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TULSA, Okla.--(BUSINESS WIRE)--Helmerich & Payne, Inc. (NYSE: HP) will host a conference call to discuss its fiscal third quarter 2026 results. President and CEO Trey Adams and Senior Vice President and CFO Todd Scruggs will lead the call. The earnings release and accompanying presentation will be available at hpinc.com. Investors can join the call via phone or audio webcast.   What: Helmerich & Payne, Inc.'s Fiscal Third Quarter 2026 Earnings Release. Other material developments may al.

PALO ALTO, Calif., June 16, 2026 (GLOBE NEWSWIRE) -- HP Inc. (NYSE: HPQ) has declared a cash dividend of $0.3000 per share on the company’s common stock.

The dividend, the fourth in HP’s fiscal year 2026, is payable on October 7, 2026, to stockholders of record as of the close of business on September 9, 2026.

About HP Inc.

HP Inc. (NYSE: HPQ) is a global technology leader redefining the Future of Work. Operating in more than 180 countries, HP delivers innovative and AI-powered devices, software, services and subscriptions that drive business growth and professional fulfillment. For more information, please visit: http://www.hp.com.

TULSA, Okla.--(BUSINESS WIRE)--Helmerich & Payne, Inc. (NYSE: HP) will host a conference call on Thursday, May 7, 2026, at 11 a.m. ET to discuss its fiscal second quarter 2026 results. President and CEO Trey Adams and Senior Vice President and CFO Kevin Vann will lead the call. The earnings release and accompanying presentation will be available at hpinc.com. Investors can join the call via phone or audio webcast.   What: Helmerich & Payne, Inc.'s Fiscal Second Quarter 2026 Earnings Rel.

The market expects Helmerich & Payne (HP - Free Report) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on May 6, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis oil and gas well-drilling contractor is expected to post quarterly loss of $0.09 per share in its upcoming report, which represents a year-over-year change of -550%.

Revenues are expected to be $946.15 million, down 6.9% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.01% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Helmerich & Payne?For Helmerich & Payne, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +13.33%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination indicates that Helmerich & Payne will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Helmerich & Payne would post earnings of $0.12 per share when it actually produced a loss of -$0.15, delivering a surprise of -225.00%.

Over the last four quarters, the company has beaten consensus EPS estimates just once.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Helmerich & Payne appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Expected Results of an Industry PlayerValaris Limited (VAL - Free Report) , another stock in the Zacks Oil and Gas - Drilling industry, is expected to report loss per share of $0.05 for the quarter ended March 2026. This estimate points to a year-over-year change of +90.6%. Revenues for the quarter are expected to be $437.85 million, down 29.5% from the year-ago quarter.

The consensus EPS estimate for Valaris has been revised 10.9% lower over the last 30 days to the current level. However, an equal Most Accurate Estimate has resulted in an Earnings ESP of 0.00%.

This Earnings ESP, combined with its Zacks Rank #2 (Buy), makes it difficult to conclusively predict that Valaris will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Helmerich & Payne (HP - Free Report) came out with a quarterly loss of $0.38 per share versus the Zacks Consensus Estimate of a loss of $0.06. This compares to earnings of $0.02 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -570.19%. A quarter ago, it was expected that this oil and gas well-drilling contractor would post earnings of $0.12 per share when it actually produced a loss of $0.15, delivering a surprise of -225%.

Over the last four quarters, the company has surpassed consensus EPS estimates just once.

Helmerich & Payne, which belongs to the Zacks Oil and Gas - Drilling industry, posted revenues of $932.36 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 1.46%. This compares to year-ago revenues of $1.02 billion. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Helmerich & Payne shares have added about 44.8% since the beginning of the year versus the S&P 500's gain of 6%.

What's Next for Helmerich & Payne?While Helmerich & Payne has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Helmerich & Payne was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.12 on $974 million in revenues for the coming quarter and $0.11 on $3.92 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Drilling is currently in the top 19% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Seadrill (SDRL - Free Report) , is yet to report results for the quarter ended March 2026. The results are expected to be released on May 11.

This offshore drilling services provider is expected to post quarterly loss of $0.10 per share in its upcoming report, which represents a year-over-year change of +56.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Seadrill's revenues are expected to be $332 million, down 0.9% from the year-ago quarter.

Helmerich and Payne Inc (NYSE:HP) reported worse-than-expected second-quarter financial results, after the closing bell on Wednesday.

Helmerich & Payne reported quarterly losses of 38 cents per share which missed the analyst consensus estimate of losses of 2 cents per share. The company reported quarterly sales of $932.000 million which missed the analyst consensus estimate of $949.644 million.

Helmerich & Payne shares rose 1.2% to trade at $37.34 on Friday.

These analysts made changes to their price targets on Helmerich & Payne following earnings announcement.

Susquehanna analyst Charles Minervino maintained Helmerich & Payne with a Positive and raised the price target from $42 to $43. Barclays analyst Eddie Kim maintained the stock with an Overweight rating and raised the price target from $39 to $47. Considering buying HP stock? Here’s what analysts think:

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Key Takeaways HP posted a Q2 adjusted loss of 38 cents per share as revenues fell 8.2% year over year.HP's International Solutions unit logged a near $100M operating loss tied to Middle East costs.HP secured a five-year bp offshore Azerbaijan renewal with potential revenues above $1B. Helmerich & Payne, Inc. (HP - Free Report) reported a second-quarter fiscal 2026 adjusted net loss of 38 cents per share, wider than the Zacks Consensus Estimate of an adjusted net loss of 6 cents. Moreover, the bottom line decreased considerably from the year-ago quarter’s reported profit of 2 cents. This was due to a weaker rig activity in North America and international markets, and significantly higher operating costs related to its Middle East operations.

The International Solutions segment posted an operating loss of nearly $100 million as the company incurred additional expenses to reactivate rigs in Saudi Arabia and work around supply-chain disruptions caused by the Middle East conflict. Moreover, the quarter included a $26 million non-cash impairment charge, which further pressured profitability.

Revenues totaled $932 million, missing the consensus mark of $946 million by 1.46%. The top line also declined 8.2% year over year from the prior-year quarter’s level of $1 billion, primarily due to lower revenue contributions from drilling services.

The company returned approximately $25 million to shareholders through its ongoing dividend program during the quarter. Management also noted continued progress in expanding the deployment of FlexRobotics technology to support customer demand.

Q2 Segmental PerformanceNorth America Solutions: Operating revenues of $517.2 million decreased 13.7% year over year.  Moreover, the top line missed our projection of $519.1 million.

The segment averaged 136 active rigs in the quarter and delivered a direct margin of $215.2 million, or $17,628 on a per-day basis, maintaining industry-leading performance.

Segment operating income was $111.3 million, improving sequentially from the prior quarter that included a one-time impairment, but down from $151.9 million in the year-ago period.  However, the reported figure beat our estimate of $93.9 million.

HP highlighted strengthening customer sentiment and meaningful commercial momentum across the U.S. land market, supported by new contracts and extensions across multiple basins.

International Solutions: Operating revenues were $218.3 million, down 11.9% from $247.9 million a year ago. Moreover, the top line missed our projection of $231 million.

The segment recorded an operating loss of approximately $100 million and generated about $11.5 million of direct margin, down from the prior quarter’s level. The operating loss was wider than our projected loss of $85.1 million.

HP attributed the weaker profitability primarily to the impacts of the conflict in the Middle East. During the quarter, the company utilized in-house engineering and aftermarket capabilities to reactivate rigs in Saudi Arabia using in-country equipment and working around supply-chain constraints. While this enhanced returns and avoided customer delays, it also resulted in more costs being classified as operating expenses, pressuring direct margins.

Offshore Solutions: Revenues rose 15% year over year to $171.4 million. However, the top line beat our projection of $152.9 million.

The segment reported operating income of about $14 million and delivered a direct margin of roughly $27 million, down from the prior quarter’s level by 19.3%. Moreover, the figure beat our estimate of $11.4 million.

HP emphasized the strategic value of the offshore portfolio given its long-term contract structure and relative earnings stability. During the quarter, the company secured a five-year renewal with bp in the Caspian Sea, offshore Azerbaijan, with three one-year extension options. If all option periods are exercised, contract revenues could exceed $1 billion.

Financial PositionAs of March 31, 2026, HP had $177.2 million in cash and cash equivalents. Long-term debt totaled $1.9 billion (debt-to-capitalization of 41.4%).

Following the quarter, HP completed the sale of Utica Square in early April, with after-tax proceeds exceeding its previously communicated $100 million divestiture target. The transaction enabled the retirement of the term loan facility ahead of schedule, reducing post-acquisition debt by $400 million and accelerating deleveraging plans.

Q3 & 2026 GuidanceThe company expects steady operational performance in the third quarter of fiscal 2026. Within North America Solutions, direct margins are projected at $230-$240 million, supported by average rig activity of 137-143. International Solutions is expected to operate 58-68 rigs, generating direct margins of $12-$32 million. In Offshore Solutions, management forecasts 30-35 rigs, contributing $24-$28 million in direct margin. Other operations are expected to deliver up to $3 million in direct margin during the quarter.

For fiscal 2026, this Zacks Rank #3 (Hold) company anticipates average rig activity of 138-144 in North America and 58-68 internationally, while offshore operations are expected to contribute $100-$115 million in direct margin with 30-35 rigs under management. Broader financial guidance includes gross capital expenditures of $270-$310 million, depreciation of approximately $700 million, research and development expenses of about $28 million and selling, general and administrative costs of $265-$285 million. Additionally, cash taxes are projected at $125-$150 million, while interest expense is forecasted at roughly $100 million.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Important Earnings at a GlanceWhile we have discussed HP’s second-quarter results in detail, let us take a look at three other key reports in this space.

Houston, TX-based oil and gas equipment and services provider, Halliburton Company (HAL - Free Report) , posted first-quarter 2026 adjusted net income per share of 55 cents, beating the Zacks Consensus Estimate of 49 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line fell from the year-ago adjusted profit of 60 cents.

Halliburton reported first-quarter capital expenditure of $192 million. As of March 31, 2026, this oil and gas equipment and services company had approximately $2 billion in cash/cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization ratio of 39.6.

Houston, TX-based oil and gas storage and transportation company,Kinder Morgan Inc. (KMI - Free Report) , posted first-quarter 2026 adjusted earnings per share of 48 cents, which beat the Zacks Consensus Estimate of 38 cents. The bottom line increased year over year from 34 cents. The strong quarterly results can be primarily attributed to contributions from the Natural Gas Pipelines business segment.

As of March 31, 2026, KMI reported $72 million in cash and cash equivalents. At the quarter's end, its long-term debt amounted to $29.72 billion. KMI’s project backlog was reported at $10.1 billion by the end of the first quarter. The midstream energy major added that natural gas projects comprise approximately 92% of its project backlog, with nearly 60% dedicated to supporting local distribution companies and power generation.

Fort Worth, TX-based oil and gas exploration and production company, Range Resources Corporation (RRC - Free Report) , posted first-quarter 2026 adjusted earnings of $1.52 per share, which beat the Zacks Consensus Estimate of $1.33. The bottom line also improved from the prior-year level of 96 cents. Strong quarterly results can be attributed to higher gas-equivalent production and increased natural gas price realization.

Drilling and completion expenditure totaled $130 million. An additional $5 million was spent on acreage and $4 million on infrastructure and other investments. At the end of the first quarter, Range Resources reported a total debt of $819.3 million, net of deferred financing costs.

On May 21, 2026, Helmerich & Payne Inc HP shares fell 3.1% today, closing at $39.61. Over the past 52 weeks, the stock has traded as high as $41.82 and as low as $14.65, reflecting significant volatility. The recent price drop contrasts with a year-to-date increase of 40.1% and an impressive 170.2% gain over the past year.

GF Value™ verdict: Current price of $39.61 is 17.3% below GF Value™ of $47.90.GF Score™: 72/100, indicating above-average performance potential.Most notable signal: Insiders sold $3.3M in stock over the last three months, with no buying activity reported. Is HP Overvalued or Undervalued? Currently, Helmerich & Payne Inc is trading at $39.61, which is 17.3% below its GF Value™ of $47.90. This suggests that the stock may be undervalued, providing a potential margin of safety for investors. The GF Valuation label categorizes HP as "Modestly Undervalued," indicating a favorable investment opportunity, albeit with caveats. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.

While the undervaluation suggests an opportunity, it is essential to consider the broader market conditions and potential risks associated with the oil and gas industry. Factors such as fluctuating oil prices, regulatory changes, and geopolitical risks can significantly impact HP's performance. Investors should weigh these considerations against the current price to make informed decisions.

How Does HP's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 155.9x 10.3x Helmerich & Payne's current P/E ratio of 155.9x is significantly above its 5-year median P/E of 10.3x. This stark contrast indicates that the stock is trading well above its historical valuation levels. This analysis aligns with the GF Value™ verdict, suggesting that while the stock may be undervalued based on intrinsic value, it is trading at a high multiple compared to its historical earnings, warranting caution.

What Does HP's GF Score™ Tell Us? Metric Rating GF Score™ 72 Financial Strength 4/10 Profitability 5/10 Growth 7/10 Valuation 10/10 Momentum 3/10 The GF Score™ of 72/100 indicates that Helmerich & Payne has above-average potential for long-term returns. The strongest area is the Valuation rank at 10/10, highlighting that the stock may be attractively priced relative to its intrinsic value. Conversely, the weakest area is Momentum at 3/10, suggesting that recent price performance has not been strong. Financial Strength and Profitability scores of 4/10 and 5/10, respectively, indicate that while there is room for improvement, the company's fundamentals are not exceptionally robust at this time.

What Are Insiders Doing with HP Stock? In recent months, insider activity has shown a trend of selling, with insiders offloading $3.3 million worth of shares without any reported buying. This pattern can be interpreted as a lack of confidence from insiders regarding the company's short-term prospects. While insider selling does not necessarily indicate negative performance, it is a noteworthy signal that potential investors may want to consider when evaluating the stock.

What This Means for Investors Based on the GF Value™ assessment, Helmerich & Payne Inc appears to be undervalued at its current price of $39.61. However, potential investors should exercise caution due to the high P/E ratio compared to historical levels and the recent insider selling activity.

For the complete analysis, visit the Helmerich & Payne Inc HP stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is HP's GF Score™?

HP has a GF Score™ of 72/100, indicating above-average performance potential based on key financial metrics.

Is HP overvalued or undervalued?

HP is considered undervalued according to GF Value™, trading at 17.3% below its intrinsic value.

What is HP's P/E ratio?

HP's current P/E ratio is 155.9x, significantly higher than its historical 5-year median of 10.3x, suggesting it is trading at a premium relative to its past earnings.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

The Zacks Oil and Gas - Drilling industry appears to be entering a more constructive phase. While producers are still cautious with capital spending, the broader demand picture is improving. Tight oil supply, geopolitical uncertainty and rising energy-security needs could support future drilling plans. Natural gas adds another layer of opportunity, as LNG exports, new power demand and AI-related electricity use point to steady long-term growth. The industry is also benefiting from a shift toward better equipment. Longer laterals, deeper wells and complex drilling programs require advanced rigs, automation and digital tools. That gives well-equipped contractors a stronger pricing opportunity when customer activity picks up. The group’s solid Zacks Industry Rank and sharp outperformance over the past year add to the positive case. The recovery may be gradual, but the outlook is clearly brighter. In this improving setup, Patterson-UTI Energy (PTEN - Free Report) , Helmerich & Payne (HP - Free Report) and Nabors Industries (NBR - Free Report) stand out as attractive drilling names to watch.

Industry Overview The Zacks Oil and Gas - Drilling industry consists of companies that provide rigs (or specialized vehicles) on a contractual basis to explore and develop oil and gas. These operators offer drilling rigs (both land-based/onshore and offshore), equipment, services and workforce to exploration and production companies worldwide. Drilling for hydrocarbons is costly and technically difficult, and its future primarily depends on contracting activity and the total number of available rigs at a given time rather than the price of oil or gas. Within the industry, it's interesting to note that the volatility associated with offshore drilling companies is much higher than that of their onshore counterparts, and their share prices are more correlated to the price of oil. Overall, oil and gas drilling stocks are among the most volatile in the entire equity market.

4 Trends Defining the Oil and Gas - Drilling Industry's Future Oil Supply Tightness Can Lift Drilling Demand:Oil and gas drilling activity could improve if global supply stays tight. Recent Middle East disruptions have made energy security a bigger concern and could keep oil markets supported. When producers worry about future supply, they often need more wells to maintain or grow output. U.S. shale may benefit because it can respond faster than many global projects. That said, activity may not jump overnight. Customers usually wait for clearer price signals before changing budgets, but the setup is becoming more supportive for drilling demand.

Natural Gas Has a Stronger Long-Term Growth Story:Natural gas is becoming a key demand driver for drillers. LNG exports, new export facilities and rising electricity needs from data centers and AI are all adding to the long-term call on gas. Investors should know that gas wells still need rigs, crews and related drilling services. International gas development, especially in regions like the Middle East and Latin America, also supports activity. In simple terms, if the world needs more gas for power and exports, the drilling industry gets another growth path beyond oil.

Better Rigs and Automation Can Support Higher Pricing:The industry is no longer just about adding more rigs. Operators are drilling deeper wells and longer laterals, which require stronger, more advanced equipment. That favors high-spec rigs, automation and digital tools that can improve safety, speed and well performance. Since the supply of top-tier rigs is limited, drilling contractors may have more room to push pricing higher when demand improves. This is important for investors because better pricing, tied to better technology, can help margins recover even without a huge jump in overall rig counts.

Customer Caution Can Delay the Recovery:The biggest near-term risk is that producers remain careful with spending. Even with higher oil prices, many operators are not rushing to add rigs because price volatility makes planning harder. Public exploration and production companies are especially focused on capital discipline, returns and sticking to budgets. At the same time, the Middle East conflict has added logistics, crew rotation and supply-chain costs for the industry. So, while the backdrop is improving, the recovery may be gradual rather than sharp. For drillers, that means timing remains uncertain.

Zacks Industry Rank Indicates Positive Outlook The Zacks Oil and Gas - Drilling industry is a nine-stock group within the broader Zacks Oil - Energy sector. It currently carries a Zacks Industry Rank #70, which places it in the top 29% of 245 Zacks industries.

The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates fairly strong near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.

Considering the encouraging dynamics of the industry, we will present a few stocks that you may want to consider for your portfolio. But it’s worth taking a look at the industry’s shareholder returns and current valuation first.

Industry Outperforms Sector & S&P 500 The Zacks Oil and Gas - Drilling industry has fared better than the broader Zacks Oil – Energy sector as well as the Zacks S&P 500 composite over the past year.

The industry has gone up 117.8% over this period compared with the broader sector’s increase of 42% and the S&P 500’s gain of 30.3%.

One-Year Price Performance

Industry's Current Valuation Since oil and gas drilling companies are debt-laden, it makes sense to value them based on the EV/EBITDA (Enterprise Value/ Earnings before Interest, Tax, Depreciation and Amortization) ratio. This is because the valuation metric takes into account not only equity but also the level of debt. For capital-intensive companies, EV/EBITDA is a better valuation metric because it is not influenced by changing capital structures and ignores the effect of non-cash expenses.

On the basis of the trailing 12-month enterprise value-to-EBITDA (EV/EBITDA), the industry is currently trading at 14.35X, lower than the S&P 500’s 18.65X. It is, however, above the sector’s trailing 12-month EV/EBITDA of 7.03X.

Over the past five years, the industry has traded as high as 24.81X, as low as 4.16X, with a median of 13.75X, as the chart below shows.

Trailing 12-Month Enterprise Value-to-EBITDA (EV/EBITDA) Ratio (Past Five Years)

3 Oil and Gas - Drilling Stocks to Watch Patterson-UTI Energy: Patterson-UTI is an integrated oilfield services company focused on drilling, completion and drilling products markets. Its platform combines contract drilling, hydraulic fracturing, wireline, cementing, natural gas fueling, directional services and drill bits, supported by digital tools that help improve wellsite efficiency. The Zacks Rank #2 (Buy) company operates 137 Tier-1 super-spec rigs and 2.7 million hydraulic horsepower of completion capacity.

You can see the complete list of today’s Zacks #1 Rank stocks here.

With cash flow spread across drilling services, completion services and drilling products, Patterson-UTI positions itself as a balanced leader in U.S. shale. It is investing in upgraded rigs, natural gas-powered fleets and data-driven operations while maintaining a strong balance sheet and an investment-grade credit profile. The company also emphasizes shareholder returns and long-term sustainability.

Patterson-UTI has a market capitalization of $4.7 billion. Over the past 60 days, the Zacks Consensus Estimate for the firm’s 2026 earnings has moved up 40.6%. PTEN stock has surged 116% in a year.

Price and Consensus: PTEN

Nabors Industries: It is a global provider of advanced drilling technology and services, operating in more than 20 countries. Nabors combines drilling operations, rig equipment and digital solutions to improve performance, safety and efficiency. Its vertically integrated model allows it to design automated rig technologies and deliver specialized services directly through its fleet. Nabors is a leading provider of high-specification rigs in the United States and deploys fit-for-purpose rigs across key international markets.

The Zacks #2 Ranked company is also focused on innovation, sustainability and reducing debt. Nabors’ recent moves include acquiring Parker Wellbore, divesting Quail Tools and refinancing debt to extend maturities. These steps strengthen its balance sheet while supporting long-term growth and energy transition goals.

Nabors has a market capitalization of $1.6 billion. The Zacks Consensus Estimate for 2026 earnings for the firm indicates 71.2% growth. NBR stock has gained 304% in a year.

Price and Consensus: NBR

Helmerich & Payne: Helmerich & Payne is a global drilling solutions company focused on onshore, offshore and international markets. It operates more than 200 land rigs, with a broad geographic reach and portfolio flexibility to serve rising drilling activity. The Zacks Rank #3 (Hold) company is also a technology leader, running advanced onshore rigs and expanding customer-led FlexRobotics deployments.

In fiscal second-quarter 2026, HP delivered resilient results in a changing energy market, supported by North America performance, offshore execution and steady international operations. It is also sharpening its portfolio, reducing debt and keeping capital spending disciplined. With $1.1 billion in liquidity and a long dividend record, Helmerich & Payne remains focused on long-term shareholder value.

The firm has a market capitalization of $4 billion. The Zacks Consensus Estimate for fiscal 2026 revenues for Helmerich & Payne indicates 5.1% growth. HP stock has surged 164.8% in a year.

Price and Consensus: HP

A month has gone by since the last earnings report for Helmerich & Payne (HP - Free Report) . Shares have added about 7.3% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Helmerich & Payne due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Helmerich & Payne, Inc. before we dive into how investors and analysts have reacted as of late.

Helmerich & Payne Q2 Earnings & Revenues Miss EstimatesHelmerich & Payne reported a second-quarter fiscal 2026 adjusted net loss of 38 cents per share, wider than the Zacks Consensus Estimate of an adjusted net loss of 6 cents. Moreover, the bottom line decreased considerably from the year-ago quarter’s reported profit of 2 cents. This was due to a weaker rig activity in North America and international markets, and significantly higher operating costs related to its Middle East operations.

The International Solutions segment posted an operating loss of nearly $100 million as the company incurred additional expenses to reactivate rigs in Saudi Arabia and work around supply-chain disruptions caused by the Middle East conflict. Moreover, the quarter included a $26 million non-cash impairment charge, which further pressured profitability.

Revenues totaled $932 million, missing the consensus mark of $946 million by 1.46%. The top line also declined 8.2% year over year from the prior-year quarter’s level of $1 billion, primarily due to lower revenue contributions from drilling services.

The company returned approximately $25 million to shareholders through its ongoing dividend program during the quarter. Management also noted continued progress in expanding the deployment of FlexRobotics technology to support customer demand.

Q2 Segmental PerformanceNorth America Solutions: Operating revenues of $517.2 million decreased 13.7% year over year.  Moreover, the top line missed our projection of $519.1 million.

The segment averaged 136 active rigs in the quarter and delivered a direct margin of $215.2 million, or $17,628 on a per-day basis, maintaining industry-leading performance.

Segment operating income was $111.3 million, improving sequentially from the prior quarter that included a one-time impairment, but down from $151.9 million in the year-ago period.  However, the reported figure beat our estimate of $93.9 million.

HP highlighted strengthening customer sentiment and meaningful commercial momentum across the U.S. land market, supported by new contracts and extensions across multiple basins.

International Solutions: Operating revenues were $218.3 million, down 11.9% from $247.9 million a year ago. Moreover, the top line missed our projection of $231 million.

The segment recorded an operating loss of approximately $100 million and generated about $11.5 million of direct margin, down from the prior quarter’s level. The operating loss was wider than our projected loss of $85.1 million.

HP attributed the weaker profitability primarily to the impacts of the conflict in the Middle East. During the quarter, the company utilized in-house engineering and aftermarket capabilities to reactivate rigs in Saudi Arabia using in-country equipment and working around supply-chain constraints. While this enhanced returns and avoided customer delays, it also resulted in more costs being classified as operating expenses, pressuring direct margins.

Offshore Solutions: Revenues rose 15% year over year to $171.4 million. However, the top line beat our projection of $152.9 million.

The segment reported operating income of about $14 million and delivered a direct margin of roughly $27 million, down from the prior quarter’s level by 19.3%. Moreover, the figure beat our estimate of $11.4 million.

HP emphasized the strategic value of the offshore portfolio given its long-term contract structure and relative earnings stability. During the quarter, the company secured a five-year renewal with bp in the Caspian Sea, offshore Azerbaijan, with three one-year extension options. If all option periods are exercised, contract revenues could exceed $1 billion.

Financial PositionAs of March 31, 2026, HP had $177.2 million in cash and cash equivalents. Long-term debt totaled $1.9 billion (debt-to-capitalization of 41.4%).

Following the quarter, HP completed the sale of Utica Square in early April, with after-tax proceeds exceeding its previously communicated $100 million divestiture target. The transaction enabled the retirement of the term loan facility ahead of schedule, reducing post-acquisition debt by $400 million and accelerating deleveraging plans.

How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended upward during the past month.

The consensus estimate has shifted 45.12% due to these changes.

VGM ScoresAt this time, Helmerich & Payne has a subpar Growth Score of D, a score with the same score on the momentum front. However, the stock was allocated a score of B on the value side, putting it in the top 40% for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Helmerich & Payne has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry PlayerHelmerich & Payne belongs to the Zacks Oil and Gas - Drilling industry. Another stock from the same industry, Patterson-UTI (PTEN - Free Report) , has gained 7.5% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.

Patterson-UTI reported revenues of $1.12 billion in the last reported quarter, representing a year-over-year change of -12.7%. EPS of -$0.06 for the same period compares with $0.00 a year ago.

For the current quarter, Patterson-UTI is expected to post a loss of $0.05 per share, indicating a change of +16.7% from the year-ago quarter. The Zacks Consensus Estimate has changed +20% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Patterson-UTI. Also, the stock has a VGM Score of B.