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Core Insights - RPC Inc. reported second-quarter 2025 adjusted earnings of 8 cents per share, missing the Zacks Consensus Estimate of 9 cents, and down from 15 cents in the previous year [1][8] - Total quarterly revenues increased to $420.8 million from $364.2 million year-over-year, surpassing the Zacks Consensus Estimate of $407 million [1][8] - The decline in earnings was primarily attributed to pressure-pumping weakness, although this was partially offset by the Pintail acquisition [1][8] Segmental Performance - Operating profit in the Technical Services segment was $21 million, down from $30.2 million in the year-ago quarter [2] - Operating profit in the Support Services segment rose to $4.6 million, slightly up from $4.4 million year-over-year [2] - Total operating profit for the quarter was $15.5 million, a decrease from $35.5 million in the previous year, with the average domestic rig count at 571, down 5.3% year-over-year [2] Commodity Prices - The average oil price was $64.74 per barrel, reflecting a 20.8% decrease year-over-year [3] - The average price of natural gas was $3.20 per thousand cubic feet, which is a 54.6% increase compared to the same period in 2024 [3] Costs & Expenses - Cost of revenues increased to $317.7 million from $262.3 million in the prior-year period [4] - Selling, general and administrative expenses rose to $40.8 million, compared to $37.4 million in the year-ago quarter [4] Financials - RPC's total capital expenditure was $75.3 million [5] - As of June 30, the company had cash and cash equivalents of $162.1 million and maintained a debt-free balance sheet [5]

[Part I. Financial Information](index=4&type=section&id=Part%20I.%20Financial%20Information) This section details the company's unaudited financial statements, management's analysis, market risk, and internal controls [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents RPC, Inc.'s unaudited consolidated financial statements, reflecting significant changes due to the Pintail Alternative Energy acquisition [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to $1.46 billion from $1.39 billion at year-end 2024, primarily driven by the Pintail acquisition which added significant goodwill and intangible assets Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $162,113 | $325,975 | | Total current assets | $641,909 | $732,842 | | Goodwill | $93,206 | $50,824 | | Other intangibles, net | $107,135 | $13,843 | | **Total assets** | **$1,464,396** | **$1,386,489** | | **Liabilities & Equity** | | | | Total current liabilities | $242,962 | $181,913 | | Note payable (non-current) | $30,000 | $— | | **Total liabilities** | **$373,381** | **$308,198** | | **Total stockholders' equity** | **$1,091,015** | **$1,078,291** | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) For the second quarter of 2025, revenues increased 15.6% year-over-year to $420.8 million, largely due to the Pintail acquisition Quarterly and Six-Month Performance (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenues | $420,809 | $364,153 | $753,686 | $741,986 | | Operating income | $15,536 | $35,468 | $27,922 | $67,817 | | Net income | $10,148 | $32,419 | $22,178 | $59,886 | | Diluted EPS | $0.05 | $0.15 | $0.10 | $0.28 | - The company recorded **$6.55 million** in acquisition-related employment costs in Q2 and YTD 2025, which were not present in 2024, significantly impacting operating income[9](index=9&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the first six months of 2025, net cash from operating activities decreased to $92.9 million from $184.5 million in the prior year, mainly due to lower net income and unfavorable changes in working capital Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $92,943 | $184,487 | | Net cash used for investing activities | ($231,483) | ($118,916) | | Net cash used for financing activities | ($25,322) | ($27,365) | | **Net (decrease) increase in cash** | **($163,862)** | **$38,206** | - The primary driver for the large use of cash in investing activities was the **$165.7 million** payment for a business purchase, net of cash acquired[16](index=16&type=chunk) - Capital expenditures decreased to **$75.3 million** in the first six months of 2025 from **$127.8 million** in the same period of 2024[16](index=16&type=chunk) [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of the financial statements, including the Pintail acquisition, segment performance, and the effective tax rate - On April 1, 2025, RPC acquired Pintail Alternative Energy for **$170 million** in cash, **$25 million** in RPC common stock, and a **$50 million** seller note, included in the Technical Services segment[24](index=24&type=chunk)[25](index=25&type=chunk) - The Pintail acquisition added **$98.9 million** in revenue for the period from April 1 to June 30, 2025[38](index=38&type=chunk) - The effective tax rate for Q2 2025 was **41.3%** compared to **17.8%** in Q2 2024, with the increase primarily due to non-deductible acquisition-related employment costs[56](index=56&type=chunk) Technical Services Revenue by Service Line (in thousands) | Service Line | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Pressure Pumping | $109,197 | $147,156 | | Downhole Tools | $99,587 | $100,670 | | Wireline | $103,924 | $5,193 | | **Total Technical Services** | **$396,754** | **$341,484** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=35&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes Q2 revenue growth to the Pintail acquisition, while operating and net income declined due to lower pressure pumping pricing and acquisition costs - Q2 2025 revenue increase of **15.6%** was primarily due to the Pintail acquisition, which was partially offset by lower pressure pumping activity levels and pricing pressure[123](index=123&type=chunk) - Management believes the pressure pumping market remains highly competitive and over-supplied, with efficiency gains adding to capacity, which has negatively impacted activity, utilization, and pricing[123](index=123&type=chunk) Non-GAAP Financial Measures Reconciliation (in thousands) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income | $10,148 | $32,419 | $22,178 | $59,886 | | Adjusted EBITDA | $65,589 | $68,533 | $114,483 | $131,653 | | Free cash flow | $10,025 | $52,907 | $17,620 | $56,688 | - The company expects 2025 capital expenditures to be between **$165 million** and **$215 million**, mostly for maintenance[175](index=175&type=chunk) - On July 22, 2025, the Board declared a quarterly cash dividend of **$0.04** per share[183](index=183&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=55&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is exposed to interest rate risk through its credit facility and the new Seller Note from the Pintail acquisition, both of which have floating rates - The company is subject to interest rate risk from its credit facility and the Pintail Seller Note, which have floating interest rates[205](index=205&type=chunk) - Foreign exchange rate risk is not expected to have a material effect on the company's financial condition[206](index=206&type=chunk) [Item 4. Controls and Procedures](index=55&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that as of June 30, 2025, the company's disclosure controls and procedures were effective, excluding the newly acquired Pintail business as permitted by SEC guidance - Management's evaluation of disclosure controls and procedures as of June 30, 2025, concluded they were effective[208](index=208&type=chunk) - As permitted by the SEC, the evaluation of internal controls excluded the recently acquired Pintail, and the company is currently integrating Pintail's controls[209](index=209&type=chunk)[210](index=210&type=chunk) [Part II. Other Information](index=58&type=section&id=Part%20II.%20Other%20Information) This section outlines the company's legal proceedings, new risk factors, and other significant corporate information [Item 1. Legal Proceedings](index=58&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine litigation in the ordinary course of business but does not believe the outcomes will have a material adverse effect on its financial position or results of operations - RPC does not expect litigation outcomes to have a material adverse effect on its financial position or results[217](index=217&type=chunk) [Item 1A. Risk Factors](index=58&type=section&id=Item%201A.%20Risk%20Factors) A new material risk factor has been disclosed following the Pintail acquisition, concerning identified material weaknesses in its internal control over financial reporting - A new risk factor was added concerning material weaknesses in the internal control over financial reporting of the recently acquired subsidiary, Pintail, for the fiscal year ended December 31, 2024[218](index=218&type=chunk)[220](index=220&type=chunk) - The company has initiated steps to remediate and improve the internal controls related to Pintail's operations[220](index=220&type=chunk) [Item 5. Other Information](index=60&type=section&id=Item%205.%20Other%20Information) On July 22, 2025, the Board of Directors adopted amended and restated bylaws, enhancing procedural and disclosure requirements for stockholder nominations and proposals - The Board of Directors approved and adopted amended and restated bylaws on July 22, 2025[228](index=228&type=chunk) - Key amendments to the bylaws include: * Enhanced procedural mechanics for stockholder nominations and proposals * Deletion of fee-shifting provisions * Additional flexibility for stock certificate signatures[229](index=229&type=chunk) [Item 6. Exhibits](index=61&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including the Membership Interest Purchase Agreement for the Pintail acquisition, the amended and restated bylaws, and CEO/CFO certifications - Filed exhibits include the Pintail acquisition agreement (2.1), amended bylaws (3.2), and Section 302 and 906 certifications[231](index=231&type=chunk)

Financial Data and Key Metrics Changes - Revenues increased by 26% to $421 million, but excluding Pintail revenues, revenues were down 3% [15] - Adjusted diluted EPS was $0.08, with adjustments of $0.03 related to acquisition costs [20] - Adjusted EBITDA rose to $65.6 million from $48.9 million, with a margin increase of 90 basis points to 15.6% [20] - Operating cash flow was $92.9 million, with free cash flow at $17.6 million after capital expenditures of $75.3 million [20] Business Line Data and Key Metrics Changes - Pressure pumping accounted for 25.9% of total revenues, while wireline represented 24.7% [16] - Downhole tools revenues increased by 6% sequentially, with notable strength in the Northeast and Rocky Mountain regions [8] - Coiled tubing revenues were up 12% sequentially, with the delivery of the largest coiled tubing unit in the U.S. [10] - Rental tools revenues increased by 17% compared to the previous quarter [11] Market Data and Key Metrics Changes - Non-pressure pumping service lines represented 74% of total revenues during the second quarter [7] - The wireline market remains challenging with intensified pricing pressure [12] - The overall market is competitive, with a cautious outlook for the second half of the year due to reduced rig activity [7] Company Strategy and Development Direction - The company plans to test 100% natural gas pressure pumping units as part of its strategy to evaluate alternative technologies [7] - The focus is on organic investments and selective acquisitions to drive growth and improve customer mix [13] - The company aims to manage costs and utilize its balance sheet to take advantage of opportunities as they arise [24] Management's Comments on Operating Environment and Future Outlook - Management noted increasing macro and geopolitical uncertainties impacting operations [5] - The current oil prices are unlikely to stimulate significant activity increases in the near term [24] - There is cautious optimism regarding the customer lineup for pressure pumping, which may minimize seasonal slowdowns [42] Other Important Information - The acquisition of Pintail contributed approximately $99 million in revenues, accounting for 23% of total revenues [12] - The effective tax rate for the quarter was 41.3%, significantly higher than the previous quarter due to acquisition-related costs [18] Q&A Session Summary Question: Acquisition strategy and preference for consolidation or expansion - Management indicated a focus on scale in existing service lines while remaining opportunistic in evaluating new opportunities [27][29] Question: Outlook for the frac market and potential slowdown - Management acknowledged historical challenges in the frac market during the third quarter but expressed hope for improved activity with dedicated customers [41][42] Question: Free cash flow outlook for the second half of the year - Management expects better free cash flow in the second half, not counting on another prepayment like the one received in the previous year [45][47] Question: Impact of pricing pressures in wireline on future results - Management confirmed that pricing pressures are tied to Pintail and acknowledged the challenges faced in the Permian Basin [48][50]

RPC (RES) came out with quarterly earnings of $0.08 per share, missing the Zacks Consensus Estimate of $0.09 per share. This compares to earnings of $0.15 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -11.11%. A quarter ago, it was expected that this oil and gas services company would post earnings of $0.07 per share when it actually produced earnings of $0.06, delivering a surprise of -14.29%.Over the last four quarters, th ...

Exhibit 99.1 Page 1 Second Quarter 2025 Earnings Release RPC, Inc. Reports Second Quarter 2025 Financial Results And Declares Regular Quarterly Cash Dividend ATLANTA, July 24, 2025 - RPC, Inc. (NYSE: RES) ("RPC" or the "Company"), a leading diversified oilfield services company, announced its unaudited results for the second quarter ended June 30, 2025. Non-GAAP and adjusted measures, including adjusted revenues, adjusted operating income, adjusted net income, adjusted earnings per share (diluted), EBITDA a ...

Core Insights - RPC, Inc. reported a 26% sequential increase in revenues for Q2 2025, totaling $420.8 million, driven by the acquisition of Pintail Completions, despite challenges in the pressure pumping service line [6][10][12] - The oilfield services market is facing challenges due to lower commodity prices and macroeconomic uncertainties, but RPC's diversified service lines and customer base provided some resilience [5][10] Financial Performance - Revenues for pressure pumping, RPC's largest service line, decreased by 18%, while other service lines, excluding Pintail's wireline, saw increases [6][10] - Net income was reported at $10.1 million, down 16% sequentially, with diluted EPS at $0.05, reflecting a net income margin decrease of 120 basis points to 2.4% [10][12] - Adjusted net income increased by 46% sequentially to $17.5 million, with adjusted diluted EPS at $0.08, and an adjusted net income margin increase of 60 basis points to 4.2% [10][13] Cost and Expenses - Cost of revenues increased by 30% to $317.7 million, primarily due to the addition of Pintail, offset by lower pressure pumping activity [7][10] - Selling, general and administrative expenses decreased to $40.8 million, down from $42.5 million, with a reduction in employment costs contributing to a decrease in SG&A as a percentage of revenues [8][10] Acquisition Impact - The acquisition of Pintail Completions, effective April 1, 2025, contributed $98.9 million in revenues, significantly impacting RPC's financial results [10][12] - Acquisition-related employment costs were approximately $6.6 million during Q2 2025, with total expected costs of $78.6 million to be recognized over 12 quarters [9][10] Industry Context - The average U.S. rig count decreased to 571 in Q2 2025, down 2.9% from Q1 2025 and 5.3% year-over-year [5][10] - Oil prices averaged $64.74 per barrel, a decline of 10% sequentially and 20.8% year-over-year, while natural gas prices fell by 22.7% sequentially to $3.20 per Mcf [5][10] Cash Flow and Capital Allocation - Cash and cash equivalents at the end of Q2 2025 were $162.1 million, with net cash provided by operating activities at $92.9 million and free cash flow at $17.6 million year-to-date [14][15] - The company declared a quarterly cash dividend of $0.04 per share, payable on September 10, 2025 [15]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for RPC despite higher revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - RPC is expected to report quarterly earnings of $0.09 per share, reflecting a 40% decrease year-over-year, while revenues are projected to be $408 million, an increase of 12% from the previous year [3]. - The consensus EPS estimate has been revised down by 20.83% over the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for RPC matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%, complicating predictions of an earnings beat [12]. - A positive Earnings ESP is a strong indicator of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3, which increases the likelihood of a positive surprise [10]. Historical Performance - RPC has only beaten consensus EPS estimates once in the last four quarters, with a recent surprise of -14.29% when it reported earnings of $0.06 against an expectation of $0.07 [13][14]. Industry Comparison - Helix Energy, another player in the oil and gas services sector, is expected to report earnings of $0.01 per share, a significant year-over-year decline of 95.2%, with revenues anticipated to be $326.27 million, down 10.6% from the previous year [18]. - Helix Energy's consensus EPS estimate has remained unchanged over the last 30 days, and it also has an Earnings ESP of 0% with a Zacks Rank of 4, indicating challenges in predicting an earnings beat [19].

Group 1 - RPC, Inc. appointed Gary Kolstad to its Board of Directors, bringing extensive experience in oilfield services and leadership roles [1][2] - Kolstad has a background in petroleum engineering and has held various positions in public and private companies, as well as advisory roles [1] - The company provides a wide range of specialized oilfield services and equipment to independent and major oilfield companies across the United States and selected international markets [2]

Core Viewpoint - RPC, Inc. is set to release its financial results for the second quarter of 2025 on July 24, 2025, before market opening, followed by a conference call to discuss these results [1]. Group 1: Financial Results Announcement - RPC, Inc. will announce its second-quarter financial results for the period ending June 30, 2025, on July 24, 2025 [1]. - The company will host a conference call at 9:00 a.m. Eastern Time on the same day to review its 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 (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].