Operating and Financial Highlights for the Quarter Ended September 30, 2025

• The Company realized a consolidated net loss of $(57) million, or $(0.58) per share, which includes the impact of non-recurring charges of $56 million. Adjusted for this and other non-recurring one-time items, adjusted net loss(1) was $(1) million, or $(0.01) per share.
• The Company has received notifications for seven rigs to resume operations in Saudi Arabia during the first half of 2026. With these rig resumptions, the total operating rig count in country will increase to 24 total rigs by the middle of 2026.
• North America Solutions (NAS) segment reported operating income of $118 million during the quarter compared to $158 million during the prior quarter. NAS realized direct margins(2) of $242 million during the quarter, yielding an associated margin(1) per day of $18,620 and profitability continuing to lead all North American land drillers.
• International Solutions segment realized an operating loss of $(75) million during the quarter, an improvement from an operating loss of $(167) million in the prior quarter which included a one-time goodwill impairment of $(128) million. International Solutions again exceeded guidance midpoint expectations with direct margins(2) of approximately $30 million.
• The Company realized consolidated adjusted EBITDA(3) of $225 million.
• The Company has repaid $210 million on its existing $400 million term loan as of the end of October, up from prior expectations of $200 million by the end of calendar year 2025. The Company now expects to repay the entire term loan by the end of the third fiscal quarter of 2026.
• Approximately $25 million returned to shareholders as part of the Company’s ongoing dividend program.

Select Operating and Financial Guidance for Fiscal Year 2026

• The Company expects gross capital expenditures of between $280 million and $320 million during fiscal 2026. Key highlights of 2026’s capital program include:
  • Investments related to NAS operations of between $40 million and $60 million, all of which is supported by customer demand and provides necessary upgrades for the Company to maintain its industry leading technical capabilities.
  • Maintenance and reactivation-related capital across the Company’s global fleet of operating drilling rigs of approximately between $230 million and $250 million, which includes all capital associated with the newly announced reactivation of rigs in Saudi Arabia.
  • The balance of all capital spending relates to corporate and other items. Based on customer demand, the Company’s capital spending will be weighted to the first half of the fiscal year.
  • Ongoing asset sales that include reimbursements for lost and damaged tubulars and sales of other used drilling equipment offset a portion of the gross capital expenditures, and are expected to total approximately $40 million in fiscal year 2026.

• Based on current market dynamics, the Company is providing the following operating guidance for fiscal 2026:
  • Average contracted rig count of 132 to 148 in NAS.
  • Average operating rig count of 58 to 68 for International Solutions.
  • Total Offshore direct margins of $100 million to $115 million, with average management contracts and contracted platform rigs to be approximately 30 to 35.
  • Annual cost guidance, highlighted by reduced General and Administrative expenses and a significant sequential annual decline in cash taxes, can be found below.

Management Commentary

“Fiscal 2025 was a historic year for H&P, as we grew our global drilling footprint to over 200 operating rigs, surpassed over $1 billion of direct margins in our North American Solutions business, welcomed the talented team from KCA Deutag, and established new relationships with a diverse set of global customers,” commented CEO John Lindsay.

“In NAS, our strong customer partnerships and disciplined focus on sustainable economic returns continue to deliver market-leading results. Despite a decline in the industry’s overall rig count, NAS achieved another year of exceptional results, underscoring the effectiveness of our operations and sales teams to deliver win/win solutions with customers. Assuming current commodity prices, we continue to expect stable activity trends in the Lower 48 throughout 2026 and remain committed to financial discipline while continuing to deliver mutually beneficial outcomes with our customers.”

“For our International Solutions segment, fiscal 2025 was particularly meaningful. We started operations for our eight FlexRigs in Saudi Arabia, completed the acquisition of KCA Deutag, and continued to grow our global presence, with operations now spanning six continents. With the right assets, people, customer relationships, and operating scale, we are well-positioned to capitalize on international opportunities,” Lindsay concluded. As evidenced by our recent rig reactivations in Saudi Arabia and our numerous conversations with multiple national oil companies, international oil companies, and independents throughout the region, we’re confident our proven drilling solutions and technologies can deliver significant value to international clients.

“In our Offshore Solutions segment, the inclusion of the legacy KCAD operation added significant scale during fiscal 2025, and we realized record margins of nearly $35 million during the fourth quarter as we enjoyed the full benefit of increased rig utilization. We are optimistic about Offshore Solutions going forward, and believe there are numerous opportunities to expand our footprint in this capital-efficient business.”

Senior Vice President and CFO Kevin Vann commented, “As we enter fiscal year 2026, our planned capital expenditures represent a meaningful reduction from H&P’s fiscal year 2025 spend. We remain focused on generating strong free cash flow and accelerating debt reduction, as demonstrated by repayment of $210 million on the term loan through October, which was well ahead of schedule. We now expect to fully repay all $400 million by the end of the third fiscal quarter of 2026.

“We have made solid progress in streaming our cost structure and have a clear line of sight on further improvements,” Vann said. Our fiscal year 2026 General and Administrative expense guidance represents a decrease of over $50 million relative to proforma annualized 2025, and we expect to realize additional savings which will accrue directly to operating margins in our core businesses.”

Lindsay concluded, “While 2025 brought many achievements, I’m even more excited about the prospects and opportunities ahead. As we enter 2026, our industry-leading technology, performance-driven innovations, and expanding global scale position us to deliver even greater results. We are optimistic about the sector’s long-term prospects and believe our global scale will allow our shareholders to benefit for decades to come. With a talented and dedicated workforce, an unwavering focus on safety, and a customer-centered approach, I am confident H&P is poised for continued success and long-term value creation for our shareholders.”

Operating Segment Results for the Fourth Quarter of Fiscal Year 2025

North America Solutions: Realized operating income of $118 million, compared to $158 million during the previous quarter. Direct margin(2) slightly exceeded the midpoint of guidance, totaling approximately $242 million compared to approximately $266 million during the previous quarter. On a per day basis, direct margin was approximately $18,620 with an average of 141 rigs running. Innovations such as our performance contracts continue to help NAS to deliver peer leading margins. During the quarter approximately 50% of the NAS active rigs utilized performance contracts.

International Solutions: This segment had operating loss of $(75) million, compared to a loss of approximately $(167) million during the previous quarter which included a one-time goodwill impairment of $(128) million. Direct margin(2) again exceeded the midpoint of guidance, totaling approximately $30 million compared to approximately $34 million during the previous quarter.

Offshore Solutions: Contributed operating income of approximately $20 million, compared to approximately $9 million during the previous quarter, representing an increase of $11 million. The increase in operating income was primarily attributable to increased rig utilization. Direct margin(2) exceeded the guidance range, realizing record margins of approximately $35 million compared to approximately $23 million during the previous quarter.