Helmerich & Payne shares rise after "Buy" call

Shares of Helmerich & Payne Inc. rose Wednesday after Goldman Sachs urged investors to buy shares of the contract oil driller.

The investment bank began covering the Tulsa, Okla. company Tuesday evening with a "Buy" rating.

Goldman also raised its rating on fellow land drillers Nabors Industries Ltd. to "Buy" from "Neutral" and started coverage of Patterson-UTI Energy Inc. with a "Neutral" rating.

Analysts at the bank said they expect drilling will increase meaningfully through the end of next year.

"While we are still in the early stages of a fundamental recovery for the U.S. land market, we believe that we are entering the later stages for the stocks," analyst Daniel Boyd wrote in a research note.

Boyd recommended Helmerich & Payne "for its sustainable competitive advantage and fleet quality," and Nabors "for its fleet quality, diversification, and attractive valuation."

The gain in Helmerich & Payne shares comes one day after the stock briefly touched an all-time high of $66.38. Last week, the company announced plans to acquire privately held TerraVici Drilling Solutions for up to $22 million in cash, plus potential future payments based on earnings.

Helmerich & Payne shares rose 15 cents to $63.62.

Nabors also hit a new high Tuesday, or $42.99, before easing at the close. On Wednesday, shares gained 54 cents, or 1.3 percent, to $41.67.

Patterson shares fell 16 cents to $31.60.

Meanwhile on the New York Mercantile Exchange, light, sweet crude for July delivery fell $2.01 to settle at $122.30 barrel after earlier falling as low as $121.84. It was oil's lowest settlement since May 6.