HPNYSEDrilling Oil & Gas WellsUS GAAP · USD

Helmerich & Payne, Inc.

Helmerich & Payne, Inc. is an oilfield services company that provides performance-driven drilling solutions and related technologies for exploration and production customers. The company’s core business is land drilling, where it operates FlexRig® rigs and drilling services, and it expanded in 2025 through the acquisition of KCA Deutag to add international land and offshore management-contract operations plus manufacturing and engineering capabilities.

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Revenue3,746m USD
+35.9 %y/y
Operating profit (EBIT)3.3m USD
−99.3 %y/y
EBIT margin0.1%
−16.5 ppy/y
Net income-164m USD
−147.6 %y/y
Free cash flow117m USD
−38.5 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

-1,00001,0002,0003,0004,000m USD2020: 1,774 m USD2020: EBIT -620 m USD20202021: 1,219 m USD2021: EBIT -429 m USD20212022: 2,059 m USD2022: EBIT 45 m USD20222023: 2,872 m USD2023: EBIT 562 m USD20232024: 2,757 m USD2024: EBIT 457 m USD20242025: 3,746 m USD2025: EBIT 3.3 m USD20253,7463.3
RevenueOperating profit (EBIT)

Business

Share of revenue
North America land drilling55 %

Contract drilling services and rigs for U.S. and Canadian onshore oil and gas wells, especially shale plays.

International land drilling30 %

Land drilling operations outside North America, including Middle East, South America, Europe and Africa.

Offshore solutions10 %

Asset-light offshore management contracts and related platform rig services, mainly in the North Sea and Africa.

Technology services3 %

Software and drilling technologies that improve drilling efficiency, accuracy and wellbore placement.

BENTEC manufacturing and engineering2 %

Manufacturing and engineering products and services for the energy industry through the acquired KCA Deutag unit.

Customers

H&P sells primarily to oil and gas exploration and production companies that need drilling capacity, rig reliability and operational efficiency. In the U.S., customers are a mix of major, independent, mid-sized and private E&Ps focused on unconventional shale basins; internationally, the customer base includes major international and national oil companies. Offshore solutions also serve customer-owned platforms under management contracts, which makes customer relationships more dependent on long-duration operating performance and contract renewals.

U.S. independent and major E&Ps

Buy land drilling services and FlexRig capacity for shale and unconventional wells; they value efficiency, safety and well quality.

International national and major oil companies

Buy land drilling and offshore services across the Middle East, Europe, Africa and Latin America to support large field development programs.

Offshore platform operators

Buy asset-light management contracts where H&P operates customer-owned rigs and provides drilling execution services.

Private equity-backed E&Ps

Buy flexible drilling capacity for capital-disciplined shale programs and multi-well pad developments.

Strategy

H&P’s strategy is centered on innovation, technology, safety, operational excellence and reliability, with the goal of differentiating its drilling services in a highly competitive market. The KCA Deutag acquisition expands the company beyond U.S. land drilling into international land and offshore markets, improving diversification and creating more contract backlog and earnings visibility. Management also emphasizes disciplined capital allocation, fleet optimization and technology-led rig performance to defend pricing and win long-duration work.

Integrate KCA Deutag and expand international scaleMedium term

The acquisition broadens the customer base, geography and service mix, reducing dependence on U.S. land drilling.

Differentiate through rig technology and operational performanceShort term

Higher-spec rigs and better drilling efficiency support pricing power and customer retention in a competitive market.

Increase earnings visibility through contract backlogMedium term

Longer-term and fixed-term contracts help offset commodity-cycle volatility and improve planning.

Geography

Q1/2026

H&P remains anchored in North America, but the KCA Deutag acquisition materially broadened its footprint into the Middle East, South America, Europe and Africa. The company now has a more balanced mix of U.S. shale exposure and international land/offshore activity, with Saudi Arabia highlighted as a growth driver in recent periods. Geography matters because drilling demand, pricing and contract structures vary sharply by basin and region, while offshore and international operations add exposure to geopolitical and execution risk.

United States59 %
Other countries (US filing)9.3 %
Norway9.2 %
Saudi Arabia7.0 %
Oman6.8 %
AZ5.0 %
Argentina3.9 %

Share of the revenue the company reports by geography.

Risks

H&P is exposed to drilling-cycle volatility because demand depends on E&P capital spending, which moves with oil and gas prices and customer budgets. The company also faces integration, geopolitical and cybersecurity risks as it expands internationally and operates more complex systems across land and offshore markets. Competitive pressure, customer concentration and technology obsolescence can also compress margins or reduce rig utilization.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Commodity-cycle demand volatility1Acquisition integration and execution2Customer concentration and contract non-renewal3Cybersecurity and IT disruption4Geopolitical exposure5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Commodity-cycle demand volatilityImpact: HighLikelihood: High

    Drilling activity depends on customer capital spending, which is driven by oil and gas prices and can change quickly.

    Exposure: Land drilling and offshore contract utilization

  2. Acquisition integration and executionImpact: HighLikelihood: High

    KCA Deutag adds new geographies, operating models and systems, creating integration and synergy risk.

    Exposure: International Solutions and Offshore Solutions

  3. Customer concentration and contract non-renewalImpact: HighLikelihood: Medium

    A small number of customers account for a large share of revenue, so lost contracts can materially affect utilization and pricing.

    Exposure: Top customers and multi-well contracts

  4. Cybersecurity and IT disruptionImpact: HighLikelihood: Medium

    Operational technology and corporate systems are critical to drilling execution and data integrity.

    ExposureRigsVendor systemsRemote workProprietary technology
  5. Geopolitical exposureImpact: MediumLikelihood: High

    Operations in the Middle East, Africa and other international markets can be affected by conflict, sanctions or local instability.

    ExposureSaudi ArabiaNorth SeaAngolaAzerbaijanNorthern Africa

Accounting

Judgemental items
Business combination accounting

The KCA Deutag acquisition requires purchase accounting, fair value estimates and ongoing amortization/impairment judgments.

Impact: Goodwill, intangibles, debt and acquisition-related expenses

Goodwill impairment

The company recorded a non-cash goodwill impairment charge in 2025, showing that reporting unit valuations can change materially.

Impact: Earnings volatility and reduced carrying value of acquired assets

Revenue recognition on drilling contracts

Contract terms vary by fixed-term, well-to-well, mobilization and demobilization provisions, affecting timing of revenue.

Impact: Quarterly revenue comparability and backlog conversion

Deferred taxes and accelerated depreciation

Large rig capital spending has created deferred tax liabilities from temporary differences in depreciation methods.

Impact: Cash tax timing and balance sheet tax balances

Leases and asset utilization

Rig fleets and offshore assets involve lease and utilization assumptions that affect operating costs and balance sheet presentation.

Impact: Operating expense, depreciation and lease liabilities

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Last updated: 24/09/2026