Helmerich & Payne, Inc. (NYSE:HP) Q2 2024 Earnings Call Transcript

Mark Smith: In our original capital allocation guidance in October for our supplemental plan, we outlined the fiscal 2024 supplemental dividend of 68 million plus unallocated cash of 68 million. To date in this fiscal year, we have repurchased 52 million of shares primarily in fiscal Q1. That said, we have further projected free cash flow as well as cash on hand in excess of our previously stated target of 200 million. We slowed calendar Q1 repurchases as the rig count looked to soften a bit. And as previously discussed this morning and due to macro uncertainties in the market overall, we will continue to be opportunistic while maintaining our longstanding financial stewardship.

Operator: Our last question comes from the line of Jeffrey LeBlanc from TPH.

Jeffrey LeBlanc: Given the success that you have had in maintaining margin and day rates, do you believe that operators will still be amenable to day rate increases to offset reactivation costs moving forward, particularly when you see natural gas prices recover?

John Lindsay: Well, Jeff, I can really only speak to the H&P, from the H&P perspective. The rigs that we have idled over the last year are rigs, at least in my view, would be ready to go to work, would not require much start up expense. We are not cannibalizing our fleet. So we have available capacity. I can’t tell you right now for sure what that would be. But I wouldn’t expect that there would be a lot of startup CapEx that would be required. Now again, I’m making an assumption that that is happening in a year timeframe from being idle to going back to work a year, year and a half.

Operator: That appears to be all the time we have for questions. I will now turn the program back over to Mr. John Lindsay for any additional or closing remarks.

John Lindsay: Thank you, Abby, and thanks to everyone for joining us today. We are very excited about the future and the opportunities ahead, and we will now sign off. Thank you.

Operator: This does conclude today’s program. Thank you for your participation. You may disconnect at any time.