Helmerich & Payne, Inc. Announces Finalization of Contractual Terms with Saudi Aramco for Recent 7-rig Unconventional Gas Award

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Helmerich & Payne, Inc. (HP) announces finalization of contractual terms with Saudi Aramco for a 7-rig tender award. The super-spec rigs will be sourced from H&P's idle FlexRigs® in the U.S., converted to walking configurations, and equipped for Saudi Aramco's unconventional gas drilling. The total capex for these rigs is estimated at $175 to $196 million, with expected contributions of over $25 million to the Company's International Solutions segment direct margin annually.
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The finalized contract between Helmerich & Payne, Inc. and Saudi Aramco for the provision of seven super-spec rigs represents a significant operational commitment and potential revenue stream for H&P. The five-year duration, with an additional one-year option, provides a degree of revenue predictability and stability, which is crucial for energy sector companies, especially amidst volatile oil prices. The capital expenditure of approximately $175 to $196 million, although substantial, is planned and budgeted, indicating a strategic investment towards long-term growth in H&P's International Solutions segment.

Furthermore, the expected annualized direct margin contribution of more than $25 million enhances the financial outlook for H&P. This contract aligns with the broader industry trend towards high-efficiency, pad-capable rigs, which are increasingly in demand for unconventional drilling operations due to their ability to reduce costs and improve drilling time. The strategic move to convert idle rigs rather than investing in new builds is a capital-efficient approach that can appeal to shareholders looking for prudent capital management.

The financial implications of the contract for H&P are multifaceted. Firstly, the capex for the rigs, while significant, is spread over fiscal 2024 and early 2025, mitigating the immediate financial impact and allowing for capital allocation to be managed over multiple fiscal periods. The contract's inclusion in the fiscal 2024 capex budget suggests that H&P has planned for this expenditure without likely affecting its financial stability.

From an investor's perspective, the projected direct margin increment is a positive indicator of profitability from this deal. However, it is essential to monitor the operational efficiencies and cost management during the conversion and deployment of the rigs to ensure that the actual margins align with projections. The stable cash flow anticipated from this contract could potentially enhance H&P's financial metrics, such as EBITDA and thereby could influence the company's stock valuation positively.

The energy market is witnessing an increased focus on unconventional gas drilling, a sector where Saudi Aramco is actively expanding. H&P's contract with Aramco positions the company advantageously within this niche. The conversion of idle rigs to walking configurations, tailored for unconventional gas drilling, not only extends the life and utility of these assets but also showcases H&P's adaptive capabilities in a competitive market.

Market trends indicate a growing demand for technologically advanced rigs that can operate more efficiently and with greater mobility. H&P's investment in super-spec rigs is a response to this demand, potentially increasing the company's market share in the drilling services sector. The contract could also serve as a reference point for future deals with other oil and gas companies, signaling H&P's operational readiness and technological prowess in unconventional drilling operations.

TULSA, Okla.--(BUSINESS WIRE)-- Helmerich & Payne, Inc. (the “Company” or “H&P”) (NYSE: HP) today announced that the Company and Saudi Aramco have finalized the contractual terms related to a recent 7-rig tender award.

The seven super-spec rigs were awarded 5-year contracts, with 1-year options, and are expected to commence operations shortly after delivery, which for a majority of these rigs is scheduled during the fourth calendar quarter of 2024. Similar to the one-rig award with Saudi Aramco in August 2023, these rigs will be sourced from H&P’s idle super-spec FlexRigs® in the U.S. and, during fiscal 2024, the Company plans to convert the rigs to walking configurations and further equip them to suit Saudi Aramco’s unconventional gas drilling rig specifications. The bulk of capex required to prepare these rigs for this award was included as part of the Company’s fiscal 2024 capex budget with the remainder to be spent early in fiscal 2025. In total, expectations are for capital expenditures related to these rigs to be approximately $175 to $196 million, of which $30 to $35 million is expected to be spent in fiscal 2025. Additionally, the Company expects this contract award to contribute more than $25 million to its International Solutions segment direct margin(1) on an annualized basis.

President and CEO John Lindsay commented, “We are extremely pleased to be working with Saudi Aramco and supporting their unconventional gas drilling campaign. With the additional capital invested, we believe these highly-mobile, pad-capable super-spec rigs will be some of the most capable rigs in the world to be used for unconventional drilling. After these initial investments, we expect to create a diversified revenue source that is able to generate a stable source of cash flows with a relatively low level of additional annual maintenance capex.”

About Helmerich & Payne, Inc.

Founded in 1920, Helmerich & Payne, Inc. is committed to delivering industry leading drilling productivity and reliability. H&P operates with the highest level of integrity, safety and innovation to deliver superior results for our customers and returns for shareholders. Through its subsidiaries, the Company designs, fabricates and operates high-performance drilling rigs in conventional and unconventional plays around the world. H&P also develops and implements advanced automation, directional drilling and survey management technologies. For more information, visit

This release includes “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, and such statements are based on current expectations and assumptions that are subject to risks and uncertainties, which may prove to be inaccurate in the future and are subject to a number of risk factors. For information regarding risks and uncertainties associated with the Company’s business, please refer to the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections and other disclosures in the Company’s SEC filings, including but not limited to its annual report on Form 10‑K and quarterly reports on Form 10‑Q. We undertake no duty to publicly update or revise any forward-looking statements, whether as a result of new information, changes in internal estimates, expectations or otherwise, except as required under applicable securities laws.

Helmerich & Payne uses its website as a channel of distribution for material company information. Such information is routinely posted and accessible on its Investor Relations website at


Direct margin, which is considered a non-GAAP metric, is defined as operating revenues (less reimbursements) less direct operating expenses (less reimbursements) and is included as a supplemental disclosure. We believe it is useful in assessing and understanding our current operational performance, especially in making comparisons over time.


IR Contact:

Dave Wilson, Vice President of Investor Relations


Source: Helmerich & Payne, Inc.

The ticker symbol for Helmerich & Payne, Inc. is HP.

Helmerich & Payne, Inc. announced the finalization of contractual terms with Saudi Aramco for a 7-rig tender award.

The awarded rigs are expected to commence operations shortly after delivery, with a majority scheduled for the fourth calendar quarter of 2024.

The capital expenditures related to these rigs are estimated to be approximately $175 to $196 million, with $30 to $35 million expected to be spent in fiscal 2025.

The Company expects the contract award to contribute more than $25 million to its International Solutions segment direct margin on an annualized basis.
Helmerich & Payne, Inc.


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About HP

helmerich & payne, inc. is a leading global drilling contractor with activities in the u.s., latin america, the middle east, africa and the gulf of mexico. h&p is an industry leader in innovation, a fact most notably demonstrated by its ac flexrig® technology. h&p owns and operates the largest land fleet of ac drive drilling rigs in the world and stands as the leading u.s. unconventional driller. h&p has been a top industry performer for 95 years and is committed to maintaining this reputation through its unparalleled innovation and service. to apply for a rig-based or field position, visit