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what it is
It rents out drilling rigs, crews, camps, and related services to oil and gas producers that need wells drilled fast.
how it gets paid
Last year Helmerich & Payne made $3.7B in revenue.
why it's growing
Revenue grew 34.0% last year. Revenue growth was strong, but the real number was EPS below zero because it shows higher activity is not turning into durable profit yet.
what just happened
Latest quarter revenue hit $981M, up 45% vs. prior year, but EPS still came in negative.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
10/100 earnings predictability — expect surprises
32.5x trailing p/e — you're paying up for this one
3.3% dividend yield — cash in your pocket every quarter
6.0% return on capital — nothing to write home about
xvary composite: 63/100 — average
What they do
It rents out drilling rigs, crews, camps, and related services to oil and gas producers that need wells drilled fast.
This business wins on availability. H&P had 262 rigs on 12/31/24 and a $1.5 billion backlog, up from $1.4 billion a year earlier, so when your customer needs a rig now, H&P usually has one. Backlog (contracted future work) → work already booked → so what: you are not betting on a PowerPoint, you are betting on rigs that already have jobs.
How they make money
$3.7B
annual revenue · their business grew +34.0% last year
total revenue
$3.7B
+34.0%
The products that matter
drills wells on U.S. land
U.S. Land Drilling
$3.44B · 93% of revenue
it's the entire story for now: $3.44B of a $3.7B revenue base. if this segment slows, almost everything slows with it.
93% of revenue
drills wells outside the U.S.
International Land Drilling
$0.19B · 5% of revenue
this is the diversification angle, but it's still only $0.19B. until it grows meaningfully, it doesn't change the company-wide risk profile.
5% of revenue
offshore drilling services
Offshore Gulf of Mexico
$0.07B · 2% of revenue
at $0.07B, this segment is too small to carry results. it's there, but it won't rescue a weak U.S. land market.
2% of revenue
Key numbers
$1.5B
contract backlog
Backlog means signed future work. Plain English: customers already committed about half of the company's market cap in future revenue.
0.1%
operating margin
Operating margin is profit after running the business. So what: H&P is doing a lot of work for almost no operating profit.
$2.1B
long-term debt
Debt equals 41% of capital, which is fine in a steady business and less fun in one tied to oil prices.
262
rig fleet
Scale matters in drilling because customers pay for uptime and availability. A 262-rig fleet gives H&P real reach.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 25 / 100
- long-term debt $2.1B (41% of capital)
- net profit margin 5.7% — keeps 6 cents of every dollar in revenue
- return on equity 8% — $0.08 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in HP 3 years ago → it's now worth $7,000.
The index would have given you $14,770.
source: institutional data · total return
What just happened
missed estimates
Latest quarter revenue hit $981M, up 45% vs. prior year, but EPS still came in negative.
That is the quiet part said out loud. Sales grew 45%, yet the latest quarter still posted a loss, which lines up with the 0.1% operating margin in the base data.
$981M
revenue
-$0.98
eps
n/a
n/a
the number that mattered
Revenue growth was strong, but the real number was EPS below zero because it shows higher activity is not turning into durable profit yet.
-
helmerich & payne (h&p) shares have recently defied lower oil prices.
-
early last year, the price of a barrel of crude fell from $74 to a then-low of $55 in may.
-
the oil price decline, and the uncertainty it would have on the newly leveraged h&p, sent the shares down 60% at the time.they have since doubled from their mid-year bottom, although the price of crude is only marginally higher. a large factor appears to have been investor relief that the sizable kca deutag acquisition, completed in the second quarter of last year, was not the drag that had been feared. the $2 billion deal added kca's network of 26 non-u.s. countries, 11,000 employees, and 167 drilling rigs.
-
it created the largest international rig company by fleet size.the transaction appeared favorable when it was agreed upon at much higher oil prices, but, in hindsight, it proved expensive, and increased h&p's leverage to the price of oil.
-
the results, though, have been better than expected.despite low oil prices in the fiscal fourth quarter (year ends september 30th), the company has repaid $210 million on the $400 million loan taken to complete the acquisition.
source: company earnings report, 2026
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What could go wrong
the #1 risk is u.s. land drilling demand rolling over.
high
U.S. drilling slowdown
U.S. Land Drilling produces $3.44B of revenue, or 93% of the total. If producer budgets tighten, HP feels it almost everywhere at once.
93% revenue concentration means one weak market can pressure most of the $3.7B business.
high
Thin margins leave no cushion
A 1.1% net margin means HP keeps about one cent on each revenue dollar. Small pricing misses, idle rigs, or cost creep can wipe that out fast.
When profit margins are this thin, revenue stability alone does not protect EPS.
med
Leverage plus payout pressure
Long-term debt is $2.1B, or 41% of capital, while the stock still yields 3.3%. That works better in an upcycle than in a weak earnings stretch.
If earnings stay soft, debt service and the $1.00 annual dividend compete for the same cash.
When 93% of revenue comes from one segment and net margin is 1.1%, you do not need a dramatic downturn to pressure earnings.
source: institutional data · regulatory filings · risk analysis
Pay attention to
key metric
return on capital vs. the 2.0% baseline
if this stays stuck around 2.0%, the market is paying a premium multiple for a business that still is not earning much on its asset base.
next report
whether EPS gets back above zero
latest quarter revenue was $1.0B, but EPS was -$0.98. the recovery story needs both lines moving in the same direction.
business mix
whether international gets bigger than 5%
international land drilling is only $0.19B today. if it stays that small, HP remains overwhelmingly tied to the U.S. land cycle.
flow
institutional selling streak
institutions were net sellers for 2 straight quarters, with 163 buyers versus 168 sellers in 3q2025. not a panic signal, but not a vote of confidence either.
Analyst rankings
short-term outlook
top 20%
outlook rank 2 — analysts expect above-average price performance in the year ahead. in human-speak, they think the stock can bounce.
risk profile
average
risk rank 3 — this sits near the middle of the pack. not a bunker stock, not a chaos machine.
chart momentum
average
momentum rank 3 — the chart is not giving you a strong signal either way.
earnings predictability
10 / 100
earnings predictability is weak. in human-speak, expect messy quarters and bigger revisions than you would like.
source: institutional data
Institutional activity
institutions have been net selling for 2 consecutive quarters — 163 buyers vs. 168 sellers in 3q2025. total institutional holdings: 97.9M shares. net selling for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$11
$41
$31
current price
$26
target midpoint · 15% from current · 3-5yr high: $50 (+65% · 15% ann'l return)
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