Helmerich & Payne, Inc. (NYSE:HP) Q4 2020 Earnings Conference Call - Final Transcript
Nov 20, 2020 • 11:00 am ET
Good day, everyone, and welcome to today's Helmerich & Payne Fiscal Fourth Quarter Earnings Conference Call. [Operator Instructions] Please note this call may be recorded.
It is now my pleasure to turn today's program over to Dave Wilson, Director of Investor Relations.
Thank you, Christy, and welcome everyone to Helmerich & Payne's conference call and webcast for the fourth quarter and fiscal year ended 2020. With us today are John Lindsay, President and CEO; Mark Smith, Senior Vice President and CFO. John and Mark will both be making some prepared comments, 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'll also be making reference to certain non-GAAP financial measures such as segment operating income and 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 to John Lindsay.
John W. Lindsay
Thank you, Dave, and good morning everyone. This past fourth fiscal quarter was one of the most challenging in the company's 100-year history. The destruction of oil demand induced by COVID is well documented. And in terms of drilling activity, our rig count hit bottom in August.
Despite the challenging quarter, our strong financial position has enabled us to remain focused on our long-term strategies. Our people are developing new commercial models and innovative drilling and digital technologies that will help to transform the customer experience and shape the future of this business. These efforts have progressed despite this difficult environment and will serve as the foundation from which the company will build as the market continues to recover.
Our customer-centric approach is one that prioritizes providing customized solutions by employing a combination of people, processes, rigs and automation technology to deliver more value and lower risk for our customers. This approach is distinctive in the industry, resonates well across our customer base and with further developments on the horizon will be a major driver of growth as activity levels improve.
Excluding our two idle but contracted rigs, our current US FlexRig activity has improved to 80 rigs and we expect our active rig count will exit the first quarter at approximately 90 rigs. This is almost double the number of rigs turning to the right compared to the lowest level reached in August. The Permian has led the industry rig count recovery and H&P has earned approximately two-thirds of