Helmerich & Payne Reaps Rewards from Drilling Demand in Permian

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Written by Will Ploch, Assistant Editor-in-Chief for IIR News Intelligence (Sugar Land, Texas)

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Summary

Projects in the Permian Basin led among those featuring contractor Helmerich & Payne's drilling services in the most recently ended quarter, with executives upbeat about the company's role in a volatile market.

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Spraberry Fields Forever

Drilling contractor Helmerich & Payne Incorporated (H&P) seized on rising customer demand across the U.S. Oil & Gas Production Industry to deliver strong results in its fiscal third quarter, which ended June 30. The Permian Basin, in particular, is proving to be a fertile ground for developers ready to contract the company. Industrial Info Resources is tracking more than $3 billion worth of active and proposed projects featuring H&P's services, about two-thirds of which is attributed to projects for Devon Energy Corporation or Ovintiv Incorporated.

According to Industrial Info Resources data, about 75% of the total investment value is related to projects in Texas. Ovintiv alone accounts for nearly $1 billion of investment, via a series of drilling programs across the Permian Basin. One of the most prosperous areas is the Spraberry Trend, where Ovintiv and H&P are expected to have drilled at least 55 new wells in a field near Lenorah, Texas, by the end of 2026.

Ovintiv and H&P also are planning to have drilled at least 15 new wells in a Spraberry Trend field near Big Spring, Texas, over the same period. Industrial Info Resources offers more information on these programs in its Global Market Intelligence (GMI) Oil & Gas Production Project Database, where readers can find details--including construction schedules, investment values and necessary equipment--in reports on the Lenorah and Big Spring projects.

Trey Adams, the chief executive officer of H&P, said in last week's quarterly earnings-related conference call that a recent trip to the Permian showed him "every single day, there's some new 22-inch or 16-inch hole-section well record being broken, and production records being broken."

Devon's developments in the Permian include the Lea County program near Hobbs, New Mexico, where it is drilling at least 89 new wells this year, and the Loving County program near Orla, Texas, where it is drilling at least 10 new wells. Both programs primarily produce crude oil, with some associated natural gas. Readers can learn more from detailed reports on the Lea County and Loving County programs.

For its North American business, Adams said H&P "experienced a stronger than anticipated ramp-up in activity, averaging 142 contracted rigs during the third quarter, coming in above the midpoint of our activity expectations."

By the Numbers

• More than $3 billion: Total value of active and proposed projects featuring H&P's services, as tracked by Industrial Info
• About 75%: Share of the total investment value related to projects in Texas
• $270 million to $310 million: H&P's projected gross capex for its 2026 fiscal year

Fly Like an Eagle (Ford)

H&P's gross capital expenditures (capex) for its third quarter totaled $70 million. Todd Scruggs, the chief financial officer of H&P, said in the earnings call that the company "continued to trend below anticipated spending levels."

"Capex came in lighter than expected during the quarter, largely due to the timing of spending on several projects across the business," Scruggs said. "This variance primarily reflects deferred spending, rather than any change in project scope, and we therefore expect capital expenditures to increase sequentially in the fourth quarter. Importantly, we expect to remain within our guidance range of $270 million to $310 million for the full year."

H&P's other Texas-based programs this year include two Devon developments in the Eagle Ford Shale: the De Witt County program in Yorktown, Texas, where it will have drilled at least 50 new wells by mid-December, and the Karnes County program near Falls City, Texas, where it will have drilled at least 15 new wells. Both programs produce crude oil, natural gas and natural gas liquids (NGL). Readers can learn more from detailed reports on the De Witt and Karnes County programs.

EOG Resources Incorporated also is developing in the Eagle Ford, with H&P contracted for its Gonzales County program near Gonzales, Texas, where it is drilling at least 15 new wells to produce crude, gas and NGL. Readers can learn more from a detailed project report.

H&P's fiscal third-quarter operating revenues were reported to be $1.03 billion, a drop of less than 1% from the same period last year. Net income, however, stood at $75.7 million, compared with a $162.8 million net loss in third-quarter 2025; the company attributes that loss to a $173 million after-tax goodwill impairment charge.

Adams said that despite the challenges and volatility created by the conflict in the Middle East, which "continues to dominate the direction of travel of commodity prices," H&P is "well-positioned to deliver full-year results which exceed original expectations."

The Industrial Info Resources GMI Project and Plant databases offer a full list of detailed reports for projects mentioned in this article.

Industrial Info Resources also offers a full list of reports for active and proposed projects featuring H&P's services.

Key Takeaways

• H&P experienced a stronger than anticipated ramp-up in activity during the third quarter of its fiscal year.
• Devon Energy and Ovintiv account for two-thirds of the company's projects, according to Industrial Info's database.
• H&P's capital expenditures continue to trend below anticipated spending levels.

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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) helps companies identify and pursue trends across multiple markets with access to real, qualified, and verified plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).