Helmerich & Payne, Inc. HP recently revised its guidance for capital expenditure and provided a corporate update on its scope of operations.
For fiscal 2019, the company had earlier projected its capex outlook between $500 million and $530 million. It now envisions its total budget to be $5-$15 million, below the lower end of its previous guided range.
Additionally, for fiscal 2020, the company recommends a preliminary outlay of roughly $300 million constituting super-spec walking capabilities worth $35 million in the United States along with some international super-spec upgrades, provided a spurt in demand is created for such rigs. The official confirmation regarding the spending budget for the next fiscal year will be given by the board of directors in first-quarter fiscal 2020.
Since the beginning of the current fiscal year, the company averages an active rig count of 200 as of Sep 4, 2019. This is in line with its previous view, which suggested that the company’s active rig count will fall 6-7% sequentially. Further, this would indicate a 5-6% quarterly dip in revenue days.
The US-based drilling entity is currently undertaking steps to verify and analyze the financial consequences in Argentina resulting from the two recent government decrees that might as well influence both the exchange rate and the currency controls.
Apart from the guidance renewal, Helmerich & Payne has announced a quarterly cash dividend of 71 cents per share of its common stock, which is likely to be paid out on Dec 2, 2019 to the stockholders of record as of Nov 11.
Helmerich & Payne, Inc. Price
Helmerich & Payne, Inc. price | Helmerich & Payne, Inc. Quote
Zacks Rank & Key Picks
Helmerich & Payne carries a Zacks Rank #4 (Sell).Better-ranked players in the energy space include BP Midstream Partners BPMP, Dril-Quip, Inc. DRQ and World Fuel Services Corporation INT, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BP Midstream’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters.
Dril-Quip earnings beat the Zacks Consensus Estimate in three of the previous four quarters.
World Fuel Services earnings beat the Zacks Consensus Estimate in all the last four quarters.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Dril-Quip, Inc. (DRQ): Free Stock Analysis Report
World Fuel Services Corporation (INT): Free Stock Analysis Report
Helmerich & Payne, Inc. (HP): Free Stock Analysis Report
BP Midstream Partners LP (BPMP): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.