Helmerich & Payne (H&P) has announced its quarterly dividend and provides an operational and capital expenditures update.
On 4 September 4 2019, the Board of Directors of H&P held a meeting and declared a quarterly cash dividend of $0.71 per share on its common stock, payable on 2 December 2019, to stockholders of record at the close of business on 11 November 2019.
US Land Operations
Quarter-to-date, the company’s average US land rig count is approximately 206, with 200 active as of 4 September 2019. This level of activity is consistent with H&P’s previously provided guidance, which stated the company expects quarterly revenue days to decrease by approximately 5-6%, sequentially representing a roughly 6-7% decrease in the average number of active rigs. H&P expects to exit the quarter at the low end of its previously guided range of 193-203 rigs.
International Land Operations
The company is currently in the process of determining the impacts, if any, on its business and financial position in Argentina related to two recent governmental decrees that impact both the exchange rate and currency controls. During the most recent quarter ended 30 June 2019, approximately 8% of the company’s consolidated revenue was generated from its international operations of which approximately 88% was from the company’s Argentine operations. H&P currently has 16 rigs operating in Argentina, of which eight are under term contract with YPF.
Capex for Fiscal 2019
H&P previously stated expectations for its fiscal 2019 capital expenditures to be at the low end of its $500-530 million guidance range. The company now expects total capital expenditures to be $5-15 million below the low end of that guidance range, with the final outcome dependent on the timing of certain procurement activities in late fiscal 2019 and early fiscal 2020.
Capex for Fiscal 2020
The company is proposing a preliminary capital expenditure budget for fiscal 2020 of approximately $300 million, which includes $35 million related to adding additional super-spec walking capabilities in US land, as well as select international super-spec upgrades should the demand for such rigs develop in fiscal 2020. Formal approval of the fiscal 2020 capital expenditure budget by the board of directors is expected to occur during Q1 2020.