Helmerich & Payne — Fourth Quarter 2026 Earnings Summary

Financial Performance

• Direct margins for North America Solutions, International Solutions, and Offshore Solutions are expected to be at or near the high-end of previously issued guidance ranges for fiscal 4Q 2026.
• International Solutions segment is expected to report direct margins of approximately $45 million for the quarter.
• All other financial guidance items from the August 5, 2026, earnings release remain unchanged.

Guidance and Future Outlook

• Management expects stronger overall direct margins in fiscal 2027 compared to fiscal 2026, driven by encouraging customer discussions and contracting activity.
• North America Solutions activity levels are expected to remain robust with a continuation of strong commercial trends.
• International Solutions anticipates strong growth in Latin America, partially offset by near-term activity reductions in the Middle East.
• The company targets reaching approximately 1x net debt to adjusted EBITDA by calendar year-end 2027.
• The company intends to maintain its base dividend.

Business Segments and Product Lines

• North America Solutions average rig count is expected to be near the high-end of the fiscal 4Q 2026 guidance range.
• International Solutions average rig count is anticipated to be near the midpoint of the guidance range.
• Offshore Solutions average rig count and management contracts are expected to come in near the midpoint of the guidance range.

Market and Competitive Landscape

• Recent market volatility is viewed as reinforcing the importance of energy security and reliable supply.
• The company sees a unique opportunity to deliver high-performance drilling solutions across its global portfolio amidst market volatility.
• The company maintains a constructive outlook based on contracting activity across its global portfolio.

Risks and Challenges

• Ongoing conflict in the Middle East and related operational disruptions are cited as challenges, though the company notes the strength of its North America segment and diversity of its International portfolio.
• Forward-looking statements are subject to risks and uncertainties, including geopolitical developments, customer contracting activity, and the impact of uncertainties on financial position and operations.

Management Commentary and Tone

• President and CEO Trey Adams expressed pride in team performance throughout fiscal 2026 and noted strong performance through year-end.
• CFO Todd Scruggs highlighted the strength of the North America Solutions segment, the diversity of the International Solutions portfolio, and the consistency of the Offshore Solutions business despite Middle East conflicts.
• Management remains convinced that market conditions present opportunities for H&P to deliver high-performance drilling solutions.

Other Key Points

• This release provides a fourth-quarter financial and operational update and does not represent complete results for the fiscal quarter or year ended September 30, 2026; complete results will be included in the Annual Report on Form 10-K.
• Direct margin is a non-GAAP metric defined as operating revenues (less reimbursements) less direct operating expenses (less reimbursements).
• The Company's independent registered public accounting firm has not audited, reviewed, compiled, or performed any procedures on the preliminary financial data presented in this release.
• Helmerich & Payne designs, fabricates, and operates high-performance drilling rigs in conventional and unconventional plays globally, while also developing advanced automation, directional drilling, and survey management technologies.