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]

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].

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].

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].

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]

Financial Performance - Revenues for Q4 2024 were $335.4 million, a decrease of 1% sequentially, and down 13% year-over-year to $1.4 billion[8][11] - Net income for Q4 2024 was $12.8 million, down 32% sequentially, with diluted EPS of $0.06 and a net income margin of 3.8%[8][14] - Adjusted EBITDA for Q4 2024 was $46.1 million, down 17% sequentially, with an adjusted EBITDA margin of 13.7%[8][15] - Revenues for Q4 2024 were $335,361 thousand, a decrease of 15% compared to $394,531 thousand in Q4 2023[29] - Operating income for Q4 2024 was $10,517 thousand, down from $97,538 thousand in Q4 2023, representing a decline of 89%[29] - Net income for the year ended December 31, 2024, was $91,444 thousand, a decrease of 53% from $195,113 thousand in 2023[31] - Adjusted net income for the year ended December 31, 2024, was $91,444 thousand, compared to $209,029 thousand in 2023, indicating a decline of 56%[37] - Basic earnings per share for Q4 2024 were $0.06, down from $0.19 in Q4 2023[29] - Net income for Q4 2024 was $12,762,000, a decrease of 32.5% from $18,796,000 in Q3 2024 and a decrease of 68.3% from $40,259,000 in Q4 2023[38] - Adjusted EBITDA for Q4 2024 was $46,071,000, down 16.6% from $55,243,000 in Q3 2024 and down 42.0% from $79,459,000 in Q4 2023[38] - Revenues for Q4 2024 were $335,361,000, a slight decrease of 0.4% from $337,652,000 in Q3 2024 and a decrease of 15.0% from $394,531,000 in Q4 2023[38] - Net income margin for Q4 2024 was 3.8%, down from 5.6% in Q3 2024 and down from 10.2% in Q4 2023[38] - Adjusted EBITDA margin for Q4 2024 was 13.7%, down from 16.4% in Q3 2024 and down from 20.1% in Q4 2023[38] - Net cash provided by operating activities for the year ended December 31, 2024, was $349,386,000, a decrease of 11.5% from $394,763,000 in 2023[39] - Free cash flow for the year ended December 31, 2024, was $129,456,000, a decrease of 39.4% from $213,758,000 in 2023[39] Capital Expenditures and Investments - The company plans to invest between $150 million to $200 million in capital spending in 2025, focusing on innovation and new product development[9][27] - Capital expenditures for the year were $219,930 thousand, an increase from $181,005 thousand in 2023[31] - Capital expenditures for the year ended December 31, 2024, were $219,930,000, an increase of 21.5% from $181,005,000 in 2023[39] Cash and Debt Position - RPC remains debt-free with over $300 million in cash at year-end 2024, allowing for funding of organic investments and potential acquisitions[9][27] - Cash and cash equivalents increased to $325,975 thousand at the end of 2024, up from $223,310 thousand at the end of 2023[30] - Total assets rose to $1,386,489 thousand in 2024, compared to $1,286,845 thousand in 2023, reflecting a growth of 7.8%[30] - Total liabilities increased to $308,198 thousand in 2024, compared to $264,332 thousand in 2023, marking a rise of 16.6%[30] - The company reported a net cash provided by operating activities of $349,386 thousand for the year, down from $394,763 thousand in 2023[31] Market Conditions - The average U.S. rig count remained unchanged at 586 in Q4 2024, down 5.8% from 622 in Q4 2023[10] - Oil prices averaged $70.59 per barrel in Q4 2024, a decrease of 7.8% sequentially and down 10.1% year-over-year[10] Shareholder Actions - The company repurchased $9.9 million of common stock in 2024, including $7.5 million under its buyback program[8][19] Product Development - Pressure pumping revenues increased by 3% sequentially, driven by improved asset utilization, while other service lines experienced seasonal softness[11][12] - New product launches in downhole tools are expected to contribute more significantly in 2025 following early positive results in 2024[7][27]

Core Insights - RPC, Inc. reported a slight sequential improvement in pressure pumping results for Q4 2024, although overall business activity was soft due to typical lower customer activity in the fourth quarter [4] - The company is optimistic about new products and services in downhole tools gaining traction in 2025, with planned capital spending between $150 million and $200 million [4][20] - RPC maintains a strong balance sheet with over $300 million in cash at year-end, allowing for organic investments, potential acquisitions, and capital returns to investors [4][11] Financial Performance - Q4 2024 revenues were $335.4 million, down 1% sequentially, with pressure pumping revenues increasing by 3% while other service lines decreased by 3% [6][13] - Net income for Q4 2024 was $12.8 million, a decrease of 32% sequentially, with diluted EPS at $0.06 [9][13] - Adjusted EBITDA for Q4 2024 was $46.1 million, down 17% sequentially, with an adjusted EBITDA margin of 13.7% [10][13] Industry Data - The average U.S. rig count remained unchanged at 586 in Q4 2024, down from 622 in Q4 2023, reflecting a 5.8% decrease [5] - Oil prices averaged $70.59 per barrel in Q4 2024, down 7.8% from $76.57 in Q3 2024 and down 10.1% from $78.52 in Q4 2023 [5] - Natural gas prices increased by 15.7% sequentially to $2.43 per Mcf, but decreased by 11.3% year-over-year [5] Operational Insights - Cost of revenues for Q4 2024 was $250.2 million, up 1% from the previous quarter, primarily due to higher insurance costs [7][13] - Selling, general and administrative expenses increased to $41.2 million, representing 12.3% of revenues, up from 11.2% in the previous quarter [8][13] - The company reported a net cash flow from operating activities of $349.4 million and free cash flow of $129.5 million for the full year 2024 [12][13]

Core Viewpoint - RPC, Inc. is set to release its financial results for the fourth quarter of 2024 on January 30, 2025, before the market opens, followed by a conference call to discuss these results [1]. Group 1: Financial Results Announcement - The financial results for the fourth quarter ended December 31, 2024, will be released on January 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 (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 the exploration, production, and development of oil and gas properties across the United States and selected international markets [3].

I first spoke about RPC, Inc. (NYSE: RES ) on August 5 of this year , and since then, the firm has issued its Q3 2024 results, so I am re-evaluating the firm. This re-evaluation will show that despite the market continuingAn economics graduate with a passion for financial history; I apply my knowledge to markets in an effort to hopelessly predict trends and spot value. All opinions are my own and should not be taken seriously.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in ...

RPC Inc. (RES) reported third-quarter 2024 adjusted earnings of 9 cents per share, which missed the Zacks Consensus Estimate of 14 cents. The bottom line improved from the year-ago figure of 8 cents. Total quarterly revenues were $337.7 million, up from the year-ago quarter's $330.4 million. The top line also missed the Zacks Consensus Estimate of $359 million. The lower-than-expected quarterly earnings were primarily due to lower utilization and pricing levels in pressure pumping, along with rising cost of ...