Source: Helmerich & Payne
Helmerich & Payne, Inc. (NYSE:HP) has signed contracts to build and operate eight additional FlexRigs, bringing to 14 the number of additional FlexRig commitments announced since the company's last earnings release. These rigs will be built and operated in the U.S. under multi-year term contracts that provide attractive dayrates and economic returns.
Since March 2010, H&P has announced contracts for the construction of 45 new build FlexRigs, of which 26 have been completed. The remaining 19 rigs are expected to be delivered during calendar 2011.
President and CEO Hans Helmerich commented, "The major shift across the industry towards oil and liquids rich plays is increasingly employing unconventional drilling techniques to conventional reservoirs. Basins that were historically characterized by shallow, vertical well paths are now seeing a greater number of drilling efforts apply horizontal well paths and longer lateral sections. These trends have clearly and favorably influenced market demand for H&P's FlexRigs. We expect demand for new FlexRigs to remain strong and we are uniquely positioned to compete in this expanding market. The value creation that our customers experience while using FlexRigs has helped to make H&P the most active contractor in the U.S. land drilling market, and we are focused on maintaining our competitive advantage."
Helmerich & Payne, Inc. is primarily a contract drilling company. As of April 28, 2011, the Company's existing fleet included 240 land rigs in the U.S., 24 international land rigs and nine offshore platform rigs. In addition, the Company is scheduled to complete during calendar 2011 another 19 new H&P-designed and operated FlexRigs under long-term contracts with customers. Upon completion of these commitments, the Company's global land fleet is expected to include a total of 224 FlexRigs.