Oklahoma Inc.: Helmerich & Payne Inc. boosts market share [The Oklahoman, Oklahoma City]
(Daily Oklahoman (Oklahoma City) Via Acquire Media NewsEdge) Nov. 03--TULSA -- It has been a strange year for contract driller Helmerich and Payne Inc.
The company saw its rig count dip slightly last year, but CEO Hans Helmerich said its market share of active rigs rose from 12 percent to 15 percent.
Helmerich has a simple explanation for that phenomenon.
"We have the most modern land fleet in the world," he said.
The Tulsa-based company has built a 340-rig fleet that has made it the most active land driller in the United States.
At the Governor's Energy Conference last month in Tulsa, Helmerich said the company had about 50 more active rigs than its nearest competitor.
He said H&P's 10,000 employees are the reason the company has been able to establish its position in the industry.
Earns customer trust
H&P is a market leader because it has earned the trust of its customers for its ability to reduce well cycle times safely with minimal environmental impact.
Even in a flat or down market, H&P continues to receive premium rates, Helmerich said, because its rigs are safe and dependable.
"The customer is willing to pay for that premium reliability," he said.
H&P fared well in the metrics tracked in the Oklahoma Inc. rankings, led by a 35.7 percent increase in earnings a share. The company also logged a 10.9 percent increase in revenues for the year.
The 93-year-old drilling company's future seems bright as well.
Helmerich said H&P recently started receiving new build orders again after a six-month lull.
"Hopefully we can keep the momentum moving into 2014," he said.
H&P has benefited from its focus on the domestic market, which is home to more than 300 of its rigs, but Helmerich said he expects to see some opportunities internationally in the next few years as more countries try to duplicate the success of drillers in the U.S.
"I think there's considerable headroom to grow our international business," he said.
(c)2013 The Oklahoman
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