KeyBanc Starts Helmerich & Payne (HP) at Buy

KeyBanc initiated coverage on Helmerich & Payne (NYSE: HP) with a Buy rating and a price target of $120.00.

Analyst Robin Shoemaker said, "In the current tight market for high-spec rigs, H&P is benefitting both from increases in spot market pricing and from higher term contract dayrates on new build FlexRigs. H&P is also seeing a stronger set of opportunities for FlexRigs in the international arena. The Company has 23 active rigs in international markets today, of which 15 are AC drives. Latin American countries account for 17 of the 23 rigs. The Latin America working rig count is set to increase by 10 rigs over the next six months as a recently signed contract with YPF (the national oil company of Argentina) takes effect. H&P will move 10 FlexRigs from the United States to Argentina to satisfy the requirements of its contract with YPF. Each of the FlexRigs will work under a five-year term contract and will carry out drilling operations in the huge Vaca Muerta shale located in Argentina’s Neuquen basin. We believe that H&P has other significant opportunities to deploy AC drive FlexRigs outside North America as new shale plays are discovered and developed."

For an analyst ratings summary and ratings history on Helmerich & Payne click here. For more ratings news on Helmerich & Payne click here.

Shares of Helmerich & Payne closed at $101.62 yesterday.

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