Helmerich & Payne Continues to Benefit from Recovering North American Drilling; Shares Fairly Valued

Helmerich & Payne (H&P) posted steady results for the first quarter of its fiscal year 2022 (fourth quarter of the calendar year 2021). Increased rig activity throughout North America drove most of the firm’s revenue growth, a trend we expect will persist over the next few quarters with the added benefit of recovering activity outside the U.S. We maintain our fair value estimate of $29, our no-moat rating, and a stable trend.