Helmerich & Payne, Inc. (NYSE:HP) Q4 2019 Earnings Conference Call - Final Transcript

Nov 15, 2019 • 11:00 am ET


Helmerich & Payne, Inc. (NYSE:HP) Q4 2019 Earnings Conference Call - Final Transcript


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Good day, everyone, and welcome to the Fiscal Fourth Quarter 2019 Earnings Conference Call. All participants are in a listen-only mode. Later, you will have a chance to ask questions during the Q&A session. Please note, today's call will be recorded and I will be standing by if you should need any assistance.

It is now my pleasure to turn the program over to Dave Wilson, Director of Investor Relations. Please go ahead, sir.

Dave Wilson

Thank you, Miranda, and welcome everyone to Helmerich & Payne's conference call and webcast for the fourth quarter and fiscal year ended 2019. With us today are John Lindsay, President and CEO and Mark Smith, Vice President and CFO. Both John and Mark will be sharing some comments with us after which we'll open the call for questions.

Before we begin our prepared remarks, I'll remind everyone that this call will include forward-looking statements as defined under the securities laws. Such statements are based on current information and management's expectations as of this date and are not guarantees of future performance. Forward-looking statements involve certain risks, uncertainties and assumptions that are difficult to predict. As such, our actual outcomes and results could differ materially. You can learn more about these risks in our Annual Report on Form 10-K, our quarterly reports on Form 10-Q and our other SEC filings.

You should not place any undue reliance on forward-looking statements and we undertake no obligation to publicly update these forward-looking statements. We will also be making references to certain non-GAAP financial measures such as segment operating income and operating statistics. You will find the GAAP reconciliation comments and calculations in yesterday's press release.

With all that said, I'll turn the call over to John Lindsay.

John W. Lindsay

Thank you, Dave, and good morning everyone. The Wall Street Journal had two salient articles about the energy business this week. Both underscored the copious amount of energy supplies that exist worldwide and the catch-22 this has created for the industry, our industry, the industry, most responsible for this economic bounty.

Today, oil and gas companies are suffering from a curse of abundance and according to the journal articles, we're still deep in the woods in terms of supplies and pricing. One article points out that energy has been the only negative sector in the S&P 500 over the past 12 months and that energy indices have declined by more than 40% during the year. This is an odd place to find ourselves as an industry, particularly after delivering so much value to the economy over the last decade. The US is no longer energy dependent. Our country is exporting energy again. Energy supplies and pricing remain key determinant of national security and the health of our economy and while we may be considered an ugly duckling in Wall Street indices, only the energy industry can say with complete confidence that all other industries depend on us for their continued prosperity. Think about everything that abundant and low cost energy enables across the