# Helmerich & Payne, Inc. (HP) Informational only - not investment advice. CIK: 0000046765 SIC: 1381 Drilling Oil & Gas Wells SIC breadcrumb: [Mining](/division/B/) > [SIC Major Group 13](/major-group/13/) > [SIC 1381 Drilling Oil & Gas Wells](/industry/1381/) Latest 10-K filed: 2025-11-21 SEC page: https://www.sec.gov/edgar/browse/?CIK=46765 Filing source: https://www.sec.gov/Archives/edgar/data/46765/000004676525000071/hp-20250930.htm ## At a glance FY2025 · period end 2025-09-30 · filed 2025-11-21 · accession 0000046765-25-000071 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000046765.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 3,746,013,000 USD | 2025 | verified | | Net income | -163,695,000 USD | 2025 | verified | | Assets | 6,705,738,000 USD | 2025 | verified | | Free cash flow | 116,577,000 USD | 2025 | computed | | Net margin | -4.37% | 2025 | computed | | Operating margin | 0.09% | 2025 | computed | | Revenue YoY | +35.89% | 2025 | computed | | ROE | -5.79% | 2025 | computed | Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity. No market price, no rating, no forecast on this site. Not investment advice. ### Peer percentile fingerprint | Ratio | HP | Peer median | Percentile | N | | --- | ---: | ---: | ---: | ---: | | Net margin | -4.4% | 0.1% | 29 | 8 | | Operating margin | 0.1% | 8.0% | 29 | 8 | | Revenue growth | 35.9% | 5.6% | 100 | 8 | | ROE | -5.8% | -0.8% | 14 | 8 | | ROA | -2.4% | -0.5% | 14 | 8 | | Liabilities / equity | 1.37 | 0.83 | 86 | 8 | | Current ratio | 1.80 | 1.66 | 86 | 8 | Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 1381 Drilling Oil & Gas Wells, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 3746013000 | USD | 2025 | 2025-11-21 | | Net income | -163695000 | USD | 2025 | 2025-11-21 | | Assets | 6705738000 | USD | 2025 | 2025-11-21 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2025-11-21. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000046765.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2006 | 2007 | 2008 | 2009 | 2010 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | | | | | | | 1,804,741,000 | 2,487,268,000 | 2,798,490,000 | 1,773,927,000 | 1,218,568,000 | 2,058,944,000 | 2,872,421,000 | 2,756,607,000 | 3,746,013,000 | | Net income | | | | | | -56,828,000 | -128,212,000 | 482,672,000 | -33,656,000 | -494,497,000 | -326,150,000 | 6,953,000 | 434,100,000 | 344,165,000 | -163,695,000 | | Operating income | | | | | | -25,966,000 | -169,087,000 | 32,964,000 | 20,582,000 | -620,187,000 | -428,549,000 | 45,292,000 | 568,308,000 | 457,449,000 | 3,318,000 | | Diluted EPS | | | | | | -0.54 | -1.20 | 4.37 | -0.34 | -4.60 | -3.04 | 0.05 | 4.16 | 3.43 | -1.66 | | Operating cash flow | | | | | | 754,531,000 | 371,199,000 | 557,852,000 | 855,751,000 | 538,881,000 | 136,440,000 | 233,913,000 | 833,682,000 | 684,663,000 | 542,950,000 | | Capital expenditures | | | | | | 257,169,000 | 397,567,000 | 466,584,000 | 458,402,000 | 140,795,000 | 82,148,000 | 250,894,000 | 395,460,000 | 495,072,000 | 426,373,000 | | Dividends paid | | | | | | 300,152,000 | 305,515,000 | 308,430,000 | 313,421,000 | 260,335,000 | 109,130,000 | 107,395,000 | 201,456,000 | 168,459,000 | 100,735,000 | | Assets | | | | | | 6,832,019,000 | 6,439,988,000 | 6,214,867,000 | 5,839,515,000 | 4,829,621,000 | 5,034,128,000 | 4,355,531,000 | 4,381,956,000 | 5,781,898,000 | 6,705,738,000 | | Stockholders' equity | 1,381,892,000 | 1,815,516,000 | 2,265,474,000 | 2,683,009,000 | 2,807,465,000 | | | | | | | 2,765,472,000 | 2,771,943,000 | 2,917,152,000 | 2,829,338,000 | | Cash and cash equivalents | | | | | | 905,561,000 | 521,375,000 | 284,355,000 | 347,943,000 | 487,884,000 | 917,534,000 | 232,131,000 | 257,174,000 | 217,341,000 | 196,848,000 | | Free cash flow | | | | | | 497,362,000 | -26,368,000 | 91,268,000 | 397,349,000 | 398,086,000 | 54,292,000 | -16,981,000 | 438,222,000 | 189,591,000 | 116,577,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2006 | 2007 | 2008 | 2009 | 2010 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | | | | | | | -7.10% | 19.41% | -1.20% | -27.88% | -26.77% | 0.34% | 15.11% | 12.49% | -4.37% | | Operating margin | | | | | | | -9.37% | 1.33% | 0.74% | -34.96% | -35.17% | 2.20% | 19.78% | 16.59% | 0.09% | | Return on equity | | | | | | | | | | | | 0.25% | 15.66% | 11.80% | -5.79% | | Return on assets | | | | | | -0.83% | -1.99% | 7.77% | -0.58% | -10.24% | -6.48% | 0.16% | 9.91% | 5.95% | -2.44% | | Liabilities / equity | | | | | | | | | | | | 0.57 | 0.58 | 0.98 | 1.37 | | Current ratio | | | | | | 4.76 | 3.59 | 2.96 | 2.72 | 4.40 | 1.83 | 2.54 | 2.40 | 2.67 | 1.80 | ## As-reported value updates 6 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period. Ledger: /company/HP/revisions/ ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000046765.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2023-Q1 | 2022-12-31 | | | 0.91 | reported discrete quarter | | 2023-Q2 | 2023-03-31 | | | 1.55 | reported discrete quarter | | 2023-Q3 | 2023-06-30 | | | 0.93 | reported discrete quarter | | 2023-Q4 | 2023-09-30 | 659,606,000 | 77,622,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2023-12-31 | 677,147,000 | 95,173,000 | 0.94 | reported discrete quarter | | 2024-Q2 | 2023-12-31 | | 95,173,000 | | reported discrete quarter | | 2024-Q2 | 2024-03-31 | 687,943,000 | | 0.84 | reported discrete quarter | | 2024-Q3 | 2024-03-31 | | 84,831,000 | | reported discrete quarter | | 2024-Q3 | 2024-06-30 | 697,724,000 | | 0.88 | reported discrete quarter | | 2024-Q4 | 2024-09-30 | 693,793,000 | 75,476,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2024-12-31 | 677,302,000 | 54,772,000 | 0.54 | reported discrete quarter | | 2025-Q2 | 2025-03-31 | 1,016,039,000 | 1,654,000 | 0.01 | reported discrete quarter | | 2025-Q3 | 2025-06-30 | 1,040,924,000 | -162,758,000 | -1.64 | reported discrete quarter | | 2025-Q4 | 2025-09-30 | 1,011,748,000 | -57,363,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2025-12-31 | 1,017,026,000 | -96,706,000 | -0.98 | reported discrete quarter | | 2026-Q2 | 2026-03-31 | 932,362,000 | -58,609,000 | -0.59 | reported discrete quarter | | 2026-Q3 | 2026-06-30 | 1,034,856,000 | 75,682,000 | 0.74 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Business Verbatim Item 1 Business section from HP's latest 10-K: [/company/HP/business/](/company/HP/business/). ## Risk Factors Verbatim Item 1A Risk Factors from HP's latest 10-K: [/company/HP/risk-factors/](/company/HP/risk-factors/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/46765/000004676526000042/hp-20260630.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Confidence: high Filing date: 2026-08-06 Report date: 2026-06-30 ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Cautionary Note Regarding Forward-Looking Statements This Quarterly Report on Form 10‑Q (“Form 10‑Q”) contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements other than statements of historical facts included in this Form 10-Q are forward-looking statements. Forward-looking statements may be identified by the use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “predict,” “project,” “target,” “continue,” or the negative thereof or similar terminology, and such statements include, but are not limited to, statements regarding the Acquisition and the anticipated benefits and impact of such transaction, the timing and terms of recommencement of suspended rigs related to the Acquisition, our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management. Forward-looking statements are based upon current plans, estimates, and expectations that are subject to risks, uncertainties, and assumptions, many of which are beyond our control and any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. The inclusion of such statements should not be regarded as a representation that such plans, estimates, or expectations will be achieved. Factors that could cause actual results to differ materially from those expressed in or implied by such forward-looking statements include, but are not limited to: •our ability to achieve the strategic and other objectives relating to the Acquisition; •the risk that we are unable to integrate KCA Deutag International Limited's ("KCA Deutag") operations in a successful manner and in the expected time period; •the volatility of future oil and natural gas prices; •contracting of our rigs and actions by current or potential customers; •the effects of actions by, or disputes among or between, members of the Organization of Petroleum Exporting Countries (“OPEC”) and other oil producing nations (together, “OPEC+”) with respect to production levels or other matters related to the prices of oil and natural gas; •changes in future levels of drilling activity and capital expenditures by our customers, whether as a result of global capital markets and liquidity, changes in prices of oil and natural gas or otherwise, which may cause us to idle or stack additional rigs, or increase our capital expenditures and the construction, upgrade or acquisition of rigs; •changes in worldwide rig supply and demand, competition, or technology; •possible cancellation, suspension, renegotiation or termination (with or without cause) of our contracts as a result of general or industry-specific economic conditions, mechanical difficulties, performance or other reasons; •expansion and growth of our business and operations; •our belief that the final outcome of our legal proceedings will not materially affect our financial results; •the impact of federal, state and foreign legislative and regulatory actions and policies, affecting our costs and increasing operating restrictions or delay and other adverse impacts on our business; •environmental or other liabilities, risks, damages or losses, whether related to storms or hurricanes (including wreckage or debris removal), collisions, grounding, blowouts, fires, explosions, other accidents, terrorism or otherwise, for which insurance coverage and contractual indemnities may be insufficient, unenforceable or otherwise unavailable; •the impact of geopolitical developments and tensions, war and uncertainty involving or in the geographic region of oil-producing countries (including the ongoing armed conflicts between Russia and Ukraine, the military conflict with Iran and the associated disruption to the Strait of Hormuz, other conflicts in the Middle East, and any related political or economic responses and counter-responses or otherwise by various global actors or the general effect on the global economy); Q3 FY26 FORM 10-Q | 32 Table of Contents •global economic conditions, such as a general slowdown in the global economy, supply chain disruptions, inflationary pressures, the impact of new or additional tariffs, currency fluctuations, and instability of financial institutions, and their impact on the Company; •our financial condition and liquidity; •tax matters, including our effective tax rates, tax positions, results of audits, changes in tax laws, treaties and regulations, tax assessments and liabilities for taxes; •the occurrence of security incidents, including breaches of security, or other attack, destruction, alteration, corruption, or unauthorized access to our information technology systems or destruction, loss, alteration, corruption or misuse or unauthorized disclosure of or access to data; •potential impacts on our business resulting from climate change, greenhouse gas regulations, and the impact of climate change related changes in the frequency and severity of weather patterns; •potential long-lived asset impairments; and •our sustainability strategy, including expectations, plans, or goals related to corporate responsibility, sustainability and environmental matters, and any related reputational risks as a result of execution of this strategy. Additional factors that could cause actual results to differ materially from our expectations or results discussed in the forward‑looking statements are disclosed in our 2025 Annual Report on Form 10‑K under Part I, Item 1A— “Risk Factors” and Item 7— “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” All subsequent written and oral forward‑looking statements, express or implied, are expressly qualified in their entirety by such cautionary statements. All forward-looking statements speak only as of the date they are made and are based on information available at that time. Because of the underlying risks and uncertainties, we caution you against placing undue reliance on these forward-looking statements. We assume no duty to update or revise these forward‑looking statements based on changes in internal estimates, expectations or otherwise, except as required by law. Executive Summary H&P through its operating subsidiaries provides performance-driven drilling solutions and technologies that are intended to make hydrocarbon recovery safer and more economical for oil and gas exploration and production companies. As of June 30, 2026, our drilling rig fleet included a total of 333 drilling rigs. Our reportable operating business segments consist of the North America Solutions segment with 202 rigs, the International Solutions segment with 127 rigs, and the Offshore Solutions segment with four offshore platform rigs as of June 30, 2026. Although the Offshore Solutions segment has a fleet of platform rigs, the majority of its revenues are derived from asset-light management contracts. At the close of the third quarter of fiscal year 2026, we had 216 active contracted rigs compared to 208 contracted rigs at September 30, 2025. Our long-term strategy remains focused on innovation, technology, safety, operational excellence, and reliability. As we move forward, we believe that our rig fleet, technology offerings, financial strength, contract backlog and strong customer and employee base position us very well to respond to continued cyclical and often times volatile market conditions and to take advantage of future opportunities. Market Outlook Our revenues are primarily derived from the capital expenditures of companies involved in the exploration, development and production of crude oil and natural gas (“E&Ps”). Generally, the level of capital expenditures is dictated by capital budgets set to achieve respective production targets in relation to current and expected future prices of crude oil and natural gas, which are determined by various supply and demand factors and have historically been volatile. Over time, however, E&Ps have become more fiscally disciplined in their level of capital expenditures relative to commodity price fluctuations and the amount of free cash flows that can be returned to their shareholders, which has resulted in more stable and predictable demand for oilfield service businesses, including our operations. Q3 FY26 FORM 10-Q | 33 Table of Contents In early calendar year 2025, the announcements by the U.S. government regarding the implementation of global tariffs and OPEC+ regarding the planned increase of crude oil supply created continued uncertainty in the global energy markets. More recently, heightened geopolitical tensions in the Middle East including ongoing armed conflict and instability affecting key energy-producing and transit regions, such as the Strait of Hormuz, and ongoing political developments in Venezuela have perpetuated and elevated the level of uncertainty further. These developments have contributed to increased volatility in global crude oil and natural gas prices and have led market participants to reassess supply risks, transportation reliability, and near-term capital allocation decisions. Although we do not anticipate that these announcements and events will have a direct material impact on the Company's operations or financial results, we believe the indirect effects of sustained geopolitical uncertainty, including the potential for supply-side disruptions and transportation risks may support increased drilling activity levels as operators seek to mitigate these potential disruptions and respond to elevated or more volatile commodity prices. Both crude oil and natural gas prices are volatile and global economic conditions heavily influence activity levels in the United States. In our international operations, commodity pricing has an impact on potential activity by our customers; however, other variables have a heavy influence on those activity levels, including disparate country budgets and the need to fund other commitments in certain areas. During the nine months ended June 30, 2026, we received notifications to resume operations on multiple rigs in Saudi Arabia, with reactivations initially scheduled for the first half of calendar year 2026. As of June 30, we've reactivated four additional rigs and drilling commenced on a fifth rig in early July. These reactivations increased our operated rig count in Saudi Arabia to 22 active rigs, and we currently expect ot maintain that level of activity for the remainder of fiscal year 2026. Recent Developments Assets Held-for-Sale In October 2025, we committed to a plan to scrap certain rigs and related assets across our operating segments as part of our fleet rationalization strategy. As a result, these assets were reclassified as held-for-sale and, where applicable, written down to fair value less cost to sell. This resulted in non-cash impairment charges of $97.9 million and $2.1 million in the North America Solutions and Offshore Solutions segments, respectively during the nine months ended June 30, 2026. Additionally, in March 2026, we identified an international drilling rig within our International Solutions segment that met the asset held-for-sale criteria and was therefore written down to fair value less cost to sell. This resulted in a non-cash impairment charge of $23.3 million during the nine months ended June 30, 2026. During the nine months ended June 30, 2026, we recognized a non-cash impairment charge of $2.8 million to write down assets previously c [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/46765/000004676525000071/hp-20250930.htm Complete FY 2025 MD&A: /company/HP/mda/fy2025/ Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Confidence: high Filing date: 2025-11-21 Report date: 2025-09-30 ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion should be read in conjunction with Part I of this Form 10‑K as well as the Consolidated Financial Statements and related notes thereto included in Part II, Item 8— Financial Statements and Supplementary Data of this Form 10‑K. Our future operating results may be affected by various trends and factors which are beyond our control. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of a variety of risks and uncertainties, including those described in this Form 10-K under “Cautionary Note regarding Forward-Looking Statements” and Item 1A—Risk Factors. Accordingly, past results and trends should not be used by investors to anticipate future results or trends. 2025 FORM 10-K | 40 Table of Contents Executive Summary H&P through its operating subsidiaries provides performance-driven drilling solutions and technologies that are intended to make hydrocarbon recovery safer and more economical for oil and gas exploration and production companies. During the second quarter of fiscal year 2025, the naming convention for one of our reportable segments changed from Offshore Gulf of Mexico to Offshore Solutions. Beginning on the Closing Date, Offshore Solutions now includes the results from the acquired KCA Deutag offshore management contract operations. Similarly, our International Solutions segment now includes the results from the acquired KCA Deutag land operations. Operating results related to KCA Deutag's BENTEC™ business unit are included in "Other" along with results from our real estate operations and our wholly-owned captive insurance companies. Our North America Solutions operating segment remains unchanged. For additional information regarding the completion of the Acquisition, refer to Note 3—Business Combination. As of September 30, 2025, our drilling rig fleet included a total of 367 drilling rigs. Our reportable operating business segments consist of the North America Solutions segment with 223 rigs, the International Solutions segment with 137 rigs, and the Offshore Solutions segment with seven offshore platform rigs as of September 30, 2025. Although the Offshore Solutions segment has a fleet of platform rigs, the majority of its revenues are derived from asset-light management contracts. At the close of fiscal year 2025, we had 208 active contracted rigs, of which 131 were under a fixed-term contract and 77 were working well-to-well, compared to 170 contracted rigs at September 30, 2024. Our long-term strategy remains focused on innovation, technology, safety, operational excellence and reliability. As we move forward, we believe that our rig fleet, technology offerings, financial strength, contract backlog and strong customer and employee base position us very well to respond to continued cyclical and often times volatile market conditions and to take advantage of future opportunities. Market Outlook Our revenues are primarily derived from the capital expenditures of companies involved in the exploration, development and production of crude oil and natural gas (“E&Ps”). Generally, the level of capital expenditures is dictated by capital budgets set to achieve respective production targets in relation to current and expected future prices of crude oil and natural gas, which are determined by various supply and demand factors and have historically been volatile. Furthermore, E&Ps have become more fiscally disciplined in their level of capital expenditures relative to commodity price fluctuations and the amount of free cash flows that can be returned to their shareholders, which has resulted in less volatility within the oilfield service businesses, including our operations. Earlier in calendar 2025, the announcements by the U.S. government regarding the implementation of global tariffs and OPEC+ regarding the planned increase of crude oil supply created continued uncertainty in the global energy markets. More recently, heightened geopolitical tensions in the Middle East have perpetuated and elevated the level of uncertainty further. Although we do not anticipate that these announcements and events, particularly the tariff announcements and the armed conflict in the Middle East, will have a direct material impact on the Company's operations or financial results, we believe the indirect effects could potentially lead to reduced activity in fiscal year 2026 as operators evaluate activity levels commensurate with commodity prices. Both crude oil and natural gas prices are volatile and global economic conditions heavily influence activity levels in the United States. In our international operations, commodity pricing has an impact on potential activity by our customers; however, other variables have a heavy influence on those activity levels, including disparate country budgets and the need to fund other commitments in certain areas. Subsequent to September 30, 2025, we received notifications for seven rigs to resume operations in Saudi Arabia during the first half of calendar year 2026. With the rig resumptions, the total operating rig count in country will increase to 24 total rigs by the middle of calendar year 2026. Recent Developments KCA Deutag Acquisition On the Closing Date, H&P completed the Acquisition of KCA Deutag pursuant to the Purchase Agreement. H&P paid aggregate cash consideration of approximately $2.0 billion, which consisted of the share purchase price of $0.9 billion and $1.1 billion which was used to contemporaneously repay or redeem certain of KCA Deutag existing debt, including, as applicable, the payment of all accrued and unpaid interest, premiums, and fees. The cash consideration was funded through a combination of net proceeds from the Company’s September 2024 senior notes offering, net proceeds from the funding of the Company’s Term Loan Credit Agreement, cash on hand, and monetization of our investment in ADNOC Drilling. 2025 FORM 10-K | 41 Table of Contents KCA Deutag is a diverse global drilling company. The company derives a significant portion of its revenues and cash flow from its land operations and has a substantial land drilling presence in the Middle East with additional operations in South America, Europe, and Northern Africa. In addition to its land operations, the company has asset-light offshore management contract operations in the North Sea, Angola, Azerbaijan and Canada. Management contract operations provide services to customer platforms where the customer owns the drilling rig. KCA Deutag’s BENTEC™ (formally Kenera) business unit comprises manufacturing and engineering operations with four facilities serving the energy industry. Subsequent to the announcement of the Acquisition in July 2024 through September 2025, KCA Deutag and the Company have received notifications of contract suspensions for rigs from the legacy KCA Deutag rig fleet operating in Saudi Arabia. Through September 30, 2025, the Company's total rig suspensions were 27 rigs. Subsequent to the fiscal year ended September 30, 2025, we received resumption notices for seven rigs. The suspended rigs are expected to resume performance in fiscal year 2026. At the time the Acquisition was announced, we initially expected to realize approximately $25 million in synergies. Since that time, we have been able to conduct a more detailed analysis of possible synergies, and we also launched a broader review of our enterprise cost structure. We now anticipate realizing in excess of our original expectations from the combination of synergies associated with the Acquisition and other permanent cost-saving initiatives (such as our workforce reduction plan discussed in Note 16—Restructuring Charges) and expect our general and administrative expenses will be reduced by $50 million relative to our pro forma annualized expectations. We believe these cost-saving efforts will become increasingly evident in the forthcoming quarters. Subsequent to September 30, 2025, we announced the rebranding of KCA Deutag’s Kenera business unit to BENTEC™. The BENTEC™ name, already recognized in the market, will now represent all products and services previously associated with Kenera and its sub-brands. Accordingly, throughout this document and in future references, Kenera will be referred to as BENTEC™. Contract Backlog Drilling contract backlog is the expected future dayrate revenue from executed contracts. We calculate backlog as the total expected revenue from fixed-term contracts and do not include any anticipated contract renewals or expected performance bonuses as part of its calculation. Additionally, contracts that currently contain month-to-month terms are represented in our backlog as one month of unsatisfied performance obligations. In addition to depicting the total expected revenue from fixed-term contracts, backlog is indicative of expected future cash flow that the Company expects to receive regardless of whether a customer honors the fixed-term contract to expiration of a contract or decides to terminate the contract early and pay an early termination payment. In the event of an early termination payment, the timing of the recognition of backlog and the total amount of revenue may differ; however, the overall associated gross margin is preserved. As such, management finds backlog a useful metric for future planning and budgeting, whereas investors consider it useful in estimating future revenue and cash flows of the Company. As of September 30, 2025 and 2024, our contract drilling backlog was $7.0 billion and $1.5 billion, respectively. The increase in backlog at September 30, 2025 compared to 2024 is primarily due to the completion of the Acquisition. The total backlog figures for the International Solutions and Offshore Solutions reporting segments, as of September 30, 2025 include $3.4 billion and $2.3 billion, respectively, are attributable to our recently acquired subsidiary, KCA Deutag. Approximately 22.6 percent of the September 30, 2025 total backlog is reasonably expected to be fulfilled in fiscal year 2026. The following table sets forth the total backlog by reportable segment as of September 30, 2025 and 2024: [[GREPCENT_TABLE]] [["(in billions)","September 30, 2025","","September 30, 2024"],["Firm contracts1:"],["North America Solutions","$","0.5","","","$","0.7"],["International Solutions","3.4","","","0.8"],["Offshore Solutions","0.9","","","\u2014"],["","$","4.8","","","$","1.5"],["Optional contract extension periods:"],["International Solutions2","0.7","","","\u2014"],["Offshore Solutions","1.5","","","\u2014"],["","2.2","","","\u2014"],["Total backlog","$","7.0","","","$","1.5"]] [[/GREPCENT_TABLE]] (1)These amounts do not include anticipated contract renewals or expected performance bonuses. (2)Included in the International Solutions reportable segment's optional backlog balance at September 30, 2025 is $478.5 million of expected revenue from certain contracts in Saudi Arabia that have been temporarily suspended and are expected to gradually resume operations. The information presented in the table above reflects the fact that we expect these contracts to be extended for a period of time at least equal to the suspension period. 2025 FORM 10-K | 42 Table of Contents The early termination of a contract or suspension of operations may result in a rig being idle for an extended period of time, which could adversely affect our financial condition, results of operations and cash flows. The agreements within our recently acquired subsidiary, KCA Deutag, contain provisions for optional early termination or suspension without any associated early termination fees. Early terminations could cause the actual amount of revenue earned to significantly vary from the backlog reported. See Item 1A—Risk Factors—"Our current backlog of drilling services and solutions revenue may [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2025 MD&A: /company/HP/mda/fy2025/ All MD&A years: /company/HP/mda/ ## MD&A history Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page. - [FY 2024 MD&A](/company/HP/mda/fy2024/): filed 2024-11-13; accession 0000046765-24-000076 (https://www.sec.gov/Archives/edgar/data/46765/000004676524000076/hp-20240930.htm) - [FY 2023 MD&A](/company/HP/mda/fy2023/): filed 2023-11-08; accession 0000046765-23-000069 (https://www.sec.gov/Archives/edgar/data/46765/000004676523000069/hp-20230930.htm) - [FY 2022 MD&A](/company/HP/mda/fy2022/): filed 2022-11-17; accession 0000046765-22-000070 (https://www.sec.gov/Archives/edgar/data/46765/000004676522000070/hp-20220930.htm) - [FY 2021 MD&A](/company/HP/mda/fy2021/): filed 2021-11-18; accession 0000046765-21-000044 (https://www.sec.gov/Archives/edgar/data/46765/000004676521000044/hp-20210930.htm) ## Macro cross-references Indicators mapped to this company's SIC classification (industry 1381 Drilling Oil & Gas Wells) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim. - [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index - [TCU](/indicator/TCU/): Capacity Utilization: Total Index - [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity - [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/). All macro indicators: /indicators/ ## For LLMs & downloads Markdown twin: /company/HP.md · JSON record: /company/HP.json · verified financials: /company/HP/financials.json / /company/HP/financials.csv · machine TOC for the whole site: /llms.txt