Driller Helmerich Rig Prices Down 10%

U.S. onshore drilling contractor Helmerich & Payne on Wednesday said rates for its high-tech rigs have tumbled 10 percent from the previous quarter and more softness is expected due to falling crude oil prices.

"Drilling activity and spot dayrate pricing are now expected to significantly decline in the U.S.," the company said in a presentation filed with the U.S. Securities and Exchange Commission.

Crude oil prices have skidded to the lowest level in more than 5 years, as global demand weakens and supplies, especially from shale basins in North America, grow. On Wednesday, crude oil futures rose 23 cents to $48.16 per barrel.

Helmerich & Payne, based in Tulsa, Oklahoma, said it expects spot pricing to continue to soften during the next 30 days, according to the presentation.

Since December 11, the idle and available number of its high-tech FlexRigs has risen to 26 from 15. The company expects to see another 40 to 50 FlexRigs become idle. Currently, 286 remain active, the company said.

Shares of Helmerich, a company analysts say is best positioned to weather the crude drop, fell 5 percent to $60.35 in morning New York Stock Exchange trading.

Reporting by Anna Driver