Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Sep. 30, 2023 | Nov. 01, 2023 | Mar. 31, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Current Fiscal Year End Date | --09-30 | ||
Document Period End Date | Sep. 30, 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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3.7 | ||
Entity Common Stock, Shares Outstanding | 99,426,880 | ||
Documents Incorporated by Reference | Portions of the Registrant’s 2024 Proxy Statement for the Annual Meeting of Stockholders to be held in calendar year 2024 are incorporated by reference into Part III of this Form 10‑K. The 2024 Proxy Statement will be filed with the U.S. Securities and Exchange Commission within 120 days after the end of the fiscal year to which this Form 10‑K relates. | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Entity Central Index Key | 0000046765 |
AUDIT INFORMATION
AUDIT INFORMATION | 12 Months Ended |
Sep. 30, 2023 | |
Auditor Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | Tulsa, Oklahoma |
Auditor Firm ID | 42 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Current Assets: | ||
Cash and cash equivalents | $ 257,174 | $ 232,131 |
Restricted cash | 59,064 | 36,246 |
Short-term investments | 93,600 | 117,101 |
Accounts receivable, net of allowance of $2,688 and $2,975, respectively | 404,188 | 458,713 |
Inventories of materials and supplies, net | 94,227 | 87,957 |
Prepaid expenses and other, net | 97,727 | 66,463 |
Assets held-for-sale | 645 | 4,333 |
Total current assets | 1,006,625 | 1,002,944 |
Investments | 264,947 | 218,981 |
Property, plant and equipment, net | 2,921,695 | 2,960,809 |
Other Noncurrent Assets: | ||
Goodwill | 45,653 | 45,653 |
Intangible assets, net | 60,575 | 67,154 |
Operating lease right-of-use assets | 50,400 | 39,064 |
Other assets, net | 32,061 | 20,926 |
Total other noncurrent assets | 188,689 | 172,797 |
Total assets | 4,381,956 | 4,355,531 |
Current Liabilities: | ||
Accounts payable | 130,852 | 126,966 |
Dividends payable | 25,194 | 26,693 |
Accrued liabilities | 262,885 | 241,151 |
Total current liabilities | 418,931 | 394,810 |
Noncurrent Liabilities: | ||
Long-term debt, net | 545,144 | 542,610 |
Deferred income taxes | 517,809 | 537,712 |
Other | 128,129 | 114,927 |
Total noncurrent liabilities | 1,191,082 | 1,195,249 |
Commitments and Contingencies (Note 15) | ||
Shareholders' Equity: | ||
Common stock, $0.10 par value, 160,000,000 shares authorized, 112,222,865 shares issued as of September 30, 2023 and 2022, and 99,426,526 and 105,293,662 shares outstanding as of September 30, 2023 and 2022, respectively | 11,222 | 11,222 |
Preferred stock, no par value, 1,000,000 shares authorized, no shares issued | 0 | 0 |
Additional paid-in capital | 525,369 | 528,278 |
Retained earnings | 2,707,715 | 2,473,572 |
Accumulated other comprehensive loss | (7,981) | (12,072) |
Treasury stock, at cost, 12,796,339 shares and 6,929,203 shares as of September 30, 2023 and 2022, respectively | (464,382) | (235,528) |
Total shareholders’ equity | 2,771,943 | 2,765,472 |
Total liabilities and shareholders' equity | $ 4,381,956 | $ 4,355,531 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Current Assets: | ||
Accounts receivable, net of allowance | $ 2,688 | $ 2,975 |
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) | 99,426,526 | 105,293,662 |
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) | 12,796,339 | 6,929,203 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
OPERATING REVENUES | |||
Drilling services | $ 2,862,677 | $ 2,049,841 | $ 1,210,800 |
Other | 9,744 | 9,103 | 7,768 |
Total operating revenues | 2,872,421 | 2,058,944 | 1,218,568 |
OPERATING COSTS AND EXPENSES | |||
Drilling services operating expenses, excluding depreciation and amortization | 1,715,098 | 1,426,589 | 952,600 |
Other operating expenses | 4,477 | 4,638 | 5,138 |
Depreciation and amortization | 382,314 | 403,170 | 419,726 |
Research and development | 30,046 | 26,563 | 21,724 |
Selling, general and administrative | 206,657 | 182,366 | 172,195 |
Asset impairment charges | 12,097 | 4,363 | 70,850 |
Restructuring charges | 0 | 838 | 5,926 |
Gain on reimbursement of drilling equipment | (48,173) | (29,443) | (12,322) |
Other (gain) loss on sale of assets | 8,016 | (5,432) | 11,280 |
Total operating costs and expenses | 2,310,532 | 2,013,652 | 1,647,117 |
OPERATING INCOME (LOSS) | 561,889 | 45,292 | (428,549) |
Other income (expense) | |||
Interest and dividend income | 28,393 | 18,090 | 10,254 |
Interest expense | (17,283) | (19,203) | (23,955) |
Gain on investment securities | 11,299 | 57,937 | 6,727 |
Loss on extinguishment of debt | 0 | (60,083) | 0 |
Other | 9,081 | (10,714) | 5,652 |
Total unallocated amounts | 31,490 | (13,973) | (1,322) |
Income (loss) before income taxes | 593,379 | 31,319 | (429,871) |
Income tax expense (benefit) | 159,279 | 24,366 | (103,721) |
NET INCOME (LOSS) | $ 434,100 | $ 6,953 | $ (326,150) |
Basic earnings (loss) per common share (in dollars per share) | $ 4.18 | $ 0.05 | $ (3.04) |
Diluted earnings (loss) per common share (in dollars per share) | $ 4.16 | $ 0.05 | $ (3.04) |
Weighted average shares outstanding: | |||
Basic (in shares) | 102,447 | 105,891 | 107,818 |
Diluted (in shares) | 102,852 | 106,555 | 107,818 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 434,100 | $ 6,953 | $ (326,150) |
Other comprehensive income, net of income taxes: | |||
Net change related to employee benefit plans, net of income taxes of $1.2 million, $2.3 million, and $1.8 million at September 30, 2023, 2022, and 2021, respectively. | 4,091 | 8,172 | 5,944 |
Other comprehensive income | 4,091 | 8,172 | 5,944 |
Comprehensive income (loss) | $ 438,191 | $ 15,125 | $ (320,206) |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net change related to employee benefit plans, net of income taxes | $ 1.2 | $ 2.3 | $ 1.8 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-In Capital | Retained Earnings | Retained Earnings Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Beginning balance (in shares) at Sep. 30, 2020 | 112,151,000 | |||||||
Beginning balance (in shares) at Sep. 30, 2020 | 4,663,000 | |||||||
Beginning balance at Sep. 30, 2020 | $ 3,318,514 | $ (1,251) | $ 11,215 | $ 521,628 | $ 3,010,012 | $ (1,251) | $ (26,188) | $ (198,153) |
Increase (Decrease) in Shareholders' Equity | ||||||||
Net (loss) income | (326,150) | (326,150) | ||||||
Other comprehensive income | 5,944 | 5,944 | ||||||
Dividends declared | (109,236) | (109,236) | ||||||
Vesting of restricted stock awards, net of shares withheld for employee taxes (in shares) | 71,000 | 339,000 | ||||||
Vesting of restricted stock awards, net of shares withheld for employee taxes | (2,161) | $ 7 | (18,683) | $ 16,515 | ||||
Stock-based compensation | 27,858 | 27,858 | ||||||
Other | (900) | (900) | ||||||
Ending balance (in shares) at Sep. 30, 2021 | 112,222,000 | |||||||
Ending balance (in shares) at Sep. 30, 2021 | 4,324,000 | |||||||
Ending balance at Sep. 30, 2021 | 2,912,618 | $ 11,222 | 529,903 | 2,573,375 | (20,244) | $ (181,638) | ||
Increase (Decrease) in Shareholders' Equity | ||||||||
Net (loss) income | 6,953 | 6,953 | ||||||
Other comprehensive income | 8,172 | 8,172 | ||||||
Dividends declared | (106,756) | (106,756) | ||||||
Vesting of restricted stock awards, net of shares withheld for employee taxes (in shares) | 550,000 | |||||||
Vesting of restricted stock awards, net of shares withheld for employee taxes | (5,499) | (28,608) | $ 23,109 | |||||
Stock-based compensation | 28,032 | 28,032 | ||||||
Share repurchases (in shares) | 3,155,000 | |||||||
Share repurchases | (76,999) | $ (76,999) | ||||||
Other | $ (1,049) | (1,049) | ||||||
Ending balance (in shares) at Sep. 30, 2022 | 105,293,662 | 112,222,000 | ||||||
Ending balance (in shares) at Sep. 30, 2022 | 6,929,203 | 6,929,000 | ||||||
Ending balance at Sep. 30, 2022 | $ 2,765,472 | $ 11,222 | 528,278 | 2,473,572 | (12,072) | $ (235,528) | ||
Increase (Decrease) in Shareholders' Equity | ||||||||
Net (loss) income | 434,100 | 434,100 | ||||||
Other comprehensive income | 4,091 | 4,091 | ||||||
Dividends declared | (199,957) | (199,957) | ||||||
Vesting of restricted stock awards, net of shares withheld for employee taxes (in shares) | 678,000 | |||||||
Vesting of restricted stock awards, net of shares withheld for employee taxes | (14,410) | (34,545) | $ 20,135 | |||||
Stock-based compensation | 32,456 | 32,456 | ||||||
Share repurchases (in shares) | 6,545,000 | |||||||
Share repurchases | (248,989) | $ (248,989) | ||||||
Other | $ (820) | (820) | ||||||
Ending balance (in shares) at Sep. 30, 2023 | 99,426,526 | 112,222,000 | ||||||
Ending balance (in shares) at Sep. 30, 2023 | 12,796,339 | 12,796,000 | ||||||
Ending balance at Sep. 30, 2023 | $ 2,771,943 | $ 11,222 | $ 525,369 | $ 2,707,715 | $ (7,981) | $ (464,382) |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared (in dollars per share) | $ 1 | |
Dividends declared, supplemental (in dollars per share) | $ 0.940 | |
Accounting Standards Update [Extensible List] | Accounting Standards Update 2016-13 [Member] |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income (loss) | $ 434,100 | $ 6,953 | $ (326,150) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 382,314 | 403,170 | 419,726 |
Asset impairment charges | 12,097 | 4,363 | 70,850 |
Amortization of debt discount and debt issuance costs | 1,079 | 1,200 | 1,423 |
Loss on extinguishment of debt | 0 | 60,083 | 0 |
Stock-based compensation | 32,456 | 28,032 | 27,858 |
Gain on investment securities | (11,299) | (57,937) | (6,727) |
Gain on reimbursement of drilling equipment | (48,173) | (29,443) | (12,322) |
Other (gain) loss on sale of assets | 8,016 | (5,432) | 11,280 |
Deferred income tax benefit | (20,400) | (28,488) | (89,752) |
Other | 8,979 | 7,140 | 2,640 |
Change in assets and liabilities: | |||
Accounts receivable | 56,281 | (235,562) | (28,416) |
Inventories of materials and supplies | (7,826) | (5,228) | 19,847 |
Prepaid expenses and other | (1,803) | 6,224 | (21,400) |
Other noncurrent assets | (11,135) | 2,581 | 2,772 |
Accounts payable | 4,237 | 53,242 | 31,027 |
Accrued liabilities | (10,139) | 45,069 | 33,957 |
Deferred income tax liability | (692) | 447 | 1,101 |
Other noncurrent liabilities | 5,590 | (22,501) | (1,274) |
Net cash provided by operating activities | 833,682 | 233,913 | 136,440 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital expenditures | (395,460) | (250,894) | (82,148) |
Other capital expenditures related to assets held-for-sale | 0 | (21,645) | 0 |
Purchase of short-term investments | (180,993) | (165,109) | (315,078) |
Purchase of long-term investments | (20,748) | (51,241) | (102,523) |
Proceeds from sale of short-term investments | 195,311 | 244,728 | 207,716 |
Proceeds from sale of long-term investments | 0 | 22,042 | 0 |
Proceeds from asset sales | 70,085 | 62,304 | 43,515 |
Insurance proceeds from involuntary conversion | 9,221 | 0 | 0 |
Advance payment for sale of property, plant and equipment | 0 | 0 | 86,524 |
Other | 0 | (7,500) | 0 |
Net cash used in investing activities | (322,584) | (167,315) | (161,994) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Dividends paid | (201,456) | (107,395) | (109,130) |
Proceeds from debt issuance | 0 | 0 | 548,719 |
Debt issuance costs | 0 | 0 | (3,935) |
Payments for employee taxes on net settlement of equity awards | (14,410) | (5,505) | (2,162) |
Payment of contingent consideration from acquisition of business | (250) | (250) | (7,250) |
Payments for early extinguishment of long-term debt | 0 | (487,148) | 0 |
Make-whole premium payment | 0 | (56,421) | 0 |
Share repurchases | (247,213) | (76,999) | 0 |
Other | (540) | (587) | (719) |
Net cash provided by (used in) financing activities | (463,869) | (734,305) | 425,523 |
Net increase (decrease) in cash and cash equivalents and restricted cash | 47,229 | (667,707) | 399,969 |
Cash and cash equivalents and restricted cash, beginning of period | 269,009 | 936,716 | 536,747 |
Cash and cash equivalents and restricted cash, end of period | 316,238 | 269,009 | 936,716 |
Cash paid (received) during the period: | |||
Interest paid | 17,099 | 18,909 | 26,706 |
Income tax paid | 199,139 | 17,731 | 1,456 |
Income tax received | (26,809) | (62) | (33,918) |
Payments for operating leases | 12,441 | 11,233 | 17,266 |
Non-cash operating and investing activities: | |||
Changes in accounts payable and accrued liabilities related to purchases of property, plant and equipment | (2,554) | (2,425) | (1,526) |
Changes in accounts receivable, property, plant and equipment and other noncurrent assets related to the sale of equipment | 0 | 0 | 9,290 |
Cumulative effect adjustment for adoption of ASU No. 2016-13 | $ 0 | $ 0 | $ (1,251) |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 12 Months Ended |
Sep. 30, 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 16—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, Bahrain, Colombia, the United Arab Emirates, and Australia. Our operations in Australia commenced in the fourth fiscal quarter of 2023. 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 | 12 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, RELATED RISKS AND UNCERTAINTIES | NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, RELATED RISKS AND UNCERTAINTIES Basis of Presentation The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Prior to the fiscal year ended September 30, 2023, Income from discontinued operations was presented as a separate line item on our 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 Consolidated Statements of Operations for the years ended September 30, 2022 and September 30, 2021. Principles of Consolidation The 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 Consolidated Statements of Operations and 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. Foreign Currencies Our functional currency, together with all our foreign subsidiaries, is the U.S. dollar. Monetary assets and liabilities denominated in currencies other than the U.S. dollar are translated at exchange rates in effect at the end of the period, and the resulting gains and losses are recorded on our Consolidated Statements of Operations. Aggregate foreign currency losses of $6.4 million, $5.9 million and $5.3 million in fiscal years 2023, 2022 and 2021, respectively, are included in drilling services operating expenses. Use of Estimates The preparation of our financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. 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 had restricted cash of $59.1 million and $36.9 million at September 30, 2023 and 2022, respectively. Of the total at September 30, 2023 and 2022, $0.7 million and $1.1 million, respectively, is related to the acquisition of drilling technology companies, and $58.4 million and $35.8 million, respectively, 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 Consolidated Balance Sheets as follows: September 30, (in thousands) 2023 2022 2021 Cash and cash equivalents $ 257,174 $ 232,131 $ 917,534 Restricted cash 59,064 36,246 18,350 Restricted cash - long-term: Other assets, net — 632 832 Total cash, cash equivalents, and restricted cash $ 316,238 $ 269,009 $ 936,716 Accounts Receivable Accounts receivable represents valid claims against our customers for our services rendered, net of allowances for credit losses. We perform credit evaluations of customers and do not typically require collateral in support for trade receivables. We provide an allowance for credit losses, when necessary, to cover estimated credit losses. Outstanding customer receivables are reviewed regularly for possible nonpayment indicators. We estimate expected credit losses over the life of our financial assets, which primarily consist of our accounts receivable. We evaluate our customers’ financial strength and liquidity based on aging of accounts receivable, payment history, and other relevant information, including ratings agency, credit ratings and alerts, and publicly available reports. Inventories of Materials and Supplies Inventories are primarily replacement parts and supplies held for consumption in our drilling operations. Inventories are valued at the lower of cost or net realizable value. Cost is determined on a weighted average basis and includes the cost of materials, shipping, duties and labor. Net realizable value is defined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The reserves for excess and obsolete inventory were $22.4 million and $28.0 million for fiscal years 2023 and 2022, respectively. Investments We maintain strategic investments in equity and debt securities of certain publicly traded and private companies together with short-term investments to manage liquidity in U.S. government, federal agency and corporate debt securities. We recognize our equity securities that have readily determinable fair values at fair value, with changes in such values reflected in net income. Our equity securities without readily determinable fair values are measured at cost, less any impairments and marked to fair value once observable changes in identical or similar investments from the same issuer occur. Debt securities classified as available-for-sale are reported at fair value and subject to impairment testing. Other than impairment losses, unrealized gains/losses are recognized, net of the related tax effect, in other comprehensive income. Upon sale, realized gains/losses are reported in net income. Related Party Transactions In October 2022, we made a $14.1 million equity investment, representing 106.0 million common shares in Tamboran Resources Limited, a publicly traded company on the Australian Securities Exchange Ltd under the ticker "TBN." Tamboran is focused on playing a constructive role in the global energy transition towards a lower carbon future, by developing a significantly low CO 2 gas resource within Australia's Beetaloo Sub-basin. Refer to Note 12—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 the same investee. During the fourth fiscal quarter of 2023, drilling services commenced. As of September 30, 2023, we recorded $2.8 million in receivables, $8.0 million in other assets, and $6.6 million as a contract liability on our Consolidated Balance Sheets and $3.4 million in revenue on our Consolidated Statement of Operations during the fiscal year ended September 30, 2023 related to the drilling services agreement with Tamboran. We expect to earn $37.0 million in revenue over the term of the contract, and, as such, this amount is included within our contract backlog as of September 30, 2023. Property, Plant, and Equipment Property, plant and equipment are carried at cost less accumulated depreciation. Substantially all property, plant and equipment are depreciated using the straight-line method based on the estimated useful lives of the assets after deducting their salvage values. The amount of depreciation expense we record is dependent upon certain assumptions, including an asset’s estimated useful life, rate of consumption, and corresponding salvage value. We periodically review these assumptions and may change one or more of these assumptions. Changes in our assumptions may require us to recognize, on a prospective basis, increased or decreased depreciation expense. We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Changes that could prompt such an assessment include a significant decline in revenue or cash margin per day, extended periods of low rig asset group utilization, changes in market demand for a specific asset, obsolescence, restructuring of our drilling fleet, and/or overall general market conditions. If the review of the long-lived assets indicates that the carrying value of these assets/asset groups is more than the estimated undiscounted future cash flows projected to be realized from the use of the asset and its eventual disposal an impairment charge is recognized, as required, to adjust the carrying value down to the estimated fair value of the asset. The estimated fair value is determined based upon either an income approach using estimated discounted future cash flows, a market approach considering factors such as recent market sales of rigs of other companies and our own sales of rigs, appraisals and other factors, a cost approach utilizing reproduction costs new as adjusted for the asset age and condition, and/or a combination of multiple approaches. Cash flows are estimated by management considering factors such as prospective market demand, margins, recent changes in rig technology and its effect on each rig’s marketability, any investment required to make a rig operational, suitability of rig size and make up to existing platforms, and competitive dynamics including industry utilization. Long-lived assets that are held for sale are recorded at the lower of carrying value or the fair value less costs to sell. Goodwill and Intangible Assets Goodwill represents the excess of the purchase price over the fair value of assets acquired and liabilities assumed in a business combinat ion, 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 of each fiscal year or when it is more likely than not that the carrying value may exceed fair value. If an impairment is determined to exist, an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value is recognized, limited to the total amount of goodwill allocated to that reporting unit. The reporting unit level is defined as an operating segment or one level below an operating segment. Finite-lived intangible assets are amortized using the straight-line method over the period in which these assets contribute to our cash flows, generally estimated to be 5 to 20 years, and are evaluated for impairment in accordance with our policies for valuation of long-lived assets. Drilling Revenues Drilling services revenues are primarily comprised of daywork drilling contracts for which the related revenues and expenses are recognized as services are performed and collection is reasonably assured. For certain contracts, we receive payments contractually designated for the mobilization of rigs and other drilling equipment. Revenues associated with mobilization and demobilization and direct costs incurred for the mobilization, are deferred and recognized on a straight-line basis as the drilling service is provided. Costs incurred to relocate rigs and other drilling equipment to areas in which a contract has not been secured are expensed as incurred. Reimbursements received for out-of-pocket expenses are recorded as both revenues and direct costs. Reimbursements for fiscal years 2023, 2022 and 2021 were $345.5 million, $263.1 million and $148.0 million, respectively. For fixed-term contracts that are terminated by customers prior to the expirations, 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. Early termination revenue for fiscal years 2023, 2022 and 2021 was approximately $2.3 million, $0.7 million and $7.7 million, respectively. Income Taxes Current income tax expense is the amount of income taxes expected to be payable for the current fiscal year. Deferred income taxes are computed using the liability method and are provided on all temporary differences between the financial basis and the tax basis of our assets and liabilities. We take tax positions in our tax returns from time to time that may not ultimately be allowed by the relevant taxing authority. When we take such positions, we evaluate the likelihood of sustaining those positions and determine the amount of tax benefit arising from such positions, if any, that should be recognized in our financial statements. We recognize uncertain tax positions we believe have a greater than 50 percent likelihood of being sustained. Tax benefits not recognized by us are recorded as a liability for unrecognized tax benefits, which represents our potential future obligation to various taxing authorities if the tax positions are not sustained. See Note 7—Income Taxes. Amounts for uncertain tax positions are adjusted in periods when new information becomes available or when positions are effectively settled. We recognize accrued interest related to unrecognized tax benefits in interest expense and penalties in other expense in the Consolidated Statements of Operations. Earnings per Common Share 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 nonvested restricted stock and performance share units. 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 Accounting Standards Codification ("ASC") 260, Earnings Per Share . As such, we have included these grants in the calculation of our basic earnings per share. Stock-Based Compensation Stock-based compensation expense is determined using a fair-value-based measurement method for all awards granted. The fair value of restricted stock awards is determined based on the closing price of our shares on the grant date. The grant date fair value of performance share units is determined through the use of the Monte Carlo simulation method. The Monte Carlo simulation method requires the use of highly subjective assumptions. Our key assumptions in the method include the price and the expected volatility of our stock and our self-determined peer group of companies’ (the "Peer Group") stock, risk free rate of return, dividend yields and cross-correlations between the Company and our Peer Group. Stock-based compensation is recognized on a straight-line basis over the requisite service periods of the stock awards, which is generally the vesting period. Stock-based compensation expense is recorded as a component of drilling services operating expenses, research and development expenses and selling, general and administrative expenses in the Consolidated Statements of Operations. See Note 10—Stock-based Compensation for additional discussion on stock-based compensation. Treasury Stock Treasury stock purchases are accounted for under the cost method whereby the cost of the acquired stock is recorded as treasury stock. Gains and losses on the subsequent reissuance of shares are credited or charged to additional paid-in capital using the average-cost method. Treasury stock may be issued under the Helmerich & Payne, Inc. Amended and Restated 2020 Omnibus Incentive Plan. Comprehensive Income or Loss Other comprehensive income or loss refers to revenues, expenses, gains, and losses that are included in comprehensive income or loss but excluded from net income or loss. We report the components of other comprehensive income or loss, net of tax, by their nature and disclose the tax effect allocated to each component in the Consolidated Statements of Comprehensive Income (Loss). Leases We lease various offices, warehouses, equipment and vehicles. Rental contracts are typically made for fixed periods of one Leases are recognized as a right-of-use asset and a corresponding liability within accrued liabilities and other non-current liabilities at the date at which the leased asset is available for use by the Company. Operating lease expense is recognized on a straight-line basis over the life of the lease. The right-of-use asset is depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis for finance type leases. Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments: • Fixed payments (including in-substance fixed payments), less any lease incentives receivable • Variable lease payments that are based on an index or a rate • Amounts expected to be payable by the lessee under residual value guarantees • The exercise price of a purchase option if the lessee is reasonably certain to exercise that option, and • Payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be determined, our incremental borrowing rate is used, which is the rate that we would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions. Right-of-use assets are measured at cost and are comprised of the following: • The amount of the initial measurement of lease liability • Any lease payments made at or before the commencement date less any lease incentives received • Any initial direct costs, and • Asset retirement obligations related to that lease, as applicable. Payments associated with short-term leases are recognized on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less. In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option. Extension options (or periods after termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not terminated). The assessment is reviewed if a significant event or a significant change in circumstances occurs and is within our control. Refer to Note 4—Leases for additional information regarding our leases. 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 recently adopted accounting pronouncements and our analysis of the effects on our financial statements: Standard Description Date of Effect on the Financial Recently Adopted Accounting Pronouncements ASU No. 2020-06, Debt with conversion and other options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s own equity (subtopic 815-40): Accounting for Convertible Instruments and Contracts In An Entity’s Own Equity This ASU reduces the complexity of accounting for convertible debt and other equity-linked instruments by reducing the number of accounting models for convertible debt instruments and convertible preferred stock. Limiting the accounting models results in fewer embedded conversion features being separately recognized from the host contract as compared with current GAAP. Convertible instruments that continue to be subject to separation models are (1) those with embedded conversion features that are not clearly and closely related to the host contract, that meet the definition of a derivative, and that do not qualify for a scope exception from derivative accounting and (2) convertible debt instruments issued with substantial premiums for which the premiums are recorded as paid-in capital. This update is effective for annual and interim periods beginning after December 15, 2021. October 1, 2022 We adopted this ASU, as required, during the first quarter of fiscal year 2023. The adoption did not have a material effect on our Consolidated Financial Statements and disclosures. ASU No. 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions The amendments in this update clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value (i.e., the entity would not apply a discount related to the contractual sale restriction). Furthermore, an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. The following disclosures for equity securities subject to contractual sale restrictions will be required: (1) the fair value of the equity securities subject to contractual sale restrictions reflected in the balance sheet, (2) the nature and remaining duration of the restriction(s), and (3) the circumstances that could cause a lapse in the restriction(s). This update is effective for annual and interim periods beginning after December 15, 2023. October 1, 2022 We early adopted this ASU during the first quarter of fiscal year 2023. The adoption did not have a material effect on our Consolidated Financial Statements and disclosures. Allowance for Credit Losses We establish an allowance for credit losses of our financial assets, which consists primarily of our accounts receivable, through a review of several factors, including historical collection experience, current aging status of the customer accounts, and current financial strength and liquidity of our customers. We review relevant information from the ratings agency, credit ratings and alerts, and publicly available reports. Losses are charged against the allowance when the customer accounts are determined to be uncollectible. Concentration of Credit Risk Financial instruments, which potentially subject us to concentrations of credit risk, consist primarily of temporary cash investments, short and long-term investments, and trade receivables. The industry concentration has the potential to impact our overall exposure to market and credit risks, either positively or negatively, in that our customers could be affected by similar changes in economic, industry or other conditions. However, we believe that the credit risk posed by this industry concentration is offset by the creditworthiness of our customer base. In fiscal years 2023, 2022 and 2021, no individual customers constituted 10 percent or more of our total consolidated revenues. We place temporary cash investments in the United States with established financial institutions and primarily invest in a diversified portfolio of highly rated, short-term instruments. Our trade receivables, primarily with established companies in the oil and gas industry, may impact credit risk as customers may be similarly affected by prolonged changes in economic and industry conditions. International sales also present various risks including governmental activities that may limit or disrupt markets and restrict the movement of funds. Most of our international sales, however, are to large international, majority state-owned, or government-owned national oil companies. Volatility of Market Our operations can be materially affected by oil and gas prices. Oil and natural gas prices have been historically volatile and difficult to predict with any degree of certainty. While current energy prices are important contributors to positive cash flow for customers, expectations about future prices and price volatility are generally more important for determining a customer’s future spending levels. This volatility, along with the difficulty in predicting future prices, can lead many exploration and production companies to base their capital spending on more conservative estimates of commodity prices. As a result, demand for drilling services is not always purely a function of the movement of commodity prices. In addition, customers may finance their exploration activities through cash flow from operations, the incurrence of debt or the issuance of equity. Any deterioration in the credit and capital markets may cause difficulty for customers to obtain funding for their capital needs. A reduction of cash flow resulting from declines in commodity prices or a reduction of available financing may result in a reduction in customer spending and the demand for our services. This reduction in spending could have a material adverse effect on our operations. Self-Insurance We self-insure a significant portion of expected losses relating to workers’ compensation, general liability and automobile liability. Generally, deductibles range from $1 million to $10 million per occurrence depending on the coverage and whether a claim occurs outside or inside of the United States. Insurance is purchased over deductibles to reduce our exposure to catastrophic events. Estimates are recorded for incurred outstanding liabilities for workers’ compensation, general, and automobile liability claims that are incurred but not reported. Estimates are based on adjusters’ estimates, historical experience and statistical methods commonly used within the insurance industry that we believe are reliable. Insurance recoveries related to such liabilities are recorded when considered probable. We have also engaged a third-party actuary to perform a review of our casualty losses as well as losses in our captive insurance companies. Nonetheless, insurance estimates include certain assumptions and management judgments regarding the frequency and severity of claims, claim development and settlement practices. Unanticipated changes in these factors may produce materially different amounts of expense that would be reported under these programs. The Company also self-insures employee health plan exposures in excess of employee deductibles. This program is also reviewed at the end of each policy year by a third-party actuary. 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 consisted primarily of adjustments to accruals for estimated losses of $12.5 million, $7.0 million, and $12.6 million and rig and casualty insurance premiums of $39.7 million, $35.6 million, and $21.9 million during the fiscal years ended September 30, 2023, 2022, and 2021, respectively. These operating costs were recorded within drilling services operating expenses in our Consolidated Statement of Operations. Intercompany premium revenues recorded by the Captives during the fiscal years ended September 30, 2023, 2022, and 2021 amounted to $67.4 million, $57.0 million, and $35.4 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 fiscal year ended September 30, 2023, 2022, and 2021 were $10.6 million, $11.8 million, and $12.0 million, respectively. International Solutions Drilling Risks International Solutions drilling operations may significantly contribute to our revenues and net operating income (loss). 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 Argentine branch of one of our second-tier subsidiaries remits U.S. dollars to its U.S. parent by converting the Argentine pesos into U.S. dollars through the Argentine Foreign Exchange Market and repatriating the U.S. dollars. Argentina also has a history of implementing currency controls that restrict the conversion and repatriation of U.S. dollars. In September 2020, Argentina implemented additional currency controls in an effort to preserve Argentina's U.S. dollar reserves. As a result of these currency controls, our ability to remit funds from our Argentine subsidiary to its U.S. parent has been limited. 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. Nonetheless, 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 $6.4 million, $5.9 million, and $5.3 million during the fiscal years ended September 30, 2023, 2022, and 2021 respectively. The Central Bank of Argentina maintains currency controls that limit our ability to access U.S. dollars in Argentina and remit cash from our Argentine operations. The execution of certain trades known as Blue Chip Swaps effectively results in a parallel U.S. dollar exchange rate. During the fiscal year ended 2023, we entered into a Blue Chip Swap transaction, which resulted in a $12.2 million loss on investment recorded in Gain on investment securities within our Consolidated Statements of Operations. As a result of the Blue Chip Swap transaction, $9.8 million of net cash was repatriated to the U.S. during the period. Because of the impact of local laws, our future operations in certain areas may be conducted through entities in which local citizens own interests an |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 3 PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment as of September 30, 2023 and 2022 consisted of the following: (in thousands) Estimated Useful Lives September 30, 2023 September 30, 2022 Drilling services equipment 4 - 15 years $ 6,396,612 $ 6,369,888 Tubulars 4 years 564,032 569,496 Real estate properties 10 - 45 years 47,313 45,557 Other 2 - 23 years 443,366 422,479 Construction in progress 1 97,374 70,119 7,548,697 7,477,539 Accumulated depreciation (4,627,002) (4,516,730) Property, plant and equipment, net $ 2,921,695 $ 2,960,809 Assets held-for-sale $ 645 $ 4,333 (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 in the Consolidated Statements of Operations of $375.7 million, $396.0 million and $412.5 million includes abandonments of $3.3 million, $6.6 million and $2.0 million for the fiscal years 2023, 2022 and 2021, respectively. 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 and an offsetting insurance recovery for the same amount are recorded within Depreciation and amortization in our Consolidated Statement of Operations for the fiscal year ended September 30, 2023. During the fiscal year ended September 30, 2023, we collected $9.2 million of the total expected insurance proceeds. Future proceeds in excess of the recognized loss will be recognized once all contingencies related to the insurance claim have been resolved. Assets Held-for-Sale The following table is a summary of the changes in the balance (in thousands) of our assets held-for-sale at the dates indicated below: Balance at September 30, 2021 $ 71,453 Plus: Asset additions 2,580 Less: Sale of assets held-for-sale (67,592) Reclassification to assets held and used (2,108) Balance at September 30, 2022 4,333 Plus: Asset additions 1,177 Less: Sale of assets held-for-sale (2,132) Impairment Expense (2,733) Balance at September 30, 2023 $ 645 Fiscal Year 2021 Activity In March 2021, the Company's leadership decided to continue the strategy, that began in 2019, which was to focus on operating various types of highly capable upgraded rigs and phasing out the older, less capable fleet. As a result, the Company developed a plan to sell 71 Domestic non-super-spec rigs, all within our North America Solutions segment, the majority of which were previously decommissioned, written down and/or held as capital spares. The book values of those assets were written down to $13.5 million, which represented their fair value less estimated cost to sell as of the assessment date, and were reclassified as held-for-sale in the second and third quarters of fiscal year 2021. As a result, we recognized a non-cash impairment charge of $56.4 million during the fiscal year ended September 30, 2021 in the Consolidated Statement of Operations. During September 2021, the Company agreed to sell eight FlexRig land rigs with an aggregate net book value of $55.6 million to ADNOC Drilling Company P.J.S.C. ("ADNOC Drilling") for $86.5 million. Two of the eight rigs were already located in the U.A.E where ADNOC Drilling is domiciled with the remaining six rigs to be shipped from the United States. As part of the sales agreement, the rigs were delivered and commissioned in stages over a twelve-month period subject to acceptance upon successful completion of final inspection on customary terms and conditions. The net book value of these assets were reclassified as held-for-sale in the fourth quarter of fiscal year 2021. No rigs were delivered to ADNOC Drilling as of September 30, 2021. During the fiscal year ended September 30, 2021, we formalized a plan to sell assets related to two of our lower margin service offerings, trucking and casing running services, which contributed approximately 2.8 percent to our consolidated revenue during fiscal year 2021, all within our North America Solutions segment. The combined net book values of these assets of $23.2 million were written down to their combined fair value less estimated cost to sell of $8.8 million, and were reclassified as held-for-sale. As a result, we recognized a non-cash impairment charge of $14.4 million in the Consolidated Statements of Operations during the year ended September 30, 2021 . Fiscal Year 2022 Activity During the fiscal year ended September 30, 2022, we closed on the sale of our trucking and casing running assets for total consideration less costs to sell of $6.0 million, in addition to the possibility of future earnout proceeds, resulting in a loss of $3.4 million recorded in Other (gain) loss on sale of assets within our Consolidated Statements of Operations. We recognized earnout proceeds associated with the sale of our trucking and casing running assets of $1.6 million and $1.1 million during the fiscal years ended September 30, 2023 and 2022, respectively, in Other (gain) loss on sale of assets within our Consolidated Statements of Operations. During the first quarter of fiscal year 2022, we identified two partial rig substructures that met the asset held-for-sale criteria and were reclassified as Assets held-for-sale on our Consolidated Balance Sheets. The combined net book value of the rig substructures of $2.0 million were written down to their estimated scrap value of $0.1 million, resulting in a non-cash impairment charge of $1.9 million within our North America Solutions segment and recorded in the Consolidated Statement of Operations for fiscal year ended September 30, 2022 . During the second quarter of fiscal year 2022, we completed the sale of these assets, resulting in no gain or loss as a result of the sale. During the same period, we identified two international FlexRig ® drilling rigs located in Colombia that met the asset held-for-sale criteria and were reclassified as Assets held-for-sale on our Consolidated Balance Sheets. In conjunction with establishing a plan to sell the two international FlexRig ® drilling rigs, we recognized a non-cash impairment charge of $2.5 million within our International Solutions segment and recorded in the Consolidated Statement of Operations during the fiscal year ended September 30, 2022 , as the rigs aggregate net book value of $3.4 million exceeded the fair value of the rigs less estimated cost to sell of $0.9 million. During the second quarter of fiscal year ended September 30, 2022 , we completed the sale of the two international FlexRig ® drilling rigs for total consideration of $0.9 million, resulting in no gain or loss as a result of the sale. During the fiscal year ended September 30, 2022, ADNOC Drilling accepted delivery of eight rigs with an aggregate net book value of $55.6 million. As a result, we recognized a gain of $3.1 million, after incurring $27.8 million of selling costs, during the fiscal year ended September 30, 2022 in Other (gain) loss on sale of assets within our Consolidated Statement of Operations. Upon final acceptance of delivery, these rigs were removed from assets classified as held-for-sale as of September 30, 2022. We paid approximately $21.6 million in cash charges attributable to selling costs for the eight rigs during fiscal year 2022. Fiscal Year 2023 Activity During the fiscal year ended September 30, 2023, 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 Consolidated Balance Sheets. 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 Asset impairment charges within our Consolidated Statement of Operations during the fiscal year ended September 30, 2023. During the fiscal year ended September 30, 2023, 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 same period, we also identified additional equipment that met the asset held-for-sale criteria and was reclassified to Assets held-for-sale on our 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 fiscal year ended September 30, 2023. These impairment charges are recorded in Asset impairment charges within our North America Solutions segment in our Consolidated Statement of Operations. The significant assumptions utilized in the valuations of held-for-sale assets were based on our intended method of disposal, historical sales of similar assets, and market quotes and are classified as Level 2 and Level 3 inputs by ASC Topic 820, Fair Value Measurement and Disclosures. Although we believe the assumptions used in our analysis are reasonable and appropriate, different assumptions and estimates could materially impact the analysis and our resulting conclusion. (Gain)/Loss on Sale of Assets Gain on Reimbursement of Drilling Equipment We recognized a gain of $48.2 million, $29.4 million, $12.3 million in fiscal years 2023, 2022 and 2021, 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 Consolidated Statements of Operations. Other (Gain)/Loss on Sale of Assets We recognized a (gain)/loss of $8.0 million, $(5.4) million and $11.3 million in fiscal years 2023, 2022 and 2021, respectively, related to the sale of rig equipment and other capital assets. These amounts are recorded in Other (gain) loss on sale of assets within our Consolidated Statements of Operations. Fiscal Year 2023 During the fiscal year ended September 30, 2023, we recognized a loss of $17.1 million as a result of scrapping excess drilling equipment and spares. Additionally, during the same fiscal period, we recognized a gain of $2.6 million, $2.4 million, and $2.5 million from vehicle sales, other drilling equipment sales, and other miscellaneous asset sales, respectively. We also recognized a gain of $1.6 million in earnout proceeds associated with the sale of our trucking services assets during the fiscal year ended September 30, 2022 . Fiscal Year 2022 During the first quarter of fiscal year 2022, we closed on the sale of our trucking and casing running assets resulting in a loss of $3.4 million, as mentioned above. We also recognized a gain of $1.1 million in earnout proceeds associated with the sale of our trucking services assets during the fiscal year ended September 30, 2022 . During the same fiscal period, ADNOC Drilling accepted delivery of eight rigs resulting in an aggregate gain of $3.1 million, as mentioned above. We also recognized a gain of $4.2 million related to the sale of other held-for-sale assets (discussed above) during the fiscal year ended September 30, 2022 . Fiscal Year 2021 |
LEASES
LEASES | 12 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
LEASES | NOTE 4 LEASES Lease Position (in thousands) September 30, 2023 September 30, 2022 Operating lease commitments, including probable extensions 1 $ 65,970 $ 44,769 Discounted using the lessee's incremental borrowing rate $ 55,894 $ 41,002 (Less): short-term leases recognized on a straight-line basis as expense (877) (1,052) (Less): other (207) (218) Lease liability recognized $ 54,810 $ 39,732 Of which: Current lease liabilities $ 13,772 $ 12,382 Non-current lease liabilities 41,038 27,350 (1) Our future minimal rental payments exclude optional extensions that have not been exercised but are probable to be exercised in the future, those probable extensions are included in the operating lease liability balance. The recognized right-of-use assets relate to the following types of assets: (in thousands) September 30, 2023 September 30, 2022 Properties $ 50,080 $ 38,925 Equipment 318 125 Other 2 14 Total right-of-use assets $ 50,400 $ 39,064 Lease Costs The following table presents certain information related to the lease costs for our operating leases: Year ended September 30, (in thousands) 2023 2022 Operating lease cost $ 11,004 $ 9,687 Short-term lease cost 1,437 1,546 Total lease cost $ 12,441 $ 11,233 Lease Terms and Discount Rates The table below presents certain information related to the weighted average remaining lease terms and weighted average discount rates for our operating leases: September 30, 2023 September 30, 2022 Weighted average remaining lease term 7.6 5.9 Weighted average discount rate 3.6 % 2.5 % Lease Obligations Total rent expense was $12.4 million, $11.2 million and $17.3 million for the fiscal years ended September 30, 2023, 2022 and 2021, respectively. Future minimum rental payments required under operating leases having initial or remaining non-cancelable lease terms in excess of one year at September 30, 2023 (in thousands) are as follows: Fiscal Year Amount 2024 $ 10,534 2025 7,552 2026 5,390 2027 5,055 2028 4,499 Thereafter 21,391 Total 1 $ 54,421 (1) Our future minimal rental payments exclude optional extensions that have not been exercised but are probable to be exercised in the future, those probable extensions are included in the operating lease liability balance. During the fiscal year ended September 30, 2023, we entered into a lease agreement to relocate our Tulsa corporate headquarters to a new office space. This lease commenced during the fourth fiscal quarter of 2023 and resulted in a $17.6 million increase to right-of-use assets and lease liability on our Consolidated Balance Sheets. In addition, we began amortizing the right of use asset over the initial lease term of approximately 12 years. We also have two unpriced five-year extension options that were not recognized as part of the right-of-use asset and lease liability. The future minimum lease payments for the new office space represent a material portion of the amounts shown in the table above. Additionally, the future minimum lease payments for our legacy Tulsa corporate office and our Tulsa industrial facility represent a material portion of the amounts shown in the table above. The lease agreement for our legacy Tulsa corporate office commenced on May 30, 2003 and was subsequently amended, most recently on April 1, 2021. The agreement will expire on January 31, 2025; however, we have two five-year renewal options that will not be exercised, thus were not recognized as part of our right-of-use assets and lease liabilities. The lease agreement for our Tulsa industrial facility, where we perform maintenance and assembly of FlexRig ® |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | NOTE 5 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 fiscal years ended September 30, 2023 and 2022, we had no additions or impairments to goodwill. As of September 30, 2023 and September 30, 2022 , 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. Intangible assets consisted of the following: September 30, 2023 September 30, 2022 (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 $ 34,092 $ 55,004 $ 89,096 $ 28,137 $ 60,959 Intellectual property 13 years 2,000 503 1,497 2,000 328 1,672 Trade name 20 years 5,865 1,791 4,074 5,865 1,475 4,390 Customer relationships 5 years 4,000 4,000 — 4,000 3,867 133 $ 100,961 $ 40,386 $ 60,575 $ 100,961 $ 33,807 $ 67,154 Amortization expense in the Consolidated Statements of Operations was $6.6 million for fiscal year 2023, and $7.2 million for fiscal years 2022 and 2021, and is estimated to be $6.4 million for fiscal year 2024, and approximately $25.6 million for fiscal year 2025 through 2028. |
DEBT
DEBT | 12 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
DEBT | NOTE 6 DEBT We have the following unsecured long-term debt outstanding with maturities shown in the following table: September 30, 2023 September 30, 2022 (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 $ (4,856) $ 545,144 $ 550,000 $ (7,390) $ 542,610 Long-term debt $ 550,000 $ (4,856) $ 545,144 $ 550,000 $ (7,390) $ 542,610 At September 30, 2023, aggregate maturities of long-term debt are as follows (in thousands): Year ending September 30, 2024 $ — 2025 — 2026 — 2027 — 2028 — Thereafter - Due 2031 550,000 $ 550,000 Senior Notes 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. 4.65% Senior Notes due 2025 On December 20, 2018, we issued approximately $487.1 million in aggregate principal amount of the 2025 Notes. The debt issuance costs were being amortized straight-line over the stated life of the obligation, which approximated the effective interest method. On September 27, 2021, the Company delivered a conditional notice of optional full redemption for all of the outstanding 2025 Notes at a redemption price calculated in accordance with the indenture governing the 2025 Notes, plus accrued and unpaid interest on the 2025 Notes to be redeemed. The Company financed the redemption of the 2025 Notes with the net proceeds from the offering of the 2031 Notes, together with cash on hand. The Company’s obligation to redeem the 2025 Notes was conditioned upon the prior consummation of the issuance of the 2031 Notes, which was satisfied on September 29, 2021. On October 27, 2021, we redeemed all of the outstanding 2025 Notes. As a result, the associated make-whole premium of $56.4 million and the write off of the unamortized discount and debt issuance costs of $3.7 million were recognized during the first fiscal quarter of 2022 contemporaneously with the October 27, 2021 debt extinguishment and recorded in Loss on Extinguishment of Debt on our Consolidated Statements of Operations during the fiscal year ended September 30, 2022 . 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. The 2018 Credit Facility also permits aggregate commitments under the facility to be increased by $300.0 million, subject to the satisfaction of certain conditions and the procurement of additional commitments from new or existing lenders. In March 2022, the 2018 Credit Facility was amended to change the benchmark rate from the London Interbank Offered Rate ("LIBOR") to the Secured Overnight Financing Rate ("SOFR"). Following the amendment, we can elect to borrow at either an adjusted SOFR rate or an adjusted base rate, plus an applicable margin. The adjusted SOFR rate is the forward-looking term rate based on SOFR for the applicable tenor of one, three, or six months, plus 0.10 percent per annum. The adjusted base rate is a fluctuating rate per annum equal to the highest of (i) the administrative agent's prime rate, (ii) the federal funds effective rate plus 0.50 percent, or (iii) the one-month adjusted SOFR rate plus 1.0 percent. We also pay a commitment fee on the unused balance of the facility. Borrowing spreads as well as commitment fees are determined based on the debt rating for senior unsecured debt of the Company, as determined by Moody’s and Standard & Poor’s. The applicable margin for SOFR borrowings and adjusted base rate borrowings ranges from 0.875 percent to 1.500 percent per annum and zero to 0.50 percent per annum, respectively. Commitment fees for both rates range from 0.075 percent to 0.200 percent per annum. Based on the unsecured debt rating of the Company on September 30, 2023, the spread over SOFR would have been 1.125 percent had borrowings been outstanding under the 2018 Credit Facility and commitment fees would have been 0.125 percent. There is a financial covenant in the 2018 Credit Facility that requires us to maintain a total funded debt to total capitalization ratio of less than or equal to 50 percent. The 2018 Credit Facility contains additional terms, conditions, restrictions and covenants that we believe are usual and customary in unsecured debt arrangements for companies of similar size and credit quality, including a limitation that priority debt (as defined in the credit agreement) may not exceed 17.5 percent of the net worth of the Company. As of September 30, 2023, there were no borrowings or letters of credit outstanding, leaving $750.0 million available to borrow under the 2018 Credit Facility. As of September 30, 2023, we had $95.0 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 $95.0 million, $40.0 million was outstanding as of September 30, 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 September 30, 2023. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 7 INCOME TAXES Income Tax (Benefit) Provision and Rate The components of the provision (benefit) for income taxes are as follows: Year Ended September 30, (in thousands) 2023 2022 2021 Current: Federal $ 150,273 $ 40,245 $ (15,466) Foreign 12,883 10,703 772 State 16,523 1,906 725 179,679 52,854 (13,969) Deferred: Federal (20,337) (32,382) (81,760) Foreign (1,254) (1,310) 4,106 State 1,191 5,204 (12,098) (20,400) (28,488) (89,752) Total provision (benefit) $ 159,279 $ 24,366 $ (103,721) Prior to the fiscal year ended September 30, 2023, Income from discontinued operations was presented as a separate line item on our Consolidated Statements of Operations. To conform with the current fiscal year presentation, we reclassified amounts previously presented in Income from discontinued operations to Other within Other income (expense) on our Consolidated Statements of Operations for the years ended September 30, 2022 and September 30, 2021. Thus, the September 30, 2022 and September 30, 2021 amounts of domestic and foreign income (loss) before income taxes and the September 30, 2022 and September 30, 2021 reconciliation of our effective income tax rates to the U.S. Federal income tax rates have been revised to conform with the current fiscal year presentation. The amounts of domestic and foreign income (loss) before income taxes are as follows: Year Ended September 30, (in thousands) 2023 2022 2021 Domestic $ 584,891 $ (14,411) $ (412,556) Foreign 8,488 45,730 (17,315) $ 593,379 $ 31,319 $ (429,871) The reconciliation of our effective income tax rates to the U.S. Federal income tax rate is as follows: Year Ended September 30, 2023 2022 2021 U.S. Federal income tax rate 21.0 % 21.0 % 21.0 % Effect of foreign taxes 2.1 31.3 0.1 State income taxes, net of federal tax benefit 2.4 21.4 2.7 Other impact of foreign operations 0.2 3.2 0.5 Non-deductible meals and entertainment 0.6 1.0 (0.1) Equity compensation (0.1) 9.5 (0.8) Excess officer's compensation 0.4 3.7 — Foreign derived intangible income — (13.7) — Other 0.2 0.4 0.7 Effective income tax rate 26.8 % 77.8 % 24.1 % Deferred Taxes Deferred income taxes are provided for temporary differences between the financial reporting basis and the tax basis of our assets and liabilities. Recoverability of any tax assets are evaluated and necessary valuation allowances are provided. The carrying value of the net deferred tax assets is based on management’s judgments using certain estimates and assumptions that we will be able to generate sufficient future taxable income in certain tax jurisdictions to realize the benefits of such assets. If these estimates and related assumptions change in the future, additional valuation allowances may be recorded against the deferred tax assets resulting in additional income tax expense in the future. The components of our net deferred tax liabilities are as follows: September 30, (in thousands) 2023 2022 Deferred tax liabilities: Property, plant and equipment $ 532,827 $ 558,293 Marketable securities 14,626 9,766 Other 27,980 24,460 Total deferred tax liabilities 575,433 592,519 Deferred tax assets: Pension reserves 3,083 4,811 Self-insurance reserves 6,235 7,333 Net operating loss, foreign tax credit, and other federal tax credit carryforwards 6,770 8,673 Financial accruals 29,449 31,022 Other 21,647 13,678 Total deferred tax assets 67,184 65,517 Valuation allowance (9,560) (10,710) Net deferred tax assets 57,624 54,807 Net deferred tax liabilities $ 517,809 $ 537,712 The change in our net deferred tax assets and liabilities is impacted by foreign currency remeasurement. As of September 30, 2023, we had federal, state and foreign tax net operating loss carryforwards of approximately $2.6 million, $14.8 million and $14.8 million, respectively, and federal and foreign research and development tax credits of approximately $0.4 million and $1.0 million, respectively, which will expire in fiscal 2024 through 2043 and some of which can be carried forward indefinitely. Certain of these carryforwards are subject to various rules which impose limitations on their utilization. The valuation allowance is primarily attributable to foreign net operating loss carryforwards of $2.6 million and equity compensation of $6.9 million which more likely than not will not be utilized. Unrecognized Tax Benefits We recognize accrued interest related to unrecognized tax benefits in interest expense, and penalties in other expense in the Consolidated Statements of Operations. As of September 30, 2023, 2022 and 2021, we had accrued interest and penalties of $2.9 million, $3.0 million and $2.9 million, respectively. A reconciliation of the change in our gross unrecognized tax benefits are as follows: (in thousands) 2023 2022 2021 Unrecognized tax benefits at October 1, $ 960 $ 1,678 $ 13,440 Gross decreases - current period effect of tax positions (534) (718) (11,648) Gross increases - current period effect of tax positions 6 — — Expiration of statute of limitations for assessments (185) — (114) Unrecognized tax benefits at September 30, $ 247 $ 960 $ 1,678 As of September 30, 2023, we have recorded approximately $3.1 million of unrecognized tax benefits, interest, and penalties. We believe it is reasonably possible up to $2.6 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 any additional material increases or decreases of our unrecognized tax benefits for the next twelve months. Tax Returns We file a consolidated U.S. federal income tax return, as well as income tax returns in various states and foreign jurisdictions. The tax years that remain open to examination by U.S. federal and state jurisdictions include fiscal years 2019 through 2022, with exception of certain state jurisdictions currently under audit. The tax years remaining open to examination by foreign jurisdictions include 2003 through 2022. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Sep. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 8 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. On June 7, 2023, the Board of Directors further increased the maximum number of shares authorized to be repurchased in calendar year 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 Consolidated Balance Sheets. During the fiscal year ended September 30, 2023 and 2022, we repurchased 6.5 million common shares at an aggregate cost of $249.0 million, including excise tax of $1.8 million, and 3.2 million common shares at an aggregate cost of $77.0 million, respectively, which are held as treasury shares. There were no repurchases of common shares during the fiscal year ended September 30, 2021. During the year ended September 30, 2023, we declared $200.0 million in cash dividends. A base cash dividend of $0.25 per share was declared on September 6, 2023 for shareholders of record on November 20, 2023, payable on December 4, 2023. As a result, we recorded a Dividend Payable of $25.2 million on our Consolidated Balance Sheets as of September 30, 2023. Accumulated Other Comprehensive Loss Components of accumulated other comprehensive loss were as follows: September 30, (in thousands) 2023 2022 2021 Pre-tax amounts: Unrealized actuarial loss $ (10,407) $ (15,703) $ (26,268) $ (10,407) $ (15,703) $ (26,268) After-tax amounts: Unrealized actuarial loss $ (7,981) $ (12,072) $ (20,244) $ (7,981) $ (12,072) $ (20,244) The following is a summary of the changes in accumulated other comprehensive loss, net of tax, for the fiscal year ended September 30, 2023: (in thousands) Defined Benefit Pension Plan Balance at September 30, 2022 $ (12,072) Activity during the period Amounts reclassified from accumulated other comprehensive loss 4,091 Net current-period other comprehensive income 4,091 Balance at September 30, 2023 $ (7,981) |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 12 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | NOTE 9 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 to 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 contract types 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 $1.2 billion, $0.7 billion and $0.3 billion during the fiscal years ended September 30, 2023, 2022 and 2021, respectively, of which, $47.3 million, $38.8 million and $17.4 million was related to performance bonuses recognized due to the achievement of performance targets during the fiscal years ended September 30, 2023, 2022 and 2021, 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 fiscal years ended September 30, 2023, 2022 and 2021, early termination revenue associated with term contracts was $2.3 million, $0.7 million and $7.7 million, respectively. We also act as a principal for certain reimbursable services and auxiliary equipment provided by us to our clients, primarily related to rig move trucking services, for which we incur costs and earn revenues. Many of these costs are variable, or dependent upon the activity that is performed each day under the related contract. Accordingly, reimbursements that we receive for out-of-pocket expenses are recorded as revenues and the out-of-pocket expenses for which they relate are recorded as operating costs during the period to which they relate within the series of distinct time increments. All of our revenues are recognized net of sales taxes, when applicable. With most drilling contracts, we also receive payments contractually designated for the mobilization and demobilization of drilling rigs and other equipment to and from the client’s drill site. Revenue associated with the mobilization and demobilization of our drilling rigs to and from the client’s drill site do not relate to a distinct good or service. These revenues are deferred and recognized ratably over the related contract term that drilling services are provided. Demobilization fees expected to be received upon contract completion are estimated at contract inception and recognized on a straight-line basis over the contract term. The amount of demobilization revenue that we ultimately collect is dependent upon the specific contractual terms, most of which include provisions for reduced or no payment for demobilization when, among other things, the contract is renewed or extended with the same client, or when the rig is subsequently contracted with another client prior to the termination of the current contract. Since revenues associated with demobilization activity are typically variable, at each period end, they are 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. Any change in the expected amount of demobilization revenue is accounted for with the net cumulative impact of the change in estimate recognized in the period during which the revenue estimate is revised. On November 12, 2021, we settled a drilling contract dispute related to drilling services provided from fiscal years 2016 through 2019 with YPF S.A. (Argentina) ("YPF"). The settlement required that YPF make a one-time cash payment to H&P in the amount of $11.0 million and enter into drilling service contracts for three drilling rigs, each with multi-year terms. In addition, both parties were released of all outstanding claims against each other, and as a result, H&P recognized $5.4 million in revenue primarily due to accrued disputed amounts. Total revenue recognized as a result of the settlement in the amount of $16.4 million is included in Drilling services revenue within the International Solutions segment on our Consolidated Statements of Operations for the fiscal year ended September 30, 2022. Contract Costs Mobilization costs include certain direct costs incurred for mobilization of contracted rigs. These costs relate directly to a contract, enhance resources that will be used in satisfying the future performance obligations, and are expected to be recovered. These costs are capitalized when incurred and recorded as current or noncurrent contract fulfillment cost assets (depending on the length of the initial contract term), and are amortized on a systematic basis consistent with the pattern of the transfer of the goods or services to which the asset relates, which typically includes the initial term of the related drilling contract or a period longer than the initial contract term if management anticipates a customer will renew or extend a contract, which we expect to benefit from the cost of mobilizing the rig. Abnormal mobilization costs are fulfillment costs that are incurred from excessive resources, wasted or spoiled materials, and unproductive labor costs that are not otherwise anticipated in the contract price and are expensed as incurred. As of September 30, 2023 and 2022, we capitalized fulfillment costs of $11.4 million and $6.3 million respectively, which is included within Prepaid expenses and Other noncurrent assets on our Consolidated Balance Sheets. If capital modification costs are incurred for rig modifications or if upgrades are required for a contract, these costs are considered to be capital improvements. These costs are capitalized as property, plant and equipment and depreciated over the estimated useful life of the improvement. Remaining Performance Obligations The total aggregate transaction price allocated to the unsatisfied performance obligations, commonly referred to as backlog, as of September 30, 2023 was approximately $1.4 billion, of which $0.9 billion is expected to be recognized during fiscal year 2024, and approximately $0.5 billion in fiscal year 2025 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 Amounts owed from our customers under our revenue contracts are typically billed on a monthly basis as the service is being provided and are due within 30 days of billing. Such amounts are classified as accounts receivable on our Consolidated Balance Sheets. Under certain of our contracts, we recognize revenues in excess of billings, referred to as contract assets, within Prepaid expenses and Other current assets within our Consolidated Balance Sheets. In some instances, we may be entitled to receive payments in advance of satisfying our performance obligations under the contract. We recognize a liability for these payments in excess of revenue recognized, referred to as deferred revenue or contract liabilities, within Accrued liabilities and Other noncurrent liabilities in our Consolidated Balance Sheets. Contract balances are presented at the net amount at a contract level. The following table summarizes the balances of our contract assets (net of allowance for estimated credit losses) and liabilities at the dates indicated: (in thousands) September 30, 2023 September 30, 2022 Contract assets, net $ 6,560 $ 6,319 (in thousands) Contract liabilities balance at October 1, 2021 $ 9,286 Payment received/accrued and deferred 58,202 Revenue recognized during the period (46,842) Contract liabilities balance at September 30, 2022 20,646 Payment received/accrued and deferred 76,756 Revenue recognized during the period (68,520) Contract liabilities balance at September 30, 2023 $ 28,882 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | NOTE 10 STOCK-BASED COMPENSATION The Helmerich & Payne, Inc. Amended and Restated 2020 Omnibus Incentive Plan (the “2020 Plan”) approved by our stockholders is a stock and cash-based incentive plan that, among other things, authorizes the Board or Human Resources Committee of the Board to grant executive officers, employees and non-employee directors stock options, stock appreciation rights, restricted shares and restricted share units (including performance share units), share bonuses, other share-based awards and cash awards. Restricted stock may be granted for no consideration other than prior and future services. The purchase price per share for stock options may not be less than market price of the underlying stock on the date of grant. Stock options expire ten years after the grant date. The 2020 Plan governs all of our stock-based awards granted on or after March 3, 2020. Awards outstanding under the Helmerich & Payne, Inc. 2010 Long-Term Incentive Plan and the Helmerich & Payne, Inc. 2016 Omnibus Incentive Plan (the "2016 Plan") remain subject to the terms and conditions of those plans. Beginning with fiscal year 2019, we replaced stock options with performance share units as a component of our executives' long-term equity incentive compensation. As a result, there were no stock options granted during the fiscal years ended September 30, 2023, 2022, and 2021. We have also eliminated stock options as an element of our non-employee director compensation program. At September 30, 2023, we had 2.1 million outstanding exercisable stock options with weighted-average exercise prices of $65.08. During the fiscal year ended September 30, 2023, 591,838 shares of restricted stock awards and 144,136 performance share units were granted under the 2020 Plan. A summary of compensation cost for stock-based payment arrangements recognized in Drilling services operating expense, Research and development expense and Selling, general and administrative expense on our Consolidated Statements of Operations is as follows: September 30, (in thousands) 2023 2022 2021 Stock-based compensation expense Drilling services operating $ 5,919 $ 5,142 $ 5,927 Research and development 1,905 1,551 1,271 Selling, general and administrative 24,632 21,339 20,660 $ 32,456 $ 28,032 $ 27,858 . Restricted Stock Restricted stock awards consist of our common stock. Awards granted prior to September 30, 2020 are time-vested over four years, and awards granted after September 30, 2020 are time vested over three years. Non-forfeitable dividends are paid on non-vested shares of restricted stock. We recognize compensation expense on a straight-line basis over the vesting period. The fair value of restricted stock awards is determined based on the closing price of our shares on the grant date. As of September 30, 2023, there was $26.5 million of total unrecognized compensation cost related to unvested restricted stock awards. That cost is expected to be recognized over a weighted-average period of 1.9 years. A summary of the status of our restricted stock awards as of September 30, 2023, and of changes in restricted stock outstanding during the fiscal years ended September 30, 2023, 2022 and 2021, is as follows: 2023 2022 2021 (shares in thousands) Shares 1 Weighted-Average Grant Date Fair Value per Share Shares 1 Weighted-Average Grant Date Fair Value per Share Shares 1 Weighted-Average Grant Date Fair Value per Share Non-vested restricted stock outstanding as of the beginning of period 1,493 $ 30.85 1,412 $ 37.36 1,280 $ 49.81 Granted 592 44.48 744 25.83 701 25.61 Vested 2 (708) 33.95 (610) 39.81 (534) 51.79 Forfeited (15) 36.25 (53) 30.98 (35) 35.76 Non-vested restricted stock outstanding at September 30, 1,362 $ 35.11 1,493 $ 30.85 1,412 $ 37.36 (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 fiscal years ended September 30, 2023, 2022, and 2021, 12,591, 14,199, and 18,906 restricted phantom stock units were granted, respectively, and 14,199, 18,906 and 20,616 restricted phantom stock units vested, respectively. (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 We have made awards to certain employees that are subject to market-based performance conditions ("performance units"). Subject to the terms and conditions set forth in the applicable performance share unit award agreements and the 2020 Plan, grants of performance units are subject to a vesting period of three years (the “Vesting Period”) that is dependent on the achievement of certain performance goals. Such performance unit grants consist of two separate components. Performance units that comprise the first component are subject to a three-year performance cycle. Performance units that comprise the second component are further divided into three separate tranches, each of which is subject to a separate one-year performance cycle within the full three-year performance cycle. The vesting of the performance units is generally dependent on (i) the achievement of the Company’s total shareholder return (“TSR”) performance goals relative to the TSR achievement of a peer group of companies (the “Peer Group”) over the applicable performance cycle, and (ii) the continued employment of the recipient of the performance unit award throughout the Vesting Period. The Vesting Period for performance units granted in November 2019 ended on December 31, 2022 and the performance units eligible to vest were settled in shares of common stock in January 2023. Additional performance units are credited based on the amount of cash dividends on our common stock divided by the market value of our common stock on the date such dividend is paid. Such dividend equivalents are subject to the same terms and conditions as the underlying performance units and are settled or forfeited in the same manner and at the same time as the performance units to which they were credited. The vesting of units ranges from zero to 200 percent of the units granted depending on the Company’s TSR relative to the TSR of the Peer Group on the vesting date. Performance units granted in December 2022 include an additional return on invested capital (“ROIC”) performance metric. The number of these performance units that otherwise would be paid out solely based on the achievement of TSR performance goals may increase or decrease by 25% based on the Company’s ROIC performance over a three year period. The grant date fair value of performance units was determined through use of the Monte Carlo simulation method. The Monte Carlo simulation method requires the use of highly subjective assumptions. Our key assumptions in the method include the price and the expected volatility of our stock and our self-determined Peer Group companies' stock, risk free rate of return and cross-correlations between the Company and our Peer Group companies. The valuation model assumes dividends are immediately reinvested. As of September 30, 2023, there was $9.2 million of unrecognized compensation cost related to unvested performance units. That cost is expected to be recognized over a weighted-average period of 1.8 years. A summary of the status of our performance units and changes in non-vested performance units outstanding is presented below: 2023 2022 2021 (in thousands, except per share amounts) Shares Weighted-Average Grant Date Fair Value per Share Shares Weighted-Average Grant Date Fair Value per Share Shares Weighted-Average Grant Date Fair Value per Share Non-vested performance units outstanding as of the beginning of period 726 $ 33.67 699 $ 41.55 337 $ 51.09 Granted 144 54.30 227 30.12 313 29.77 Vested 1 (286) 43.40 (161) 62.66 — — Dividend equivalent rights credited and performance factor adjustment 2 212 35.94 15 32.82 60 49.64 Forfeited — — (54) 34.16 (11) 43.40 Non-vested performance units outstanding September 30, 3 796 $ 34.51 726 $ 33.67 $ 699 $ 41.55 (1) The number of performance units vested includes units that we withheld on behalf of our employees to satisfy the statutory tax withholding requirements. (2) 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. (3) Of the total non-vested performance units at the end of the period, specified performance criteria has been achieved with respect to 233,322 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 maximum performance criteria, approximately 412,046 additional performance units could vest or become eligible to vest. The weighted-average fair value calculations for performance units granted within the fiscal period are based on the following weighted-average assumptions set forth in the table below. 2023 2022 2021 Risk-free interest rate 1 4.1 % 1.0 % 0.2 % Expected stock volatility 2 71.6 % 67.3 % 62.3 % Expected term (in years) 3 3 3 (1) The risk-free interest rate is based on U.S. Treasury securities for the expected term of the performance units. (2) Expected volatilities are based on the daily closing price of our stock based upon historical experience over a period which approximates the expected term of the performance units. |
EARNINGS (LOSS) PER COMMON SHAR
EARNINGS (LOSS) PER COMMON SHARE | 12 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER COMMON SHARE | NOTE 11 EARNINGS (LOSS) 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. Prior to the fiscal year ended September 30, 2023, Income from discontinued operations was presented as a separate line item on our Consolidated Statements of Operations. To conform with the current fiscal year presentation, we reclassified amounts previously presented in Income from discontinued operations to Other within Other income (expense) on our Consolidated Statements of Operations for the years ended September 30, 2022 and September 30, 2021. To conform with the current fiscal year presentation, basic and diluted earnings (loss) per share for continuing and discontinued operations are presented in the aggregate, for the years ended September 30, 2022 and September 30, 2021, as presented below. The following table sets forth the computation of basic and diluted earnings (loss) per share: September 30, (in thousands, except per share amounts) 2023 2022 2021 Numerator: Net income (loss) $ 434,100 $ 6,953 $ (326,150) Adjustment for basic earnings (loss) per share: Earnings allocated to unvested shareholders (5,863) (1,508) (1,350) Numerator for basic earnings (loss) per share 428,237 5,445 (327,500) Adjustment for diluted earnings (loss) per share: Effect of reallocating undistributed earnings of unvested shareholders 12 — — Numerator for diluted earnings (loss) per share $ 428,249 $ 5,445 $ (327,500) Denominator: Denominator for basic earnings (loss) per share - weighted-average shares 102,447 105,891 107,818 Effect of dilutive shares from restricted stock and performance share units 405 664 — Denominator for diluted earnings (loss) per share - adjusted weighted-average shares 102,852 106,555 107,818 Basic earnings (loss) per common share $ 4.18 $ 0.05 $ (3.04) Diluted earnings (loss) per common share $ 4.16 $ 0.05 $ (3.04) We had a net loss for fiscal year 2021. Accordingly, our diluted earnings per share calculation for that year was equivalent to our basic earnings per share calculation since diluted earnings per share excludes any assumed vesting of equity awards. These were excluded because they were deemed to be anti-dilutive, meaning their inclusion would have reduced the reported net loss per share in the applicable period. The following potentially dilutive average shares attributable to outstanding equity awards were excluded from the calculation of diluted earnings (loss) per share because their inclusion would have been anti-dilutive: (in thousands, except per share amounts) 2023 2022 2021 Potentially dilutive shares excluded as anti-dilutive 2,451 2,543 3,894 Weighted-average price per share $ 62.08 $ 62.36 $ 57.23 |
FAIR VALUE MEASUREMENT OF FINAN
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS | NOTE 12 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. 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 was $25.2 million. None of these investment 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 was $3.0 million, of which $2.4 million is marked to fair value. The remaining $0.6 million is measured at cost, less any impairments. September 30, 2022 (in thousands) Fair Value Level 1 Level 2 Level 3 Assets Short-term investments: Corporate debt securities $ 98,264 $ — $ 98,264 $ — U.S. government and federal agency securities 18,837 18,837 — — Total 117,101 18,837 98,264 — Long-term investments: Recurring fair value measurements: Equity securities: Non-qualified supplemental savings plan 14,301 14,301 — — Investment in ADNOC Drilling 147,370 147,370 — — Debt securities: Investment in Galileo 33,000 — — 33,000 Other 565 — — 565 Total 195,236 161,671 — 33,565 Nonrecurring fair value measurements 1 : Geothermal equity securities 2 10,707 — — 10,707 Total 10,707 — — 10,707 Total $ 205,943 $ 161,671 $ — $ 44,272 Liabilities Contingent consideration $ 4,022 $ — $ — $ 4,022 (1) As of September 30, 2022, our other equity security investments are included in our nonrecurring fair value assets. The balances of these equity security investments was $0.6 million measured at cost, less any impairments. (2) As of September 30, 2022, our equity security investments in geothermal energy was $23.1 million, of which $10.7 million was marked to fair value during the period. The remaining $12.4 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 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 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 Consolidated Balance Sheets and measured at fair value with any gains or losses recognized through net income (loss) and recorded within Gain (loss) on investment securities on our Consolidated Statements of Operations. During the fiscal year ended September 30, 2023, we early adopted ASU No. 2022-03 which states that the contractual restriction on the sale of an equity security that is publicly traded is not considered in measuring fair value. The provisions of ASU No. 2022-03 were consistent with our historical accounting for our investment in ADNOC Drilling. During the fiscal year ended September 30, 2023 and 2022, we recognized a gain of $27.4 million and $47.4 million on our Consolidated Statements of Operations for each period respectively, as a result of the change in fair value of the investment during the period. As of September 30, 2023, this investment is classified as a Level 1 investment based on the quoted stock price on the Abu Dhabi Securities Exchange. During the fiscal year ended September 30, 2022, we sold our remaining equity securities of approximately 467.5 thousand shares in Schlumberger, Ltd. and received proceeds of approximately $22.0 million. For the fiscal year ended September 30, 2022, we recorded a gain of $8.2 million related to this investment, which includes a $0.5 million gain recognized upon the sale of our investment and a $7.7 million gain as a result of the change in fair value of the investment during the period. This activity is reported in Gain (loss) on investment securities in our Consolidated Statements of Operations. This investment was classified as Level 1 and based on the quoted stock price. 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, a publicly traded company on the Australian Securities Exchange Ltd under the ticker "TBN." Tamboran is focused on playing a constructive role in the global energy transition towards a lower carbon future, by developing a significantly low CO 2 gas resource within 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 6.2 percent as of September 30, 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 Consolidated Balance Sheet as of September 30, 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 (loss). 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 year ended September 30, 2023, we recognized a loss of $4.2 million recorded within Gain (loss) on investment securities on our 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 with Galileo was amended to include any interest which has accrued but not yet compounded or issued as a note. As a result, we have included 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 September 30, 2023 and 2022, the fair value of the convertible note was approximately equal to the cost basis. The following table provides quantitative information about our Level 3 unobservable significant inputs related to our debt security investment with Galileo at the dates included below: September 30, 2023 Fair Value (in thousands) Valuation Technique Unobservable Inputs $ 35,434 Black-Scholes-Merton model Discount rate 19.2 % Risk-free rate 4.3 % Equity volatility 92.0 % September 30, 2022 Fair Value (in thousands) Valuation Technique Unobservable Inputs $ 33,000 Black-Scholes-Merton model Discount rate 22.4 % Risk-free rate 4.0 % Equity volatility 92.5 % 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: Year Ended (in thousands) 2023 2022 Assets at beginning of period $ 33,565 $ 500 Purchases 2,122 36,065 Accrued interest 1 2,434 — Transfers in/(out) 2 — (3,000) Reserves 3 (681) — Assets at end of period $ 37,440 $ 33,565 (1) During the fiscal year ended September 30, 2023, our convertible note agreement with Galileo was amended to include any interest which has accrued but not yet compounded or issued as a funding note. As a result, we have included accrued interest in our total investment balance. (2) This represents the conversion from debt to equity securities on the Consolidated Balance Sheets as of September 30, 2022. (3) During the fiscal year ended September 30, 2023, we recorded an allowance for credit loss related to one of our geothermal debt securities as the balance is deemed to be uncollectible. 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 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 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: Year Ended (in thousands) 2023 2022 Assets at beginning of period $ 23,745 $ 2,865 Purchases 4,487 15,177 Transfers in/(out) 1 — 3,000 Unrealized gain included in earnings — 2,703 Assets at end of period $ 28,232 $ 23,745 (1) This represents the conversion from debt to equity securities on the Consolidated Balance Sheets as of September 30, 2022. 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 and Other noncurrent liabilities on the 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: (in thousands) 2023 2022 Liabilities at beginning of period $ 4,022 $ 2,996 Additions 500 1,500 Total gains or losses: Included in earnings 7,808 (224) Settlements 1 (2,875) (250) Liabilities at end of period $ 9,455 $ 4,022 (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 September 30, 2023 and 2022. The following information presents the supplemental fair value information for our long-term fixed-rate debt at September 30, 2023 and 2022: September 30, (in millions) 2023 2022 Long-term debt, net Carrying value 545.1 542.6 Fair value 435.5 430.7 The fair values of the long-term fixed-rate debt is based on broker quotes at September 30, 2023 and 2022. The notes are classified within Level 2 of the fair value hierarchy as they are not actively traded in markets. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Sep. 30, 2023 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | NOTE 13 EMPLOYEE BENEFIT PLANS We maintain a domestic noncontributory defined benefit pension plan covering certain U.S. employees who meet certain age and service requirements. In July 2003, we revised the Helmerich & Payne, Inc. Employee Retirement Plan (“Pension Plan”) to close the Pension Plan to new participants effective October 1, 2003, and reduce benefit accruals for current participants through September 30, 2006, at which time benefit accruals were discontinued and the Pension Plan was frozen. The following table provides a reconciliation of the changes in the pension benefit obligations and fair value of Pension Plan assets over the two-year period ended September 30, 2023 and a statement of the funded status as of September 30, 2023 and 2022: September 30, (in thousands) 2023 2022 Accumulated benefit obligation $ 54,646 $ 60,463 Changes in projected benefit obligations: Projected benefit obligation at beginning of year $ 60,463 $ 110,352 Interest cost 3,086 2,537 Actuarial gain (4,940) (16,260) Benefits paid (3,963) (36,166) Projected benefit obligation at end of year $ 54,646 $ 60,463 Change in plan assets: Fair value of plan assets at beginning of year $ 41,764 $ 87,255 Actual return on plan assets 979 (14,324) Employer contribution 5,000 5,000 Benefits paid (3,963) (36,167) Fair value of plan assets at end of year $ 43,780 $ 41,764 Funded status of the plan at end of year $ (10,866) $ (18,699) Fluctuations in actuarial gains and losses during the period are primarily due to changes in the discount rate and investment returns. The mortality table issued by the Society of Actuaries in October 2021 was used for the September 30, 2023 pension calculation. The net pension liability at September 30, 2023 and 2022 was $10.9 million and $18.7 million, respectively. Theses liabilities are recorded within other noncurrent liabilities in our Consolidated Balance Sheets. The net actuarial loss recognized in Accumulated other comprehensive income (loss) at September 30, 2023 and 2022, and not yet reflected in net periodic benefit cost, was $10.4 million and $15.7 million respectively. Unrecognized actuarial gains/losses outside of a corridor of the greater of: 1) 10 percent of the Projected Benefit Obligation, or 2) the fair value of assets, are amortized into expense for the year on a straight-line basis over the average remaining service years of participants. Amortization is not carried from year-to-year as the calculation resets each year. The weighted average assumptions used for the pension calculations were as follows: September 30, 2023 2022 2021 Discount rate for net periodic benefit costs 5.44 % 2.75 % 2.66 % Discount rate for year-end obligations 5.77 % 5.44 % 2.75 % Expected return on plan assets 4.50 % 4.25 % 3.50 % We made a voluntary contribution of $5.0 million during each fiscal year 2023, 2022, and 2021. In fiscal year 2024, we do not expect minimum contributions required by law to be needed. However, we may make contributions in fiscal year 2024 if needed to fund unexpected distributions in lieu of liquidating pension assets. Components of the net periodic pension expense were as follows: Year Ended September 30, (in thousands) 2023 2022 2021 Interest cost $ 3,086 $ 2,537 $ 2,925 Expected return on plan assets 1 (1,762) (2,481) (3,722) Recognized net actuarial loss 1,139 2,080 3,205 Settlement expense — 9,031 3,448 Other — — (81) Net pension expense $ 2,463 $ 11,167 $ 5,775 (1) The Company uses the fair value of plan assets in determining the expected return on plan assets. We record settlement expense when benefit payments exceed the total annual interest costs. During March 2022, the Company's domestic noncontributory defined benefit pension plan was amended to include a limited lump sum distribution option and a special eligibility window to be available to certain participants. During the period beginning on May 2, 2022 and ending on June 30, 2022, these participants could elect the limited lump sum distribution. This one-time lump sum was subsequently paid in August 2022 and resulted in a pension settlement charge of $7.8 million during the year ended September 30, 2022. The following table reflects the expected benefits to be paid from the Pension Plan in each of the next five fiscal years, and in the aggregate for the five years thereafter (in thousands): Year Ended September 30, 2024 2025 2026 2027 2028 2029 – 2033 Total $ 4,790 $ 5,698 $ 5,009 $ 5,114 $ 4,494 $ 21,168 $ 46,273 Investment Strategy and Asset Allocation Our investment policy and strategies are established with a long-term view in mind. The investment strategy is intended to help pay the cost of the Pension Plan while providing adequate security to meet the benefits promised under the Pension Plan. We maintain a diversified asset mix to minimize the risk of a material loss to the portfolio value that might occur from devaluation of any single investment. In determining the appropriate asset mix, our financial strength and ability to fund potential shortfalls are considered. Pension Plan assets are invested in portfolios of diversified public-market equity securities and fixed income securities. The Pension Plan does not directly hold securities of the Company. The expected long-term rate of return on Pension Plan assets is based on historical and projected rates of return for current and planned asset classes in the Pension Plan’s investment portfolio after analyzing historical experience and future expectations of the return and volatility of various asset classes. During the 2021 fiscal year, we implemented a glide-path strategy with a goal to reduce risk as certain funded levels are achieved and began aligning our fixed income exposure with our pension liabilities. The target allocation for 2024 and the asset allocation for the Pension Plan at the end of fiscal years 2023 and 2022, by asset category, were as follows: Target Allocation September 30, Asset Category 2024 2023 2022 U.S. equities 17 % 17 % 18 % International equities 12 12 11 Fixed income 71 71 71 Total 100 % 100 % 100 % Plan Assets The fair value of Pension Plan assets at September 30, 2023 and 2022, summarized by level within the fair value hierarchy described in Note 12—Fair Value Measurement of Financial Instruments, are as follows: September 30, 2023 (in thousands) Total Level 1 Level 2 Level 3 Short-term investments $ 1,018 $ 1,018 $ — $ — Mutual funds: Domestic stock funds 7,299 7,299 — — Bond funds 30,319 30,319 — — International stock funds 5,120 5,120 — — Total mutual funds 42,738 42,738 — — Oil and gas properties 24 — — 24 Total $ 43,780 $ 43,756 $ — $ 24 September 30, 2022 (in thousands) Total Level 1 Level 2 Level 3 Short-term investments $ 555 $ 555 $ — $ — Mutual funds: Domestic stock funds 7,318 7,318 — — Bond funds 29,093 29,093 — — International stock funds 4,739 4,739 — — Total mutual funds 41,150 41,150 — — Oil and gas properties 59 — — 59 Total $ 41,764 $ 41,705 $ — $ 59 As of September 30, 2023 and 2022, the Pension Plan’s financial assets utilizing Level 1 inputs are valued based on quoted prices in active markets for identical securities. As of September 30, 2023 and 2022, the Pension Plan’s assets utilizing Level 3 inputs consist of oil and gas properties. The fair value of oil and gas properties is determined by Wells Fargo Bank, N.A., based upon actual revenue received for the previous twelve-month period and experience with similar assets. Defined Contribution Plan Substantially all employees on the U.S. payroll may elect to participate in our 401(k)/Thrift Plan by contributing a portion of their earnings. We contribute an amount equal to 100 percent of the first five percent of the participant’s compensation subject to certain limitations. The annual expense incurred for this defined contribution plan was $25.8 million, $24.8 million and $13.6 million in fiscal years 2023, 2022 and 2021, respectively. |
SUPPLEMENTAL BALANCE SHEET INFO
SUPPLEMENTAL BALANCE SHEET INFORMATION | 12 Months Ended |
Sep. 30, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |
SUPPLEMENTAL BALANCE SHEET INFORMATION | NOTE 14 SUPPLEMENTAL BALANCE SHEET INFORMATION The following reflects the activity in our reserve for expected credit losses on trade receivables for fiscal years 2023, 2022 and 2021: Year Ended September 30, (in thousands) 2023 2022 2021 Reserve for credit losses: Balance at October 1, $ 2,975 $ 2,068 $ 1,820 Provision for credit loss 534 1,077 203 (Write-off) recovery of credit loss (821) (170) 45 Balance at September 30, $ 2,688 $ 2,975 $ 2,068 Accounts receivable, prepaid expenses and other current assets, net, accrued liabilities and noncurrent liabilities —other at September 30, 2023 and 2022 consist of the following: Year Ended September 30, (in thousands) 2023 2022 Accounts receivable, net of reserve: Trade receivables $ 403,091 $ 430,944 Income tax receivable 1,097 27,769 Total accounts receivable, net of reserve $ 404,188 $ 458,713 Prepaid expenses and other current assets, net: Deferred mobilization $ 7,873 $ 5,048 Prepaid insurance 11,160 7,498 Prepaid value added tax 7,867 6,628 Prepaid maintenance and rent 12,278 13,092 Accrued demobilization, net 6,560 6,319 Prepaid equipment 21,821 10,091 Insurance Recoverable 28,129 9,684 Other 2,039 8,103 Total prepaid expenses and other current assets, net $ 97,727 $ 66,463 Accrued liabilities: Accrued operating costs $ 20,618 $ 26,539 Payroll and employee benefits 55,596 58,604 Taxes payable, other than income tax 32,537 26,786 Self-insurance liabilities 60,921 38,422 Deferred income 23,441 19,821 Deferred mobilization revenue 10,247 8,959 Accrued income taxes 24,495 40,833 Contingent consideration 9,455 2,750 Operating lease liability 13,772 12,382 Other 11,803 6,055 Total accrued liabilities $ 262,885 $ 241,151 Noncurrent liabilities — Other: Pension and other non-qualified retirement plans $ 33,048 $ 40,423 Self-insurance liabilities 42,285 38,422 Contingent liability — 1,272 Deferred revenue 8,135 3,162 Uncertain tax positions including interest and penalties 3,136 2,381 Operating lease liability 41,038 27,350 Other 487 1,917 Total noncurrent liabilities — other $ 128,129 $ 114,927 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 15 COMMITMENTS AND CONTINGENCIES Purchase Commitments Equipment, parts and supplies are ordered in advance to promote efficient construction and capital improvement progress. At September 30, 2023, we had purchase commitments for equipment, parts and supplies of approximately $130.7 million. Lease Obligations Refer to Note 4—Leases for additional information on our lease obligations. 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, we are currently unable to determine the timing or amounts we may receive, if any, or the likelihood of recovery. In May 2018, an employee of our subsidiary, HPIDC, was involved in a car accident in his personal vehicle while not clocked in for work. The accident resulted in a fatality of a passenger in the other vehicle. The estate of the victim, his widow and children subsequently brought a lawsuit against the employee and HPIDC in Texas State District Court in January 2020. In July 2023, the Plaintiff and our insurer agreed on a settlement of $19.5 million. This amount is within our insurance coverage limits, thus we did not incur expenses in excess of our $3.0 million deductible. The Company and its subsidiaries are parties to various other pending legal actions arising in the ordinary course of our business. We maintain insurance against certain business risks subject to certain deductibles. Although no assurance can be given, we believe, based on our experiences to date and taking into account established reserves and insurance, that the ultimate resolution of such items will not have a material adverse impact on our financial condition, cash flows, or results of operations. When we determine a loss is probable of occurring and is reasonably estimable, we accrue an undiscounted liability for such contingencies based on our best estimate using information available at that time. If the estimated loss is a range of potential outcomes and there is no better estimate within the range, we accrue the amount at the low end of the range. We disclose contingencies where an adverse outcome may be material, or in the judgment of management, we conclude the matter should otherwise be disclosed. |
BUSINESS SEGMENTS AND GEOGRAPHI
BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION | 12 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION | NOTE 16 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 or 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 • Restructuring charges but excludes gain on reimbursement of drilling equipment, other (gain) loss on sale of assets, corporate selling, general and administrative costs, corporate depreciation, and corporate restructuring charges. 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 fiscal years ended September 30, 2023, 2022 and 2021 is shown in the following tables: September 30, 2023 (in thousands) North America Solutions Offshore Gulf of Mexico International Solutions Other Eliminations Total External sales $ 2,519,743 $ 130,244 $ 212,566 $ 9,868 $ — $ 2,872,421 Intersegment — — — 67,428 (67,428) — Total sales 2,519,743 130,244 212,566 77,296 (67,428) 2,872,421 Segment operating income (loss) 625,467 22,806 (891) 15,876 4,671 667,929 Depreciation and amortization 353,976 7,622 7,615 2,014 — 371,227 September 30, 2022 (in thousands) North America Solutions Offshore Gulf of Mexico International Solutions Other Eliminations Total External sales $ 1,788,167 $ 125,465 $ 136,072 $ 9,240 $ — $ 2,058,944 Intersegment — — — 57,047 (57,047) — Total sales 1,788,167 125,465 136,072 66,287 (57,047) 2,058,944 Segment operating income (loss) 121,893 23,214 (138) 12,720 (6,422) 151,267 Depreciation and amortization 375,250 9,175 4,156 1,701 — 390,282 September 30, 2021 (in thousands) North America Solutions Offshore Gulf of Mexico International Solutions Other Eliminations Total External sales $ 1,026,364 $ 126,399 $ 57,917 $ 7,888 $ — $ 1,218,568 Intersegment — — — 35,416 (35,416) — Total sales 1,026,364 126,399 57,917 43,304 (35,416) 1,218,568 Segment operating income (loss) (287,176) 15,969 (21,003) (9,704) (1,580) (303,494) Depreciation and amortization 392,415 10,557 2,013 1,426 — 406,411 The following table reconciles segment operating income (loss) per the tables above to income (loss) before income taxes as reported on the Consolidated Statements of Operations: Year Ended September 30, (in thousands) 2023 2022 2021 Segment operating income (loss) $ 667,929 $ 151,267 $ (303,494) Gain on reimbursement of drilling equipment 48,173 29,443 12,322 Other gain (loss) on sale of assets (8,016) 5,432 (11,280) Corporate selling, general and administrative costs, corporate depreciation and corporate restructuring charges (146,197) (140,850) (126,097) Operating income (loss) 561,889 45,292 (428,549) Other income (expense) Interest and dividend income 28,393 18,090 10,254 Interest expense (17,283) (19,203) (23,955) Gain on investment securities 11,299 57,937 6,727 Loss on extinguishment of debt — (60,083) — Other 9,081 (10,714) 5,652 Total unallocated amounts 31,490 (13,973) (1,322) Income (loss) before income taxes $ 593,379 $ 31,319 $ (429,871) The following table reconciles segment total assets to total assets as reported on the Consolidated Balance Sheets: Year Ended September 30, (in thousands) 2023 2022 Total assets 1 North America Solutions $ 3,320,203 $ 3,406,824 Offshore Gulf of Mexico 73,319 80,993 International Solutions 407,143 330,974 Other 154,290 120,305 3,954,955 3,939,096 Investments and corporate operations 427,001 416,435 Total assets $ 4,381,956 $ 4,355,531 (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: Year Ended September 30, (in thousands) 2023 2022 2021 Operating revenues United States $ 2,656,617 $ 1,920,026 $ 1,158,230 Argentina 137,420 91,385 27,855 Colombia 46,720 22,003 1,674 Bahrain 15,401 16,986 27,435 United Arab Emirates 9,716 5,698 957 Australia 3,350 — — Other foreign 3,197 2,846 2,417 Total $ 2,872,421 $ 2,058,944 $ 1,218,568 The following table presents property, plant and equipment by country based on the location of service provided: Year Ended September 30, (in thousands) 2023 2022 Property, plant and equipment, net United States $ 2,813,707 $ 2,872,145 Argentina 57,168 54,789 Colombia 20,835 21,809 Australia 10,673 — United Arab Emirates 10,373 3,024 Other foreign 8,939 9,042 Total $ 2,921,695 $ 2,960,809 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 17 SUBSEQUENT EVENTS On October 17, 2023, the Board of Directors of the Company declared a quarterly cash supplemental dividend of $0.17 per share on the Company’s common stock, payable on December 4, 2023, to stockholders of record at the close of business on November 20, 2023. The payable date and record date of this supplemental dividend coincides with the dates applicable to the Company’s base dividend of $0.25 per share, which was declared on September 6, 2023. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ 434,100 | $ 6,953 | $ (326,150) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 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) | 12 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). |
Principles of Consolidation | Principles of ConsolidationThe 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 Consolidated Statements of Operations and 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. |
Foreign Currencies | Foreign CurrenciesOur functional currency, together with all our foreign subsidiaries, is the U.S. dollar. Monetary assets and liabilities denominated in currencies other than the U.S. dollar are translated at exchange rates in effect at the end of the period, and the resulting gains and losses are recorded on our Consolidated Statements of Operations. |
Use of Estimates | Use of Estimates The preparation of our financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
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. |
Accounts Receivable | Accounts ReceivableAccounts receivable represents valid claims against our customers for our services rendered, net of allowances for credit losses. We perform credit evaluations of customers and do not typically require collateral in support for trade receivables. We provide an allowance for credit losses, when necessary, to cover estimated credit losses. Outstanding customer receivables are reviewed regularly for possible nonpayment indicators. We estimate expected credit losses over the life of our financial assets, which primarily consist of our accounts receivable. We evaluate our customers’ financial strength and liquidity based on aging of accounts receivable, payment history, and other relevant information, including ratings agency, credit ratings and alerts, and publicly available reports. |
Inventories of Materials and Supplies | Inventories of Materials and SuppliesInventories are primarily replacement parts and supplies held for consumption in our drilling operations. Inventories are valued at the lower of cost or net realizable value. Cost is determined on a weighted average basis and includes the cost of materials, shipping, duties and labor. Net realizable value is defined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. |
Investments | InvestmentsWe maintain strategic investments in equity and debt securities of certain publicly traded and private companies together with short-term investments to manage liquidity in U.S. government, federal agency and corporate debt securities. We recognize our equity securities that have readily determinable fair values at fair value, with changes in such values reflected in net income. Our equity securities without readily determinable fair values are measured at cost, less any impairments and marked to fair value once observable changes in identical or similar investments from the same issuer occur. Debt securities classified as available-for-sale are reported at fair value and subject to impairment testing. Other than impairment losses, unrealized gains/losses are recognized, net of the related tax effect, in other comprehensive income. Upon sale, realized gains/losses are reported in net income. |
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, a publicly traded company on the Australian Securities Exchange Ltd under the ticker "TBN." Tamboran is focused on playing a constructive role in the global energy transition towards a lower carbon future, by developing a significantly low CO 2 gas resource within Australia's Beetaloo Sub-basin. Refer to Note 12—Fair Value Measurement of Financial Instruments for additional information related to our investment. |
Property, Plant, and Equipment | Property, Plant, and Equipment Property, plant and equipment are carried at cost less accumulated depreciation. Substantially all property, plant and equipment are depreciated using the straight-line method based on the estimated useful lives of the assets after deducting their salvage values. The amount of depreciation expense we record is dependent upon certain assumptions, including an asset’s estimated useful life, rate of consumption, and corresponding salvage value. We periodically review these assumptions and may change one or more of these assumptions. Changes in our assumptions may require us to recognize, on a prospective basis, increased or decreased depreciation expense. We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Changes that could prompt such an assessment include a significant decline in revenue or cash margin per day, extended periods of low rig asset group utilization, changes in market demand for a specific asset, obsolescence, restructuring of our drilling fleet, and/or overall general market conditions. If the review of the long-lived assets indicates that the carrying value of these assets/asset groups is more than the estimated undiscounted future cash flows projected to be realized from the use of the asset and its eventual disposal an impairment charge is recognized, as required, to adjust the carrying value down to the estimated fair value of the asset. The estimated fair value is determined based upon either an income approach using estimated discounted future cash flows, a market approach considering factors such as recent market sales of rigs of other companies and our own sales of rigs, appraisals and other factors, a cost approach utilizing reproduction costs new as adjusted for the asset age and condition, and/or a combination of multiple approaches. Cash flows are estimated by management considering factors such as prospective market demand, margins, recent changes in rig technology and its effect on each rig’s marketability, any investment required to make a rig operational, suitability of rig size and make up to existing platforms, and competitive dynamics including industry utilization. Long-lived assets that are held for sale are recorded at the lower of carrying value or the fair value less costs to sell. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill represents the excess of the purchase price over the fair value of assets acquired and liabilities assumed in a business combinat ion, 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 of each fiscal year or when it is more likely than not that the carrying value may exceed fair value. If an impairment is determined to exist, an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value is recognized, limited to the total amount of goodwill allocated to that reporting unit. The reporting unit level is defined as an operating segment or one level below an operating segment. Finite-lived intangible assets are amortized using |
Drilling Revenues | Drilling Revenues Drilling services revenues are primarily comprised of daywork drilling contracts for which the related revenues and expenses are recognized as services are performed and collection is reasonably assured. For certain contracts, we receive payments contractually designated for the mobilization of rigs and other drilling equipment. Revenues associated with mobilization and demobilization and direct costs incurred for the mobilization, are deferred and recognized on a straight-line basis as the drilling service is provided. Costs incurred to relocate rigs and other drilling equipment to areas in which a contract has not been secured are expensed as incurred. Reimbursements received for out-of-pocket expenses are recorded as both revenues and direct costs. Reimbursements for fiscal years 2023, 2022 and 2021 were $345.5 million, $263.1 million and $148.0 million, respectively. For fixed-term contracts that are terminated by customers prior to the expirations, 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. Early termination revenue for fiscal years 2023, 2022 and 2021 was approximately $2.3 million, $0.7 million and $7.7 million, respectively. |
Income Taxes | Income Taxes Current income tax expense is the amount of income taxes expected to be payable for the current fiscal year. Deferred income taxes are computed using the liability method and are provided on all temporary differences between the financial basis and the tax basis of our assets and liabilities. |
Earnings per Common Share | Earnings per Common Share 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 nonvested restricted stock and performance share units. 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 Accounting Standards Codification ("ASC") 260, Earnings Per Share . As such, we have included these grants in the calculation of our basic earnings per share. |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense is determined using a fair-value-based measurement method for all awards granted. The fair value of restricted stock awards is determined based on the closing price of our shares on the grant date. The grant date fair value of performance share units is determined through the use of the Monte Carlo simulation method. The Monte Carlo simulation method requires the use of highly subjective assumptions. Our key assumptions in the method include the price and the expected volatility of our stock and our self-determined peer group of companies’ (the "Peer Group") stock, risk free rate of return, dividend yields and cross-correlations between the Company and our Peer Group. |
Treasury Stock | Treasury Stock Treasury stock purchases are accounted for under the cost method whereby the cost of the acquired stock is recorded as treasury stock. Gains and losses on the subsequent reissuance of shares are credited or charged to additional paid-in capital using the average-cost method. Treasury stock may be issued under the Helmerich & Payne, Inc. Amended and Restated 2020 Omnibus Incentive Plan. |
Comprehensive Income or Loss | Comprehensive Income or LossOther comprehensive income or loss refers to revenues, expenses, gains, and losses that are included in comprehensive income or loss but excluded from net income or loss. We report the components of other comprehensive income or loss, net of tax, by their nature and disclose the tax effect allocated to each component in the Consolidated Statements of Comprehensive Income (Loss). |
Leases | Leases We lease various offices, warehouses, equipment and vehicles. Rental contracts are typically made for fixed periods of one Leases are recognized as a right-of-use asset and a corresponding liability within accrued liabilities and other non-current liabilities at the date at which the leased asset is available for use by the Company. Operating lease expense is recognized on a straight-line basis over the life of the lease. The right-of-use asset is depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis for finance type leases. Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments: • Fixed payments (including in-substance fixed payments), less any lease incentives receivable • Variable lease payments that are based on an index or a rate • Amounts expected to be payable by the lessee under residual value guarantees • The exercise price of a purchase option if the lessee is reasonably certain to exercise that option, and • Payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be determined, our incremental borrowing rate is used, which is the rate that we would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions. Right-of-use assets are measured at cost and are comprised of the following: • The amount of the initial measurement of lease liability • Any lease payments made at or before the commencement date less any lease incentives received • Any initial direct costs, and • Asset retirement obligations related to that lease, as applicable. Payments associated with short-term leases are recognized on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less. |
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 recently adopted accounting pronouncements and our analysis of the effects on our financial statements: Standard Description Date of Effect on the Financial Recently Adopted Accounting Pronouncements ASU No. 2020-06, Debt with conversion and other options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s own equity (subtopic 815-40): Accounting for Convertible Instruments and Contracts In An Entity’s Own Equity This ASU reduces the complexity of accounting for convertible debt and other equity-linked instruments by reducing the number of accounting models for convertible debt instruments and convertible preferred stock. Limiting the accounting models results in fewer embedded conversion features being separately recognized from the host contract as compared with current GAAP. Convertible instruments that continue to be subject to separation models are (1) those with embedded conversion features that are not clearly and closely related to the host contract, that meet the definition of a derivative, and that do not qualify for a scope exception from derivative accounting and (2) convertible debt instruments issued with substantial premiums for which the premiums are recorded as paid-in capital. This update is effective for annual and interim periods beginning after December 15, 2021. October 1, 2022 We adopted this ASU, as required, during the first quarter of fiscal year 2023. The adoption did not have a material effect on our Consolidated Financial Statements and disclosures. ASU No. 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions The amendments in this update clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value (i.e., the entity would not apply a discount related to the contractual sale restriction). Furthermore, an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. The following disclosures for equity securities subject to contractual sale restrictions will be required: (1) the fair value of the equity securities subject to contractual sale restrictions reflected in the balance sheet, (2) the nature and remaining duration of the restriction(s), and (3) the circumstances that could cause a lapse in the restriction(s). This update is effective for annual and interim periods beginning after December 15, 2023. October 1, 2022 We early adopted this ASU during the first quarter of fiscal year 2023. The adoption did not have a material effect on our Consolidated Financial Statements and disclosures. |
Allowance for Credit Losses | Allowance for Credit Losses We establish an allowance for credit losses of our financial assets, which consists primarily of our accounts receivable, through a review of several factors, including historical collection experience, current aging status of the customer accounts, and current financial strength and liquidity of our customers. We review relevant information from the ratings agency, credit ratings and alerts, and publicly available reports. Losses are charged against the allowance when the customer accounts are determined to be uncollectible. |
Concentration of Credit Risk | Concentration of Credit RiskFinancial instruments, which potentially subject us to concentrations of credit risk, consist primarily of temporary cash investments, short and long-term investments, and trade receivables. The industry concentration has the potential to impact our overall exposure to market and credit risks, either positively or negatively, in that our customers could be affected by similar changes in economic, industry or other conditions. However, we believe that the credit risk posed by this industry concentration is offset by the creditworthiness of our customer base. We place temporary cash investments in the United States with established financial institutions and primarily invest in a diversified portfolio of highly rated, short-term instruments. Our trade receivables, primarily with established companies in the oil and gas industry, may impact credit risk as customers may be similarly affected by prolonged changes in economic and industry conditions. International sales also present various risks including governmental activities that may limit or disrupt markets and restrict the movement of funds. Most of our international sales, however, are to large international, majority state-owned, or government-owned national oil companies. |
Volatility of Market | Volatility of Market Our operations can be materially affected by oil and gas prices. Oil and natural gas prices have been historically volatile and difficult to predict with any degree of certainty. While current energy prices are important contributors to positive cash flow for customers, expectations about future prices and price volatility are generally more important for determining a customer’s future spending levels. This volatility, along with the difficulty in predicting future prices, can lead many exploration and production companies to base their capital spending on more conservative estimates of commodity prices. As a result, demand for drilling services is not always purely a function of the movement of commodity prices. In addition, customers may finance their exploration activities through cash flow from operations, the incurrence of debt or the issuance of equity. Any deterioration in the credit and capital markets may cause difficulty for customers to obtain funding for their capital needs. A reduction of cash flow resulting from declines in commodity prices or a reduction of available financing may result in a reduction in customer spending and the demand for our services. This reduction in spending could have a material adverse effect on our operations. |
Segment Reporting for Self-Insurance | Self-Insurance We self-insure a significant portion of expected losses relating to workers’ compensation, general liability and automobile liability. Generally, deductibles range from $1 million to $10 million per occurrence depending on the coverage and whether a claim occurs outside or inside of the United States. Insurance is purchased over deductibles to reduce our exposure to catastrophic events. Estimates are recorded for incurred outstanding liabilities for workers’ compensation, general, and automobile liability claims that are incurred but not reported. Estimates are based on adjusters’ estimates, historical experience and statistical methods commonly used within the insurance industry that we believe are reliable. Insurance recoveries related to such liabilities are recorded when considered probable. We have also engaged a third-party actuary to perform a review of our casualty losses as well as losses in our captive insurance companies. Nonetheless, insurance estimates include certain assumptions and management judgments regarding the frequency and severity of claims, claim development and settlement practices. Unanticipated changes in these factors may produce materially different amounts of expense that would be reported under these programs. The Company also self-insures employee health plan exposures in excess of employee deductibles. This program is also reviewed at the end of each policy year by a third-party actuary. |
International Solutions Drilling Risks | International Solutions Drilling Risks International Solutions drilling operations may significantly contribute to our revenues and net operating income (loss). 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 Argentine branch of one of our second-tier subsidiaries remits U.S. dollars to its U.S. parent by converting the Argentine pesos into U.S. dollars through the Argentine Foreign Exchange Market and repatriating the U.S. dollars. Argentina also has a history of implementing currency controls that restrict the conversion and repatriation of U.S. dollars. In September 2020, Argentina implemented additional currency controls in an effort to preserve Argentina's U.S. dollar reserves. As a result of these currency controls, our ability to remit funds from our Argentine subsidiary to its U.S. parent has been limited. 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. Nonetheless, 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 $6.4 million, $5.9 million, and $5.3 million during the fiscal years ended September 30, 2023, 2022, and 2021 respectively. The Central Bank of Argentina maintains currency controls that limit our ability to access U.S. dollars in Argentina and remit cash from our Argentine operations. The execution of certain trades known as Blue Chip Swaps effectively results in a parallel U.S. dollar exchange rate. During the fiscal year ended 2023, we entered into a Blue Chip Swap transaction, which resulted in a $12.2 million loss on investment recorded in Gain on investment securities within our Consolidated Statements of Operations. As a result of the Blue Chip Swap transaction, $9.8 million of net cash was repatriated to the U.S. during the period. 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. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, RELATED RISKS AND UNCERTAINTIES (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Cash and Cash Equivalents | Cash, cash equivalents, and restricted cash are reflected on the Consolidated Balance Sheets as follows: September 30, (in thousands) 2023 2022 2021 Cash and cash equivalents $ 257,174 $ 232,131 $ 917,534 Restricted cash 59,064 36,246 18,350 Restricted cash - long-term: Other assets, net — 632 832 Total cash, cash equivalents, and restricted cash $ 316,238 $ 269,009 $ 936,716 |
Schedule of Restricted Cash and Cash Equivalents | Cash, cash equivalents, and restricted cash are reflected on the Consolidated Balance Sheets as follows: September 30, (in thousands) 2023 2022 2021 Cash and cash equivalents $ 257,174 $ 232,131 $ 917,534 Restricted cash 59,064 36,246 18,350 Restricted cash - long-term: Other assets, net — 632 832 Total cash, cash equivalents, and restricted cash $ 316,238 $ 269,009 $ 936,716 |
Schedule of Description of Recent Accounting Pronouncements and Analysis of the Effects on the Financial Statements | The following table provides a brief description of recently adopted accounting pronouncements and our analysis of the effects on our financial statements: Standard Description Date of Effect on the Financial Recently Adopted Accounting Pronouncements ASU No. 2020-06, Debt with conversion and other options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s own equity (subtopic 815-40): Accounting for Convertible Instruments and Contracts In An Entity’s Own Equity This ASU reduces the complexity of accounting for convertible debt and other equity-linked instruments by reducing the number of accounting models for convertible debt instruments and convertible preferred stock. Limiting the accounting models results in fewer embedded conversion features being separately recognized from the host contract as compared with current GAAP. Convertible instruments that continue to be subject to separation models are (1) those with embedded conversion features that are not clearly and closely related to the host contract, that meet the definition of a derivative, and that do not qualify for a scope exception from derivative accounting and (2) convertible debt instruments issued with substantial premiums for which the premiums are recorded as paid-in capital. This update is effective for annual and interim periods beginning after December 15, 2021. October 1, 2022 We adopted this ASU, as required, during the first quarter of fiscal year 2023. The adoption did not have a material effect on our Consolidated Financial Statements and disclosures. ASU No. 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions The amendments in this update clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value (i.e., the entity would not apply a discount related to the contractual sale restriction). Furthermore, an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. The following disclosures for equity securities subject to contractual sale restrictions will be required: (1) the fair value of the equity securities subject to contractual sale restrictions reflected in the balance sheet, (2) the nature and remaining duration of the restriction(s), and (3) the circumstances that could cause a lapse in the restriction(s). This update is effective for annual and interim periods beginning after December 15, 2023. October 1, 2022 We early adopted this ASU during the first quarter of fiscal year 2023. The adoption did not have a material effect on our Consolidated Financial Statements and disclosures. |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment as of September 30, 2023 and 2022 consisted of the following: (in thousands) Estimated Useful Lives September 30, 2023 September 30, 2022 Drilling services equipment 4 - 15 years $ 6,396,612 $ 6,369,888 Tubulars 4 years 564,032 569,496 Real estate properties 10 - 45 years 47,313 45,557 Other 2 - 23 years 443,366 422,479 Construction in progress 1 97,374 70,119 7,548,697 7,477,539 Accumulated depreciation (4,627,002) (4,516,730) Property, plant and equipment, net $ 2,921,695 $ 2,960,809 Assets held-for-sale $ 645 $ 4,333 (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. |
Schedule of Assets Held-for-Sale | The following table is a summary of the changes in the balance (in thousands) of our assets held-for-sale at the dates indicated below: Balance at September 30, 2021 $ 71,453 Plus: Asset additions 2,580 Less: Sale of assets held-for-sale (67,592) Reclassification to assets held and used (2,108) Balance at September 30, 2022 4,333 Plus: Asset additions 1,177 Less: Sale of assets held-for-sale (2,132) Impairment Expense (2,733) Balance at September 30, 2023 $ 645 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Schedule of Lease Position and Recognized Right-of-Use Assets | Lease Position (in thousands) September 30, 2023 September 30, 2022 Operating lease commitments, including probable extensions 1 $ 65,970 $ 44,769 Discounted using the lessee's incremental borrowing rate $ 55,894 $ 41,002 (Less): short-term leases recognized on a straight-line basis as expense (877) (1,052) (Less): other (207) (218) Lease liability recognized $ 54,810 $ 39,732 Of which: Current lease liabilities $ 13,772 $ 12,382 Non-current lease liabilities 41,038 27,350 (1) Our future minimal rental payments exclude optional extensions that have not been exercised but are probable to be exercised in the future, those probable extensions are included in the operating lease liability balance. The recognized right-of-use assets relate to the following types of assets: (in thousands) September 30, 2023 September 30, 2022 Properties $ 50,080 $ 38,925 Equipment 318 125 Other 2 14 Total right-of-use assets $ 50,400 $ 39,064 |
Schedule of Certain Information Related to Lease Costs and Other Information Related to Operating Leases | The following table presents certain information related to the lease costs for our operating leases: Year ended September 30, (in thousands) 2023 2022 Operating lease cost $ 11,004 $ 9,687 Short-term lease cost 1,437 1,546 Total lease cost $ 12,441 $ 11,233 Lease Terms and Discount Rates The table below presents certain information related to the weighted average remaining lease terms and weighted average discount rates for our operating leases: September 30, 2023 September 30, 2022 Weighted average remaining lease term 7.6 5.9 Weighted average discount rate 3.6 % 2.5 % |
Schedule of Future Minimum Rental Payments Required under Operating Lease | Future minimum rental payments required under operating leases having initial or remaining non-cancelable lease terms in excess of one year at September 30, 2023 (in thousands) are as follows: Fiscal Year Amount 2024 $ 10,534 2025 7,552 2026 5,390 2027 5,055 2028 4,499 Thereafter 21,391 Total 1 $ 54,421 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets Arising from Business Acquisitions | Intangible assets consisted of the following: September 30, 2023 September 30, 2022 (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 $ 34,092 $ 55,004 $ 89,096 $ 28,137 $ 60,959 Intellectual property 13 years 2,000 503 1,497 2,000 328 1,672 Trade name 20 years 5,865 1,791 4,074 5,865 1,475 4,390 Customer relationships 5 years 4,000 4,000 — 4,000 3,867 133 $ 100,961 $ 40,386 $ 60,575 $ 100,961 $ 33,807 $ 67,154 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Sep. 30, 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: September 30, 2023 September 30, 2022 (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 $ (4,856) $ 545,144 $ 550,000 $ (7,390) $ 542,610 Long-term debt $ 550,000 $ (4,856) $ 545,144 $ 550,000 $ (7,390) $ 542,610 |
Schedule of Aggregate Maturities of Long-Term Debt | At September 30, 2023, aggregate maturities of long-term debt are as follows (in thousands): Year ending September 30, 2024 $ — 2025 — 2026 — 2027 — 2028 — Thereafter - Due 2031 550,000 $ 550,000 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of the Provision (Benefit) for Income Taxes | The components of the provision (benefit) for income taxes are as follows: Year Ended September 30, (in thousands) 2023 2022 2021 Current: Federal $ 150,273 $ 40,245 $ (15,466) Foreign 12,883 10,703 772 State 16,523 1,906 725 179,679 52,854 (13,969) Deferred: Federal (20,337) (32,382) (81,760) Foreign (1,254) (1,310) 4,106 State 1,191 5,204 (12,098) (20,400) (28,488) (89,752) Total provision (benefit) $ 159,279 $ 24,366 $ (103,721) |
Schedule of Domestic and Foreign Income (Loss) before Income Taxes | The amounts of domestic and foreign income (loss) before income taxes are as follows: Year Ended September 30, (in thousands) 2023 2022 2021 Domestic $ 584,891 $ (14,411) $ (412,556) Foreign 8,488 45,730 (17,315) $ 593,379 $ 31,319 $ (429,871) |
Schedule of Effective Income Tax Rates as Compared to the U.S. Federal Income Tax Rate | The reconciliation of our effective income tax rates to the U.S. Federal income tax rate is as follows: Year Ended September 30, 2023 2022 2021 U.S. Federal income tax rate 21.0 % 21.0 % 21.0 % Effect of foreign taxes 2.1 31.3 0.1 State income taxes, net of federal tax benefit 2.4 21.4 2.7 Other impact of foreign operations 0.2 3.2 0.5 Non-deductible meals and entertainment 0.6 1.0 (0.1) Equity compensation (0.1) 9.5 (0.8) Excess officer's compensation 0.4 3.7 — Foreign derived intangible income — (13.7) — Other 0.2 0.4 0.7 Effective income tax rate 26.8 % 77.8 % 24.1 % |
Schedule of Components of Net Deferred Tax Liabilities | The components of our net deferred tax liabilities are as follows: September 30, (in thousands) 2023 2022 Deferred tax liabilities: Property, plant and equipment $ 532,827 $ 558,293 Marketable securities 14,626 9,766 Other 27,980 24,460 Total deferred tax liabilities 575,433 592,519 Deferred tax assets: Pension reserves 3,083 4,811 Self-insurance reserves 6,235 7,333 Net operating loss, foreign tax credit, and other federal tax credit carryforwards 6,770 8,673 Financial accruals 29,449 31,022 Other 21,647 13,678 Total deferred tax assets 67,184 65,517 Valuation allowance (9,560) (10,710) Net deferred tax assets 57,624 54,807 Net deferred tax liabilities $ 517,809 $ 537,712 |
Schedule of Reconciliation of the Change in Gross Unrecognized Tax Benefits | A reconciliation of the change in our gross unrecognized tax benefits are as follows: (in thousands) 2023 2022 2021 Unrecognized tax benefits at October 1, $ 960 $ 1,678 $ 13,440 Gross decreases - current period effect of tax positions (534) (718) (11,648) Gross increases - current period effect of tax positions 6 — — Expiration of statute of limitations for assessments (185) — (114) Unrecognized tax benefits at September 30, $ 247 $ 960 $ 1,678 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Components of Accumulated Other Comprehensive Income (Loss) | Components of accumulated other comprehensive loss were as follows: September 30, (in thousands) 2023 2022 2021 Pre-tax amounts: Unrealized actuarial loss $ (10,407) $ (15,703) $ (26,268) $ (10,407) $ (15,703) $ (26,268) After-tax amounts: Unrealized actuarial loss $ (7,981) $ (12,072) $ (20,244) $ (7,981) $ (12,072) $ (20,244) |
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) | The following is a summary of the changes in accumulated other comprehensive loss, net of tax, for the fiscal year ended September 30, 2023: (in thousands) Defined Benefit Pension Plan Balance at September 30, 2022 $ (12,072) Activity during the period Amounts reclassified from accumulated other comprehensive loss 4,091 Net current-period other comprehensive income 4,091 Balance at September 30, 2023 $ (7,981) |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contract Assets and Liabilities | The following table summarizes the balances of our contract assets (net of allowance for estimated credit losses) and liabilities at the dates indicated: (in thousands) September 30, 2023 September 30, 2022 Contract assets, net $ 6,560 $ 6,319 (in thousands) Contract liabilities balance at October 1, 2021 $ 9,286 Payment received/accrued and deferred 58,202 Revenue recognized during the period (46,842) Contract liabilities balance at September 30, 2022 20,646 Payment received/accrued and deferred 76,756 Revenue recognized during the period (68,520) Contract liabilities balance at September 30, 2023 $ 28,882 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Compensation Cost for Stock-Based Payment Arrangements | A summary of compensation cost for stock-based payment arrangements recognized in Drilling services operating expense, Research and development expense and Selling, general and administrative expense on our Consolidated Statements of Operations is as follows: September 30, (in thousands) 2023 2022 2021 Stock-based compensation expense Drilling services operating $ 5,919 $ 5,142 $ 5,927 Research and development 1,905 1,551 1,271 Selling, general and administrative 24,632 21,339 20,660 $ 32,456 $ 28,032 $ 27,858 |
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 September 30, 2023, and of changes in restricted stock outstanding during the fiscal years ended September 30, 2023, 2022 and 2021, is as follows: 2023 2022 2021 (shares in thousands) Shares 1 Weighted-Average Grant Date Fair Value per Share Shares 1 Weighted-Average Grant Date Fair Value per Share Shares 1 Weighted-Average Grant Date Fair Value per Share Non-vested restricted stock outstanding as of the beginning of period 1,493 $ 30.85 1,412 $ 37.36 1,280 $ 49.81 Granted 592 44.48 744 25.83 701 25.61 Vested 2 (708) 33.95 (610) 39.81 (534) 51.79 Forfeited (15) 36.25 (53) 30.98 (35) 35.76 Non-vested restricted stock outstanding at September 30, 1,362 $ 35.11 1,493 $ 30.85 1,412 $ 37.36 (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 fiscal years ended September 30, 2023, 2022, and 2021, 12,591, 14,199, and 18,906 restricted phantom stock units were granted, respectively, and 14,199, 18,906 and 20,616 restricted phantom stock units vested, respectively. (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 units and changes in non-vested performance units outstanding is presented below: 2023 2022 2021 (in thousands, except per share amounts) Shares Weighted-Average Grant Date Fair Value per Share Shares Weighted-Average Grant Date Fair Value per Share Shares Weighted-Average Grant Date Fair Value per Share Non-vested performance units outstanding as of the beginning of period 726 $ 33.67 699 $ 41.55 337 $ 51.09 Granted 144 54.30 227 30.12 313 29.77 Vested 1 (286) 43.40 (161) 62.66 — — Dividend equivalent rights credited and performance factor adjustment 2 212 35.94 15 32.82 60 49.64 Forfeited — — (54) 34.16 (11) 43.40 Non-vested performance units outstanding September 30, 3 796 $ 34.51 726 $ 33.67 $ 699 $ 41.55 (1) The number of performance units vested includes units that we withheld on behalf of our employees to satisfy the statutory tax withholding requirements. (2) 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. (3) Of the total non-vested performance units at the end of the period, specified performance criteria has been achieved with respect to 233,322 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 maximum performance criteria, approximately 412,046 additional performance units could vest or become eligible to vest. |
Schedule of Weighted-Average Assumptions Used in Calculation of Fair Value of Awards | The weighted-average fair value calculations for performance units granted within the fiscal period are based on the following weighted-average assumptions set forth in the table below. 2023 2022 2021 Risk-free interest rate 1 4.1 % 1.0 % 0.2 % Expected stock volatility 2 71.6 % 67.3 % 62.3 % Expected term (in years) 3 3 3 (1) The risk-free interest rate is based on U.S. Treasury securities for the expected term of the performance units. (2) Expected volatilities are based on the daily closing price of our stock based upon historical experience over a period which approximates the expected term of the performance units. |
EARNINGS (LOSS) PER COMMON SH_2
EARNINGS (LOSS) PER COMMON SHARE (Tables) | 12 Months Ended |
Sep. 30, 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 (loss) per share: September 30, (in thousands, except per share amounts) 2023 2022 2021 Numerator: Net income (loss) $ 434,100 $ 6,953 $ (326,150) Adjustment for basic earnings (loss) per share: Earnings allocated to unvested shareholders (5,863) (1,508) (1,350) Numerator for basic earnings (loss) per share 428,237 5,445 (327,500) Adjustment for diluted earnings (loss) per share: Effect of reallocating undistributed earnings of unvested shareholders 12 — — Numerator for diluted earnings (loss) per share $ 428,249 $ 5,445 $ (327,500) Denominator: Denominator for basic earnings (loss) per share - weighted-average shares 102,447 105,891 107,818 Effect of dilutive shares from restricted stock and performance share units 405 664 — Denominator for diluted earnings (loss) per share - adjusted weighted-average shares 102,852 106,555 107,818 Basic earnings (loss) per common share $ 4.18 $ 0.05 $ (3.04) Diluted earnings (loss) per common share $ 4.16 $ 0.05 $ (3.04) |
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 (loss) per share because their inclusion would have been anti-dilutive: (in thousands, except per share amounts) 2023 2022 2021 Potentially dilutive shares excluded as anti-dilutive 2,451 2,543 3,894 Weighted-average price per share $ 62.08 $ 62.36 $ 57.23 |
FAIR VALUE MEASUREMENT OF FIN_2
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measurements, Recurring and Nonrecurring | 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. 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 was $25.2 million. None of these investment 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 was $3.0 million, of which $2.4 million is marked to fair value. The remaining $0.6 million is measured at cost, less any impairments. September 30, 2022 (in thousands) Fair Value Level 1 Level 2 Level 3 Assets Short-term investments: Corporate debt securities $ 98,264 $ — $ 98,264 $ — U.S. government and federal agency securities 18,837 18,837 — — Total 117,101 18,837 98,264 — Long-term investments: Recurring fair value measurements: Equity securities: Non-qualified supplemental savings plan 14,301 14,301 — — Investment in ADNOC Drilling 147,370 147,370 — — Debt securities: Investment in Galileo 33,000 — — 33,000 Other 565 — — 565 Total 195,236 161,671 — 33,565 Nonrecurring fair value measurements 1 : Geothermal equity securities 2 10,707 — — 10,707 Total 10,707 — — 10,707 Total $ 205,943 $ 161,671 $ — $ 44,272 Liabilities Contingent consideration $ 4,022 $ — $ — $ 4,022 (1) As of September 30, 2022, our other equity security investments are included in our nonrecurring fair value assets. The balances of these equity security investments was $0.6 million measured at cost, less any impairments. (2) As of September 30, 2022, our equity security investments in geothermal energy was $23.1 million, of which $10.7 million was marked to fair value during the period. The remaining $12.4 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 about our Level 3 unobservable significant inputs related to our debt security investment with Galileo at the dates included below: September 30, 2023 Fair Value (in thousands) Valuation Technique Unobservable Inputs $ 35,434 Black-Scholes-Merton model Discount rate 19.2 % Risk-free rate 4.3 % Equity volatility 92.0 % September 30, 2022 Fair Value (in thousands) Valuation Technique Unobservable Inputs $ 33,000 Black-Scholes-Merton model Discount rate 22.4 % Risk-free rate 4.0 % Equity volatility 92.5 % |
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: Year Ended (in thousands) 2023 2022 Assets at beginning of period $ 33,565 $ 500 Purchases 2,122 36,065 Accrued interest 1 2,434 — Transfers in/(out) 2 — (3,000) Reserves 3 (681) — Assets at end of period $ 37,440 $ 33,565 (1) During the fiscal year ended September 30, 2023, our convertible note agreement with Galileo was amended to include any interest which has accrued but not yet compounded or issued as a funding note. As a result, we have included accrued interest in our total investment balance. (2) This represents the conversion from debt to equity securities on the Consolidated Balance Sheets as of September 30, 2022. (3) During the fiscal year ended September 30, 2023, we recorded an allowance for credit loss related to one of our geothermal debt securities as the balance is deemed to be uncollectible. The following table reconciles changes in the balance of our equity securities, without readily determinable fair values, for the periods presented below: Year Ended (in thousands) 2023 2022 Assets at beginning of period $ 23,745 $ 2,865 Purchases 4,487 15,177 Transfers in/(out) 1 — 3,000 Unrealized gain included in earnings — 2,703 Assets at end of period $ 28,232 $ 23,745 (1) This represents the conversion from debt to equity securities on the Consolidated Balance Sheets as of September 30, 2022. |
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: (in thousands) 2023 2022 Liabilities at beginning of period $ 4,022 $ 2,996 Additions 500 1,500 Total gains or losses: Included in earnings 7,808 (224) Settlements 1 (2,875) (250) Liabilities at end of period $ 9,455 $ 4,022 (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 September 30, 2023 and 2022: September 30, (in millions) 2023 2022 Long-term debt, net Carrying value 545.1 542.6 Fair value 435.5 430.7 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Reconciliation of the Changes in the Pension Benefit Obligations and Fair Value of Pension Plan Assets | The following table provides a reconciliation of the changes in the pension benefit obligations and fair value of Pension Plan assets over the two-year period ended September 30, 2023 and a statement of the funded status as of September 30, 2023 and 2022: September 30, (in thousands) 2023 2022 Accumulated benefit obligation $ 54,646 $ 60,463 Changes in projected benefit obligations: Projected benefit obligation at beginning of year $ 60,463 $ 110,352 Interest cost 3,086 2,537 Actuarial gain (4,940) (16,260) Benefits paid (3,963) (36,166) Projected benefit obligation at end of year $ 54,646 $ 60,463 Change in plan assets: Fair value of plan assets at beginning of year $ 41,764 $ 87,255 Actual return on plan assets 979 (14,324) Employer contribution 5,000 5,000 Benefits paid (3,963) (36,167) Fair value of plan assets at end of year $ 43,780 $ 41,764 Funded status of the plan at end of year $ (10,866) $ (18,699) |
Schedule of Weighted Average Assumptions Used for the Pension Calculations | The weighted average assumptions used for the pension calculations were as follows: September 30, 2023 2022 2021 Discount rate for net periodic benefit costs 5.44 % 2.75 % 2.66 % Discount rate for year-end obligations 5.77 % 5.44 % 2.75 % Expected return on plan assets 4.50 % 4.25 % 3.50 % |
Schedule of Components of the Net Periodic Pension (Benefit) | Components of the net periodic pension expense were as follows: Year Ended September 30, (in thousands) 2023 2022 2021 Interest cost $ 3,086 $ 2,537 $ 2,925 Expected return on plan assets 1 (1,762) (2,481) (3,722) Recognized net actuarial loss 1,139 2,080 3,205 Settlement expense — 9,031 3,448 Other — — (81) Net pension expense $ 2,463 $ 11,167 $ 5,775 (1) The Company uses the fair value of plan assets in determining the expected return on plan assets. |
Schedule of Expected Benefits to be Paid from the Pension Plan in Each of the Next Five Fiscal Years and Thereafter | The following table reflects the expected benefits to be paid from the Pension Plan in each of the next five fiscal years, and in the aggregate for the five years thereafter (in thousands): Year Ended September 30, 2024 2025 2026 2027 2028 2029 – 2033 Total $ 4,790 $ 5,698 $ 5,009 $ 5,114 $ 4,494 $ 21,168 $ 46,273 |
Schedule of Target Allocation and Asset Allocation for the Pension Plan | The target allocation for 2024 and the asset allocation for the Pension Plan at the end of fiscal years 2023 and 2022, by asset category, were as follows: Target Allocation September 30, Asset Category 2024 2023 2022 U.S. equities 17 % 17 % 18 % International equities 12 12 11 Fixed income 71 71 71 Total 100 % 100 % 100 % |
Schedule of Fair Value of Pension Plan Assets | The fair value of Pension Plan assets at September 30, 2023 and 2022, summarized by level within the fair value hierarchy described in Note 12—Fair Value Measurement of Financial Instruments, are as follows: September 30, 2023 (in thousands) Total Level 1 Level 2 Level 3 Short-term investments $ 1,018 $ 1,018 $ — $ — Mutual funds: Domestic stock funds 7,299 7,299 — — Bond funds 30,319 30,319 — — International stock funds 5,120 5,120 — — Total mutual funds 42,738 42,738 — — Oil and gas properties 24 — — 24 Total $ 43,780 $ 43,756 $ — $ 24 September 30, 2022 (in thousands) Total Level 1 Level 2 Level 3 Short-term investments $ 555 $ 555 $ — $ — Mutual funds: Domestic stock funds 7,318 7,318 — — Bond funds 29,093 29,093 — — International stock funds 4,739 4,739 — — Total mutual funds 41,150 41,150 — — Oil and gas properties 59 — — 59 Total $ 41,764 $ 41,705 $ — $ 59 |
SUPPLEMENTAL BALANCE SHEET IN_2
SUPPLEMENTAL BALANCE SHEET INFORMATION (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Activity in the Reserve for Bad Debts | The following reflects the activity in our reserve for expected credit losses on trade receivables for fiscal years 2023, 2022 and 2021: Year Ended September 30, (in thousands) 2023 2022 2021 Reserve for credit losses: Balance at October 1, $ 2,975 $ 2,068 $ 1,820 Provision for credit loss 534 1,077 203 (Write-off) recovery of credit loss (821) (170) 45 Balance at September 30, $ 2,688 $ 2,975 $ 2,068 |
Schedule of Accounts Receivable, Prepaid Expenses and Other Current Assets, Accrued Liabilities and Long-Term Liabilities | Accounts receivable, prepaid expenses and other current assets, net, accrued liabilities and noncurrent liabilities —other at September 30, 2023 and 2022 consist of the following: Year Ended September 30, (in thousands) 2023 2022 Accounts receivable, net of reserve: Trade receivables $ 403,091 $ 430,944 Income tax receivable 1,097 27,769 Total accounts receivable, net of reserve $ 404,188 $ 458,713 Prepaid expenses and other current assets, net: Deferred mobilization $ 7,873 $ 5,048 Prepaid insurance 11,160 7,498 Prepaid value added tax 7,867 6,628 Prepaid maintenance and rent 12,278 13,092 Accrued demobilization, net 6,560 6,319 Prepaid equipment 21,821 10,091 Insurance Recoverable 28,129 9,684 Other 2,039 8,103 Total prepaid expenses and other current assets, net $ 97,727 $ 66,463 Accrued liabilities: Accrued operating costs $ 20,618 $ 26,539 Payroll and employee benefits 55,596 58,604 Taxes payable, other than income tax 32,537 26,786 Self-insurance liabilities 60,921 38,422 Deferred income 23,441 19,821 Deferred mobilization revenue 10,247 8,959 Accrued income taxes 24,495 40,833 Contingent consideration 9,455 2,750 Operating lease liability 13,772 12,382 Other 11,803 6,055 Total accrued liabilities $ 262,885 $ 241,151 Noncurrent liabilities — Other: Pension and other non-qualified retirement plans $ 33,048 $ 40,423 Self-insurance liabilities 42,285 38,422 Contingent liability — 1,272 Deferred revenue 8,135 3,162 Uncertain tax positions including interest and penalties 3,136 2,381 Operating lease liability 41,038 27,350 Other 487 1,917 Total noncurrent liabilities — other $ 128,129 $ 114,927 |
BUSINESS SEGMENTS AND GEOGRAP_2
BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information of Reportable Segments | Summarized financial information of our reportable segments for the fiscal years ended September 30, 2023, 2022 and 2021 is shown in the following tables: September 30, 2023 (in thousands) North America Solutions Offshore Gulf of Mexico International Solutions Other Eliminations Total External sales $ 2,519,743 $ 130,244 $ 212,566 $ 9,868 $ — $ 2,872,421 Intersegment — — — 67,428 (67,428) — Total sales 2,519,743 130,244 212,566 77,296 (67,428) 2,872,421 Segment operating income (loss) 625,467 22,806 (891) 15,876 4,671 667,929 Depreciation and amortization 353,976 7,622 7,615 2,014 — 371,227 September 30, 2022 (in thousands) North America Solutions Offshore Gulf of Mexico International Solutions Other Eliminations Total External sales $ 1,788,167 $ 125,465 $ 136,072 $ 9,240 $ — $ 2,058,944 Intersegment — — — 57,047 (57,047) — Total sales 1,788,167 125,465 136,072 66,287 (57,047) 2,058,944 Segment operating income (loss) 121,893 23,214 (138) 12,720 (6,422) 151,267 Depreciation and amortization 375,250 9,175 4,156 1,701 — 390,282 September 30, 2021 (in thousands) North America Solutions Offshore Gulf of Mexico International Solutions Other Eliminations Total External sales $ 1,026,364 $ 126,399 $ 57,917 $ 7,888 $ — $ 1,218,568 Intersegment — — — 35,416 (35,416) — Total sales 1,026,364 126,399 57,917 43,304 (35,416) 1,218,568 Segment operating income (loss) (287,176) 15,969 (21,003) (9,704) (1,580) (303,494) Depreciation and amortization 392,415 10,557 2,013 1,426 — 406,411 |
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 (loss) before income taxes as reported on the Consolidated Statements of Operations: Year Ended September 30, (in thousands) 2023 2022 2021 Segment operating income (loss) $ 667,929 $ 151,267 $ (303,494) Gain on reimbursement of drilling equipment 48,173 29,443 12,322 Other gain (loss) on sale of assets (8,016) 5,432 (11,280) Corporate selling, general and administrative costs, corporate depreciation and corporate restructuring charges (146,197) (140,850) (126,097) Operating income (loss) 561,889 45,292 (428,549) Other income (expense) Interest and dividend income 28,393 18,090 10,254 Interest expense (17,283) (19,203) (23,955) Gain on investment securities 11,299 57,937 6,727 Loss on extinguishment of debt — (60,083) — Other 9,081 (10,714) 5,652 Total unallocated amounts 31,490 (13,973) (1,322) Income (loss) before income taxes $ 593,379 $ 31,319 $ (429,871) |
Schedule of Total Assets by Reportable Segment | The following table reconciles segment total assets to total assets as reported on the Consolidated Balance Sheets: Year Ended September 30, (in thousands) 2023 2022 Total assets 1 North America Solutions $ 3,320,203 $ 3,406,824 Offshore Gulf of Mexico 73,319 80,993 International Solutions 407,143 330,974 Other 154,290 120,305 3,954,955 3,939,096 Investments and corporate operations 427,001 416,435 Total assets $ 4,381,956 $ 4,355,531 (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: Year Ended September 30, (in thousands) 2023 2022 2021 Operating revenues United States $ 2,656,617 $ 1,920,026 $ 1,158,230 Argentina 137,420 91,385 27,855 Colombia 46,720 22,003 1,674 Bahrain 15,401 16,986 27,435 United Arab Emirates 9,716 5,698 957 Australia 3,350 — — Other foreign 3,197 2,846 2,417 Total $ 2,872,421 $ 2,058,944 $ 1,218,568 The following table presents property, plant and equipment by country based on the location of service provided: Year Ended September 30, (in thousands) 2023 2022 Property, plant and equipment, net United States $ 2,813,707 $ 2,872,145 Argentina 57,168 54,789 Colombia 20,835 21,809 Australia 10,673 — United Arab Emirates 10,373 3,024 Other foreign 8,939 9,042 Total $ 2,921,695 $ 2,960,809 |
NATURE OF OPERATIONS (Details)
NATURE OF OPERATIONS (Details) | 12 Months Ended |
Sep. 30, 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 | 12 Months Ended | ||
Oct. 31, 2022 USD ($) shares | Sep. 30, 2023 USD ($) | Sep. 30, 2023 USD ($) geographical_area | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||||
Restricted cash and cash equivalents | $ 59,100 | $ 59,100 | $ 36,900 | ||
Additional cash and cash equivalents restricted at the election of management for potential insurance claims | 58,400 | 58,400 | 35,800 | ||
Reserves for excess and obsolete inventory | 22,400 | 22,400 | 28,000 | ||
Receivables | 404,188 | 404,188 | 458,713 | ||
Other assets, net | 32,061 | 32,061 | 20,926 | ||
Contract liability | $ 28,882 | 28,882 | 20,646 | $ 9,286 | |
Drilling services | 2,862,677 | 2,049,841 | 1,210,800 | ||
Early termination revenue | 2,300 | 700 | 7,700 | ||
Underwriting expenses | 12,500 | 7,000 | 12,600 | ||
Casualty insurance premiums | 39,700 | 35,600 | 21,900 | ||
Premium revenues and expenses | 67,400 | 57,000 | 35,400 | ||
Stop-loss medical expenses | $ 10,600 | 11,800 | 12,000 | ||
Cumulative inflation rate before a country is considered highly inflationary | 100% | ||||
Foreign currency losses | $ 6,400 | $ 5,900 | 5,300 | ||
International Locations | Geographic Concentration Risk | Operating Revenues | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Concentration percentage | 7.50% | 6.70% | |||
Reimbursements Received for Out-of-Pocket Expenses | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Drilling services | $ 345,500 | $ 263,100 | $ 148,000 | ||
South America | International Locations | Geographic Concentration Risk | International Solutions | Segment Revenue | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Concentration percentage | 85.30% | 81.60% | |||
Foreign Exchange | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Foreign currency losses | $ 12,200 | ||||
Foreign Exchange | United States | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Proceeds received | $ 9,800 | ||||
Minimum | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated life of finite-lived intangible assets used for amortization | 5 years | 5 years | |||
Lease term, lessee | 1 year | 1 year | |||
Deductible per occurrence | $ 1,000 | ||||
Number of geographical areas operating | geographical_area | 1 | ||||
Maximum | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated life of finite-lived intangible assets used for amortization | 20 years | 20 years | |||
Lease term, lessee | 15 years | 15 years | |||
Deductible per occurrence | $ 10,000 | ||||
Investee | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Receivables | $ 2,800 | 2,800 | |||
Other assets, net | 8,000 | 8,000 | |||
Contract liability | 6,600 | 6,600 | |||
Drilling services | 3,400 | ||||
Expected revenue | 37,000 | ||||
Tamboran Resources Limited | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Payments to acquire investments | $ 14,100 | ||||
Investment shares acquired (in shares) | shares | 106 | ||||
Acquisition of Drilling Technologies Companies | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Restricted cash and cash equivalents | $ 700 | $ 700 | $ 1,100 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, RELATED RISKS AND UNCERTAINTIES - Restricted Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 |
Restricted Cash and Investments | ||||
Cash and cash equivalents | $ 257,174 | $ 232,131 | $ 917,534 | |
Restricted cash and cash equivalents | 59,100 | 36,900 | ||
Total cash, cash equivalents, and restricted cash | 316,238 | 269,009 | 936,716 | $ 536,747 |
Restricted cash | ||||
Restricted Cash and Investments | ||||
Restricted cash and cash equivalents | 59,064 | 36,246 | 18,350 | |
Other assets, net | ||||
Restricted Cash and Investments | ||||
Restricted cash and cash equivalents | $ 0 | $ 632 | $ 832 |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 7,548,697 | $ 7,477,539 | |
Accumulated depreciation | (4,627,002) | (4,516,730) | |
Property, plant and equipment, net | 2,921,695 | 2,960,809 | |
Assets held-for-sale | 645 | 4,333 | $ 71,453 |
Drilling services equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 6,396,612 | 6,369,888 | |
Drilling services equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 4 years | ||
Drilling services equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 15 years | ||
Tubulars | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 4 years | ||
Property, plant and equipment, gross | $ 564,032 | 569,496 | |
Real estate properties | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 47,313 | 45,557 | |
Real estate properties | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 10 years | ||
Real estate properties | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 45 years | ||
Other | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 443,366 | 422,479 | |
Other | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 2 years | ||
Other | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 23 years | ||
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 97,374 | $ 70,119 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT - Narrative (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Nov. 30, 2022 rig | Sep. 30, 2021 USD ($) rig | Jun. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) rig | Sep. 30, 2023 USD ($) rig | Sep. 30, 2022 USD ($) rig | Sep. 30, 2021 USD ($) service rig | Mar. 31, 2022 rig | |
Property, Plant and Equipment [Line Items] | ||||||||
Depreciation | $ 375,700 | $ 396,000 | $ 412,500 | |||||
Abandonments included in depreciation | 3,300 | 6,600 | 2,000 | |||||
Rigs damaged by fire | rig | 1 | |||||||
Abandonment expense | 9,200 | |||||||
Insurance recoveries | 9,200 | |||||||
Asset additions | 1,177 | 2,580 | ||||||
Asset impairment charges | 12,097 | 4,363 | 70,850 | |||||
Property, plant and equipment, net | 2,921,695 | 2,960,809 | ||||||
Assets held-for-sale | $ 71,453 | 645 | 4,333 | 71,453 | ||||
Other (gain) loss on sale of assets | 8,016 | (5,432) | 11,280 | |||||
Other capital expenditures related to assets held-for-sale | 0 | 21,645 | 0 | |||||
Gain on reimbursement of drilling equipment | 48,173 | 29,443 | 12,322 | |||||
Disposal Group, Held-for-sale, Not Discontinued Operations | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Other (gain) loss on sale of assets | (3,100) | |||||||
United Arab Emirates | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Property, plant and equipment, net | 10,373 | 3,024 | ||||||
United States | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Property, plant and equipment, net | 2,813,707 | $ 2,872,145 | ||||||
Domestic Non Super Spec Asset Group | North America Solutions | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Number of rigs, held-for -sale | rig | 71 | |||||||
Asset additions | $ 13,500 | $ 13,500 | ||||||
Asset impairment charges | $ 56,400 | |||||||
FlexRig4 Asset Group | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Number of rigs, held-for -sale | rig | 8 | 8 | 8 | |||||
Property, plant and equipment, net | $ 55,600 | $ 55,600 | ||||||
Proceeds from sale of assets | $ 86,500 | |||||||
Period for delivery and commissioning of rigs sold | 12 months | |||||||
Other (gain) loss on sale of assets | $ (3,100) | |||||||
FlexRig4 Asset Group | United Arab Emirates | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Number of rigs, held-for -sale | rig | 2 | 8 | 2 | |||||
Property, plant and equipment, net | $ 55,600 | |||||||
Other (gain) loss on sale of assets | (3,100) | |||||||
Sale of property, plant and equipment, selling costs | 27,800 | |||||||
Other capital expenditures related to assets held-for-sale | 21,600 | |||||||
FlexRig4 Asset Group | United States | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Number of rigs, held-for -sale | rig | 6 | 6 | ||||||
Assets Related To Trucking And Casino Running Services | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Other (gain) loss on sale of assets | (4,200) | |||||||
Assets Related To Trucking And Casino Running Services | North America Solutions | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Asset impairment charges | $ 14,400 | |||||||
Property, plant and equipment, net | $ 23,200 | $ 23,200 | ||||||
Proceeds from sale of assets | 6,000 | |||||||
Number of services offered | service | 2 | |||||||
Percentage of consolidated revenue | 2.80% | 2.80% | ||||||
Assets held-for-sale | $ 8,800 | $ 8,800 | ||||||
Other (gain) loss on sale of assets | 3,400 | |||||||
Earnout proceeds from sale | $ 1,600 | $ 1,100 | ||||||
Partial Rig Substructures | North America Solutions | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Number of rigs, held-for -sale | rig | 2 | |||||||
Asset impairment charges | $ 1,900 | |||||||
Property, plant and equipment, net | 2,000 | |||||||
Property, plant, and equipment, salvage value | $ 100 | |||||||
International FlexRig | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Number of rigs, held-for -sale | rig | 4 | |||||||
Asset impairment charges | $ 8,100 | |||||||
Property, plant and equipment, net | 8,800 | |||||||
Property, plant, and equipment, salvage value | $ 700 | |||||||
International FlexRig | International Solutions | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Number of rigs, held-for -sale | rig | 2 | 2 | ||||||
Asset impairment charges | $ 2,500 | |||||||
Property, plant and equipment, net | 3,400 | |||||||
Proceeds from sale of assets | 900 | |||||||
Assets held-for-sale | $ 900 | |||||||
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] | ||||||||
Asset impairment charges | $ 2,700 | |||||||
Property, plant and equipment, net | 3,000 | |||||||
Property, plant, and equipment, salvage value | 300 | |||||||
Additional Equipment | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Asset impairment charges | 1,300 | |||||||
Property, plant and equipment, net | 1,400 | |||||||
Property, plant, and equipment, salvage value | 100 | |||||||
Drilling Equipment And Spares | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Other (gain) loss on sale of assets | 31,200 | |||||||
Drilling Equipment And Spares | North America Solutions | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Other (gain) loss on sale of assets | 17,100 | |||||||
Vehicles | North America Solutions | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Other (gain) loss on sale of assets | (2,600) | |||||||
Other Drilling Equipment | North America Solutions | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Other (gain) loss on sale of assets | (2,400) | |||||||
Other Miscellaneous Assets | North America Solutions | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Other (gain) loss on sale of assets | $ (2,500) | |||||||
Offshore Platform Rig | Offshore Gulf of Mexico | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Property, plant and equipment, net | $ 2,800 | 2,800 | ||||||
Proceeds from sale of assets | 12,000 | |||||||
Other (gain) loss on sale of assets | $ (9,200) |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT - Schedule of Assets Held-for-Sale (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Change In Assets Held-For-Sale [Roll Forward] | ||
Assets held-for-sale, beginning balance | $ 4,333 | $ 71,453 |
Asset additions | 1,177 | 2,580 |
Sale of assets held-for-sale | (2,132) | (67,592) |
Reclassification to assets held and used | (2,108) | |
Impairment Expense | (2,733) | |
Assets held-for-sale, ending balance | $ 645 | $ 4,333 |
LEASES - Lease Position (Detail
LEASES - Lease Position (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Leases [Abstract] | ||
Operating lease commitments, including probable extensions | $ 65,970 | $ 44,769 |
Discounted using the lessee's incremental borrowing rate | 55,894 | 41,002 |
(Less): short-term leases recognized on a straight-line basis as expense | (877) | (1,052) |
(Less): other | (207) | (218) |
Lease liability recognized | 54,810 | 39,732 |
Current lease liabilities | 13,772 | 12,382 |
Non-current lease liabilities | $ 41,038 | $ 27,350 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued liabilities | Accrued liabilities |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other | Other |
LEASES - Recognized Right-of-Us
LEASES - Recognized Right-of-Use Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Lessee, Lease, Description [Line Items] | ||
Total right-of-use assets | $ 50,400 | $ 39,064 |
Properties | ||
Lessee, Lease, Description [Line Items] | ||
Total right-of-use assets | 50,080 | 38,925 |
Equipment | ||
Lessee, Lease, Description [Line Items] | ||
Total right-of-use assets | 318 | 125 |
Other | ||
Lessee, Lease, Description [Line Items] | ||
Total right-of-use assets | $ 2 | $ 14 |
LEASES - Certain Information Re
LEASES - Certain Information Related to Lease Costs for Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Leases [Abstract] | ||
Operating lease cost | $ 11,004 | $ 9,687 |
Short-term lease cost | 1,437 | 1,546 |
Total lease cost | $ 12,441 | $ 11,233 |
LEASES - Other Information Rela
LEASES - Other Information Related to Operating Leases (Details) | Sep. 30, 2023 | Sep. 30, 2022 |
Leases [Abstract] | ||
Weighted average remaining lease term | 7 years 7 months 6 days | 5 years 10 months 24 days |
Weighted average discount rate | 3.60% | 2.50% |
LEASES - Narrative (Details)
LEASES - Narrative (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 USD ($) renewal_option | Sep. 30, 2023 USD ($) extension renewal_option | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Lessee, Lease, Description [Line Items] | ||||
Operating lease expense | $ | $ 12.4 | $ 11.2 | $ 17.3 | |
Right-of-use assets and lease liability | $ | $ 17.6 | |||
Initial lease term not yet commenced | 12 years | 12 years | ||
Number of lease extensions | extension | 2 | |||
Term of extension | 5 years | |||
Tulsa Corporate Office Lease | ||||
Lessee, Lease, Description [Line Items] | ||||
Number of renewal options | renewal_option | 2 | 2 | ||
Renewal option term | 5 years | 5 years | ||
Tulsa Industrial Facility Lease | ||||
Lessee, Lease, Description [Line Items] | ||||
Number of renewal options | renewal_option | 2 | 2 | ||
Renewal option term | 2 years | 2 years |
LEASES - Future Minimum Rental
LEASES - Future Minimum Rental Payments Required under Operating Leases (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 10,534 |
2025 | 7,552 |
2026 | 5,390 |
2027 | 5,055 |
2028 | 4,499 |
Thereafter | 21,391 |
Total | $ 54,421 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill additions | $ 0 | $ 0 | |
Impairments of goodwill | 0 | 0 | |
Goodwill | 45,653,000 | 45,653,000 | |
Amortization | 6,600,000 | $ 7,200,000 | $ 7,200,000 |
Expected amortization in 2024 | 6,400,000 | ||
Expected amortization in 2025 | 25,600,000 | ||
Expected amortization in 2026 | 25,600,000 | ||
Expected amortization in 2027 | 25,600,000 | ||
Expected amortization in 2028 | $ 25,600,000 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Intangible Assets Arising from Business Acquisitions (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 100,961 | $ 100,961 |
Accumulated Amortization | 40,386 | 33,807 |
Net | $ 60,575 | 67,154 |
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 | 34,092 | 28,137 |
Net | $ 55,004 | 60,959 |
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 | 503 | 328 |
Net | $ 1,497 | 1,672 |
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 | 1,791 | 1,475 |
Net | $ 4,074 | 4,390 |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Estimated Useful Lives | 5 years | |
Gross Carrying Amount | $ 4,000 | 4,000 |
Accumulated Amortization | 4,000 | 3,867 |
Net | $ 0 | $ 133 |
DEBT - Unsecured Long-Term Debt
DEBT - Unsecured Long-Term Debt Outstanding (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Long-term debt | ||
Face Amount | $ 550,000 | $ 550,000 |
Unamortized Discount and Debt Issuance Cost | (4,856) | (7,390) |
Long-term debt, net | 545,144 | 542,610 |
Unsecured Senior Notes due September 29, 2031 | ||
Long-term debt, gross | ||
Face Amount | 550,000 | 550,000 |
Unamortized Discount and Debt Issuance Cost | (4,856) | (7,390) |
Book Value | $ 545,144 | $ 542,610 |
DEBT - Aggregate Maturities of
DEBT - Aggregate Maturities of Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Debt Disclosure [Abstract] | ||
2024 | $ 0 | |
2025 | 0 | |
2026 | 0 | |
2027 | 0 | |
2028 | 0 | |
Thereafter - Due 2031 | 550,000 | |
Long-term debt | $ 550,000 | $ 550,000 |
DEBT - Narrative (Details)
DEBT - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||
Nov. 13, 2018 | Dec. 31, 2021 | Sep. 30, 2023 | Feb. 10, 2023 | Mar. 08, 2022 | Sep. 29, 2021 | Apr. 16, 2021 | Dec. 20, 2018 | |
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 | |||||||
Unsecured Senior Notes due March 19, 2025 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate (as a percent) | 4.65% | |||||||
Face amount of debt | $ 487,100,000 | |||||||
Make-whole premium and accrued interest | $ 56,400,000 | |||||||
Write-off of unamortized discount and debt issuance costs | $ 3,700,000 | |||||||
2018 Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 750,000,000 | |||||||
Increase in aggregate commitments subject to satisfaction of certain commitments from new or existing lenders | $ 300,000,000 | |||||||
Commitment fee rate | 0.125% | |||||||
Maximum limit of priority debt on net worth | 17.50% | |||||||
Borrowings outstanding | $ 0 | |||||||
Available borrowing capacity | $ 750,000,000 | |||||||
2018 Credit Facility | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Commitment fee rate | 0.075% | |||||||
2018 Credit Facility | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Commitment fee rate | 0.20% | |||||||
Total debt to total capitalization ratio | 50% | |||||||
2018 Credit Facility | Secured Overnight Financing Rate (SOFR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate spread | 10% | |||||||
Spread over SOFR | 1.125% | |||||||
2018 Credit Facility | Secured Overnight Financing Rate (SOFR) | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate spread | 0.875% | |||||||
2018 Credit Facility | Secured Overnight Financing Rate (SOFR) | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate spread | 1.50% | |||||||
2018 Credit Facility | Fed Funds Effective Rate Overnight Index Swap Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate spread | 50% | |||||||
2018 Credit Facility | One Month Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate spread | 100% | |||||||
2018 Credit Facility | Base Rate | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate spread | 0% | |||||||
2018 Credit Facility | Base Rate | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate spread | 50% | |||||||
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 | |||||
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 | 95,000,000 | |||||||
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 - Components of th
INCOME TAXES - Components of the Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Current: | |||
Federal | $ 150,273 | $ 40,245 | $ (15,466) |
Foreign | 12,883 | 10,703 | 772 |
State | 16,523 | 1,906 | 725 |
Total current benefit | 179,679 | 52,854 | (13,969) |
Deferred: | |||
Federal | (20,337) | (32,382) | (81,760) |
Foreign | (1,254) | (1,310) | 4,106 |
State | 1,191 | 5,204 | (12,098) |
Total deferred benefit | (20,400) | (28,488) | (89,752) |
Total provision (benefit) | $ 159,279 | $ 24,366 | $ (103,721) |
INCOME TAXES - Domestic and For
INCOME TAXES - Domestic and Foreign Income (Loss) before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 584,891 | $ (14,411) | $ (412,556) |
Foreign | 8,488 | 45,730 | (17,315) |
Income (loss) before income taxes | $ 593,379 | $ 31,319 | $ (429,871) |
INCOME TAXES - Effective Income
INCOME TAXES - Effective Income Tax Rates as Compared to the U.S. Federal Income Tax Rate (Details) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Effective income tax rates as compared to the U.S. Federal income tax rate | |||
U.S. Federal income tax rate | 21% | 21% | 21% |
Effect of foreign taxes | 2.10% | 31.30% | 0.10% |
State income taxes, net of federal tax benefit | 2.40% | 21.40% | 2.70% |
Other impact of foreign operations | 0.20% | 3.20% | 0.50% |
Non-deductible meals and entertainment | 0.60% | 1% | (0.10%) |
Equity compensation | (0.10%) | 9.50% | (0.80%) |
Excess officer's compensation | 0.40% | 3.70% | 0% |
Foreign derived intangible income | 0% | (13.70%) | 0% |
Other | 0.20% | 0.40% | 0.70% |
Effective income tax rate | 26.80% | 77.80% | 24.10% |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Taxes [Line Items] | |||
Amount of foreign net operating loss carryforwards | $ 2.6 | ||
Equity compensation | 6.9 | ||
Accrued interest and penalties related to unrecognized tax benefits | 2.9 | $ 3 | $ 2.9 |
Potential increase (decrease) in uncertain tax liabilities | 3.1 | ||
Potential decrease in uncertain tax liabilities | 2.6 | ||
Domestic | |||
Income Taxes [Line Items] | |||
Amount of net operating loss carryforwards | 2.6 | ||
Domestic | Research Tax Credit Carryforward | |||
Income Taxes [Line Items] | |||
Tax credit carryforwards | 0.4 | ||
State | |||
Income Taxes [Line Items] | |||
Amount of net operating loss carryforwards | 14.8 | ||
Foreign | |||
Income Taxes [Line Items] | |||
Amount of net operating loss carryforwards | 14.8 | ||
Foreign | Research Tax Credit Carryforward | |||
Income Taxes [Line Items] | |||
Tax credit carryforwards | $ 1 |
INCOME TAXES - Components of Ne
INCOME TAXES - Components of Net Deferred Tax Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Deferred tax liabilities: | ||
Property, plant and equipment | $ 532,827 | $ 558,293 |
Marketable securities | 14,626 | 9,766 |
Other | 27,980 | 24,460 |
Total deferred tax liabilities | 575,433 | 592,519 |
Deferred tax assets: | ||
Pension reserves | 3,083 | 4,811 |
Self-insurance reserves | 6,235 | 7,333 |
Net operating loss, foreign tax credit, and other federal tax credit carryforwards | 6,770 | 8,673 |
Financial accruals | 29,449 | 31,022 |
Other | 21,647 | 13,678 |
Total deferred tax assets | 67,184 | 65,517 |
Valuation allowance | (9,560) | (10,710) |
Net deferred tax assets | 57,624 | 54,807 |
Net deferred tax liabilities | $ 517,809 | $ 537,712 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of the Change in Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits at October 1, | $ 960 | $ 1,678 | $ 13,440 |
Gross decreases - current period effect of tax positions | (534) | (718) | (11,648) |
Gross increases - current period effect of tax positions | 6 | 0 | 0 |
Expiration of statute of limitations for assessments | (185) | 0 | (114) |
Unrecognized tax benefits at September 30, | $ 247 | $ 960 | $ 1,678 |
SHAREHOLDERS' EQUITY - Narrativ
SHAREHOLDERS' EQUITY - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions | 12 Months Ended | |||||
Sep. 06, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Jun. 07, 2023 | Nov. 30, 2022 | |
Stockholders' Equity Note [Abstract] | ||||||
Number of common shares authorized to be repurchased (in shares) | 5 | 7 | 4 | |||
Shares of common stock repurchased (in shares) | 6.5 | 3.2 | ||||
Aggregate cost of repurchased shares | $ 249,000,000 | $ 77,000,000 | $ 0 | |||
Excise tax | 1,800,000 | |||||
Cash dividends | $ 199,957,000 | $ 106,756,000 | $ 109,236,000 | |||
Dividends declared (in dollars per share) | $ 0.25 | $ 1 | $ 1 | $ 1 | ||
Dividends payable | $ 25,194,000 | $ 26,693,000 |
SHAREHOLDERS' EQUITY - Componen
SHAREHOLDERS' EQUITY - Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 |
After-tax amounts: | |||
Unrealized actuarial loss | $ (7,981) | $ (12,072) | |
Unrealized actuarial loss | |||
Pre-tax amounts: | |||
Unrealized actuarial loss | (10,407) | (15,703) | $ (26,268) |
After-tax amounts: | |||
Unrealized actuarial loss | (7,981) | (12,072) | (20,244) |
Accumulated Other Comprehensive Income (Loss) | |||
Pre-tax amounts: | |||
Unrealized actuarial loss | (10,407) | (15,703) | (26,268) |
After-tax amounts: | |||
Unrealized actuarial loss | $ (7,981) | $ (12,072) | $ (20,244) |
SHAREHOLDERS' EQUITY - Schedule
SHAREHOLDERS' EQUITY - Schedule of Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Rollforward of accumulated other comprehensive income (loss), net of tax | |||
Beginning balance | $ 2,765,472 | $ 2,912,618 | $ 3,318,514 |
Other comprehensive income | 4,091 | 8,172 | 5,944 |
Ending balance | 2,771,943 | 2,765,472 | $ 2,912,618 |
Unrealized actuarial loss | |||
Rollforward of accumulated other comprehensive income (loss), net of tax | |||
Beginning balance | (12,072) | ||
Amounts reclassified from accumulated other comprehensive loss | 4,091 | ||
Other comprehensive income | 4,091 | ||
Ending balance | $ (7,981) | $ (12,072) |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS - Narrative (Details) $ in Thousands | 12 Months Ended | |||
Nov. 12, 2021 USD ($) rig | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Revenue From Contract With Customer [Line Items] | ||||
Revenue from performance contracts | $ 1,200,000 | $ 700,000 | $ 300,000 | |
Performance bonuses recognized | 47,300 | 38,800 | 17,400 | |
Early termination revenue | 2,300 | 700 | 7,700 | |
Drilling services | 2,862,677 | 2,049,841 | $ 1,210,800 | |
Capitalized fulfillment costs | $ 11,400 | 6,300 | ||
Period of unsatisfied performance obligations represented in backlog contracts with month-to-month terms | 1 month | |||
Accounts receivable payment period | 30 days | |||
YPF S.A. | ||||
Revenue From Contract With Customer [Line Items] | ||||
Litigation settlement, amount awarded from other party | $ 11,000 | |||
Drilling service contract, number of rigs | rig | 3 | |||
Revenue recognized | $ 5,400 | |||
Drilling services | $ 16,400 |
REVENUE FROM CONTRACTS WITH C_4
REVENUE FROM CONTRACTS WITH CUSTOMERS - Remaining Performance Obligations (Details) $ in Billions | Sep. 30, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Amount of remaining performance obligation | $ 1.4 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction for remaining performance obligation | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Amount of remaining performance obligation | $ 0.9 |
Expected timing of satisfaction for remaining performance obligation | 12 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 | $ 0.5 |
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 | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Contract assets, net | $ 6,560 | $ 6,319 |
Change in Contract with Customer, Liability [Roll Forward] | ||
Contract liabilities beginning balance | 20,646 | 9,286 |
Payment received/accrued and deferred | 76,756 | 58,202 |
Revenue recognized during the period | (68,520) | (46,842) |
Contract liabilities ending balance | $ 28,882 | $ 20,646 |
STOCK-BASED COMPENSATION - Narr
STOCK-BASED COMPENSATION - Narrative (Details) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Sep. 30, 2023 USD ($) component tranche $ / shares shares | Sep. 30, 2022 shares | Sep. 30, 2021 shares | Sep. 30, 2020 | |
2016 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted (in shares) | 0 | 0 | 0 | |
Stock options outstanding (in shares) | 2,100,000 | |||
Stock options outstanding (in dollars per share) | $ / shares | $ 65.08 | |||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Period over which awards expired | 10 years | |||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | 4 years | ||
Unrecognized compensation cost related to unvested awards | $ | $ 26.5 | |||
Weighted-average compensation cost recognition period | 1 year 10 months 24 days | |||
Restricted Stock | 2020 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted (in shares) | 591,838 | |||
Performance Share Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Unrecognized compensation cost related to unvested awards | $ | $ 9.2 | |||
Weighted-average compensation cost recognition period | 1 year 9 months 18 days | |||
Number of components included in award units | component | 2 | |||
Increase or decrease in award percentage | 25% | |||
Performance Share Units | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of units vested | 0% | |||
Performance Share Units | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of units vested | 200% | |||
Performance Share Units | 2020 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted (in shares) | 144,136 | |||
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] | ||||
Period over which awards expired | 3 years | |||
Performance cycle period of each tranche | 1 year | |||
Number of tranches in component | tranche | 3 |
STOCK-BASED COMPENSATION - Sche
STOCK-BASED COMPENSATION - Schedule of Compensation Cost for Stock-Based Payment Arrangements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 32,456 | $ 28,032 | $ 27,858 |
Drilling services operating | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 5,919 | 5,142 | 5,927 |
Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 1,905 | 1,551 | 1,271 |
Selling, general and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 24,632 | $ 21,339 | $ 20,660 |
STOCK-BASED COMPENSATION - Sc_2
STOCK-BASED COMPENSATION - Schedule of the Status of Restricted Stock Awards and Changes in Restricted Stock Outstanding (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Restricted Stock | |||
Shares | |||
Outstanding (in shares) | 1,493 | 1,412 | 1,280 |
Granted (in shares) | 592 | 744 | 701 |
Vested (in shares) | (708) | (610) | (534) |
Forfeited (in shares) | (15) | (53) | (35) |
Outstanding (in shares) | 1,362 | 1,493 | 1,412 |
Weighted-Average Grant Date Fair Value per Share | |||
Outstanding (in dollars per share) | $ 30.85 | $ 37.36 | $ 49.81 |
Granted (in dollars per share) | 44.48 | 25.83 | 25.61 |
Vested (in dollars per share) | 33.95 | 39.81 | 51.79 |
Forfeited (in dollars per share) | 36.25 | 30.98 | 35.76 |
Outstanding (in dollars per share) | $ 35.11 | $ 30.85 | $ 37.36 |
Phantom Share Units (PSUs) | |||
Shares | |||
Granted (in shares) | 12,591 | 14,199 | 18,906 |
Vested (in shares) | (14,199) | (18,906) | (20,616) |
STOCK-BASED COMPENSATION - Sc_3
STOCK-BASED COMPENSATION - Schedule of the Status of Performance Share Units (Details) - $ / shares | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Performance Share Units | |||
Shares | |||
Outstanding (in shares) | 726,000 | 699,000 | 337,000 |
Granted (in shares) | 144,000 | 227,000 | 313,000 |
Vested (in shares) | (286,000) | (161,000) | 0 |
Dividend equivalent right performance units credited (in shares) | 212,000 | 15,000 | 60,000 |
Forfeited (in shares) | 0 | (54,000) | (11,000) |
Outstanding (in shares) | 796,000 | 726,000 | 699,000 |
Weighted-Average Grant Date Fair Value per Share | |||
Outstanding (in dollars per share) | $ 33.67 | $ 41.55 | $ 51.09 |
Granted (in dollars per share) | 54.30 | 30.12 | 29.77 |
Vested (in dollars per share) | 43.40 | 62.66 | 0 |
Dividend equivalent right performance units credited (in dollars per share) | 35.94 | 32.82 | 49.64 |
Forfeited (in dollars per share) | 0 | 34.16 | 43.40 |
Outstanding (in dollars per share) | $ 34.51 | $ 33.67 | $ 41.55 |
Shares where performance criteria has been achieved (in shares) | 233,322 | ||
Vested and expected to vest (in shares) | 412,046 | ||
Vesting period | 3 years | ||
Performance Share Units | Minimum | |||
Weighted-Average Grant Date Fair Value per Share | |||
Vesting of units (in percent) | 0% | ||
Performance Share Units | Maximum | |||
Weighted-Average Grant Date Fair Value per Share | |||
Vesting of units (in percent) | 20,000% | ||
Phantom Share Units (PSUs) | |||
Shares | |||
Granted (in shares) | 12,591,000 | 14,199,000 | 18,906,000 |
Vested (in shares) | (14,199,000) | (18,906,000) | (20,616,000) |
Weighted-Average Grant Date Fair Value per Share | |||
Vesting period | 1 year |
STOCK-BASED COMPENSATION - Weig
STOCK-BASED COMPENSATION - Weighted-Average Assumptions Used in Calculation of Fair Value of Performance Share Units (Details) - Performance Share Units | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 4.10% | 1% | 0.20% |
Expected stock volatility | 71.60% | 67.30% | 62.30% |
Expected term (in years) | 3 years | 3 years | 3 years |
EARNINGS (LOSS) PER COMMON SH_3
EARNINGS (LOSS) PER COMMON SHARE - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Numerator: | |||
Net income (loss) | $ 434,100 | $ 6,953 | $ (326,150) |
Adjustment for basic earnings (loss) per share: | |||
Earnings allocated to unvested shareholders | (5,863) | (1,508) | (1,350) |
Numerator for basic earnings (loss) per share | 428,237 | 5,445 | (327,500) |
Adjustment for diluted earnings (loss) per share: | |||
Effect of reallocating undistributed earnings of unvested shareholders | 12 | 0 | 0 |
Numerator for diluted earnings (loss) per share | $ 428,249 | $ 5,445 | $ (327,500) |
Denominator: | |||
Denominator for basic earnings (loss) per share - weighted-average shares (in shares) | 102,447 | 105,891 | 107,818 |
Effect of dilutive shares from restricted stock and performance share units (in shares) | 405 | 664 | 0 |
Denominator for diluted earnings (loss) per share - adjusted weighted-average shares (in shares) | 102,852 | 106,555 | 107,818 |
Basic earnings (loss) per common share (in dollars per share) | $ 4.18 | $ 0.05 | $ (3.04) |
Diluted earnings (loss) per common share (in dollars per share) | $ 4.16 | $ 0.05 | $ (3.04) |
EARNINGS (LOSS) PER COMMON SH_4
EARNINGS (LOSS) PER COMMON SHARE - Anti-Dilutive Shares Excluded from the Calculation of Diluted Earnings Per Share (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |||
Potentially dilutive shares excluded as anti-dilutive (in shares) | 2,451 | 2,543 | 3,894 |
Weighted-average price per share (in dollars per share) | $ 62.08 | $ 62.36 | $ 57.23 |
FAIR VALUE MEASUREMENT OF FIN_3
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS - Schedule of Assets Measured at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Short-term investments: | ||
Total short-term investments | $ 93,600 | $ 117,101 |
Nonrecurring fair value measurements | ||
Total | 239,145 | 205,943 |
Liabilities | ||
Contingent consideration | 0 | 1,272 |
Geothermal Investments | ||
Liabilities | ||
Equity securities measured at cost | 25,200 | |
Recurring Fair Value Measurements | ||
Long-term investments: | ||
Non-qualified supplemental savings plan | 14,597 | 14,301 |
Nonrecurring fair value measurements | ||
Total | 236,715 | 195,236 |
Liabilities | ||
Contingent consideration | 9,455 | 4,022 |
Recurring Fair Value Measurements | ADNOC Drilling | ||
Long-term investments: | ||
Equity securities, investment | 174,758 | 147,370 |
Recurring Fair Value Measurements | Galileo Technologies | ||
Long-term investments: | ||
Debt securities, investment | 35,434 | 33,000 |
Recurring Fair Value Measurements | Tamboran Resources Limited | ||
Long-term investments: | ||
Equity securities, investment | 9,920 | |
Recurring Fair Value Measurements | Geothermal Investments | ||
Long-term investments: | ||
Debt securities, investment | 2,006 | |
Recurring Fair Value Measurements | Other | ||
Long-term investments: | ||
Debt securities, investment | 565 | |
Nonrecurring Fair Value Measurements | ||
Nonrecurring fair value measurements | ||
Other equity securities | 2,430 | |
Total | 2,430 | 10,707 |
Liabilities | ||
Equity securities measured at cost | 600 | |
Nonrecurring Fair Value Measurements | Geothermal Investments | ||
Long-term investments: | ||
Equity securities, investment | 23,100 | |
Nonrecurring fair value measurements | ||
Geothermal equity securities | 10,707 | |
Liabilities | ||
Equity securities measured at cost | 12,400 | |
Nonrecurring Fair Value Measurements | Other | ||
Long-term investments: | ||
Equity securities, investment | 3,000 | |
Liabilities | ||
Equity securities measured at cost | 600 | |
Level 1 | ||
Short-term investments: | ||
Total short-term investments | 44,836 | 18,837 |
Nonrecurring fair value measurements | ||
Total | 199,275 | 161,671 |
Level 1 | Recurring Fair Value Measurements | ||
Long-term investments: | ||
Non-qualified supplemental savings plan | 14,597 | 14,301 |
Nonrecurring fair value measurements | ||
Total | 199,275 | 161,671 |
Liabilities | ||
Contingent consideration | 0 | 0 |
Level 1 | Recurring Fair Value Measurements | ADNOC Drilling | ||
Long-term investments: | ||
Equity securities, investment | 174,758 | 147,370 |
Level 1 | Recurring Fair Value Measurements | Galileo Technologies | ||
Long-term investments: | ||
Debt securities, investment | 0 | 0 |
Level 1 | Recurring Fair Value Measurements | Tamboran Resources Limited | ||
Long-term investments: | ||
Equity securities, investment | 9,920 | |
Level 1 | Recurring Fair Value Measurements | Geothermal Investments | ||
Long-term investments: | ||
Debt securities, investment | 0 | |
Level 1 | Recurring Fair Value Measurements | Other | ||
Long-term investments: | ||
Debt securities, investment | 0 | |
Level 1 | Nonrecurring Fair Value Measurements | ||
Nonrecurring fair value measurements | ||
Other equity securities | 0 | |
Total | 0 | 0 |
Level 1 | Nonrecurring Fair Value Measurements | Geothermal Investments | ||
Nonrecurring fair value measurements | ||
Geothermal equity securities | 0 | |
Level 2 | ||
Short-term investments: | ||
Total short-term investments | 48,764 | 98,264 |
Nonrecurring fair value measurements | ||
Total | 0 | 0 |
Level 2 | Recurring Fair Value Measurements | ||
Long-term investments: | ||
Non-qualified supplemental savings plan | 0 | 0 |
Nonrecurring fair value measurements | ||
Total | 0 | 0 |
Liabilities | ||
Contingent consideration | 0 | 0 |
Level 2 | Recurring Fair Value Measurements | ADNOC Drilling | ||
Long-term investments: | ||
Equity securities, investment | 0 | 0 |
Level 2 | Recurring Fair Value Measurements | Galileo Technologies | ||
Long-term investments: | ||
Debt securities, investment | 0 | 0 |
Level 2 | Recurring Fair Value Measurements | Tamboran Resources Limited | ||
Long-term investments: | ||
Equity securities, investment | 0 | |
Level 2 | Recurring Fair Value Measurements | Geothermal Investments | ||
Long-term investments: | ||
Debt securities, investment | 0 | |
Level 2 | Recurring Fair Value Measurements | Other | ||
Long-term investments: | ||
Debt securities, investment | 0 | |
Level 2 | Nonrecurring Fair Value Measurements | ||
Nonrecurring fair value measurements | ||
Other equity securities | 0 | |
Total | 0 | 0 |
Level 2 | Nonrecurring Fair Value Measurements | Geothermal Investments | ||
Nonrecurring fair value measurements | ||
Geothermal equity securities | 0 | |
Level 3 | ||
Short-term investments: | ||
Total short-term investments | 0 | 0 |
Nonrecurring fair value measurements | ||
Total | 39,870 | 44,272 |
Level 3 | Recurring Fair Value Measurements | ||
Long-term investments: | ||
Non-qualified supplemental savings plan | 0 | 0 |
Nonrecurring fair value measurements | ||
Total | 37,440 | 33,565 |
Liabilities | ||
Contingent consideration | 9,455 | 4,022 |
Level 3 | Recurring Fair Value Measurements | ADNOC Drilling | ||
Long-term investments: | ||
Equity securities, investment | 0 | 0 |
Level 3 | Recurring Fair Value Measurements | Galileo Technologies | ||
Long-term investments: | ||
Debt securities, investment | 35,434 | 33,000 |
Level 3 | Recurring Fair Value Measurements | Tamboran Resources Limited | ||
Long-term investments: | ||
Equity securities, investment | 0 | |
Level 3 | Recurring Fair Value Measurements | Geothermal Investments | ||
Long-term investments: | ||
Debt securities, investment | 2,006 | |
Level 3 | Recurring Fair Value Measurements | Other | ||
Long-term investments: | ||
Debt securities, investment | 565 | |
Level 3 | Nonrecurring Fair Value Measurements | ||
Nonrecurring fair value measurements | ||
Geothermal equity securities | 2,400 | |
Other equity securities | 2,430 | |
Total | 2,430 | 10,707 |
Level 3 | Nonrecurring Fair Value Measurements | Geothermal Investments | ||
Nonrecurring fair value measurements | ||
Geothermal equity securities | 10,707 | |
Corporate debt securities | ||
Short-term investments: | ||
Total short-term investments | 48,764 | 98,264 |
Corporate debt securities | Level 1 | ||
Short-term investments: | ||
Total short-term investments | 0 | 0 |
Corporate debt securities | Level 2 | ||
Short-term investments: | ||
Total short-term investments | 48,764 | 98,264 |
Corporate debt securities | Level 3 | ||
Short-term investments: | ||
Total short-term investments | 0 | 0 |
U.S. government and federal agency securities | ||
Short-term investments: | ||
Total short-term investments | 44,836 | 18,837 |
U.S. government and federal agency securities | Level 1 | ||
Short-term investments: | ||
Total short-term investments | 44,836 | 18,837 |
U.S. government and federal agency securities | Level 2 | ||
Short-term investments: | ||
Total short-term investments | 0 | 0 |
U.S. government and federal agency securities | Level 3 | ||
Short-term investments: | ||
Total short-term investments | $ 0 | $ 0 |
FAIR VALUE MEASUREMENT OF FIN_4
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Oct. 31, 2022 | Apr. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
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 | $ 27,400 | $ 47,400 | ||||
Proceeds from sale of long-term investments | 0 | 22,042 | $ 0 | |||
Gain on investment securities | 11,299 | $ 57,937 | $ 6,727 | |||
Unrealized loss on investments | $ 4,200 | |||||
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) | 159,700,000 | 159,700,000 | ||||
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% | 1% | ||||
Schlumberger, Ltd | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Sale of equity securities, number of shares sold (in shares) | 467,500 | |||||
Proceeds from sale of long-term investments | $ 22,000 | |||||
Gain on investment securities | 8,200 | |||||
Gain (loss) on sale of investment securities | 500 | |||||
Gain (loss) on valuation adjustment of investment | $ 7,700 | |||||
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) | 106,000,000 | |||||
Tamboran Resources Limited | Tamboran Resources Limited | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Ownership percentage (as a percent) | 6.20% | |||||
Galileo Technologies | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Payments to acquire investments | $ 33,000 |
FAIR VALUE MEASUREMENT OF FIN_5
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS - Level 3 Unobservable Inputs (Details) - Galileo Technologies - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Recurring Fair Value Measurements | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value (in thousands) | $ 35,434 | $ 33,000 |
Level 3 | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Discount rate | 19.20% | 22.40% |
Risk-free rate | 4.30% | 4% |
Equity volatility | 92% | 92.50% |
Level 3 | Recurring Fair Value Measurements | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value (in thousands) | $ 35,434 | $ 33,000 |
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) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Reconciliation of changes in the fair value of our financial assets | ||
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling, general and administrative | Selling, general and administrative |
Reconciliation of changes in the fair value of our financial liabilities | ||
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling, general and administrative | Selling, general and administrative |
Level 3 | ||
Reconciliation of changes in the fair value of our financial assets | ||
Assets at beginning of period | $ 23,745 | $ 2,865 |
Purchases | 4,487 | 15,177 |
Transfers in/(out) | 0 | 3,000 |
Unrealized gain included in earnings | 0 | 2,703 |
Assets at end of period | 28,232 | 23,745 |
Reconciliation of changes in the fair value of our financial liabilities | ||
Liabilities at beginning of period | 4,022 | 2,996 |
Additions | 500 | 1,500 |
Total gains or losses included in earnings | 7,808 | (224) |
Settlements | (2,875) | (250) |
Liabilities at end of period | 9,455 | 4,022 |
Level 3 | Galileo Technologies | ||
Reconciliation of changes in the fair value of our financial assets | ||
Assets at beginning of period | 33,565 | 500 |
Purchases | 2,122 | 36,065 |
Accrued interest | 2,434 | 0 |
Transfers in/(out) | 0 | (3,000) |
Reserves | (681) | 0 |
Assets at end of period | $ 37,440 | $ 33,565 |
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 | 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 | $ 545,144 | $ 542,610 |
Carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, net, carrying value | 545,100 | 542,600 |
Fair value | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, net, fair value | $ 435,500 | $ 430,700 |
EMPLOYEE BENEFIT PLANS - Reconc
EMPLOYEE BENEFIT PLANS - Reconciliation of the Changes in the Pension Benefit Obligations and Fair Value of Pension Plan Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Retirement Benefits [Abstract] | |||
Accumulated benefit obligation | $ 54,646 | $ 60,463 | |
Changes in projected benefit obligations: | |||
Projected benefit obligation at beginning of year | 60,463 | 110,352 | |
Interest cost | $ 3,086 | $ 2,537 | $ 2,925 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling, general and administrative | Selling, general and administrative | |
Actuarial gain | $ (4,940) | $ (16,260) | |
Benefits paid | (3,963) | (36,166) | |
Projected benefit obligation at end of year | 54,646 | 60,463 | 110,352 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 41,764 | 87,255 | |
Actual return on plan assets | 979 | (14,324) | |
Employer contribution | 5,000 | 5,000 | |
Benefits paid | (3,963) | (36,167) | |
Fair value of plan assets at end of year | 43,780 | 41,764 | $ 87,255 |
Funded status of the plan at end of year | $ (10,866) | $ (18,699) |
EMPLOYEE BENEFIT PLANS - Narrat
EMPLOYEE BENEFIT PLANS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Retirement Benefits [Abstract] | |||
Liability for net actuarial loss outstanding | $ (10.9) | $ (18.7) | |
Net actuarial loss | 10.4 | 15.7 | |
Employer contributions | 5 | 5 | $ 5 |
Pension settlement charges | $ 7.8 | ||
Percentage of employer's contribution under 401(k)/ thrift plan matching the first 5 percent of participant's compensation subject to certain limitations | 100% | ||
Percentage of participant's compensation eligible for employer's matching contribution | 5% | ||
Annual expense incurred for defined contribution plan | $ 25.8 | $ 24.8 | $ 13.6 |
EMPLOYEE BENEFIT PLANS - Weight
EMPLOYEE BENEFIT PLANS - Weighted Average Assumptions Used for the Pension Calculations (Details) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Weighted average assumptions used for the pension calculations | |||
Discount rate for net periodic benefit costs | 5.44% | 2.75% | 2.66% |
Discount rate for year-end obligations | 5.77% | 5.44% | 2.75% |
Expected return on plan assets | 4.50% | 4.25% | 3.50% |
EMPLOYEE BENEFIT PLANS - Compon
EMPLOYEE BENEFIT PLANS - Components of Net Periodic Pension Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Retirement Benefits [Abstract] | |||
Interest cost | $ 3,086 | $ 2,537 | $ 2,925 |
Expected return on plan assets | $ (1,762) | $ (2,481) | $ (3,722) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling, general and administrative | Selling, general and administrative | Selling, general and administrative |
Recognized net actuarial loss | $ 1,139 | $ 2,080 | $ 3,205 |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling, general and administrative | Selling, general and administrative | Selling, general and administrative |
Settlement expense | $ 0 | $ 9,031 | $ 3,448 |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Settlement Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling, general and administrative | Selling, general and administrative | Selling, general and administrative |
Other | $ 0 | $ 0 | $ (81) |
Net pension expense | $ 2,463 | $ 11,167 | $ 5,775 |
EMPLOYEE BENEFIT PLANS - Expect
EMPLOYEE BENEFIT PLANS - Expected Benefits to be Paid from the Pension Plan in Each of the Next Five Fiscal Years and Thereafter (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Retirement Benefits [Abstract] | |
2024 | $ 4,790 |
2025 | 5,698 |
2026 | 5,009 |
2027 | 5,114 |
2028 | 4,494 |
2029 – 2033 | 21,168 |
Total | $ 46,273 |
EMPLOYEE BENEFIT PLANS - Target
EMPLOYEE BENEFIT PLANS - Target Allocation and Asset Allocation for the Pension Plan (Details) | Sep. 30, 2023 | Sep. 30, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 100% | |
Asset allocation | 100% | 100% |
U.S. equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 17% | |
Asset allocation | 17% | 18% |
International equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 12% | |
Asset allocation | 12% | 11% |
Fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 71% | |
Asset allocation | 71% | 71% |
EMPLOYEE BENEFIT PLANS - Fair V
EMPLOYEE BENEFIT PLANS - Fair Value of Pension Plan Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | $ 43,780 | $ 41,764 | $ 87,255 |
Fair value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 43,780 | 41,764 | |
Fair value | Short-term investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 1,018 | 555 | |
Fair value | Mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 42,738 | 41,150 | |
Fair value | Domestic stock funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 7,299 | 7,318 | |
Fair value | Bond funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 30,319 | 29,093 | |
Fair value | International stock funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 5,120 | 4,739 | |
Fair value | Oil and gas properties | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 24 | 59 | |
Fair value | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 43,756 | 41,705 | |
Fair value | Level 1 | Short-term investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 1,018 | 555 | |
Fair value | Level 1 | Mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 42,738 | 41,150 | |
Fair value | Level 1 | Domestic stock funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 7,299 | 7,318 | |
Fair value | Level 1 | Bond funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 30,319 | 29,093 | |
Fair value | Level 1 | International stock funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 5,120 | 4,739 | |
Fair value | Level 1 | Oil and gas properties | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Fair value | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Fair value | Level 2 | Short-term investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Fair value | Level 2 | Mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Fair value | Level 2 | Domestic stock funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Fair value | Level 2 | Bond funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Fair value | Level 2 | International stock funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Fair value | Level 2 | Oil and gas properties | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Fair value | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 24 | 59 | |
Fair value | Level 3 | Short-term investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Fair value | Level 3 | Mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Fair value | Level 3 | Domestic stock funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Fair value | Level 3 | Bond funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Fair value | Level 3 | International stock funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Fair value | Level 3 | Oil and gas properties | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | $ 24 | $ 59 |
SUPPLEMENTAL BALANCE SHEET IN_3
SUPPLEMENTAL BALANCE SHEET INFORMATION - Activity in the Reserve for Bad Debts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Reserve for credit losses: | |||
Balance at October 1, | $ 2,975 | $ 2,068 | $ 1,820 |
Provision for credit loss | 534 | 1,077 | 203 |
(Write-off) recovery of credit loss | (821) | (170) | 45 |
Balance at September 30, | $ 2,688 | $ 2,975 | $ 2,068 |
SUPPLEMENTAL BALANCE SHEET IN_4
SUPPLEMENTAL BALANCE SHEET INFORMATION - Accounts Receivable, Prepaid Expenses and Other Current Assets, Accrued Liabilities and Long-Term Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Accounts receivable, net of reserve: | ||
Trade receivables | $ 403,091 | $ 430,944 |
Income tax receivable | 1,097 | 27,769 |
Total accounts receivable, net of reserve | 404,188 | 458,713 |
Prepaid expenses and other current assets, net: | ||
Deferred mobilization | 7,873 | 5,048 |
Prepaid insurance | 11,160 | 7,498 |
Prepaid value added tax | 7,867 | 6,628 |
Prepaid maintenance and rent | 12,278 | 13,092 |
Accrued demobilization, net | 6,560 | 6,319 |
Prepaid equipment | 21,821 | 10,091 |
Insurance Recoverable | 28,129 | 9,684 |
Other | 2,039 | 8,103 |
Total prepaid expenses and other current assets, net | 97,727 | 66,463 |
Accrued liabilities: | ||
Accrued operating costs | 20,618 | 26,539 |
Payroll and employee benefits | 55,596 | 58,604 |
Taxes payable, other than income tax | 32,537 | 26,786 |
Self-insurance liabilities | 60,921 | 38,422 |
Deferred income | 23,441 | 19,821 |
Deferred mobilization revenue | 10,247 | 8,959 |
Accrued income taxes | 24,495 | 40,833 |
Contingent consideration | 9,455 | 2,750 |
Operating lease liability | 13,772 | 12,382 |
Other | 11,803 | 6,055 |
Total accrued liabilities | 262,885 | 241,151 |
Noncurrent liabilities — Other: | ||
Pension and other non-qualified retirement plans | 33,048 | 40,423 |
Self-insurance liabilities | 42,285 | 38,422 |
Contingent liability | 0 | 1,272 |
Deferred revenue | 8,135 | 3,162 |
Uncertain tax positions including interest and penalties | 3,136 | 2,381 |
Operating lease liability | 41,038 | 27,350 |
Other | 487 | 1,917 |
Total noncurrent liabilities — other | $ 128,129 | $ 114,927 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | |
Jul. 31, 2023 | Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Purchase commitments for equipment, parts and supplies | $ 130.7 | |
Settlement amount | $ 19.5 | |
Insurance deductible | $ 3 |
BUSINESS SEGMENTS AND GEOGRAP_3
BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION - Schedule of Financial Information of Reportable Segments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 2,872,421 | $ 2,058,944 | $ 1,218,568 |
Segment operating income (loss) | 561,889 | 45,292 | (428,549) |
Depreciation and amortization | 382,314 | 403,170 | 419,726 |
Intersegment | |||
Segment Reporting Information [Line Items] | |||
Revenues | (67,428) | (57,047) | (35,416) |
Segment operating income (loss) | 4,671 | (6,422) | (1,580) |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 2,872,421 | 2,058,944 | 1,218,568 |
Segment operating income (loss) | 667,929 | 151,267 | (303,494) |
Depreciation and amortization | 371,227 | 390,282 | 406,411 |
North America Solutions | |||
Segment Reporting Information [Line Items] | |||
Revenues | 2,519,743 | 1,788,167 | 1,026,364 |
North America Solutions | Intersegment | |||
Segment Reporting Information [Line Items] | |||
Revenues | 0 | 0 | 0 |
North America Solutions | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 2,519,743 | 1,788,167 | 1,026,364 |
Segment operating income (loss) | 625,467 | 121,893 | (287,176) |
Depreciation and amortization | 353,976 | 375,250 | 392,415 |
Offshore Gulf of Mexico | |||
Segment Reporting Information [Line Items] | |||
Revenues | 130,244 | 125,465 | 126,399 |
Offshore Gulf of Mexico | Intersegment | |||
Segment Reporting Information [Line Items] | |||
Revenues | 0 | 0 | 0 |
Offshore Gulf of Mexico | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 130,244 | 125,465 | 126,399 |
Segment operating income (loss) | 22,806 | 23,214 | 15,969 |
Depreciation and amortization | 7,622 | 9,175 | 10,557 |
International Solutions | |||
Segment Reporting Information [Line Items] | |||
Revenues | 212,566 | 136,072 | 57,917 |
International Solutions | Intersegment | |||
Segment Reporting Information [Line Items] | |||
Revenues | 0 | 0 | 0 |
International Solutions | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 212,566 | 136,072 | 57,917 |
Segment operating income (loss) | (891) | (138) | (21,003) |
Depreciation and amortization | 7,615 | 4,156 | 2,013 |
Other | |||
Segment Reporting Information [Line Items] | |||
Revenues | 9,868 | 9,240 | 7,888 |
Other | Intersegment | |||
Segment Reporting Information [Line Items] | |||
Revenues | (67,428) | (57,047) | (35,416) |
Other | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 77,296 | 66,287 | 43,304 |
Segment operating income (loss) | 15,876 | 12,720 | (9,704) |
Depreciation and amortization | $ 2,014 | $ 1,701 | $ 1,426 |
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 | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Abstract] | |||
Operating income (loss) | $ 561,889 | $ 45,292 | $ (428,549) |
Gain on reimbursement of drilling equipment | 48,173 | 29,443 | 12,322 |
Other gain (loss) on sale of assets | (8,016) | 5,432 | (11,280) |
Corporate selling, general and administrative costs, corporate depreciation and corporate restructuring charges | 206,657 | 182,366 | 172,195 |
Other income (expense) | |||
Interest and dividend income | 28,393 | 18,090 | 10,254 |
Interest expense | (17,283) | (19,203) | (23,955) |
Gain on investment securities | 11,299 | 57,937 | 6,727 |
Loss on extinguishment of debt | 0 | (60,083) | 0 |
Other | 9,081 | (10,714) | 5,652 |
Total unallocated amounts | 31,490 | (13,973) | (1,322) |
Income (loss) before income taxes | 593,379 | 31,319 | (429,871) |
Operating Segments | |||
Segment Reporting Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Abstract] | |||
Operating income (loss) | 667,929 | 151,267 | (303,494) |
Segment Reconciling Items | |||
Segment Reporting Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Abstract] | |||
Gain on reimbursement of drilling equipment | 48,173 | 29,443 | 12,322 |
Other gain (loss) on sale of assets | (8,016) | 5,432 | (11,280) |
Investments and corporate operations | |||
Segment Reporting Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Abstract] | |||
Corporate selling, general and administrative costs, corporate depreciation and corporate restructuring charges | $ (146,197) | $ (140,850) | $ (126,097) |
BUSINESS SEGMENTS AND GEOGRAP_5
BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION - Reconciliation of Segment Assets to Consolidated Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 4,381,956 | $ 4,355,531 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total assets | 3,954,955 | 3,939,096 |
Investments and corporate operations | ||
Segment Reporting Information [Line Items] | ||
Total assets | 427,001 | 416,435 |
North America Solutions | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total assets | 3,320,203 | 3,406,824 |
Offshore Gulf of Mexico | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total assets | 73,319 | 80,993 |
International Solutions | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total assets | 407,143 | 330,974 |
Other | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 154,290 | $ 120,305 |
BUSINESS SEGMENTS AND GEOGRAP_6
BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION - Revenues from External Customers and Long-Lived Assets by Country (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting Information [Line Items] | |||
Operating revenues | $ 2,872,421 | $ 2,058,944 | $ 1,218,568 |
Property, plant and equipment, net | 2,921,695 | 2,960,809 | |
United States | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 2,656,617 | 1,920,026 | 1,158,230 |
Property, plant and equipment, net | 2,813,707 | 2,872,145 | |
Argentina | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 137,420 | 91,385 | 27,855 |
Property, plant and equipment, net | 57,168 | 54,789 | |
Colombia | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 46,720 | 22,003 | 1,674 |
Property, plant and equipment, net | 20,835 | 21,809 | |
Bahrain | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 15,401 | 16,986 | 27,435 |
United Arab Emirates | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 9,716 | 5,698 | 957 |
Property, plant and equipment, net | 10,373 | 3,024 | |
Australia | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 3,350 | 0 | 0 |
Property, plant and equipment, net | 10,673 | 0 | |
Other foreign | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 3,197 | 2,846 | $ 2,417 |
Property, plant and equipment, net | $ 8,939 | $ 9,042 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - $ / shares | Oct. 17, 2023 | Sep. 06, 2023 |
Subsequent Event | ||
Dividend (in dollars per share) | $ 0.25 | |
Subsequent Event | ||
Subsequent Event | ||
Dividend (in dollars per share) | $ 0.17 |