Exhibit 99

August 1, 2007

HELMERICH & PAYNE, INC. ANNOUNCES EARNINGS AND NEW CONTRACTS

Helmerich & Payne, Inc. reported net income of $115,204,000 ($1.09 per diluted share) from operating revenues of $421,274,000 for its third fiscal quarter ended June 30, 2007, compared with net income of $79,975,000 ($0.75 per diluted share) from operating revenues of $319,796,000 during last year’s third fiscal quarter ended June 30, 2006.  Included in third quarter net income for 2007 were gains of $0.15 per share from the sale of portfolio securities and $0.06 per share net income from the sale of drilling equipment and partial insurance settlement. The third fiscal quarter of 2006 included gains of $0.06 per share from the sale of portfolio securities and drilling equipment.

For the nine months ended June 30, 2007, the Company reported net income of $332,851,000 ($3.17 per diluted share) from operating revenues of $1,180,209,000 compared with net income of $195,362,000 ($1.84 per diluted share) from operating revenues of $866,014,000 during the nine months ended June 30, 2006.  Included in net income were gains from the sale of portfolio securities and drilling equipment, and gains from insurance settlements of $0.60 per share for the first nine months of fiscal 2007, and $0.11 per share for the first nine months of fiscal 2006.

Operating income in the U.S. land segment increased during the quarter to $114.6 million, from $93.7 million during last year’s third quarter, and $109.8 million during this year’s second quarter.  The sequential increase is largely due to incremental new build rig commencements during the quarter, as well as the Company’s ability to sustain high activity levels in the spot market.  Average rig activity in the segment increased by 12 rigs to a total of 136 average active rigs during the third quarter, and rig utilization for the quarter was 96%.  Although the segment’s average revenue per rig day increased sequentially, the increase was more than offset by higher operating costs which resulted in the average margin per rig day decreasing sequentially by $476 per rig day.

The Company’s U.S. offshore operations reported segment operating income of $3,013,000 for the third quarter of fiscal 2007, compared with $7,635,000 for the third quarter of fiscal 2006, and $2,198,000 for the second quarter of fiscal 2007.  Total activity days in the U.S. offshore platform operations during the quarter was 546, compared with 728 activity days during the same period last year, and 522 days during the second quarter of fiscal 2007.  Operating income improved sequentially due to improved activity and higher rig margins.

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News Release
August 1, 2007

Segment operating income for the Company’s international operations was $30,413,000 during this year’s third quarter, compared with $17,685,000 during last year’s third quarter and $21,481,000 during this year’s second quarter.  The sequential increase was primarily due to a substantial improvement in average rig revenue and margin per day.  Average rig utilization for the third quarter of 2007 dropped to 90%, from 93% for both the third quarter of fiscal 2006 and the second quarter of fiscal 2007.  International rig utilization for the fourth quarter of fiscal 2007 is anticipated to be slightly lower than the third quarter, and segment operating income will be negatively impacted by the reduction in labor contract revenue and operating income resulting from the associated platform rig in Equatorial Guinea recently being cold stacked.

Helmerich & Payne, Inc. also announced today that it had signed two three-year term contracts with an exploration and production company to operate two new FlexRigs®*.  The name of the customer and other terms were not disclosed.  This brings to 77, the total number of new FlexRig commitments with at least three-year term contracts that have been announced by the Company since March, 2005.  To date, 64 of the new builds have been completed, with the remaining 13 scheduled for completion by the second quarter of fiscal 2008.

Company President and C.E.O., Hans Helmerich commented, “The Company’s improvement in net income reflects results of the Company’s strategy of delivering to our customers lower drilling costs by using the newest and best rig technology.  In a time period where many of our competitors are recording net reductions in rig activity and income, our U.S. land utilization remains high while delivering additional activity days at strong dayrates and margins.  We believe exploration and production companies in the U.S. and abroad will continue to search for opportunities to upgrade their operations by contracting higher quality rigs.  The announcement of two additional new FlexRig commitments signal the ongoing interest in that approach.”

Helmerich & Payne, Inc. is a contract drilling company with a fleet of 152 U.S. land rigs, 27 international land rigs and nine offshore platform rigs.  In addition, the Company is committed to complete another 13 new H&P-designed and operated FlexRigs, which represent the remaining portion of the 77 new build commitments announced since March, 2005. Upon completion of these commitments, and including 50 previously existing FlexRigs, the Company’s fleet will include a total of 127 FlexRigs.

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

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News Release
August 1, 2007

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

 

 

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

Contact:  Juan Pablo Tardio
(918) 588-5383

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News Release
August 1, 2007

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

		Three Months Ended									Nine Months Ended
		Mar. 31			June 30						June 30
CONSOLIDATED STATEMENTS OF INCOME		2007			2007			2006			2007			2006
Operating Revenues:
Drilling — U.S. Land		$	269,145		$	303,514		$	214,864		$	842,559		$	581,286
Drilling — U.S. Offshore		24,062			24,910			34,568			79,958			97,791
Drilling — International		76,591			90,073			67,831			249,278			179,205
Real Estate		2,738			2,777			2,533			8,414			7,732
		372,536			421,274			319,796			1,180,209			866,014
Operating costs and other:
Operating costs, excluding depreciation		199,456			229,025			169,429			627,948			466,825
Depreciation		32,952			38,125			25,076			101,228			71,384
General and administrative		13,350			11,538			13,049			35,501			38,944
Gain from involuntary conversion of long-lived assets		(5,170		)	(5,900		)	—			(11,070		)	—
Income from asset sales		(32,336		)	(6,186		)	(1,895		)	(39,008		)	(6,431		)
		208,252			266,602			205,659			714,599			570,722
Operating income		164,284			154,672			114,137			465,610			295,292
Other income (expense):
Interest and dividend income		1,034			962			2,633			3,240			7,619
Interest expense		(1,913		)	(3,260		)	(1,281		)	(6,092		)	(5,807		)
Gain on sale of investment securities		177			25,298			9,390			51,812			12,110
Other		66			120			1,085			250			599
		(636		)	23,120			11,827			49,210			14,521
Income before income taxes and equity in income of affiliate		163,648			177,792			125,964			514,820			309,813
Income tax provision		59,338			64,960			47,636			188,396			118,678
Equity in income of affiliate net of income taxes		2,551			2,372			1,647			6,427			4,227
NET INCOME		$	106,861		$	115,204		$	79,975		$	332,851		$	195,362
Earnings per common share:
Basic		$	1.04		$	1.11		$	0.76		$	3.22		$	1.87
Diluted		$	1.02		$	1.09		$	0.75		$	3.17		$	1.84
Average common shares outstanding:
Basic		103,239			103,323			105,019			103,292			104,542
Diluted		104,832			105,313			106,419			104,990			105,987

 

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News Release
August 1, 2007

HELMERICH & PAYNE, INC.
Unaudited
 (in thousands)

 

CONSOLIDATED CONDENSED BALANCE SHEETS		6/30/07			9/30/06
ASSETS
Cash and cash equivalents		$	70,562		$	33,853
Short-term investments		396			48,673
Other current assets		392,669			346,165
Total current assets		463,627			428,691
Investments		206,437			218,309
Net property, plant, and equipment		2,009,182			1,483,134
Other assets		8,076			4,578
TOTAL ASSETS		$	2,687,322		$	2,134,712
LIABILITIES AND SHAREHOLDERS’ EQUITY
Total current liabilities		$	254,010		$	264,548
Total noncurrent liabilities		368,789			313,272
Long-term notes payable		380,000			175,000
Total shareholders’ equity		1,684,523			1,381,892
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	2,687,322		$	2,134,712

 

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Page 6
News Release
August 1, 2007

HELMERICH & PAYNE, INC.
Unaudited
 (in thousands)

		Nine Months Ended June 30
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS		2007			2006
OPERATING ACTIVITIES:
Net income		$	332,851		$	195,362
Depreciation		101,228			71,384
Changes in assets and liabilities		58,137			(30,971		)
Gain from involuntary conversion of long-lived assets		(11,070		)	—
Gain on sale of assets and investment securities		(90,682		)	(18,405		)
Other		(5,065		)	545
Net cash provided by operating activities		385,399			217,915
INVESTING ACTIVITIES:
Capital expenditures		(681,149		)	(322,573		)
Purchase of investments		—			(115,077		)
Insurance proceeds from involuntary conversion of long-lived assets		11,070			—
Proceeds from sale of assets and investments		158,464			33,358
Net cash used in investing activities		(511,615		)	(404,292		)
FINANCING ACTIVITIES:
Dividends paid		(13,971		)	(12,960		)
Repurchase of common stock		(17,621		)	—
Net decrease in bank overdraft		(11,293		)	—
Proceeds from exercise of stock options		3,277			12,341
Net proceeds from short-term and long-term debt		201,279			2,326
Excess tax benefit from stock-based compensation		1,254			10,019
Net cash provided by financing activities		162,925			11,726
Net increase (decrease) in cash and cash equivalents		36,709			(174,651		)
Cash and cash equivalents, beginning of period		33,853			288,752
Cash and cash equivalents, end of period		$	70,562		$	114,101

 

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News Release
August 1, 2007

		Three Months Ended									Nine Months Ended
SEGMENT REPORTING		Mar. 31			June 30						June 30
		2007			2007			2006			2007			2006
		(in thousands, except days and per day amounts)
U.S. LAND OPERATIONS
Revenues		$	269,145		$	303,514		$	214,864		$	842,559		$	581,286
Direct operating expenses		132,399			157,758			102,094			417,514			278,360
General and administrative expense		3,151			3,625			2,903			10,228			9,893
Depreciation		23,813			27,512			16,159			72,008			45,457
Segment operating income		$	109,782		$	114,619		$	93,708		$	342,809		$	247,576
Activity days		11,156			12,371			8,716			34,075			24,837
Average rig revenue per day		$	23,032		$	23,401		$	23,503		$	23,537		$	22,138
Average rig expense per day		$	10,774		$	11,619		$	10,565		$	11,063		$	9,941
Average rig margin per day		$	12,258		$	11,782		$	12,938		$	12,474		$	12,197
Rig utilization		97%			96%			100%			97%			98%
U.S. OFFSHORE OPERATIONS
Revenues		$	24,062		$	24,910		$	34,568		$	79,958		$	97,791
Direct operating expenses		17,745			18,620			22,726			57,469			64,854
General and administrative expense		1,435			865			1,319			3,721			4,584
Depreciation		2,684			2,412			2,888			7,866			8,238
Segment operating income		$	2,198		$	3,013		$	7,635		$	10,902		$	20,115
Activity days		522			546			728			1,656			2,071
Average rig revenue per day		$	29,603		$	30,263		$	39,931		$	33,095		$	38,738
Average rig expense per day		$	19,885		$	21,734		$	25,210		$	21,921		$	23,989
Average rig margin per day		$	9,718		$	8,529		$	14,721		$	11,174		$	14,749
Rig utilization		64%			67%			73%			67%			69%

 

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News Release
August 1, 2007

		Three Months Ended									Nine Months Ended
SEGMENT REPORTING		Mar. 31			June 30						June 30
		2007			2007			2006			2007			2006
		(in thousands, except days and per day amounts)
INTERNATIONAL OPERATIONS
Revenues		$	76,591		$	90,073		$	67,831		$	249,278		$	179,205
Direct operating expenses		48,668			52,294			44,258			151,656			122,349
General and administrative expense		1,096			712			1,028			2,408			2,506
Depreciation		5,346			6,654			4,860			17,557			14,251
Segment operating income		$	21,481		$	30,413		$	17,685		$	77,657		$	40,099
Activity days		2,262			2,235			2,300			6,863			6,488
Average rig revenue per day		$	27,001		$	34,200		$	24,698		$	29,583		$	22,746
Average rig expense per day		$	15,722		$	18,246		$	15,096		$	16,253		$	14,570
Average rig margin per day		$	11,279		$	15,954		$	9,602		$	13,330		$	8,176
Rig utilization		93%			90%			93%			93%			88%

 

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

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

Reimbursed amounts were as follows:

U.S. Land Operations		$	12,196		$	14,016		$	10,012		$	40,521		$	31,453
U.S. Offshore Operations		$	3,598		$	3,306		$	2,657		$	10,248		$	9,899
International Operations		$	11,066		$	8,903		$	6,575		$	32,485		$	18,496
REAL ESTATE
Revenues		$	2,738		$	2,777		$	2,533		$	8,414		$	7,732
Direct operating expenses		1,165			890			836			2,898			2,647
Depreciation		612			602			605			1,803			1,814
Segment operating income		$	961		$	1,285		$	1,092		$	3,713		$	3,271

 

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News Release
August 1, 2007

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

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

		Three Months Ended									Nine Months Ended
SEGMENT REPORTING		Mar. 31			June 30						June 30
		2007			2007			2006			2007			2006
Operating Income
U.S. Land		$	109,782		$	114,619		$	93,708		$	342,809		$	247,576
U.S. Offshore		2,198			3,013			7,635			10,902			20,115
International		21,481			30,413			17,685			77,657			40,099
Real Estate		961			1,285			1,092			3,713			3,271
Segment operating income		$	134,422		$	149,330		$	120,120		$	435,081		$	311,061
Corporate general and administrative		(7,668		)	(6,336		)	(7,799		)	(19,144		)	(21,961		)
Other depreciation		(497		)	(945		)	(564		)	(1,994		)	(1,624		)
Inter-segment elimination		521			537			485			1,589			1,385
Gain from involuntary conversion of long-lived assets		5,170			5,900			—			11,070			—
Income from asset sales		32,336			6,186			1,895			39,008			6,431
Operating income		$	164,284		$	154,672		$	114,137		$	465,610		$	295,292
Other income (expense):
Interest and dividend income		1,034			962			2,633			3,240			7,619
Interest expense		(1,913		)	(3,260		)	(1,281		)	(6,092		)	(5,807		)
Gain on sale of investment securities		177			25,298			9,390			51,812			12,110
Other		66			120			1,085			250			599
Total other income (expense)		(636		)	23,120			11,827			49,210			14,521
Income before income taxes and equity in income of affiliate		$	163,648		$	177,792		$	125,964		$	514,820		$	309,813

 

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