- **North America Dominance**: 37% Permian market share, 50% rigs on performance contracts, and 20% tech adoption growth highlight operational excellence.
- **International Expansion**: 7 Saudi rigs reactivated in 2026, targeting $13-23 million Q1 margins and full run rate by year-end.
- **Financial Strength**: $1 billion+ quarterly revenue, $543 million 2025 cash flow, and $400M debt reduction on track.
- **Tech-Driven Growth**: Offshore stability (30% global O&M share) and Middle East shale tech adoption position H&amp;P for long-term growth.

**【CEO Summary Section】**
- Fiscal 2025 was pivotal for H&amp;P, with strong Q4 results and a focus on North America Solutions, international expansion, and offshore stability. North America Solutions achieved a 37% market share in the Permian Basin, up from 33%, despite industry rig count declines. International expansion included 8 FlexRigs in Saudi Arabia and the KCAD acquisition, making H&amp;P the largest global land driller. Offshore operations remain stable with 30% share of global platform O&M business.
- Technology-driven drilling is a key differentiator, with 40% of wells exceeding 3-mile laterals. The company anticipates oil prices range-bound in 2026 and focuses on returning to financial strength through cost discipline and deleveraging.

**【CFO Financial Commentary】**
- Q4 2025 revenue exceeded $1 billion, with North America Solutions direct margin at $242 million, above guidance. International segment generated $30 million in direct margins, despite reactivation costs. Full-year 2026 guidance includes CapEx of $280-320 million, with $230-250 million for maintenance and reactivation. Debt reduction is on track to pay off $400 million term loan by June 2026.
- Operating cash flow for 2025 was $543 million, supporting $100 million in dividends. 2026 EBITDA is expected to reflect margin improvements in international markets post-reactivation costs.

**【Q&A Highlights】**
- **International Rig Reactivation**: 7 Saudi Arabia rigs to resume operations in Q2-Q3 2026, boosting rig count from 17 to 24. Margins expected to improve post-Q1 2026 as reactivation costs subside.
- **North America Margins**: Resilient despite OpEx increases, with 50% of rigs on performance contracts. Q1 2026 margins expected to remain stable at $225-250 million.
- **CapEx Breakdown**: $230-250 million for maintenance and reactivation, $40-60 million for North America tech upgrades. Reactivation costs for 7 rigs included in Q1 guidance.
- **Technology Adoption**: Interest in U.S. shale tech in Middle East, Argentina, and Australia. FlexRigs in Saudi Arabia show improving margins, targeting full run rate by end-2026.

Helmerich & Payne, Inc. (HP) Q4 2025 Earnings Call Transcript

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