Helmerich & Payne Inc. F1Q09 (Qtr End 12/31/2008) Earnings Call Transcript

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2009-01-29 13:55:33.0

Tags: Rig, Call Transcript, Earnings, Helmerich & Payne Inc., Workforce Management, Training And Certification, Human Resources, Seeking Alpha

Question-and-Answer Session

Operator

(Operator instructions.) And our first question comes from the side of Waqar Syed of Tristone Capital. Your line is open.

Waqar Syed - Tristone Capital

Yeah, hi. Hans, do you have a figure for the contracted EBITDA for the remainder of fiscal year '09?

Hans Helmerich

Not beyond just. Waqar, what we said about the percentage of our fleets under contract, I mean, we haven't tried to say more than that.

Waqar Syed - Tristone Capital

Okay. How much of your international rigs, how many if you exclude the Venezuelan, how many rigs are under term contract for remainder of fiscal year '09?

Hans Helmerich

Nine are.

Waqar Syed - Tristone Capital

Nine rigs are, okay. And then in 2010?

Hans Helmerich

I think we, I think we drop. I think we got seven.

John Lindsay

I think we had 7.5, eight, yeah.

Waqar Syed - Tristone Capital

7.5 to eight rigs, okay. You've mentioned that you may be moving some employees from the rigs that are stacked to the new builds. Should we be assuming that the startup costs for the new builds are going to come down now?

Hans Helmerich

Well, you'll have less if any training costs are associated with those rigs. So, that's the savings that we expense on the front-end. So, yeah, that would be a positive.

Waqar Syed - Tristone Capital

How much is that? Could you quantify that in terms of, per rig, how much are the training costs?

Hans Helmerich

Waqar, we've got a good sense of what that number is, but it begins to get into competitive issues.

Waqar Syed - Tristone Capital

Sure, okay. And do you have any guidance for G&A and DD&A for the remainder of the year?

Hans Helmerich

Do you have any?

Doug Fears

Waqar, this is Doug. I would just maybe begin with G&A being at least flat, if not slightly downward, but I would just use flat from this quarter.

Waqar Syed - Tristone Capital

Okay. All right, that sounds good. That's all for me. Thank you.

Hans Helmerich

Thank you.

Operator

And our next question comes from the side of Mike Drickamer of Morgan Keegan. Your line is open.

Mike Drickamer - Morgan Keegan & Co.

Hi. Good morning, guys.

Hans Helmerich

Good morning, Mike.

Mike Drickamer - Morgan Keegan & Co.

Hans, can you remind me what do I have to pay to cancel a contract here? Is it the cost of the rig or is it the remaining life of the revenues expected and received under the remaining life of the contract?

 

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