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Released November 21, 2025 | SUGAR LAND
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Written by Will Ploch, Assistant Editor-in-Chief for Industrial Info Resources (Sugar Land, Texas)
Executives at H&P announced in a quarterly earnings-related conference call Tuesday that they expect capital expenditures (capex) for the 2026 fiscal year to total between $280 million and $320 million, including between $40 million and $60 million for the company's North American Services division. H&P's capex for full-year 2025 stood at $426 million, much of which was attributed to stronger investments in the company's Eastern Hemisphere businesses.
Michael Lennox, the executive vice president of Western Hemisphere Land Operations for H&P, noted in the earnings call that the company's North American division is investing more heavily in drilling longer laterals, which accounts for much of the division's expected spending for the coming year. Among the highest-valued projects in North America featuring H&P's services is Ovintiv Incorporated's (Calgary, Alberta) drilling program in the Sprayberry Field near Big Spring, Texas, near the heart of the Permian Basin, which added about 100 new wells in 2025.
"In the Permian Basin, the total rig count declined throughout the year as several E&Ps [exploration and production companies] reduced drilling activity in the face of softening oil price fundamentals," said Raymond Adams, the president of H&P, in the earnings call. "Despite these rig drops, our rig fleet showed great resilience. We actually expanded our share position in the Permian throughout the year."
Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project Database can learn more about the Sprayberry development--including capacities, investment values and necessary equipment--from a detailed project report.
Elsewhere in the Permian, including in other areas of the Sprayberry, H&P is at work on 14 single-well projects for Exxon Mobil Corporation (Houston, Texas). H&P's market share in the Permian rose from 33% to 37% throughout 2025, despite the drop in rigs, and its executives expect to see stable activity trends in the Lower 48 throughout 2026, assuming current commodity prices. Subscribers can learn more about H&P's work for ExxonMobil from a detailed series of project reports.
By the Numbers
"On the gas side, the rise of AI [artificial intelligence] and the surging power needs for data centers is rapidly creating a new source of demand," said John Lindsay, the chief executive officer of H&P, in the earnings call. "Coupled with the build-out of significant LNG capacity on the Gulf Coast, we see strong activity in the gas-rich basins over the next several years."
H&P's Adams pointed to H&P's successful record on working with international players on projects abroad. Chevron Corporation (Houston) is employing H&P on at least two of its projects in Argentina's Vaca Muerta Shale: the El Trapial Field, where it is drilling three new wells, and the El Trapial Este Field, where it is drilling four. Subscribers can read detailed reports on the El Trapial and El Trapial Este projects.
"We now operate in six countries, have a blue-chip customer base supported by strong contractual coverage and a global geographic palette of growth for this business going forward," Lindsay said in the earnings call.
H&P reported a net loss of $57.4 million for the fourth quarter of its 2025 fiscal year, compared with net income of $75.5 million for the same period last year. Revenues stood at $1.01 billion for the quarter, compared with $698.3 million for fourth-quarter 2024.
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active and proposed projects featuring H&P's services.
Key Takeaways
About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Summary
Drilling contractor Helmerich & Payne weathered a rocky fiscal 2025 for the Oil & Gas Industry as it expanded its role in an industry that is facing weak prices on the oil side and rocketing demand on the gas side.Permian Buoys North American Results
Helmerich & Payne Incorporated (H&P) (Tulsa, Oklahoma) wrapped up its 2025 fiscal year with a stronger presence in the Permian Basin and other hotspots for oil and gas drilling, despite a lower rig count and an increasingly challenging environment for oil exploration. The company, which remains the largest drilling contractor by active rig count in the U.S., also aims to broaden its role internationally. Industrial Info is tracking more than $1.5 billion worth of active and proposed projects featuring H&P's services, more than $860 million of which is found in Texas.Executives at H&P announced in a quarterly earnings-related conference call Tuesday that they expect capital expenditures (capex) for the 2026 fiscal year to total between $280 million and $320 million, including between $40 million and $60 million for the company's North American Services division. H&P's capex for full-year 2025 stood at $426 million, much of which was attributed to stronger investments in the company's Eastern Hemisphere businesses.
Michael Lennox, the executive vice president of Western Hemisphere Land Operations for H&P, noted in the earnings call that the company's North American division is investing more heavily in drilling longer laterals, which accounts for much of the division's expected spending for the coming year. Among the highest-valued projects in North America featuring H&P's services is Ovintiv Incorporated's (Calgary, Alberta) drilling program in the Sprayberry Field near Big Spring, Texas, near the heart of the Permian Basin, which added about 100 new wells in 2025.
"In the Permian Basin, the total rig count declined throughout the year as several E&Ps [exploration and production companies] reduced drilling activity in the face of softening oil price fundamentals," said Raymond Adams, the president of H&P, in the earnings call. "Despite these rig drops, our rig fleet showed great resilience. We actually expanded our share position in the Permian throughout the year."
Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project Database can learn more about the Sprayberry development--including capacities, investment values and necessary equipment--from a detailed project report.
Elsewhere in the Permian, including in other areas of the Sprayberry, H&P is at work on 14 single-well projects for Exxon Mobil Corporation (Houston, Texas). H&P's market share in the Permian rose from 33% to 37% throughout 2025, despite the drop in rigs, and its executives expect to see stable activity trends in the Lower 48 throughout 2026, assuming current commodity prices. Subscribers can learn more about H&P's work for ExxonMobil from a detailed series of project reports.
By the Numbers
- $280 million to $320 million: H&P's projected capex for its 2026 fiscal year
- $40 million to $60 million: H&P's projected capex for 2026 in its North American businesses
- 33% to 37%: Growth in H&P's Permian Basin market share in fiscal 2025
Global E&Ps Offer Broader Role
H&P is working on several projects for Ovintiv outside the Permian, including two in the Anadarko Basin: the Canadian County Field near Calumet, Oklahoma, which involves drilling up to 12 new wells, and the Kingfisher County Field near Kingfisher, Oklahoma, which involves drilling up to 10. Ovintiv is extracting oil, natural gas and natural gas liquids (NGL) from these locations. Subscribers can read detailed reports on the Canadian County and Kingfisher County projects."On the gas side, the rise of AI [artificial intelligence] and the surging power needs for data centers is rapidly creating a new source of demand," said John Lindsay, the chief executive officer of H&P, in the earnings call. "Coupled with the build-out of significant LNG capacity on the Gulf Coast, we see strong activity in the gas-rich basins over the next several years."
H&P's Adams pointed to H&P's successful record on working with international players on projects abroad. Chevron Corporation (Houston) is employing H&P on at least two of its projects in Argentina's Vaca Muerta Shale: the El Trapial Field, where it is drilling three new wells, and the El Trapial Este Field, where it is drilling four. Subscribers can read detailed reports on the El Trapial and El Trapial Este projects.
"We now operate in six countries, have a blue-chip customer base supported by strong contractual coverage and a global geographic palette of growth for this business going forward," Lindsay said in the earnings call.
H&P reported a net loss of $57.4 million for the fourth quarter of its 2025 fiscal year, compared with net income of $75.5 million for the same period last year. Revenues stood at $1.01 billion for the quarter, compared with $698.3 million for fourth-quarter 2024.
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active and proposed projects featuring H&P's services.
Key Takeaways
- H&P's footprint in the Oil & Gas Industry broadened in 2025, amid a challenging environment.
- Executives see "strong activity" in the gas-rich basins over the coming years.
- Chevron is among the international titans employing H&P on projects abroad.
About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
