HP was recommended by Dow Theory Forecasts at $56.23 in Investment Digest issue 733, dated December 19, 2012.
“Helmerich & Payne, Inc. (HP $61 NYSE) shares slumped following cautious comments from its executives and rivals at an energy conference. H&P stood by its March-quarter outlook, though it didn’t specify a target. The consensus projects per-share-profit growth of 13% on 7% revenue growth in the quarter. However, H&P also noted rivals have slashed prices on U.S. land rigs in an attempt to regain market share, putting pressure on H&P’s pricing.
“As of March 15, the company operated 242 active U.S. land rigs, up 1% from the end of December. Meanwhile, Paal Kibsgaard, CEO of oilfield-services giant Schlumberger (SLB), expressed disappointment in North American activity during the March quarter, with fewer rigs reactivated than expected. Despite the pullback, H&P shares are up 9% for the year. Helmerich & Payne remains a Focus List Buy and a Long-Term Buy. Schlumberger is rated B (average).
- Richard J. Moroney, CFA, Dow Theory Forecasts, March 25, 2013