Energy Prospectus

6:10AM Helmerich & Payne beats by $0.17, beats on revs (HP) 60.33 : Reports Q1 (Dec) earnings of $1.32 per share, $0.17 better than the Capital IQ Consensus Estimate of $1.15; revenues rose 23.2% year/year to $732.6 mln vs the $719.82 mln consensus. "We are pleased to announce strong first quarter results including an all-time record level of income from continuing operations. We also reached best ever levels for revenue and rig activity during this recent quarter. While we expect some moderation in this record breaking pace in the upcoming March quarter, we are gratified for the strong start for our 2012 fiscal year. Even with the uncertainty surrounding slumping natural gas prices and the anticipated softening in dry gas directed drilling in the U.S., we remain upbeat that our business model of providing premium drilling services will continue to prosper in 2012." The Company also announced today that it has entered into agreements with two exploration and production companies to build and operate three additional FlexRigs in the U.S.

complete report here---

http://finance.yahoo.com/news/Helmerich ... 0.html?x=0

DOWNGRADE: Helmerich & Payne (HP) downgraded by Global Hunter Securities from Accumulate to Neutral. 01/31 02:58 PM


go figure.

i need to listen to cc.

February 1, 2012
08:00 EDT HP theflyonthewall.com: Helmerich & Payne price target raised to $83 from $74 at Pritchard
Shares remain Buy rated. :theflyonthewall.com

HP FlexRigs are in VERY HIGH DEMAND. This is why I remain bullish on HP.

The Company also announced today that it has entered into agreements with two exploration and production companies to build and operate three additional FlexRigs in the U.S. These three rigs will be built under multi-year term contracts and are expected to generate attractive economic returns for the Company. Including the new builds announced today, 40 contracted FlexRigs remain under construction and are currently being completed at the rate of approximately four per month. Once these rigs are completed, the Company's global fleet is expected to include 287 FlexRigs.

We are working on the forecast and an updated company profile for HP. I hope to have it up on the website (under the Sweet 16 Tab) by this weekend.

BMO on HP:

Strong FQ1/12 Results From Best in the Business

Event
H&P reported diluted EPS of US$1.32, including an after-tax impact of
US$0.03 from the sale of assets. Excluding this, continuing EPS of US$1.29
were above our estimate of US$1.10 and consensus of US$1.16. Consolidated
revenue of US$732.6 million compared to our forecast of US$715.2 million as
all business line revenues were essentially in line. Strong utilization, pricing and
cost controls resulted in operating margins of 46.6%, above our forecast of
43.5%. H&P also announced that it has entered into contracts for three more
new-builds (bringing its program to 43 under construction).

Impact
Positive.

Forecasts
Our 2012 EPS estimate is raised slightly to US$4.97 from US$4.76 following
the results and updated guidance. We are introducing our 2013 EPS estimate of
US$4.89. The reduction in earnings in 2013 reflects our view that utilization and
pricing will decline modestly as the U.S. dry gas rig count falls slightly through
2012 and 2013 and that the company will adjust its build program accordingly.
Our outlook assumes H&P moderates its build from four rigs per month to two
beginning in 2013 in light of reduced demand for gas directed drilling activity.

Valuation
H&P’s shares trade at 5.2x 2012E EBITDA, a deserved premium to its NA
contract drilling peers. We believe valuation levels for the overall sector remain
attractive and are pricing in an imminent roll over in industry utilization, which
we do not envision in light of growth in crude and liquids rich activity. For
investors seeking contract drilling exposure, H&P remains our favourite name.

Recommendation
We are maintaining our Outperform rating and US$80 target price, implying
6.2x 2013E EBITDA.