## To the Co-owners of Helmerich & P ayne, Inc.: 

When I worked on my first Annual Report twenty-three years ago, that publication was the single most important way we communicated to shareholders. A popular staple back then was my dad’s President’s Letter. He started a tradition of penning a wide-ranging commentary back in the1960s, and after he retir ed, I picked up a similar approach with my first letter in 1990. Over the years, I tackled a range of issues that bear on all U.S. public companies, including common education, double taxation, executiv compensation, and energy policy. I always enjoyed readers’ feedback and par ticularly remember meeting the author of the most famous President’ s Letter, Warren Buffet, who recommended to me that I turn the task back to my predecessor. That’s an offer our Chairman continues to turn down each year, although it still gets a laugh between us. 

Over these same years, the role of the Annual Report has changed significantly. Its importance as a communication tool has given way to more timely webcasts and conference calls, strict disclosures and legal requirements, and the broad use of increasingly popular and accessible websites. Along with a growing number of public companies, we have combined our Annual Repor with our 10-K filing as a cost-effective approach to compliance. 

This letter will change as this document continues to evolve. Before summarizing our operations for 2004, I want to thank our employees for delivering outstanding field per formance during a challenging year. 

