Helmerich & Payne (HP) investor relations material

Executive summary

• Delivered resilient Q2 2026 results amid Middle East conflict, maintaining operational continuity and safety focus, with a new CEO appointed in March 2026.

• Adjusted EBITDA was $178M, with revenues of $932M, and net loss of $59M ($0.59 per share), including $26M in non-cash impairment; adjusted net loss was $38M ($0.38 per share).

• Successfully closed the Utica Square sale, generating after-tax proceeds exceeding $100M, enabling early repayment of a $400M term loan and strengthening the balance sheet.

• North America Solutions (NAS) averaged 136 rigs, slightly ahead of expectations, with strong technology adoption and margin leadership.

• Offshore segment outperformed, securing a major BP contract extension in the Caspian Sea and benefiting from long-term contracts.

Financial highlights

• Q2 2026 revenue was $932M, adjusted EBITDA $178M (19% margin), and net loss $59M; adjusted EPS was $(0.38).

• Free cash flow was negative due to timing of receivables, but $74M excluding working capital changes.

• CapEx for Q2 was $52M–$63M, trending below anticipated levels due to reclassification and capital efficiency.

• Cash and cash equivalents at quarter-end were $177M, with total liquidity of $1.1B including undrawn credit facility.

• Net debt reduced by $400M following early retirement of the term loan.

Outlook and guidance

• NAS Q3 direct margins expected at $230M–$240M, with rig count guidance raised to 137–144 for the year.

• International Solutions Q3 rig count expected at 58–68; direct margin guidance $12M–$32M, with $6M impact from supply chain constraints if Strait of Hormuz remains closed.

• Offshore Q3 direct margin guidance: $24M–$28M; full-year guidance $100M–$115M.

• FY26 gross capital expenditures projected at $270M–$310M.

• Free cash flow conversion for the year expected at ~30%, rising to 40%–45% by 2027–2028.