UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): November 10, 2004
HELMERICH & PAYNE, INC.
(Exact name of Registrant as Specified in Charter)
Delaware
1-4221
73-0679879
(State or Other
Jurisdiction of
Incorporation)
(Commission File
Number)
(I.R.S. Employer
Identification
Number)
1437 South Boulder Avenue, Tulsa, Oklahoma
74119
(Address of Principal Executive Offices)
(Zip Code)
(918) 742-5531
N/A
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see General Instruction A.2. below):
| o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION | ||||||||
| SIGNATURES | ||||||||
| Dated: November 10, 2004 | ||||||||
| EXHIBIT INDEX | ||||||||
| Press Release | ||||||||
ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On November 10, 2004, Helmerich & Payne, Inc. (“Registrant”) issued a press release announcing its financial results for its fiscal year ended September 30, 2004. A copy of the press release is attached as Exhibit 99 to this Report on Form 8-K. This information is being furnished pursuant to Item 2.02 of Form 8-K and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly authorized the undersigned to sign this report on its behalf.
|
HELMERICH & PAYNE, INC.
|
||||
| By: | /s/ STEVEN R. MACKEY | |||
| Name: | Steven R. Mackey | |||
| Title: | Vice President | |||
Dated: November 10, 2004
EXHIBIT INDEX
Exhibit No.
Description
Helmerich & Payne, Inc. earnings press release dated November 10, 2004
Exhibit 99
November 10, 2004
HELMERICH & PAYNE, INC. ANNOUNCES EARNINGS FOR FISCAL YEAR 2004
Tulsa, OK — Helmerich & Payne, Inc. announced net income of $4,359,000 ($0.09 per diluted share) from revenues of $620,928,000 for its fiscal year ended September 30, 2004, compared with net income of $17,873,000 ($0.35 per diluted share) from revenues of $515,284,000 for the previous fiscal year. Net income includes gains from the sale of portfolio securities of $0.31 per share for 2004, and $0.07 per share for 2003. As previously announced on October 19, 2004, net income for fiscal 2004 includes a non-cash charge of $51,516,000 ($0.63 per diluted share) for impairment of a portion of the Company’s Gulf of Mexico offshore platform rigs.
Due to the impairment charge, the Company recorded a loss for its fourth fiscal quarter 2004 of $12,624,000 ($0.25 per diluted share) from revenues of $181,410,000, compared with net income of $6,530,000 ($0.13 per diluted share) from revenues of $138,626,000 for last year’s fourth quarter. Included in fourth quarter results were gains from the sale of portfolio securities of $0.16 per share for 2004, and $0.06 per share in 2003.
Operating profit in the Company’s U.S. land rig operations increased to $14,439,000 for the fourth quarter of fiscal 2004, from $6,361,000 for the same period last year, and from $9,579,000 for this year’s third quarter. Average fourth quarter revenue per rig day rose to $12,517 and cash margins per rig day to $4,303, compared with $11,550 revenue per rig day and $3,657 cash margins per rig day for the previous quarter. Average U.S. land rig utilization during the fourth quarter of 2004 was 92%, compared with 83% during last year’s fourth quarter, and 89% during this year’s third quarter.
The Company’s offshore platform rig business reported an operating loss of $47,180,000 for the fourth quarter 2004, compared with an operating profit of $8,860,000 for the fourth quarter of fiscal 2003, and operating profit of $3,826,000 for this year’s third quarter. For quarterly comparisons, the offshore operations would have reported an operating profit of $4,336,000 for the fourth quarter of 2004 without the $51,516,000 impairment charge. Rig utilization was 54% during the quarter, compared with 48% during last year’s fourth quarter, and 52% during this year’s third quarter. As previously announced, the Company retired Rig 108 and currently has five active offshore platform rigs out of its eleven available offshore platform rigs in the Gulf of Mexico.
International operating profit improved significantly during the fourth quarter of 2004 to $6,936,000, from $609,000 for last year’s fourth quarter, and $1,756,000 for this year’s third quarter. In addition to improved operating profit in Venezuela, Ecuador, Argentina and Equatorial Guinea, this quarter’s operating profit included a pre-tax gain of
(over)
Page 2
November 10, 2004
News Release
$1,682,000 from an insurance settlement resulting from rig damage sustained earlier in the year. Fourth quarter cash margins per rig day were $6,048 (excluding effects of the previously mentioned insurance gain), down slightly from $6,103 per rig day during last year’s fourth quarter, but up from the $4,257 per day recorded during this year’s third quarter. Additionally, rig utilization for international operations rose to 57% for the quarter, up from 38% during last year’s fourth quarter, and 53% during this year’s third quarter. The Company has recently shipped five rigs from international locations to the U.S. with four now in transit and one being mobilized for work in Florida. Of the 27 rigs now in international locations, 24 are currently working or committed for work.
Company President and C.E.O., Hans Helmerich commented: “The long-awaited tightening in the U.S. land rig market resulted in significant improvement of land rig revenue and margins per day. While the offshore platform rig business continues to underperform from year ago levels, operating profit (excluding the impairment charge) has been relatively flat for the past four quarters. We are encouraged by the improved operating profit and increased rig activity in both our U.S. and international land rig segments, and believe customer interest and market conditions bode well for 2005 and beyond.”
Separately, the Company reported that during the year-end financial statement closing process, it identified an after-tax gain of $959,000 that related to a non-monetary exchange of an investment security and that should have been recorded in the first quarter of 2004. First quarter net income, earlier reported as $5,629,000 ($0.11 per diluted share), will be reported as $6,588,000 ($0.13 per diluted share) in all future public filings.
Helmerich & Payne, Inc. (HP/NYSE) is a contract drilling company that owns 90 U.S. land rigs, 11 U.S. offshore platform rigs located in the Gulf of Mexico, 26 rigs located in South America, one rig in Hungary and 2 rigs in transit to the U.S. from international operations, for a total of 130 rigs. Included in the total fleet of 130 rigs are 50 H&P-designed and operated FlexRigs.
Helmerich & Payne, Inc.’s conference call/webcast is scheduled for this morning and can be accessed at http:www.hpinc.com under Investor Relations and will begin at 11:00a.m. ET (10:00a.m. CT). If you are unable to participate during the live webcast, the call will be archived for a year on H&P’s website indicated above.
The information to be disclosed in the conference call and webcast shall include forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. Such forward-looking statements are subject to certain risks and uncertainties, as disclosed by H&P from time to time in its filings with the Securities and Exchange Commission. As a result of these factors, H&P’s actual results may differ materially from those indicated or implied by such forward-looking statements.
Contact: Doug Fears
(918) 588-5208
(more)
Page 3
November 10, 2004
HELMERICH & PAYNE, INC.
Unaudited
(in thousands, except per share data)
|
Three Months Ended
|
Fiscal Year Ended
|
|||||||||||||||||||
| June 30 |
September 30
|
September 30
|
||||||||||||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
2004
|
2004
|
2003
|
2004
|
2003
|
|||||||||||||||
|
REVENUES
|
||||||||||||||||||||
|
Operating revenues
|
$ | 147,498 | $ | 167,495 | $ | 132,815 | $ | 593,326 | $ | 507,331 | ||||||||||
|
Income from investments
|
376 | 13,915 | 5,811 | 27,602 | 7,953 | |||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
|
|
147,874 | 181,410 | 138,626 | 620,928 | 515,284 | |||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
|
COSTS AND EXPENSES
|
||||||||||||||||||||
|
Direct operating costs
|
105,302 | 113,142 | 88,408 | 416,631 | 345,537 | |||||||||||||||
|
Depreciation
|
23,934 | 24,821 | 22,817 | 94,425 | 82,513 | |||||||||||||||
|
Asset impairment
|
— | 51,516 | — | 51,516 | — | |||||||||||||||
|
General and administrative
|
9,516 | 9,254 | 9,119 | 37,661 | 41,003 | |||||||||||||||
|
Interest
|
3,114 | 3,247 | 3,240 | 12,695 | 12,289 | |||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
|
|
141,866 | 201,980 | 123,584 | 612,928 | 481,342 | |||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
|
Income (loss) before income taxes and
equity in income (loss) of affiliates
|
6,008 | (20,570 | ) | 15,042 | 8,000 | 33,942 | ||||||||||||||
|
Income tax provision (benefit)
|
2,522 | (7,772 | ) | 6,473 | 4,365 | 14,649 | ||||||||||||||
|
Equity in income (loss) of affiliates
net of income taxes
|
861 | 174 | (2,039 | ) | 724 | (1,420 | ) | |||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
|
NET INCOME (LOSS)
|
$ | 4,347 | $ | (12,624 | ) | $ | 6,530 | $ | 4,359 | $ | 17,873 | |||||||||
|
|
|
|
|
|
|
|||||||||||||||
|
Earnings (loss) per common share:
|
||||||||||||||||||||
|
Basic
|
$ | 0.09 | $ | (0.25 | ) | $ | 0.13 | $ | 0.09 | $ | 0.36 | |||||||||
|
Diluted
|
$ | 0.09 | $ | (0.25 | ) | $ | 0.13 | $ | 0.09 | $ | 0.35 | |||||||||
|
Average common shares outstanding:
|
||||||||||||||||||||
|
Basic
|
50,404 | 50,426 | 50,108 | 50,312 | 50,039 | |||||||||||||||
|
Diluted
|
50,880 | 50,426 | 50,695 | 50,833 | 50,596 | |||||||||||||||
(more)
Page 4
November 10, 2004
HELMERICH & PAYNE, INC.
Unaudited
(in thousands)
|
CONSOLIDATED CONDENSED BALANCE SHEETS
|
9/30/04
|
9/30/03
|
||||||||
|
ASSETS
|
||||||||||
|
Cash and cash equivalents
|
$ | 65,296 | $ | 38,189 | ||||||
|
Other current assets
|
175,327 | 159,342 | ||||||||
|
|
|
|
||||||||
|
Total current assets
|
240,623 | 197,531 | ||||||||
|
|
|
|
||||||||
|
Investments
|
161,532 | 158,770 | ||||||||
|
Net property, plant, and equipment
|
998,674 | 1,058,205 | ||||||||
|
Other assets
|
16,159 | 1,329 | ||||||||
|
|
|
|
||||||||
|
TOTAL ASSETS
|
$ | 1,416,988 | $ | 1,415,835 | ||||||
|
|
|
|
||||||||
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||||
|
Total current liabilities
|
$ | 59,903 | $ | 88,618 | ||||||
|
Total noncurrent liabilities
|
242,975 | 209,966 | ||||||||
|
Long-term notes payable
|
200,000 | 200,000 | ||||||||
|
Total shareholders’ equity
|
914,110 | 917,251 | ||||||||
|
|
|
|
||||||||
|
TOTAL LIABILITIES AND SHAREHOLDERS’EQUITY
|
$ | 1,416,988 | $ | 1,415,835 | ||||||
|
|
|
|
||||||||
(more)
Page 5
November 10, 2004
HELMERICH & PAYNE, INC.
Unaudited
(in thousands)
| Years Ended | ||||||||
| September 30 | ||||||||
|
CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS
|
2004
|
2003
|
||||||
|
OPERATING ACTIVITIES:
|
||||||||
|
Net Income
|
$ | 4,359 | $ | 17,873 | ||||
|
Depreciation
|
94,425 | 82,513 | ||||||
|
Asset impairment
|
51,516 | — | ||||||
|
Changes in assets and liabilities
|
289 | 2,530 | ||||||
|
Gain on sale of assets
|
(28,274 | ) | (9,218 | ) | ||||
|
Non-monetary investment gain
|
(2,521 | ) | — | |||||
|
Other
|
(1,257 | ) | 2,806 | |||||
|
|
|
|
||||||
|
Net cash provided by operating activities
|
118,537 | 96,504 | ||||||
|
|
|
|
||||||
|
INVESTING ACTIVITIES:
|
||||||||
|
Capital expenditures
|
(88,972 | ) | (246,301 | ) | ||||
|
Proceeds from sale of assets
|
38,944 | 24,935 | ||||||
|
|
|
|
||||||
|
Net cash used in investing activities
|
(50,028 | ) | (221,366 | ) | ||||
|
|
|
|
||||||
|
FINANCING ACTIVITIES:
|
||||||||
|
Net proceeds (payments) from notes payable
|
(30,000 | ) | 130,000 | |||||
|
Dividends paid
|
(16,372 | ) | (16,026 | ) | ||||
|
Proceeds from exercise of stock options
|
4,970 | 2,194 | ||||||
|
|
|
|
||||||
|
Net cash (used in) provided by financing activities
|
(41,402 | ) | 116,168 | |||||
|
|
|
|
||||||
|
Net increase (decrease) in cash and cash equivalents
|
27,107 | (8,694 | ) | |||||
|
Cash and cash equivalents, beginning of period
|
38,189 | 46,883 | ||||||
|
|
|
|
||||||
|
Cash and cash equivalents, end of period
|
$ | 65,296 | $ | 38,189 | ||||
|
|
|
|
||||||
(more)
Page 6
November 10, 2004
| SEGMENT REPORTING |
Three Months Ended
|
Fiscal Year Ended
|
||||||||||||||||||
| June 30 |
September 30
|
September 30
|
||||||||||||||||||
|
2004
|
2004
|
2003
|
2004
|
2003
|
||||||||||||||||
| (Amounts in thousands, except operating statistics) | ||||||||||||||||||||
|
US LAND OPERATIONS
|
||||||||||||||||||||
|
Revenues
|
$ | 88,642 | $ | 100,638 | $ | 75,507 | $ | 347,793 | $ | 273,993 | ||||||||||
|
Direct operating expenses
|
62,784 | 68,960 | 54,079 | 246,177 | 201,398 | |||||||||||||||
|
General and administrative expense
|
1,831 | 2,142 | 1,711 | 7,765 | 9,304 | |||||||||||||||
|
Depreciation
|
14,448 | 15,097 | 13,356 | 56,528 | 44,726 | |||||||||||||||
|
Operating profit
|
$ | 9,579 | $ | 14,439 | $ | 6,361 | $ | 37,323 | $ | 18,565 | ||||||||||
|
|
|
|
|
|
|
|||||||||||||||
|
Activity days
|
7,071 | 7,363 | 6,304 | 27,472 | 22,588 | |||||||||||||||
|
Average rig revenue per day
|
$ | 11,550 | $ | 12,517 | $ | 11,236 | $ | 11,700 | $ | 11,436 | ||||||||||
|
Average rig expense per day
|
$ | 7,893 | $ | 8,214 | $ | 7,837 | $ | 7,978 | $ | 8,221 | ||||||||||
|
Average rig margin per day
|
$ | 3,657 | $ | 4,303 | $ | 3,399 | $ | 3,722 | $ | 3,215 | ||||||||||
|
Rig utilization
|
89 | % | 92 | % | 83 | % | 87 | % | 81 | % | ||||||||||
|
|
||||||||||||||||||||
|
US OFFSHORE OPERATIONS
|
||||||||||||||||||||
|
Revenues
|
$ | 21,266 | $ | 23,961 | $ | 26,247 | $ | 84,993 | $ | 112,633 | ||||||||||
|
Direct operating expenses
|
13,615 | 15,653 | 13,449 | 52,987 | 60,589 | |||||||||||||||
|
General and administrative expense
|
792 | 968 | 626 | 3,256 | 2,939 | |||||||||||||||
|
Depreciation
|
3,033 | 3,004 | 3,312 | 12,107 | 12,799 | |||||||||||||||
|
Asset impairment
|
— | 51,516 | — | 51,516 | — | |||||||||||||||
|
Operating profit (loss)
|
$ | 3,826 | $ | (47,180 | ) | $ | 8,860 | $ | (34,873 | ) | $ | 36,306 | ||||||||
|
|
|
|
|
|
|
|||||||||||||||
|
Activity days
|
572 | 601 | 529 | 2,088 | 2,233 | |||||||||||||||
|
Average rig revenue per day
|
$ | 27,963 | $ | 28,380 | $ | 37,514 | $ | 29,432 | $ | 38,239 | ||||||||||
|
Average rig expense per day
|
$ | 16,347 | $ | 17,377 | $ | 17,067 | $ | 16,509 | $ | 17,822 | ||||||||||
|
Average rig margin per day
|
$ | 11,616 | $ | 11,003 | $ | 20,447 | $ | 12,923 | $ | 20,417 | ||||||||||
|
Rig utilization
|
52 | % | 54 | % | 48 | % | 48 | % | 51 | % | ||||||||||
| *NOTE: | The following is a reconciliation of operating profit (loss) for the offshore platform segment for the fourth quarter of 2004, which is provided to assist with quarterly comparisons. |
(more)
Page 7
November 10, 2004
| SEGMENT REPORTING |
Three Months Ended
|
Fiscal Year Ended
|
||||||||||||||||||
| June 30 |
September 30
|
September 30
|
||||||||||||||||||
|
2004
|
2004
|
2003
|
2004
|
2003
|
||||||||||||||||
| (Amounts in thousands) | ||||||||||||||||||||
|
INTERNATIONAL OPERATIONS
|
||||||||||||||||||||
|
Revenues
|
$ | 35,497 | $ | 39,780 | $ | 26,856 | $ | 150,698 | $ | 109,812 | ||||||||||
|
Direct operating expenses
|
28,210 | 27,050 | 20,429 | 113,988 | 81,461 | |||||||||||||||
|
General and administrative expense
|
428 | 527 | 723 | 2,144 | 3,110 | |||||||||||||||
|
Depreciation
|
5,103 | 5,267 | 5,095 | 20,530 | 20,092 | |||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
|
Operating profit
|
$ | 1,756 | $ | 6,936 | $ | 609 | $ | 14,036 | $ | 5,149 | ||||||||||
|
Activity days
|
1,567 | 1,692 | 1,108 | 6,266 | 4,515 | |||||||||||||||
|
Average rig revenue per day
|
$ | 18,833 | $ | 19,781 | $ | 19,820 | $ | 19,884 | $ | 19,603 | ||||||||||
|
Average rig expense per day
|
$ | 14,576 | $ | 12,739 | $ | 13,717 | $ | 14,278 | $ | 14,140 | ||||||||||
|
Average rig margin per day
|
$ | 4,257 | $ | 7,042 | $ | 6,103 | $ | 5,606 | $ | 5,463 | ||||||||||
|
Rig utilization
|
53 | % | 57 | % | 38 | % | 54 | % | 39 | % | ||||||||||
Per day calculations for international operations exclude gains and losses from translation of foreign currency transactions.
Included in international operations revenue and margin per day calculation for the fourth quarter and fiscal 2004 is an insurance gain of $1.68 million. Without the insurance gain, the revenue per day and margin per day would have been $18,787 and $6,048, respectively, in the fourth quarter of 2004. For the fiscal year, the revenue and margin would have been $19,616 and $5,338, respectively.
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.
(more)
Page 8
November 10, 2004
The following table reconciles segment operating profit (loss) per the information above to income (loss) before income taxes and equity in income (loss) of affiliates as reported on the Consolidated Condensed Statements of Operations (in thousands).
| SEGMENT REPORTING |
Three Months Ended
|
Fiscal Year Ended
|
||||||||||||||||||||||
| June 30 |
September 30
|
September 30
|
||||||||||||||||||||||
|
2004
|
2004
|
2003
|
2004
|
2003
|
||||||||||||||||||||
|
Operating Profit (Loss)
|
||||||||||||||||||||||||
|
US Land
|
$ | 9,579 | $ | 14,439 | $ | 6,361 | $ | 37,323 | $ | 18,565 | ||||||||||||||
|
US Offshore
|
3,826 | (47,180 | ) | 8,860 | (34,873 | ) | 36,306 | |||||||||||||||||
|
International
|
1,756 | 6,936 | 609 | 14,036 | 5,149 | |||||||||||||||||||
|
Real Estate
|
862 | 1,077 | 3,232 | 4,242 | 6,569 | |||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||
|
Segment operating profit (loss)
|
$ | 16,023 | $ | (24,728 | ) | $ | 19,062 | $ | 20,728 | $ | 66,589 | |||||||||||||
|
Unallocated amounts:
|
||||||||||||||||||||||||
|
Income from investments
|
376 | 13,915 | 5,811 | 27,602 | 7,953 | |||||||||||||||||||
|
Corporate general & administrative
|
(6,465 | ) | (5,617 | ) | (6,059 | ) | (24,496 | ) | (25,650 | ) | ||||||||||||||
|
Interest expense
|
(3,114 | ) | (3,247 | ) | (3,240 | ) | (12,695 | ) | (12,289 | ) | ||||||||||||||
|
Other depreciation
|
(771 | ) | (864 | ) | (510 | ) | (3,007 | ) | (2,361 | ) | ||||||||||||||
|
Other expense
|
(41 | ) | (29 | ) | (22 | ) | (132 | ) | (300 | ) | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||
|
Total unallocated amounts
|
(10,015 | ) | 4,158 | (4,020 | ) | (12,728 | ) | (32,647 | ) | |||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||
|
Income (loss) before income taxes and equity
in income (loss) of affiliates
|
$ | 6,008 | $ | (20,570 | ) | $ | 15,042 | $ | 8,000 | $ | 33,942 | |||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||
###