$
|
—
|
|
|
$
|
633,639
|
|
Intersegment
|
—
|
|
|
—
|
|
|
—
|
|
|
2,412
|
|
|
10,649
|
|
|
(13,061
|
)
|
|
—
|
|
|||||||
Total operating revenue
|
$
|
530,664
|
|
|
$
|
33,079
|
|
|
$
|
51,250
|
|
|
$
|
17,709
|
|
|
$
|
13,998
|
|
|
$
|
(13,061
|
)
|
|
$
|
633,639
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Direct operating expenses
|
335,548
|
|
|
31,521
|
|
|
37,723
|
|
|
1,735
|
|
|
12,531
|
|
|
—
|
|
|
419,058
|
|
|||||||
Intersegment - self-insurance expenses
|
9,281
|
|
|
1,127
|
|
|
241
|
|
|
—
|
|
|
—
|
|
|
(10,649
|
)
|
|
—
|
|
|||||||
Intersegment - FlexApps
|
2,412
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,412
|
)
|
|
—
|
|
|||||||
Total contract drilling services & other operating expenses
|
$
|
347,241
|
|
|
$
|
32,648
|
|
|
$
|
37,964
|
|
|
$
|
1,735
|
|
|
$
|
12,531
|
|
|
$
|
(13,061
|
)
|
|
$
|
419,058
|
|
|
Six Months Ended March 31, 2020
|
|||||||||||||||||||||||||||||||
(in thousands)
|
U.S. Land
|
|
Offshore
|
|
International Land
|
|
H&P Technologies
|
|
Other
|
|
Eliminations
|
|
Total
|
|||||||||||||||||||
Operating revenue
|
$
|
1,039,492
|
|
|
$
|
73,334
|
|
|
$
|
97,712
|
|
|
$
|
31,150
|
|
|
$
|
6,608
|
|
|
$
|
—
|
|
|
$
|
1,248,296
|
|
|||||
Intersegment
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
5,111
|
|
—
|
|
18,545
|
|
—
|
|
(23,656
|
)
|
|
—
|
|
|||||||
Total operating revenue
|
$
|
1,039,492
|
|
|
$
|
73,334
|
|
|
$
|
97,712
|
|
|
$
|
36,261
|
|
|
$
|
25,153
|
|
|
$
|
(23,656
|
)
|
|
$
|
1,248,296
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Direct operating expenses
|
$
|
653,753
|
|
|
$
|
60,298
|
|
|
$
|
71,558
|
|
|
$
|
10,124
|
|
|
$
|
24,076
|
|
|
$
|
—
|
|
|
$
|
819,809
|
|
|||||
Intersegment - self-insurance expenses
|
15,669
|
|
|
2,395
|
|
|
481
|
|
|
—
|
|
|
—
|
|
|
(18,545
|
)
|
|
—
|
|
||||||||||||
Intersegment - FlexApps
|
5,111
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,111
|
)
|
|
—
|
|
||||||||||||
Total contract drilling services & other operating expenses
|
$
|
674,533
|
|
|
$
|
62,693
|
|
|
$
|
72,039
|
|
|
$
|
10,124
|
|
|
$
|
24,076
|
|
|
$
|
(23,656
|
)
|
|
$
|
819,809
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||
|
March 31,
|
|
December 31,
|
|
March 31,
|
|
March 31,
|
||||||||||||
(in thousands)
|
2020
|
|
2019
|
|
20191
|
|
2020
|
|
20191
|
||||||||||
Operating income (loss)
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Land
|
$
|
(309,093
|
)
|
|
$
|
56,690
|
|
|
$
|
102,015
|
|
|
$
|
(252,403
|
)
|
|
$
|
177,928
|
|
International Land
|
(152,469
|
)
|
|
3,115
|
|
|
7,968
|
|
|
(149,354
|
)
|
|
14,597
|
|
|||||
Offshore
|
(3,319
|
)
|
|
6,328
|
|
|
4,531
|
|
|
3,009
|
|
|
11,699
|
|
|||||
H&P Technologies
|
(33,574
|
)
|
|
(4,551
|
)
|
|
(3,808
|
)
|
|
(38,125
|
)
|
|
(10,397
|
)
|
|||||
Other
|
376
|
|
|
(1,237
|
)
|
|
1,164
|
|
|
(705
|
)
|
|
2,718
|
|
|||||
Segment operating income (loss)
|
$
|
(498,079
|
)
|
|
$
|
60,345
|
|
|
$
|
111,870
|
|
|
$
|
(437,578
|
)
|
|
$
|
196,545
|
|
Gain on sale of assets
|
10,310
|
|
|
4,279
|
|
|
11,546
|
|
|
14,589
|
|
|
17,090
|
|
|||||
Corporate selling, general and administrative costs and corporate depreciation
|
(30,772
|
)
|
|
(33,256
|
)
|
|
(28,270
|
)
|
|
(64,184
|
)
|
|
(64,200
|
)
|
|||||
Operating income (loss)
|
$
|
(518,541
|
)
|
|
$
|
31,368
|
|
|
$
|
95,146
|
|
|
$
|
(487,173
|
)
|
|
$
|
149,435
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest and dividend income
|
$
|
3,566
|
|
|
$
|
2,214
|
|
|
$
|
2,061
|
|
|
$
|
5,780
|
|
|
$
|
4,512
|
|
Interest expense
|
(6,095
|
)
|
|
(6,100
|
)
|
|
(6,167
|
)
|
|
(12,195
|
)
|
|
(10,888
|
)
|
|||||
Gain (loss) on investment securities
|
(12,413
|
)
|
|
2,821
|
|
|
5,878
|
|
|
(9,592
|
)
|
|
(36,957
|
)
|
|||||
Gain on sale of subsidiary
|
—
|
|
|
14,963
|
|
|
—
|
|
|
14,963
|
|
|
—
|
|
|||||
Other
|
(398
|
)
|
|
(399
|
)
|
|
17
|
|
|
(797
|
)
|
|
548
|
|
|||||
Total unallocated amounts
|
(15,340
|
)
|
|
13,499
|
|
|
1,789
|
|
|
(1,841
|
)
|
|
(42,785
|
)
|
|||||
Income (loss) from continuing operations before income taxes
|
$
|
(533,881
|
)
|
|
$
|
44,867
|
|
|
$
|
96,935
|
|
|
$
|
(489,014
|
)
|
|
$
|
106,650
|
|
(1)
|
During the fourth quarter of fiscal year 2019, we migrated our FlexApp offerings into our H&P Technologies segment. The activity
|
|
Three Months Ended
|
||||||
(in thousands, except operating statistics)
|
March 31, 2020
|
|
December 31, 2019
|
||||
U.S. Land Operations
|
|
|
|
||||
Average rig revenue per day
|
$
|
26,256
|
|
|
$
|
25,405
|
|
Early contract termination revenue
|
$
|
(589
|
)
|
|
$
|
(8
|
)
|
Adjusted average rig revenue per day
|
$
|
25,667
|
|
|
$
|
25,397
|
|
|
|
|
|
||||
Average rig expense per day
|
$
|
15,497
|
|
|
$
|
14,987
|
|
Reversal of accrued compensation
|
$
|
408
|
|
|
$
|
—
|
|
Adjusted average rig expense per day
|
$
|
15,905
|
|
|
$
|
14,987
|
|
|
|
|
|
||||
Adjusted average rig margin per day
|
$
|
9,762
|
|
|
$
|
10,410
|
|
|
|
|
|
||||
International Land Operations
|
|
|
|
||||
Average rig revenue per day
|
$
|
31,706
|
|
|
$
|
27,714
|
|
Early contract termination revenue
|
$
|
(103
|
)
|
|
$
|
—
|
|
Adjusted average rig revenue per day
|
$
|
31,603
|
|
|
$
|
27,714
|
|
|
|
|
|
||||
Average rig expense per day
|
$
|
20,922
|
|
|
$
|
20,506
|
|
Reversal of accrued compensation
|
$
|
588
|
|
|
$
|
—
|
|
Adjusted average rig expense per day
|
$
|
21,510
|
|
|
$
|
20,506
|
|
|
|
|
|
||||
Adjusted average rig margin per day
|
$
|
10,093
|
|
|
$
|
7,208
|
|
|
|
|
|
||||
Offshore Operations
|
|
|
|
||||
Average rig revenue per day
|
$
|
42,098
|
|
|
$
|
43,839
|
|
Adjusted average rig revenue per day
|
$
|
42,098
|
|
|
$
|
43,839
|
|
|
|
|
|
||||
Average rig expense per day
|
$
|
48,117
|
|
|
$
|
30,602
|
|
Reversal of accrued compensation
|
$
|
1,542
|
|
|
$
|
—
|
|
Adjusted average rig expense per day
|
$
|
49,659
|
|
|
$
|
30,602
|
|
|
|
|
|
||||
Adjusted average rig margin per day
|
$
|
(7,561
|
)
|
|
$
|
13,237
|
|
|
|
|
|
||||
H&P Technologies
|
|
|
|
||||
Operating loss
|
$
|
(33,574
|
)
|
|
$
|
(4,551
|
)
|
Goodwill impairment
|
$
|
38,333
|
|
|
$
|
—
|
|
Change in fair value of contingent liability
|
$
|
(3,600
|
)
|
|
$
|
—
|
|
Reversal of accrued compensation
|
$
|
(1,508
|
)
|
|
$
|
—
|
|
Adjusted operating loss
|
$
|
(349
|
)
|
|
$
|
(4,551
|
)
|
|
|
|
|
|
April 30,
|
|
March 31,
|
|
December 31,
|
|
Q2FY20
|
||||
|
2020*
|
|
2020
|
|
2019
|
|
Average
|
||||
U.S. Land Operations
|
|
|
|
|
|
|
|
||||
Term Contract Rigs
|
59
|
|
|
90
|
|
|
132
|
|
|
123
|
|
Spot Contract Rigs
|
27
|
|
|
60
|
|
|
63
|
|
|
67
|
|
Total Contracted Rigs
|
86
|
|
|
150
|
|
|
195
|
|
|
190
|
|
Idle or Other Rigs
|
176
|
|
|
149
|
|
|
104
|
|
|
109
|
|
Total Marketable Fleet
|
262
|
|
|
299
|
|
|
299
|
|
|
299
|
|
|
Q3
|
|
Q4
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Q1
|
|||||||
Segment
|
FY20
|
|
FY20
|
|
FY21
|
|
FY21
|
|
FY21
|
|
FY21
|
|
FY22
|
|||||||
U.S. Land Operations
|
65.6
|
|
|
49.6
|
|
|
44.9
|
|
|
38.4
|
|
|
32.2
|
|
|
23.9
|
|
|
14.2
|
|
International Land Operations
|
2.1
|
|
|
1.0
|
|
|
1.0
|
|
|
1.0
|
|
|
1.0
|
|
|
1.0
|
|
|
1.0
|
|
Offshore Operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total
|
67.7
|
|
|
50.6
|
|
|
45.9
|
|
|
39.4
|
|
|
33.2
|
|
|
24.9
|
|
|
15.2
|
|