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Helmerich & Payne, Inc.

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Industry leading drilling fleet including its advanced FlexRigs and drill operating expertise give Helmerich & Payne an edge over its peers. The company also boasts of a rock-solid balance sheet which gives it enough financial flexibility to sustain through industry downturn and take advantage of any upturn. The dividend history of the company is also quite impressive which makes it attractive for stable income seeking investors. However, with crude now firmly entrenched below $50 a barrel, upstream companies have cut on their spending. This is translating into lesser work for drillers like HP which is driving down its earnings and revenues. We also need to factor the unfavorable return on equity. These factors form the basis of our cautious stance on the prospects of the stock, which is down more than 40% year-to-date.

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