COVER
COVER - shares | 9 Months Ended | |
Jun. 30, 2024 | Jul. 18, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
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 | 222 North Detroit Avenue, | |
Entity Address, City or Town | Tulsa | |
Entity Address, State or Province | OK | |
Entity Address, Postal Zip Code | 74103 | |
City Area Code | 918 | |
Local Phone Number | 742-5531 | |
Title of 12(b) Security | Common Stock ($0.10 par value) | |
Trading Symbol | HP | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 98,755,412 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Current Fiscal Year End Date | --09-30 | |
Entity Central Index Key | 0000046765 |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2024 | Sep. 30, 2023 |
Current Assets: | ||
Cash and cash equivalents | $ 203,633 | $ 257,174 |
Restricted cash | 78,369 | 59,064 |
Short-term investments | 86,088 | 93,600 |
Accounts receivable, net of allowance of $2,377 and $2,688, respectively | 415,395 | 404,188 |
Inventories of materials and supplies, net | 115,312 | 94,227 |
Prepaid expenses and other, net | 71,522 | 97,727 |
Assets held-for-sale | 0 | 645 |
Total current assets | 970,319 | 1,006,625 |
Investments | 292,229 | 264,947 |
Property, plant and equipment, net | 3,014,345 | 2,921,695 |
Other Noncurrent Assets: | ||
Goodwill | 45,653 | 45,653 |
Intangible assets, net | 55,752 | 60,575 |
Operating lease right-of-use assets | 57,315 | 50,400 |
Other assets, net | 49,369 | 32,061 |
Total other noncurrent assets | 208,089 | 188,689 |
Total assets | 4,484,982 | 4,381,956 |
Current Liabilities: | ||
Accounts payable | 158,896 | 130,852 |
Dividends payable | 42,045 | 25,194 |
Accrued liabilities | 255,851 | 262,885 |
Total current liabilities | 456,792 | 418,931 |
Noncurrent Liabilities: | ||
Long-term debt, net | 545,589 | 545,144 |
Deferred income taxes | 494,412 | 517,809 |
Other | 131,344 | 128,129 |
Total noncurrent liabilities | 1,171,345 | 1,191,082 |
Commitments and Contingencies (Note 11) | ||
Shareholders' Equity: | ||
Common stock, $0.10 par value, 160,000,000 shares authorized, 112,222,865 shares issued as of June 30, 2024 and September 30, 2023, and 98,755,412 and 99,426,526 shares outstanding as of June 30, 2024 and September 30, 2023, respectively | 11,222 | 11,222 |
Preferred stock, no par value, 1,000,000 shares authorized, no shares issued | 0 | 0 |
Additional paid-in capital | 510,379 | 525,369 |
Retained earnings | 2,833,136 | 2,707,715 |
Accumulated other comprehensive loss | (8,499) | (7,981) |
Treasury stock, at cost, 13,467,453 shares and 12,796,339 shares as of June 30, 2024 and September 30, 2023, respectively | (489,393) | (464,382) |
Total shareholders’ equity | 2,856,845 | 2,771,943 |
Total liabilities and shareholders' equity | $ 4,484,982 | $ 4,381,956 |
UNAUDITED CONDENSED CONSOLIDA_2
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2024 | Sep. 30, 2023 |
Current Assets: | ||
Allowance for accounts receivable | $ 2,377 | $ 2,688 |
Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized (in shares) | 160,000,000 | 160,000,000 |
Common stock, shares issued (in shares) | 112,222,865 | 112,222,865 |
Common stock, shares outstanding (in shares) | 98,755,412 | 99,426,526 |
Preferred Stock | ||
Preferred stock shares par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Treasury Stock | ||
Treasury stock, shares (in shares) | 13,467,453 | 12,796,339 |
UNAUDITED CONDENSED CONSOLIDA_3
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
OPERATING REVENUES | ||||
Drilling services | $ 695,139,000 | $ 721,567,000 | $ 2,054,835,000 | $ 2,205,419,000 |
Other | 2,585,000 | 2,389,000 | 7,979,000 | 7,396,000 |
Total operating revenues | 697,724,000 | 723,956,000 | 2,062,814,000 | 2,212,815,000 |
OPERATING COSTS AND EXPENSES | ||||
Drilling services operating expenses, excluding depreciation and amortization | 417,028,000 | 429,182,000 | 1,222,182,000 | 1,306,543,000 |
Other operating expenses | 1,144,000 | 1,003,000 | 3,307,000 | 3,317,000 |
Depreciation and amortization | 97,816,000 | 94,811,000 | 296,352,000 | 287,721,000 |
Research and development | 10,555,000 | 7,085,000 | 32,105,000 | 22,720,000 |
Selling, general and administrative | 66,870,000 | 49,271,000 | 185,484,000 | 150,581,000 |
Asset impairment charges | 0 | 0 | 0 | 12,097,000 |
Gain on reimbursement of drilling equipment | (9,732,000) | (10,642,000) | (24,687,000) | (37,940,000) |
Other (gain) loss on sale of assets | (2,730,000) | (4,504,000) | (2,718,000) | 394,000 |
Total operating costs and expenses | 586,411,000 | 575,214,000 | 1,717,461,000 | 1,744,645,000 |
OPERATING INCOME | 111,313,000 | 148,742,000 | 345,353,000 | 468,170,000 |
Other income (expense) | ||||
Interest and dividend income | 11,888,000 | 10,748,000 | 29,189,000 | 20,508,000 |
Interest expense | (4,336,000) | (4,324,000) | (12,969,000) | (12,918,000) |
Gain (loss) on investment securities | 389,000 | (18,538,000) | 102,000 | 6,123,000 |
Other | 3,134,000 | (672,000) | 2,991,000 | (1,218,000) |
Total unallocated amounts | 11,075,000 | (12,786,000) | 19,313,000 | 12,495,000 |
Income before income taxes | 122,388,000 | 135,956,000 | 364,666,000 | 480,665,000 |
Income tax expense | 33,703,000 | 40,663,000 | 95,977,000 | 124,187,000 |
NET INCOME | $ 88,685,000 | $ 95,293,000 | $ 268,689,000 | $ 356,478,000 |
Basic earnings per common share | ||||
Net income (loss) (in dollars per share) | $ 0.89 | $ 0.93 | $ 2.68 | $ 3.40 |
Diluted earnings per common share: | ||||
Net income (in dollars per share) | $ 0.88 | $ 0.93 | $ 2.67 | $ 3.39 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 98,752 | 101,163 | 98,891 | 103,464 |
Diluted (in shares) | 99,007 | 101,550 | 99,116 | 103,852 |
UNAUDITED CONDENSED CONSOLIDA_4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 88,685 | $ 95,293 | $ 268,689 | $ 356,478 |
Other comprehensive income (loss), net of income taxes: | ||||
Net change related to employee benefit plans, net of income taxes of $(39.5) thousand and $(118.5) thousand for the three and nine months ended June 30, 2024, respectively, and $(59.6) thousand and $(209.8) thousand for the three and nine months ended June 30, 2023, respectively | 134 | 255 | 402 | 767 |
Unrealized loss on available-for-sale debt security, net of income taxes of $270.9 thousand for the three and nine months ended June 30, 2024, respectively | (920) | 0 | (920) | 0 |
Other comprehensive income (loss) | (786) | 255 | (518) | 767 |
Comprehensive income | $ 87,899 | $ 95,548 | $ 268,171 | $ 357,245 |
UNAUDITED CONDENSED CONSOLIDA_5
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Income tax on minimum pension liability adjustments | $ (39,500) | $ (59,600) | $ (118,500) | $ (209,800) |
Other Comprehensive (Income) Loss, Other, Tax | $ 270,900 | $ 270,900 |
UNAUDITED CONDENSED CONSOLIDA_6
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Beginning balance (in shares) at Sep. 30, 2022 | 112,222,000 | |||||
Beginning balance at Sep. 30, 2022 | $ 2,765,472 | $ 11,222 | $ 528,278 | $ 2,473,572 | $ (12,072) | $ (235,528) |
Beginning balance (in shares) at Sep. 30, 2022 | 6,929,000 | |||||
Increase (Decrease) in Shareholders' Equity | ||||||
Net income | 97,145 | 97,145 | ||||
Other comprehensive income (loss) | 256 | 256 | ||||
Dividends declared | (76,611) | (76,611) | ||||
Vesting of restricted stock awards, net of shares withheld for employee taxes | (9,483) | (22,776) | $ 13,293 | |||
Vesting of restricted stock awards, net of shares withheld for employee taxes (in shares) | (449,000) | |||||
Stock-based compensation | 8,273 | 8,273 | ||||
Share repurchases (in shares) | 844,000 | |||||
Share repurchases | (39,060) | $ (39,060) | ||||
Other | (847) | (847) | ||||
Ending balance (in shares) at Dec. 31, 2022 | 112,222,000 | |||||
Ending balance at Dec. 31, 2022 | 2,745,145 | $ 11,222 | 512,928 | 2,494,106 | (11,816) | $ (261,295) |
Ending balance (in shares) at Dec. 31, 2022 | 7,324,000 | |||||
Beginning balance (in shares) at Sep. 30, 2022 | 112,222,000 | |||||
Beginning balance at Sep. 30, 2022 | 2,765,472 | $ 11,222 | 528,278 | 2,473,572 | (12,072) | $ (235,528) |
Beginning balance (in shares) at Sep. 30, 2022 | 6,929,000 | |||||
Increase (Decrease) in Shareholders' Equity | ||||||
Net income | 356,478 | |||||
Other comprehensive income (loss) | 767 | |||||
Ending balance (in shares) at Jun. 30, 2023 | 112,222,000 | |||||
Ending balance at Jun. 30, 2023 | 2,708,081 | $ 11,222 | 517,259 | 2,655,287 | (11,305) | $ (464,382) |
Ending balance (in shares) at Jun. 30, 2023 | 12,796,000 | |||||
Beginning balance (in shares) at Dec. 31, 2022 | 112,222,000 | |||||
Beginning balance at Dec. 31, 2022 | 2,745,145 | $ 11,222 | 512,928 | 2,494,106 | (11,816) | $ (261,295) |
Beginning balance (in shares) at Dec. 31, 2022 | 7,324,000 | |||||
Increase (Decrease) in Shareholders' Equity | ||||||
Net income | 164,040 | 164,040 | ||||
Other comprehensive income (loss) | 256 | 256 | ||||
Dividends declared | (50,046) | (50,046) | ||||
Vesting of restricted stock awards, net of shares withheld for employee taxes | (4,927) | (11,769) | $ 6,842 | |||
Vesting of restricted stock awards, net of shares withheld for employee taxes (in shares) | (229,000) | |||||
Stock-based compensation | 7,431 | 7,431 | ||||
Share repurchases (in shares) | 2,543,000 | |||||
Share repurchases | (106,708) | $ (106,708) | ||||
Other | 615 | 615 | ||||
Ending balance (in shares) at Mar. 31, 2023 | 112,222,000 | |||||
Ending balance at Mar. 31, 2023 | 2,755,806 | $ 11,222 | 509,205 | 2,608,100 | (11,560) | $ (361,161) |
Ending balance (in shares) at Mar. 31, 2023 | 9,638,000 | |||||
Increase (Decrease) in Shareholders' Equity | ||||||
Net income | 95,293 | 95,293 | ||||
Other comprehensive income (loss) | 255 | 255 | ||||
Dividends declared | (48,106) | (48,106) | ||||
Stock-based compensation | 8,180 | 8,180 | ||||
Share repurchases (in shares) | 3,158,000 | |||||
Share repurchases | (103,221) | $ (103,221) | ||||
Other | (126) | (126) | ||||
Ending balance (in shares) at Jun. 30, 2023 | 112,222,000 | |||||
Ending balance at Jun. 30, 2023 | $ 2,708,081 | $ 11,222 | 517,259 | 2,655,287 | (11,305) | $ (464,382) |
Ending balance (in shares) at Jun. 30, 2023 | 12,796,000 | |||||
Beginning balance (in shares) at Sep. 30, 2023 | 99,426,526 | 112,222,000 | ||||
Beginning balance at Sep. 30, 2023 | $ 2,771,943 | $ 11,222 | 525,369 | 2,707,715 | (7,981) | $ (464,382) |
Beginning balance (in shares) at Sep. 30, 2023 | 12,796,339 | 12,796,000 | ||||
Increase (Decrease) in Shareholders' Equity | ||||||
Net income | $ 95,173 | 95,173 | ||||
Other comprehensive income (loss) | 134 | 134 | ||||
Dividends declared | (59,094) | (59,094) | ||||
Vesting of restricted stock awards, net of shares withheld for employee taxes | (8,820) | (26,661) | $ 17,841 | |||
Vesting of restricted stock awards, net of shares withheld for employee taxes (in shares) | (495,000) | |||||
Stock-based compensation | 7,672 | 7,672 | ||||
Share repurchases (in shares) | 1,298,000 | |||||
Share repurchases | (47,654) | $ (47,654) | ||||
Other | 292 | 292 | ||||
Ending balance (in shares) at Dec. 31, 2023 | 112,222,000 | |||||
Ending balance at Dec. 31, 2023 | $ 2,759,646 | $ 11,222 | 506,672 | 2,743,794 | (7,847) | $ (494,195) |
Ending balance (in shares) at Dec. 31, 2023 | 13,599,000 | |||||
Beginning balance (in shares) at Sep. 30, 2023 | 99,426,526 | 112,222,000 | ||||
Beginning balance at Sep. 30, 2023 | $ 2,771,943 | $ 11,222 | 525,369 | 2,707,715 | (7,981) | $ (464,382) |
Beginning balance (in shares) at Sep. 30, 2023 | 12,796,339 | 12,796,000 | ||||
Increase (Decrease) in Shareholders' Equity | ||||||
Net income | $ 268,689 | |||||
Other comprehensive income (loss) | $ (518) | |||||
Ending balance (in shares) at Jun. 30, 2024 | 98,755,412 | 112,222,000 | ||||
Ending balance at Jun. 30, 2024 | $ 2,856,845 | $ 11,222 | 510,379 | 2,833,136 | (8,499) | $ (489,393) |
Ending balance (in shares) at Jun. 30, 2024 | 13,467,453 | 13,467,000 | ||||
Beginning balance (in shares) at Dec. 31, 2023 | 112,222,000 | |||||
Beginning balance at Dec. 31, 2023 | $ 2,759,646 | $ 11,222 | 506,672 | 2,743,794 | (7,847) | $ (494,195) |
Beginning balance (in shares) at Dec. 31, 2023 | 13,599,000 | |||||
Increase (Decrease) in Shareholders' Equity | ||||||
Net income | 84,831 | 84,831 | ||||
Other comprehensive income (loss) | 134 | 134 | ||||
Dividends declared | (42,130) | (42,130) | ||||
Vesting of restricted stock awards, net of shares withheld for employee taxes | (3,356) | (12,012) | $ 8,656 | |||
Vesting of restricted stock awards, net of shares withheld for employee taxes (in shares) | (230,000) | |||||
Stock-based compensation | 8,429 | 8,429 | ||||
Share repurchases (in shares) | 102,000 | |||||
Share repurchases | (3,977) | $ (3,977) | ||||
Other | (503) | (503) | ||||
Ending balance (in shares) at Mar. 31, 2024 | 112,222,000 | |||||
Ending balance at Mar. 31, 2024 | 2,803,074 | $ 11,222 | 502,586 | 2,786,495 | (7,713) | $ (489,516) |
Ending balance (in shares) at Mar. 31, 2024 | 13,471,000 | |||||
Increase (Decrease) in Shareholders' Equity | ||||||
Net income | 88,685 | 88,685 | ||||
Other comprehensive income (loss) | (786) | (786) | ||||
Dividends declared | (42,044) | (42,044) | ||||
Vesting of restricted stock awards, net of shares withheld for employee taxes | 0 | (123) | $ 123 | |||
Vesting of restricted stock awards, net of shares withheld for employee taxes (in shares) | (4,000) | |||||
Stock-based compensation | 7,676 | 7,676 | ||||
Other | $ 240 | 240 | ||||
Ending balance (in shares) at Jun. 30, 2024 | 98,755,412 | 112,222,000 | ||||
Ending balance at Jun. 30, 2024 | $ 2,856,845 | $ 11,222 | $ 510,379 | $ 2,833,136 | $ (8,499) | $ (489,393) |
Ending balance (in shares) at Jun. 30, 2024 | 13,467,453 | 13,467,000 |
UNAUDITED CONDENSED CONSOLIDA_7
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |||||
Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Dividends declared (in dollars per share) | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 |
Dividends declared, supplemental (in dollars per share) | $ 0.17 | $ 0.17 | $ 0.34 | $ 0.235 | $ 0.47 |
UNAUDITED CONDENSED CONSOLIDA_8
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 268,689,000 | $ 356,478,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 296,352,000 | 287,721,000 |
Asset impairment charges | 0 | 12,097,000 |
Provision for credit loss | (213,000) | 2,165,000 |
Stock-based compensation | 23,777,000 | 23,884,000 |
Gain on investment securities | (102,000) | (6,123,000) |
Gain on reimbursement of drilling equipment | (24,687,000) | (37,940,000) |
Other (gain) loss on sale of assets | 2,718,000 | (394,000) |
Deferred income tax expense (benefit) | (23,634,000) | 4,197,000 |
Other | 3,011,000 | 3,960,000 |
Change in assets and liabilities | ||
Accounts receivable | (6,936,000) | 6,529,000 |
Inventories of materials and supplies | (20,595,000) | (13,899,000) |
Prepaid expenses and other | (4,042,000) | (27,589,000) |
Other noncurrent assets | (20,165,000) | (3,413,000) |
Accounts payable | 21,959,000 | 24,408,000 |
Accrued liabilities | 7,744,000 | (15,366,000) |
Deferred income tax liability | 390,000 | (695,000) |
Other noncurrent liabilities | (8,359,000) | 2,980,000 |
Net cash provided by operating activities | 515,907,000 | 619,000,000 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (389,095,000) | (281,790,000) |
Purchase of short-term investments | (148,451,000) | (102,140,000) |
Purchase of long-term investments | (9,167,000) | (18,813,000) |
Proceeds from sale of short-term investments | 152,034,000 | 148,651,000 |
Insurance proceeds from involuntary conversion | 5,533,000 | 0 |
Proceeds from asset sales | 35,148,000 | 63,048,000 |
Net cash used in investing activities | (353,998,000) | (191,044,000) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Dividends paid | (126,417,000) | (152,579,000) |
Payments for employee taxes on net settlement of equity awards | (12,176,000) | (14,410,000) |
Payment of contingent consideration from acquisition of business | (6,250,000) | (250,000) |
Share repurchases | (51,302,000) | (247,213,000) |
Other | 0 | (540,000) |
Net cash used in financing activities | (196,145,000) | (414,992,000) |
Net increase (decrease) in cash and cash equivalents and restricted cash | (34,236,000) | 12,964,000 |
Cash and cash equivalents and restricted cash, beginning of period | 316,238,000 | 269,009,000 |
Cash and cash equivalents and restricted cash, end of period | 282,002,000 | 281,973,000 |
Cash paid/(received) during the period: | ||
Interest paid | 8,150,000 | 8,958,000 |
Income tax paid | 139,594,000 | 155,725,000 |
Income tax received | 0 | (26,654,000) |
Payments for operating leases | 10,235,000 | 9,049,000 |
Non-cash operating and investing activities: | ||
Change in accounts payable and accrued liabilities related to purchases of property, plant and equipment | $ (9,052,000) | $ 2,031,000 |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 9 Months Ended |
Jun. 30, 2024 | |
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, International Solutions and Offshore Gulf of Mexico. 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 12—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, and West Virginia. Our International Solutions operations have rigs and/or services primarily located in five international locations: Argentina, Australia, Bahrain, Colombia and the United Arab Emirates. Additionally, we are preparing to commence operations in Saudi Arabia. Our Offshore Gulf of Mexico operations are conducted in Louisiana and in U.S. federal waters in the Gulf of Mexico. 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 | 9 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RELATED RISKS AND UNCERTAINTIES | NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, RELATED RISKS AND UNCERTAINTIES Interim Financial Information The accompanying Unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) pertaining to interim financial information. Accordingly, these interim financial statements do not include all information or footnote disclosures required by U.S. GAAP for complete financial statements and, therefore, should be read in conjunction with the Consolidated Financial Statements and notes thereto in our 2023 Annual Report on Form 10-K and other current filings with the SEC. In the opinion of management, all adjustments, consisting of those of a normal recurring nature, necessary to present fairly the results of the periods presented have been included. The results of operations for the interim periods presented may not necessarily be indicative of the results to be expected for the full year. Income from discontinued operations was presented as a separate line item on our Unaudited Condensed Consolidated Statements of Operations during the three and nine months ended June 30, 2023. To conform with the current fiscal year presentation, we reclassified amounts previously presented in Income from discontinued operations, which were not material, to Other within Other income (expense) on our Unaudited Condensed Consolidated Statements of Operations for the three and nine months ended June 30, 2023. Principles of Consolidation The Unaudited Condensed Consolidated Financial Statements include the accounts of H&P and its domestic and foreign subsidiaries. Consolidation of a subsidiary begins when the Company gains control over the subsidiary and ceases when the Company loses control of the subsidiary. Specifically, income, expenses and other comprehensive income or loss of a subsidiary acquired or disposed of during the fiscal year are included in the Unaudited Condensed Consolidated Statements of Operations and Unaudited Condensed Consolidated Statements of Comprehensive Income from the date the Company gains control until the date when the Company ceases to control the subsidiary. All intercompany accounts and transactions have been eliminated upon consolidation. Cash, Cash Equivalents, and Restricted Cash Cash and cash equivalents include cash on hand, demand deposits with banks and all highly liquid investments with original maturities of three months or less. Our cash, cash equivalents and short-term investments are subject to potential credit risk, and certain of our cash accounts carry balances greater than the federally insured limits. We recorded restricted cash of $78.4 million and $61.4 million at June 30, 2024 and 2023, respectively, and $59.1 million and $36.9 million at September 30, 2023 and 2022, respectively. All restricted cash at June 30, 2024 represents an amount management has elected to restrict for the purpose of potential insurance claims in our wholly-owned captive insurance companies. Of the total at September 30, 2023, $0.7 million is related to the acquisition of drilling technology companies, and $58.4 million represents an amount management has elected to restrict for the purpose of potential insurance claims in our wholly-owned captive insurance companies. The restricted amounts are primarily invested in short-term money market securities. Cash, cash equivalents, and restricted cash are reflected on the Unaudited Condensed Consolidated Balance Sheets as follows: June 30, September 30, (in thousands) 2024 2023 2023 2022 Cash and cash equivalents $ 203,633 $ 220,609 $ 257,174 $ 232,131 Restricted cash 78,369 61,364 59,064 36,246 Restricted cash - long-term: Other assets, net — — — 632 Total cash, cash equivalents, and restricted cash $ 282,002 $ 281,973 $ 316,238 $ 269,009 Related Party Transactions In October 2022, we made a $14.1 million equity investment, representing 106.0 million common shares in Tamboran Resources Limited ("Tamboran Resources"). In December 2023, all shares of Tamboran Resources were transferred to Tamboran Resources Corporation ("Tamboran Corp.") in exchange for depository interests in Tamboran Corp. Depository interests, referred to as CHESS Depository Interests, each representing beneficial interests of 1/200th of a share of Tamboran Corp. common stock, are listed on the Australian Stock Exchange under the ticker symbol "TBN." Tamboran Corp. is focused on developing a natural gas resource in Australia's Beetaloo Sub-basin. On June 4, 2024, the Company entered into a convertible note agreement with Tamboran Corp. This note was utilized to relieve Tamboran's outstanding accounts receivable balance owed to the Company, and therefore no cash was exchanged as part of the transaction. The convertible note agreement provided that the notes converted into shares of common stock of Tamboran Corp. under certain circumstances in connection with an initial public offering in which its stock was listed on the New York Stock Exchange ("NYSE") or NASDAQ Stock Exchange. On June 26, 2024, Tamboran Corp. completed an initial public offering of its common stock on the NYSE and its common stock is listed on the NYSE, under the ticker "TBN". As a result of this offering, the convertible note of $9.4 million was converted into 0.5 million common shares in Tamboran Corp. Additionally and separately, one of our executive officers serves as a director of Tamboran Corp. Refer to Note 10—Fair Value Measurement of Financial Instruments for additional information related to our investment. Concurrent with the October 2022 investment agreement, we entered into a fixed-term drilling services agreement with Tamboran Resources. As of June 30, 2024, we recorded $1.5 million in receivables and $4.5 million in contract liabilities on our Unaudited Condensed Consolidated Balance Sheets. As of September 30, 2023, we recorded $2.8 million in receivables, $8.0 million in other assets and $6.6 million in contract liabilities on our Consolidated Balance Sheets. We recorded $2.9 million and $9.9 million in revenue on our Unaudited Condensed Consolidated Statement of Operations during the three and nine months ended June 30, 2024, respectively, related to the drilling services agreement with Tamboran Resources, which commenced drilling services during the fourth fiscal quarter of 2023. We expect to earn $32.8 million in revenue over the remaining contract term, and, as such, this amount is included within our contract backlog as of June 30, 2024. Recently Issued Accounting Updates Changes to U.S. GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of Accounting Standards Updates ("ASUs") to the FASB Accounting Standards Codification ("ASC"). We consider the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to be either not applicable, clarifications of ASUs listed below, immaterial, or already adopted by the Company. The following table provides a brief description of recent accounting pronouncements and our analysis of the effects on our financial statements: Standard Description Date of Effect on the Financial Standards that are not yet adopted as of June 30, 2024 ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures This ASU improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in this update enhance annual and interim disclosure requirements, determine significant segment expense, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. This update is effective for annual periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. Early adoption of the amendments is permitted. Upon adoption, the amendments shall be applied retrospectively to all prior periods presented in the financial statements. October 1, 2024 We plan to adopt this ASU, as required, during fiscal year 2025, with the first disclosure enhancements reflected in our FY 2025 Form 10-K. We are currently evaluating the impact this ASU will have on our disclosures. ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures This ASU enhances income tax disclosure requirements. Under the ASU, public business entities must annually (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income or loss by the applicable statutory income tax rate). Specific categories that must be included in the reconciliation for each annual reporting period are specified in the amendment. This update is effective for annual periods beginning after December 15, 2024. Early adoption of the amendments is permitted. Upon adoption, the amendments shall be applied on a prospective basis. Retrospective application is permitted. October 1, 2025 We plan to adopt this ASU, as required, during fiscal year 2026, with the first disclosure enhancements reflected in our FY 2026 Form 10-K. We are currently evaluating the impact this ASU will have on our disclosures. Self-Insurance We continue to use our captive insurance companies to insure the deductibles for our domestic workers’ compensation, general liability, automobile liability claims programs, and medical stop-loss program and to insure the deductibles from the Company's international casualty and property programs. Our operating subsidiaries are paying premiums to the Captives, typically on a monthly basis, for the estimated losses based on an external actuarial analysis. These premiums are currently held in a restricted cash account, resulting in a transfer of risk from our operating subsidiaries to the Captives. Direct operating costs primarily consisted of adjustments of $5.3 million and $5.5 million to accruals for estimated losses for the three months ended June 30, 2024 and 2023, respectively, and $10.4 million and $10.2 million for the nine months ended June 30, 2024 and 2023, respectively, and rig and casualty insurance premiums of $9.5 million and $9.7 million during the three months ended June 30, 2024 and 2023, respectively, and $28.5 million and $30.6 million for the nine months ended June 30, 2024 and 2023, respectively. These operating costs were recorded within Drilling services operating expenses in our Unaudited Condensed Consolidated Statement of Operations. Intercompany premium revenues recorded by the Captives during the three months ended June 30, 2024 and 2023 amounted to $14.7 million and $17.4 million, respectively, and $45.7 million and $51.4 million during the nine months ended June 30, 2024 and 2023, respectively, which were eliminated upon consolidation. These intercompany insurance premiums are reflected as segment operating expenses within the North America Solutions, International Solutions, and Offshore Gulf of Mexico reportable operating segments and are reflected as intersegment sales within "Other." Our medical stop loss operating expenses for the three months ended June 30, 2024 and 2023 were $4.1 million and $2.1 million, respectively, and $11.4 million and $7.4 million for the nine months ended June 30, 2024 and 2023, respectively. International Solutions Drilling Risks International Solutions drilling operations may significantly contribute to our revenues and net operating income. There can be no assurance that we will be able to successfully conduct such operations, and a failure to do so may have an adverse effect on our financial position, results of operations, and cash flows. Also, the success of our International Solutions operations will be subject to numerous contingencies, some of which are beyond management’s control. These contingencies include general and regional economic conditions, geopolitical developments and tensions, war and uncertainty in oil-producing countries, fluctuations in currency exchange rates, modified exchange controls, changes in international regulatory requirements and international employment issues, risk of expropriation of real and personal property and the burden of complying with foreign laws. Additionally, in the event that extended labor strikes occur or a country experiences significant political, economic or social instability, we could experience shortages in labor and/or material and supplies necessary to operate some of our drilling rigs, thereby potentially causing an adverse material effect on our business, financial condition and results of operations. We have also experienced certain risks specific to our Argentine operations. In Argentina, while our dayrate is denominated in U.S. dollars, we are paid the equivalent in Argentine pesos. The Central Bank of Argentina maintains certain currency controls that limit our ability to access U.S. dollars and remit funds from our Argentine operations. In the past, the Argentine government has also instituted price controls on crude oil, diesel and gasoline prices and instituted an exchange rate freeze in connection with those prices. These price controls and an exchange rate freeze could be instituted again in the future. Further, there are additional concerns regarding Argentina's debt burden, notwithstanding Argentina's restructuring deal with international bondholders in August 2020, as Argentina attempts to manage its substantial sovereign debt issues. These concerns could further negatively impact Argentina's economy and adversely affect our Argentine operations. Argentina’s economy is considered highly inflationary, which is defined as cumulative inflation rates exceeding 100 percent in the most recent three-year period based on inflation data published by the respective governments. All of our foreign subsidiaries use the U.S. dollar as the functional currency and local currency monetary assets and liabilities are remeasured into U.S. dollars with gains and losses resulting from foreign currency transactions included in current results of operations. We recorded aggregate foreign currency losses of $2.1 million and $4.5 million for the three and nine months ended June 30, 2024, respectively, and $1.4 million and $1.7 million for the three and nine months ended June 30, 2023, respectively . The aggregate foreign currency loss for three and nine months ended June 30, 2024 was primarily due to Argentina's devaluation of its peso relative to the U.S. dollar by approximately 55 percent in December 2023 . In the future, we may incur larger currency devaluations, foreign exchange restrictions or other difficulties repatriating U.S. dollars from Argentina or elsewhere, which could have a material adverse impact on our business, financial condition and results of operations. As of June 30, 2024, our cash balance in Argentina was the U.S. dollar equivalent of $9.2 million in Argentine Pesos. As mentioned above, the Central Bank of Argentina's currency controls continue to 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 three and nine months ended June 30, 2024 , we entered into a Blue Chip Swap transaction, which resulted in a $7.1 million loss on investment recorded in Gain (loss) on investment securities within our Unaudited Condensed Consolidated Statements of Operations. As a result of the Blue Chip Swap transaction, $13.8 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. Although we attempt to minimize the potential impact of such risks by operating in more than one geographical area, during the three and nine months ended June 30, 2024, approximately 7.0 percent and 7.4 percent of our operating revenues were generated from international locations compared to 6.8 percent and 7.3 percent during the three and nine months ended June 30, 2023, respectively. During the three and nine months ended June 30, 2024, approximately 77.9 percent and 77.1 percent of operating revenues from international locations were from operations in South America compared to 84.8 percent and 87.3 percent during the three and nine months ended June 30, 2023, respectively. All of the South American operating revenues were from Argentina and Colombia. The future occurrence of one or more international events arising from the types of risks described above could have a material adverse impact on our business, financial condition and results of operations. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 9 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 3 PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment as of June 30, 2024 and September 30, 2023 consisted of the following: (in thousands) Estimated Useful Lives June 30, 2024 September 30, 2023 Drilling services equipment 4 - 15 years $ 6,596,929 $ 6,396,612 Tubulars 4 years 577,231 564,032 Real estate properties 10 - 45 years 48,463 47,313 Other 2 - 23 years 457,879 443,366 Construction in progress 1 124,844 97,374 7,805,346 7,548,697 Accumulated depreciation (4,791,001) (4,627,002) Property, plant and equipment, net $ 3,014,345 $ 2,921,695 Assets held-for-sale $ — $ 645 (1) Included in construction in progress are costs for projects in progress to upgrade or refurbish certain rigs in our existing fleet. Additionally, we include other advances for capital maintenance purchase-orders that are open/in process. As these various projects are completed, the costs are then classified to their appropriate useful life category. Depreciation Depreciation expense during the three months ended June 30, 2024 and 2023 was $96.2 million and $93.2 million, including abandonments of $0.1 million and $0.2 million, respectively. During the three months ended June 30, 2024, depreciation expense included $2.7 million of accelerated depreciation for components on rigs that are scheduled for conversion in fiscal year 2024 as compared to $0.4 million for three months ended June 30, 2023. Depreciation expense during the nine months ended June 30, 2024 and 2023 was $291.5 million and $282.7 million, including abandonments of $3.2 million and $2.4 million, respectively. During the nine months ended June 30, 2024 , depreciation expense included $10.9 million of accelerated depreciation for components on rigs that are scheduled for conversion in fiscal year 2024 as compared to $2.1 million for nine months ended June 30, 2023. These expenses are recorded within Depreciation and amortization on our Unaudited Condensed Consolidated Statements of Operations. I n November 2022, a fire at a wellsite caused substantial damage to one of our super-spec rigs within our North America Solutions segment. The major components were destroyed beyond repair and considered a total loss, and, as a result, these assets were written off and the rig was removed from our available rig count. At the time of the loss, the rig was fully insured under replacement cost insurance. The loss of $9.2 million was recorded as abandonment expense within Depreciation and amortization in our Unaudited Condensed Consolidated Statement of Operations for the nine months ended June 30, 2023 and was offset by an insurance recovery that was also recognized within Depreciation and amortization for the same amount as the loss. During the fiscal year ended September 30, 2023, we collected $9.2 million of the total expected insurance proceeds. During the nine months ended June 30, 2024 , we recognized a gain on involuntary conversion of the rig of $5.5 million and fully collected $5.5 million in proceeds. The total insurance proceeds received during the period exceeds the recognized loss and therefore was recognized as a gain within operating income during the nine months ended June 30, 2024 . Impairment Charges Fiscal Year 2024 Activity We did not record any impairment charges during the three and nine months ended June 30, 2024. Fiscal Year 2023 Activity During the nine months ended June 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 nine months ended June 30, 2023. During the same period, we also identified additional equipment that met the asset held-for-sale criteria and was reclassified as Assets held-for-sale on our Unaudited Condensed Consolidated Balance Sheets. The aggregate net book value of the equipment of $1.4 million was written down to its estimated scrap value of $0.1 million, resulting in a non-cash impairment charge of $1.3 million during the nine months ended June 30, 2023. These impairment charges are recorded within our North America Solutions segment in our Unaudited Condensed Consolidated Statement of Operations. During the nine months ended June 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 Unaudited Condensed Consolidated Balance Sheets as of June 30, 2023. The rigs’ aggregate net book value of $8.8 million was written down to the estimated scrap value of $0.7 million, which resulted in a non-cash impairment charge of $8.1 million within our International Solutions segment and recorded in our Unaudited Condensed Consolidated Statement of Operations during the nine months ended June 30, 2023. Gain on Reimbursement of Drilling Equipment We recognized gains of $9.7 million and $24.7 million during the three and nine months ended June 30, 2024, respectively, and $10.6 million and $37.9 million during the three and nine months ended June 30, 2023, respectively, related to customer reimbursement for the current replacement value of lost or damaged drill pipe. Gains related to these asset sales are recorded in Gains on reimbursement of drilling equipment within our Unaudited Condensed Consolidated Statements of Operations. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 9 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | NOTE 4 GOODWILL AND INTANGIBLE ASSETS Goodwill During the three and nine months ended June 30, 2024, there were no additions or impairments to goodwill. As of June 30, 2024 and September 30, 2023, the goodwill balance was $45.7 million . Intangible Assets Our intangible assets are recorded within our North America Solutions reportable segment and consist of the following: June 30, 2024 September 30, 2023 (in thousands) Weighted Average Estimated Useful Lives Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Finite-lived intangible asset: Developed technology 15 years $ 89,096 $ 38,558 $ 50,538 $ 89,096 $ 34,092 $ 55,004 Intellectual property 13 years 2,000 622 1,378 2,000 503 1,497 Trade name 20 years 5,865 2,029 3,836 5,865 1,791 4,074 $ 96,961 $ 41,209 $ 55,752 $ 96,961 $ 36,386 $ 60,575 Amortization expense in the Unaudited Condensed Consolidated Statements of Operations was $1.6 million for the three months ended June 30, 2024 and 2023, respectively and $4.8 million and $5.0 million for the nine months ended June 30, 2024 and 2023, respectively. Amortization expense is estimated to be approximately $1.6 million for the remainder of fiscal year 2024, and approximately $6.4 million for fiscal year 2025 through 2028. |
DEBT
DEBT | 9 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
DEBT | NOTE 5 DEBT We have the following unsecured long-term debt outstanding with maturity shown in the following table: June 30, 2024 September 30, 2023 (in thousands) Face Amount Unamortized Discount and Debt Issuance Cost Book Value Face Amount Unamortized Discount and Debt Issuance Cost Book Value Unsecured senior notes: Due September 29, 2031 $ 550,000 $ (4,411) $ 545,589 $ 550,000 $ (4,856) $ 545,144 Long-term debt $ 550,000 $ (4,411) $ 545,589 $ 550,000 $ (4,856) $ 545,144 2.90% Senior Notes due 2031 On September 29, 2021, we issued $550.0 million aggregate principal amount of the 2.90 percent 2031 Notes in an offering to persons reasonably believed to be qualified institutional buyers in the United States pursuant to Rule 144A under the Securities Act (“Rule 144A”) and to certain non-U.S. persons in transactions outside the United States pursuant to Regulation S under the Securities Act (“Regulation S”). Interest on the 2031 Notes is payable semi-annually on March 29 and September 29 of each year, commencing on March 29, 2022. In June 2022, we settled a registered exchange offer (the “Registered Exchange Offer”) to exchange the 2031 Notes for new, SEC-registered notes that are substantially identical to the terms of the 2031 Notes, except that the offer and issuance of the new notes have been registered under the Securities Act and certain transfer restrictions, registration rights and additional interest provisions relating to the 2031 Notes do not apply to the new notes. All of the 2031 Notes were exchanged in the Registered Exchange Offer. The indenture governing the 2031 Notes contains certain covenants that, among other things and subject to certain exceptions, limit the ability of the Company and its subsidiaries to incur certain liens; engage in sale and lease-back transactions; and consolidate, merge or transfer all or substantially all of the assets of the Company. The indenture governing the 2031 Notes also contains customary events of default with respect to the 2031 Notes. Credit Facility On November 13, 2018, we entered into a credit agreement by and among the Company, as borrower, Wells Fargo Bank, National Association, as administrative agent, and the lenders party thereto, which was amended on November 13, 2019, providing for an unsecured revolving credit facility (as amended, the “2018 Credit Facility”), that was set to mature on November 13, 2024. On April 16, 2021, lenders with $680.0 million of commitments under the 2018 Credit Facility exercised their option to extend the maturity of the 2018 Credit Facility from November 13, 2024 to November 12, 2025. No other terms of the 2018 Credit Facility were amended in connection with this extension. On March 8, 2022, we entered into the second amendment to the 2018 Credit Facility, which, among other things, raised the number of potential future extensions of the maturity date applicable to extending lenders from one to two such potential extensions and replaced provisions in respect of interest rate determinations that were based on the London Interbank Offered Rate with provisions based on the Secured Overnight Financing Rate. Additionally, lenders with $680.0 million of commitments under the 2018 Credit Facility exercised their option to extend the maturity of the 2018 Credit Facility from November 12, 2025 to November 11, 2026. On February 10, 2023, lenders with $680.0 million of commitments under the 2018 Credit Facility exercised their option to extend the maturity of the 2018 Credit Facility from November 11, 2026 to November 12, 2027. The remaining $70.0 million of commitments under the 2018 Credit Facility will expire on November 13, 2024, unless extended by the applicable lender before such date. The 2018 Credit Facility has $750.0 million in aggregate availability with a maximum of $75.0 million available for use as letters of credit. As of June 30, 2024, there were no borrowings or letters of credit outstanding, leaving $750.0 million available to borrow under the 2018 Credit Facility. For a full description of the 2018 Credit Facility, see Note 6—Debt to the Consolidated Financial Statements in our 2023 Annual Report on Form 10-K. As of June 30, 2024, we had $120.0 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 $120.0 million, $41.7 million was outstanding as of June 30, 2024. Separately, we had $5.0 million in standby letters of credit and bank guarantees outstanding. In total, we had $46.7 million outstanding as of June 30, 2024. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 6 INCOME TAXES We use an estimated annual effective tax rate for purposes of determining the income tax provision during interim reporting periods. In calculating our estimated annual effective tax rate, we consider forecasted annual pre-tax income and estimated permanent book versus tax differences. Adjustments to the effective tax rate and estimates could occur during the year as information and assumptions change which could include, but are not limited to, changes to the forecasted amounts, estimates of permanent book versus tax differences, and changes to tax laws and rates. Our income tax expense for the three months ended June 30, 2024 and 2023 was $33.7 million and $40.7 million, respectively, resulting in effective tax rates of 27.5 percent and 29.9 percent, respectively. Our income tax expense for the nine months ended June 30, 2024 and 2023 was $96.0 million and $124.2 million, respectively, resulting in effective tax rates of 26.3 percent and 25.9 percent, respectively. Effective tax rates differ from the U.S. federal statutory rate of 21.0 percent for the three months ended June 30, 2024, primarily due to state and foreign income taxes, permanent non-deductible items and a discrete benefit of $0.8 million primarily related to provision to return adjustments. The effective tax rate for the nine months ended June 30, 2024 differs from U.S. federal statutory rate of 21.0 percent primarily due to state and foreign income taxes, permanent non-deductible items and a discrete tax benefit of $1.6 million primarily related to equity compensation and provision to return adjustments. Effective tax rates differ from the U.S. federal statutory rate of 21.0 percent for the three months ended June 30, 2023 primarily due to state and foreign income taxes, permanent non-deductible items and discrete tax expense of $2.4 million primarily related to an increase in our deferred state income tax rate. The effective tax rate for the nine months ended June 30, 2023, differs from the U.S. federal statutory rate of 21.0 percent primarily due to state and foreign income taxes, permanent non-deductible items and a discrete tax expense of $2.3 million primarily related to an increase in deferred state income tax rate and equity compensation. As of June 30, 2024, we have recorded unrecognized tax benefits and related interest and penalties of approximately $0.7 million. During the three months ended June 30, 2024, $2.7 million of the unrecognized tax benefits, interest and penalties was recognized 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. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 9 Months Ended |
Jun. 30, 2024 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 7 SHAREHOLDERS’ EQUITY The Company has an evergreen authorization from the Board of Directors ("the Board") for the repurchase of up to four million common shares in any calendar year. The repurchases may be made using our cash and cash equivalents or other available sources. We did not make any share repurchases during the three months ended June 30, 2024. During the nine months ended June 30, 2024, we repurchased 1.4 million common shares at an aggregate cost of $51.6 million, including excise tax of $0.3 million. During the three and nine months ended June 30, 2023, we repurchased 3.2 million and 6.5 million common shares at an aggregate cost of $103.2 million and $249.0 million, including excise tax of $1.0 million and $1.8 million, respectively. During the three and nine months ended June 30, 2024, we declared $42.0 million and $143.3 million, respectively, in cash dividends. A base cash dividend of $0.25 per share and a supplemental dividend of $0.17 per share was declared on June 5, 2024 for shareholders of record on August 16, 2024, payable on August 30, 2024. As a result, we recorded a Dividend payable of $42.0 million on our Unaudited Condensed Consolidated Balance Sheets as of June 30, 2024. Accumulated Other Comprehensive Loss Components of accumulated other comprehensive loss were as follows: June 30, September 30, (in thousands) 2024 2023 Pre-tax amounts: Unrealized pension actuarial loss $ (9,886) $ (10,407) Unrealized loss on available-for-sale debt security (1,191) — $ (11,077) $ (10,407) After-tax amounts: Unrealized pension actuarial loss $ (7,579) $ (7,981) Unrealized loss on available-for-sale debt security (920) — $ (8,499) $ (7,981) Fluctuations in pension actuarial gains and losses are primarily due to changes in the discount rate and investment returns related to the defined benefit pension plan. Investments classified as available-for-sale debt securities are reported at fair value with unrealized gains and losses excluded from net income (loss) and reported in other comprehensive income (loss). The following is a summary of the changes in accumulated other comprehensive loss, net of tax, for the three and nine months ended June 30, 2024: Three Months Ended June 30, 2024 (in thousands) Unrealized Loss on Available-for-Sale Securities Defined Benefit Pension Plan Total Balance at beginning of period $ — $ (7,713) $ (7,713) Other comprehensive loss before reclassifications (920) — (920) Amounts reclassified from accumulated other comprehensive income — 134 134 Net current-period other comprehensive loss (920) 134 (786) Balance at June 30 2024 $ (920) $ (7,579) $ (8,499) Nine Months Ended June 30, 2024 (in thousands) Unrealized Loss on Available-for-Sale Securities Defined Benefit Pension Plan Total Balance at beginning of period $ — $ (7,981) $ (7,981) Other comprehensive loss before reclassifications (920) — (920) Amounts reclassified from accumulated other comprehensive income — 402 402 Net current-period other comprehensive loss (920) 402 (518) Balance at June 30 2024 $ (920) $ (7,579) $ (8,499) |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 9 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | NOTE 8 REVENUE FROM CONTRACTS WITH CUSTOMERS Drilling Services Revenue The majority of our drilling services are performed on a “daywork” contract basis, under which we charge a rate per day, with the price determined by the location, depth and complexity of the well to be drilled, operating conditions, the duration of the contract, and the competitive forces of the market. These drilling services, including our technology solutions, represent a series of distinct daily services that are substantially the same, with the same pattern of transfer to the customer. Because our customers benefit equally throughout the service period and our efforts in providing drilling services are incurred relatively evenly over the period of performance, revenue is recognized over time using a time-based input measure as we provide services to the customer. For any contracts that include a provision for pooled term days at contract inception, followed by the assignment of days to specific rigs throughout the contract term, we have elected, as a practical expedient, to recognize revenue in the amount for which the entity has a right to invoice, as permitted by ASC 606. Performance-based contracts are contracts pursuant to which we are compensated partly based upon our performance against a mutually agreed upon set of predetermined targets. These types of contracts are relatively new to the industry and typically have a lower base dayrate, but give us the opportunity to receive additional compensation by meeting or exceeding certain performance targets agreed to by our customers. The variable consideration that we expect to receive is estimated at the most likely amount, and constrained to an amount such that it is probable a significant reversal of revenue previously recognized will not occur based on the performance targets. Total revenue recognized from performance contracts, including performance bonuses, was $294.4 million and $880.4 million, of which $11.8 million and $37.4 million was related to performance bonuses recognized due to the achievement of performance targets during the three and nine months ended June 30, 2024, respectively. Total revenue recognized from performance contracts, including performance bonuses, was $316.2 million and $883.3 million, of which $11.4 million and $33.0 million was related to performance bonuses recognized due to the achievement of performance targets during the three and nine months ended June 30, 2023, respectively. Contract Costs We had capitalized fulfillment costs of $11.6 million and $11.4 million as of June 30, 2024 and September 30, 2023, respectively. Remaining Performance Obligations The total aggregate transaction price allocated to the unsatisfied performance obligations, commonly referred to as backlog, as of June 30, 2024 was approximately $1.5 billion, of which approximately $0.3 billion is expected to be recognized during the remainder of fiscal year 2024, approximately $0.6 billion during fiscal year 2025, and approximately $0.6 billion in fiscal year 2026 and thereafter. These amounts do not include anticipated contract renewals or expected performance bonuses as part of its calculation. Additionally, contracts that currently contain month-to-month terms are represented in our backlog as one month of unsatisfied performance obligations. Our contracts are subject to cancellation or modification at the election of the customer; however, due to the level of capital deployed by our customers on underlying projects, we have not been materially adversely affected by contract cancellations or modifications in the past. Contract Assets and Liabilities The following tables summarize the balances of our contract assets (net of allowance for estimated credit losses) and liabilities at the dates indicated: (in thousands) June 30, 2024 September 30, 2023 Contract assets, net $ 4,899 $ 6,560 (in thousands) June 30, 2024 Contract liabilities balance at September 30, 2023 $ 28,882 Payment received/accrued and deferred 44,486 Revenue recognized during the period (49,042) Contract liabilities balance at June 30, 2024 $ 24,326 |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 9 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | NOTE 9 EARNINGS PER COMMON SHARE ASC 260, Earnings per Share, requires companies to treat unvested share-based payment awards that have non-forfeitable rights to dividends or dividend equivalents as a separate class of securities in calculating earnings per share. We have granted and expect to continue to grant to employees restricted stock grants that contain non-forfeitable rights to dividends. Such grants are considered participating securities under ASC 260. As such, we are required to include these grants in the calculation of our basic earnings per share and calculate basic earnings per share using the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. Basic earnings per share is computed utilizing the two-class method and is calculated based on the weighted-average number of common shares outstanding during the periods presented. Diluted earnings per share is computed using the weighted-average number of common and common equivalent shares outstanding during the periods utilizing the two-class method for stock options, non-vested restricted stock and performance units. Under the two-class method of calculating earnings per share, dividends paid and a portion of undistributed net income, but not losses, are allocated to unvested restricted stock grants that receive dividends, which are considered participating securities. During the third quarter of fiscal year 2023, Income from discontinued operations was presented as a separate line item on our Unaudited Condensed Consolidated Statements of Operations. To conform with the current fiscal year presentation, we reclassified amounts previously presented in Income from discontinued operations, which were not material, to Other within Other income (expense) on our Unaudited Condensed Consolidated Statements of Operations for the three and nine months ended June 30, 2023. To conform with the current fiscal year presentation, basic and diluted earnings per share for continuing and discontinued operations are presented in the aggregate, for the three and nine months ended June 30, 2023, as presented below. The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended Nine Months Ended (in thousands, except per share amounts) 2024 2023 2024 2023 Numerator: Net income $ 88,685 $ 95,293 $ 268,689 356,478 Adjustment for basic earnings per share Earnings allocated to unvested shareholders (1,211) (1,283) (3,700) (4,810) Numerator for basic earnings per share 87,474 94,010 264,989 351,668 Adjustment for diluted earnings per share Effect of reallocating undistributed earnings of unvested shareholders 1 2 4 9 Numerator for diluted earnings per share $ 87,475 $ 94,012 $ 264,993 $ 351,677 Denominator: Denominator for basic earnings per share - weighted-average shares 98,752 101,163 98,891 103,464 Effect of dilutive shares from restricted stock and performance share units 255 387 225 388 Denominator for diluted earnings per share - adjusted weighted-average shares 99,007 101,550 99,116 103,852 Basic earnings per common share: $ 0.89 $ 0.93 $ 2.68 $ 3.40 Diluted earnings per common share: $ 0.88 $ 0.93 $ 2.67 $ 3.39 The following potentially dilutive average shares attributable to outstanding equity awards were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive: Three Months Ended Nine Months Ended (in thousands, except per share amounts) 2024 2023 2024 2023 Potentially dilutive shares excluded as anti-dilutive 2,318 2,964 2,374 2,479 Weighted-average price per share $ 60.00 $ 58.86 $ 60.32 $ 61.88 |
FAIR VALUE MEASUREMENT OF FINAN
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS | 9 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS | NOTE 10 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: June 30, 2024 (in thousands) Fair Value Level 1 Level 2 Level 3 Assets Short-term investments: Corporate and municipal debt securities $ 37,218 $ — $ 37,218 $ — U.S. government and federal agency securities 48,870 48,870 — — Total 86,088 48,870 37,218 — Long-term Investments: Recurring fair value measurements: Equity securities: Non-qualified supplemental savings plan 16,634 16,634 — — Investment in ADNOC Drilling 178,235 178,235 — — Investment in Tamboran 23,018 23,018 — — Debt securities: Investment in Galileo 36,751 — — 36,751 Geothermal debt securities 2,000 — — 2,000 Other debt securities 4,060 3,810 — 250 Total 260,698 221,697 — 39,001 Nonrecurring fair value measurements 1 : Other equity securities 4,071 — — 4,071 Total 4,071 — — 4,071 Total $ 264,769 $ 221,697 $ — $ 43,072 Liabilities Contingent consideration $ 5,000 $ — $ — $ 5,000 (1) As of June 30, 2024, our equity security investments in geothermal energy totaled $27.2 million and our debt security investments in held to maturity bonds totaled $0.3 million. None of these investments were marked to fair value during the period. The investments are measured at cost, less any impairments. September 30, 2023 (in thousands) Fair Value Level 1 Level 2 Level 3 Assets Short-term investments: Corporate debt securities $ 48,764 $ — $ 48,764 $ — U.S. government and federal agency securities 44,836 44,836 — — Total 93,600 44,836 48,764 — Long-term investments: Recurring fair value measurements: Equity securities: Non-qualified supplemental savings plan 14,597 14,597 — — Investment in ADNOC Drilling 174,758 174,758 — — Investment in Tamboran 9,920 9,920 — — Debt securities: Investment in Galileo 35,434 — — 35,434 Geothermal debt securities 2,006 — — 2,006 Total 236,715 199,275 — 37,440 Nonrecurring fair value measurements 1 : Other equity securities 2 2,430 — — 2,430 Total 2,430 — — 2,430 Total $ 239,145 $ 199,275 $ — $ 39,870 Liabilities Contingent consideration $ 9,455 $ — $ — $ 9,455 (1) As of September 30, 2023, our equity security investments in geothermal energy totaled $25.2 million. None of these investments were marked to fair value during the period. The investments are measured at cost, less any impairments. (2) As of September 30, 2023, our other equity securities subject to measurement at fair value on a nonrecurring basis totaled $3.0 million, of which $2.4 million has been marked to fair value. The remaining $0.6 million is measured at cost, less any impairments. Recurring Fair Value Measurements Short-term Investments Short-term investments primarily include securities classified as trading securities. Both realized and unrealized gains and losses on trading securities are included in Other income (expense) in the Unaudited Condensed Consolidated Statements of Operations. These securities are recorded at fair value. Level 1 inputs include U.S. agency issued debt securities with active markets and money market funds. For these items, quoted current market prices are readily available. Level 2 inputs include corporate bonds measured using broker quotations that utilize observable market inputs. Long-term Investments Equity Securities Our long-term investments include debt and equity securities and assets held in a Non-Qualified Supplemental Savings Plan ("Savings Plan") and are recorded within Investments on our Unaudited Condensed Consolidated Balance Sheets. Our assets that we hold in the Savings Plan are comprised of mutual funds that are measured using Level 1 inputs. During September 2021, the Company made a $100.0 million cornerstone investment in ADNOC Drilling in advance of its announced initial public offering, representing 159.7 million shares of ADNOC Drilling, equivalent to a one percent ownership stake and subject to a three-year lockup period. ADNOC Drilling’s initial public offering was completed on October 3, 2021, and its shares are listed and traded on the Abu Dhabi Securities Exchange. Our investment is classified as a long-term equity investment within Investments on our Unaudited Condensed Consolidated Balance Sheets and measured at fair value with any gains or losses recognized through net income and recorded within Gain (loss) on investment securities on our Unaudited Condensed Consolidated Statements of Operations. Consistent with the provisions of ASU No. 2022-03, contractual sale restrictions are not considered in the fair value measurement of our investment in ADNOC Drilling. During the three and nine months ended June 30, 2024, we recognized gains of $5.6 million and $3.5 million, respectively, on our Unaudited Condensed Consolidated Statements of Operations, as a result of the change in fair value of the investment compared to gain (loss) of $(17.0) million and $7.4 million during the three and nine months ended June 30, 2023, respectively. This investment is classified as a Level 1 investment based on the quoted stock price on the Abu Dhabi Securities Exchange. Equity Securities with Fair Value Option In October 2022, we made a $14.1 million equity investment, representing 106.0 million common shares in Tamboran Resources. In December 2023, all shares of Tamboran Resources were transferred to Tamboran Resources Corporation ("Tamboran Corp.") in exchange for depository interests in Tamboran Corp. Depository interests, referred to as CHESS Depository Interests, each representing beneficial interests of 1/200th of a share of Tamboran Corp. common stock, are listed on the Australian Stock Exchange under the ticker symbol "TBN." Tamboran Corp. is focused on developing a natural gas resource in Australia's Beetaloo Sub-basin. On June 4, 2024, the Company entered into a convertible note agreement with Tamboran Corp. This note was utilized to relieve Tamboran's outstanding accounts receivable balance owed to the Company, and therefore no cash was exchanged as part of the transaction. The convertible note agreement provided that the notes converted into shares of common stock of Tamboran Corp. under certain circumstances in connection with an initial public offering in which its stock was listed on the New York Stock Exchange ("NYSE") or NASDAQ Stock Exchange. On June 26, 2024, Tamboran Corp. completed an initial public offering of its common stock on the NYSE and its common stock is listed on the NYSE, under the ticker "TBN". As a result of this offering, the convertible note of $9.4 million was converted into 0.5 million common shares in Tamboran Corp. Our investment is classified as a long-term equity investment within Investments on our Unaudited Condensed Consolidated Balance Sheets and measured at fair value with any gains or losses recognized through net income and recorded within Gain (loss) on investment securities on our Unaudited Condensed Consolidated Statements of Operations. Our shares received in this initial public offering are subject to a 180-day lockup period. Consistent with the provisions of ASU No. 2022-03, contractual sale restrictions are not considered in the fair value measurement of our investment in Tamboran Resources Corporation. We believe we have a significant influence, but not control or joint control over the investee, due to several factors, including our ownership percentage, operational involvement and role on the investee's board of directors. As of June 30, 2024, our combined equity ownership was approximately 7.2 percent representing 1.0 million common shares in Tamboran Corp. We consider this investment to have a readily determinable fair value and have elected to account for this investment using the fair value option with any changes in fair value recognized through net income. Under the guidance, Topic 820, Fair Value Measurement, this investment is classified as a Level 1 investment based on the quoted stock price which is publicly available. During the three and nine months ended June 30, 2024, we recognized gains of $1.9 million and $3.7 million, respectively, recorded within Gain (loss) on investment securities on our Unaudited Condensed Consolidated Statements of Operations, as a result of the change in fair value of the investment compared to a loss of $1.5 million during the three and nine months ended June 30, 2023, respectively. Debt Securities During April 2022, the Company made a $33.0 million cornerstone investment in Galileo Holdco 2 Limited Technologies ("Galileo Holdco 2"), part of the group of companies known as Galileo Technologies (“Galileo”) in the form of notes with an option to convert into common shares of the parent of Galileo Holdco 2 ("Galileo parent"). Galileo specializes in liquification, natural gas compression and re-gasification modular systems and technologies to make the production, transportation, and consumption of natural gas, biomethane, and hydrogen more economically viable. The convertible note bears interest at 5.0 percent per annum with a maturity date of the earlier of April 2027 or an exit event (as defined in the agreement as either an initial public offering or a sale of Galileo). During the fiscal year ended September 30, 2023, our convertible note agreement was amended to include any interest which has accrued but not yet compounded or issued as a note. As a result, we include accrued interest in our total investment balance. We do not intend to sell this investment prior to its maturity date or an exit event. As of June 30, 2024, the fair value of the convertible note was approximately equal to the cost basis. The following table provides quantitative information (in thousands) about our Level 3 unobservable significant inputs related to our debt security investment with Galileo at the dates included below: June 30, 2024 Fair Value Valuation Technique Unobservable Inputs $ 36,751 Black-Scholes-Merton model Discount rate 20.8 % Risk-free rate 4.3 % Equity volatility 105.0 % The above significant unobservable inputs are subject to change based on changes in economic and market conditions. The use of significant unobservable inputs creates uncertainty in the measurement of fair value as of the reporting date. Significant increases or decreases in the discount rate, risk-free rate, and equity volatility in isolation would result in a significantly lower or higher fair value measurement. It is not possible for us to predict the effect of future economic or market conditions on our estimated fair values. A majority of our long-term debt securities, including our investment in Galileo, are classified as available-for-sale and are measured using Level 3 unobservable inputs based on the absence of market activity. The following table reconciles changes in the fair value of our Level 3 assets for the periods presented below: Three Months Ended Nine Months Ended (in thousands) 2024 2023 2024 2023 Assets at beginning of period $ 38,551 $ 35,140 $ 37,440 $ 33,565 Purchases — 41 250 2,116 Accrued interest 450 2,001 1,316 2,001 Transfers out — — — (500) Reserves — — (5) — Assets at end of period $ 39,001 $ 37,182 $ 39,001 $ 37,182 Nonrecurring Fair Value Measurements We have certain assets that are subject to measurement at fair value on a nonrecurring basis. For these nonfinancial assets, measurement at fair value in periods subsequent to their initial recognition is applicable if they are determined to be impaired. These assets generally include property, plant and equipment, goodwill, intangible assets, and operating lease right-of-use assets. If measured at fair value in the Unaudited Condensed Consolidated Balance Sheets, these would generally be classified within Level 2 or 3 of the fair value hierarchy. Further details on any changes in valuation of these assets is provided in their respective footnotes. Equity Securities We also hold various other equity securities without readily determinable fair values, primarily comprised of geothermal investments. These equity securities are initially measured at cost, less any impairments, and will be marked to fair value once observable price changes in identical or similar investments from the same issuer occur. All of our long-term equity securities are measured using Level 3 unobservable inputs based on the absence of market activity. The following table reconciles changes in the balance of our equity securities, without readily determinable fair values, including investments that have been subsequently marked to fair value, for the periods presented below: Three Months Ended Nine Months Ended (in millions) 2024 2023 2024 2023 Assets at beginning of period $ 30,152 $ 26,301 $ 28,232 $ 23,745 Purchases 1,105 — 3,641 2,556 Disposals — — (616) — Assets at end of period $ 31,257 $ 26,301 $ 31,257 $ 26,301 Contingent Consideration Other financial instruments measured using Level 3 unobservable inputs primarily consist of potential earnout payments associated with our business acquisition in fiscal year 2019 (for which the measurement period concluded as of June 30, 2024). Contingent consideration is recorded in Accrued liabilities on the Unaudited Condensed Consolidated Balance Sheets based on the expected timing of milestone achievements. The following table reconciles changes in the fair value of our Level 3 liabilities for the periods presented below: Three Months Ended Nine Months Ended (in thousands) 2024 2023 2024 2023 Liabilities at beginning of period $ 14,000 $ 5,030 $ 9,455 $ 4,022 Additions — — — 500 Total gains or losses: Included in earnings 1,000 4,050 6,670 5,808 Settlements 1 (10,000) (500) (11,125) (1,750) Liabilities at end of period $ 5,000 $ 8,580 $ 5,000 $ 8,580 (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 June 30, 2024 and September 30, 2023. The following information presents the supplemental fair value information for our long-term fixed-rate debt at June 30, 2024 and September 30, 2023: (in millions) June 30, 2024 September 30, 2023 Long-term debt, net Carrying value $ 545.6 $ 545.1 Fair value 454.5 435.5 The fair values of the long-term fixed-rate debt is based on broker quotes at June 30, 2024 and September 30, 2023. The notes are classified within Level 2 of the fair value hierarchy as they are not actively traded in markets. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 11 COMMITMENTS AND CONTINGENCIES Lease Obligations During the nine months ended June 30, 2024, we amended the lease for our Tulsa industrial facility. As part of the amendment, we extended the lease term, now continuing through June 30, 2035 with two five-year renewal options, resulting in an increase of $18.1 million to the right-of-use assets and lease liability on our Unaudited Condensed Consolidated Balance Sheet. We recognized one of the five-year renewal options as part of our right-of-use assets and lease liabilities. This contract is accounted for as an operating lease. Purchase Commitments Equipment, parts, and supplies are ordered in advance to promote efficient construction and capital improvement progress. At June 30, 2024, we had purchase commitments for equipment, parts and supplies of approximately $99.6 million. Guarantee Arrangements We are contingently liable to sureties in respect of bonds issued by the sureties in connection with certain commitments entered into by us in the normal course of business. We have agreed to indemnify the sureties for any payments made by them in respect of such bonds. Contingencies During the ordinary course of our business, contingencies arise resulting from an existing condition, situation or set of circumstances involving an uncertainty as to the realization of a possible gain or loss contingency. We account for gain contingencies in accordance with the provisions of ASC 450, Contingencies, and, therefore, we do not record gain contingencies or recognize income until realized. The property and equipment of our Venezuelan subsidiary was seized by the Venezuelan government on June 30, 2010. Our wholly-owned subsidiaries, Helmerich & Payne International Drilling Co. ("HPIDC"), and Helmerich & Payne de Venezuela, C.A. filed a lawsuit in the United States District Court for the District of Columbia on September 23, 2011 against the Bolivarian Republic of Venezuela, Petroleos de Venezuela, S.A. and PDVSA Petroleo, S.A., seeking damages for the seizure of their Venezuelan drilling business in violation of international law and for breach of contract. While there exists the possibility of realizing a recovery on HPIDC's expropriation claims, we are currently unable to determine the timing or amounts we may receive, if any, or the likelihood of recovery. |
BUSINESS SEGMENTS AND GEOGRAPHI
BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION | 9 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION | NOTE 12 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, International Solutions, and Offshore Gulf of Mexico. Each reportable operating segment is a strategic business unit that is managed separately, and consolidated revenues and expenses reflect the elimination of all material intercompany transactions. Our real estate operations, our incubator program for new research and development projects, and our wholly-owned captive insurance companies are included in "Other." External revenues included in “Other” primarily consist of rental income. Segment Performance We evaluate segment performance based on income (segment operating income (loss)) before income taxes which includes: • Revenues from external and internal customers • Direct operating expenses • Depreciation and amortization • Research and development • Allocated general and administrative expenses • Asset impairment charges but excludes gain on reimbursement of drilling equipment, other gain (loss) on sale of assets, corporate selling, general and administrative costs, and corporate depreciation. General and administrative costs are allocated to the segments based primarily on specific identification and, to the extent that such identification is not practical, other methods may be used which we believe to be a reasonable reflection of the utilization of services provided. Summarized financial information of our reportable segments for the three and nine months ended June 30, 2024 and 2023 is shown in the following tables: Three Months Ended June 30, 2024 (in thousands) North America Solutions International Solutions Offshore Gulf of Mexico Other Eliminations Total External sales $ 620,040 $ 47,882 $ 27,218 $ 2,584 $ — $ 697,724 Intersegment — — — 14,677 (14,677) — Total sales 620,040 47,882 27,218 17,261 (14,677) 697,724 Segment operating income (loss) $ 163,359 $ (4,844) $ 5,010 $ (4,791) $ (616) $ 158,118 Three Months Ended June 30, 2023 (in thousands) North America Solutions International Solutions Offshore Gulf of Mexico Other Eliminations Total External sales $ 641,612 $ 48,692 $ 31,221 $ 2,431 $ — $ 723,956 Intersegment — — — 17,359 (17,359) — Total sales 641,612 48,692 31,221 19,790 (17,359) 723,956 Segment operating income (loss) $ 169,499 $ (1,397) $ 4,705 $ 2,104 $ 4,470 $ 179,381 Nine Months Ended June 30, 2024 (in thousands) North America Solutions International Solutions Offshore Gulf of Mexico Other Eliminations Total External sales $ 1,827,661 $ 148,512 $ 78,662 $ 7,979 $ — $ 2,062,814 Intersegment — — — 45,649 (45,649) — Total sales 1,827,661 148,512 78,662 53,628 (45,649) 2,062,814 Segment operating income (loss) $ 454,979 $ 4,148 $ 8,140 $ (2,073) $ (1,054) $ 464,140 Nine Months Ended June 30, 2023 (in thousands) North America Solutions International Solutions Offshore Gulf of Mexico Other Eliminations Total External sales $ 1,944,555 $ 159,383 $ 101,364 $ 7,513 $ — $ 2,212,815 Intersegment — — — 51,423 (51,423) — Total sales 1,944,555 159,383 101,364 58,936 (51,423) 2,212,815 Segment operating income $ 496,945 $ 4,132 $ 18,138 $ 13,604 $ 4,513 $ 537,332 The following table reconciles segment operating income per the tables above to income before income taxes as reported on the Unaudited Condensed Consolidated Statements of Operations: Three Months Ended Nine Months Ended (in thousands) 2024 2023 2024 2023 Segment operating income $ 158,118 $ 179,381 $ 464,140 $ 537,332 Gain on reimbursement of drilling equipment 9,732 10,642 24,687 37,940 Other gain (loss) on sale of assets (2,730) (4,504) (2,718) 394 Corporate selling, general and administrative costs and corporate depreciation (53,807) (36,777) (140,756) (107,496) Operating income 111,313 148,742 345,353 468,170 Other income (expense) Interest and dividend income 11,888 10,748 29,189 20,508 Interest expense (4,336) (4,324) (12,969) (12,918) Gain (loss) on investment securities 389 (18,538) 102 6,123 Other 3,134 (672) 2,991 (1,218) Total unallocated amounts 11,075 (12,786) 19,313 12,495 Income before income taxes $ 122,388 $ 135,956 $ 364,666 $ 480,665 The following table reconciles segment total assets to total assets as reported on the Unaudited Condensed Consolidated Balance Sheets: (in thousands) June 30, 2024 September 30, 2023 Total assets 1 North America Solutions $ 3,340,926 $ 3,320,203 International Solutions 526,030 407,143 Offshore Gulf of Mexico 75,885 73,319 Other 171,550 154,290 4,114,391 3,954,955 Investments and corporate operations 370,591 427,001 $ 4,484,982 $ 4,381,956 (1) Assets by segment exclude investments in subsidiaries and intersegment activity. The following table presents revenues from external customers by country based on the location of service provided: Three Months Ended Nine Months Ended (in thousands) 2024 2023 2024 2023 Operating revenues United States $ 648,816 $ 674,658 $ 1,911,122 $ 2,051,133 Argentina 38,064 32,388 107,964 101,712 Colombia 31 9,433 8,976 39,454 Bahrain 4,602 4,458 13,634 10,925 United Arab Emirates 2,287 2,401 8,082 7,280 Australia 2,898 — 9,856 — Other foreign 1,026 618 3,180 2,311 Total $ 697,724 $ 723,956 $ 2,062,814 $ 2,212,815 Refer to Note 8—Revenue from Contracts with Customers for additional information regarding the recognition of revenue. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 13 SUBSEQUENT EVENTS On July 25, 2024, H&P entered into a Sale and Purchase Agreement (the “Purchase Agreement”), among the Majority Sellers named therein (the "Majority Sellers"), the Management Seller named therein (the "Management Seller"), Ocorian Limited, a private company limited by shares incorporated in Jersey (together with the Majority Sellers and the Management Seller, the "Lead Sellers"), HP Global Holdings Limited, a private company limited by shares incorporated in Jersey and a wholly owned subsidiary of H&P (the "Purchaser"), and, for certain purposes set forth therein, KCA Deutag International Limited, a private company limited by shares incorporated in Jersey (“KCA Deutag”). Pursuant to the terms of the Purchase Agreement, we have agreed to acquire the entire issued share capital of KCA Deutag (such purchase and sale, together with the other transactions contemplated by the Purchase Agreement, the “Acquisition”) for an aggregate cash purchase price of approximately $946.4 million (the “Unadjusted Purchase Price”), which is subject to customary downward adjustments at the closing for certain items of leakage occurring from December 31, 2023 to the closing, transaction costs and transaction-related bonuses. In addition, to the extent certain German tax obligations of KCA Deutag remain outstanding prior to closing, a portion of the Unadjusted Purchase Price equal to EUR €75.4 million plus interest on such amount at an annual rate of 1.8 percent from October 1, 2024 until closing will be deposited into escrow at closing until such tax obligations are finally settled. The Majority Sellers collectively own approximately 60.581 percent of KCA Deutag's outstanding shares, and the Purchaser will acquire the remaining minority shares of KCA Deutag through the exercise of a drag-along right. The consummation of the Acquisition is subject to the satisfaction or waiver of a number of conditions set forth in the Purchase Agreement, including, (i) the receipt of certain antitrust approvals necessary to consummate the Acquisition, (ii) the accuracy of the warranties set forth in the Purchase Agreement and that certain Deed of Warranty, dated as of July 25, 2024, among the warrantors named therein and the Purchaser, (iii) the absence of a material adverse change with respect to KCA Deutag and its wholly owned subsidiaries and (iv) the compliance by the Lead Sellers and KCA Deutag in all material respects of their obligations under the Purchase Agreement. Subject to the satisfaction of the conditions in the Purchase Agreement, the consummation of the Acquisition is expected to occur prior to the end of the 2024 calendar year. In connection with the Acquisition, we entered into a debt commitment letter dated July 25, 2024 with Morgan Stanley Senior Funding, Inc. (“MSSF”), pursuant to which MSSF has committed, subject to satisfaction of standard conditions, to provide us with an unsecured bridge loan facility in an aggregate principal amount of $1.9725 billion (the “Bridge Loan Facility”). We currently intend to fund the Acquisition and related fees, costs and expenses with a combination of cash on hand, borrowings and through one or more debt capital markets or loan facility transactions, subject to market conditions and other factors, and utilize, only to the extent necessary, borrowings under the Bridge Loan Facility. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||||||
Net income | $ 88,685 | $ 84,831 | $ 95,173 | $ 95,293 | $ 164,040 | $ 97,145 | $ 268,689 | $ 356,478 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
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) | 9 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Interim Financial Information | Interim Financial Information The accompanying Unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) pertaining to interim financial information. Accordingly, these interim financial statements do not include all information or footnote disclosures required by U.S. GAAP for complete financial statements and, therefore, should be read in conjunction with the Consolidated Financial Statements and notes thereto in our 2023 Annual Report on Form 10-K and other current filings with the SEC. In the opinion of management, all adjustments, consisting of those of a normal recurring nature, necessary to present fairly the results of the periods presented have been included. The results of operations for the interim periods presented may not necessarily be indicative of the results to be expected for the full year. |
Reclassification, Comparability Adjustment | Income from discontinued operations was presented as a separate line item on our Unaudited Condensed Consolidated Statements of Operations during the three and nine months ended June 30, 2023. To conform with the current fiscal year presentation, we reclassified amounts previously presented in Income from discontinued operations, which were not material, to Other within Other income (expense) on our Unaudited Condensed Consolidated Statements of Operations for the three and nine months ended June 30, 2023. |
Principles of Consolidation | Principles of Consolidation |
Cash, Cash Equivalents, and Restricted Cash | Cash, Cash Equivalents, and Restricted Cash Cash and cash equivalents include cash on hand, demand deposits with banks and all highly liquid investments with original maturities of three months or less. Our cash, cash equivalents and short-term investments are subject to potential credit risk, and certain of our cash accounts carry balances greater than the federally insured limits. |
Related Party Transactions | Related Party Transactions In October 2022, we made a $14.1 million equity investment, representing 106.0 million common shares in Tamboran Resources Limited ("Tamboran Resources"). In December 2023, all shares of Tamboran Resources were transferred to Tamboran Resources Corporation ("Tamboran Corp.") in exchange for depository interests in Tamboran Corp. Depository interests, referred to as CHESS Depository Interests, each representing beneficial interests of 1/200th of a share of Tamboran Corp. common stock, are listed on the Australian Stock Exchange under the ticker symbol "TBN." Tamboran Corp. is focused on developing a natural gas resource in Australia's Beetaloo Sub-basin. On June 4, 2024, the Company entered into a convertible note agreement with Tamboran Corp. This note was utilized to relieve Tamboran's outstanding accounts receivable balance owed to the Company, and therefore no cash was exchanged as part of the transaction. The convertible note agreement provided that the notes converted into shares of common stock of Tamboran Corp. under certain circumstances in connection with an initial public offering in which its stock was listed on the New York Stock Exchange ("NYSE") or NASDAQ Stock Exchange. On June 26, 2024, Tamboran Corp. completed an initial public offering of its common stock on the NYSE and its common stock is listed on the NYSE, under the ticker "TBN". As a result of this offering, the convertible note of $9.4 million was converted into 0.5 million common shares in Tamboran Corp. Additionally and separately, one of our executive officers serves as a director of Tamboran Corp. Refer to Note 10—Fair Value Measurement of Financial Instruments for additional information related to our investment. Concurrent with the October 2022 investment agreement, we entered into a fixed-term drilling services agreement with Tamboran Resources. As of June 30, 2024, we recorded $1.5 million in receivables and $4.5 million in contract liabilities on our Unaudited Condensed Consolidated Balance Sheets. As of September 30, 2023, we recorded $2.8 million in receivables, $8.0 million in other assets and $6.6 million in contract liabilities on our Consolidated Balance Sheets. We recorded $2.9 million and $9.9 million in revenue on our Unaudited Condensed Consolidated Statement of Operations during the three and nine months ended June 30, 2024, respectively, related to the drilling services agreement with Tamboran Resources, which commenced drilling services during the fourth fiscal quarter of 2023. We expect to earn $32.8 million in revenue over the remaining contract term, and, as such, this amount is included within our contract backlog as of June 30, 2024. |
Recently Issued Accounting Updates | Recently Issued Accounting Updates Changes to U.S. GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of Accounting Standards Updates ("ASUs") to the FASB Accounting Standards Codification ("ASC"). We consider the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to be either not applicable, clarifications of ASUs listed below, immaterial, or already adopted by the Company. The following table provides a brief description of recent accounting pronouncements and our analysis of the effects on our financial statements: Standard Description Date of Effect on the Financial Standards that are not yet adopted as of June 30, 2024 ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures This ASU improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in this update enhance annual and interim disclosure requirements, determine significant segment expense, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. This update is effective for annual periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. Early adoption of the amendments is permitted. Upon adoption, the amendments shall be applied retrospectively to all prior periods presented in the financial statements. October 1, 2024 We plan to adopt this ASU, as required, during fiscal year 2025, with the first disclosure enhancements reflected in our FY 2025 Form 10-K. We are currently evaluating the impact this ASU will have on our disclosures. ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures This ASU enhances income tax disclosure requirements. Under the ASU, public business entities must annually (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income or loss by the applicable statutory income tax rate). Specific categories that must be included in the reconciliation for each annual reporting period are specified in the amendment. This update is effective for annual periods beginning after December 15, 2024. Early adoption of the amendments is permitted. Upon adoption, the amendments shall be applied on a prospective basis. Retrospective application is permitted. October 1, 2025 We plan to adopt this ASU, as required, during fiscal year 2026, with the first disclosure enhancements reflected in our FY 2026 Form 10-K. We are currently evaluating the impact this ASU will have on our disclosures. |
Self-Insurance | Self-Insurance We continue to use our captive insurance companies to insure the deductibles for our domestic workers’ compensation, general liability, automobile liability claims programs, and medical stop-loss program and to insure the deductibles from the Company's international casualty and property programs. Our operating subsidiaries are paying premiums to the Captives, typically on a monthly basis, for the estimated losses based on an external actuarial analysis. These premiums are currently held in a restricted cash account, resulting in a transfer of risk from our operating subsidiaries to the Captives. Direct operating costs primarily consisted of adjustments of $5.3 million and $5.5 million to accruals for estimated losses for the three months ended June 30, 2024 and 2023, respectively, and $10.4 million and $10.2 million for the nine months ended June 30, 2024 and 2023, respectively, and rig and casualty insurance premiums of $9.5 million and $9.7 million during the three months ended June 30, 2024 and 2023, respectively, and $28.5 million and $30.6 million for the nine months ended June 30, 2024 and 2023, respectively. These operating costs were recorded within Drilling services operating expenses in our Unaudited Condensed Consolidated Statement of Operations. Intercompany premium revenues recorded by the Captives during the three months ended June 30, 2024 and 2023 amounted to $14.7 million and $17.4 million, respectively, and $45.7 million and $51.4 million during the nine months ended June 30, 2024 and 2023, respectively, which were eliminated upon consolidation. These intercompany insurance premiums are reflected as segment operating expenses within the North America Solutions, International Solutions, and Offshore Gulf of Mexico reportable operating segments and are reflected as intersegment sales within "Other." Our medical stop loss operating expenses for the three months ended June 30, 2024 and 2023 were $4.1 million and $2.1 million, respectively, and $11.4 million and $7.4 million for the nine months ended June 30, 2024 and 2023, respectively. |
International Solutions Drilling Risks | International Solutions Drilling Risks International Solutions drilling operations may significantly contribute to our revenues and net operating income. There can be no assurance that we will be able to successfully conduct such operations, and a failure to do so may have an adverse effect on our financial position, results of operations, and cash flows. Also, the success of our International Solutions operations will be subject to numerous contingencies, some of which are beyond management’s control. These contingencies include general and regional economic conditions, geopolitical developments and tensions, war and uncertainty in oil-producing countries, fluctuations in currency exchange rates, modified exchange controls, changes in international regulatory requirements and international employment issues, risk of expropriation of real and personal property and the burden of complying with foreign laws. Additionally, in the event that extended labor strikes occur or a country experiences significant political, economic or social instability, we could experience shortages in labor and/or material and supplies necessary to operate some of our drilling rigs, thereby potentially causing an adverse material effect on our business, financial condition and results of operations. We have also experienced certain risks specific to our Argentine operations. In Argentina, while our dayrate is denominated in U.S. dollars, we are paid the equivalent in Argentine pesos. The Central Bank of Argentina maintains certain currency controls that limit our ability to access U.S. dollars and remit funds from our Argentine operations. In the past, the Argentine government has also instituted price controls on crude oil, diesel and gasoline prices and instituted an exchange rate freeze in connection with those prices. These price controls and an exchange rate freeze could be instituted again in the future. Further, there are additional concerns regarding Argentina's debt burden, notwithstanding Argentina's restructuring deal with international bondholders in August 2020, as Argentina attempts to manage its substantial sovereign debt issues. These concerns could further negatively impact Argentina's economy and adversely affect our Argentine operations. Argentina’s economy is considered highly inflationary, which is defined as cumulative inflation rates exceeding 100 percent in the most recent three-year period based on inflation data published by the respective governments. All of our foreign subsidiaries use the U.S. dollar as the functional currency and local currency monetary assets and liabilities are remeasured into U.S. dollars with gains and losses resulting from foreign currency transactions included in current results of operations. We recorded aggregate foreign currency losses of $2.1 million and $4.5 million for the three and nine months ended June 30, 2024, respectively, and $1.4 million and $1.7 million for the three and nine months ended June 30, 2023, respectively . The aggregate foreign currency loss for three and nine months ended June 30, 2024 was primarily due to Argentina's devaluation of its peso relative to the U.S. dollar by approximately 55 percent in December 2023 . In the future, we may incur larger currency devaluations, foreign exchange restrictions or other difficulties repatriating U.S. dollars from Argentina or elsewhere, which could have a material adverse impact on our business, financial condition and results of operations. As of June 30, 2024, our cash balance in Argentina was the U.S. dollar equivalent of $9.2 million in Argentine Pesos. As mentioned above, the Central Bank of Argentina's currency controls continue to 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 three and nine months ended June 30, 2024 , we entered into a Blue Chip Swap transaction, which resulted in a $7.1 million loss on investment recorded in Gain (loss) on investment securities within our Unaudited Condensed Consolidated Statements of Operations. As a result of the Blue Chip Swap transaction, $13.8 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) | 9 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Schedule of Cash and Cash Equivalents | Cash, cash equivalents, and restricted cash are reflected on the Unaudited Condensed Consolidated Balance Sheets as follows: June 30, September 30, (in thousands) 2024 2023 2023 2022 Cash and cash equivalents $ 203,633 $ 220,609 $ 257,174 $ 232,131 Restricted cash 78,369 61,364 59,064 36,246 Restricted cash - long-term: Other assets, net — — — 632 Total cash, cash equivalents, and restricted cash $ 282,002 $ 281,973 $ 316,238 $ 269,009 |
Schedule of Restricted Cash and Cash Equivalents | Cash, cash equivalents, and restricted cash are reflected on the Unaudited Condensed Consolidated Balance Sheets as follows: June 30, September 30, (in thousands) 2024 2023 2023 2022 Cash and cash equivalents $ 203,633 $ 220,609 $ 257,174 $ 232,131 Restricted cash 78,369 61,364 59,064 36,246 Restricted cash - long-term: Other assets, net — — — 632 Total cash, cash equivalents, and restricted cash $ 282,002 $ 281,973 $ 316,238 $ 269,009 |
Schedule of Description of Recent Accounting Pronouncements and Analysis of the Effects on the Financial Statements | The following table provides a brief description of recent accounting pronouncements and our analysis of the effects on our financial statements: Standard Description Date of Effect on the Financial Standards that are not yet adopted as of June 30, 2024 ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures This ASU improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in this update enhance annual and interim disclosure requirements, determine significant segment expense, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. This update is effective for annual periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. Early adoption of the amendments is permitted. Upon adoption, the amendments shall be applied retrospectively to all prior periods presented in the financial statements. October 1, 2024 We plan to adopt this ASU, as required, during fiscal year 2025, with the first disclosure enhancements reflected in our FY 2025 Form 10-K. We are currently evaluating the impact this ASU will have on our disclosures. ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures This ASU enhances income tax disclosure requirements. Under the ASU, public business entities must annually (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income or loss by the applicable statutory income tax rate). Specific categories that must be included in the reconciliation for each annual reporting period are specified in the amendment. This update is effective for annual periods beginning after December 15, 2024. Early adoption of the amendments is permitted. Upon adoption, the amendments shall be applied on a prospective basis. Retrospective application is permitted. October 1, 2025 We plan to adopt this ASU, as required, during fiscal year 2026, with the first disclosure enhancements reflected in our FY 2026 Form 10-K. We are currently evaluating the impact this ASU will have on our disclosures. |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment as of June 30, 2024 and September 30, 2023 consisted of the following: (in thousands) Estimated Useful Lives June 30, 2024 September 30, 2023 Drilling services equipment 4 - 15 years $ 6,596,929 $ 6,396,612 Tubulars 4 years 577,231 564,032 Real estate properties 10 - 45 years 48,463 47,313 Other 2 - 23 years 457,879 443,366 Construction in progress 1 124,844 97,374 7,805,346 7,548,697 Accumulated depreciation (4,791,001) (4,627,002) Property, plant and equipment, net $ 3,014,345 $ 2,921,695 Assets held-for-sale $ — $ 645 (1) Included in construction in progress are costs for projects in progress to upgrade or refurbish certain rigs in our existing fleet. Additionally, we include other advances for capital maintenance purchase-orders that are open/in process. As these various projects are completed, the costs are then classified to their appropriate useful life category. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets Arising from Business Acquisitions | Our intangible assets are recorded within our North America Solutions reportable segment and consist of the following: June 30, 2024 September 30, 2023 (in thousands) Weighted Average Estimated Useful Lives Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Finite-lived intangible asset: Developed technology 15 years $ 89,096 $ 38,558 $ 50,538 $ 89,096 $ 34,092 $ 55,004 Intellectual property 13 years 2,000 622 1,378 2,000 503 1,497 Trade name 20 years 5,865 2,029 3,836 5,865 1,791 4,074 $ 96,961 $ 41,209 $ 55,752 $ 96,961 $ 36,386 $ 60,575 |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Components of Unsecured Long-Term Debt Outstanding | We have the following unsecured long-term debt outstanding with maturity shown in the following table: June 30, 2024 September 30, 2023 (in thousands) Face Amount Unamortized Discount and Debt Issuance Cost Book Value Face Amount Unamortized Discount and Debt Issuance Cost Book Value Unsecured senior notes: Due September 29, 2031 $ 550,000 $ (4,411) $ 545,589 $ 550,000 $ (4,856) $ 545,144 Long-term debt $ 550,000 $ (4,411) $ 545,589 $ 550,000 $ (4,856) $ 545,144 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Components of Accumulated Other Comprehensive Loss | Components of accumulated other comprehensive loss were as follows: June 30, September 30, (in thousands) 2024 2023 Pre-tax amounts: Unrealized pension actuarial loss $ (9,886) $ (10,407) Unrealized loss on available-for-sale debt security (1,191) — $ (11,077) $ (10,407) After-tax amounts: Unrealized pension actuarial loss $ (7,579) $ (7,981) Unrealized loss on available-for-sale debt security (920) — $ (8,499) $ (7,981) |
Schedule of Changes in Accumulated Other Comprehensive Loss | The following is a summary of the changes in accumulated other comprehensive loss, net of tax, for the three and nine months ended June 30, 2024: Three Months Ended June 30, 2024 (in thousands) Unrealized Loss on Available-for-Sale Securities Defined Benefit Pension Plan Total Balance at beginning of period $ — $ (7,713) $ (7,713) Other comprehensive loss before reclassifications (920) — (920) Amounts reclassified from accumulated other comprehensive income — 134 134 Net current-period other comprehensive loss (920) 134 (786) Balance at June 30 2024 $ (920) $ (7,579) $ (8,499) Nine Months Ended June 30, 2024 (in thousands) Unrealized Loss on Available-for-Sale Securities Defined Benefit Pension Plan Total Balance at beginning of period $ — $ (7,981) $ (7,981) Other comprehensive loss before reclassifications (920) — (920) Amounts reclassified from accumulated other comprehensive income — 402 402 Net current-period other comprehensive loss (920) 402 (518) Balance at June 30 2024 $ (920) $ (7,579) $ (8,499) |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contract Assets and Liabilities | The following tables summarize the balances of our contract assets (net of allowance for estimated credit losses) and liabilities at the dates indicated: (in thousands) June 30, 2024 September 30, 2023 Contract assets, net $ 4,899 $ 6,560 (in thousands) June 30, 2024 Contract liabilities balance at September 30, 2023 $ 28,882 Payment received/accrued and deferred 44,486 Revenue recognized during the period (49,042) Contract liabilities balance at June 30, 2024 $ 24,326 |
EARNINGS (LOSSES) PER COMMON SH
EARNINGS (LOSSES) PER COMMON SHARE (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended Nine Months Ended (in thousands, except per share amounts) 2024 2023 2024 2023 Numerator: Net income $ 88,685 $ 95,293 $ 268,689 356,478 Adjustment for basic earnings per share Earnings allocated to unvested shareholders (1,211) (1,283) (3,700) (4,810) Numerator for basic earnings per share 87,474 94,010 264,989 351,668 Adjustment for diluted earnings per share Effect of reallocating undistributed earnings of unvested shareholders 1 2 4 9 Numerator for diluted earnings per share $ 87,475 $ 94,012 $ 264,993 $ 351,677 Denominator: Denominator for basic earnings per share - weighted-average shares 98,752 101,163 98,891 103,464 Effect of dilutive shares from restricted stock and performance share units 255 387 225 388 Denominator for diluted earnings per share - adjusted weighted-average shares 99,007 101,550 99,116 103,852 Basic earnings per common share: $ 0.89 $ 0.93 $ 2.68 $ 3.40 Diluted earnings per common share: $ 0.88 $ 0.93 $ 2.67 $ 3.39 |
Schedule of Anti-Dilutive Shares Excluded from the Calculation of Diluted Earnings Per Share | The following potentially dilutive average shares attributable to outstanding equity awards were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive: Three Months Ended Nine Months Ended (in thousands, except per share amounts) 2024 2023 2024 2023 Potentially dilutive shares excluded as anti-dilutive 2,318 2,964 2,374 2,479 Weighted-average price per share $ 60.00 $ 58.86 $ 60.32 $ 61.88 |
FAIR VALUE MEASUREMENT OF FIN_2
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables summarize our financial assets and liabilities measured at fair value and indicate the level in the fair value hierarchy in which we classify the fair value measurement as of the dates indicated below: June 30, 2024 (in thousands) Fair Value Level 1 Level 2 Level 3 Assets Short-term investments: Corporate and municipal debt securities $ 37,218 $ — $ 37,218 $ — U.S. government and federal agency securities 48,870 48,870 — — Total 86,088 48,870 37,218 — Long-term Investments: Recurring fair value measurements: Equity securities: Non-qualified supplemental savings plan 16,634 16,634 — — Investment in ADNOC Drilling 178,235 178,235 — — Investment in Tamboran 23,018 23,018 — — Debt securities: Investment in Galileo 36,751 — — 36,751 Geothermal debt securities 2,000 — — 2,000 Other debt securities 4,060 3,810 — 250 Total 260,698 221,697 — 39,001 Nonrecurring fair value measurements 1 : Other equity securities 4,071 — — 4,071 Total 4,071 — — 4,071 Total $ 264,769 $ 221,697 $ — $ 43,072 Liabilities Contingent consideration $ 5,000 $ — $ — $ 5,000 (1) As of June 30, 2024, our equity security investments in geothermal energy totaled $27.2 million and our debt security investments in held to maturity bonds totaled $0.3 million. None of these investments were marked to fair value during the period. The investments are measured at cost, less any impairments. September 30, 2023 (in thousands) Fair Value Level 1 Level 2 Level 3 Assets Short-term investments: Corporate debt securities $ 48,764 $ — $ 48,764 $ — U.S. government and federal agency securities 44,836 44,836 — — Total 93,600 44,836 48,764 — Long-term investments: Recurring fair value measurements: Equity securities: Non-qualified supplemental savings plan 14,597 14,597 — — Investment in ADNOC Drilling 174,758 174,758 — — Investment in Tamboran 9,920 9,920 — — Debt securities: Investment in Galileo 35,434 — — 35,434 Geothermal debt securities 2,006 — — 2,006 Total 236,715 199,275 — 37,440 Nonrecurring fair value measurements 1 : Other equity securities 2 2,430 — — 2,430 Total 2,430 — — 2,430 Total $ 239,145 $ 199,275 $ — $ 39,870 Liabilities Contingent consideration $ 9,455 $ — $ — $ 9,455 (1) As of September 30, 2023, our equity security investments in geothermal energy totaled $25.2 million. None of these investments were marked to fair value during the period. The investments are measured at cost, less any impairments. (2) As of September 30, 2023, our other equity securities subject to measurement at fair value on a nonrecurring basis totaled $3.0 million, of which $2.4 million has been marked to fair value. The remaining $0.6 million is measured at cost, less any impairments. |
Schedule of Fair Value, Debt Security Measured on Recurring Basis, Unobservable Input Reconciliation | The following table provides quantitative information (in thousands) about our Level 3 unobservable significant inputs related to our debt security investment with Galileo at the dates included below: June 30, 2024 Fair Value Valuation Technique Unobservable Inputs $ 36,751 Black-Scholes-Merton model Discount rate 20.8 % Risk-free rate 4.3 % Equity volatility 105.0 % |
Schedule of Reconciliation of Long Term Debt Securities Available For Sale, Classified as Level 3 | The following table reconciles changes in the fair value of our Level 3 assets for the periods presented below: Three Months Ended Nine Months Ended (in thousands) 2024 2023 2024 2023 Assets at beginning of period $ 38,551 $ 35,140 $ 37,440 $ 33,565 Purchases — 41 250 2,116 Accrued interest 450 2,001 1,316 2,001 Transfers out — — — (500) Reserves — — (5) — Assets at end of period $ 39,001 $ 37,182 $ 39,001 $ 37,182 The following table reconciles changes in the balance of our equity securities, without readily determinable fair values, including investments that have been subsequently marked to fair value, for the periods presented below: Three Months Ended Nine Months Ended (in millions) 2024 2023 2024 2023 Assets at beginning of period $ 30,152 $ 26,301 $ 28,232 $ 23,745 Purchases 1,105 — 3,641 2,556 Disposals — — (616) — Assets at end of period $ 31,257 $ 26,301 $ 31,257 $ 26,301 |
Schedule of Reconciliation of Changes in Fair Value of Financial Liabilities Classified as Level 3 | The following table reconciles changes in the fair value of our Level 3 liabilities for the periods presented below: Three Months Ended Nine Months Ended (in thousands) 2024 2023 2024 2023 Liabilities at beginning of period $ 14,000 $ 5,030 $ 9,455 $ 4,022 Additions — — — 500 Total gains or losses: Included in earnings 1,000 4,050 6,670 5,808 Settlements 1 (10,000) (500) (11,125) (1,750) Liabilities at end of period $ 5,000 $ 8,580 $ 5,000 $ 8,580 (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 June 30, 2024 and September 30, 2023: (in millions) June 30, 2024 September 30, 2023 Long-term debt, net Carrying value $ 545.6 $ 545.1 Fair value 454.5 435.5 |
BUSINESS SEGMENTS AND GEOGRAP_2
BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information of Reportable Segments | Summarized financial information of our reportable segments for the three and nine months ended June 30, 2024 and 2023 is shown in the following tables: Three Months Ended June 30, 2024 (in thousands) North America Solutions International Solutions Offshore Gulf of Mexico Other Eliminations Total External sales $ 620,040 $ 47,882 $ 27,218 $ 2,584 $ — $ 697,724 Intersegment — — — 14,677 (14,677) — Total sales 620,040 47,882 27,218 17,261 (14,677) 697,724 Segment operating income (loss) $ 163,359 $ (4,844) $ 5,010 $ (4,791) $ (616) $ 158,118 Three Months Ended June 30, 2023 (in thousands) North America Solutions International Solutions Offshore Gulf of Mexico Other Eliminations Total External sales $ 641,612 $ 48,692 $ 31,221 $ 2,431 $ — $ 723,956 Intersegment — — — 17,359 (17,359) — Total sales 641,612 48,692 31,221 19,790 (17,359) 723,956 Segment operating income (loss) $ 169,499 $ (1,397) $ 4,705 $ 2,104 $ 4,470 $ 179,381 Nine Months Ended June 30, 2024 (in thousands) North America Solutions International Solutions Offshore Gulf of Mexico Other Eliminations Total External sales $ 1,827,661 $ 148,512 $ 78,662 $ 7,979 $ — $ 2,062,814 Intersegment — — — 45,649 (45,649) — Total sales 1,827,661 148,512 78,662 53,628 (45,649) 2,062,814 Segment operating income (loss) $ 454,979 $ 4,148 $ 8,140 $ (2,073) $ (1,054) $ 464,140 Nine Months Ended June 30, 2023 (in thousands) North America Solutions International Solutions Offshore Gulf of Mexico Other Eliminations Total External sales $ 1,944,555 $ 159,383 $ 101,364 $ 7,513 $ — $ 2,212,815 Intersegment — — — 51,423 (51,423) — Total sales 1,944,555 159,383 101,364 58,936 (51,423) 2,212,815 Segment operating income $ 496,945 $ 4,132 $ 18,138 $ 13,604 $ 4,513 $ 537,332 |
Schedule of Reconciliation of Segment Operating Income (Loss) to Income from Continuing Operations Before Income Taxes | The following table reconciles segment operating income per the tables above to income before income taxes as reported on the Unaudited Condensed Consolidated Statements of Operations: Three Months Ended Nine Months Ended (in thousands) 2024 2023 2024 2023 Segment operating income $ 158,118 $ 179,381 $ 464,140 $ 537,332 Gain on reimbursement of drilling equipment 9,732 10,642 24,687 37,940 Other gain (loss) on sale of assets (2,730) (4,504) (2,718) 394 Corporate selling, general and administrative costs and corporate depreciation (53,807) (36,777) (140,756) (107,496) Operating income 111,313 148,742 345,353 468,170 Other income (expense) Interest and dividend income 11,888 10,748 29,189 20,508 Interest expense (4,336) (4,324) (12,969) (12,918) Gain (loss) on investment securities 389 (18,538) 102 6,123 Other 3,134 (672) 2,991 (1,218) Total unallocated amounts 11,075 (12,786) 19,313 12,495 Income before income taxes $ 122,388 $ 135,956 $ 364,666 $ 480,665 |
Schedule of Total Assets by Reportable Segment | The following table reconciles segment total assets to total assets as reported on the Unaudited Condensed Consolidated Balance Sheets: (in thousands) June 30, 2024 September 30, 2023 Total assets 1 North America Solutions $ 3,340,926 $ 3,320,203 International Solutions 526,030 407,143 Offshore Gulf of Mexico 75,885 73,319 Other 171,550 154,290 4,114,391 3,954,955 Investments and corporate operations 370,591 427,001 $ 4,484,982 $ 4,381,956 (1) Assets by segment exclude investments in subsidiaries and intersegment activity. |
Schedule of Revenues from External Customers by Country | The following table presents revenues from external customers by country based on the location of service provided: Three Months Ended Nine Months Ended (in thousands) 2024 2023 2024 2023 Operating revenues United States $ 648,816 $ 674,658 $ 1,911,122 $ 2,051,133 Argentina 38,064 32,388 107,964 101,712 Colombia 31 9,433 8,976 39,454 Bahrain 4,602 4,458 13,634 10,925 United Arab Emirates 2,287 2,401 8,082 7,280 Australia 2,898 — 9,856 — Other foreign 1,026 618 3,180 2,311 Total $ 697,724 $ 723,956 $ 2,062,814 $ 2,212,815 |
NATURE OF OPERATIONS (Details)
NATURE OF OPERATIONS (Details) | 9 Months Ended |
Jun. 30, 2024 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 | 9 Months Ended | ||||
Oct. 31, 2022 USD ($) shares | Jun. 30, 2024 USD ($) geographical_area executiveOfficer shares | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) executiveOfficer shares | Jun. 30, 2023 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||||||
Restricted cash and cash equivalents | $ 78,400 | $ 61,400 | $ 78,400 | $ 61,400 | $ 59,100 | $ 36,900 | |
Additional cash and cash equivalents restricted at the election of management for potential insurance claims | 58,400 | ||||||
Convertible notes | $ 9,400 | $ 9,400 | |||||
Convertible notes (in shares) | shares | 0.5 | 0.5 | |||||
Number of executive officers serving on related party board | executiveOfficer | 1 | 1 | |||||
Receivables | $ 415,395 | $ 415,395 | 404,188 | ||||
Other assets, net | 49,369 | 49,369 | 32,061 | ||||
Contract liability | 24,326 | 24,326 | 28,882 | ||||
Drilling services | 695,139 | 721,567 | 2,054,835 | 2,205,419 | |||
Underwriting expense | 5,300 | 5,500 | 10,400 | 10,200 | |||
Casualty insurance premiums | 9,500 | 9,700 | 28,500 | 30,600 | |||
Premium revenues and expenses | 14,700 | 17,400 | 45,700 | 51,400 | |||
Stop-loss medical expenses | 4,100 | 2,100 | 11,400 | 7,400 | |||
Foreign currency losses | 2,100 | $ 1,400 | 4,500 | $ 1,700 | |||
Foreign Exchange | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Foreign currency losses | $ 7,100 | $ 7,100 | |||||
International Locations | Geographic Concentration Risk | Operating Revenue | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Concentration percentage | 7% | 6.80% | 7.40% | 7.30% | |||
Minimum | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Number of geographical areas operating | geographical_area | 1 | ||||||
Argentina | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Cash | $ 9,200 | $ 9,200 | |||||
South America | International Locations | Geographic Concentration Risk | Operating Revenue | International Solutions | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Concentration percentage | 77.90% | 84.80% | 77.10% | 87.30% | |||
United States | Foreign Exchange | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Proceeds received | $ 13,800 | ||||||
Tamboran Resources Limited | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Payments to acquire investments | $ 14,100 | ||||||
Investment shares acquired (in shares) | shares | 106 | ||||||
Investee | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Receivables | $ 1,500 | 1,500 | 2,800 | ||||
Other assets, net | 8,000 | ||||||
Contract liability | 4,500 | 4,500 | 6,600 | ||||
Drilling services | 2,900 | $ 9,900 | |||||
Expected revenue | $ 32,800 | ||||||
Acquisition of Drilling Technologies Companies | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Restricted cash and cash equivalents | $ 700 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES , RELATED RISKS AND UNCERTAINTIES - Restricted Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Sep. 30, 2023 | Jun. 30, 2023 | Sep. 30, 2022 |
Restricted Cash and Investments | ||||
Cash and cash equivalents | $ 203,633 | $ 257,174 | $ 220,609 | $ 232,131 |
Restricted cash and cash equivalents | 78,400 | 59,100 | 61,400 | 36,900 |
Total cash, cash equivalents, and restricted cash | 282,002 | 316,238 | 281,973 | 269,009 |
Restricted cash | ||||
Restricted Cash and Investments | ||||
Restricted cash and cash equivalents | 78,369 | 59,064 | 61,364 | 36,246 |
Other assets, net | ||||
Restricted Cash and Investments | ||||
Restricted cash and cash equivalents | $ 0 | $ 0 | $ 0 | $ 632 |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Sep. 30, 2023 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 7,805,346 | $ 7,548,697 |
Accumulated depreciation | (4,791,001) | (4,627,002) |
Property, plant and equipment, net | 3,014,345 | 2,921,695 |
Assets held-for-sale | 0 | 645 |
Drilling services equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 6,596,929 | 6,396,612 |
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 | $ 577,231 | 564,032 |
Real estate properties | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 48,463 | 47,313 |
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 | $ 457,879 | 443,366 |
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 | $ 124,844 | $ 97,374 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT - Narrative (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Nov. 30, 2022 rig | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) rig | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) rig | Sep. 30, 2023 USD ($) | |
Property, Plant and Equipment [Line Items] | ||||||
Depreciation | $ 96,200,000 | $ 93,200,000 | $ 291,500,000 | $ 282,700,000 | ||
Abandonments included in depreciation | 100,000 | 200,000 | 3,200,000 | 2,400,000 | ||
Accelerated depreciation | 2,700,000 | 400,000 | 10,900,000 | 2,100,000 | ||
Rigs damaged by fire | rig | 1 | |||||
Abandonment expense | 9,200,000 | |||||
Insurance proceeds | $ 9,200,000 | |||||
Gain on involuntary conversion | 5,500,000 | |||||
Insurance proceeds from involuntary conversion | 5,500,000 | 5,533,000 | 0 | |||
Asset impairment charges | 0 | 0 | 0 | 12,097,000 | ||
Property, plant and equipment, net | 3,014,345,000 | 3,014,345,000 | $ 2,921,695,000 | |||
Impairment charge for assets held for sale | 1,300,000 | |||||
Gain on reimbursement of drilling equipment | $ 9,732,000 | 10,642,000 | $ 24,687,000 | 37,940,000 | ||
Assets Previously Held For Sale | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment, net | 3,000,000 | 3,000,000 | ||||
Property, plant, and equipment, salvage value | 300,000 | 300,000 | ||||
Impairment charge for assets held for sale | 2,700,000 | |||||
International FlexRig | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment, net | 8,800,000 | 8,800,000 | ||||
Property, plant, and equipment, salvage value | $ 700,000 | 700,000 | ||||
Impairment charge for assets held for sale | $ 8,100,000 | |||||
Number of rigs, held-for -sale | rig | 4 | 4 | ||||
Conventional Drilling Rigs | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Number of rigs, held-for -sale | rig | 4 | 4 | ||||
Additional Equipment | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment, net | $ 1,400,000 | $ 1,400,000 | ||||
Property, plant, and equipment, salvage value | $ 100,000 | $ 100,000 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Goodwill additions | $ 0 | $ 0 | |||
Impairments of goodwill | 0 | 0 | |||
Goodwill | 45,653 | 45,653 | $ 45,653 | ||
Amortization | 1,600 | $ 1,600 | 4,800 | $ 5,000 | |
Expected amortization in 2024 | 1,600 | 1,600 | |||
Expected amortization in 2025 | 6,400 | 6,400 | |||
Expected amortization in 2026 | 6,400 | 6,400 | |||
Expected amortization in 2027 | 6,400 | 6,400 | |||
Expected amortization in 2028 | $ 6,400 | $ 6,400 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Intangible Assets Arising from Business Acquisitions (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Sep. 30, 2023 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 96,961 | $ 96,961 |
Accumulated Amortization | 41,209 | 36,386 |
Net | $ 55,752 | 60,575 |
Developed technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Estimated Useful Lives | 15 years | |
Gross Carrying Amount | $ 89,096 | 89,096 |
Accumulated Amortization | 38,558 | 34,092 |
Net | $ 50,538 | 55,004 |
Intellectual property | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Estimated Useful Lives | 13 years | |
Gross Carrying Amount | $ 2,000 | 2,000 |
Accumulated Amortization | 622 | 503 |
Net | $ 1,378 | 1,497 |
Trade name | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Estimated Useful Lives | 20 years | |
Gross Carrying Amount | $ 5,865 | 5,865 |
Accumulated Amortization | 2,029 | 1,791 |
Net | $ 3,836 | $ 4,074 |
DEBT - Unsecured Long-Term Debt
DEBT - Unsecured Long-Term Debt Outstanding (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Sep. 30, 2023 |
Long-term debt | ||
Face Amount | $ 550,000 | $ 550,000 |
Unamortized Discount and Debt Issuance Cost | (4,411) | (4,856) |
Long-term debt, net | 545,589 | 545,144 |
Unsecured Senior Notes due September 29, 2031 | ||
Long-term debt, gross | ||
Face Amount | 550,000 | 550,000 |
Unamortized Discount and Debt Issuance Cost | (4,411) | (4,856) |
Book Value | $ 545,589 | $ 545,144 |
DEBT - Narrative (Details)
DEBT - Narrative (Details) | Jun. 30, 2024 USD ($) | Feb. 10, 2023 USD ($) | Mar. 08, 2022 USD ($) optionForDebtExtension | Mar. 07, 2022 optionForDebtExtension | Sep. 29, 2021 USD ($) | Apr. 16, 2021 USD ($) |
Unsecured Senior Notes due September 29, 2031 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate (as a percent) | 2.90% | |||||
Face amount of debt | $ 550,000,000 | |||||
2018 Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 750,000,000 | |||||
Borrowings outstanding | 0 | |||||
Available borrowing capacity | 750,000,000 | |||||
2018 Credit Facility | Letters of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | 75,000,000 | |||||
2018 Credit Facility, Due November 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 680,000,000 | $ 680,000,000 | $ 680,000,000 | |||
Number of debt extensions | optionForDebtExtension | 2 | 1 | ||||
2018 Credit Facility, Due November 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | 70,000,000 | |||||
Unsecured Standalone Line of Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | 120,000,000 | |||||
Borrowings outstanding | 41,700,000 | |||||
Letter of Credit - Instrument 1 | Letters of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Letters of credit outstanding | 5,000,000 | |||||
Letter of Credit - Instrument 3 | Letters of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Letters of credit outstanding | $ 46,700,000 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 33,703 | $ 40,663 | $ 95,977 | $ 124,187 |
Effective tax rate (as a percent) | 27.50% | 29.90% | 26.30% | 25.90% |
Effective income tax rate reconciliation, other adjustments | $ 800 | |||
Effective tax expense (benefit) related to equity compensation | 1,600 | $ 2,400 | $ 2,300 | |
Potential increase (decrease) in uncertain tax liabilities | $ 700 | |||
Potential decrease in uncertain tax liabilities | $ 2,700 | $ 2,700 |
SHAREHOLDERS' EQUITY - Narrativ
SHAREHOLDERS' EQUITY - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 3 Months Ended | 9 Months Ended | |||||||
Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2024 | Jun. 30, 2023 | Sep. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |||||||||
Number of common shares authorized to be repurchased (in shares) | 4 | 4 | |||||||
Shares of common stock repurchased (in shares) | 3.2 | 1.4 | 6.5 | ||||||
Aggregate cost of repurchased shares | $ 103,200 | $ 51,600 | $ 249,000 | ||||||
Excise tax | $ 1,000 | 300 | $ 1,800 | ||||||
Dividends declared | $ 42,000 | 143,300 | |||||||
Dividends declared (in dollars per share) | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | |||
Dividends declared, supplemental (in dollars per share) | $ 0.17 | $ 0.17 | $ 0.34 | $ 0.235 | $ 0.47 | ||||
Dividends payable | $ 42,045 | $ 42,045 | $ 25,194 |
SHAREHOLDERS' EQUITY - Componen
SHAREHOLDERS' EQUITY - Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Sep. 30, 2023 |
After-tax amounts: | ||
Unrealized pension actuarial loss | $ (8,499) | $ (7,981) |
Unrealized pension actuarial loss | ||
Pre-tax amounts: | ||
Unrealized pension actuarial loss | (9,886) | (10,407) |
After-tax amounts: | ||
Unrealized pension actuarial loss | (7,579) | (7,981) |
Unrealized loss on available-for-sale debt security | ||
Pre-tax amounts: | ||
Unrealized pension actuarial loss | (1,191) | 0 |
After-tax amounts: | ||
Unrealized pension actuarial loss | (920) | 0 |
Accumulated Other Comprehensive Income (Loss) | ||
Pre-tax amounts: | ||
Unrealized pension actuarial loss | (11,077) | (10,407) |
After-tax amounts: | ||
Unrealized pension actuarial loss | $ (8,499) | $ (7,981) |
SHAREHOLDERS' EQUITY - Schedule
SHAREHOLDERS' EQUITY - Schedule of Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Jun. 30, 2024 | Jun. 30, 2024 | |
Rollforward of accumulated other comprehensive income (loss), net of tax | ||
Beginning balance | $ 2,803,074 | $ 2,771,943 |
Ending balance | 2,856,845 | 2,856,845 |
Unrealized Loss on Available-for-Sale Securities | ||
Rollforward of accumulated other comprehensive income (loss), net of tax | ||
Beginning balance | 0 | 0 |
Other comprehensive loss before reclassifications | (920) | (920) |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 |
Net current-period other comprehensive loss | (920) | (920) |
Ending balance | (920) | (920) |
Unrealized pension actuarial loss | ||
Rollforward of accumulated other comprehensive income (loss), net of tax | ||
Beginning balance | (7,713) | (7,981) |
Other comprehensive loss before reclassifications | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income | 134 | 402 |
Net current-period other comprehensive loss | 134 | 402 |
Ending balance | (7,579) | (7,579) |
Accumulated Other Comprehensive Income (Loss) | ||
Rollforward of accumulated other comprehensive income (loss), net of tax | ||
Beginning balance | (7,713) | (7,981) |
Other comprehensive loss before reclassifications | (920) | (920) |
Amounts reclassified from accumulated other comprehensive income | 134 | 402 |
Net current-period other comprehensive loss | (786) | (518) |
Ending balance | $ (8,499) | $ (8,499) |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |||||
Revenue from performance contracts | $ 294.4 | $ 883.3 | $ 880.4 | $ 316.2 | |
Performance bonuses recognized | 11.8 | $ 11.4 | 37.4 | $ 33 | |
Capitalized fulfillment costs | $ 11.6 | $ 11.6 | $ 11.4 |
REVENUE FROM CONTRACTS WITH C_4
REVENUE FROM CONTRACTS WITH CUSTOMERS - Remaining Performance Obligations (Details) $ in Billions | 9 Months Ended |
Jun. 30, 2024 USD ($) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Amount of remaining performance obligation | $ 1.5 |
Period of unsatisfied performance obligations represented in backlog contracts with month-to-month terms | 1 month |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Amount of remaining performance obligation | $ 0.3 |
Expected timing of satisfaction for remaining performance obligation | 3 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 | $ 0.6 |
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 | $ 0.6 |
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 | 9 Months Ended | |
Jun. 30, 2024 | Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | ||
Contract assets, net | $ 4,899 | $ 6,560 |
Change in Contract with Customer, Liability [Roll Forward] | ||
Contract liabilities beginning balance | 28,882 | |
Payment received/accrued and deferred | 44,486 | |
Revenue recognized during the period | (49,042) | |
Contract liabilities ending balance | $ 24,326 |
EARNINGS (LOSSES) PER COMMON _2
EARNINGS (LOSSES) PER COMMON SHARE - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2024 | Jun. 30, 2023 | |
Numerator: | ||||||||
Net income | $ 88,685 | $ 84,831 | $ 95,173 | $ 95,293 | $ 164,040 | $ 97,145 | $ 268,689 | $ 356,478 |
Adjustment for basic earnings per share | ||||||||
Earnings allocated to unvested shareholders | (1,211) | (1,283) | (3,700) | (4,810) | ||||
Numerator for basic earnings per share | 87,474 | 94,010 | 264,989 | 351,668 | ||||
Adjustment for diluted earnings per share | ||||||||
Effect of reallocating undistributed earnings of unvested shareholders | 1 | 2 | 4 | 9 | ||||
Numerator for diluted earnings per share | $ 87,475 | $ 94,012 | $ 264,993 | $ 351,677 | ||||
Denominator: | ||||||||
Denominator for basic earnings (loss) per share - weighted-average shares (in shares) | 98,752 | 101,163 | 98,891 | 103,464 | ||||
Effect of dilutive shares from stock options, restricted stock and performance share units (in shares) | 255 | 387 | 225 | 388 | ||||
Denominator for diluted earnings (loss) per share - adjusted weighted-average shares (in shares) | 99,007 | 101,550 | 99,116 | 103,852 | ||||
Basic earnings per common share (in dollars per share) | $ 0.89 | $ 0.93 | $ 2.68 | $ 3.40 | ||||
Diluted earnings per common share (in dollars per share) | $ 0.88 | $ 0.93 | $ 2.67 | $ 3.39 |
EARNINGS (LOSSES) PER COMMON _3
EARNINGS (LOSSES) PER COMMON SHARE - Anti-Dilutive Shares Excluded from the Calculation of Diluted Earnings Per Share (Details) - $ / shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Earnings Per Share [Abstract] | ||||
Potentially dilutive shares excluded as anti-dilutive (in shares) | 2,318 | 2,964 | 2,374 | 2,479 |
Weighted-average price per share (in dollars per share) | $ 60 | $ 58.86 | $ 60.32 | $ 61.88 |
FAIR VALUE MEASUREMENT OF FIN_3
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS - Schedule of Assets Measured at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 | Sep. 30, 2023 |
Short-term investments: | |||
Total short-term investments | $ 86,088 | $ 93,600 | |
Nonrecurring fair value measurements | |||
Total | 264,769 | 239,145 | |
Geothermal Investments | |||
Liabilities | |||
Equity securities | $ 27,200 | 25,200 | |
Recurring Fair Value Measurements | |||
Long-term Investments: | |||
Non-qualified supplemental savings plan | 16,634 | 14,597 | |
Nonrecurring fair value measurements | |||
Total | 260,698 | 236,715 | |
Liabilities | |||
Contingent consideration | 5,000 | 9,455 | |
Recurring Fair Value Measurements | ADNOC Drilling | |||
Long-term Investments: | |||
Equity securities, investment | 178,235 | 174,758 | |
Recurring Fair Value Measurements | Tamboran Resources Limited | |||
Long-term Investments: | |||
Equity securities, investment | 23,018 | 9,920 | |
Recurring Fair Value Measurements | Galileo Technologies | |||
Long-term Investments: | |||
Debt securities, investment | 36,751 | 35,434 | |
Recurring Fair Value Measurements | Geothermal Investments | |||
Long-term Investments: | |||
Debt securities, investment | 2,000 | 2,006 | |
Recurring Fair Value Measurements | Other | |||
Long-term Investments: | |||
Debt securities, investment | 4,060 | ||
Fair Value, Nonrecurring | |||
Nonrecurring fair value measurements | |||
Other equity securities | 4,071 | 2,430 | |
Total | 4,071 | 2,430 | |
Liabilities | |||
Debt security investments | 300 | ||
Fair Value, Nonrecurring | Other | |||
Long-term Investments: | |||
Equity securities, investment | 3,000 | ||
Liabilities | |||
Equity securities | 600 | ||
Level 1 | |||
Short-term investments: | |||
Total short-term investments | 48,870 | 44,836 | |
Nonrecurring fair value measurements | |||
Total | 221,697 | 199,275 | |
Level 1 | Recurring Fair Value Measurements | |||
Long-term Investments: | |||
Non-qualified supplemental savings plan | 16,634 | 14,597 | |
Nonrecurring fair value measurements | |||
Total | 221,697 | 199,275 | |
Liabilities | |||
Contingent consideration | 0 | 0 | |
Level 1 | Recurring Fair Value Measurements | ADNOC Drilling | |||
Long-term Investments: | |||
Equity securities, investment | 178,235 | 174,758 | |
Level 1 | Recurring Fair Value Measurements | Tamboran Resources Limited | |||
Long-term Investments: | |||
Equity securities, investment | 23,018 | 9,920 | |
Level 1 | Recurring Fair Value Measurements | Galileo Technologies | |||
Long-term Investments: | |||
Debt securities, investment | 0 | 0 | |
Level 1 | Recurring Fair Value Measurements | Geothermal Investments | |||
Long-term Investments: | |||
Debt securities, investment | 0 | 0 | |
Level 1 | Recurring Fair Value Measurements | Other | |||
Long-term Investments: | |||
Debt securities, investment | 3,810 | ||
Level 1 | Fair Value, Nonrecurring | |||
Nonrecurring fair value measurements | |||
Other equity securities | 0 | 0 | |
Total | 0 | 0 | |
Level 2 | |||
Short-term investments: | |||
Total short-term investments | 37,218 | 48,764 | |
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 | Tamboran Resources Limited | |||
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 | Geothermal Investments | |||
Long-term Investments: | |||
Debt securities, investment | 0 | 0 | |
Level 2 | Recurring Fair Value Measurements | Other | |||
Long-term Investments: | |||
Debt securities, investment | 0 | ||
Level 2 | Fair Value, Nonrecurring | |||
Nonrecurring fair value measurements | |||
Other equity securities | 0 | 0 | |
Total | 0 | 0 | |
Level 3 | |||
Short-term investments: | |||
Total short-term investments | 0 | 0 | |
Nonrecurring fair value measurements | |||
Total | 43,072 | 39,870 | |
Level 3 | Recurring Fair Value Measurements | |||
Long-term Investments: | |||
Non-qualified supplemental savings plan | 0 | 0 | |
Debt securities, investment | 36,751 | ||
Nonrecurring fair value measurements | |||
Total | 39,001 | 37,440 | |
Liabilities | |||
Contingent consideration | 5,000 | 9,455 | |
Level 3 | Recurring Fair Value Measurements | ADNOC Drilling | |||
Long-term Investments: | |||
Equity securities, investment | 0 | 0 | |
Level 3 | Recurring Fair Value Measurements | Tamboran Resources Limited | |||
Long-term Investments: | |||
Equity securities, investment | 0 | 0 | |
Level 3 | Recurring Fair Value Measurements | Galileo Technologies | |||
Long-term Investments: | |||
Debt securities, investment | 36,751 | 35,434 | |
Level 3 | Recurring Fair Value Measurements | Geothermal Investments | |||
Long-term Investments: | |||
Debt securities, investment | 2,000 | 2,006 | |
Level 3 | Recurring Fair Value Measurements | Other | |||
Long-term Investments: | |||
Debt securities, investment | 250 | ||
Level 3 | Fair Value, Nonrecurring | |||
Nonrecurring fair value measurements | |||
Other equity securities | 4,071 | 2,430 | |
Total | 4,071 | 2,430 | |
Liabilities | |||
Equity securities, fair value | 2,400 | ||
Corporate and municipal debt securities | |||
Short-term investments: | |||
Total short-term investments | 37,218 | 48,764 | |
Corporate and municipal debt securities | Level 1 | |||
Short-term investments: | |||
Total short-term investments | 0 | 0 | |
Corporate and municipal debt securities | Level 2 | |||
Short-term investments: | |||
Total short-term investments | 37,218 | 48,764 | |
Corporate and municipal 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 | 48,870 | 44,836 | |
U.S. government and federal agency securities | Level 1 | |||
Short-term investments: | |||
Total short-term investments | 48,870 | 44,836 | |
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 ($) shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Oct. 31, 2022 | Apr. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
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 | $ 5.6 | $ (17) | $ 3.5 | $ 7.4 | |||
Unrealized gain (loss) on investments | $ 1.9 | $ 1.5 | $ 3.7 | ||||
Depository Beneficial Interests | 0.50% | ||||||
Equity Method Investments, Lockup Period | 180 days | ||||||
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 | ||||||
Investment balance (in shares) | 159.7 | ||||||
Investments lockup period (in years) | 3 years | ||||||
ADNOC Drilling | ADNOC Drilling | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Ownership percentage (as a percent) | 1% | ||||||
Tamboran Resources Limited | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Payments to acquire investments | $ 14.1 | ||||||
Investment shares acquired (in shares) | 106 | ||||||
Tamboran Resources Limited | Tamboran Resources Limited | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Ownership percentage (as a percent) | 7.20% | 7.20% | |||||
Galileo Technologies | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Payments to acquire investments | $ 33 |
FAIR VALUE MEASUREMENT OF FIN_5
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS - Level 3 Unobservable Inputs (Details) - Level 3 $ in Thousands | Jun. 30, 2024 USD ($) |
Discount rate | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Unobservable Inputs | 0.208 |
Risk-free rate | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Unobservable Inputs | 0.043 |
Equity volatility | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Unobservable Inputs | 1.050 |
Recurring Fair Value Measurements | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value | $ 36,751 |
FAIR VALUE MEASUREMENT OF FIN_6
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS - Reconciliation of Changes in Fair Value of Financial Assets and Liabilities Classified as Level 3 (Details) - Level 3 - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Reconciliation of changes in the fair value of our financial liabilities | ||||
Liabilities at beginning of period | $ 14,000 | $ 5,030 | $ 9,455 | $ 4,022 |
Additions | 0 | 0 | 0 | 500 |
Total gains or losses included in earnings | 1,000 | 4,050 | 6,670 | 5,808 |
Settlements | (10,000) | (500) | (11,125) | (1,750) |
Liabilities at end of period | 5,000 | 8,580 | 5,000 | 8,580 |
Debt Securities | ||||
Reconciliation of changes in the fair value of our financial assets | ||||
Assets at beginning of period | 38,551 | 35,140 | 37,440 | 33,565 |
Purchases | 0 | 41 | 250 | 2,116 |
Accrued interest | 450 | 2,001 | 1,316 | 2,001 |
Transfers out | 0 | 0 | 0 | (500) |
Reserves | 0 | 0 | (5) | 0 |
Assets at end of period | 39,001 | 37,182 | 39,001 | 37,182 |
Equity Securities Without Readily Determinable Fair Value | ||||
Reconciliation of changes in the fair value of our financial assets | ||||
Assets at beginning of period | 30,152 | 26,301 | 28,232 | 23,745 |
Purchases | 1,105 | 0 | 3,641 | 2,556 |
Disposals | 0 | 0 | (616) | 0 |
Assets at end of period | $ 31,257 | $ 26,301 | $ 31,257 | $ 26,301 |
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 | Jun. 30, 2024 | Sep. 30, 2023 |
Long-term debt, net | ||
Carrying value | $ 545,589 | $ 545,144 |
Carrying value | ||
Long-term debt, net | ||
Carrying value | 545,600 | 545,100 |
Fair value | Level 2 | ||
Long-term debt, net | ||
Fair value | $ 454,500 | $ 435,500 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) $ in Thousands | 9 Months Ended | |
Jun. 30, 2024 USD ($) renewalOption | Sep. 30, 2023 USD ($) | |
Other Commitments [Line Items] | ||
Operating lease right-of-use assets | $ 57,315 | $ 50,400 |
Leases renewed | renewalOption | 1 | |
Purchase commitments for equipment, parts and supplies | $ 99,600 | |
Tulsa Industrial Facility | ||
Other Commitments [Line Items] | ||
Number of renewal options | renewalOption | 2 | |
Renewal option term | 5 years | |
Land and Building | ||
Other Commitments [Line Items] | ||
Operating lease, liability | $ 18,100 | |
Operating lease right-of-use assets | $ 18,100 |
BUSINESS SEGMENTS AND GEOGRAP_3
BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION - Schedule of Financial Information of Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 697,724 | $ 723,956 | $ 2,062,814 | $ 2,212,815 |
Segment operating income (loss) | 111,313 | 148,742 | 345,353 | 468,170 |
Intersegment | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (14,677) | (17,359) | (45,649) | (51,423) |
Segment operating income (loss) | (616) | 4,470 | (1,054) | 4,513 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 697,724 | 723,956 | 2,062,814 | 2,212,815 |
Segment operating income (loss) | 158,118 | 179,381 | 464,140 | 537,332 |
North America Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 620,040 | 641,612 | 1,827,661 | 1,944,555 |
North America Solutions | Intersegment | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
North America Solutions | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 620,040 | 641,612 | 1,827,661 | 1,944,555 |
Segment operating income (loss) | 163,359 | 169,499 | 454,979 | 496,945 |
Offshore Gulf of Mexico | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 47,882 | 48,692 | 148,512 | 159,383 |
Offshore Gulf of Mexico | Intersegment | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Offshore Gulf of Mexico | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 47,882 | 48,692 | 148,512 | 159,383 |
Segment operating income (loss) | (4,844) | (1,397) | 4,148 | 4,132 |
International Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 27,218 | 31,221 | 78,662 | 101,364 |
International Solutions | Intersegment | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
International Solutions | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 27,218 | 31,221 | 78,662 | 101,364 |
Segment operating income (loss) | 5,010 | 4,705 | 8,140 | 18,138 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 2,584 | 2,431 | 7,979 | 7,513 |
Other | Intersegment | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (14,677) | (17,359) | (45,649) | (51,423) |
Other | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 17,261 | 19,790 | 53,628 | 58,936 |
Segment operating income (loss) | $ (4,791) | $ 2,104 | $ (2,073) | $ 13,604 |
BUSINESS SEGMENTS AND GEOGRAP_4
BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION - Reconciliation of Segment Operating Income (Loss) to Income from Continuing Operations before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Abstract] | ||||
Operating income | $ 111,313 | $ 148,742 | $ 345,353 | $ 468,170 |
Gain on reimbursement of drilling equipment | 9,732 | 10,642 | 24,687 | 37,940 |
Other gain (loss) on sale of assets | (2,730) | (4,504) | (2,718) | 394 |
Corporate selling, general and administrative costs and corporate depreciation | 66,870 | 49,271 | 185,484 | 150,581 |
Other income (expense) | ||||
Interest and dividend income | 11,888 | 10,748 | 29,189 | 20,508 |
Interest expense | (4,336) | (4,324) | (12,969) | (12,918) |
Gain (loss) on investment securities | 389 | (18,538) | 102 | 6,123 |
Other | 3,134 | (672) | 2,991 | (1,218) |
Total unallocated amounts | 11,075 | (12,786) | 19,313 | 12,495 |
Income before income taxes | 122,388 | 135,956 | 364,666 | 480,665 |
Operating Segments | ||||
Segment Reporting Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Abstract] | ||||
Operating income | 158,118 | 179,381 | 464,140 | 537,332 |
Segment Reconciling Items | ||||
Segment Reporting Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Abstract] | ||||
Gain on reimbursement of drilling equipment | 9,732 | 10,642 | 24,687 | 37,940 |
Other gain (loss) on sale of assets | (2,730) | (4,504) | (2,718) | 394 |
Corporate, Non-Segment | ||||
Segment Reporting Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Abstract] | ||||
Corporate selling, general and administrative costs and corporate depreciation | $ (53,807) | $ (36,777) | $ (140,756) | $ (107,496) |
BUSINESS SEGMENTS AND GEOGRAP_5
BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION - Reconciliation of Segment Assets to Consolidated Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Sep. 30, 2023 |
Segment Reporting Information [Line Items] | ||
Assets | $ 4,484,982 | $ 4,381,956 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Assets | 4,114,391 | 3,954,955 |
Corporate, Non-Segment | ||
Segment Reporting Information [Line Items] | ||
Assets | 370,591 | 427,001 |
North America Solutions | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Assets | 3,340,926 | 3,320,203 |
International Solutions | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Assets | 526,030 | 407,143 |
Offshore Gulf of Mexico | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Assets | 75,885 | 73,319 |
Other | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 171,550 | $ 154,290 |
BUSINESS SEGMENTS AND GEOGRAP_6
BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION - Revenues from External Customers and Long-Lived Assets by Country (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting Information [Line Items] | ||||
Operating revenues | $ 697,724 | $ 723,956 | $ 2,062,814 | $ 2,212,815 |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 648,816 | 674,658 | 1,911,122 | 2,051,133 |
Argentina | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 38,064 | 32,388 | 107,964 | 101,712 |
Colombia | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 31 | 9,433 | 8,976 | 39,454 |
Bahrain | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 4,602 | 4,458 | 13,634 | 10,925 |
United Arab Emirates | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 2,287 | 2,401 | 8,082 | 7,280 |
Australia | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 2,898 | 0 | 9,856 | 0 |
Other foreign | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | $ 1,026 | $ 618 | $ 3,180 | $ 2,311 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent Event - KCA Deutag € in Millions | Jul. 25, 2024 USD ($) | Jul. 25, 2024 EUR (€) |
Subsequent Event | ||
Expected unadjusted purchase price | $ 946,400,000 | |
Expected unadjusted purchase price, escrow deposit | € | € 75.4 | |
Expected unadjusted purchase price, escrow deposit, interest rate | 0.018 | 0.018 |
Bridge Loan | Morgan Stanley Senior Funding, Inc. | ||
Subsequent Event | ||
Debt, agreed amount to be borrowed | $ 1,972,500,000 | |
KCA Deutag | Majority Sellers | ||
Subsequent Event | ||
Ownership interest | 60.581% |