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Helmerich & Payne (HP) Inks Rig Enablement Framework With ADNOC

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Helmerich & Payne, Inc. (HP - Free Report) recently announced that the Rig Enablement Framework Agreement with ADNOC Drilling Company is finalized.

The Framework Agreement will allow HP to extend its drilling and operating experience outside the United States. It will help ADNOC Drilling improve the performance of its land rigs and support the company's aggressive development and expansion objectives. Further, the agreement, which focuses on enhancing drilling efficiencies and achieving operational savings, expands on the Asset Purchase Agreement and IPO Cornerstone Agreement announced on Sep 8, 2021, and strengthens ADNOC Drilling's strategic collaboration with HP.

HP’s $100-million cornerstone investment in ADNOC Drilling's IPO aided its worldwide expansion plan by allowing it to commit extra cash outside the United States. This demonstrates HP's faith in what the two companies can accomplish together.

Helmerich & Payne, a global leader in rig technologies and drilling solutions, intends to profit from ADNOC Drilling's commitment to a strong dividend policy as indicated in the ADNOC Drilling Prospectus.

With the signing of the Rig Enablement Framework Agreement, HP will be able to further strengthen their strategic partnership by combining their strengths to offer a superior operational performance.

Earlier in September, Helmerich & Payne announced a strategic collaboration with ADNOC and its subsidiary ADNOC Drilling Company wherein ADNOC Drilling will purchase eight FlexRig® land rigs from Helmerich & Payne for $86.5 million.

The above deal will help Helmerich & Payne achieve its goal of deploying capital worldwide, especially to the MENA (Middle East and North Africa) area, by boosting its entry into the lucrative and rapidly-rising Abu Dhabi market as a vital platform for further regional expansion.

Zacks Rank & Key Picks

Helmerich & Payne currently has a Zacks Rank #3 (Hold). Investors interested in the energy sector might look at the following stocks with a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.

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In the past year, shares of PDC Energy have gained 169% compared with the industry's growth of 108.6%. PDCE's earnings for 2021 are expected to surge 273.4% from the prior-year reported figure. In the past 60 days, the Zacks Consensus Estimate for PDC Energy's 2021 earnings has been raised 26.8%. Earnings of PDCE beat the Zacks Consensus Estimate in all the last four quarters, the average being 51.06%.

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SUN's earnings for 2021 are expected to surge 743.4% year over year. Sunoco currently has a Zacks Style Score of A for both Value and Growth. For 2021, SUN expects fuel volumes of 7.25-7.75 billion gallons, indicating a rise from the 2020 reported level of 7.09 billion gallons.