, /PRNewswire/ -- RPC, Inc. (NYSE: RES) announced today that it will release its financial results for the third quarter ended September 30, 2025 on Thursday, October 30, 2025 before the market opens. In conjunction with its earnings release, the Company will host a conference call to review the Company's financial and operating results on Thursday, October 30, 2025 at 9:00 a.m. Eastern Time. Individuals wishing to participate in the conference call should dial toll-free (888) 440-5966, or +1 (646) 960- 012 ...

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]

Group 1 - The article focuses on analyzing oil and gas companies, particularly RPC Inc., to identify undervalued opportunities in the sector [1][2] - RPC Inc. operates in a rapidly changing segment of the oil and gas industry, specifically in technology, which is characterized by cyclical trends [2] - The oil and gas industry is described as a boom-bust cycle, requiring patience and experience for successful investment [2] Group 2 - The analysis includes a breakdown of the companies' balance sheets, competitive positions, and development prospects [1] - The article emphasizes the importance of understanding the cyclical nature of the industry for making informed investment decisions [2]

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 ...

Executive Summary & Company Overview [Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) RPC, Inc. reported Q2 2025 unaudited results, with sequential revenue growth driven by the Pintail acquisition, while GAAP net income declined, and adjusted metrics improved - The Company acquired Pintail Completions, a leading wireline perforation service provider in the Permian Basin, effective April 1, 2025[6](index=6&type=chunk) Key Financial Highlights (2Q:25) | Metric | 2Q:25 (Millions) | Sequential Change | % Change (Sequential) | | :-------------------------------- | :--------------- | :---------------- | :-------------------- | | Revenues | $420.8 | +$87.9 | +26% | | Adjusted Revenues (Excl. Pintail) | - | -$10.0 | -3% | | Net Income | $10.1 | -$1.9 | -16% | | Diluted EPS | $0.05 | -$0.01 | -16.7% | | Net Income Margin | 2.4% | -120 bps | - | | Adjusted Net Income | $17.5 | +$5.5 | +46% | | Adjusted Diluted EPS | $0.08 | +$0.02 | +33.3% | | Adjusted Net Income Margin | 4.2% | +60 bps | - | | Adjusted EBITDA | $65.6 | +$16.7 | +34% | | Adjusted EBITDA Margin | 15.6% | +90 bps | - | [Management Commentary](index=1&type=section&id=Management%20Commentary) Management noted sequential revenue increases, driven by Pintail, but pressure pumping faced challenges from weak activity and pricing pressure - Downhole tools, coiled tubing, and rental tools all generated sequential revenue increases[5](index=5&type=chunk) - Wireline revenues benefited from the acquisition of Pintail, which brings significant scale and a blue-chip customer base[5](index=5&type=chunk) - Pressure pumping service line was negatively impacted by weaker activity, pricing pressure, weather, external non-productive time, and customer startup delays[5](index=5&type=chunk) - The oilfield services market remains challenged by lower commodity prices and macro uncertainties, leading the company to focus on efficiencies, cost improvements, and opportunistic investments[5](index=5&type=chunk) Selected Industry Data [Key Industry Metrics](index=2&type=section&id=Key%20Industry%20Metrics) Q2 2025 industry data shows sequential and year-over-year declines in U.S. rig count, with oil and natural gas prices also decreasing sequentially Selected Industry Data (2Q:25 vs 1Q:25 and 2Q:24) | Metric | 2Q:25 | 1Q:25 | Sequential Change | % Change (Sequential) | 2Q:24 | YoY Change | % Change (YoY) | | :-------------------- | :------ | :------ | :---------------- | :-------------------- | :------ | :--------- | :------------- | | U.S. rig count (avg) | 571 | 588 | (17) | (2.9)% | 603 | (32) | (5.3)% | | Oil price ($/barrel) | $64.74 | $71.93 | $(7.19) | (10.0)% | $81.78 | $(17.04) | (20.8)% | | Natural gas ($/Mcf) | $3.20 | $4.14 | $(0.94) | (22.7)% | $2.07 | $1.13 | 54.6% | Consolidated Financial Results (2Q:25) [Revenues](index=2&type=section&id=Revenues) Total revenues for Q2 2025 increased **26% sequentially to $420.8 million**, primarily driven by the Pintail acquisition, with pressure pumping revenues declining 2Q:25 Revenues (Sequential Comparison) | Metric | 2Q:25 (Millions) | 1Q:25 (Millions) | Sequential Change | % Change (Sequential) | | :-------------------- | :--------------- | :--------------- | :---------------- | :-------------------- | | Total Revenues | $420.8 | $332.9 | +$87.9 | +26% | | Pressure Pumping | - | - | - | -18% | | Rental Tools | - | - | - | +17% | - The increase in total revenues was primarily due to the inclusion of Pintail. Excluding Pintail, adjusted revenues decreased **3% sequentially**[6](index=6&type=chunk)[8](index=8&type=chunk) - Pressure pumping, the largest service line, saw an **18% decline in revenues**, while coiled tubing and downhole tools experienced the biggest organic increases outside of wireline[8](index=8&type=chunk) [Costs and Expenses](index=2&type=section&id=Costs%20and%20Expenses) Cost of revenues increased **30% sequentially** due to Pintail, while SG&A as a percentage of revenues decreased, benefiting from employment cost reductions and revenue leverage 2Q:25 Costs and Expenses (Sequential Comparison) | Metric | 2Q:25 (Millions) | 1Q:25 (Millions) | Sequential Change | % Change (Sequential) | | :------------------------------------ | :--------------- | :--------------- | :---------------- | :-------------------- | | Cost of Revenues (excl. D&A) | $317.7 | $243.9 | +$73.8 | +30% | | Selling, General & Administrative (SG&A) | $40.8 | $42.5 | -$1.7 | -4% | | SG&A as % of Revenues | 9.7% | 12.8% | -310 bps | - | | Acquisition related employment costs | $6.6 | $0 | +$6.6 | - | - The increase in cost of revenues was primarily due to the addition of Pintail, partially offset by lower pressure pumping activity[9](index=9&type=chunk) - SG&A as a percentage of revenues decreased due to a reduction in employment-related costs and SG&A cost leverage from Pintail's revenue[10](index=10&type=chunk) [Net income and diluted EPS](index=2&type=section&id=Net%20income%20and%20diluted%20EPS) GAAP net income and diluted EPS decreased sequentially, but adjusted net income and EPS significantly increased, with an unusually high effective tax rate from non-deductible acquisition costs 2Q:25 Net Income and EPS (Sequential Comparison) | Metric | 2Q:25 | 1Q:25 | Sequential Change | % Change (Sequential) | | :-------------------------- | :------ | :------ | :---------------- | :-------------------- | | Net Income (Millions) | $10.1 | $12.0 | -$1.9 | -16% | | Diluted EPS | $0.05 | $0.06 | -$0.01 | -16.7% | | Net Income Margin | 2.4% | 3.6% | -120 bps | - | | Adjusted Net Income (Millions) | $17.5 | $12.0 | +$5.5 | +46% | | Adjusted Diluted EPS | $0.08 | $0.06 | +$0.02 | +33.3% | | Adjusted Net Income Margin | 4.2% | 3.6% | +60 bps | - | | Income Tax Provision (Millions) | $7.2 | $4.5 | +$2.7 | +60% | | Effective Tax Rate | 41.3% | 27.2% | +14.1% | - | - The effective tax rate was unusually high at **41.3%** mainly due to acquisition-related employment costs, which contributed to lower pre-tax income and are largely non-deductible[12](index=12&type=chunk) [Adjusted EBITDA](index=2&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA for Q2 2025 increased **34% sequentially to $65.6 million**, primarily driven by the Pintail acquisition, with the margin improving to **15.6%** 2Q:25 Adjusted EBITDA (Sequential Comparison) | Metric | 2Q:25 (Millions) | 1Q:25 (Millions) | Sequential Change | % Change (Sequential) | | :--------------- | :--------------- | :--------------- | :---------------- | :-------------------- | | Adjusted EBITDA | $65.6 | $48.9 | +$16.7 | +34% | | Adjusted EBITDA Margin | 15.6% | 14.7% | +90 bps | - | - The increase in Adjusted EBITDA was primarily due to the contribution from the Pintail acquisition[14](index=14&type=chunk) Balance Sheet, Cash Flow and Capital Allocation [Liquidity and Cash Position](index=4&type=section&id=Liquidity%20and%20Cash%20Position) RPC, Inc. maintained strong liquidity at Q2 2025, with **$162.1 million** in cash and no outstanding borrowings, despite reduced cash balances post-Pintail acquisition 2Q:25 Liquidity Position | Metric | Amount (Millions) | | :------------------------------------ | :---------------- | | Cash and cash equivalents (June 30, 2025) | $162.1 | | Outstanding borrowings (Revolving credit facility) | $0 | | Revolving credit facility limit | $100 | | Interest income (2Q:25) | $1.6 | | Interest expense (2Q:25) | $1.0 | - Cash balances decreased from the previous quarter, reflecting the impact of the Pintail acquisition[11](index=11&type=chunk) [Cash Flow Activities](index=4&type=section&id=Cash%20Flow%20Activities) Year-to-date through Q2 2025, net cash provided by operating activities was **$92.9 million**, resulting in free cash flow of **$17.6 million** YTD 2Q:25 Cash Flow Activities | Metric | Amount (Millions) | | :-------------------------------- | :---------------- | | Net cash provided by operating activities | $92.9 | | Free cash flow | $17.6 | [Capital Allocation](index=4&type=section&id=Capital%20Allocation) RPC, Inc. paid **$17.5 million** in YTD dividends and declared a **$0.04 per share** quarterly dividend, with **$2.9 million** in share repurchases for tax withholding YTD 2Q:25 Capital Allocation | Metric | Amount (Millions) | | :------------------------------------ | :---------------- | | Dividends paid (YTD) | $17.5 | | Declared quarterly cash dividend (per share) | $0.04 | | Share repurchases (YTD) | $2.9 | - The declared quarterly cash dividend is payable on September 10, 2025, to stockholders of record on August 11, 2025[16](index=16&type=chunk) - Share repurchases were related to tax withholding for restricted stock vesting[16](index=16&type=chunk) Segment Operations [Technical Services](index=4&type=section&id=Technical%20Services) The Technical Services segment reported a **27% sequential increase in revenues to $396.8 million** and a **51% increase in operating income to $21.1 million**, primarily driven by the Pintail acquisition - Technical Services performs value-added completion, production, and maintenance services directly to customer wells[17](index=17&type=chunk) 2Q:25 Technical Services Segment Performance (Sequential Comparison) | Metric | 2Q:25 (Thousands) | 1Q:25 (Thousands) | Sequential Change | % Change (Sequential) | | :---------------- | :---------------- | :---------------- | :---------------- | :-------------------- | | Revenues | $396,754 | $311,844 | +$84,910 | +27% | | Operating Income | $21,123 | $14,003 | +$7,120 | +51% | - Results were primarily driven by the addition of Pintail[20](index=20&type=chunk) [Support Services](index=4&type=section&id=Support%20Services) The Support Services segment saw a **14% sequential increase in revenues to $24.1 million** and a **74% increase in operating income to $4.6 million**, driven by higher rental tool activity and fixed costs - Support Services provides equipment for customer use or services to assist customer operations, including rental tools and pipe inspection services[18](index=18&type=chunk) 2Q:25 Support Services Segment Performance (Sequential Comparison) | Metric | 2Q:25 (Thousands) | 1Q:25 (Thousands) | Sequential Change | % Change (Sequential) | | :---------------- | :---------------- | :---------------- | :---------------- | :-------------------- | | Revenues | $24,055 | $21,033 | +$3,022 | +14% | | Operating Income | $4,639 | $2,661 | +$1,978 | +74% | - Results were driven by higher activity in rental tools and the fixed-cost nature of these service lines[20](index=20&type=chunk) Additional Information [Conference Call Details](index=5&type=section&id=Conference%20Call%20Information) RPC, Inc. held a conference call on July 24, 2025, to discuss the Q2 results, with access available via webcast and phone, and a replay accessible for 90 days - A conference call was held on July 24, 2025, at 9:00 a.m. ET[21](index=21&type=chunk) - Access was available via live webcast on RPC, Inc.'s investor relations website (www.rpc.net) or by phone using conference ID 9842359[21](index=21&type=chunk) - A replay of the call is available on the investor relations website for 90 days[21](index=21&type=chunk) [About RPC](index=5&type=section&id=About%20RPC) RPC, Inc. is a diversified oilfield services company providing specialized services and equipment primarily to independent and major oilfield companies across the United States and in selected international markets - RPC provides a broad range of specialized oilfield services and equipment[22](index=22&type=chunk) - Services are primarily offered to independent and major oilfield companies engaged in exploration, production, and development of oil and gas properties[22](index=22&type=chunk) - Geographic focus includes the United States (Gulf of America, mid-continent, southwest, Appalachian, Rocky Mountain regions) and selected international markets[22](index=22&type=chunk) [Forward Looking Statements](index=5&type=section&id=Forward%20Looking%20Statements) This section contains forward-looking statements on Pintail acquisition benefits, market challenges, and strategic responses, outlining risk factors like commodity prices and political instability - Forward-looking statements include beliefs about the Pintail acquisition bringing a scaled and high-quality company, Pintail's strong Permian operations, and RPC's diversified portfolio providing resiliency[23](index=23&type=chunk) - Management believes the oilfield services market is challenged and that business leaders are responding by focusing on efficiencies, cost improvements, passing on supplier costs, and opportunistic investments[23](index=23&type=chunk) - Risk factors include oil and natural gas prices, U.S. economy performance, adverse weather, changes in competitive environment, political instability, OPEC actions, customer drilling activities, and the ability to complete acquisitions[23](index=23&type=chunk) Financial Statements and Non-GAAP Reconciliations [Consolidated Statements of Operations](index=6&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) The consolidated statements of operations detail RPC, Inc.'s revenues, costs, and profitability for Q2 2025, with total revenues of **$420.8 million** and net income of **$10.1 million** Consolidated Statements of Operations (Selected Data, In thousands) | Metric | 2Q:25 | 1Q:25 | 2Q:24 | YTD 2025 | YTD 2024 | | :-------------------------------------------------------------------------------- | :------ | :------ | :------ | :------- | :------- | | REVENUES | $420,809 | $332,877 | $364,153 | $753,686 | $741,986 | | Cost of revenues (exclusive of depreciation and amortization) | 317,746 | 243,895 | 262,284 | 561,641 | 538,893 | | Selling, general and administrative expenses | 40,825 | 42,499 | 37,406 | 83,324 | 77,491 | | Acquisition related employment costs | 6,554 | — | — | 6,554 | — | | Depreciation and amortization | 42,347 | 35,623 | 32,333 | 77,970 | 62,337 | | Gain on disposition of assets, net | (2,199) | (1,526) | (3,338) | (3,725) | (4,552) | | Operating income | 15,536 | 12,386 | 35,468 | 27,922 | 67,817 | | Interest expense | (1,007) | (131) | (99) | (1,138) | (333) | | Interest income | 1,618 | 3,395 | 3,343 | 5,013 | 6,308 | | Other income, net | 1,152 | 885 | 732 | 2,037 | 1,499 | | Income before income taxes | 17,299 | 16,535 | 39,444 | 33,834 | 75,291 | | Income tax provision | 7,151 | 4,505 | 7,025 | 11,656 | 15,405 | | NET INCOME | $10,148 | $12,030 | $32,419 | $22,178 | $59,886 | | Diluted EPS | $0.05 | $0.06 | $0.15 | $0.10 | $0.28 | [Consolidated Balance Sheets](index=8&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) Consolidated balance sheets show total assets increased to **$1.46 billion** by June 30, 2025, driven by the Pintail acquisition, with corresponding increases in liabilities, particularly accounts payable and notes payable Consolidated Balance Sheets (Selected Data, In thousands) | Metric | June 30, 2025 | December 31, 2024 | | :------------------------------------ | :-------------- | :---------------- | | Cash and cash equivalents | $162,113 | $325,975 | | Accounts receivable, net | 303,353 | 276,577 | | Inventories | 117,701 | 107,628 | | Total current assets | 641,909 | 732,842 | | Property, plant and equipment, net | 560,936 | 513,516 | | Goodwill | 93,206 | 50,824 | | Other intangibles, net | 107,135 | 13,843 | | Total assets | $1,464,396 | $1,386,489 | | Accounts payable | $132,360 | $84,494 | | Current portion of notes payable | 20,000 | — | | Total current liabilities | 242,962 | 181,913 | | Note payable (long-term) | 30,000 | — | | Total liabilities | 373,381 | 308,198 | | Total stockholders' equity | 1,091,015 | 1,078,291 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Condensed consolidated cash flow statements for YTD Q2 2025 show a significant decrease in cash, primarily due to substantial cash used in investing activities for the Pintail acquisition, despite positive operating cash flow Condensed Consolidated Statements of Cash Flows (Selected Data, In thousands) | Metric | YTD 2025 | YTD 2024 | | :------------------------------------------ | :------- | :------- | | Net cash provided by operating activities | $92,943 | $184,487 | | Capital expenditures | (75,323) | (127,799) | | Purchase of business, net of cash and debt assumed | (165,656) | — | | Net cash used for investing activities | (231,483) | (118,916) | | Payment of dividends | (17,478) | (17,203) | | Repayment of debt assumed at acquisition | (4,502) | — | | Cash paid for common stock purchased and retired | (2,868) | (9,858) | | Net cash used for financing activities | (25,322) | (27,365) | | Net (decrease) increase in cash and cash equivalents | (163,862) | 38,206 | | Cash and cash equivalents at end of period | $162,113 | $261,516 | [Non-GAAP Measures Explanation](index=11&type=section&id=Non-GAAP%20Measures) RPC, Inc. uses non-GAAP measures like adjusted revenues, net income, EPS, EBITDA, and free cash flow to provide a consistent view of core business performance and liquidity, excluding acquisition-related costs - Non-GAAP measures used include adjusted revenues, adjusted operating income, adjusted net income, adjusted earnings per share, adjusted EBITDA, adjusted EBITDA margin, and free cash flow[29](index=29&type=chunk) - Management believes these measures help investors compare operating performance consistently over time and assess the ability to generate additional cash from business operations[29](index=29&type=chunk) - Adjusted measures that exclude revenues and costs related to Pintail's performance allow for period-to-period comparison of the core, pre-acquisition business[29](index=29&type=chunk) [Non-GAAP Reconciliations](index=11&type=section&id=Non-GAAP%20Reconciliations) This section provides detailed reconciliations of GAAP to non-GAAP adjusted measures, including operating income, net income, diluted EPS, EBITDA, and free cash flow, highlighting acquisition-related cost impacts [Adjusted Operating Income Reconciliation](index=11&type=section&id=Appendix%20A) This section reconciles GAAP operating income to adjusted operating income, detailing the impact of acquisition-related employment costs Reconciliation of Operating Income to Adjusted Operating Income (In thousands) | Metric | 2Q:25 | 1Q:25 | 2Q:24 | YTD 2025 | YTD 2024 | | :-------------------------------- | :------ | :------ | :------ | :------- | :------- | | Operating income | $15,536 | $12,386 | $35,468 | $27,922 | $67,817 | | Add: Acquisition related employment costs | 6,554 | — | — | 6,554 | — | | Adjusted operating income | $22,090 | $12,386 | $35,468 | $34,476 | $67,817 | [Adjusted Net Income and EPS Reconciliation](index=11&type=section&id=Appendix%20B) This section reconciles GAAP net income and diluted EPS to their adjusted non-GAAP counterparts, accounting for acquisition-related employment costs and their tax effects Reconciliation of Net Income to Adjusted Net Income (In thousands) | Metric | 2Q:25 | 1Q:25 | 2Q:24 | YTD 2025 | YTD 2024 | | :------------------------------------------ | :------ | :------ | :------ | :------- | :------- | | Net income | $10,148 | $12,030 | $32,419 | $22,178 | $59,886 | | Add: Acquisition related employment costs, before taxes | 6,554 | — | — | 6,554 | — | | Add: Tax effect of Acquisition related employment costs | 802 | — | — | 802 | — | | Total adjustments, net of tax | 7,356 | — | — | 7,356 | — | | Adjusted net income | $17,504 | $12,030 | $32,419 | $29,534 | $59,886 | Reconciliation of Diluted Earnings Per Share to Adjusted Diluted Earnings Per Share | Metric | 2Q:25 | 1Q:25 | 2Q:24 | YTD 2025 | YTD 2024 | | :------------------------------------------ | :---- | :---- | :---- | :------- | :------- | | Diluted earnings per share | $0.05 | $0.06 | $0.15 | $0.10 | $0.28 | | Add: Acquisition related employment costs, before taxes | 0.03 | — | — | 0.03 | — | | Add: Tax effect of Acquisition related employment costs | — | — | — | — | — | | Total adjustments, net of tax | 0.03 | — | — | 0.03 | — | | Adjusted diluted earnings per share | $0.08 | $0.06 | $0.15 | $0.13 | $0.28 | [EBITDA and Adjusted EBITDA Reconciliation](index=13&type=section&id=Appendix%20C) This section reconciles GAAP net income to EBITDA and adjusted EBITDA, incorporating adjustments for taxes, interest, depreciation, amortization, and acquisition-related costs Reconciliation of Net Income to EBITDA and Adjusted EBITDA (In thousands) | Metric | 2Q:25 | 1Q:25 | 2Q:24 | YTD 2025 | YTD 2024 | | :-------------------------------- | :------ | :------ | :------ | :------- | :------- | | Net income | $10,148 | $12,030 | $32,419 | $22,178 | $59,886 | | Add: Income tax provision | 7,151 | 4,505 | 7,025 | 11,656 | 15,405 | | Add: Interest expense | 1,007 | 131 | 99 | 1,138 | 333 | | Add: Depreciation and amortization | 42,347 | 35,623 | 32,333 | 77,970 | 62,337 | | Less: Interest income | 1,618 | 3,395 | 3,343 | 5,013 | 6,308 | | EBITDA | $59,035 | $48,894 | $68,533 | $107,929 | $131,653 | | Add: Acquisition related employment costs | 6,554 | — | — | 6,554 | — | | Adjusted EBITDA | $65,589 | $48,894 | $68,533 | $114,483 | $131,653 | | Revenues | $420,809 | $332,877 | $364,153 | $753,686 | $741,986 | | Net income margin | 2.4% | 3.6% | 8.9% | 2.9% | 8.1% | | Adjusted EBITDA margin | 15.6% | 14.7% | 18.8% | 15.2% | 17.7% | [Free Cash Flow Reconciliation](index=13&type=section&id=Appendix%20D) This section reconciles net cash provided by operating activities to free cash flow, accounting for capital expenditures Reconciliation of Operating Cash Flow to Free Cash Flow (In thousands) | Metric | YTD 2025 | YTD 2024 | | :-------------------------------- | :------- | :------- | | Net cash provided by operating activities | $92,943 | $184,487 | | Capital expenditures | (75,323) | (127,799) | | Free cash flow | $17,620 | $56,688 |

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].