HP Helmerich & Payne Dashboard

Risks

• The impact and effects of public health crises, pandemics and epidemics, such as the ongoing outbreak of COVID-19, have adversely affected and are expected to continue to adversely affect our business, financial condition and results of operations.
• Our business depends on the level of activity in the oil and natural gas industry, which is significantly impacted by the volatility of oil and natural gas prices and other factors.
• Global economic conditions and volatility in oil and gas prices may adversely affect our business.
• The drilling services and solutions business is highly competitive, and a surplus of available drilling rigs may adversely affect our rig utilization and profit margins.
• New technologies may cause our drilling methods and equipment to become less competitive and it may become necessary to incur higher levels of capital expenditures in order to keep pace with the disruptive trends in the drilling industry. Growth through the building of new drilling rigs and improvement of existing rigs is not assured.
• Our business is subject to cybersecurity risks.
• Our acquisitions, dispositions and investments may not result in anticipated benefits and may present risks not originally contemplated, which may have a material adverse effect on our liquidity, consolidated results of operations and consolidated financial condition.
• Technology disputes could negatively impact our operations or increase our costs.
• Unexpected events could disrupt our business and adversely affect our results of operations.
• Reliance on management and competition for experienced personnel may negatively impact our operations or financial results.
• The loss of one or a number of our large customers could have a material adverse effect on our business, financial condition and results of operations.
• Our current backlog of drilling services and solutions revenue may continue to decline and may not be ultimately realized as fixed‑term contracts and may, in certain instances, be terminated without an early termination payment.
• Our contracts with national oil companies may expose us to greater risks than we normally assume in contracts with non-governmental customers.
• We depend on a limited number of vendors, some of which are thinly capitalized, and the loss of any of which could disrupt our operations.
• Shortages of drilling equipment and supplies could adversely affect our operations.
• Unionization efforts and labor regulations in certain countries in which we operate could materially increase our costs or limit our flexibility.
• Improvements in or new discoveries of alternative energy technologies could have a material adverse effect on our financial condition and results of operations.
• Our business and results of operations may be adversely affected by foreign political, economic and social instability risks, foreign currency restrictions and devaluation, and various local laws associated with doing business in certain foreign countries.
• Covenants in our debt agreements restrict our ability to engage in certain activities.
• We may be required to record impairment charges with respect to our drilling rigs and other assets.
• A downgrade in our credit ratings could negatively impact our cost of and ability to access capital.
• Our ability to access capital markets could be limited.
• Our marketable securities may lose significant value due to credit, market and interest rate risks.
• We may not be able to generate cash to service all of our indebtedness and may be forced to take other actions to satisfy our obligations.
• Changes in the method of determining the London Interbank Offered Rate, or the replacement of the London Interbank Offered Rate with an alternative reference rate, may adversely affect interest expense related to outstanding debt.
• New legislation and regulatory initiatives relating to hydraulic fracturing or other aspects of the oil and gas industry could negatively impact the drilling programs of our customers and, consequently, delay, limit or reduce the services we provide.
• Failure to comply with the U.S. Foreign Corrupt Practices Act or foreign anti‑bribery legislation could adversely affect our business.
• Our business is subject to complex and evolving laws and regulations regarding privacy and data protection.
• Government policies, mandates, and regulations specifically affecting the energy sector and related industries, regulatory policies or matters that affect a variety of businesses, taxation polices, and political instability could adversely affect our financial condition and results of operations.
• Legal claims and litigation could have a negative impact on our business.
• Additional tax liabilities and/or our significant net deferred tax liability could affect our financial condition, income tax provision, net income, and cash flows.
• We may reduce or suspend our dividend in the future.
• The market price of our common stock may be highly volatile, and investors may not be able to resell shares at or above the price paid.
• Certain provisions of our corporate governing documents could make an acquisition of our company more difficult.