Out Fox The $treet

Summary Helmerich & Payne is positioned to continue stealing market share from competitors struggling to produce profits. The stock is bottoming along with the domestic drilling rig demand. Helmerich & Payne is positioned to lead the rebound with a fleet of modern land drilling rigs and the ability to consolidate the space.    The domestic drilling market remains under pressure, but Helmerich & Payne (NYSE: HP ) is positioned to benefit from a pending rebound. The stock is down roughly 50% from the peak near $115 providing an interesting entry point for new investors around $65. Over the last year, the stock has collapsed similar to the price of oil.   Read the full article at Seeking Alpha.  Disclosure: No positions mentioned. Please the disclaimer page for more details.

With a high debt load, it is understandable that Chesapeake Energy ( NYSE: CHK     ) is cutting back on spending and spinning off some of its assets. Unfortunately, the combination doesn't necessarily portend well for a separated subsidiary that depends on the previous parent for a substantial portion of its revenue. Chesapeake Energy spent the last several years struggling with a superior asset base of leading acreage positions in most of the primary shale areas. The company's stock continues to struggle due to expenses and the high debt load that is now causing it to cut capital spending at a time of low natural gas inventories. Read the full article here . Disclosure: Long CHES. Please review the disclaimer page for more details. 

For investors who only read the earnings headlines, a ton of additional information can usually be gleaned by reading the details of the earnings report and comparing to competitors. For investors interested in the domestic land-drilling market, Helmerich & Payne ( NYSE: HP     ) happens to be one of the better providers of useful numbers. The driller had some encouraging signs on new rig orders and increasing rig revenue per day, but the numbers show more stability than growth. As with Patterson-UTI Energy ( NASDAQ: PTEN     ) and Nabors Industries ( NYSE: NBR     ) , the troubling sign continues to be that customers want the new rigs at the expense of idled rigs. Read the full article here . Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

With the gains in drilling-rig efficiency limiting demand, are the glory days over for Helmerich & Payne ( NYSE: HP     ) ? According to this WSJ article , the company and the CEO are credited with developing the next-generation drilling rigs used to create the U.S. energy boom. With oil above $100, one would expect a driller to trade well. The domestic land-drilling market, however, has faced lower drilling-rig demand due to plunging natural gas prices and more importantly the dramatically improved efficiencies gained in the last couple of years. The stock is sitting close to all-time highs. Now investors must analyze whether future natural gas export demand and possible demand from Mexico can offset a weak domestic climate. Read the full article here . Disclosure: No position mentioned. Please review the disclaimer page for more details. 

Prior to June 5, Helmerich & Payne (NYSE: HP ) was seen as a solidly run contract drilling firm with a small dividend. The company made a surprising announcement that it would dramatically increase the yield making the stock interesting for the yield now. Or maybe it wasn’t that surprising considering the expected influx of cash and a strong balance sheet. The company operates primarily as a contract drilling firm with more » Disclosure: No positions mentioned. Please review the disclaimer page for more details.