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COMPARISON OF THE YEARS ENDED SEPTEMBER 30, 2003 AND 2002 

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Operating statistics for per day revenue, expense and mar gin do not include reimbursements of “out-of-pocket” expenses. 

The Company’s operating profit in its U.S. land rig operations fell by 39.1 percent from 2002 to 2003, despite the fact that commodity prices were very strong during 2003. Historically high crude oil and natural gas prices, and an increasing industry rig count in the United States were all strong signals for an up cycle that could benefit oil service and contract drilling companies. However, in spite of increasing rig activity, average dayrates and margins per rig day fell during 2003. Even with higher industry rig counts, the additional capacity added by companies like H elmerich & Payne, along with intense rig-on-rig price competition, delayed improvements in dayrates and margins. More par ticularly with Helmerich & Payne, 2002 dayrates were aided by the r emaining term left on some of the contracts for work relating to F lexRig2s that were completed and commenced work during 2001. Those relatively high dayrates and 

