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

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

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

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

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

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

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

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)