Helmerich & Payne, Inc. (NYSE:HP) Q3 2020 Earnings Conference Call - Final Transcript
Jul 29, 2020 • 12:00 pm ET
Good day, and welcome to the Helmerich & Payne Fiscal Third Quarter 2020 Earnings Conference Call. [Operator Instructions].
It is now my pleasure to turn the conference over to Dave Wilson. Please go ahead.
Thank you and welcome, everyone, to Helmerich & Payne's conference call and webcast for 2020. With us today are John Lindsay, President and CEO; and Mark Smith, Senior 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 upon 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 undue reliance on forward-looking statements, and we undertake no obligation to publicly update these forward-looking statements. We will also be making reference to certain non-GAAP financial measures such as segment operating income and other operating statistics. You'll find the GAAP reconciliation comments and calculations in yesterday's press release.
With that said, I'll turn the call over now to John Lindsay.
John W. Lindsay
Thank you, David, and hello, everyone. Thanks for joining us today. The unprecedented decline and volatility caused by the COVID-19 pandemic continue to reverberate throughout the industry, and we expect that ramifications will be felt for several quarters to come. I'm very proud of how our people have persevered in this time of great personal challenge and uncertainty and have kept the health and safety of fellow employees and customers the top priority. In response to COVID and demand destruction, H&P acted decisively to preserve operational and financial integrity, and this will enable us to capitalize on our strengths as we shape and deploy strategic objectives aimed at addressing the challenges and opportunities within the energy sector. While the near-term outlook is uncertain, we believe there is an improved future state for our industry. The oil and gas industry has always been cyclical, and H&P has many years of experience in navigating these cycles.
We will work hard to continue to perform and strategically position ourselves for future success. Short term, we believe the remainder of 2020 will continue to be challenging. We don't see surplus oil supplies dissipating or the rig count improving materially. While we are hopeful that the rig count in the U.S. is nearing a trough level, we must leave open the possibility of further declines driven by lower oil prices or budget exhaustion for the remainder of 2020 and perhaps beyond. It appears likely that the future will include more consolidation, leading to fewer customers and competitors, as some industry players are experiencing greater levels of