Helmerich (HP) Declares Extra Dividend, Capex Plans for FY23
Helmerich & Payne’s HP board recently announced a quarterly cash supplemental dividend of 23.5 cents per share, payable on Dec 1, 2022, to stockholders of record at the close of the business on Nov 15, 2022. Per HP, this supplemental dividend for fiscal 2023, anticipated to be roughly $100 million in aggregate, is meant to boost shareholder returns.
The supplemental dividend declared by HP will be paid in four equal installments during the fiscal year 2023. Moreover, these surplus cash returns represent about 50% of the firm’s projected cash flow generation in fiscal 2023 after capital expenditures and base annual dividends.
HP may utilize the remaining cash flow projected to be generated in fiscal year 2023 to fund additional supplemental dividends or buy back stock. The 2023 supplemental shareholder return plan is based on the current forecasts for the year, and the plan will be adjusted in subsequent fiscal years.
The Tulsa, OK-based petroleum contract drilling company set its initial fiscal year 2023 capex budget between $425 and $475 million. This demonstrates a substantial sequential increase, emphasizing HP’s capital-intensive nature of business along with planned international expansion.
The firm also maintained its previously announced fiscal fourth-quarter guidance.
Incorporated in 1940, Helmerich & Payne Inc. is engaged in the contract drilling of oil and gas wells in the United States and internationally. The company supplies drilling rigs, equipment, personnel and camps on a contractual basis to explore and develop oil and gas from onshore areas and fixed platforms, tension-leg platforms and spars in offshore areas.
Helmerich & Payne currently sports a Zacks Rank #1 (Strong Buy). Some other similar-ranked stocks from the energy space include Murphy USA MUSA, Vista Oil & Gas VIST and Liberty Energy LBRT. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Murphy USA’s 2022 EPS has been revised upward by about 14% over the past 60 days from $21.39 to $24.38.
MUSA beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being 49%.
The consensus estimate for Vista’s 2022 earnings is pegged at $3.14 per share, which indicates an increase of 481.5% from the year-ago earnings of 54 cents.
The consensus mark for VIST’s 2022 earnings has been revised 30.1% upward over the past 60 days.
The Zacks Consensus Estimate for Liberty’s 2022 earnings is pegged at $1.76 per share, which implies an increase of about 272.5% from the year-ago loss of $1.02.
LBRT beat the consensus mark for earnings in two of the trailing four quarters, the average being around 31.7%.
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Helmerich & Payne, Inc. (HP) : Free Stock Analysis Report
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