Group 1 - RPC, Inc. declared a regular quarterly cash dividend of $0.04 per share, payable on March 10, 2026, to common stockholders of record as of February 10, 2026 [1] - 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 [2]

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for RPC, driven by 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 $0.07 per share, reflecting a year-over-year increase of 16.7% [3]. - Revenues are projected to reach $425 million, representing a 26.7% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4]. - The Most Accurate Estimate for RPC aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%, suggesting no recent differing analyst views [11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict deviations from consensus estimates, with positive readings being more reliable [8][9]. - RPC currently holds a Zacks Rank of 3, making it challenging to predict an earnings beat conclusively [11]. Historical Performance - In the last reported quarter, RPC exceeded expectations with earnings of $0.09 per share against an estimate of $0.05, achieving a surprise of 80% [12]. - Over the past four quarters, RPC has only beaten consensus EPS estimates once [13]. Conclusion - While RPC may not be a strong candidate for an earnings beat, investors should consider other factors influencing stock performance ahead of the earnings release [16].

Core Viewpoint - The article discusses the attractiveness of sub-$10 energy stocks in the context of oil prices hovering around $60 per barrel, highlighting potential investment opportunities in companies like W&T Offshore, RPC Inc., and Oil States International as conditions may stabilize or improve [2]. Industry Overview - Oil prices have been affected by oversupply concerns, rising inventories, and easing geopolitical tensions, leading to pressure on producer economics and investor sentiment [2][3]. - The International Energy Agency (IEA) projects global oil demand growth of 930,000 barrels per day in 2026, but supply is expected to rise faster, creating a significant surplus [3]. - Benchmark crude prices remain below levels from a year ago, causing many U.S. independent producers to operate close to breakeven, which compresses margins and limits drilling activity [4]. Market Dynamics - Recent price weakness is attributed to oversupply and higher inventories, although the IEA suggests fears of a significant oil glut may be exaggerated [5]. - Investors face challenges in distinguishing between companies experiencing temporary pricing pressures and those with deeper business risks, making balance sheet strength and operational flexibility crucial [6]. Investment Opportunities - Sub-$10 energy stocks can provide diversification across producers, service providers, and equipment suppliers, but they often come with increased volatility [7]. - A disciplined investment approach should focus on financial resilience, industry positioning, and sensitivity to oil price movements [8]. Company Highlights - **W&T Offshore**: An independent oil and natural gas producer with a strong presence in the Gulf of America, holding interests in 50 offshore fields and generating positive cash flow for over 28 consecutive quarters. The company has a market capitalization of $281 million and a share price of $1.92 [9][11]. - **RPC Inc.**: A U.S.-based oilfield services provider with a debt-free balance sheet, known for returning excess free cash to shareholders. The company trades for less than $7, with a projected revenue growth of 6.4% for 2026 [12][14]. - **Oil States International**: Supplies products and services across the oil and gas value chain, with a projected revenue growth of 44.1% for 2026. Currently trading under $9, the company has a four-quarter earnings surprise of 12.5% on average [15][17].

Industry Overview - Oil prices have been fluctuating around the $60-per-barrel mark due to oversupply concerns, rising inventories, and easing geopolitical tensions, which have limited upward momentum [1] - The International Energy Agency (IEA) forecasts global oil demand growth of 930,000 barrels per day by 2026, but supply is expected to increase at a faster rate, leading to a significant surplus [2] - Current benchmark crude prices are significantly lower than a year ago, putting many U.S. independent producers near breakeven, which compresses margins and limits drilling activity [3] Market Dynamics - Recent price declines are primarily driven by oversupply and higher inventories, although the IEA suggests that fears of a substantial oil glut may be overstated [4] - Investors face challenges in distinguishing between companies experiencing temporary pricing pressures and those with more profound business risks, making balance sheet strength and operational flexibility critical [5] Investment Opportunities - Low-priced energy stocks under $10 can provide diversification across producers, service providers, and equipment suppliers, but they often come with increased volatility [6] - A disciplined investment approach should focus on financial resilience, industry positioning, and sensitivity to oil price movements [7] Company Highlights - **W&T Offshore (WTI)**: An independent oil and natural gas producer with a strong presence in the Gulf of America, generating positive cash flow for 28 consecutive quarters and maintaining a 90% drilling success rate [9][10] - **RPC, Inc. (RES)**: A U.S.-based oilfield services provider with a debt-free balance sheet, known for returning excess free cash to shareholders and expanding its service mix [13][14] - **Oil States International (OIS)**: Supplies products and services across the oil and gas value chain, with projected revenue growth of 44.1% by 2026 and operations in over 25 countries [16][18]

Core Viewpoint - RPC, Inc. is set to release its financial results for Q4 and the full year of 2025 on February 3, 2026, before market opening [1] Group 1: Financial Results Announcement - The financial results will cover the period ending December 31, 2025 [1] - A conference call to discuss the financial and operating results will take place on February 3, 2026, at 9:00 a.m. Eastern Time [1] Group 2: Conference Call Participation - Participants can join the conference call by dialing toll-free (800) 715-9871 or +1 (646) 307-1963 for international callers, using conference ID number 5388095 [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, Inc. 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]

Core Viewpoint - RPC, Inc. is recognized as one of the best debt-free dividend stocks to consider for investment, despite a cautious outlook from analysts [1]. Group 1: Analyst Ratings and Market Outlook - Piper Sandler raised the price target for RPC, Inc. to $5 from $4 while maintaining an Underweight rating, indicating a cautious stance despite the industry's resilience [2]. - Looking ahead to 2026, Piper Sandler sees early signs of improvement with cyclical tailwinds, including activity resuming in Saudi Arabia and Mexico, and a potential stabilization in the US land market [3]. Group 2: Financial Performance - In the third quarter of 2025, RPC, Inc. reported sequential revenue growth, with significant contributions from pressure pumping, coiled tubing, and downhole tools, where service lines outside of pressure pumping accounted for 72% of total revenue and experienced a 3% sequential increase [4]. - The company anticipates full-year 2025 capital spending to be between $170 million and $190 million, primarily for maintenance, selective asset purchases, and IT system upgrades [5]. Group 3: Company Overview - RPC, Inc. provides a diverse range of specialized oilfield services and equipment, catering to both independent and major oilfield companies involved in oil and gas exploration, production, and development across selected US and international markets [6].

Industry Overview - The trend of technology companies taking on debt to fund AI investments is increasing, shifting from a previous avoidance of debt among S&P 500 tech firms [1][4] - Concerns are rising among investors as companies borrow heavily for multibillion-dollar AI projects, with uncertain payoffs [2][6] Debt Issuance - Global technology firms issued a record $428.3 billion in bonds in 2025, with US companies accounting for $341.8 billion [5] - The shift towards borrowing is attributed to low borrowing costs and strong investor appetite for bonds, even among firms with strong cash positions [4][5] Company Examples - Oracle announced a need to raise capital expenditures by an additional $15 billion in the current fiscal year, relying on debt to cover costs [3] - RPC, Inc. (NYSE:RES) is highlighted as a debt-free stock that pays dividends, with a market cap of $1.20 billion and enterprise value of $1.12 billion [12] - Cincinnati Financial Corporation (NASDAQ:CINF) is another debt-free stock, with a market cap of $25.8 billion and enterprise value of $25.29 billion [18] Financial Performance - RPC, Inc. reported sequential revenue growth in its third-quarter 2025 earnings, with significant contributions from various service segments [15] - Cincinnati Financial Corporation is noted for its steady performance in the property and casualty insurance sector, with a long record of dividend growth and consistent profitability [20][21]

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]