The past two- and five-year periods haven't been kind to the land drilling industry, but Helmerich & Payne (NYSE:HP) has fared quite a bit better than most. While rivals like Nabors (NYSE:NBR), Patterson-UTI (Nasdaq:PTEN), Precision Drilling (NYSE:PDS), and Pioneer Energy (NYSE:PES)
have seen their shares decline from between 30% and 70% over the last
two to five years, Helmerich & Payne is close to breakeven.
HP owes its success to a program of focused differentiation – namely,
building high-spec rigs that not enable operators to drill the
horizontal wells that are increasingly necessary to exploit oil and gas
reservoirs, but to do so faster and with fewer drilling days. A
significant recent increase in the dividend has demonstrated
management's willingness to share success with shareholders, but the
quality of this company is never far from the minds of Wall Street.
Consequently, the shares don't look like a tremendous bargain today.
Please read the full article here:
http://www.investopedia.com/stock-analysis/071013/bestofbreed-status-keeping-helmerich-payne-near-fair-value-hp-nbr-pten-pds-pes.aspx
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