Helmerich & Payne, Inc. (NYSE:HP) Q2 2023 Earnings Conference Call April 27, 2023 11:00 AM ET

Company Participants

Dave Wilson – Vice President of Investor Relations

John Lindsay – President and Chief Executive Officer

Mark Smith – Senior Vice President and Chief Financial Officer

Conference Call Participants

David Smith – Pickering Energy

Derek Podhaizer – Barclays

Don Crist – Johnson Rice

Keith Mackey – RBC Capital Markets

Operator

Good day, everyone, and welcome to today’s Helmerich & Payne Fiscal Second Quarter Earnings Call. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question-and-answer session. [Operator Instructions] Please note this call is being recorded and I’ll be standing by should you need any assistance.

It is now my pleasure to turn today’s call over to Dave Wilson. Please go ahead.

Dave Wilson

Thank you, Ashley, and welcome everyone to Helmerich & Payne’s conference call and webcast for the second quarter of fiscal year 2023. With us today are John Lindsay, President and CEO; and Mark Smith, Senior Vice President and CFO. Both John and Mark will be sharing some comments with us, after which we’ll open the call for questions.

Before we begin our prepared remarks, I’ll remind everyone that this call will include forward-looking statements as defined under securities laws. Such statements are based on current information and management’s expectations as of the state and are not guarantees of future performance.

Forward-looking statements involve certain risks uncertainties and assumptions that are difficult to predict. As such our actual outcomes and results could differ materially. You can learn more about these risks in our Annual Report on Form 10-K, our quarterly reports on Form 10-Q and our other SEC filings. You should not place undue reliance on forward-looking statements and we undertake no obligation to publicly update these forward-looking statements.

We will also be making reference to certain non-GAAP financial measures such as segment operating income, direct margin and other operating statistics. You’ll find the GAAP reconciliation comments and calculations in yesterday’s press release.

With that said, I’ll turn the call over to John Lindsay.

John Lindsay

Thank you, Dave. Good morning, everyone, and thank you again for joining us today. H&P delivered another outstanding quarter and executed on several strategic objectives. On our Q2 earnings call last year, we announced a goal to achieve direct margins of 50% in our North America Solutions segment, as the pathway to generating an annualized return of our cost of capital. I’m pleased to report we have achieved that margin goal with the second fiscal quarter results.