Before getting into our traditional discussion topics, I wanted to first mention that ADIPEC, which is a global energy conference in Abu Dhabi, in this week there was over 150,000 attendees, 33 energy ministers and representatives from over 50 energy companies.
The strategic alliance we signed with ADNOC is a great opportunity to deliver rig technology through the sale of eight high spec H&P FlexRigs as well as to make a significant $100 million investment in their initial public offering.
ADNOC has a 2030 oil production target of 5 million barrels per day and a goal to achieve natural gas independence.
So we are expecting activity to improve in these markets in the coming quarters.
Shifting to North America Solutions, it is hard to believe that a year ago H&P had only 80 active rig drilling [Phonetic].
Today we have 141 active FlexRigs.
Given that, we were pleased with the 5% incremental rig count increase experienced during the quarter, and are even more optimistic as we look ahead to the fourth calendar quarter where we expect to see our rig count increase sequentially and at a higher pace as E&Ps reset their annual capital budgets.
As mentioned, our US land rig count stands at 141 rigs today, up from 127 at September 30, our fiscal year-end.
And we expect to add roughly another 10 to 15 rigs by year end of calendar 2021.
To summarize North America Solutions, during calendar fourth quarter, we expect to add 25 to 30 rigs.
Today, approximately 35% of our FlexRigs are on performance contracts, and several customers are experiencing the powerful synergies, a combination of performance contracts and digital technology can deliver.
The Company generated quarterly revenues of $344 million versus $332 million in the previous quarter.
Correspondingly, total direct operating costs incurred were $269 million for the fourth quarter versus $257 million for the previous quarter.
Consideration received for this sale was $86.5 million and any gains above book values together with required investments to prepare and deliver the rigs will be recognized as each rig is delivered.
Second, H&P made a $100 million investment in ADNOC Drilling in conjunction with its initial public offering in early October.
General and administrative expenses totaled $52 million for the fourth quarter, higher than our previous guidance due primarily to professional services fees associated with the ADNOC transactions and our ongoing cost management efforts.
On September 27, we issued $550 million in unsecured senior note bonds to refinance our 487 million outstanding bonds that were due in May 2025.
Our new issuance came at a coupon of 2.9% and a 10-year tenure maturing in September 2031.
The additional debt of about $63 million funded the make-whole provision and accrued interest for the call of the existing bonds as well as an associated transaction cost.
Our Q4 effective tax rate was approximately 24%, in line with our previous guidance.
To summarize, fourth quarter's results, H&P incurred a loss of $0.74 per diluted share versus a loss of $0.52 in the previous quarter.
As of these select items, adjusted diluted loss per share was $0.62 in the fourth fiscal quarter compared with an adjusted $0.57 loss during the third fiscal quarter.
For fiscal 2021 as a whole, we incurred a loss of $3.04 per diluted share.
Collectively, these select items constituted a loss of $0.44 per diluted share.
Absent these items, fiscal 2021 adjusted losses were $2.60 per diluted share.
Capital expenditures for fiscal 2021 totaled $82 million below our previous guidance due to the timing of supply chain spending that crossed in the fiscal 2022.
Relative to our original guidance range of $85 million to $105 million, the variance was primarily driven by a delay in the start of planned IT infrastructure spending that we have previously discussed.
H&P generated $136 million in operating cash flow during fiscal 2021.
Considering the pro forma impact of our recent debt refinancing, the collective cash and short-term investments balances decreased minimally by $7 million year-over-year due in part to working capital improvements achieved during fiscal 2021 as well as asset sales.
We averaged 124 contracted rigs during the fourth quarter, up from an average of 119 rigs in fiscal Q3.
We exited the fourth fiscal quarter with 127 contracted rigs.
Revenues were sequentially higher by $12 million due to the aforementioned activity increase.
North America Solutions operating expenses increased $18 million sequentially in the fourth quarter primarily due to the addition of six rigs as well as a higher material and supplies expense.
The onetime reactivation expenses associated with all of those rigs was $6.6 million in fiscal Q4.
As of today's call, we have 141 rigs contracted, and we expect to end our first fiscal quarter with between 152 and 157 working rigs with current line of sight for a few additional rigs turning to the right in early January.
In the North America Solutions segment, we expect gross margins to range between $75 million to $85 million inclusive of the effect of about $15 million in reactivation costs.
As John mentioned, we are expecting to achieve higher pricing in light of higher demand in tight, ready-to-work, super-spec supply.
Further, our contracts are structured to pass through labor price increases over a 5% threshold.
Therefore, significant labor increases are margin neutral due to contractual protections.
These business lines were largely margin neutral to H&P having collected revenues in the fourth quarter and full fiscal year of 2021 of $10 million and $34 million respectively.
To conclude comments on the North America segment, our current revenue backlog from our North America Solutions fleet is roughly $430 million.
Offshore generated a gross margin of $8 million during this quarter, which was within our guided range.
As we look to the first quarter of fiscal 2022 for offshore, we expect that the segment will generate between $6 million to $8 million of operating gross margin.
As we increased our rig count, capital expenditures for the full fiscal 2022 year are expected to range between $250 million to $270 million.
First, maintenance capex to support our active rig fleet will be approximately 50% of the total FY '22 capex.
But now we have reached the end of those inventories and we are needing to recommence a regular cadence of component equipment overhauls and drill pipe purchases.
This, coupled with a sharp activity increase we are experiencing is driving our fiscal 2022 maintenance capex back into our historical range of between $750,000 to $1 million per active rig per annum in the North America Solutions segment.
Second, skidding to walking capability conversions will approximate 35% of the fiscal 2022 capex.
For customers that need walking rigs, we will invest to convert certain rigs from skidding to walking pad capability and exchange for a term contract that will enable the new investment, which we currently estimate is $6.5 million to $7.5 million per conversion.
Third, corporate capital investments will be about 15% of fiscal 2020 capex.
As part of the ADNOC sale transaction mentioned earlier, we will deliver the eight rigs to ADNOC throughout the year of 2022 with sale proceeds of $86.5 million received in September 2021 and are included in accrued liabilities on our balance sheet.
In addition to the capital expenditures just described above, we will spend approximately $25 million in cash to prepare and deliver the rigs to ADNOC.
Depreciation for fiscal 2022 is expected to be approximately $405 million.
Our general and administrative expenses for the full 2022-year expected to be approximately $170 million, which is roughly consistent with the year just completed.
Specifically, we expect $45 million to $85 million in Q1 with the remainder spread proportionately over the final three quarters.
We anticipate R&D expenditures to be approximately $25 million in fiscal '22.
We are expecting an effective income tax rate range of 18% to 24% for fiscal 2022.
In addition to the US statutory rate of 21%, incremental state and foreign income taxes also impact our provision.
Additionally, we are expecting cash tax in the range of $5 million to $20 million.
Helmerich & Payne had cash and short-term investments of approximately $1.1 billion at September 30, 2021.
When considering the aforementioned 2025 bond repayment and make-whole premium that occurred in October, the pro forma cash and short-term equivalents of September 30, 2021 were $570 million, sequentially compared to $558 million at June 30, 2021.
Including availability under our revolving credit facility, but excluding the $546 million, 2025 bond extinguishment amount, our liquidity was approximately $1.3 billion commensurate to the prior quarter.
Our debt to capital at quarter-end was temporarily at 26% given the debt overlap at the September 30 balance sheet date, accounting for the repayment of the 25 bonds.
However, pro forma debt to capital are just down to 16%.
We do expect to end the fiscal year with between $475 million to $525 million of cash on hand and $25 million to $75 million of net debt.

Summary:
So we are expecting activity to improve in these markets in the coming quarters.
Today we have 141 active FlexRigs.
As mentioned, our US land rig count stands at 141 rigs today, up from 127 at September 30, our fiscal year-end.
The Company generated quarterly revenues of $344 million versus $332 million in the previous quarter.
To summarize, fourth quarter's results, H&P incurred a loss of $0.74 per diluted share versus a loss of $0.52 in the previous quarter.
As of today's call, we have 141 rigs contracted, and we expect to end our first fiscal quarter with between 152 and 157 working rigs with current line of sight for a few additional rigs turning to the right in early January.
As John mentioned, we are expecting to achieve higher pricing in light of higher demand in tight, ready-to-work, super-spec supply.
Therefore, significant labor increases are margin neutral due to contractual protections.
But now we have reached the end of those inventories and we are needing to recommence a regular cadence of component equipment overhauls and drill pipe purchases.