Helmerich & Payne (HP) provides contract drilling services to primarily US based oil & gas producers. The company is a pioneer of horizontal drilling which has driven growth. Helmerich & Payne has seen revenue per share grow at over 13% a year over the last 10 years. In total, Helmerich & Payne has 302 land rigs, 9 offshore rigs, and 29 international rigs.
Helmerich & Payne is a member of the exclusive Dividend Achievers Index. Only stocks with 10 or more consecutive years of dividend increases are eligible for inclusion in the Dividend Achievers Index. Helmerich & Payne has not reduced its dividend payments (excluding special dividends) since it initiated dividend payments in 1987. In total, the company has paid steady or increasing dividends for 28 consecutive years.
This article covers the growth prospects and competitive advantage of Helmerich & Payne. The company is ranked in The Top 20 using The 8 Rules of Dividend Investing due to its high revenue per share growth rate of over 13%, low P/E ratio of under 10.8, and high dividend yield of 3.8%. Learn more about the company below.
business Overview
Helmerich & Payne divides its drilling operations into 3 distinct segments: U.S. Land, Offshore, and International Land. In addition to its primary drilling operations, Helmerich & Payne also has a commercial real estate subsidiary and a research and development subsidiary focused on rotary steerable technology. The company's rotary steerable R&D division operates under the Terra Vici Drilling Solutions name. The commercial real estate subsidiary owns the following:
Helmerich & Payne's non-drilling operations generated just 0.4% of operating income for the company in its fiscal 2014. These operations are consolidated in the ‘other' category below. Helmerich & Payne's percentage of total revenue generated for each of its four primary segments in full fiscal 2014 is shown below:
