May 25, 2013
(Stock Blog Hub, 4/12/13)
On Apr 9, Zacks Investment Research upgraded contract drilling services provider Helmerich & Payne Inc. (HP) to a Zacks Rank #2 (Buy). Why the Upgrade? Helmerich & Payne has been...(read more)
Not to buy is an active decision. I took a serious look at Helmerich & Payne and, though we really liked the company, my conclusion was not to buy the stock at this price (see analysis). However,...(read more)
(Phil’s Stock World, 12/30/11)
Courtesy of Benzinga. A number of very embarrassing details surrounding former Hewlett-Packard (NYSE: HP) CEO Mark Hurd's resignation from the company [...]
Helmerich & Payne (HP) Company Overview
oilfield services companies with the ability to grow in the declining American land market, thanks to its ability to extract oil from traditionally difficult-to-reach places. The company's 193 rigs are deployed across the U.S., throughout South America and across the sea in Tunisia. H&P also has a small offshore segment which operates exclusively in the shallow Gulf of Mexico. This means the company has little hope of expanding into the competitive offshore market, since most Gulf E&P companies are moving abroad because of declining production; it also means that a relatively small portion of the company will suffer from that trend. Onshore, the company's FlexRig technology allows it to benefit from growing demand for unconventional drilling and productivity-growth technology, as it can drill wells to reserves that were previously impossible or uneconomical to get to. Furthermore, rising oil prices are driving up dayrates for these coveted pieces of capital equipment, causing H&P's margins to grow as well as its revenues. H&P competes with other American onshore drilling companies, including Nabors Industries, Patterson-UTI Energy, Grey Wolf, Unit, and Pioneer Drilling Co. (Read more at Wikinvest )
What's in this HP analysis on Wikinvest...
- Business and Financials
- Trends and Forces
- Rising Oil Prices are Increasing Dayrates for Oilfield Services Companies
- H&P's Collection of Specialized Onshore Rigs Allows the Company to Grow in the Declining American Land Market
- With All its Offshore Rigs in the Gulf of Mexico, H&P is Exposed to a Declining Market with No Hedge
- Legislation Supporting the Development of Renewable Energy Threatens the Long-Term Strength of Hydrocarbons in the U.S.