SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report: April 24, 2003
Delaware 1-4221 73-0679879 -------------------------------------------------------------------------------- (State or other (Commission File (I.R.S. Employer jurisdiction of Number) Identification incorporation) Number) |
Page 1 of 7 Pages.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits
99.1 Helmerich & Payne, Inc. earnings press release dated April 24, 2003.
ITEM 9. REGULATION FD DISCLOSURE
On April 24, 2003, Helmerich & Payne, Inc. ("Registrant") announced its financial results for its second quarter ended March 31, 2003. A copy of the press release is furnished to the United States Securities and Exchange Commission (the "Commission") with this current report on Form 8-K as an exhibit. The information in this current report is being furnished pursuant to Item 12 under Item 9 of Form 8-K as directed by the Commission in Release No. 34-47583.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
HELMERICH & PAYNE, INC.
By: /s/ STEVEN R. MACKEY
---------------------------------------
Name: Steven R. Mackey
Title: Vice President
Dated: April 24, 2003
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EXHIBIT INDEX
Exhibit No. Description ----------- ----------- 99.1 Helmerich & Payne, Inc. earnings press release dated April 24, 2003 |
EXHIBIT 99.1
APRIL 24, 2003
HELMERICH & PAYNE ANNOUNCES SECOND QUARTER EARNINGS
TULSA, OK. -- HELMERICH & PAYNE, INC. ANNOUNCED NET INCOME OF $2,574,000 ($0.05 PER DILUTED SHARE) FROM REVENUES OF $126,320,000 FOR THE SECOND QUARTER ENDED MARCH 31, 2003, COMPARED WITH NET INCOME FROM CONTINUING OPERATIONS OF $8,129,000 ($0.16 PER DILUTED SHARE) FROM REVENUES OF $132,344,000 FOR THE SECOND QUARTER OF THE PRIOR FISCAL YEAR. NET INCOME FOR THE FIRST SIX MONTHS OF THIS FISCAL YEAR TOTALED $3,181,000 ($0.06 PER DILUTED SHARE) FROM REVENUES OF $239,633,000, COMPARED WITH NET INCOME FROM CONTINUING OPERATIONS OF $26,256,000 ($0.52 PER DILUTED SHARE) FROM REVENUES OF $276,227,000 FOR THE SAME PERIOD LAST YEAR. LAST YEAR'S NET INCOME FROM CIMAREX ENERGY CO. (THE COMPANY'S FORMER EXPLORATION AND PRODUCTION COMPANY THAT WAS SPUN OFF SEPTEMBER 30, 2002) IS REPORTED AS INCOME FROM DISCONTINUED OPERATIONS OF AN ADDITIONAL $0.06 AND $0.01 PER DILUTED SHARE FOR THE THREE AND SIX MONTHS PERIOD ENDING MARCH 31, 2002.
TOTAL SECOND QUARTER NET INCOME FOR THE COMPANY WAS DOWN COMPARED TO LAST YEAR'S SECOND QUARTER DUE TO HIGHER DEPRECIATION, INTEREST AND G&A EXPENSES, LOWER DAYRATES AND MARGINS IN THE COMPANY'S U.S. LAND RIG BUSINESS, AND LOWER RIG UTILIZATIONS IN THE COMPANY'S U.S. OFFSHORE PLATFORM AND INTERNATIONAL BUSINESSES. SECOND QUARTER NET INCOME WAS UP SEQUENTIALLY DUE TO REDUCED COSTS IN THE COMPANY'S U.S. LAND RIG OPERATIONS, IMPROVED MARGINS IN ITS U.S. PLATFORM RIG BUSINESS, AND IMPROVED UTILIZATION IN ITS INTERNATIONAL LAND RIG OPERATIONS. (SEE ACCOMPANYING FINANCIALS FOR SPECIFIC OPERATING STATISTICS.)
IN THE COMPANY'S INTERNATIONAL RIG BUSINESS, ADDITIONAL RIGS WORKING IN VENEZUELA AND COLOMBIA HELPED PUSH RIG UTILIZATION AND OPERATING PROFITS UP SLIGHTLY FROM THE PREVIOUS QUARTER. THE COMPANY CURRENTLY HAS FIVE RIGS WORKING IN ITS VENEZUELA OPERATION, ONE IN COLOMBIA, SEVEN IN ECUADOR, ONE IN BOLIVIA, AND A LABOR CONTRACT OFFSHORE EQUATORIAL GUINEA. THE COMPANY PLANS DURING THE CURRENT QUARTER TO SEND ONE LAND RIG FROM ITS U.S. FLEET TO HUNGARY ON A SHORT-TERM CONTRACT. THE COMPANY ALSO RECENTLY SOLD THREE SMALL INACTIVE RIGS LOCATED IN THE LAKE MARACAIBO REGION OF VENEZUELA.
TOTAL DEPRECIATION EXPENSE FOR THE SECOND QUARTER WAS $19,943,000, COMPARED WITH $15,046,000 FOR LAST YEAR'S SECOND QUARTER AND $18,236,000 FOR THE FIRST QUARTER OF FISCAL YEAR 2003. THE INCREASE WAS PRIMARILY DUE TO THE COMPLETION OF CONSTRUCTION OF APPROXIMATELY TWO FLEXRIGS(TM)* EACH MONTH SINCE JUNE 2002. THE COMPANY INCURRED HIGHER INTEREST EXPENSE IN THE SECOND QUARTER COMPARED WITH LAST YEAR'S SECOND QUARTER AND THE PREVIOUS QUARTER DUE TO THE PLACEMENT OF $200,000,000 OF INTERMEDIATE TERM DEBT, HALF OF WHICH WAS PLACED ON AUGUST 15, 2002, AND THE OTHER HALF PLACED ON OCTOBER 15, 2002. GENERAL AND ADMINISTRATIVE EXPENSES WERE HIGHER IN THE CURRENT YEAR'S SECOND QUARTER COMPARED WITH LAST YEAR'S SECOND QUARTER MAINLY DUE TO INCREASES IN PENSION AND HEALTH INSURANCE COSTS, AND UP SEQUENTIALLY DUE TO HIGHER PAYROLL AND ASSOCIATED EMPLOYEE BENEFIT COSTS.
*FLEXRIG(TM) HEREINAFTER REFERRED TO AS FLEXRIG
(OVER)
APRIL 24, 2003
NEWS RELEASE
COMPANY PRESIDENT AND C.E.O., HANS HELMERICH COMMENTED, "AT THE END OF THE QUARTER, INDUSTRY RIG COUNTS WERE FINALLY RESPONDING TO THE STRONG NATURAL GAS FUNDAMENTALS. WE ANTICIPATE THAT BETTER COST CONTAINMENT AND IMPROVING DAYRATES WILL ADD TO OUR OPERATING MARGINS. UNFORTUNATELY, THE SOFTNESS IN THE GULF OF MEXICO PLATFORM MARKET AND THE INTERNATIONAL DRILLING MARKETS HAMPER EARNINGS AS THEY WILL BE SLOWER TO RECOVER."
THE COMPANY DID NOT ALTER THE EARNINGS GUIDANCE IT PROVIDED THE PREVIOUS QUARTER, WHICH WAS FOR ONLY SLIGHT IMPROVEMENT IN EARNINGS FOR ITS THIRD AND FOURTH QUARTERS.
HELMERICH & PAYNE, INC. (HP/NYSE) IS A CONTRACT DRILLING COMPANY THAT OWNS 78 U.S. LAND RIGS, 12 U.S. PLATFORM RIGS LOCATED IN THE GULF OF MEXICO, AND 31 INTERNATIONAL LAND RIGS, OR A TOTAL OF 121 RIGS. OF THE 78 U.S. LAND RIGS CURRENTLY AVAILABLE, 38 ARE H&P-DESIGNED FLEXRIGS. THE COMPANY IS SCHEDULED TO COMPLETE THE CONSTRUCTION OF AN ADDITIONAL FOUR FLEXRIGS TO BE PUT IN SERVICE BY JUNE 2003.
HELMERICH & PAYNE, INC.'S CONFERENCE CALL/WEBCAST IS SCHEDULED FOR THIS
AFTERNOON AT 3:30 ET (2:30 CT). GO TO
HTTP://WWW.FIRSTCALLEVENTS.COM/SERVICE/AJWZ378570134GF12.HTML. IF YOU ARE UNABLE
TO PARTICIPATE DURING THE LIVE WEBCAST, THE CALL WILL BE ARCHIVED FOR 60 DAYS ON
THE WEBSITE LISTED ABOVE AS WELL AS ON H&P'S WEBSITE AT WWW.HPINC.COM.
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) 748-5208
(MORE)
APRIL 24, 2003
NEWS RELEASE
HELMERICH & PAYNE, INC.
UNAUDITED
(IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED SIX MONTHS ENDED
MARCH 31 MARCH 31
2003 2002 2003 2002
---------- ---------- ---------- ----------
CONSOLIDATED STATEMENTS OF INCOME
REVENUES:
Operating revenues(A) $ 125,291 $ 130,816 $ 237,814 $ 273,392
Income from investments 1,029 1,528 1,819 2,835
---------- ---------- ---------- ----------
126,320 132,344 239,633 276,227
---------- ---------- ---------- ----------
COST AND EXPENSES:
Operating costs(A) 91,314 97,477 177,164 193,649
Depreciation 19,943 15,046 38,179 28,879
General and administrative 7,575 6,117 13,761 10,600
Interest 3,032 338 5,802 730
---------- ---------- ---------- ----------
121,864 118,978 234,906 233,858
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INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES AND EQUITY IN INCOME
OF AFFILIATES 4,456 13,366 4,727 42,369
PROVISION FOR INCOME TAXES 1,915 6,007 2,032 17,975
EQUITY IN INCOME OF AFFILIATES,
net of income taxes 33 770 486 1,862
---------- ---------- ---------- ----------
INCOME FROM CONTINUING OPERATIONS 2,574 8,129 3,181 26,256
INCOME FROM DISCONTINUED OPERATIONS -- 2,743 -- 220
---------- ---------- ---------- ----------
NET INCOME $ 2,574 $ 10,872 $ 3,181 $ 26,476
========== ========== ========== ==========
BASIC EARNINGS PER COMMON SHARE:
INCOME FROM CONTINUING OPERATIONS $ 0.05 $ 0.16 $ 0.06 $ 0.52
INCOME FROM DISCONTINUED OPERATIONS -- 0.06 -- 0.01
---------- ---------- ----------
NET INCOME $ 0.05 $ 0.22 $ 0.06 $ 0.53
========== ========== ========== ==========
DILUTED EARNINGS PER COMMON SHARE:
INCOME FROM CONTINUING OPERATIONS $ 0.05 $ 0.16 $ 0.06 $ 0.52
INCOME FROM DISCONTINUED OPERATIONS -- 0.06 -- 0.01
---------- ---------- ---------- ----------
NET INCOME $ 0.05 $ 0.22 $ 0.06 $ 0.53
========== ========== ========== ==========
Average common shares outstanding:
Basic 50,023 49,788 50,001 49,762
Diluted 50,539 50,265 50,503 50,171
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(more)
APRIL 24, 2003
NEWS RELEASE
HELMERICH & PAYNE, INC.
UNAUDITED
(IN THOUSANDS)
THREE MONTHS ENDED SIX MONTHS ENDED
MARCH 31 MARCH 31
2003 2002 2003 2002
---------- ---------- ---------- ----------
FINANCIAL RESULTS - LINES OF BUSINESS
SALES AND OTHER REVENUES(A):
Contract Drilling - Domestic $ 93,491 $ 85,728 $ 180,240 $ 183,386
Contract Drilling - International 29,451 43,546 52,975 85,955
---------- ---------- ---------- ----------
Total Contract Drilling 122,942 129,274 233,215 269,341
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Real Estate Division 2,517 1,965 4,748 4,460
Investments Income 1,029 1,528 1,819 2,835
Other Revenues (168) (423) (149) (409)
---------- ---------- ---------- ----------
Total Revenues $ 126,320 $ 132,344 $ 239,633 $ 276,227
========== ========== ========== ==========
OPERATING PROFIT:
Contract Drilling - Domestic $ 12,267 $ 13,533 $ 20,893 $ 41,349
Contract Drilling - International 1,248 4,416 656 8,293
---------- ---------- ---------- ----------
Total Contract Drilling Division 13,515 17,949 21,549 49,642
---------- ---------- ---------- ----------
Real Estate Division 1,360 1,336 2,526 2,733
---------- ---------- ---------- ----------
Total Operating Profit 14,875 19,285 24,075 52,375
---------- ---------- ---------- ----------
OTHER (10,419) (5,919) (19,348) (10,006)
INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES AND EQUITY
---------- ---------- ---------- ----------
IN INCOME OF AFFILIATES $ 4,456 $ 13,366 $ 4,727 $ 42,369
========== ========== ========== ==========
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(A) The Company accounts for reimbursement of "out-of-pocket" expenses in accordance with Emerging Issues Task Force (EITF) No. 01-14, "Income Statement Characterization of Reimbursements Received for Out-of-Pocket Expenses Incurred." EITF 01-14 requires that reimbursements received be included in operating revenues and "out-of-pocket" expenses be included in direct costs. Accordingly, such reimbursements and expenses have been appropriately classified, resulting in revenues and operating costs for the three and six month periods ending March 31, 2002 increasing from previously reported amounts by $11.4 million and $20.3 million, respectively. These reclassifications had no impact on net income.
(more)
APRIL 24, 2003
NEWS RELEASE
HELMERICH & PAYNE, INC.
UNAUDITED
(IN THOUSANDS)
3/31/03 09/30/02
---------- ----------
CONSOLIDATED CONDENSED BALANCE SHEET
ASSETS
Cash $ 43,248 $ 46,883
Accounts Receivable 89,915 92,604
Inventories 22,111 22,511
Other current assets 20,597 16,753
---------- ----------
Total current assets $ 175,871 $ 178,751
---------- ----------
Investments 150,425 146,855
Net property, plant, and equipment 995,183 897,445
Other assets 20,603 4,262
---------- ----------
TOTAL ASSETS $1,342,082 $1,227,313
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Total current liabilities $ 70,735 $ 72,899
Total noncurrent liabilities 178,158 159,244
Long-term debt 200,000 100,000
Total Shareholders' Equity 893,189 895,170
---------- ----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $1,342,082 $1,227,313
========== ==========
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HELMERICH & PAYNE, INC.
OPERATING STATISTICS(B)
FIRST
SECOND QUARTER QUARTER
2003 2002 2003
-------- -------- --------
U.S. LAND
Revenue Days 5,357 3,985 5,015
Average Rig Revenue Per Day $ 11,433 $ 12,386 $ 11,316
Average Rig Margin Per day $ 3,162 $ 3,545 $ 2,835
Utilization 80% 76% 79%
U.S. PLATFORM
Revenue Days 540 804 572
Average Rig Revenue Per Day $ 38,139 $ 30,624 $ 36,087
Average Rig Margin Per Day $ 20,234 $ 13,069 $ 18,658
Utilization 50% 89% 52%
INTERNATIONAL
Revenue Days 1,205 1,663 991
Average Rig Revenue Per Day $ 19,356 $ 21,777 $ 18,666
Average Rig Margin Per Day $ 5,229 $ 7,109 $ 3,854
Utilization 41% 58% 33%
TOTAL CAPITAL EXPENDITURES $ 68,548 $ 76,469 $ 69,255
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(B) Operating statistics exclude the effects of labor contracts, and do not include reimbursements and "out-of-pocket" expenses (see Note A) in revenue per day and margin calculations.
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