Helmerich & Payne, Inc. (NYSE:HP) Q1 2023 Earnings Call Transcript

Mark Smith: And if we look at what we expect this quarter for our average spot revenue per day that’s closer to 38.5%. And then if we look at the leading edge, as I mentioned, the revenue per day not just day rate, but revenue plus ancillary services, technology utilization that’s just above 40%.

Saurabh Pant: Okay. Okay. Perfect. Okay, Mark. Thanks for that. John, thank you. I’ll turn it back.

Mark Smith: Okay. Thank you.

Operator: And we will move next with Waqar Syed with ATB Capital Markets. Please go ahead.

Waqar Syed : Thank you for taking my questions. First of all, if you look at the DUCs inventory in the Permian, it’s at a very low level right now. Are you seeing anything from your customers that they feel the DUCs inventory is low and they have to build up the drilling inventory?

John Lindsay: Good morning, Waqar. We don’t get into a lot of discussion on DUC. But I think just generally speaking, I think we all recognize that we’re at record lows and that there are some discussions related to being able to build that DUC count back up. But it’s not a metric that we’re following too terribly close. Dave, do you have any additional color on that?

Dave Wilson : John, yes. John, I think you said that’s not the thing we’ve tracked. But clearly, they’re very, very low levels and I’ve heard various customers talk about building those up.

Waqar Syed : Yes. Great. And then if you look at the capital spending budget of $425 million and $475 million that’s a wide range. And what would drive the lower end? Is it just the US rigs that you don’t get to about 16 or is it more international that gets you to move between the lower end and the upper end?

John Lindsay: Waqar, thanks for the question. A lot of that is timing. I mean think about the midpoint of the range $450 million, if you divide it by 4, you probably would have expected a higher number in the calendar Q1. I mean the fiscal Q1, calendar Q4, we just exited. But these things are lumpy. I mean there are some large purchases like drill pipe orders, et cetera. If delivery moves the wheat, you can move quarter-to-quarter and that really timing is what I’d say is kind of a primary factor there.

Waqar Syed: Okay. And then just one final question. If I look at your rigs in the Haynesville, is there anything in terms of the capabilities, which would — what requires them some kind of upgrades or anything like that before you can put them to work in the Permian or Eagle Ford?

John Lindsay: No Waqar, they’re ready to go essentially have the same BOPs, same layout. Those rigs are consistent across the fleet. They would be able to go pretty seamlessly over to work in any oil basin, including the Permian.

Waqar Syed: Okay, great. Thank you very much. Thanks for the color.

John Lindsay: Thanks, Waqar.

Operator: We’ll take our next question from Scott Gruber with Citigroup. Please go ahead.

Scott Gruber: Yes. Good morning.