COVER
COVER - shares | 3 Months Ended | |
Dec. 31, 2023 | Jan. 22, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 1-4221 | |
Entity Registrant Name | HELMERICH & PAYNE, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 73-0679879 | |
Entity Address, Address Line One | 1437 South Boulder Avenue, | |
Entity Address, Address Line Two | Suite 1400 | |
Entity Address, City or Town | Tulsa | |
Entity Address, State or Province | OK | |
Entity Address, Postal Zip Code | 74119 | |
City Area Code | 918 | |
Local Phone Number | 742-5531 | |
Title of 12(b) Security | Common Stock ($0.10 par value) | |
Trading Symbol | HP | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 98,826,568 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Current Fiscal Year End Date | --09-30 | |
Entity Central Index Key | 0000046765 |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 |
Current Assets: | ||
Cash and cash equivalents | $ 214,104 | $ 257,174 |
Restricted cash | 65,137 | 59,064 |
Short-term investments | 84,121 | 93,600 |
Accounts receivable, net of allowance of $3,948 and $2,688, respectively | 435,819 | 404,188 |
Inventories of materials and supplies, net | 101,419 | 94,227 |
Prepaid expenses and other, net | 88,080 | 97,727 |
Assets held-for-sale | 0 | 645 |
Total current assets | 988,680 | 1,006,625 |
Investments | 263,443 | 264,947 |
Property, plant and equipment, net | 2,970,371 | 2,921,695 |
Other Noncurrent Assets: | ||
Goodwill | 45,653 | 45,653 |
Intangible assets, net | 58,968 | 60,575 |
Operating lease right-of-use assets | 62,254 | 50,400 |
Other assets, net | 31,959 | 32,061 |
Total other noncurrent assets | 198,834 | 188,689 |
Total assets | 4,421,328 | 4,381,956 |
Current Liabilities: | ||
Accounts payable | 157,302 | 130,852 |
Dividends payable | 41,993 | 25,194 |
Accrued liabilities | 269,691 | 262,885 |
Total current liabilities | 468,986 | 418,931 |
Noncurrent Liabilities: | ||
Long-term debt, net | 545,292 | 545,144 |
Deferred income taxes | 510,015 | 517,809 |
Other | 137,389 | 128,129 |
Total noncurrent liabilities | 1,192,696 | 1,191,082 |
Commitments and Contingencies (Note 12) | ||
Shareholders' Equity: | ||
Common stock, $0.10 par value, 160,000,000 shares authorized, 112,222,865 shares issued as of December 31, 2023 and September 30, 2023, and 98,623,747 and 99,426,526 shares outstanding as of December 31, 2023 and September 30, 2023, respectively | 11,222 | 11,222 |
Preferred stock, no par value, 1,000,000 shares authorized, no shares issued | 0 | 0 |
Additional paid-in capital | 506,672 | 525,369 |
Retained earnings | 2,743,794 | 2,707,715 |
Accumulated other comprehensive loss | (7,847) | (7,981) |
Treasury stock, at cost, 13,599,118 shares and 12,796,339 shares as of December 31, 2023 and September 30, 2023, respectively | (494,195) | (464,382) |
Total shareholders’ equity | 2,759,646 | 2,771,943 |
Total liabilities and shareholders' equity | $ 4,421,328 | $ 4,381,956 |
UNAUDITED CONDENSED CONSOLIDA_2
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 |
Current Assets: | ||
Allowance for accounts receivable | $ 3,948 | $ 2,688 |
Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized (in shares) | 160,000,000 | 160,000,000 |
Common stock, shares issued (in shares) | 112,222,865 | 112,222,865 |
Common stock, shares outstanding (in shares) | 98,623,747 | 99,426,526 |
Preferred Stock | ||
Preferred stock shares par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Treasury Stock | ||
Treasury stock, shares (in shares) | 13,599,118 | 12,796,339 |
UNAUDITED CONDENSED CONSOLIDA_3
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
OPERATING REVENUES | ||
Drilling services | $ 674,565 | $ 717,170 |
Other | 2,582 | 2,467 |
Total operating revenues | 677,147 | 719,637 |
OPERATING COSTS AND EXPENSES | ||
Drilling services operating expenses, excluding depreciation and amortization | 403,303 | 428,251 |
Other operating expenses | 1,137 | 1,126 |
Depreciation and amortization | 93,991 | 96,655 |
Research and development | 8,608 | 6,933 |
Selling, general and administrative | 56,577 | 48,455 |
Asset impairment charges | 0 | 12,097 |
Gain on reimbursement of drilling equipment | (7,494) | (15,724) |
Other gain on sale of assets | 2,443 | 2,379 |
Total operating costs and expenses | 553,679 | 575,414 |
OPERATING INCOME | 123,468 | 144,223 |
Other income (expense) | ||
Interest and dividend income | 10,734 | 4,705 |
Interest expense | (4,372) | (4,355) |
Loss on investment securities | (4,034) | (15,091) |
Other | (543) | 58 |
Total unallocated amounts | 1,785 | (14,683) |
Income before income taxes | 125,253 | 129,540 |
Income tax expense | 30,080 | 32,395 |
NET INCOME | $ 95,173 | $ 97,145 |
Basic earnings per common share | ||
Net income (loss) (in dollars per share) | $ 0.95 | $ 0.92 |
Diluted earnings per common share: | ||
Net income (in dollars per share) | $ 0.94 | $ 0.91 |
Weighted average shares outstanding: | ||
Basic (in shares) | 99,143 | 105,248 |
Diluted (in shares) | 99,628 | 106,104 |
UNAUDITED CONDENSED CONSOLIDA_4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 95,173 | $ 97,145 |
Other comprehensive income, net of income taxes: | ||
Net change related to employee benefit plans, net of income taxes of $(39.5) thousand and $(75.1) thousand for the three months ended December 31, 2023 and 2022, respectively | 134 | 256 |
Other comprehensive income | 134 | 256 |
Comprehensive income | $ 95,307 | $ 97,401 |
UNAUDITED CONDENSED CONSOLIDA_5
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Income tax on minimum pension liability adjustments | $ (39,500) | $ (75,100) |
UNAUDITED CONDENSED CONSOLIDA_6
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Beginning balance (in shares) at Sep. 30, 2022 | 112,222,000 | |||||
Beginning balance at Sep. 30, 2022 | $ 2,765,472 | $ 11,222 | $ 528,278 | $ 2,473,572 | $ (12,072) | $ (235,528) |
Beginning balance (in shares) at Sep. 30, 2022 | 6,929,000 | |||||
Increase (Decrease) in Shareholders' Equity | ||||||
Net income | 97,145 | 97,145 | ||||
Other comprehensive income | 256 | 256 | ||||
Dividends declared | (76,611) | (76,611) | ||||
Vesting of restricted stock awards, net of shares withheld for employee taxes | (9,483) | (22,776) | $ 13,293 | |||
Vesting of restricted stock awards, net of shares withheld for employee taxes (in shares) | (449,000) | |||||
Stock-based compensation | 8,273 | 8,273 | ||||
Share repurchases (in shares) | 844,000 | |||||
Share repurchases | (39,060) | $ (39,060) | ||||
Other | (847) | (847) | ||||
Ending balance (in shares) at Dec. 31, 2022 | 112,222,000 | |||||
Ending balance at Dec. 31, 2022 | $ 2,745,145 | $ 11,222 | 512,928 | 2,494,106 | (11,816) | $ (261,295) |
Ending balance (in shares) at Dec. 31, 2022 | 7,324,000 | |||||
Beginning balance (in shares) at Sep. 30, 2023 | 99,426,526 | 112,222,000 | ||||
Beginning balance at Sep. 30, 2023 | $ 2,771,943 | $ 11,222 | 525,369 | 2,707,715 | (7,981) | $ (464,382) |
Beginning balance (in shares) at Sep. 30, 2023 | 12,796,339 | 12,796,000 | ||||
Increase (Decrease) in Shareholders' Equity | ||||||
Net income | $ 95,173 | 95,173 | ||||
Other comprehensive income | 134 | 134 | ||||
Dividends declared | (59,094) | (59,094) | ||||
Vesting of restricted stock awards, net of shares withheld for employee taxes | (8,820) | (26,661) | $ 17,841 | |||
Vesting of restricted stock awards, net of shares withheld for employee taxes (in shares) | (495,000) | |||||
Stock-based compensation | 7,672 | 7,672 | ||||
Share repurchases (in shares) | 1,298,000 | |||||
Share repurchases | (47,654) | $ (47,654) | ||||
Other | $ 292 | 292 | ||||
Ending balance (in shares) at Dec. 31, 2023 | 98,623,747 | 112,222,000 | ||||
Ending balance at Dec. 31, 2023 | $ 2,759,646 | $ 11,222 | $ 506,672 | $ 2,743,794 | $ (7,847) | $ (494,195) |
Ending balance (in shares) at Dec. 31, 2023 | 13,599,118 | 13,599,000 |
UNAUDITED CONDENSED CONSOLIDA_7
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared (in dollars per share) | $ 0.25 | $ 0.25 |
Dividends declared, supplemental (in dollars per share) | $ 0.34 | $ 0.47 |
Other | $ (847) |
UNAUDITED CONDENSED CONSOLIDA_8
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 95,173 | $ 97,145 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 93,991 | 96,655 |
Asset impairment charges | 0 | 12,097 |
Provision for credit loss | 1,309 | 3,358 |
Stock-based compensation | 7,672 | 8,273 |
Loss on investment securities | 4,034 | 15,091 |
Gain on reimbursement of drilling equipment | (7,494) | (15,724) |
Other gain on sale of assets | (2,443) | (2,379) |
Deferred income tax expense (benefit) | (7,829) | 188 |
Other | (856) | 7,274 |
Change in assets and liabilities: | ||
Accounts receivable | (28,931) | (57,896) |
Inventories of materials and supplies | (7,191) | (3,007) |
Prepaid expenses and other | (8,404) | (8,676) |
Other noncurrent assets | (1,150) | (1,746) |
Accounts payable | 23,865 | 10,450 |
Accrued liabilities | 19,022 | 20,759 |
Deferred income tax liability | (4) | (711) |
Other noncurrent liabilities | (5,966) | 4,224 |
Net cash provided by operating activities | 174,798 | 185,375 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (136,411) | (96,027) |
Purchase of short-term investments | (46,250) | (41,641) |
Purchase of long-term investments | (291) | (16,237) |
Proceeds from sale of short-term investments | 57,956 | 40,758 |
Proceeds from asset sales | 11,929 | 30,978 |
Net cash used in investing activities | (113,067) | (82,169) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Dividends paid | (42,294) | (51,764) |
Payments for employee taxes on net settlement of equity awards | (8,820) | (9,483) |
Payment of contingent consideration from acquisition of business | (250) | (250) |
Share repurchases | (47,364) | (39,060) |
Net cash used in financing activities | (98,728) | (100,557) |
Net increase (decrease) in cash and cash equivalents and restricted cash | (36,997) | 2,649 |
Cash and cash equivalents and restricted cash, beginning of period | 316,238 | 269,009 |
Cash and cash equivalents and restricted cash, end of period | 279,241 | 271,658 |
Cash paid/(received) during the period: | ||
Interest paid | 927 | 915 |
Income tax paid | 5,960 | 3,741 |
Income tax received | 0 | (25,617) |
Payments for operating leases | 3,262 | 2,474 |
Non-cash operating and investing activities: | ||
Change in accounts payable and accrued liabilities related to purchases of property, plant and equipment | $ (7,611) | $ (650) |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 3 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS | NOTE 1 NATURE OF OPERATIONS Helmerich & Payne, Inc. (“H&P,” which, together with its subsidiaries, is identified as the “Company,” “we,” “us,” or “our,” except where stated or the context requires otherwise) through its operating subsidiaries provides performance-driven drilling solutions and technologies that are intended to make hydrocarbon recovery safer and more economical for oil and gas exploration and production companies. Our drilling services operations are organized into the following reportable operating business segments: North America Solutions, Offshore Gulf of Mexico and International Solutions. Our real estate operations, our incubator program for new research and development projects and our wholly-owned captive insurance companies are included in "Other." Refer to Note 13—Business Segments and Geographic Information for further details on our reportable segments. Our North America Solutions operations are primarily located in Texas, but also traditionally operate in other states, depending on demand. Such states include: Colorado, Louisiana, New Mexico, North Dakota, Ohio, Oklahoma, Pennsylvania, Utah, West Virginia, and Wyoming. Additionally, Offshore Gulf of Mexico operations are conducted in Louisiana and in U.S. federal waters in the Gulf of Mexico and our International Solutions operations have rigs and/or services primarily located in five international locations: Argentina, Australia, Bahrain, Colombia, and the United Arab Emirates. We also own and operate a limited number of commercial real estate properties located in Tulsa, Oklahoma. Our real estate investments include a shopping center and undeveloped real estate. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES , RELATED RISKS AND UNCERTAINTIES | 3 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RELATED RISKS AND UNCERTAINTIES | NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, RELATED RISKS AND UNCERTAINTIES Interim Financial Information The accompanying Unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) pertaining to interim financial information. Accordingly, these interim financial statements do not include all information or footnote disclosures required by GAAP for complete financial statements and, therefore, should be read in conjunction with the Consolidated Financial Statements and notes thereto in our 2023 Annual Report on Form 10-K and other current filings with the SEC. In the opinion of management, all adjustments, consisting of those of a normal recurring nature, necessary to present fairly the results of the periods presented have been included. The results of operations for the interim periods presented may not necessarily be indicative of the results to be expected for the full year. Income from discontinued operations was presented as a separate line item on our Unaudited Condensed Consolidated Statements of Operations during the three months ended December 31, 2022. To conform with the current fiscal year presentation, we reclassified amounts previously presented in Income from discontinued operations, which were not material, to Other within Other income (expense) on our Unaudited Condensed Consolidated Statements of Operations for the three months ended December 31, 2022. Principles of Consolidation The Unaudited Condensed Consolidated Financial Statements include the accounts of H&P and its domestic and foreign subsidiaries. Consolidation of a subsidiary begins when the Company gains control over the subsidiary and ceases when the Company loses control of the subsidiary. Specifically, income, expenses and other comprehensive income or loss of a subsidiary acquired or disposed of during the fiscal year are included in the Unaudited Condensed Consolidated Statements of Operations and Unaudited Condensed Consolidated Statements of Comprehensive Income from the date the Company gains control until the date when the Company ceases to control the subsidiary. All intercompany accounts and transactions have been eliminated upon consolidation. Cash, Cash Equivalents, and Restricted Cash Cash and cash equivalents include cash on hand, demand deposits with banks and all highly liquid investments with original maturities of three months or less. Our cash, cash equivalents and short-term investments are subject to potential credit risk, and certain of our cash accounts carry balances greater than the federally insured limits. We recorded restricted cash of $65.1 million and $42.5 million at December 31, 2023 and 2022, respectively, and $59.1 million and $36.9 million at September 30, 2023 and 2022, respectively. All restricted cash at December 31, 2023 represents an amount management has elected to restrict for the purpose of potential insurance claims in our wholly-owned captive insurance companies. Of the total at September 30, 2023, $0.7 million is related to the acquisition of drilling technology companies, and $58.4 million represents an amount management has elected to restrict for the purpose of potential insurance claims in our wholly-owned captive insurance companies. The restricted amounts are primarily invested in short-term money market securities. Cash, cash equivalents, and restricted cash are reflected on the Unaudited Condensed Consolidated Balance Sheets as follows: December 31, September 30, (in thousands) 2023 2022 2023 2022 Cash and cash equivalents $ 214,104 $ 229,186 $ 257,174 $ 232,131 Restricted cash 65,137 42,472 59,064 36,246 Restricted cash - long-term: Other assets, net — — — 632 Total cash, cash equivalents, and restricted cash $ 279,241 $ 271,658 $ 316,238 $ 269,009 Related Party Transactions In October 2022, we made a $14.1 million equity investment, representing 106.0 million common shares in Tamboran Resources Limited ("Tamboran Resources"). In December 2023, all shares of Tamboran Resources were transferred to Tamboran Resources Corporation ("Tamboran Corp.") in exchange for depository interests in Tamboran Corp. Tamboran Corp. is publicly traded on the Australian Securities Exchange under the ticker "TBN" and is focused on developing a natural gas resource in Australia's Beetaloo Sub-basin. One of our executive officers serves as a director of Tamboran Corp. pursuant to nomination rights in the investment agreement. Refer to Note 11—Fair Value Measurement of Financial Instruments for additional information related to our investment. Concurrent with the investment agreement, we entered into a fixed-term drilling services agreement with Tamboran Resources. As of December 31, 2023, we recorded $2.8 million in receivables, $8.0 million in other assets and $5.8 million in contract liabilities on our Unaudited Condensed Consolidated Balance Sheets. As of September 30, 2023, we recorded $2.8 million in receivables, $8.0 million in other assets and $6.6 million in contract liabilities on our Consolidated Balance Sheets. We recorded $4.3 million in revenue on our Unaudited Condensed Consolidated Statement of Operations during the three months ended December 31, 2023 related to the drilling services agreement with Tamboran Resources, which commenced drilling services during the fourth fiscal quarter of 2023. We expect to earn $32.2 million in revenue over the remainder of term of the contract, and, as such, this amount is included within our contract backlog as of December 31, 2023. Recently Issued Accounting Updates Changes to U.S. GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of Accounting Standards Updates ("ASUs") to the FASB Accounting Standards Codification ("ASC"). We consider the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to be either not applicable, clarifications of ASUs listed below, immaterial, or already adopted by the Company. The following table provides a brief description of recent accounting pronouncements and our analysis of the effects on our financial statements: Standard Description Date of Effect on the Financial Standards that are not yet adopted as of December 31, 2023 ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This ASU improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in this update enhance annual and interim disclosure requirements, determine significant segment expense, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. This update is effective for annual periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. Early adoption of the amendments is permitted. Upon adoption, the amendments shall be applied retrospectively to all prior periods presented in the financial statements. October 1, 2024 We plan to adopt this ASU, as required, during fiscal year 2025. We are currently evaluating the impact of this ASU on our Consolidated Financial Statements and disclosures. ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures This ASU enhances income tax disclosure requirements. Under the ASU, public business entities must annually (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income or loss by the applicable statutory income tax rate). Specific categories that must be included in the reconciliation for each annual reporting period are specified in the amendment. This update is effective for annual periods beginning after December 15, 2024. Early adoption of the amendments is permitted. Upon adoption, the amendments shall be applied on a prospective basis. Retrospective application is permitted. October 1, 2025 We plan to adopt this ASU, as required, during fiscal year 2026. We are currently evaluating the impact of this ASU on our Consolidated Financial Statements and disclosures. Self-Insurance We continue to use our captive insurance companies to insure the deductibles for our domestic workers’ compensation, general liability, automobile liability claims programs, and medical stop-loss program and to insure the deductibles from the Company's international casualty and property programs. Our operating subsidiaries are paying premiums to the Captives, typically on a monthly basis, for the estimated losses based on an external actuarial analysis. These premiums are currently held in a restricted cash account, resulting in a transfer of risk from our operating subsidiaries to the Captives. Direct operating costs primarily consisted of adjustments to accruals for estimated losses of $3.5 million and $2.9 million and rig and casualty insurance premiums of $9.1 million and $10.0 million during the three months ended December 31, 2023 and 2022, respectively. These operating costs were recorded within Drilling services operating expenses in our Unaudited Condensed Consolidated Statement of Operations. Intercompany premium revenues recorded by the Captives during the three months ended December 31, 2023 and 2022 amounted to $15.2 million and $16.4 million, respectively, which were eliminated upon consolidation. These intercompany insurance premiums are reflected as segment operating expenses within the North America Solutions, Offshore Gulf of Mexico, and International Solutions reportable operating segments and are reflected as intersegment sales within "Other." Our medical stop loss operating expenses for the three months ended December 31, 2023 and 2022 were $4.1 million and $2.8 million, respectively. International Solutions Drilling Risks International Solutions drilling operations may significantly contribute to our revenues and net operating income. There can be no assurance that we will be able to successfully conduct such operations, and a failure to do so may have an adverse effect on our financial position, results of operations, and cash flows. Also, the success of our International Solutions operations will be subject to numerous contingencies, some of which are beyond management’s control. These contingencies include general and regional economic conditions, geopolitical developments and tensions, war and uncertainty in oil-producing countries, fluctuations in currency exchange rates, modified exchange controls, changes in international regulatory requirements and international employment issues, risk of expropriation of real and personal property and the burden of complying with foreign laws. Additionally, in the event that extended labor strikes occur or a country experiences significant political, economic or social instability, we could experience shortages in labor and/or material and supplies necessary to operate some of our drilling rigs, thereby potentially causing an adverse material effect on our business, financial condition and results of operations. We have also experienced certain risks specific to our Argentine operations. In Argentina, while our dayrate is denominated in U.S. dollars, we are paid the equivalent in Argentine pesos. The Central Bank of Argentina maintains certain currency controls that limit our ability to access U.S. dollars and remit funds from our Argentine operations. In the past, the Argentine government has also instituted price controls on crude oil, diesel and gasoline prices and instituted an exchange rate freeze in connection with those prices. These price controls and an exchange rate freeze could be instituted again in the future. Further, there are additional concerns regarding Argentina's debt burden, notwithstanding Argentina's restructuring deal with international bondholders in August 2020, as Argentina attempts to manage its substantial sovereign debt issues. These concerns could further negatively impact Argentina's economy and adversely affect our Argentine operations. Argentina’s economy is considered highly inflationary, which is defined as cumulative inflation rates exceeding 100 percent in the most recent three-year period based on inflation data published by the respective governments. All of our foreign subsidiaries use the U.S. dollar as the functional currency and local currency monetary assets and liabilities are remeasured into U.S. dollars with gains and losses resulting from foreign currency transactions included in current results of operations. We recorded aggregate foreign currency losses of $1.8 million and $0.2 million for the three months ended December 31, 2023 and 2022, respectively. The aggregate foreign currency loss for the three months ended December 31, 2023 was primarily due to Argentina's devaluation of its peso relative to the U.S. dollar by approximately 55 percent during the quarter. In the future, we may incur larger currency devaluations, foreign exchange restrictions or other difficulties repatriating U.S. dollars from Argentina or elsewhere, which could have a material adverse impact on our business, financial condition and results of operations. As of December 31, 2023, our cash balance in Argentina was the U.S. dollar equivalent of $6.9 million in Argentine Pesos. Because of the impact of local laws, our future operations in certain areas may be conducted through entities in which local citizens own interests and through entities (including joint ventures) in which we hold only a minority interest or pursuant to arrangements under which we conduct operations under contract to local entities. While we believe that neither operating through such entities nor pursuant to such arrangements would have a material adverse effect on our operations or revenues, there can be no assurance that we will in all cases be able to structure or restructure our operations to conform to local law (or the administration thereof) on terms acceptable to us. Although we attempt to minimize the potential impact of such risks by operating in more than one geographical area, during the three months ended December 31, 2023, approximately 8.2 percent of our operating revenues were generated from international locations compared to 7.7 percent during the three months ended December 31, 2022. During the three months ended December 31, 2023, approximately 78.5 percent of operating revenues from international locations were from operations in South America compared to 90.5 percent during the three months ended December 31, 2022. Substantially all of the South American operating revenues were from Argentina and Colombia. The future occurrence of one or more international events arising from the types of risks described above could have a material adverse impact on our business, financial condition and results of operations. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 3 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 3 PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment as of December 31, 2023 and September 30, 2023 consisted of the following: (in thousands) Estimated Useful Lives December 31, 2023 September 30, 2023 Drilling services equipment 4 - 15 years $ 6,463,137 $ 6,396,612 Tubulars 4 years 583,989 564,032 Real estate properties 10 - 45 years 48,033 47,313 Other 2 - 23 years 450,114 443,366 Construction in progress 1 124,994 97,374 7,670,267 7,548,697 Accumulated depreciation (4,699,896) (4,627,002) Property, plant and equipment, net $ 2,970,371 $ 2,921,695 Assets held-for-sale $ — $ 645 (1) Included in construction in progress are costs for projects in progress to upgrade or refurbish certain rigs in our existing fleet. Additionally, we include other advances for capital maintenance purchase-orders that are open/in process. As these various projects are completed, the costs are then classified to their appropriate useful life category. Depreciation Depreciation expense during the three months ended December 31, 2023 and 2022 was $92.4 million and $94.9 million, including abandonments of $0.5 million and $1.2 million, respectively. These expenses are recorded within Depreciation and amortization on our Unaudited Condensed Consolidated Statements of Operations. I n November 2022, a fire at a wellsite caused substantial damage to one of our super-spec rigs within our North America Solutions segment. The major components were destroyed beyond repair and considered a total loss, and, as a result, these assets were written off and the rig was removed from our available rig count. At the time of the loss, the rig was fully insured under replacement cost insurance. The insurance recovery is expected to exceed the net book value of the components written off. The loss of $9.2 million is recorded as abandonment expense within Depreciation and amortization in our Unaudited Condensed Consolidated Statement of Operations for the three months ended December 31, 2022 and was offset by an insurance recovery that was also recognized within Depreciation and amortization for the same amount as the loss. Future proceeds in excess of the recognized loss will be recognized once all contingencies related to the insurance claim have been resolved. Impairment Charges Fiscal Year 2024 Activity We did not record any impairment charges during the three months ended December 31, 2023. Fiscal Year 2023 Activity During the three months ended December 31, 2022, the Company initiated a plan to decommission and scrap four international FlexRig ® drilling rigs and four conventional drilling rigs located in Argentina that are not suitable for unconventional drilling. As a result, these rigs were reclassified to Assets held-for-sale on our Unaudited Condensed Consolidated Balance Sheets as of December 31, 2022. The rigs’ aggregate net book value of $8.8 million was written down to the estimated scrap value of $0.7 million, which resulted in a non-cash impairment charge of $8.1 million within our International Solutions segment and recorded in our Unaudited Condensed Consolidated Statement of Operations during the three months ended December 31, 2022. During the three months ended December 31, 2022, our North America Solutions assets that were previously classified as Assets Held-for-Sale at September 30, 2022 were either sold or written down to scrap value. The aggregate net book value of these remaining assets was $3.0 million, which exceeded the estimated scrap value of $0.3 million, resulting in a non-cash impairment charge of $2.7 million during the three months ended December 31, 2022. During the three months ended December 31, 2022, we also identified additional equipment that met the asset held-for-sale criteria and was reclassified as Assets Held-for-Sale on our Unaudited Condensed Consolidated Balance Sheets. The aggregate net book value of the equipment of $1.4 million was written down to its estimated scrap value of $0.1 million, resulting in a non-cash impairment charge of $1.3 million during the three months ended December 31, 2022. These impairment charges are recorded within our North America Solutions segment in our Unaudited Condensed Consolidation Statement of Operations. Gain on Reimbursement of Drilling Equipment We recognized gains of $7.5 million and $15.7 million during the three months ended December 31, 2023 and 2022, respectively, related to customer reimbursement for the current replacement value of lost or damaged drill pipe. Gains related to these asset sales are recorded in Gains on reimbursement of drilling equipment within our Unaudited Condensed Consolidated Statements of Operations. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 3 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | NOTE 4 GOODWILL AND INTANGIBLE ASSETS Goodwill Goodwill represents the excess of the purchase price over the fair values of the assets acquired and liabilities assumed in a business combination, at the date of acquisition. Goodwill is not amortized but is tested for potential impairment at the reporting unit level, at a minimum on an annual basis in the fourth fiscal quarter, or when indications of potential impairment exist. All of our goodwill is within our North America Solutions reportable segment. During the three months ended December 31, 2023, we had no additions or impairments to goodwill. As of December 31, 2023 and September 30, 2023, the goodwill balance was $45.7 million. Intangible Assets Finite-lived intangible assets are amortized using the straight-line method over the period in which these assets contribute to our cash flows and are evaluated for impairment in accordance with our policies for valuation of long-lived assets. All of our intangible assets are within our North America Solutions reportable segment and consist of the following: December 31, 2023 September 30, 2023 (in thousands) Weighted Average Estimated Useful Lives Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Finite-lived intangible asset: Developed technology 15 years $ 89,096 $ 35,581 $ 53,515 $ 89,096 $ 34,092 $ 55,004 Intellectual property 13 years 2,000 542 1,458 2,000 503 1,497 Trade name 20 years 5,865 1,870 3,995 5,865 1,791 4,074 $ 96,961 $ 37,993 $ 58,968 $ 96,961 $ 36,386 $ 60,575 Amortization expense in the Unaudited Condensed Consolidated Statements of Operations was $1.6 million and $1.8 million for the three months ended December 31, 2023 and 2022, respectively. Amortization expense is estimated to be approximately $4.8 million for the remainder of fiscal year 2024, and approximately $6.4 million for fiscal year 2025 through 2028. |
DEBT
DEBT | 3 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
DEBT | NOTE 5 DEBT We have the following unsecured long-term debt outstanding with maturities shown in the following table: December 31, 2023 September 30, 2023 (in thousands) Face Amount Unamortized Discount and Debt Issuance Cost Book Value Face Amount Unamortized Discount and Debt Issuance Cost Book Value Unsecured senior notes: Due September 29, 2031 $ 550,000 $ (4,708) $ 545,292 $ 550,000 $ (4,856) $ 545,144 Long-term debt $ 550,000 $ (4,708) $ 545,292 $ 550,000 $ (4,856) $ 545,144 2.90% Senior Notes due 2031 On September 29, 2021, we issued $550.0 million aggregate principal amount of the 2.90 percent 2031 Notes in an offering to persons reasonably believed to be qualified institutional buyers in the United States pursuant to Rule 144A under the Securities Act (“Rule 144A”) and to certain non-U.S. persons in transactions outside the United States pursuant to Regulation S under the Securities Act (“Regulation S”). Interest on the 2031 Notes is payable semi-annually on March 29 and September 29 of each year, commencing on March 29, 2022. In June 2022, we settled a registered exchange offer (the “Registered Exchange Offer”) to exchange the 2031 Notes for new, SEC-registered notes that are substantially identical to the terms of the 2031 Notes, except that the offer and issuance of the new notes have been registered under the Securities Act and certain transfer restrictions, registration rights and additional interest provisions relating to the 2031 Notes do not apply to the new notes. All of the 2031 Notes were exchanged in the Registered Exchange Offer. The indenture governing the 2031 Notes contains certain covenants that, among other things and subject to certain exceptions, limit the ability of the Company and its subsidiaries to incur certain liens; engage in sale and lease-back transactions; and consolidate, merge or transfer all or substantially all of the assets of the Company. The indenture governing the 2031 Notes also contains customary events of default with respect to the 2031 Notes. Credit Facility On November 13, 2018, we entered into a credit agreement by and among the Company, as borrower, Wells Fargo Bank, National Association, as administrative agent, and the lenders party thereto, which was amended on November 13, 2019, providing for an unsecured revolving credit facility (as amended, the “2018 Credit Facility”), that was set to mature on November 13, 2024. On April 16, 2021, lenders with $680.0 million of commitments under the 2018 Credit Facility exercised their option to extend the maturity of the 2018 Credit Facility from November 13, 2024 to November 12, 2025. No other terms of the 2018 Credit Facility were amended in connection with this extension. On March 8, 2022, we entered into the second amendment to the 2018 Credit Facility, which, among other things, raised the number of potential future extensions of the maturity date applicable to extending lenders from one to two such potential extensions and replaced provisions in respect of interest rate determinations that were based on the London Interbank Offered Rate with provisions based on the Secured Overnight Financing Rate. Additionally, lenders with $680.0 million of commitments under the 2018 Credit Facility exercised their option to extend the maturity of the 2018 Credit Facility from November 12, 2025 to November 11, 2026. On February 10, 2023, lenders with $680.0 million of commitments under the 2018 Credit Facility exercised their option to extend the maturity of the 2018 Credit Facility from November 11, 2026 to November 12, 2027. The remaining $70.0 million of commitments under the 2018 Credit Facility will expire on November 13, 2024, unless extended by the applicable lender before such date. The 2018 Credit Facility has $750.0 million in aggregate availability with a maximum of $75.0 million available for use as letters of credit. As of December 31, 2023, there were no borrowings or letters of credit outstanding, leaving $750.0 million available to borrow under the 2018 Credit Facility. For a full description of the 2018 Credit Facility, see Note 6—Debt to the Consolidated Financial Statements in our 2023 Annual Report on Form 10-K. As of December 31, 2023, we had $102.0 million in uncommitted bilateral credit facilities, for the purpose of obtaining the issuance of international letters of credit, bank guarantees, and performance bonds. Of the $102.0 million, $40.0 million was outstanding as of December 31, 2023. Separately, we had $2.1 million in standby letters of credit and bank guarantees outstanding. In total, we had $42.1 million outstanding as of December 31, 2023. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 6 INCOME TAXES We use an estimated annual effective tax rate for purposes of determining the income tax provision during interim reporting periods. In calculating our estimated annual effective tax rate, we consider forecasted annual pre-tax income and estimated permanent book versus tax differences. Adjustments to the effective tax rate and estimates could occur during the year as information and assumptions change which could include, but are not limited to, changes to the forecasted amounts, estimates of permanent book versus tax differences, and changes to tax laws and rates. Our income tax expense for the three months ended December 31, 2023 and 2022 was $30.1 million and $32.4 million, respectively, resulting in effective tax rates of 24.0 percent and 25.0 percent, respectively. Effective tax rates differ from the U.S. federal statutory rate of 21.0 percent for the three months ended December 31, 2023 and 2022 primarily due to state and foreign income taxes, permanent non-deductible items and discrete adjustments. The discrete adjustments for the three months ended December 31, 2023 and 2022 are primarily due to tax expense (benefit) related to equity compensation of $(0.9) million and $0.2 million, respectively. As of December 31, 2023, we have recorded approximately $3.4 million of unrecognized tax benefits, interest, and penalties. We believe it is reasonably possible that up to $2.8 million of the unrecognized tax benefits, interest, and penalties will be recognized as of June 30, 2024 as a result of a lapse of the statute of limitations. We cannot predict with certainty if we will achieve ultimate resolution of any additional uncertain tax positions associated with our U.S. and international operations resulting in additional material increases or decreases of our unrecognized tax benefits for the next twelve months. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 3 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 7 SHAREHOLDERS’ EQUITY The Company has an evergreen authorization from the Board of Directors for the repurchase of up to four million common shares in any calendar year. In December 2022, the Board of Directors increased the maximum number of shares authorized to be repurchased in calendar year 2023 to five million common shares and again on June 7, 2023, to seven million shares. The repurchases are made using our cash and cash equivalents or other available sources and are held as treasury shares on our Unaudited Condensed Consolidated Balance Sheets. We repurchased 1.3 million common shares at an aggregate cost of $47.7 million, including excise tax of $0.3 million, during the three months ended December 31, 2023, compared to 0.8 million common shares at an aggregate cost of $39.1 million during the three months ended December 31, 2022. During calendar year 2023 we repurchased substantially all of the seven million total shares authorized for repurchase. During the three months ended December 31, 2023, we declared $59.1 million in cash dividends consisting of two $0.17 per share supplemental dividends and a base cash dividend of $0.25 per share. One of the supplemental dividends, declared in October 2023, was paid in December 2023. The second supplemental dividend and base cash dividend, declared in December 2023, is payable in February 2024, resulting in a Dividend payable of $42.0 million on our Unaudited Condensed Consolidated Balance Sheets as of December 31, 2023. Accumulated Other Comprehensive Loss Components of accumulated other comprehensive loss were as follows: December 31, September 30, (in thousands) 2023 2023 Pre-tax amounts: Unrealized pension actuarial loss $ (10,233) $ (10,407) $ (10,233) $ (10,407) After-tax amounts: Unrealized pension actuarial loss $ (7,847) $ (7,981) $ (7,847) $ (7,981) Fluctuations in actuarial gains and losses are primarily due to changes in the discount rate and investment returns related to the defined benefit pension plan. The following is a summary of the changes in accumulated other comprehensive loss, net of tax, related to the defined benefit pension plan for the three months ended December 31, 2023: (in thousands) Three Months Ended December 31, 2023 Balance at beginning of period $ (7,981) Activity during the period: Amounts reclassified from accumulated other comprehensive loss 134 Net current-period other comprehensive income 134 Balance at December 31, 2023 $ (7,847) |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 3 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | NOTE 8 REVENUE FROM CONTRACTS WITH CUSTOMERS Drilling Services Revenue The majority of our drilling services are performed on a “daywork” contract basis, under which we charge a rate per day, with the price determined by the location, depth and complexity of the well to be drilled, operating conditions, the duration of the contract, and the competitive forces of the market. These drilling services, including our technology solutions, represent a series of distinct daily services that are substantially the same, with the same pattern of transfer to the customer. Because our customers benefit equally throughout the service period and our efforts in providing drilling services are incurred relatively evenly over the period of performance, revenue is recognized over time using a time-based input measure as we provide services to the customer. For any contracts that include a provision for pooled term days at contract inception, followed by the assignment of days to specific rigs throughout the contract term, we have elected, as a practical expedient, to recognize revenue in the amount for which the entity has a right to invoice, as permitted by ASC 606. Performance-based contracts are contracts pursuant to which we are compensated partly based upon our performance against a mutually agreed upon set of predetermined targets. These types of contracts are relatively new to the industry and typically have a lower base dayrate, but give us the opportunity to receive additional compensation by meeting or exceeding certain performance targets agreed to by our customers. The variable consideration that we expect to receive is estimated at the most likely amount, and constrained to an amount such that it is probable a significant reversal of revenue previously recognized will not occur based on the performance targets. Total revenue recognized from performance contracts, including performance bonuses, was $298.2 million and $270.0 million during the three months ended December 31, 2023 and 2022, respectively, of which, $15.2 million and $10.1 million was related to performance bonuses recognized due to the achievement of performance targets during the three months ended December 31, 2023 and 2022, respectively. Contracts generally contain renewal or extension provisions exercisable at the option of the customer at prices mutually agreeable to us and the customer. For contracts that are terminated by customers prior to the expirations of their fixed terms, contractual provisions customarily require early termination amounts to be paid to us. Revenues from early terminated contracts are recognized when all contractual requirements have been met. During the three months ended December 31, 2023 and 2022, early termination revenue associated with term contracts was $5.4 million and $0.7 million, respectively. Contract Costs We had capitalized fulfillment costs of $12.4 million and $11.4 million as of December 31, 2023 and September 30, 2023, respectively. Remaining Performance Obligations The total aggregate transaction price allocated to the unsatisfied performance obligations, commonly referred to as backlog, as of December 31, 2023 was approximately $1.3 billion, of which approximately $0.7 billion is expected to be recognized during the remainder of fiscal year 2024, approximately $0.4 billion during fiscal year 2025, and approximately $0.2 billion in fiscal year 2026 and thereafter. These amounts do not include anticipated contract renewals or expected performance bonuses as part of its calculation. Additionally, contracts that currently contain month-to-month terms are represented in our backlog as one month of unsatisfied performance obligations. Our contracts are subject to cancellation or modification at the election of the customer; however, due to the level of capital deployed by our customers on underlying projects, we have not been materially adversely affected by contract cancellations or modifications in the past. Contract Assets and Liabilities The following tables summarize the balances of our contract assets (net of allowance for estimated credit losses) and liabilities at the dates indicated: (in thousands) December 31, 2023 September 30, 2023 Contract assets, net $ 7,006 $ 6,560 (in thousands) December 31, 2023 Contract liabilities balance at September 30, 2023 $ 28,882 Payment received/accrued and deferred 14,395 Revenue recognized during the period (17,542) Contract liabilities balance at December 31, 2023 $ 25,735 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | NOTE 9 STOCK-BASED COMPENSATION A summary of compensation expense for stock-based payment arrangements recognized in Drilling services operating expense, Research and development expense and Selling, general and administrative expense on our Unaudited Condensed Consolidated Statements of Operations, is as follows: Three Months Ended December 31, (in thousands) 2023 2022 Stock-based compensation expense Drilling services operating $ 1,397 $ 1,385 Research and development 473 426 Selling, general and administrative 5,802 6,462 $ 7,672 $ 8,273 Restricted Stock A summary of the status of our restricted stock awards as of December 31, 2023 and changes in non-vested restricted stock outstanding during the three months then ended is presented below: (in thousands, except per share amounts) Shares 1 Weighted-Average Grant Date Fair Value per Share Non-vested restricted stock outstanding at September 30, 2023 1,362 $ 35.11 Granted 746 35.24 Vested 2 (734) 33.08 Forfeited (1) 44.65 Non-vested restricted stock outstanding at December 31, 2023 1,373 $ 36.25 (1) Restricted stock shares include restricted phantom stock units under our Director Deferred Compensation Plan. These phantom stock units confer the economic benefits of owning company stock without the actual ownership, transfer or issuance of any shares. Phantom stock units are subject to a vesting period of one year from the grant date. During the three months ended December 31, 2023, no restricted phantom stock units were granted and no restricted phantom stock units vested. (2) The number of restricted stock awards vested includes shares that we withheld on behalf of our employees to satisfy the statutory tax withholding requirements. Performance Units A summary of the status of our performance-vested restricted share units ("performance units") as of December 31, 2023 and changes in non-vested performance units outstanding during the three months then ended is presented below: (in thousands, except per unit amounts) Performance Units Weighted-Average Grant Date Fair Value per Unit Non-vested performance units outstanding at September 30, 2023 796 $ 34.51 Granted 223 39.86 Dividend equivalent rights performance units credited and performance factor adjustment 1 (115) 35.11 Non-vested performance units outstanding at December 31, 2023 2 904 $ 35.67 (1) At the end of the Vesting Period, recipients receive dividend equivalents, if any, with respect to the number of vested performance units. The vesting of units ranges from zero to 200 percent of the units granted depending on the Company’s total shareholder return ("TSR") relative to the TSR of the Peer Group on the vesting date . (2) Of the total non-vested performance units at the end of the period, specified performance criteria has been achieved with respect to 401,904 performance units which is calculated based on the payout percentage for the completed performance period. The vesting and number of the remainder of non-vested performance units reflected at the end of the period is contingent upon our achievement of specified target performance criteria. If we meet the specified relative TSR performance criteria at target, approximately 503,371 additional performance units could vest or become eligible to vest. Beginning with performance units granted in December 2022, performance units include an additional return on invested capital (“ROIC”) performance metric. Based on the Company's ROIC performance over a full three-year performance period, the Human Resources Committee may increase or decrease by 25 percent the number of performance units that otherwise would be paid out solely based on the achievement of relative TSR performance over a full three-year performance period (the "ROIC Modifier"). |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 3 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | NOTE 10 EARNINGS PER COMMON SHARE ASC 260, Earnings per Share, requires companies to treat unvested share-based payment awards that have non-forfeitable rights to dividends or dividend equivalents as a separate class of securities in calculating earnings per share. We have granted and expect to continue to grant to employees restricted stock grants that contain non-forfeitable rights to dividends. Such grants are considered participating securities under ASC 260. As such, we are required to include these grants in the calculation of our basic earnings per share and calculate basic earnings per share using the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. Basic earnings per share is computed utilizing the two-class method and is calculated based on the weighted-average number of common shares outstanding during the periods presented. Diluted earnings per share is computed using the weighted-average number of common and common equivalent shares outstanding during the periods utilizing the two-class method for stock options, non-vested restricted stock and performance units. Under the two-class method of calculating earnings per share, dividends paid and a portion of undistributed net income, but not losses, are allocated to unvested restricted stock grants that receive dividends, which are considered participating securities. During the first quarter of fiscal year 2023, Income from discontinued operations was presented as a separate line item on our Unaudited Condensed Consolidated Statements of Operations. To conform with the current fiscal year presentation, we reclassified amounts previously presented in Income from discontinued operations, which were not material, to Other within Other income (expense) on our Unaudited Condensed Consolidated Statements of Operations for the three months ended December 31, 2022. To conform with the current fiscal year presentation, basic and diluted earnings per share for continuing and discontinued operations are presented in the aggregate, for the three months ended December 31, 2022, as presented below. The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended (in thousands, except per share amounts) 2023 2022 Numerator: Net income $ 95,173 $ 97,145 Adjustment for basic earnings per share Earnings allocated to unvested shareholders (1,248) (992) Numerator for basic earnings per share 93,925 96,153 Adjustment for diluted earnings per share Effect of reallocating undistributed earnings of unvested shareholders 2 — Numerator for diluted earnings per share $ 93,927 $ 96,153 Denominator: Denominator for basic earnings per share - weighted-average shares $ 99,143 $ 105,248 Effect of dilutive shares from restricted stock and performance share units 485 856 Denominator for diluted earnings per share - adjusted weighted-average shares $ 99,628 $ 106,104 Basic earnings per common share: $ 0.95 $ 0.92 Diluted earnings per common share: $ 0.94 $ 0.91 The following potentially dilutive average shares attributable to outstanding equity awards were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive: Three Months Ended (in thousands, except per share amounts) 2023 2022 Potentially dilutive shares excluded as anti-dilutive 2,601 2,274 Weighted-average price per share $ 57.21 $ 63.51 |
FAIR VALUE MEASUREMENT OF FINAN
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS | 3 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS | NOTE 11 FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS We have certain assets and liabilities that are required to be measured and disclosed at fair value. Fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. We use the following fair value hierarchy established in ASC 820-10 to measure fair value to prioritize the inputs: • Level 1 — Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. • Level 2 — Observable inputs, other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets; quoted prices for similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Fair Value Measurements The following tables summarize our financial assets and liabilities measured at fair value and indicate the level in the fair value hierarchy in which we classify the fair value measurement as of the dates indicated below: December 31, 2023 (in thousands) Fair Value Level 1 Level 2 Level 3 Assets Short-term investments: Corporate and municipal debt securities $ 37,843 $ — $ 37,843 $ — U.S. government and federal agency securities 46,278 46,278 — — Total 84,121 46,278 37,843 — Long-term Investments: Recurring fair value measurements: Equity securities: Non-qualified supplemental savings plan 16,478 16,478 — — Investment in ADNOC Drilling 164,339 164,339 — — Investment in Tamboran 16,237 16,237 — — Debt securities: Investment in Galileo 35,868 — — 35,868 Geothermal debt securities 2,000 — — 2,000 Total 234,922 197,054 — 37,868 Nonrecurring fair value measurements 1 : Other equity securities 2 2,721 — — 2,721 Total 2,721 — — 2,721 Total 237,643 197,054 — 40,589 Liabilities Contingent consideration $ 8,350 $ — $ — $ 8,350 (1) As of December 31, 2023, our equity security investments in geothermal energy totaled $25.2 million. None of these investments were marked to fair value during the period. The investments are measured at cost, less any impairments. (2) As of December 31, 2023, our other equity securities subject to measurement at fair value on a nonrecurring basis totaled $3.3 million, of which $2.7 million has been marked to fair value. The remaining $0.6 million is measured at cost, less any impairments. September 30, 2023 (in thousands) Fair Value Level 1 Level 2 Level 3 Assets Short-term investments: Corporate debt securities $ 48,764 $ — $ 48,764 $ — U.S. government and federal agency securities 44,836 44,836 — — Total 93,600 44,836 48,764 — Long-term investments: Recurring fair value measurements: Equity securities: Non-qualified supplemental savings plan 14,597 14,597 — — Investment in ADNOC Drilling 174,758 174,758 — — Investment in Tamboran 9,920 9,920 — — Debt securities: Investment in Galileo 35,434 — — 35,434 Geothermal debt securities 2,006 — — 2,006 Total 236,715 199,275 — 37,440 Nonrecurring fair value measurements 1 : Other equity securities 2 2,430 — — 2,430 Total 2,430 — — 2,430 Total $ 239,145 $ 199,275 $ — $ 39,870 Liabilities Contingent consideration $ 9,455 $ — $ — $ 9,455 (1) As of September 30, 2023, our equity security investments in geothermal energy totaled $25.2 million. None of these investments were marked to fair value during the period. The investments are measured at cost, less any impairments. (2) As of September 30, 2023, our other equity securities subject to measurement at fair value on a nonrecurring basis totaled $3.0 million, of which $2.4 million has been marked to fair value. The remaining $0.6 million is measured at cost, less any impairments. Recurring Fair Value Measurements Short-term Investments Short-term investments primarily include securities classified as trading securities. Both realized and unrealized gains and losses on trading securities are included in other income (expense) in the Unaudited Condensed Consolidated Statements of Operations. These securities are recorded at fair value. Level 1 inputs include U.S. agency issued debt securities with active markets and money market funds. For these items, quoted current market prices are readily available. Level 2 inputs include corporate bonds measured using broker quotations that utilize observable market inputs. Long-term Investments Equity Securities Our long-term investments include debt and equity securities and assets held in a Non-Qualified Supplemental Savings Plan ("Savings Plan") and are recorded within Investments on our Unaudited Condensed Consolidated Balance Sheets. Our assets that we hold in the Savings Plan are comprised of mutual funds that are measured using Level 1 inputs. During September 2021, the Company made a $100.0 million cornerstone investment in ADNOC Drilling in advance of its announced initial public offering, representing 159.7 million shares of ADNOC Drilling, equivalent to a one percent ownership stake and subject to a three-year lockup period. ADNOC Drilling’s initial public offering was completed on October 3, 2021, and its shares are listed and traded on the Abu Dhabi Securities Exchange. Our investment is classified as a long-term equity investment within Investments on our Unaudited Condensed Consolidated Balance Sheets and measured at fair value with any gains or losses recognized through net income and recorded within Loss on investment securities on our Unaudited Condensed Consolidated Statements of Operations. Consistent with the provisions of ASU No. 2022-03, contractual sale restrictions are not considered in the fair value measurement of our investment in ADNOC Drilling. During the three months ended December 31, 2023 and 2022, we recognized losses of $10.4 million and $18.2 million, respectively, on our Unaudited Condensed Consolidated Statements of Operations, as a result of the change in fair value of the investment. As of December 31, 2023, this investment is classified as a Level 1 investment based on the quoted stock price on the Abu Dhabi Securities Exchange. Equity Securities with Fair Value Option In October 2022, we made a $14.1 million equity investment, representing 106.0 million common shares in Tamboran Resources Limited. In December 2023, all shares of Tamboran Resources were transferred to Tamboran Resources Corporation in exchange for depository interests in Tamboran Corp. Tamboran Corp. is publicly traded on the Australian Securities Exchange under the ticker "TBN" and is focused on developing a natural gas resource in Australia's Beetaloo Sub-basin. We believe we have a significant influence, but not control or joint control over the investee, due to several factors, including our ownership percentage (approximately 5.1 percent as of December 31, 2023), operational involvement and role on the investee's board of directors. Our investment is classified as a long-term equity investment within Investments on our Unaudited Condensed Consolidated Balance Sheet as of December 31, 2023. We consider this investment to have a readily determinable fair value and have elected to account for this investment using the fair value option with any changes in fair value recognized through net income. Under the guidance, Topic 820, Fair Value Measurement, this investment is classified as a Level 1 investment based on the quoted stock price which is publicly available. During the three months ended December 31, 2023 and 2022, we recognized gains of $6.3 million and $3.1 million, respectively, recorded within Loss on investment securities on our Unaudited Condensed Consolidated Statements of Operations, as a result of the change in fair value of the investment during the period. Debt Securities During April 2022, the Company made a $33.0 million cornerstone investment in Galileo Holdco 2 Limited Technologies ("Galileo Holdco 2"), part of the group of companies known as Galileo Technologies (“Galileo”) in the form of notes with an option to convert into common shares of the parent of Galileo Holdco 2 ("Galileo parent"). Galileo specializes in liquification, natural gas compression and re-gasification modular systems and technologies to make the production, transportation, and consumption of natural gas, biomethane, and hydrogen more economically viable. The convertible note bears interest at 5.0 percent per annum with a maturity date of the earlier of April 2027 or an exit event (as defined in the agreement as either an initial public offering or a sale of Galileo). During the fiscal year ended September 30, 2023, our convertible note agreement was amended to include any interest which has accrued but not yet compounded or issued as a note. As a result, we include accrued interest in our total investment balance. We currently do not intend to sell this investment prior to its maturity date or an exit event. As of December 31, 2023, the fair value of the convertible note was approximately equal to the cost basis. The following table provides quantitative information (in thousands) about our Level 3 unobservable significant inputs related to our debt security investment with Galileo at the dates included below: December 31, 2023 Fair Value Valuation Technique Unobservable Inputs $ 35,868 Black-Scholes-Merton model Discount rate 19.2 % Risk-free rate 4.3 % Equity volatility 92.0 % The above significant unobservable inputs are subject to change based on changes in economic and market conditions. The use of significant unobservable inputs creates uncertainty in the measurement of fair value as of the reporting date. Significant increases or decreases in the discount rate, risk-free rate, and equity volatility in isolation would result in a significantly lower or higher fair value measurement. It is not possible for us to predict the effect of future economic or market conditions on our estimated fair values. All of our long-term debt securities, including our investment in Galileo, are classified as available-for-sale and are measured using Level 3 unobservable inputs based on the absence of market activity. The following table reconciles changes in the fair value of our Level 3 assets for the periods presented below: Three Months Ended (in thousands) 2023 2022 Assets at beginning of period $ 37,440 $ 33,565 Purchases — 42 Accrued interest 433 — Transfers out — (500) Reserves (5) $ — Assets at end of period $ 37,868 $ 33,107 Nonrecurring Fair Value Measurements We have certain assets that are subject to measurement at fair value on a nonrecurring basis. For these nonfinancial assets, measurement at fair value in periods subsequent to their initial recognition is applicable if they are determined to be impaired. These assets generally include property, plant and equipment, goodwill, intangible assets, and operating lease right-of-use assets. If measured at fair value in the Unaudited Condensed Consolidated Balance Sheets, these would generally be classified within Level 2 or 3 of the fair value hierarchy. Further details on any changes in valuation of these assets is provided in their respective footnotes. Equity Securities We also hold various other equity securities without readily determinable fair values, primarily comprised of geothermal investments. These equity securities are initially measured at cost, less any impairments, and will be marked to fair value once observable price changes in identical or similar investments from the same issuer occur. All of our long-term equity securities are measured using Level 3 unobservable inputs based on the absence of market activity. The following table reconciles changes in the balance of our equity securities, without readily determinable fair values, for the periods presented below: Three Months Ended December 31, (in millions) 2023 2022 Assets at beginning of period $ 28,232 $ 23,745 Purchases 291 2,055 Assets at end of period $ 28,523 $ 25,800 Contingent Consideration Other financial instruments measured using Level 3 unobservable inputs primarily consist of potential earnout payments associated with our business acquisitions in fiscal year 2019. Contingent consideration is recorded in Accrued liabilities on the Unaudited Condensed Consolidated Balance Sheets based on the expected timing of milestone achievements. The following table reconciles changes in the fair value of our Level 3 liabilities for the periods presented below: Three Months Ended December 31, (in thousands) 2023 2022 Liabilities at beginning of period $ 9,455 $ 4,022 Additions — 500 Total gains or losses: Included in earnings 20 8 Settlements 1 (1,125) (750) Liabilities at end of period $ 8,350 $ 3,780 (1) Settlements represent earnout payments that have been paid or earned during the period. Other Financial Instruments The carrying amount of cash and cash equivalents and restricted cash approximates fair value due to the short-term nature of these items. The majority of cash equivalents are invested in highly liquid money-market mutual funds invested primarily in direct or indirect obligations of the U.S. Government and in federally insured deposit accounts. The carrying value of accounts receivable, other current and noncurrent assets, accounts payable, accrued liabilities and other liabilities approximated fair value at December 31, 2023 and September 30, 2023. The following information presents the supplemental fair value information for our long-term fixed-rate debt at December 31, 2023 and September 30, 2023: (in millions) December 31, 2023 September 30, 2023 Long-term debt, net Carrying value $ 545.3 $ 545.1 Fair value 471.6 435.5 The fair values of the long-term fixed-rate debt is based on broker quotes at December 31, 2023 and September 30, 2023. The notes are classified within Level 2 of the fair value hierarchy as they are not actively traded in markets. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 12 COMMITMENTS AND CONTINGENCIES Lease Obligations During the three months ended December 31, 2023, we amended the lease for our Tulsa industrial facility. As a result, we extended the lease term, now continuing through June 30, 2035 with two five year renewal options. We recognized one of the five year renewal options as part of our right-of-use assets and lease liabilities. This contract was accounted for as an operating lease resulting in an increase of $18.1 million to the right-of-use assets and lease liability on our Unaudited Condensed Consolidated Balance Sheet as of December 31, 2023. Purchase Commitments Equipment, parts, and supplies are ordered in advance to promote efficient construction and capital improvement progress. At December 31, 2023, we had purchase commitments for equipment, parts and supplies of approximately $121.7 million. Guarantee Arrangements We are contingently liable to sureties in respect of bonds issued by the sureties in connection with certain commitments entered into by us in the normal course of business. We have agreed to indemnify the sureties for any payments made by them in respect of such bonds. Contingencies During the ordinary course of our business, contingencies arise resulting from an existing condition, situation or set of circumstances involving an uncertainty as to the realization of a possible gain or loss contingency. We account for gain contingencies in accordance with the provisions of ASC 450, Contingencies, and, therefore, we do not record gain contingencies or recognize income until realized. The property and equipment of our Venezuelan subsidiary was seized by the Venezuelan government on June 30, 2010. Our wholly-owned subsidiaries, Helmerich & Payne International Drilling Co. ("HPIDC"), and Helmerich & Payne de Venezuela, C.A. filed a lawsuit in the United States District Court for the District of Columbia on September 23, 2011 against the Bolivarian Republic of Venezuela, Petroleos de Venezuela, S.A. and PDVSA Petroleo, S.A., seeking damages for the seizure of their Venezuelan drilling business in violation of international law and for breach of contract. While there exists the possibility of realizing a recovery on HPIDC's expropriation claims, we are currently unable to determine the timing or amounts we may receive, if any, or the likelihood of recovery. |
BUSINESS SEGMENTS AND GEOGRAPHI
BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION | 3 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION | NOTE 13 BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION Description of the Business We are a performance-driven drilling solutions and technologies company based in Tulsa, Oklahoma with operations in all major U.S. onshore oil and gas producing basins as well as South America, the Middle East and Australia. Our drilling operations consist mainly of contracting Company-owned drilling equipment primarily to large oil and gas exploration companies. We believe we are the recognized industry leader in drilling as well as technological innovation. We focus on offering our customers an integrated solutions-based approach by combining proprietary rig technology, automation software, and digital expertise into our rig operations rather than a product-based offering, such as a rig or separate technology package. Our drilling services operations are organized into the following reportable operating business segments: North America Solutions, Offshore Gulf of Mexico and International Solutions. Each reportable operating segment is a strategic business unit that is managed separately, and consolidated revenues and expenses reflect the elimination of all material intercompany transactions. Our real estate operations, our incubator program for new research and development projects, and our wholly-owned captive insurance companies are included in "Other." External revenues included in “Other” primarily consist of rental income. Segment Performance We evaluate segment performance based on income (segment operating income (loss)) before income taxes which includes: • Revenues from external and internal customers • Direct operating costs • Depreciation and amortization • Allocated general and administrative costs • Asset impairment charges but excludes gain on reimbursement of drilling equipment, other gain on sale of assets, corporate selling, general and administrative costs, and corporate depreciation. General and administrative costs are allocated to the segments based primarily on specific identification and, to the extent that such identification is not practical, other methods may be used which we believe to be a reasonable reflection of the utilization of services provided. Summarized financial information of our reportable segments for the three months ended December 31, 2023 and 2022 is shown in the following tables: Three Months Ended December 31, 2023 (in thousands) North America Solutions Offshore Gulf of Mexico International Solutions Other Eliminations Total External sales $ 594,282 $ 25,531 $ 54,752 $ 2,582 $ — $ 677,147 Intersegment — — — 15,226 (15,226) — Total sales 594,282 25,531 54,752 17,808 (15,226) 677,147 Segment operating income (loss) $ 144,490 $ 3,052 $ 5,423 $ (67) $ 334 $ 153,232 Three Months Ended December 31, 2022 (in thousands) North America Solutions Offshore Gulf of Mexico International Solutions Other Eliminations Total External sales $ 627,163 $ 35,164 $ 54,801 $ 2,509 $ — $ 719,637 Intersegment — — — 16,402 (16,402) — Total sales 627,163 35,164 54,801 18,911 (16,402) 719,637 Segment operating income $ 145,297 $ 6,746 $ 1,574 $ 4,677 $ 2,310 $ 160,604 The following table reconciles segment operating income (loss) per the tables above to income before income taxes as reported on the Unaudited Condensed Consolidated Statements of Operations: Three Months Ended (in thousands) 2023 2022 Segment operating income $ 153,232 $ 160,604 Gain on reimbursement of drilling equipment 7,494 15,724 Other gain on sale of assets 2,443 2,379 Corporate selling, general and administrative costs and corporate depreciation (39,701) (34,484) Operating income 123,468 144,223 Other income (expense) Interest and dividend income 10,734 4,705 Interest expense (4,372) (4,355) Loss on investment securities (4,034) (15,091) Other (543) 58 Total unallocated amounts 1,785 (14,683) Income before income taxes $ 125,253 $ 129,540 The following table reconciles segment total assets to total assets as reported on the Unaudited Condensed Consolidated Balance Sheets: (in thousands) December 31, 2023 September 30, 2023 Total assets 1 North America Solutions $ 3,347,139 $ 3,320,203 Offshore Gulf of Mexico 76,294 73,319 International Solutions 440,094 407,143 Other 148,694 154,290 4,012,221 3,954,955 Investments and corporate operations 409,107 427,001 $ 4,421,328 $ 4,381,956 (1) Assets by segment exclude investments in subsidiaries and intersegment activity. The following table presents revenues from external customers by country based on the location of service provided: Three Months Ended (in thousands) 2023 2022 Operating revenues United States $ 621,617 $ 664,173 Argentina 35,876 33,834 Colombia 7,703 16,369 Bahrain 4,497 2,269 United Arab Emirates 2,365 2,337 Australia 4,312 — Other foreign 777 655 Total $ 677,147 $ 719,637 Refer to Note 8—Revenue from Contracts with Customers for additional information regarding the recognition of revenue. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Pay vs Performance Disclosure | ||
Net income | $ 95,173 | $ 97,145 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES , RELATED RISKS AND UNCERTAINTIES (Policies) | 3 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Interim Financial Information | Interim Financial Information The accompanying Unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) pertaining to interim financial information. Accordingly, these interim financial statements do not include all information or footnote disclosures required by GAAP for complete financial statements and, therefore, should be read in conjunction with the Consolidated Financial Statements and notes thereto in our 2023 Annual Report on Form 10-K and other current filings with the SEC. In the opinion of management, all adjustments, consisting of those of a normal recurring nature, necessary to present fairly the results of the periods presented have been included. The results of operations for the interim periods presented may not necessarily be indicative of the results to be expected for the full year. |
Principles of Consolidation | Principles of Consolidation |
Cash, Cash Equivalents, and Restricted Cash | Cash, Cash Equivalents, and Restricted Cash Cash and cash equivalents include cash on hand, demand deposits with banks and all highly liquid investments with original maturities of three months or less. Our cash, cash equivalents and short-term investments are subject to potential credit risk, and certain of our cash accounts carry balances greater than the federally insured limits. |
Related Party Transactions | Related Party Transactions In October 2022, we made a $14.1 million equity investment, representing 106.0 million common shares in Tamboran Resources Limited ("Tamboran Resources"). In December 2023, all shares of Tamboran Resources were transferred to Tamboran Resources Corporation ("Tamboran Corp.") in exchange for depository interests in Tamboran Corp. Tamboran Corp. is publicly traded on the Australian Securities Exchange under the ticker "TBN" and is focused on developing a natural gas resource in Australia's Beetaloo Sub-basin. One of our executive officers serves as a director of Tamboran Corp. pursuant to nomination rights in the investment agreement. Refer to Note 11—Fair Value Measurement of Financial Instruments for additional information related to our investment. Concurrent with the investment agreement, we entered into a fixed-term drilling services agreement with Tamboran Resources. As of December 31, 2023, we recorded $2.8 million in receivables, $8.0 million in other assets and $5.8 million in contract liabilities on our Unaudited Condensed Consolidated Balance Sheets. As of September 30, 2023, we recorded $2.8 million in receivables, $8.0 million in other assets and $6.6 million in contract liabilities on our Consolidated Balance Sheets. We recorded $4.3 million in revenue on our Unaudited Condensed Consolidated Statement of Operations during the three months ended December 31, 2023 related to the drilling services agreement with Tamboran Resources, which commenced drilling services during the fourth fiscal quarter of 2023. We expect to earn $32.2 million in revenue over the remainder of term of the contract, and, as such, this amount is included within our contract backlog as of December 31, 2023. |
Recently Issued Accounting Updates | Recently Issued Accounting Updates Changes to U.S. GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of Accounting Standards Updates ("ASUs") to the FASB Accounting Standards Codification ("ASC"). We consider the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to be either not applicable, clarifications of ASUs listed below, immaterial, or already adopted by the Company. The following table provides a brief description of recent accounting pronouncements and our analysis of the effects on our financial statements: Standard Description Date of Effect on the Financial Standards that are not yet adopted as of December 31, 2023 ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This ASU improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in this update enhance annual and interim disclosure requirements, determine significant segment expense, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. This update is effective for annual periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. Early adoption of the amendments is permitted. Upon adoption, the amendments shall be applied retrospectively to all prior periods presented in the financial statements. October 1, 2024 We plan to adopt this ASU, as required, during fiscal year 2025. We are currently evaluating the impact of this ASU on our Consolidated Financial Statements and disclosures. ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures This ASU enhances income tax disclosure requirements. Under the ASU, public business entities must annually (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income or loss by the applicable statutory income tax rate). Specific categories that must be included in the reconciliation for each annual reporting period are specified in the amendment. This update is effective for annual periods beginning after December 15, 2024. Early adoption of the amendments is permitted. Upon adoption, the amendments shall be applied on a prospective basis. Retrospective application is permitted. October 1, 2025 We plan to adopt this ASU, as required, during fiscal year 2026. We are currently evaluating the impact of this ASU on our Consolidated Financial Statements and disclosures. |
Self-Insurance | Self-Insurance We continue to use our captive insurance companies to insure the deductibles for our domestic workers’ compensation, general liability, automobile liability claims programs, and medical stop-loss program and to insure the deductibles from the Company's international casualty and property programs. Our operating subsidiaries are paying premiums to the Captives, typically on a monthly basis, for the estimated losses based on an external actuarial analysis. These premiums are currently held in a restricted cash account, resulting in a transfer of risk from our operating subsidiaries to the Captives. Direct operating costs primarily consisted of adjustments to accruals for estimated losses of $3.5 million and $2.9 million and rig and casualty insurance premiums of $9.1 million and $10.0 million during the three months ended December 31, 2023 and 2022, respectively. These operating costs were recorded within Drilling services operating expenses in our Unaudited Condensed Consolidated Statement of Operations. Intercompany premium revenues recorded by the Captives during the three months ended December 31, 2023 and 2022 amounted to $15.2 million and $16.4 million, respectively, which were eliminated upon consolidation. These intercompany insurance premiums are reflected as segment operating expenses within the North America Solutions, Offshore Gulf of Mexico, and International Solutions reportable operating segments and are reflected as intersegment sales within "Other." Our medical stop loss operating expenses for the three months ended December 31, 2023 and 2022 were $4.1 million and $2.8 million, respectively. |
International Solutions Drilling Risks | International Solutions Drilling Risks International Solutions drilling operations may significantly contribute to our revenues and net operating income. There can be no assurance that we will be able to successfully conduct such operations, and a failure to do so may have an adverse effect on our financial position, results of operations, and cash flows. Also, the success of our International Solutions operations will be subject to numerous contingencies, some of which are beyond management’s control. These contingencies include general and regional economic conditions, geopolitical developments and tensions, war and uncertainty in oil-producing countries, fluctuations in currency exchange rates, modified exchange controls, changes in international regulatory requirements and international employment issues, risk of expropriation of real and personal property and the burden of complying with foreign laws. Additionally, in the event that extended labor strikes occur or a country experiences significant political, economic or social instability, we could experience shortages in labor and/or material and supplies necessary to operate some of our drilling rigs, thereby potentially causing an adverse material effect on our business, financial condition and results of operations. We have also experienced certain risks specific to our Argentine operations. In Argentina, while our dayrate is denominated in U.S. dollars, we are paid the equivalent in Argentine pesos. The Central Bank of Argentina maintains certain currency controls that limit our ability to access U.S. dollars and remit funds from our Argentine operations. In the past, the Argentine government has also instituted price controls on crude oil, diesel and gasoline prices and instituted an exchange rate freeze in connection with those prices. These price controls and an exchange rate freeze could be instituted again in the future. Further, there are additional concerns regarding Argentina's debt burden, notwithstanding Argentina's restructuring deal with international bondholders in August 2020, as Argentina attempts to manage its substantial sovereign debt issues. These concerns could further negatively impact Argentina's economy and adversely affect our Argentine operations. Argentina’s economy is considered highly inflationary, which is defined as cumulative inflation rates exceeding 100 percent in the most recent three-year period based on inflation data published by the respective governments. All of our foreign subsidiaries use the U.S. dollar as the functional currency and local currency monetary assets and liabilities are remeasured into U.S. dollars with gains and losses resulting from foreign currency transactions included in current results of operations. We recorded aggregate foreign currency losses of $1.8 million and $0.2 million for the three months ended December 31, 2023 and 2022, respectively. The aggregate foreign currency loss for the three months ended December 31, 2023 was primarily due to Argentina's devaluation of its peso relative to the U.S. dollar by approximately 55 percent during the quarter. In the future, we may incur larger currency devaluations, foreign exchange restrictions or other difficulties repatriating U.S. dollars from Argentina or elsewhere, which could have a material adverse impact on our business, financial condition and results of operations. As of December 31, 2023, our cash balance in Argentina was the U.S. dollar equivalent of $6.9 million in Argentine Pesos. Because of the impact of local laws, our future operations in certain areas may be conducted through entities in which local citizens own interests and through entities (including joint ventures) in which we hold only a minority interest or pursuant to arrangements under which we conduct operations under contract to local entities. While we believe that neither operating through such entities nor pursuant to such arrangements would have a material adverse effect on our operations or revenues, there can be no assurance that we will in all cases be able to structure or restructure our operations to conform to local law (or the administration thereof) on terms acceptable to us. |
Reclassification, Comparability Adjustment | Income from discontinued operations was presented as a separate line item on our Unaudited Condensed Consolidated Statements of Operations during the three months ended December 31, 2022. To conform with the current fiscal year presentation, we reclassified amounts previously presented in Income from discontinued operations, which were not material, to Other within Other income (expense) on our Unaudited Condensed Consolidated Statements of Operations for the three months ended December 31, 2022. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES , RELATED RISKS AND UNCERTAINTIES (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Cash and Cash Equivalents | Cash, cash equivalents, and restricted cash are reflected on the Unaudited Condensed Consolidated Balance Sheets as follows: December 31, September 30, (in thousands) 2023 2022 2023 2022 Cash and cash equivalents $ 214,104 $ 229,186 $ 257,174 $ 232,131 Restricted cash 65,137 42,472 59,064 36,246 Restricted cash - long-term: Other assets, net — — — 632 Total cash, cash equivalents, and restricted cash $ 279,241 $ 271,658 $ 316,238 $ 269,009 |
Schedule of Restricted Cash and Cash Equivalents | Cash, cash equivalents, and restricted cash are reflected on the Unaudited Condensed Consolidated Balance Sheets as follows: December 31, September 30, (in thousands) 2023 2022 2023 2022 Cash and cash equivalents $ 214,104 $ 229,186 $ 257,174 $ 232,131 Restricted cash 65,137 42,472 59,064 36,246 Restricted cash - long-term: Other assets, net — — — 632 Total cash, cash equivalents, and restricted cash $ 279,241 $ 271,658 $ 316,238 $ 269,009 |
Schedule of Description of Recent Accounting Pronouncements and Analysis of the Effects on the Financial Statements | The following table provides a brief description of recent accounting pronouncements and our analysis of the effects on our financial statements: Standard Description Date of Effect on the Financial Standards that are not yet adopted as of December 31, 2023 ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This ASU improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in this update enhance annual and interim disclosure requirements, determine significant segment expense, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. This update is effective for annual periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. Early adoption of the amendments is permitted. Upon adoption, the amendments shall be applied retrospectively to all prior periods presented in the financial statements. October 1, 2024 We plan to adopt this ASU, as required, during fiscal year 2025. We are currently evaluating the impact of this ASU on our Consolidated Financial Statements and disclosures. ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures This ASU enhances income tax disclosure requirements. Under the ASU, public business entities must annually (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income or loss by the applicable statutory income tax rate). Specific categories that must be included in the reconciliation for each annual reporting period are specified in the amendment. This update is effective for annual periods beginning after December 15, 2024. Early adoption of the amendments is permitted. Upon adoption, the amendments shall be applied on a prospective basis. Retrospective application is permitted. October 1, 2025 We plan to adopt this ASU, as required, during fiscal year 2026. We are currently evaluating the impact of this ASU on our Consolidated Financial Statements and disclosures. |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment as of December 31, 2023 and September 30, 2023 consisted of the following: (in thousands) Estimated Useful Lives December 31, 2023 September 30, 2023 Drilling services equipment 4 - 15 years $ 6,463,137 $ 6,396,612 Tubulars 4 years 583,989 564,032 Real estate properties 10 - 45 years 48,033 47,313 Other 2 - 23 years 450,114 443,366 Construction in progress 1 124,994 97,374 7,670,267 7,548,697 Accumulated depreciation (4,699,896) (4,627,002) Property, plant and equipment, net $ 2,970,371 $ 2,921,695 Assets held-for-sale $ — $ 645 (1) Included in construction in progress are costs for projects in progress to upgrade or refurbish certain rigs in our existing fleet. Additionally, we include other advances for capital maintenance purchase-orders that are open/in process. As these various projects are completed, the costs are then classified to their appropriate useful life category. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets Arising from Business Acquisitions | Finite-lived intangible assets are amortized using the straight-line method over the period in which these assets contribute to our cash flows and are evaluated for impairment in accordance with our policies for valuation of long-lived assets. All of our intangible assets are within our North America Solutions reportable segment and consist of the following: December 31, 2023 September 30, 2023 (in thousands) Weighted Average Estimated Useful Lives Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Finite-lived intangible asset: Developed technology 15 years $ 89,096 $ 35,581 $ 53,515 $ 89,096 $ 34,092 $ 55,004 Intellectual property 13 years 2,000 542 1,458 2,000 503 1,497 Trade name 20 years 5,865 1,870 3,995 5,865 1,791 4,074 $ 96,961 $ 37,993 $ 58,968 $ 96,961 $ 36,386 $ 60,575 |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Components of Unsecured Long-Term Debt Outstanding | We have the following unsecured long-term debt outstanding with maturities shown in the following table: December 31, 2023 September 30, 2023 (in thousands) Face Amount Unamortized Discount and Debt Issuance Cost Book Value Face Amount Unamortized Discount and Debt Issuance Cost Book Value Unsecured senior notes: Due September 29, 2031 $ 550,000 $ (4,708) $ 545,292 $ 550,000 $ (4,856) $ 545,144 Long-term debt $ 550,000 $ (4,708) $ 545,292 $ 550,000 $ (4,856) $ 545,144 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Components of Accumulated Other Comprehensive Loss | Components of accumulated other comprehensive loss were as follows: December 31, September 30, (in thousands) 2023 2023 Pre-tax amounts: Unrealized pension actuarial loss $ (10,233) $ (10,407) $ (10,233) $ (10,407) After-tax amounts: Unrealized pension actuarial loss $ (7,847) $ (7,981) $ (7,847) $ (7,981) |
Schedule of Changes in Accumulated Other Comprehensive Loss | The following is a summary of the changes in accumulated other comprehensive loss, net of tax, related to the defined benefit pension plan for the three months ended December 31, 2023: (in thousands) Three Months Ended December 31, 2023 Balance at beginning of period $ (7,981) Activity during the period: Amounts reclassified from accumulated other comprehensive loss 134 Net current-period other comprehensive income 134 Balance at December 31, 2023 $ (7,847) |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contract Assets and Liabilities | The following tables summarize the balances of our contract assets (net of allowance for estimated credit losses) and liabilities at the dates indicated: (in thousands) December 31, 2023 September 30, 2023 Contract assets, net $ 7,006 $ 6,560 (in thousands) December 31, 2023 Contract liabilities balance at September 30, 2023 $ 28,882 Payment received/accrued and deferred 14,395 Revenue recognized during the period (17,542) Contract liabilities balance at December 31, 2023 $ 25,735 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Compensation Cost for Stock-Based Payment Arrangements | A summary of compensation expense for stock-based payment arrangements recognized in Drilling services operating expense, Research and development expense and Selling, general and administrative expense on our Unaudited Condensed Consolidated Statements of Operations, is as follows: Three Months Ended December 31, (in thousands) 2023 2022 Stock-based compensation expense Drilling services operating $ 1,397 $ 1,385 Research and development 473 426 Selling, general and administrative 5,802 6,462 $ 7,672 $ 8,273 |
Schedule of the Status of Restricted Stock Awards and Changes in Restricted Stock Outstanding | A summary of the status of our restricted stock awards as of December 31, 2023 and changes in non-vested restricted stock outstanding during the three months then ended is presented below: (in thousands, except per share amounts) Shares 1 Weighted-Average Grant Date Fair Value per Share Non-vested restricted stock outstanding at September 30, 2023 1,362 $ 35.11 Granted 746 35.24 Vested 2 (734) 33.08 Forfeited (1) 44.65 Non-vested restricted stock outstanding at December 31, 2023 1,373 $ 36.25 (1) Restricted stock shares include restricted phantom stock units under our Director Deferred Compensation Plan. These phantom stock units confer the economic benefits of owning company stock without the actual ownership, transfer or issuance of any shares. Phantom stock units are subject to a vesting period of one year from the grant date. During the three months ended December 31, 2023, no restricted phantom stock units were granted and no restricted phantom stock units vested. (2) The number of restricted stock awards vested includes shares that we withheld on behalf of our employees to satisfy the statutory tax withholding requirements. A summary of the status of our performance-vested restricted share units ("performance units") as of December 31, 2023 and changes in non-vested performance units outstanding during the three months then ended is presented below: (in thousands, except per unit amounts) Performance Units Weighted-Average Grant Date Fair Value per Unit Non-vested performance units outstanding at September 30, 2023 796 $ 34.51 Granted 223 39.86 Dividend equivalent rights performance units credited and performance factor adjustment 1 (115) 35.11 Non-vested performance units outstanding at December 31, 2023 2 904 $ 35.67 (1) At the end of the Vesting Period, recipients receive dividend equivalents, if any, with respect to the number of vested performance units. The vesting of units ranges from zero to 200 percent of the units granted depending on the Company’s total shareholder return ("TSR") relative to the TSR of the Peer Group on the vesting date . (2) |
EARNINGS (LOSSES) PER COMMON SH
EARNINGS (LOSSES) PER COMMON SHARE (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended (in thousands, except per share amounts) 2023 2022 Numerator: Net income $ 95,173 $ 97,145 Adjustment for basic earnings per share Earnings allocated to unvested shareholders (1,248) (992) Numerator for basic earnings per share 93,925 96,153 Adjustment for diluted earnings per share Effect of reallocating undistributed earnings of unvested shareholders 2 — Numerator for diluted earnings per share $ 93,927 $ 96,153 Denominator: Denominator for basic earnings per share - weighted-average shares $ 99,143 $ 105,248 Effect of dilutive shares from restricted stock and performance share units 485 856 Denominator for diluted earnings per share - adjusted weighted-average shares $ 99,628 $ 106,104 Basic earnings per common share: $ 0.95 $ 0.92 Diluted earnings per common share: $ 0.94 $ 0.91 |
Schedule of Anti-Dilutive Shares Excluded from the Calculation of Diluted Earnings Per Share | The following potentially dilutive average shares attributable to outstanding equity awards were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive: Three Months Ended (in thousands, except per share amounts) 2023 2022 Potentially dilutive shares excluded as anti-dilutive 2,601 2,274 Weighted-average price per share $ 57.21 $ 63.51 |
FAIR VALUE MEASUREMENT OF FIN_2
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables summarize our financial assets and liabilities measured at fair value and indicate the level in the fair value hierarchy in which we classify the fair value measurement as of the dates indicated below: December 31, 2023 (in thousands) Fair Value Level 1 Level 2 Level 3 Assets Short-term investments: Corporate and municipal debt securities $ 37,843 $ — $ 37,843 $ — U.S. government and federal agency securities 46,278 46,278 — — Total 84,121 46,278 37,843 — Long-term Investments: Recurring fair value measurements: Equity securities: Non-qualified supplemental savings plan 16,478 16,478 — — Investment in ADNOC Drilling 164,339 164,339 — — Investment in Tamboran 16,237 16,237 — — Debt securities: Investment in Galileo 35,868 — — 35,868 Geothermal debt securities 2,000 — — 2,000 Total 234,922 197,054 — 37,868 Nonrecurring fair value measurements 1 : Other equity securities 2 2,721 — — 2,721 Total 2,721 — — 2,721 Total 237,643 197,054 — 40,589 Liabilities Contingent consideration $ 8,350 $ — $ — $ 8,350 (1) As of December 31, 2023, our equity security investments in geothermal energy totaled $25.2 million. None of these investments were marked to fair value during the period. The investments are measured at cost, less any impairments. (2) As of December 31, 2023, our other equity securities subject to measurement at fair value on a nonrecurring basis totaled $3.3 million, of which $2.7 million has been marked to fair value. The remaining $0.6 million is measured at cost, less any impairments. September 30, 2023 (in thousands) Fair Value Level 1 Level 2 Level 3 Assets Short-term investments: Corporate debt securities $ 48,764 $ — $ 48,764 $ — U.S. government and federal agency securities 44,836 44,836 — — Total 93,600 44,836 48,764 — Long-term investments: Recurring fair value measurements: Equity securities: Non-qualified supplemental savings plan 14,597 14,597 — — Investment in ADNOC Drilling 174,758 174,758 — — Investment in Tamboran 9,920 9,920 — — Debt securities: Investment in Galileo 35,434 — — 35,434 Geothermal debt securities 2,006 — — 2,006 Total 236,715 199,275 — 37,440 Nonrecurring fair value measurements 1 : Other equity securities 2 2,430 — — 2,430 Total 2,430 — — 2,430 Total $ 239,145 $ 199,275 $ — $ 39,870 Liabilities Contingent consideration $ 9,455 $ — $ — $ 9,455 (1) As of September 30, 2023, our equity security investments in geothermal energy totaled $25.2 million. None of these investments were marked to fair value during the period. The investments are measured at cost, less any impairments. (2) As of September 30, 2023, our other equity securities subject to measurement at fair value on a nonrecurring basis totaled $3.0 million, of which $2.4 million has been marked to fair value. The remaining $0.6 million is measured at cost, less any impairments. |
Schedule of Fair Value, Debt Security Measured on Recurring Basis, Unobservable Input Reconciliation | The following table provides quantitative information (in thousands) about our Level 3 unobservable significant inputs related to our debt security investment with Galileo at the dates included below: December 31, 2023 Fair Value Valuation Technique Unobservable Inputs $ 35,868 Black-Scholes-Merton model Discount rate 19.2 % Risk-free rate 4.3 % Equity volatility 92.0 % The following table reconciles changes in the balance of our equity securities, without readily determinable fair values, for the periods presented below: Three Months Ended December 31, (in millions) 2023 2022 Assets at beginning of period $ 28,232 $ 23,745 Purchases 291 2,055 Assets at end of period $ 28,523 $ 25,800 |
Schedule of Reconciliation of Long Term Debt Securities Available For Sale, Classified as Level 3 | The following table reconciles changes in the fair value of our Level 3 assets for the periods presented below: Three Months Ended (in thousands) 2023 2022 Assets at beginning of period $ 37,440 $ 33,565 Purchases — 42 Accrued interest 433 — Transfers out — (500) Reserves (5) $ — Assets at end of period $ 37,868 $ 33,107 The following table reconciles changes in the balance of our equity securities, without readily determinable fair values, for the periods presented below: Three Months Ended December 31, (in millions) 2023 2022 Assets at beginning of period $ 28,232 $ 23,745 Purchases 291 2,055 Assets at end of period $ 28,523 $ 25,800 |
Schedule of Reconciliation of Changes in Fair Value of Financial Liabilities Classified as Level 3 | The following table reconciles changes in the fair value of our Level 3 liabilities for the periods presented below: Three Months Ended December 31, (in thousands) 2023 2022 Liabilities at beginning of period $ 9,455 $ 4,022 Additions — 500 Total gains or losses: Included in earnings 20 8 Settlements 1 (1,125) (750) Liabilities at end of period $ 8,350 $ 3,780 (1) Settlements represent earnout payments that have been paid or earned during the period. |
Schedule of Supplemental Fair Value Information about Long-Term Fixed-Rate Debt | The following information presents the supplemental fair value information for our long-term fixed-rate debt at December 31, 2023 and September 30, 2023: (in millions) December 31, 2023 September 30, 2023 Long-term debt, net Carrying value $ 545.3 $ 545.1 Fair value 471.6 435.5 |
BUSINESS SEGMENTS AND GEOGRAP_2
BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information of Reportable Segments | Summarized financial information of our reportable segments for the three months ended December 31, 2023 and 2022 is shown in the following tables: Three Months Ended December 31, 2023 (in thousands) North America Solutions Offshore Gulf of Mexico International Solutions Other Eliminations Total External sales $ 594,282 $ 25,531 $ 54,752 $ 2,582 $ — $ 677,147 Intersegment — — — 15,226 (15,226) — Total sales 594,282 25,531 54,752 17,808 (15,226) 677,147 Segment operating income (loss) $ 144,490 $ 3,052 $ 5,423 $ (67) $ 334 $ 153,232 Three Months Ended December 31, 2022 (in thousands) North America Solutions Offshore Gulf of Mexico International Solutions Other Eliminations Total External sales $ 627,163 $ 35,164 $ 54,801 $ 2,509 $ — $ 719,637 Intersegment — — — 16,402 (16,402) — Total sales 627,163 35,164 54,801 18,911 (16,402) 719,637 Segment operating income $ 145,297 $ 6,746 $ 1,574 $ 4,677 $ 2,310 $ 160,604 |
Schedule of Reconciliation of Segment Operating Income (Loss) to Income from Continuing Operations Before Income Taxes | The following table reconciles segment operating income (loss) per the tables above to income before income taxes as reported on the Unaudited Condensed Consolidated Statements of Operations: Three Months Ended (in thousands) 2023 2022 Segment operating income $ 153,232 $ 160,604 Gain on reimbursement of drilling equipment 7,494 15,724 Other gain on sale of assets 2,443 2,379 Corporate selling, general and administrative costs and corporate depreciation (39,701) (34,484) Operating income 123,468 144,223 Other income (expense) Interest and dividend income 10,734 4,705 Interest expense (4,372) (4,355) Loss on investment securities (4,034) (15,091) Other (543) 58 Total unallocated amounts 1,785 (14,683) Income before income taxes $ 125,253 $ 129,540 |
Schedule of Total Assets by Reportable Segment | The following table reconciles segment total assets to total assets as reported on the Unaudited Condensed Consolidated Balance Sheets: (in thousands) December 31, 2023 September 30, 2023 Total assets 1 North America Solutions $ 3,347,139 $ 3,320,203 Offshore Gulf of Mexico 76,294 73,319 International Solutions 440,094 407,143 Other 148,694 154,290 4,012,221 3,954,955 Investments and corporate operations 409,107 427,001 $ 4,421,328 $ 4,381,956 (1) Assets by segment exclude investments in subsidiaries and intersegment activity. |
Schedule of Revenues from External Customers by Country | The following table presents revenues from external customers by country based on the location of service provided: Three Months Ended (in thousands) 2023 2022 Operating revenues United States $ 621,617 $ 664,173 Argentina 35,876 33,834 Colombia 7,703 16,369 Bahrain 4,497 2,269 United Arab Emirates 2,365 2,337 Australia 4,312 — Other foreign 777 655 Total $ 677,147 $ 719,637 |
NATURE OF OPERATIONS (Details)
NATURE OF OPERATIONS (Details) | 3 Months Ended |
Dec. 31, 2023 location | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of international locations | 5 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, RELATED RISKS AND UNCERTAINTIES - Narrative (Details) $ in Thousands, shares in Millions | 1 Months Ended | 3 Months Ended | |||
Oct. 31, 2022 USD ($) shares | Dec. 31, 2023 USD ($) geographical_area | Dec. 31, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||||
Restricted cash and cash equivalents | $ 65,100 | $ 42,500 | $ 59,100 | $ 36,900 | |
Additional cash and cash equivalents restricted at the election of management for potential insurance claims | 58,400 | ||||
Receivables | 435,819 | 404,188 | |||
Contract liability | 25,735 | 28,882 | |||
Underwriting expense | 3,500 | 2,900 | |||
Casualty insurance premiums | 9,100 | 10,000 | |||
Premium revenues and expenses | 15,200 | 16,400 | |||
Stop-loss medical expenses | $ 4,100 | 2,800 | |||
Cumulative inflation rate before a country is considered highly inflationary | 100% | ||||
Foreign currency losses | $ 1,800 | 200 | |||
Drilling services | 674,565 | $ 717,170 | |||
Other assets, net | 31,959 | 32,061 | |||
Tamboran Resources Limited | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Payments to acquire investments | $ 14,100 | ||||
Investment shares acquired (in shares) | shares | 106 | ||||
Investee | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Receivables | 2,800 | 2,800 | |||
Contract liability | 5,800 | 6,600 | |||
Expected revenue | 32,200 | ||||
Drilling services | 4,300 | ||||
Other assets, net | $ 8,000 | 8,000 | |||
International Locations | Geographic Concentration Risk | Operating Revenue | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Concentration percentage | 8.20% | 7.70% | |||
Minimum | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Number of geographical areas operating | geographical_area | 1 | ||||
Argentina | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Cash | $ 6,900 | ||||
South America | International Locations | Geographic Concentration Risk | Operating Revenue | International Solutions | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Concentration percentage | 78.50% | 90.50% | |||
Acquisition of Drilling Technologies Companies | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Restricted cash and cash equivalents | $ 700 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES , RELATED RISKS AND UNCERTAINTIES - Restricted Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Restricted Cash and Investments | ||||
Cash and cash equivalents | $ 214,104 | $ 257,174 | $ 229,186 | $ 232,131 |
Restricted cash and cash equivalents | 65,100 | 59,100 | 42,500 | 36,900 |
Total cash, cash equivalents, and restricted cash | 279,241 | 316,238 | 271,658 | 269,009 |
Restricted cash | ||||
Restricted Cash and Investments | ||||
Restricted cash and cash equivalents | 65,137 | 59,064 | 42,472 | 36,246 |
Other assets, net | ||||
Restricted Cash and Investments | ||||
Restricted cash and cash equivalents | $ 0 | $ 0 | $ 0 | $ 632 |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Summary of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 7,670,267 | $ 7,548,697 |
Accumulated depreciation | (4,699,896) | (4,627,002) |
Property, plant and equipment, net | 2,970,371 | 2,921,695 |
Assets held-for-sale | 0 | 645 |
Drilling services equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 6,463,137 | 6,396,612 |
Drilling services equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 4 years | |
Drilling services equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 15 years | |
Tubulars | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 4 years | |
Property, plant and equipment, gross | $ 583,989 | 564,032 |
Real estate properties | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 48,033 | 47,313 |
Real estate properties | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 10 years | |
Real estate properties | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 45 years | |
Other | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 450,114 | 443,366 |
Other | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 2 years | |
Other | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 23 years | |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 124,994 | $ 97,374 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT - Narrative (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Nov. 30, 2022 rig | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) rig | Sep. 30, 2023 USD ($) | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation | $ 92,400 | $ 94,900 | ||
Abandonments included in depreciation | 500 | 1,200 | ||
Rigs damaged by fire | rig | 1 | |||
Abandonment expense | 9,200 | |||
Property, plant and equipment, net | 2,970,371 | $ 2,921,695 | ||
Asset impairment charges | 0 | 12,097 | ||
Gain on reimbursement of drilling equipment | $ 7,494 | $ 15,724 | ||
International FlexRig | ||||
Property, Plant and Equipment [Line Items] | ||||
Number of rigs, held-for -sale | rig | 4 | |||
Property, plant and equipment, net | $ 8,800 | |||
Property, plant, and equipment, salvage value | 700 | |||
Asset impairment charges | $ 8,100 | |||
Conventional Drilling Rigs | ||||
Property, Plant and Equipment [Line Items] | ||||
Number of rigs, held-for -sale | rig | 4 | |||
Assets Previously Held For Sale | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, net | $ 3,000 | |||
Property, plant, and equipment, salvage value | 300 | |||
Asset impairment charges | 2,700 | |||
Additional Equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, net | 1,400 | |||
Property, plant, and equipment, salvage value | 100 | |||
Asset impairment charges | $ 1,300 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT - Summary of Assets Held-for-Sale (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Change In Assets Held-For-Sale [Roll Forward] | |
Assets held-for-sale, beginning balance | $ 645 |
Assets held-for-sale, ending balance | $ 0 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($) | 3 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill additions | $ 0 | ||
Impairments of goodwill | 0 | ||
Goodwill | 45,653,000 | $ 45,653,000 | |
Amortization | 1,600,000 | $ 1,800,000 | |
Expected amortization in 2024 | 4,800,000 | ||
Expected amortization in 2025 | 6,400,000 | ||
Expected amortization in 2026 | 6,400,000 | ||
Expected amortization in 2027 | 6,400,000 | ||
Expected amortization in 2028 | $ 6,400,000 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Intangible Assets Arising from Business Acquisitions (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 96,961 | $ 96,961 |
Accumulated Amortization | 37,993 | 36,386 |
Net | $ 58,968 | 60,575 |
Developed technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Estimated Useful Lives | 15 years | |
Gross Carrying Amount | $ 89,096 | 89,096 |
Accumulated Amortization | 35,581 | 34,092 |
Net | $ 53,515 | 55,004 |
Intellectual property | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Estimated Useful Lives | 13 years | |
Gross Carrying Amount | $ 2,000 | 2,000 |
Accumulated Amortization | 542 | 503 |
Net | $ 1,458 | 1,497 |
Trade name | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Estimated Useful Lives | 20 years | |
Gross Carrying Amount | $ 5,865 | 5,865 |
Accumulated Amortization | 1,870 | 1,791 |
Net | $ 3,995 | $ 4,074 |
DEBT - Unsecured Long-Term Debt
DEBT - Unsecured Long-Term Debt Outstanding (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 |
Long-term debt | ||
Face Amount | $ 550,000 | $ 550,000 |
Unamortized Discount and Debt Issuance Cost | (4,708) | (4,856) |
Long-term debt, net | 545,292 | 545,144 |
Unsecured Senior Notes due September 29, 2031 | ||
Long-term debt, gross | ||
Face Amount | 550,000 | 550,000 |
Unamortized Discount and Debt Issuance Cost | (4,708) | (4,856) |
Book Value | $ 545,292 | $ 545,144 |
DEBT - Narrative (Details)
DEBT - Narrative (Details) | Dec. 31, 2023 USD ($) | Feb. 10, 2023 USD ($) | Mar. 08, 2022 USD ($) optionForDebtExtension | Mar. 07, 2022 optionForDebtExtension | Sep. 29, 2021 USD ($) | Apr. 16, 2021 USD ($) | Nov. 13, 2018 USD ($) |
Unsecured Senior Notes due September 29, 2031 | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate (as a percent) | 2.90% | ||||||
Face amount of debt | $ 550,000,000 | ||||||
2018 Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 750,000,000 | ||||||
Borrowings outstanding | $ 0 | ||||||
Available borrowing capacity | 750,000,000 | ||||||
2018 Credit Facility | Letters of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 75,000,000 | ||||||
2018 Credit Facility, Due November 2025 | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 680,000,000 | $ 680,000,000 | $ 680,000,000 | ||||
Number of debt extensions | optionForDebtExtension | 2 | 1 | |||||
2018 Credit Facility, Due November 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 70,000,000 | ||||||
Unsecured Standalone Line of Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 102,000,000 | ||||||
Borrowings outstanding | 40,000,000 | ||||||
Letter of Credit - Instrument 1 | Letters of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Letters of credit outstanding | 2,100,000 | ||||||
Letter of Credit - Instrument 3 | Letters of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Letters of credit outstanding | $ 42,100,000 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 30,080 | $ 32,395 |
Effective tax rate (as a percent) | 24% | 25% |
Federal statutory income tax rate (as percent) | 21% | 21% |
Potential increase (decrease) in uncertain tax liabilities | $ 3,400 | |
Potential decrease in uncertain tax liabilities | 2,800 | |
Effective tax expense (benefit) related to equity compensation | $ (900) | $ 200 |
SHAREHOLDERS' EQUITY - Narrativ
SHAREHOLDERS' EQUITY - Narrative (Details) $ / shares in Units, $ in Thousands, shares in Millions | 3 Months Ended | ||||
Dec. 31, 2023 USD ($) unit_Item $ / shares shares | Sep. 30, 2023 USD ($) $ / shares | Dec. 31, 2022 USD ($) $ / shares shares | Jun. 07, 2023 shares | Nov. 30, 2022 shares | |
Stockholders' Equity Note [Abstract] | |||||
Number of common shares authorized to be repurchased (in shares) | shares | 5 | 7 | 4 | ||
Shares of common stock repurchased (in shares) | shares | 1.3 | 0.8 | |||
Aggregate cost of repurchased shares | $ 47,700 | $ 39,100 | |||
Excise tax | 300 | ||||
Cash dividends | 59,094 | $ 76,611 | |||
Dividends declared (in dollars per share) | $ / shares | $ 0.25 | $ 0.25 | |||
Dividends payable | $ 41,993 | $ 25,194 | |||
Dividends cash paid (in dollars per share) | $ / shares | $ 0.17 | ||||
Common Stock Dividends Number Of Distributions Declared | unit_Item | 2 |
SHAREHOLDERS' EQUITY - Componen
SHAREHOLDERS' EQUITY - Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 |
After-tax amounts: | ||
Unrealized pension actuarial loss | $ (7,847) | $ (7,981) |
Unrealized pension actuarial loss | ||
Pre-tax amounts: | ||
Unrealized pension actuarial loss | (10,233) | (10,407) |
After-tax amounts: | ||
Unrealized pension actuarial loss | (7,847) | (7,981) |
Accumulated Other Comprehensive Income (Loss) | ||
Pre-tax amounts: | ||
Unrealized pension actuarial loss | (10,233) | (10,407) |
After-tax amounts: | ||
Unrealized pension actuarial loss | $ (7,847) | $ (7,981) |
SHAREHOLDERS' EQUITY - Summary
SHAREHOLDERS' EQUITY - Summary of Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Rollforward of accumulated other comprehensive income (loss), net of tax | ||
Beginning balance | $ 2,771,943 | $ 2,765,472 |
Other comprehensive income | 134 | 256 |
Ending balance | 2,759,646 | $ 2,745,145 |
Unrealized pension actuarial loss | ||
Rollforward of accumulated other comprehensive income (loss), net of tax | ||
Beginning balance | (7,981) | |
Amounts reclassified from accumulated other comprehensive loss | 134 | |
Other comprehensive income | 134 | |
Ending balance | $ (7,847) |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |||
Revenue from performance contracts | $ 298.2 | $ 270 | |
Contract with Customer Liability Revenue Recognized Including Opening Balance on Achievement of Performance Targets | 15.2 | 10.1 | |
Early Termination Revenue | 5.4 | $ 0.7 | |
Capitalized fulfillment costs | $ 12.4 | $ 11.4 |
REVENUE FROM CONTRACTS WITH C_4
REVENUE FROM CONTRACTS WITH CUSTOMERS - Remaining Performance Obligations (Details) $ in Billions | 3 Months Ended |
Dec. 31, 2023 USD ($) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Amount of remaining performance obligation | $ 1.3 |
Period of unsatisfied performance obligations represented in backlog contracts with month-to-month terms | 1 month |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Amount of remaining performance obligation | $ 0.7 |
Expected timing of satisfaction for remaining performance obligation | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Amount of remaining performance obligation | $ 0.4 |
Expected timing of satisfaction for remaining performance obligation | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Amount of remaining performance obligation | $ 0.2 |
Expected timing of satisfaction for remaining performance obligation | 12 months |
REVENUE FROM CONTRACTS WITH C_5
REVENUE FROM CONTRACTS WITH CUSTOMERS - Schedule of Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | ||
Contract assets, net | $ 7,006 | $ 6,560 |
Change in contract liabilities balance: | ||
Contract liabilities beginning balance | 28,882 | |
Payment received/accrued and deferred | 14,395 | |
Revenue recognized during the period | (17,542) | |
Contract liabilities ending balance | $ 25,735 |
STOCK-BASED COMPENSATION - Sche
STOCK-BASED COMPENSATION - Schedule of Compensation Cost for Stock-Based Payment Arrangements (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 7,672 | $ 8,273 |
Drilling services operating | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 1,397 | 1,385 |
Research and development | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 473 | 426 |
Selling, general and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 5,802 | $ 6,462 |
STOCK-BASED COMPENSATION - Sc_2
STOCK-BASED COMPENSATION - Schedule of the Status of Restricted Stock Awards and Changes in Restricted Stock Outstanding (Details) shares in Thousands | 3 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Restricted Stock | |
Shares | |
Outstanding beginning balance (in shares) | 1,362 |
Granted (in shares) | 746 |
Vested (in shares) | (734) |
Forfeited (in shares) | (1) |
Outstanding ending balance (in shares) | 1,373 |
Weighted-Average Grant Date Fair Value per Share | |
Outstanding beginning balance (in dollars per share) | $ / shares | $ 35.11 |
Granted (in dollars per share) | $ / shares | 35.24 |
Vested (in dollars per share) | $ / shares | 33.08 |
Forfeited (in dollars per share) | $ / shares | 44.65 |
Outstanding ending balance (in dollars per share) | $ / shares | $ 36.25 |
Vesting period | 1 year |
Phantom Share Units (PSUs) | |
Shares | |
Granted (in shares) | 0 |
Vested (in shares) | 0 |
STOCK-BASED COMPENSATION - Sc_3
STOCK-BASED COMPENSATION - Schedule of the Status of Performance Share Units (Details) - Performance Share Units | 3 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Performance Units | |
Outstanding beginning balance (in shares) | 796,000 |
Granted (in shares) | 223,000 |
Dividend equivalent rights performance units credited and performance factor adjustment (in shares) | (115,000) |
Outstanding ending balance (in shares) | 904,000 |
Weighted-Average Grant Date Fair Value per Unit | |
Outstanding beginning balance (in dollars per share) | $ / shares | $ 34.51 |
Granted (in dollars per share) | $ / shares | 39.86 |
Dividend equivalent rights performance units credited and performance factor adjustment (in dollars per share) | $ / shares | 35.11 |
Outstanding ending balance (in dollars per share) | $ / shares | $ 35.67 |
Shares where performance criteria has been achieved (in shares) | 401,904 |
Vested and expected to vest (in shares) | 503,371 |
Minimum | |
Weighted-Average Grant Date Fair Value per Unit | |
Percentage of units vested | 0% |
Maximum | |
Weighted-Average Grant Date Fair Value per Unit | |
Percentage of units vested | 200% |
STOCK-BASED COMPENSATION - Narr
STOCK-BASED COMPENSATION - Narrative (Details) | 3 Months Ended |
Dec. 31, 2023 tranche component | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Amount award can increase or decrease | 25 |
Performance Share Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
Number of components included in award units | component | 2 |
First Component of Performance Share Unit | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance cycle period of each tranche | 3 years |
Second Component of Performance Share Unit | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance cycle period of each tranche | 1 year |
Number of tranches in component | tranche | 3 |
Period over which awards expire | 3 years |
EARNINGS (LOSSES) PER COMMON _2
EARNINGS (LOSSES) PER COMMON SHARE - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Numerator: | ||
Net income | $ 95,173 | $ 97,145 |
Adjustment for basic earnings per share | ||
Earnings allocated to unvested shareholders | (1,248) | (992) |
Numerator for basic earnings per share | 93,925 | 96,153 |
Adjustment for diluted earnings per share | ||
Effect of reallocating undistributed earnings of unvested shareholders | 2 | 0 |
Numerator for diluted earnings per share | $ 93,927 | $ 96,153 |
Denominator: | ||
Denominator for basic earnings (loss) per share - weighted-average shares (in shares) | 99,143 | 105,248 |
Effect of dilutive shares from stock options, restricted stock and performance share units (in shares) | 485 | 856 |
Denominator for diluted earnings (loss) per share - adjusted weighted-average shares (in shares) | 99,628 | 106,104 |
Earnings per common share, basic (in dollars per share) | $ 0.95 | $ 0.92 |
Earnings per common share, diluted (in dollars per share) | $ 0.94 | $ 0.91 |
EARNINGS (LOSSES) PER COMMON _3
EARNINGS (LOSSES) PER COMMON SHARE - Anti-Dilutive Shares Excluded from the Calculation of Diluted Earnings Per Share (Details) - $ / shares shares in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Potentially dilutive shares excluded as anti-dilutive (in shares) | 2,601 | 2,274 |
Weighted-average price per share (in dollars per share) | $ 57.21 | $ 63.51 |
FAIR VALUE MEASUREMENT OF FIN_3
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS - Schedule of Assets Measured at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 |
Assets | ||
Short-term investments: | $ 84,121 | $ 93,600 |
Total | 237,643 | 239,145 |
Other equity securities | 2,721 | |
Recurring Fair Value Measurements | ||
Assets | ||
Non-qualified supplemental savings plan | 16,478 | 14,597 |
Investment in Galileo | 35,868 | 35,434 |
Geothermal debt securities | 2,000 | 2,006 |
Total | 234,922 | 236,715 |
Liabilities | ||
Contingent consideration | 8,350 | 9,455 |
Recurring Fair Value Measurements | ADNOC Drilling | ||
Assets | ||
Equity investment | 164,339 | 174,758 |
Recurring Fair Value Measurements | Tamboran Resources Limited | ||
Assets | ||
Equity investment | 16,237 | 9,920 |
Fair Value, Nonrecurring | ||
Assets | ||
Other equity securities | 2,430 | |
Liabilities | ||
Equity securities | 25,200 | 25,200 |
Fair Value, Nonrecurring | Geothermal Investments | ||
Assets | ||
Equity investment | 3,300 | 3,000 |
Other equity securities | 2,430 | |
Liabilities | ||
Equity securities | 600 | 600 |
Other equity securities | 2,700 | 2,400 |
Level 1 | ||
Assets | ||
Short-term investments: | 46,278 | 44,836 |
Total | 197,054 | 199,275 |
Other equity securities | 0 | |
Level 1 | Recurring Fair Value Measurements | ||
Assets | ||
Non-qualified supplemental savings plan | 16,478 | 14,597 |
Investment in Galileo | 0 | 0 |
Geothermal debt securities | 0 | 0 |
Total | 197,054 | 199,275 |
Liabilities | ||
Contingent consideration | 0 | 0 |
Level 1 | Recurring Fair Value Measurements | ADNOC Drilling | ||
Assets | ||
Equity investment | 164,339 | 174,758 |
Level 1 | Recurring Fair Value Measurements | Tamboran Resources Limited | ||
Assets | ||
Equity investment | 16,237 | 9,920 |
Level 1 | Fair Value, Nonrecurring | ||
Assets | ||
Other equity securities | 0 | |
Level 1 | Fair Value, Nonrecurring | Geothermal Investments | ||
Assets | ||
Other equity securities | 0 | |
Level 2 | ||
Assets | ||
Short-term investments: | 37,843 | 48,764 |
Total | 0 | 0 |
Other equity securities | 0 | |
Level 2 | Recurring Fair Value Measurements | ||
Assets | ||
Non-qualified supplemental savings plan | 0 | 0 |
Investment in Galileo | 0 | 0 |
Geothermal debt securities | 0 | 0 |
Total | 0 | 0 |
Liabilities | ||
Contingent consideration | 0 | 0 |
Level 2 | Recurring Fair Value Measurements | ADNOC Drilling | ||
Assets | ||
Equity investment | 0 | 0 |
Level 2 | Recurring Fair Value Measurements | Tamboran Resources Limited | ||
Assets | ||
Equity investment | 0 | 0 |
Level 2 | Fair Value, Nonrecurring | ||
Assets | ||
Other equity securities | 0 | |
Level 2 | Fair Value, Nonrecurring | Geothermal Investments | ||
Assets | ||
Other equity securities | 0 | |
Level 3 | ||
Assets | ||
Short-term investments: | 0 | 0 |
Total | 40,589 | 39,870 |
Other equity securities | 2,721 | |
Level 3 | Recurring Fair Value Measurements | ||
Assets | ||
Non-qualified supplemental savings plan | 0 | 0 |
Investment in Galileo | 35,868 | 35,434 |
Geothermal debt securities | 2,000 | 2,006 |
Total | 37,868 | 37,440 |
Liabilities | ||
Contingent consideration | 8,350 | 9,455 |
Level 3 | Recurring Fair Value Measurements | ADNOC Drilling | ||
Assets | ||
Equity investment | 0 | 0 |
Level 3 | Recurring Fair Value Measurements | Tamboran Resources Limited | ||
Assets | ||
Equity investment | 0 | 0 |
Level 3 | Fair Value, Nonrecurring | ||
Assets | ||
Other equity securities | 2,430 | |
Level 3 | Fair Value, Nonrecurring | Geothermal Investments | ||
Assets | ||
Other equity securities | 2,430 | |
Corporate and municipal debt securities | ||
Assets | ||
Short-term investments: | 37,843 | 48,764 |
Corporate and municipal debt securities | Level 1 | ||
Assets | ||
Short-term investments: | 0 | 0 |
Corporate and municipal debt securities | Level 2 | ||
Assets | ||
Short-term investments: | 37,843 | 48,764 |
Corporate and municipal debt securities | Level 3 | ||
Assets | ||
Short-term investments: | 0 | 0 |
U.S. government and federal agency securities | ||
Assets | ||
Short-term investments: | 46,278 | 44,836 |
U.S. government and federal agency securities | Level 1 | ||
Assets | ||
Short-term investments: | 46,278 | 44,836 |
U.S. government and federal agency securities | Level 2 | ||
Assets | ||
Short-term investments: | 0 | 0 |
U.S. government and federal agency securities | Level 3 | ||
Assets | ||
Short-term investments: | $ 0 | $ 0 |
FAIR VALUE MEASUREMENT OF FIN_4
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) $ in Thousands, shares in Millions | 1 Months Ended | 3 Months Ended | |||||
Oct. 31, 2022 | Apr. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Gain (loss) resulting from the change in the fair value of investments | $ (10,400) | $ (18,200) | |||||
Unrealized gain (loss) on investments | 6,300 | 3,100 | |||||
Level 3 | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Equity securities | 28,523 | 25,800 | $ 28,232 | $ 23,745 | |||
Convertible Debt | Galileo Technologies | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Interest rate (as a percent) | 5% | ||||||
ADNOC Drilling | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Payments to acquire investments | $ 100,000 | ||||||
Investment balance (in shares) | 159.7 | ||||||
Investments lockup period (in years) | 3 years | ||||||
ADNOC Drilling | ADNOC Drilling | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Ownership percentage (as a percent) | 1% | ||||||
Tamboran Resources Limited | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Payments to acquire investments | $ 14,100 | ||||||
Investment shares acquired (in shares) | 106 | ||||||
Tamboran Resources Limited | Tamboran Resources Limited | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Ownership percentage (as a percent) | 5.10% | ||||||
Galileo Technologies | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Payments to acquire investments | $ 33,000 | ||||||
Galileo Technologies | Level 3 | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Equity securities | $ 37,868 | $ 33,107 | $ 37,440 | $ 33,565 |
FAIR VALUE MEASUREMENT OF FIN_5
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS - Level 3 Unobservable Inputs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Sep. 30, 2023 | |
Recurring Fair Value Measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 35,868 | $ 35,434 |
Level 3 | Galileo Technologies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount rate | 19.20% | |
Risk-free rate | 4.30% | |
Equity volatility | 92% | |
Level 3 | Recurring Fair Value Measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 35,868 | $ 35,434 |
FAIR VALUE MEASUREMENT OF FIN_6
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS - Reconciliation of Changes in Fair Value of Financial Assets and Liabilities Classified as Level 3 (Details) - Level 3 - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Reconciliation of changes in the fair value of our financial assets | ||
Assets at beginning of period | $ 28,232 | $ 23,745 |
Purchases | 291 | 2,055 |
Assets at end of period | 28,523 | 25,800 |
Reconciliation of changes in the fair value of our financial liabilities | ||
Liabilities at beginning of period | 9,455 | 4,022 |
Additions | 0 | 500 |
Total gains or losses included in earnings | 20 | 8 |
Settlements | (1,125) | (750) |
Liabilities at end of period | 8,350 | 3,780 |
Galileo Technologies | ||
Reconciliation of changes in the fair value of our financial assets | ||
Assets at beginning of period | 37,440 | 33,565 |
Purchases | 0 | 42 |
Accrued interest | 433 | 0 |
Transfers out | 0 | (500) |
Assets at end of period | 37,868 | 33,107 |
Reconciliation of changes in the fair value of our financial liabilities | ||
Reserves | $ (5) | $ 0 |
FAIR VALUE MEASUREMENT OF FIN_7
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS - Supplemental Fair Value Information about Long-Term Fixed-Rate Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term debt, net, carrying value | $ 545,292 | $ 545,144 | ||
Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equity securities | 28,523 | $ 25,800 | 28,232 | $ 23,745 |
Purchases | 291 | $ 2,055 | ||
Carrying value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term debt, net, carrying value | 545,300 | 545,100 | ||
Fair value | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term debt, net, fair value | $ 471,600 | $ 435,500 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 USD ($) extension rig | Sep. 30, 2023 USD ($) | |
Other Commitments [Line Items] | ||
Leases renewed | extension | 1 | |
Operating lease right-of-use assets | $ 62,254 | $ 50,400 |
Purchase commitments for equipment, parts and supplies | $ 121,700 | |
Tulsa Industrial Facility | ||
Other Commitments [Line Items] | ||
Number of renewal options | rig | 2 | |
Renewal option term | 5 years | |
Land and Building | ||
Other Commitments [Line Items] | ||
Operating lease, liability | $ 18,100 | |
Operating lease right-of-use assets | $ 18,100 |
BUSINESS SEGMENTS AND GEOGRAP_3
BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION - Summary of Financial Information of Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 677,147 | $ 719,637 |
Segment operating income | 123,468 | 144,223 |
Intersegment | ||
Segment Reporting Information [Line Items] | ||
Revenues | (15,226) | (16,402) |
Segment operating income | 334 | 2,310 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenues | 677,147 | 719,637 |
Segment operating income | 153,232 | 160,604 |
North America Solutions | ||
Segment Reporting Information [Line Items] | ||
Revenues | 594,282 | 627,163 |
North America Solutions | Intersegment | ||
Segment Reporting Information [Line Items] | ||
Revenues | 0 | 0 |
North America Solutions | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenues | 594,282 | 627,163 |
Segment operating income | 144,490 | 145,297 |
Offshore Gulf of Mexico | ||
Segment Reporting Information [Line Items] | ||
Revenues | 25,531 | 35,164 |
Offshore Gulf of Mexico | Intersegment | ||
Segment Reporting Information [Line Items] | ||
Revenues | 0 | 0 |
Offshore Gulf of Mexico | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenues | 25,531 | 35,164 |
Segment operating income | 3,052 | 6,746 |
International Solutions | ||
Segment Reporting Information [Line Items] | ||
Revenues | 54,752 | 54,801 |
International Solutions | Intersegment | ||
Segment Reporting Information [Line Items] | ||
Revenues | 0 | 0 |
International Solutions | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenues | 54,752 | 54,801 |
Segment operating income | 5,423 | 1,574 |
Other | ||
Segment Reporting Information [Line Items] | ||
Revenues | 2,582 | 2,509 |
Other | Intersegment | ||
Segment Reporting Information [Line Items] | ||
Revenues | (15,226) | (16,402) |
Other | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenues | 17,808 | 18,911 |
Segment operating income | $ (67) | $ 4,677 |
BUSINESS SEGMENTS AND GEOGRAP_4
BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION - Reconciliation of Segment Operating Income (Loss) to Income from Continuing Operations before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Segment Reporting Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Abstract] | ||
Operating income | $ 123,468 | $ 144,223 |
Gain on reimbursement of drilling equipment | 7,494 | 15,724 |
Other gain on sale of assets | 2,443 | 2,379 |
Corporate selling, general and administrative costs and corporate depreciation | 56,577 | 48,455 |
Other income (expense) | ||
Interest and dividend income | 10,734 | 4,705 |
Interest expense | (4,372) | (4,355) |
Loss on investment securities | (4,034) | (15,091) |
Other | (543) | 58 |
Total unallocated amounts | 1,785 | (14,683) |
Income before income taxes | 125,253 | 129,540 |
Operating Segments | ||
Segment Reporting Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Abstract] | ||
Operating income | 153,232 | 160,604 |
Segment Reconciling Items | ||
Segment Reporting Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Abstract] | ||
Gain on reimbursement of drilling equipment | 7,494 | 15,724 |
Other gain on sale of assets | 2,443 | 2,379 |
Corporate, Non-Segment | ||
Segment Reporting Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Abstract] | ||
Corporate selling, general and administrative costs and corporate depreciation | $ (39,701) | $ (34,484) |
BUSINESS SEGMENTS AND GEOGRAP_5
BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION - Reconciliation of Segment Assets to Consolidated Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 |
Segment Reporting Information [Line Items] | ||
Assets | $ 4,421,328 | $ 4,381,956 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Assets | 4,012,221 | 3,954,955 |
Corporate, Non-Segment | ||
Segment Reporting Information [Line Items] | ||
Assets | 409,107 | 427,001 |
North America Solutions | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Assets | 3,347,139 | 3,320,203 |
Offshore Gulf of Mexico | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Assets | 76,294 | 73,319 |
International Solutions | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Assets | 440,094 | 407,143 |
Other | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 148,694 | $ 154,290 |
BUSINESS SEGMENTS AND GEOGRAP_6
BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION - Revenues from External Customers and Long-Lived Assets by Country (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Operating revenues | $ 677,147 | $ 719,637 |
United States | ||
Segment Reporting Information [Line Items] | ||
Operating revenues | 621,617 | 664,173 |
Argentina | ||
Segment Reporting Information [Line Items] | ||
Operating revenues | 35,876 | 33,834 |
Colombia | ||
Segment Reporting Information [Line Items] | ||
Operating revenues | 7,703 | 16,369 |
Bahrain | ||
Segment Reporting Information [Line Items] | ||
Operating revenues | 4,497 | 2,269 |
United Arab Emirates | ||
Segment Reporting Information [Line Items] | ||
Operating revenues | 2,365 | 2,337 |
Australia | ||
Segment Reporting Information [Line Items] | ||
Operating revenues | 4,312 | 0 |
Other foreign | ||
Segment Reporting Information [Line Items] | ||
Operating revenues | $ 777 | $ 655 |