Workflow
RPC(RES)
icon
Search documents
RPC(RES) - 2025 Q1 - Earnings Call Transcript
2025-04-24 14:00
Financial Data and Key Metrics Changes - Revenues decreased by 1% to $333 million in the first quarter compared to the fourth quarter of 2024 [18] - EBITDA increased to $48.9 million from $46.1 million, with EBITDA margin rising by 100 basis points to 14.7% [22] - Diluted EPS remained flat at $0.06 [22] - Operating cash flow was $39.9 million, with free cash flow of $7.6 million after capital expenditures of $32.3 million [22] Business Line Data and Key Metrics Changes - Pressure pumping revenues accounted for 40.1% of total revenues, while downhole tools represented 28.2%, coiled tubing 9.6%, cementing 8.3%, and rental tools 4.6% [19] - Pressure pumping revenues were flat sequentially, while other service lines collectively declined by 1% [6][18] - Rental tools saw a notable gain of approximately 7% [11] Market Data and Key Metrics Changes - The company noted challenges in demand and utilization for Tier two diesel equipment, with a highly competitive pricing environment in the spot and semi-dedicated frac market [7] - The acquisition of Pentel is expected to increase the company's concentration in the Permian Basin to approximately 60% of total revenues [16] Company Strategy and Development Direction - The company aims to bolster less capital-intensive service lines through organic investments and acquisitions to drive growth and reduce volatility [11] - The strategic rationale for the Pentel acquisition includes improving margins, optimizing assets, and increasing operational scale through M&A [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about macro uncertainties driven by tariffs, which could impact equipment prices and overall industry capital spending [27] - Despite the challenges, the company maintains a strong balance sheet and ample liquidity to navigate volatility and pursue opportunities [28] Other Important Information - The company has filed an S-3 registration statement with the SEC for the Rollins family control group shares, which is viewed as good corporate housekeeping [25] - Steve Lewis has been elected to the Board of Directors, while Gary Rollins and Pam Rollins have retired [29] Q&A Session Summary Question: What are the current pricing conversations in the pressure pumping market? - Management noted that while each cycle is different, customers are responding to lower oil prices, leading to discussions that are somewhat similar to prior periods of market softness [37][38] Question: What are the capital allocation priorities following the Pentel acquisition? - The focus is on accretive transactions, exposure to larger customers, and service lines with good free cash flow potential [39][40] Question: What is the expected revenue contribution from the Pentel business? - Pentel generated approximately $400 million in revenue in 2024, with quarterly revenues around $100 million [41] Question: Are there shifts in customer activity towards lower CapEx projects? - Management indicated it is too early to determine any significant shifts but acknowledged that such trends have occurred in prior cycles [46] Question: What is the visibility on job timelines for fracking? - Visibility varies by customer type, with semi-dedicated customers providing several months of visibility, while spot market customers offer much less [48] Question: Is there an uptick in gas-directed activity? - Management believes any increase in gas-directed activity is likely further down the road, although there are some early signs [51] Question: What are the company's thoughts on older equipment being sold by competitors? - The company has seen opportunities but prefers not to invest in used equipment, focusing instead on reallocating assets within its service lines [58] Question: What would trigger an acceleration in capital expenditures? - Capital expenditures will be based on market conditions and the need to maintain equipment, with potential for increased spending if accretive opportunities arise [60][62] Question: Is the company focused on consolidating the Permian market or open to other basins? - Management is open to opportunities in other basins, not solely focused on the Permian, and is exploring various potential acquisitions [64][65]
RPC (RES) Q1 Earnings Lag Estimates
ZACKS· 2025-04-24 12:55
Group 1: Earnings Performance - RPC reported quarterly earnings of $0.06 per share, missing the Zacks Consensus Estimate of $0.07 per share, and down from $0.13 per share a year ago, representing an earnings surprise of -14.29% [1] - The company posted revenues of $332.88 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.23%, but down from year-ago revenues of $377.83 million [2] - Over the last four quarters, RPC has surpassed consensus EPS estimates just once and topped consensus revenue estimates two times [2] Group 2: Stock Performance and Outlook - RPC shares have lost about 17% since the beginning of the year, compared to the S&P 500's decline of -8.6% [3] - The company's earnings outlook is crucial for investors, with current consensus EPS estimate for the coming quarter at $0.08 on revenues of $345.3 million, and $0.31 on revenues of $1.37 billion for the current fiscal year [7] - The estimate revisions trend for RPC is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] Group 3: Industry Context - The Oil and Gas - Field Services industry, to which RPC belongs, is currently in the bottom 40% of the Zacks industry rankings, which can materially impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that tracking these revisions is important for investors [5]
RPC(RES) - 2025 Q1 - Quarterly Results
2025-04-24 10:45
Financial Performance - Revenues for Q1 2025 were $332.9 million, a decrease of 1% sequentially from Q4 2024[5]. - Net income was $12 million, down 6% sequentially, with diluted EPS at $0.06; net income margin decreased by 20 basis points to 3.6%[5][11]. - EBITDA increased by 6% sequentially to $48.9 million, with an EBITDA margin of 14.7%, up 100 basis points[5][12]. - Revenues for Q1 2025 were $332,877 thousand, a decrease of 11.9% compared to $377,833 thousand in Q1 2024[24]. - Net income for Q1 2025 was $12,030 thousand, down 56.2% from $27,467 thousand in Q1 2024[24]. - EBITDA for Q1 2025 was $48,894 thousand, representing an EBITDA margin of 14.7% compared to 16.7% in Q1 2024[30]. - Operating income increased to $12,386 thousand in Q1 2025 from $10,517 thousand in Q4 2024, reflecting a 17.7% quarter-over-quarter growth[24]. Cash Flow and Liquidity - Cash and cash equivalents at the end of Q1 2025 were $326.7 million, with no outstanding borrowings under the $100 million revolving credit facility[13]. - Net cash provided by operating activities was $39.9 million, and free cash flow was $7.6 million in Q1 2025[14]. - Free cash flow for Q1 2025 was $7,595 thousand, an increase from $3,781 thousand in Q1 2024[31]. - The company reported a net cash provided by operating activities of $39,865 thousand in Q1 2025, compared to $56,559 thousand in Q1 2024[31]. - Cash and cash equivalents at the end of Q1 2025 were $326,724 thousand, slightly up from $325,975 thousand at the end of 2024[26]. Expenses and Costs - Cost of revenues decreased by 3% to $243.9 million, contributing to improved operating income[9]. - Selling, general and administrative expenses rose to $42.5 million, representing 12.8% of revenues, an increase of 50 basis points[10]. - Capital expenditures in Q1 2025 were $32,270 thousand, down from $52,778 thousand in Q1 2024[26]. Acquisitions and Market Activity - The company completed the acquisition of Pintail Completions on April 1, 2025, which generated over $400 million in revenues in 2024[5]. - The average U.S. rig count increased by 0.3% to 588 in Q1 2025, while oil prices rose by 1.9% to $71.93 per barrel[7]. Assets and Liabilities - Total assets decreased to $1,345,919 thousand as of March 31, 2025, down from $1,386,489 thousand at the end of 2024[25]. - Total liabilities decreased to $264,333 thousand as of March 31, 2025, compared to $308,198 thousand at the end of 2024[25]. Dividends - The company declared a regular quarterly cash dividend of $0.04 per share, payable on June 10, 2025[15].
RPC, Inc. Reports First Quarter 2025 Financial Results And Declares Regular Quarterly Cash Dividend
Prnewswire· 2025-04-24 10:45
Core Viewpoint - RPC, Inc. reported its first quarter 2025 results, highlighting a stable performance across most service lines and the successful acquisition of Pintail Completions, which is expected to enhance RPC's service offerings in the Permian region [4][6]. Financial Performance - Revenues for Q1 2025 were $332.9 million, a decrease of 1% from Q4 2024, with pressure pumping revenues remaining flat and other service lines combined decreasing by 1% [6][14]. - Net income was $12 million, down 6% sequentially, with diluted EPS at $0.06, reflecting a decrease in net income margin to 3.6% [10][11]. - EBITDA increased by 6% sequentially to $48.9 million, with an EBITDA margin of 14.7%, up 100 basis points from the previous quarter [11][12]. Acquisition Details - The acquisition of Pintail Completions, effective April 1, 2025, is expected to bring significant operational benefits, as Pintail generated over $400 million in revenues in 2024 and is recognized for its strong profitability and customer service [6][12]. Industry Context - The U.S. rig count averaged 588 in Q1 2025, a slight increase of 0.3% from Q4 2024, but down 5.6% year-over-year [5]. - Oil prices averaged $71.93 per barrel, a 1.9% increase from the previous quarter but a 7.1% decrease compared to the same quarter last year [5]. - Natural gas prices saw a significant increase of 70.4% sequentially, averaging $4.14 per Mcf [5]. Cost Management - Cost of revenues decreased by 3% to $243.9 million, contributing to improved operating income, primarily due to reduced fleet and transportation costs [8][10]. - Selling, general and administrative expenses rose to $42.5 million, reflecting increased IT system implementation costs [9][10]. Cash Flow and Capital Allocation - Net cash provided by operating activities was $39.9 million, with free cash flow at $7.6 million for Q1 2025 [13][30]. - The company declared a quarterly cash dividend of $0.04 per share, payable on June 10, 2025 [13].
RPC, Inc. Announces Date for First Quarter 2025 Financial Results and Conference Call
Prnewswire· 2025-04-03 21:00
Core Points - RPC, Inc. will release its financial results for Q1 2025 on April 24, 2025, before market opens [1] - A conference call to discuss the financial and operating results will take place on the same day at 9:00 a.m. Eastern Time [1] - The company provides specialized oilfield services and equipment primarily to independent and major oilfield companies in the U.S. and selected international markets [3] Conference Call Details - Participants can join 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] - Interested parties are encouraged to access the webcast link 10-15 minutes prior to the start of the call [2]
RPC Expands Permian Reach With $245M Pintail Acquisition
ZACKS· 2025-04-03 11:40
Group 1: Acquisition Overview - RPC Inc. has acquired Pintail Completions for approximately $245 million, enhancing its presence in the Permian Basin [1][6] - The acquisition is structured with $170 million in cash, $25 million in restricted RPC stock, and a $50 million three-year note [6] Group 2: Strategic Alignment - Pintail Completions is a leading wireline service provider with over 30 active fleets, aligning with RPC's strategy of focusing on high-margin, cash-generating assets [2][3] - The acquisition is expected to enhance RPC's standing in the Midland and Delaware basins, which are the most prolific oil-producing regions in the U.S. [2][3] Group 3: Financial Impact - Pintail generated approximately $409 million in revenues in 2024, indicating a strong market position [3] - The acquisition is anticipated to be accretive to RPC's earnings per share and free cash flow in 2025 [3][4] Group 4: Operational Synergy - Pintail's advanced equipment and reputation for service excellence are expected to create operational synergies for RPC [3][4] - The acquisition allows Pintail to maintain operational independence while benefiting from RPC's platform [5]
RPC, Inc. Expands its Permian Operations with Acquisition of Pintail Completions, a Leading Wireline Completions Services Company
Prnewswire· 2025-04-02 10:45
Core Viewpoint - RPC, Inc. has acquired Pintail Alternative Energy, L.L.C. for approximately $245 million, enhancing its position in the oilfield services sector, particularly in wireline services within the Permian basin [1][7]. Strategic Highlights - The acquisition aligns with RPC's strategy to focus on service lines that yield strong margins and high free cash flow conversion [7]. - Pintail is recognized as a leader in wireline perforation services, complementing RPC's existing service offerings [3][7]. - The acquisition is expected to be accretive to RPC's earnings per share and operating and free cash flow in 2025 [7]. Transaction Details - The purchase price of $245 million consists of approximately $170 million in cash, $25 million in RPC restricted stock, and a $50 million three-year note [8]. - The agreement includes customary post-closing adjustments related to Pintail's working capital [8]. Company Overview - RPC provides a wide range of specialized oilfield services and equipment to independent and major oilfield companies across various U.S. regions and selected international markets [5]. - Pintail operates over 30 active fleets, with its wireline units being among the newest in the industry [7].
RPC(RES) - 2024 Q4 - Annual Report
2025-02-28 19:42
Financial Performance - Revenues for 2024 totaled $1.4 billion, a decrease of 12.5% compared to 2023, primarily due to lower industry activity levels and competitive pricing [139]. - Operating profit for 2024 was $97.5 million, a 60.2% decrease from the prior year, attributed to lower industry activity and reduced fixed cost absorption [140]. - Net income for 2024 was $91.4 million, or $0.43 earnings per share, compared to $195.1 million, or $0.90 earnings per share in 2023 [140]. - Adjusted EBITDA for 2024 was $233.0 million, with an Adjusted EBITDA margin of 16.5%, down from $374.4 million and 23.1% in 2023 [162]. - Net income for the year ended December 31, 2024, was $91.4 million, a decrease of 53.2% compared to $195.1 million in 2023 [168]. - Revenues for 2024 were $1.415 billion, down 12.5% from $1.617 billion in 2023 [168]. - Adjusted EBITDA for 2024 was $233.0 million, a decline of 37.8% from $374.4 million in 2023 [168]. - Free cash flow decreased to $129.5 million in 2024 from $213.8 million in 2023, reflecting a reduction of 39.3% [170]. Cash Flow and Capital Expenditures - Cash provided by operating activities decreased to $349.4 million in 2024 from $394.8 million in 2023 [163]. - Free cash flow decreased to $129.5 million in 2024 from $213.8 million in 2023, primarily due to lower net income and increased capital expenditures [163]. - Capital expenditures totaled $219.9 million in 2024, including the purchase of a new Tier 4 dual-fuel fleet [141]. - Capital expenditures rose to $219.9 million in 2024, up from $181.0 million in 2023, primarily due to the purchase of a new pressure pumping fleet [171]. - The company expects capital expenditures to be between $150 million and $200 million in 2025, focusing on maintenance and growth opportunities [176]. Segment Performance - Technical Services segment revenues were $1.3 billion in 2024, a 12.5% decrease compared to the prior year, driven by lower pressure pumping activity [152]. - Support Services segment revenues decreased by 12.2% in 2024, primarily due to lower activity levels within rental tools [152]. Tax and Financial Position - The effective tax provision rate was 18.9% for 2024, down from 23.9% in the prior year, due to beneficial discrete adjustments on decreased pretax income [160]. - Cash and cash equivalents increased to $326.0 million as of December 31, 2024, compared to $223.3 million in 2023 [169]. Shareholder Returns and Future Outlook - The company has a stock buyback program with 12.8 million shares remaining available for repurchase as of December 31, 2024 [178]. - The company declared a quarterly cash dividend of $0.04 per share, payable on March 10, 2025 [181]. - The company anticipates that long-term demand for oil and natural gas will drive increased activity in its operating basins [183]. Risk Management - The Company is subject to interest rate risk exposure through borrowings on its revolving credit facility, with no outstanding interest-bearing advances as of December 31, 2024 [200]. - The Company is exposed to foreign exchange rate risk; however, the majority of transactions occur in U.S. currency, minimizing material effects on financial results [201]. Business Combinations and Impairment Testing - The Company conducts impairment tests on long-lived assets whenever events indicate that the carrying value may not be recoverable, comparing estimated future undiscounted cash flows to the carrying amount [194]. - The acquisition of a business requires recognizing assets and liabilities at acquisition date fair values, with any excess consideration recorded as goodwill [195]. - Adjustments to the assets acquired and liabilities assumed may occur during the measurement period, which can last up to one year from the acquisition date [196]. - Management must make significant estimates and assumptions during business combinations, including for intangible assets and contingent considerations [198].
RPC Q4 Earnings In Line, Revenues Beat on Lower Costs
ZACKS· 2025-01-31 19:21
Core Viewpoint - RPC Inc. reported fourth-quarter 2024 adjusted earnings of 6 cents per share, matching the Zacks Consensus Estimate, but down from 19 cents in the previous year. Total revenues were $335.4 million, a decrease from $394.5 million year-over-year, yet exceeded the Zacks Consensus Estimate of $317 million [1]. Financial Performance - The in-line quarterly earnings were supported by improved pressure pumping activity and a reduction in the cost of revenues, although these positives were partially offset by lower activity in rental tools and increased selling, general and administrative costs [2]. - Total operating profit for the quarter was $10.5 million, significantly lower than $49.2 million in the year-ago quarter. The Technical Services segment's operating profit was $10.6 million, down from $46.4 million, primarily due to higher direct costs [3][4]. Revenue and Costs - The average oil price during the quarter was $70.59 per barrel, reflecting a 10.1% decline year-over-year, while the average price of natural gas was $2.43 per thousand cubic feet, down 11.3% from the same period in 2023 [5]. - The cost of revenues decreased to $250.2 million from $279.4 million in the prior-year period, while selling, general and administrative expenses rose to $41.2 million from $38.1 million [6]. Capital Expenditure and Financial Position - RPC's total capital expenditure for the quarter was $219.9 million. As of December 31, the company had cash and cash equivalents of $326 million and maintained a debt-free balance sheet [7]. - The company forecasts capital spending to be in the range of $150-$200 million for 2025 [8].
RPC (RES) Q4 Earnings Meet Estimates
ZACKS· 2025-01-30 13:55
分组1 - RPC reported quarterly earnings of $0.06 per share, matching the Zacks Consensus Estimate, but down from $0.19 per share a year ago [1] - The company posted revenues of $335.36 million for the quarter, exceeding the Zacks Consensus Estimate by 5.89%, but down from $394.53 million year-over-year [2] - RPC shares have increased approximately 8.1% since the beginning of the year, outperforming the S&P 500's gain of 2.7% [3] 分组2 - The company's earnings outlook is crucial for investors, with current consensus EPS estimate at $0.07 for the next quarter and $0.34 for the current fiscal year [7] - The Zacks Industry Rank indicates that the Oil and Gas - Field Services sector is in the bottom 16% of over 250 Zacks industries, which may impact stock performance [8] 分组3 - RPC has surpassed consensus EPS estimates only once in the last four quarters, indicating a mixed trend in estimate revisions [6] - The upcoming earnings report from Weatherford, another company in the same industry, is expected to show a year-over-year earnings decline of 25.8% [9]