Helmerich & Payne, Inc. Announces Supplemental Shareholder Return Plan and Planned Capital Expenditures for Fiscal 2024 and Conference Call and Webcast for Fiscal Fourth Quarter 2023 - Seite 2

Under the plan, the Company may utilize remaining cash flow projected to be generated in fiscal year 2024, after planned capital expenditures, established base and supplemental dividends, as well as cash on hand, to fund additional supplemental dividends or to opportunistically repurchase shares of its common stock under its evergreen four million shares per calendar year annual repurchase authorization. The Company currently has approximately 1.3 million shares remaining under its calendar 2023 authorizations. Such repurchases will be dependent upon several factors, including market and industry conditions and other investment opportunities available to the Company.

The 2024 supplemental shareholder return plan is specific to fiscal year 2024 and is derived from current forecasts and projections for fiscal year 2024, which are subject to change based on industry factors and market conditions. Our intention is to refresh the plan in subsequent fiscal years with adjustments made based on relevant factors and market conditions at that time, including the Company’s projected cash flow generation, and accretive investment opportunities.

On October 17, 2023, the Board of Directors of the Company declared a quarterly cash supplemental dividend of $0.17 per share, payable on December 4, 2023, to stockholders of record at the close of business on November 20, 2023. The payable date and record date of this supplemental dividend coincide with the dates applicable to the Company’s base dividend of $0.25 per share, which was declared on September 6, 2023.

Planned Capital Expenditures for Fiscal Year 2024:

Capital expenditures for fiscal year 2024 are expected to range between $450 and $500 million, reflecting our commitment to investments to support international expansion, walking rig conversions and to complete capital spending deferments that were made during the years impacted by the pandemic. H&P’s North America Solutions segment accounts for approximately 60% of the expected spend as the Company plans to convert some additional rigs to walking configurations and as maintenance capex per rig pushes slightly above the previous $1.1 to $1.3 million per active rig range. The Company’s International Solutions and Offshore Gulf of Mexico segments account for roughly 33% of the planned expenditures in fiscal 2024 as the Company continues to fund its international growth. Specifically, plans include converting additional super-spec rigs domiciled in the U.S. to walking configurations, as well as making other modifications to them, in preparation for international export and upgrading 3 rigs in Argentina to super-spec. Included in the anticipated spend for the North American Solutions and International Solutions segments are amounts allocated to convert up to 14 super-spec rigs located in the U.S. to walking configurations. Furthermore, a portion of those rigs are slated for further modifications and international export. The remainder of the planned spend for fiscal 2024 is slated for corporate and information technology purposes as the Company continues to invest in and modernize its own operational and business-driven technologies.