Core Insights - RPC Inc. reported third-quarter 2025 adjusted earnings of 9 cents per share, exceeding the Zacks Consensus Estimate of 5 cents, with total quarterly revenues reaching $447.1 million, up from $337.7 million year-over-year, and surpassing the Zacks Consensus Estimate of $400 million [1][8] Revenue Performance - The strong quarterly results were primarily driven by higher revenues across most service lines, with the largest gains coming from pressure pumping, followed by coiled tubing, downhole tools, and rental tools [2] Segmental Performance - Operating profit in the Technical Services segment increased to $24.4 million from $16.3 million year-over-year, mainly due to improved performance in pressure pumping and coiled tubing [3] - Operating profit in the Support Services segment decreased to $4.6 million from $5.3 million year-over-year [3] Overall Financials - Total operating profit for the quarter was $20.8 million, up from $19.2 million in the previous year [4] - The average domestic rig count was 540, reflecting a 7.8% decline year-over-year [4] - The average oil price was $65.85 per barrel, down 14% year-over-year, while the average price of natural gas rose to $3.04 per thousand cubic feet, up 44.8% from the same period in 2024 [4] Costs and Expenses - The cost of revenues increased to $334.7 million from $247.5 million in the prior-year period, and selling, general, and administrative expenses rose to $44.6 million from $37.7 million year-over-year [5] Capital Expenditure and Financial Position - RPC's total capital expenditure was $117.8 million, with cash and cash equivalents amounting to $163.5 million as of September 30, maintaining a debt-free balance sheet [6]

Financial Performance - Total revenues for Q3 2025 were $447.1 million, an increase of 32.4% compared to $337.7 million in Q3 2024[118]. - Net income for Q3 2025 was $13.0 million, or $0.06 diluted earnings per share, down from $18.8 million, or $0.09 diluted earnings per share in Q3 2024[119]. - Adjusted EBITDA for Q3 2025 was $72.3 million, with an Adjusted EBITDA margin of 16.2%, compared to $55.2 million and 16.4% in Q3 2024[145]. - Revenues for the nine months ended September 30, 2025, were $1.2 billion, an increase of 11.2% compared to the same period in 2024, driven by $198.6 million from the Pintail acquisition[147]. - Net income for the nine months ended September 30, 2025, was $35.1 million, or $0.16 diluted earnings per share, down from $78.7 million, or $0.37 diluted earnings per share in the prior year[160]. - Adjusted EBITDA was $186.8 million with an Adjusted EBITDA margin of 15.6%, compared to $186.9 million and 17.3% in the same period last year[161]. Segment Performance - The Technical Services segment revenues increased by 34.7% in Q3 2025, primarily due to the acquisition of Pintail[134]. - Technical Services segment revenues increased by 11.8% to $59.6 million in operating income, while Support Services segment revenues rose by 2.5% with operating income of $11.9 million[149]. Costs and Expenses - Cost of revenues increased by 35.2% to $334.7 million in Q3 2025, compared to $247.5 million in Q3 2024, largely due to costs from the Pintail acquisition[135]. - Selling, general and administrative expenses rose to $44.6 million in Q3 2025, up from $37.7 million in Q3 2024, driven by increased employment incentives and costs related to Pintail[136]. - Cost of revenues increased by 14.0% to $896.3 million, primarily due to costs from the Pintail acquisition, while excluding Pintail, costs decreased in line with lower activity levels[150]. - Selling, general and administrative expenses rose to $128.0 million, up from $115.2 million, mainly due to increased employment incentives and costs related to the Pintail acquisition[151]. Cash Flow and Liquidity - Free cash flow for Q3 2025 was $4.1 million, down from $19.1 million in Q3 2024, primarily due to a decrease in cash provided by operating activities[146]. - Cash provided by operating activities decreased to $139.5 million from $255.2 million, primarily due to unfavorable changes in working capital[162]. - Free cash flow decreased to $21.7 million from $75.8 million, attributed to lower cash provided by operating activities[162]. - Cash and cash equivalents decreased by $162.5 thousand to $163.5 million as of September 30, 2025, compared to $326.0 million as of December 31, 2024[170]. - The Company has a $100.0 million revolving credit facility with no outstanding borrowings as of September 30, 2025, and $84.2 million available for use[178]. Capital Expenditures - Capital expenditures for 2025 are expected to be between $170 million and $190 million, with $117.8 million already spent as of September 30, 2025[182]. - The implementation of the One Big, Beautiful Bill Act resulted in a lower tax obligation due to 100% bonus depreciation on capital expenditures[180]. Shareholder Returns - A regular quarterly cash dividend of $0.04 per share was declared, payable on September 10, 2025, to stockholders of record[191]. - The Company has a stock buyback program to repurchase up to 49,578,125 shares, with 12,768,870 shares remaining available for repurchase as of September 30, 2025[187]. - The Company expects to continue paying cash dividends, subject to industry conditions and financial performance[191]. Risks and Compliance - The company is exposed to risks from volatility in oil and natural gas prices, which can significantly impact demand for its services[213]. - The company faces risks related to customer concentration in the energy industry, which can lead to downturns in business due to capital spending dependencies[213]. - The company relies on a limited number of suppliers for certain equipment and materials, which poses a risk to service delivery[213]. - The company is subject to increasing expectations regarding environmental, social, and governance practices from stakeholders[213]. - Potential political unrest in oil-producing regions, including conflicts in Israel and Gaza, may adversely affect drilling activity and demand for services[213]. - The company’s operations are vulnerable to cyber-attacks, which could disrupt digital systems and processes[213]. - The Company is in compliance with the financial covenants of its credit facility[178]. - The company has ongoing sales and use tax audits that could result in unfavorable outcomes, but the impact is currently uncertain[186]. Market Conditions - The average price of oil was 14.0% lower, while the average price of natural gas was 44.8% higher in Q3 2025 compared to the same period in 2024[133]. - The current and projected prices of oil and natural gas are important for U.S. domestic drilling activity, with potential volatility impacting customer completion activities[193]. - The majority of the company's transactions occur in U.S. currency, minimizing the impact of foreign exchange rate fluctuations on its financial results[215]. - Capital expenditures are contingent on current business expectations, and any changes may lead to significant adjustments in spending plans[213]. - The company must navigate competition in the oil and gas industry, particularly in pressure pumping, which could impact profitability[213].

Core Insights - The company reported a 4.2% organic sales decrease in H1, with Q2 showing a significant decline of 11%, which is expected to be the lowest quarter of the year [1] - Sales performance varied by region, with strong growth in the U.S. Cognac division, while China faced depressed sales due to market challenges and unfavorable calendar effects [2] Sales Performance - H1 sales in the Americas grew by 12.8%, with slight growth in Q2, driven by robust performance [3] - Q2 sales decline was attributed to a volume decrease of 4.7% and a price/mix effect decline of 6.2%, primarily due to underperformance in high-end brands and cognac [2]

Financial Data and Key Metrics Changes - Revenues increased by 6% to $447.1 million compared to Q2 2025 [10] - Adjusted EBITDA rose to $72.3 million from $65.6 million, with adjusted EBITDA margins increasing by 60 basis points to 16.2% [11] - Effective tax rate for the third quarter was 42.6%, slightly higher than the previous quarter [11] - Adjusted diluted EPS was $0.09, with adjustments totaling $0.03 related to acquisition-related employment costs [11] - Operating cash flow year to date was $139.5 million, with free cash flow of $21.7 million after CapEx of $117.8 million [12] Business Line Data and Key Metrics Changes - Technical Services, representing 94% of total revenues, increased by 6% [10] - Pressure pumping accounted for 27.9% of total revenues, while wireline and downhole tools each represented 23.5% [10] - Coiled tubing and cementing accounted for 9.5% and 5.4% of revenues, respectively [10] - Revenue from downhole tools increased by 5% sequentially, with notable strength in the Rocky Mountain and Southeast regions [3] Market Data and Key Metrics Changes - The Permian completion market remains challenged, but there was increased gun usage benefiting from customer completion accelerations [8] - RPC Inc.'s pressure pumping business saw improved activity during the third quarter, despite plans to lay down a fleet in October [8] Company Strategy and Development Direction - The company is focusing on less capital-intensive service lines and strategically growing through acquisitions [9] - Management is bracing for potential slowdowns in customer activity due to holiday season impacts [17][18] - The company aims to leverage its diversified product offerings and geographic exposure to better position itself when market fundamentals improve [14] Management's Comments on Operating Environment and Future Outlook - Current oil prices and market uncertainty present near-term risks to the operating environment [14] - Management is prepared to react to potential slowdowns and is focusing on cost management and capital allocation [14] - The company is optimistic about the fourth quarter but acknowledges the unpredictability of customer activity [17][18] Other Important Information - Full year 2025 capital spending is expected to be between $170 million to $190 million, primarily for maintenance and opportunistic asset purchases [12] - The company plans to liquidate its terminated Supplemental Executive Retirement Plan, expecting a net cash distribution of approximately $8 million [13] Q&A Session Summary Question: Fourth quarter outlook and potential activity levels - Management is comfortable with current fourth quarter conditions but is prepared for possible customer slowdowns during the holidays [17][18] Question: Pivoting away from pressure pumping - Management is focusing on less capital-intensive service lines and is not aggressively investing in pressure pumping, although it remains a part of their offerings [19] Question: Details on the A10 downhole motor - The A10 downhole motor is differentiated by its effectiveness with longer laterals, improving performance and reliability, which benefits both the company and its customers [20]

Core Insights - RPC reported quarterly earnings of $0.09 per share, exceeding the Zacks Consensus Estimate of $0.05 per share, with an earnings surprise of +80.00% [1] - The company generated revenues of $447.1 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 11.78% and showing a year-over-year increase from $337.65 million [2] - RPC has outperformed consensus revenue estimates in all four quarters over the past year [2] Earnings Performance - RPC's earnings for the previous year were also $0.09 per share, indicating stability in earnings despite market fluctuations [1] - The company had a mixed trend in estimate revisions prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market [6] Future Outlook - Current consensus EPS estimate for the upcoming quarter is $0.02 on revenues of $372 million, while for the current fiscal year, it is $0.21 on revenues of $1.53 billion [7] - The sustainability of RPC's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] Industry Context - The Oil and Gas - Field Services industry, to which RPC belongs, is currently ranked in the bottom 26% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of RPC's stock may be influenced by the overall outlook for the industry, as historical data shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Financial Performance - Revenues increased 6% sequentially to $447.1 million, driven by a 14% increase in pressure pumping services[6] - Net income was $13.0 million, up 28% sequentially, with diluted EPS at $0.06, resulting in a net income margin of 2.9%[6] - Adjusted EBITDA was $72.3 million, up 10% sequentially, with an adjusted EBITDA margin of 16.2%[6] - Revenues for Q3 2025 reached $447,103 thousand, a 6.3% increase from $420,809 thousand in Q2 2025 and a 32.4% increase from $337,652 thousand in Q3 2024[25] - Operating income for Q3 2025 was $20,800 thousand, up 33.5% from $15,536 thousand in Q2 2025 but down 8.3% from $19,204 thousand in Q3 2024[25] - Net income for Q3 2025 was $12,963 thousand, representing a 27.7% increase from $10,148 thousand in Q2 2025 but a 30.9% decrease from $18,796 thousand in Q3 2024[25] - Adjusted net income for Q3 2025 was $18,379 thousand, compared to $17,504 thousand in Q2 2025 and $18,796 thousand in Q3 2024[35] - Basic earnings per share for Q3 2025 was $0.06, compared to $0.05 in Q2 2025 and $0.09 in Q3 2024[25] - Net income for Q3 2025 was $12,963,000, an increase from $10,148,000 in Q2 2025, and $18,796,000 in Q3 2024[36] - Adjusted EBITDA for Q3 2025 reached $72,333,000, up from $65,589,000 in Q2 2025, and consistent with $55,243,000 in Q3 2024[36] - Revenues for Q3 2025 were $447,103,000, compared to $420,809,000 in Q2 2025, and $337,652,000 in Q3 2024, reflecting a year-over-year growth of 32.5%[36] - Net income margin improved to 2.90% in Q3 2025 from 2.41% in Q2 2025, while adjusted net income margin remained stable at 4.11%[36] Expenses and Liabilities - Selling, general and administrative expenses rose to $44.6 million, up from $40.8 million, representing 10.0% of revenues[9] - Total liabilities rose to $396,403 thousand as of September 30, 2025, compared to $308,198 thousand at the end of 2024, marking a 28.6% increase[26] - Acquisition-related employment costs totaled approximately $6.5 million during Q3, with remaining costs expected to be recognized over the next 10 quarters[10] - The company incurred acquisition-related employment costs of $6,467 thousand in Q3 2025, consistent with $6,554 thousand in Q2 2025[35] Cash Flow and Capital Expenditures - Cash and cash equivalents were $163.5 million at the end of Q3, with no outstanding borrowings under the $100 million revolving credit facility[14] - Cash and cash equivalents decreased to $163,462 thousand from $325,975 thousand at the end of 2024, reflecting a decrease of 50.1%[28] - The company reported capital expenditures of $117,780 thousand for the nine months ended September 30, 2025, down from $179,460 thousand in the same period of 2024[28] - Capital expenditures for the nine months ended September 30, 2025, were $117,780,000, down from $179,460,000 in 2024[37] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $139,468,000, compared to $255,215,000 in 2024[37] Market Conditions and Outlook - The average U.S. rig count decreased by 5.4% sequentially to 540 rigs, while oil prices increased slightly to $65.85 per barrel[5] - Cudd Pressure Control's coiled tubing business saw a 19% revenue increase, supported by a new large diameter unit deployment[5] - The company anticipates additional headwinds in Q4 due to oil prices dipping below $60 per barrel and expected holiday slowdowns[5] Dividends - The Board of Directors declared a regular quarterly cash dividend of $0.04 per share, payable on December 10, 2025[15]

Core Insights - RPC, Inc. reported a sequential revenue increase of 6% to $447.1 million for Q3 2025, driven by improvements in service lines such as pressure pumping and downhole tools [5][10][12] - The company experienced a net income of $13.0 million, reflecting a 28% sequential increase, with diluted EPS rising to $0.06 [10][11] - Despite positive trends, the company anticipates challenges in Q4 due to declining oil prices and potential customer budget exhaustion [4][10] Financial Performance - Revenues for Q3 2025 were $447.1 million, up 6% from Q2 2025, with pressure pumping revenues increasing by 14% [5][10] - Adjusted EBITDA for the quarter was $72.3 million, a 10% increase sequentially, with an adjusted EBITDA margin of 16.2% [10][12] - The cost of revenues increased by 5% to $334.7 million, primarily due to higher activity levels [6][10] Operational Highlights - The U.S. rig count averaged 540 in Q3 2025, down 5.4% from Q2 2025 and 7.8% from Q3 2024 [4] - Oil prices averaged $65.85 per barrel in Q3 2025, a slight increase of 1.7% from the previous quarter but down 14% year-over-year [4] - The company noted strong demand for downhole tools and coiled tubing services, with respective revenue increases of 5% and 19% [4][5] Cash Flow and Capital Allocation - Cash and cash equivalents at the end of Q3 2025 were $163.5 million, with no outstanding borrowings under the revolving credit facility [13] - Year-to-date free cash flow was reported at $21.7 million, with net cash provided by operating activities totaling $139.5 million [13][31] - The company declared a quarterly cash dividend of $0.04 per share, payable on December 10, 2025 [14]

Company Overview - RPC, Inc. reported trailing twelve-month (TTM) revenue of $1.43 billion and net income of $53.74 million, with a dividend yield of 3.38% as of October 6, 2025 [4][8] - The company's stock price was $4.79, reflecting a 32.9% decline over the past year, underperforming the S&P 500 by 46.1 percentage points [3][4] Investment Activity - Carolina Wealth Advisors, LLC disclosed the purchase of 1,261,478 shares of RPC, Inc. in Q3 2025 for an estimated $5.95 million, increasing its total holdings to 1,277,544 shares valued at approximately $6.08 million as of September 30, 2025 [1][2] - This acquisition represented 2.6% of Carolina's reportable U.S. equity assets under management (AUM) as of the same date [3] Financial Performance - RPC's revenue increased by 26% in the second quarter compared to the first quarter, primarily due to the acquisition of Pintail Completions; however, excluding Pintail's contribution, revenue decreased by 3% [8] - The decline in oil prices by 10% and natural gas prices by 22.7% during the same period likely impacted RPC's adjusted revenues [8] Service Offerings - RPC provides specialized oilfield services and equipment, including pressure pumping, fracturing, cementing, coiled tubing, wireline, and rental tools for drilling and well completion [5][6] - The company generates revenue mainly through service contracts and equipment rentals for oil and gas exploration, production, and maintenance activities [5][6]

Core Viewpoint - RPC, Inc. is set to release its financial results for the third quarter of 2025 on October 30, 2025, before market opening, followed by a conference call to discuss the results [1]. Group 1: Financial Results Announcement - RPC, Inc. will announce its third-quarter financial results for the period ending September 30, 2025, on October 30, 2025 [1]. - A conference call will be held on the same day at 9:00 a.m. Eastern Time to review the financial and operating results [1]. Group 2: Conference Call Participation - Individuals can participate in the conference call by dialing toll-free (888) 440-5966 or +1 (646) 960-0125 for international callers, using conference ID number 9842359 [2]. - The call will also be broadcast and archived for 90 days on the company's investor website for those unable to join by telephone [2]. Group 3: Company Overview - RPC provides a wide range of specialized oilfield services and equipment primarily to independent and major oilfield companies involved in oil and gas exploration, production, and development across the United States and selected international markets [3].

Oil Market Overview - Oil prices have stabilized, with Brent crude at $67.73 per barrel and U.S. WTI at $63.66 per barrel, marking the first weekly gains in three weeks [1] - The stabilization was driven by a larger-than-expected drawdown in U.S. crude inventories, indicating strong demand [1] - Geopolitical risks, particularly related to the stalled Russia-Ukraine peace talks and potential new sanctions on Russian oil, continue to inject uncertainty into the market [1][2] Economic Influences - Weak economic data from Germany has raised concerns about global consumption, impacting oil demand [2] - Anticipation of signals from the Federal Reserve's Jackson Hole conference regarding potential interest rate cuts could stimulate economic growth and boost oil demand [2] Investment Opportunities - Investors are encouraged to look for undervalued energy stocks that can capitalize on market volatility while limiting downside risk [3] - Identified stocks include Ring Energy (REI), RPC, Inc. (RES), and Kosmos Energy (KOS), all trading under $5 and holding a Value Score of A [3][10] Company Profiles Ring Energy (REI) - An independent exploration and production company focused on oil and natural gas in the Permian Basin of Texas, with a high level of operational control [4] - Utilizes modern drilling techniques to create long-life wells with low breakeven costs, emphasizing predictable growth and strong cash flow [5] - Currently trading at less than $1 per share, with a 50% increase in the Zacks Consensus Estimate for 2025 earnings over the past 60 days [6] RPC, Inc. (RES) - A U.S.-based oilfield services provider with a diverse portfolio serving exploration and production companies [7] - Known for a debt-free balance sheet and consistent returns of excess free cash to shareholders, with a recent acquisition enhancing its service mix [8] - Shares trade for less than $5, with a projected 7.8% growth in 2025 revenues according to the Zacks Consensus Estimate [9] Kosmos Energy (KOS) - A deepwater exploration and production company with a balanced portfolio across proven basins, including offshore Ghana and the U.S. Gulf of Mexico [11] - Focuses on disciplined growth and sustainable cash generation, with recent milestones supporting future free cash flow [12] - Currently priced at $1.84 per share, with a 26% increase in the Zacks Consensus Estimate for 2025 earnings over the past 60 days [13]