Filing Flows › Helmerich & Payne (HP) › Takeover & LBO
Is Helmerich & Payne (HP) a takeover target?
A leveraged buyout at today's price plus 30% ($55.89 a share) would return about 12% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $45.15 a share (5% against today's $42.99). Historically 2.9% of companies with its figures were bought within a year (0.59× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $55.89 | today's $42.99 plus 30% |
| × shares | 100.0 million | |
| = Equity value | $5.6B | |
| + Debt refinanced | $1.9B | |
| − Cash | $231M | |
| + Other claims | $96.3M | preferred stock, minority interests |
| = Enterprise value | $7.3B | 8.9× EBITDA of $822M |
| Fees | $146M | 2% of the price |
| New debt | $4.5B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $2.9B | 39% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $4.3B | $888M | $346M | $225M | $4.3B |
| Year 2 | $4.6B | $948M | $329M | $285M | $4.0B |
| Year 3 | $4.9B | $1.0B | $307M | $346M | $3.7B |
| Year 4 | $5.1B | $1.0B | $280M | $406M | $3.3B |
| Year 5 | $5.2B | $1.1B | $249M | $464M | $2.8B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 7.3× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $7.9B | |
| − Debt left | $2.8B | |
| = Buyer's equity | $5.1B | |
| Money multiple | 1.73× | on $2.9B put in |
| Buyer's yearly return (IRR) | 11.5% |
Price against return
What the buyer makes at other premiums over today's $42.99; the IRR reaches 20% at $45.15 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $47.29 | 18.3% |
| 20% | $51.59 | 15.1% |
| 30% | $55.89 | 11.5% |
| 40% | $60.19 | 8.5% |
| 50% | $64.48 | 5.9% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $4.0B | |
| EBITDA, last 12 months | $822M | 20.6% of revenue |
| Depreciation and amortization | $732M | |
| Capital spending | $264M | |
| Debt | $1.9B | |
| Cash | $231M | |
| Share price | $42.99 | on Oct 30, 2026 |
Fixed rules, the same as the interactive view's starting point: the shares are bought at today's price plus 30%, the company's debt is refinanced and fees take 2%. New debt is the least of 5.5× EBITDA, 65% of the price and the amount whose interest EBITDA covers 2 times, at 7.65% a year (SOFR 3.89% plus the high-yield B spread 3.26% plus 0.5%, rates of Oct 15, 2026). Revenue grows 8.0% in the first year — the company's own rate, held between −3% and +8% — fading to 3% by year 5; the EBITDA margin, depreciation and capital spending stay at today's share of revenue; working capital takes 10% of each year's added revenue; tax is 21% of profit after interest. Every dollar of free cash flow repays debt. After 5 years the buyer sells at today's multiple of EBITDA.
What a takeover could cost
Takeovers on record paid a median premium of 32.5% over the share price before the deal (the middle half 20% to 51.8%), according to the 1,437 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Helmerich & Payne would cost about $56.96 a share, $5.7B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $51.59 | $5.2B |
| Median | 32.5% | $56.96 | $5.7B |
| High end (a quarter paid more) | 51.8% | $65.26 | $6.5B |
The odds, from history
Historically 2.9% of companies with its figures were bought within a year (0.59× the average). Its figures put it in decile 2 of 10 (10 = the most likely to be bought). The odds come from a model of every merger proxy, tender-offer response and going-private statement filed on EDGAR since 2011, set against each company's size, margins, debt, cash flow and growth the year before.
Helmerich & Payne's latest quarter
Helmerich & Payne, Q3 FY26: revenue $1.0B (-0.6% year over year), operating margin 18.2%, net earnings $75.7M, operating cash flow $154M. The chart follows the revenue to costs, profit and cash.
Questions
Is Helmerich & Payne being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Helmerich & Payne?
A leveraged buyout at today's price plus 30% ($55.89 a share) would return about 12% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $45.15 a share (5% against today's $42.99).
What would a takeover of Helmerich & Payne cost?
Takeovers on record paid a median premium of 32.5% over the share price before the deal (the middle half 20% to 51.8%), according to the 1,437 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Helmerich & Payne would cost about $56.96 a share, $5.7B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.