Helmerich & Payne (HP) is a leading drilling contractor with activities in the U.S. and overseas.
The company, with its young, efficient drilling fleet, has been able to snag market share and maintain a relatively higher utilization due to stronger drilling demand and longer duration of term contracts for their technologically sophisticated FlexRigs. A relatively conservative financial policy and the quality of its client base, which mostly includes well-capitalized oil majors or large independents, are other positives in the Helmerich & Payne story.
The recent turnaround in domestic drilling activity also bodes well for the company. As such, we recommend an Outperform rating for Helmerich & Payne shares.Zacks Investment Research
