Billionaire Prem Watsa’s Top 15 Long-Term Stock Picks

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6. Helmerich & Payne, Inc. (NYSE:HP)

Number of Hedge Fund Holders: 27

Fairfax Financial Holdings’ Stake: $16.9 million 

Helmerich & Payne, Inc. (NYSE:HP) provides drilling services and solutions for exploration and production companies. The following reasons highlight the company’s strength as an investment target. Firstly, for fiscal year 2024, the company reported net income of $344 million, or $3.43 per diluted share, from operating revenues of $2.8 billion. The net income per diluted share includes $0.07 of after-tax losses composed of select items. Additionally, net cash provided by operating activities was $685 million in fiscal year 2024 compared to $834 million in fiscal year 2023. This shows the company’s profitability, cash flow generation, and operational efficiency. Secondly, Helmerich & Payne has completed its acquisition of KCA Deutag International Limited, establishing a global leader in onshore drilling. This may hold investment potential as this initiative will enhance its global footprint, exceptional service capability and superior technology offering. Moreover, the company has also announced that Saudi Aramco has finalized the contractual terms related to a recent 7-rig tender award. The seven super-spec rigs were awarded 5-year contracts with 1-year options and are expected to commence operations shortly after delivery.

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