Helmerich & Payne Inc

HP: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$82.00	Gxyp	Ycvsnqxsd

Strong U.S. Rig Demand Continues to Drive Healthy Pricing for Helmerich & Payne; Raising FVE to $35

Katherine Olexa , Samuel Siampaus

Jul 28, 2022

Helmerich & Payne posted impressive results for the second quarter (the firm’s fiscal third-quarter 2022). Increased rig demand along with supply chain constraints and service provider capital discipline throughout North America continue to drive high rig utilization that’s improved pricing power for service providers, including H&P. We’ve also increased our midcycle estimate for the U.S. rig count, creating a more attractive long-term picture for suppliers. As such, we have increased our fair value estimate to $35 from $31 per share. Our no-moat and stable trend ratings are unchanged.

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