TULSA, Okla. - Helmerich & Payne, Inc. (NYSE: HP (NYSE:HPQ)), a leader in the drilling industry, today announced the appointment of J. Kevin Vann as the Chief Financial Officer Designate.
Vann is set to take over the role following the retirement of current CFO Mark W. Smith on August 15, 2024. Vann's previous experience includes serving as CFO at WPX Energy (NYSE:WPX), Inc. and in various financial roles at The Williams Companies (NYSE:WMB), Inc.
The transition comes as Helmerich & Payne is poised to complete its planned acquisition of KCA Deutag, a move that is part of the company's growth strategy.
John Lindsay (NYSE:LNN), President and CEO of H&P, expressed confidence in Vann's ability to maintain and enhance the company's financial strategy and performance, citing his background in mergers and acquisitions.
Helmerich & Payne, founded in 1920, is known for its commitment to delivering high-performance drilling services with a focus on integrity, safety, and innovation. The company operates a fleet of drilling rigs and develops advanced drilling technologies.
This announcement contains forward-looking statements regarding the company's plans, including the expected completion of the KCA Deutag acquisition. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected.
The information in this article is based on a press release statement from Helmerich & Payne, Inc.
In other recent news, drilling contractor Helmerich & Payne has been the recipient of various analyst upgrades and adjustments following its announcement of a $1.97 billion acquisition of KCA Deutag. RBC Capital Markets raised its price target for the company from $48 to $50, maintaining a Sector Perform rating.
The acquisition is expected to bolster Helmerich & Payne's international presence, although RBC is seeking further clarity on the firm's cash flow and debt repayment timeline.
CFRA also upgraded Helmerich & Payne's stock from Hold to Buy and raised the price target from $44 to $47. This adjustment came in the wake of the company's strategic agreement to acquire KCA Deutag, a move set to expand operations in the Middle East. Conversely, an investment firm reduced the company's stock target from $44.00 to $39.00 due to a revised EBITDA forecast for 2025.
The acquisition of KCA Deutag is anticipated to boost Helmerich & Payne's operations significantly, increasing its rig count in the Middle East from 12 to 88. This move is expected to more than triple the company's contracted backlog and potentially increase its international EBITDA to between 20% and 25% of total EBITDA.
Post-acquisition, the company plans to reorganize its operations into North America Solutions, International Solutions, and Offshore Solutions. These are the recent developments in Helmerich & Payne's ongoing strategic transformation.
InvestingPro Insights
As Helmerich & Payne, Inc. (NYSE: HP) prepares for a strategic leadership transition and the completion of its acquisition of KCA Deutag, the company's financial health remains a key focus for investors. According to InvestingPro data, HP has a market capitalization of $3.59 billion and operates with a moderate level of debt, which is an encouraging sign for stakeholders monitoring the company's leverage amidst its growth initiatives.
InvestingPro Tips suggest that HP's cash flows are strong enough to cover interest payments, a critical factor as the company navigates the financial aspects of acquisitions and maintains operational stability. Furthermore, HP has a track record of consistent dividend payments, having maintained them for 54 consecutive years, which may be particularly attractive to income-focused investors. The company's dividend yield stands at 4.62%, reflecting a commitment to shareholder returns.
In terms of profitability, analysts predict that HP will remain profitable this year, supported by a solid gross profit margin of 40.1% over the last twelve months as of Q3 2024. This is consistent with HP's performance over the last year, where the company has been profitable.
For investors seeking more detailed analysis and additional insights, there are 5 more InvestingPro Tips available on Helmerich & Payne, which can be accessed by visiting https://www.investing.com/pro/HP. These tips provide a deeper dive into the company's financial metrics and future prospects, offering valuable information for making informed investment decisions.
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