Helmerich & Payne (HP) reported Q3 2024 results with a revenue of $697.7 million, representing a year-over-year decline of 3.6% but a sequential increase of 1.4% versus Q2 2024. Gross profit was $182.9 million (gross margin 26.2%), and operating income stood at $111.3 million (operating margin ~16.0%). Net income reached $88.7 million or $0.89 per share, down slightly year over year but up modestly on a sequential basis. EBITDA was $224.5 million, yielding an EBITDA margin of about 32.2%. Free cash flow was $63.0 million, supported by operating cash flow of $197.4 million and capital expenditures of $134.4 million, underscoring HP’s ability to generate cash while investing in the fleet and technology platforms.
Balance sheet and liquidity remained solid: cash and cash equivalents of $203.6 million (cash at period end $282.0 million), total debt $545.6 million, and net debt of roughly $342.0 million. The company reported a current ratio of 2.12 and a debt-to-capitalization profile around 16%, signaling balance-sheet resilience in a cyclical drilling environment. Management’s takeaway centered on disciplined capital allocation and ongoing focus on cash generation to fund dividends and optional deleveraging, even in a near-term softer price cycle.
Looking ahead, HP’s quarterly metrics reflect a market that is improving on a sequential basis but remains exposed to cyclicality in oil demand, rig activity, and dayrates. The company benefits from a robust interest coverage profile and a moderate dividend yield, supporting a defensive cash-flow-oriented investment thesis amid a volatile energy-services backdrop. Investors should monitor North American rig activity, utilization, capex cycles by E&P customers, and any shifts in international drilling exposure, as these leverage HP’s top-line trajectory and free-cash-flow generation.”