RPC Inc. (NYSE:RES) Q4 2022 Earnings Conference Call January 25, 2023 9:00 AM ET Company Participants Ben Palmer - President, Chief Executive Officer Mike Schmit - Chief Financial Officer Jim Landers - Vice President, Corporate Services Conference Call Participants Stephen Gengaro - Stifel Don Crist - Johnson Rice John Daniel - Daniel Energy Partners Derek Podhaizer - Barclays Operator Good morning and thank you for joining us for RPC Inc.’s fourth quarter and year-end 2022 financial earnings conference ca ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 2801 Buford Highway, Suite 300, Atlanta, Georgia 30329 (Address of principal executive offices) (Zip code) For the quarterly period ended September 30, 2022 Registrant's telephone number, including area code -- (404) 321-2140 Commission File No. 1-8726 Securities Registered under Section 12(b) of the Act: RPC, INC. (Exact ...

RPC, Inc. (NYSE:RES) Q3 2022 Earnings Conference Call October 26, 2022 9:00 AM ET Company Participants Jim Landers – Vice President-Corporate Services Ben Palmer – President and Chief Executive Officer Mike Schmit – Chief Financial Officer Conference Call Participants Don Crist – Johnson Rice John Daniel – Daniel Energy Partners Simon Wong – Gabelli Andrew Pelisek – Millennium Joel Etzler – Coeli Energy Operator Good morning. And thank you for joining us for RPC, Inc.’s Third Quarter 2022 Financial Earnings ...

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=Part%20I.%20Financial%20Information) [ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents RPC, Inc.'s unaudited consolidated financial statements for Q2 2022 and FY2021, covering key financial statements and detailed accounting notes [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Consolidated balance sheets show RPC's financial position as of June 30, 2022, with increased total assets and equity, driven by higher receivables and retained earnings | Metric | June 30, 2022 (Unaudited) (in millions) | December 31, 2021 (Note 1) (in millions) | | :-------------------------------- | :-------------------------------------- | :--------------------------------------- | | Total Assets | $965.079 | $864.365 | | Total Liabilities | $258.417 | $222.574 | | Total Stockholders' Equity | $706.662 | $641.791 | | Accounts receivable, net | $357.582 | $258.635 | | Retained earnings | $705.133 | $640.936 | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Consolidated statements of operations show a turnaround from net loss in 2021 to net income in 2022, driven by increased revenues and improved operating efficiency | Metric | Three months ended June 30, 2022 (in millions, except per share) | Three months ended June 30, 2021 (in thousands, except per share) | Six months ended June 30, 2022 (in millions, except per share) | Six months ended June 30, 2021 (in millions, except per share) | | :-------------------------------- | :----------------------------------------------- | :------------------------------------------------ | :--------------------------------------------- | :--------------------------------------------- | | Revenues | $375.507 | $188.757 | $660.131 | $371.367 | | Operating income (loss) | $60.415 | $(1.220) | $83.450 | $(11.741) | | Net income (loss) | $46.939 | $(726) | $62.018 | $(10.388) | | Basic Earnings (loss) per share | $0.22 | $0.00 | $0.29 | $(0.05) | | Diluted Earnings (loss) per share | $0.22 | $0.00 | $0.29 | $(0.05) | [Consolidated Statements of Comprehensive Income (Loss)](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Consolidated statements of comprehensive income (loss) show a positive shift from losses in 2021 to income in 2022, driven by improved net income and minor pension/FX adjustments | Metric | Three months ended June 30, 2022 (in millions/thousands) | Three months ended June 30, 2021 (in thousands) | Six months ended June 30, 2022 (in millions/thousands) | Six months ended June 30, 2021 (in millions/thousands) | | :-------------------------------- | :----------------------------------------------- | :---------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Net income (loss) | $46.939 | $(726) | $62.018 | $(10.388) | | Pension adjustment, net of taxes | $195 | $153 | $390 | $306 | | Foreign currency translation | $65 | $69 | $181 | $205 | | Comprehensive income (loss) | $47.199 | $(504) | $62.589 | $(9.877) | [Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) Consolidated statements of stockholders' equity show increased total equity for H1 2022, driven by net income and stock issued for incentive plans, partially offset by repurchases | Metric | December 31, 2021 (in millions, except shares) | June 30, 2022 (in millions, except shares) | | :-------------------------------- | :--------------------------------------------- | :----------------------------------------- | | Total Stockholders' Equity | $641.791 | $706.662 | | Shares Outstanding | 215.629 | 216.662 | | Net Income (Six months) | - | $62.018 | | Stock issued for stock incentive plans, net (Six months) | - | $3.192 | | Stock purchased and retired (Six months) | - | $(0.910) | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Consolidated statements of cash flows show decreased operating cash flow for H1 2022 due to working capital changes, with increased cash used in investing activities for capital expenditures | Metric | Six months ended June 30, 2022 (in millions) | Six months ended June 30, 2021 (in millions) | | :-------------------------------- | :------------------------------------------- | :------------------------------------------- | | Net cash provided by operating activities | $42.853 | $54.866 | | Net cash used for investing activities | $(43.430) | $(17.781) | | Net cash used for financing activities | $(3.623) | $(0.566) | | Net (decrease) increase in cash and cash equivalents | $(4.200) | $36.519 | | Cash and cash equivalents at end of period | $78.233 | $121.015 | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes provide detailed explanations and disclosures for the consolidated financial statements, covering accounting policies, standards, revenue, EPS, stock compensation, segments, credit losses, inventories, commitments, pensions, credit facilities, income taxes, fair value, and comprehensive income [1. GENERAL](index=9&type=section&id=1.%20GENERAL) This note outlines the basis of presentation for the unaudited interim consolidated financial statements, confirming adherence to GAAP and SEC regulations, and states that all necessary adjustments have been included. It also notes that a group including a Board member controls over 50% of the Company's voting power - **GAAP** and **SEC Form 10-Q** instructions guide the preparation of unaudited consolidated financial statements[17](index=17&type=chunk) - A group including a Board member controls **over 50% of the Company's voting power**[20](index=20&type=chunk) [2. RECENT ACCOUNTING STANDARDS](index=9&type=section&id=2.%20RECENT%20ACCOUNTING%20STANDARDS) This note details recently adopted and issued accounting standards. The company adopted ASU No. 2020-04 (Reference Rate Reform) in Q2 2022, replacing LIBOR with Term SOFR, with no material impact. It plans to adopt ASU No. 2021-08 (Business Combinations) prospectively from January 1, 2023, also not expecting a material impact - RPC adopted **ASU No. 2020-04 (Reference Rate Reform)** in Q2 2022, replacing LIBOR with Term SOFR, with no material financial impact[21](index=21&type=chunk) - The Company plans to adopt **ASU No. 2021-08 (Business Combinations)** from January 1, 2023, with no expected material impact[22](index=22&type=chunk) [3. REVENUES](index=11&type=section&id=3.%20REVENUES) This note describes RPC's revenue recognition policies, primarily from oilfield services, which are recognized over time using the output method. Services are categorized into Technical Services (well-site) and Support Services (off-well-site). Contract terms are generally short-term, with invoicing upon completion and expected collection within 30-60 days. Unbilled trade receivables increased significantly to $92.8 million as of June 30, 2022 - RPC generates contract revenues primarily from **specialized oilfield services**, recognized over time using the output method[24](index=24&type=chunk)[30](index=30&type=chunk) - Services are categorized into **Technical Services** (e.g., pressure pumping) and **Support Services** (e.g., rental tools)[26](index=26&type=chunk)[27](index=27&type=chunk)[29](index=29&type=chunk) | Metric | June 30, 2022 (in millions) | December 31, 2021 (in millions) | | :-------------------- | :-------------------------- | :-------------------------- | | Unbilled trade receivables | $92.756 | $50.370 | [4. EARNINGS PER SHARE](index=12&type=section&id=4.%20EARNINGS%20PER%20SHARE) This note details the calculation of basic and diluted earnings per share, accounting for participating securities (restricted shares with dividend rights). Net income used in EPS calculation for the six months ended June 30, 2022, was $61.1 million, resulting in $0.29 per share - **Basic and diluted EPS** are calculated by dividing net income by weighted average shares outstanding, adjusted for participating securities[33](index=33&type=chunk) | Metric | Three months ended June 30, 2022 (in millions/shares) | Three months ended June 30, 2021 (in thousands/shares) | Six months ended June 30, 2022 (in millions/shares) | Six months ended June 30, 2021 (in millions/shares) | | :-------------------------------- | :---------------------------------------------------- | :------------------------------------------------

RPC, Inc. (NYSE:RES) Q2 2022 Earnings Conference Call July 27, 2022 9:00 AM ET Company Participants James Landers - VP, Corporate Finance Ben Palmer - CEO, President & Director Michael Schmit - CFO & Corporate Secretary Conference Call Participants Stephen Gengaro - Stifel, Nicolaus & Company John Daniel - Daniel Energy Partners Donald Crist - Johnson Rice & Company Joel Etzler - Coeli Energy Operator Good morning, and thank you for joining us for RPC, Inc.'s Second Quarter 2020 Financial Earnings Conferenc ...

| --- | --- | |-------------------------------------------|-------| | | | | | | | RPC, Inc. | | | | | | Second Quarter 2022 Financial Summary and | | | Corporate Overview | | | July 27, 2022 | | | | | FORWARD LOOKING STATEMENTS Certain statements and information included in this discussion constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including all statements that look forward in time or express management's beliefs, expectations or hopes ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2022 Commission File No. 1-8726 RPC, INC. (Exact name of registrant as specified in its charter) Delaware 58-1550825 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification Number) 2801 Buford Highway, Suite 300, Atlanta, Georgia 30329 (Address ...

RPC, Inc. (NYSE:RES) Q1 2022 Earnings Conference Call April 27, 2022 9:00 AM ET Company Participants James Landers - VP, Corporate Finance Richard Hubbell - CEO, President & Director Ben Palmer - VP, CFO & Corporate Secretary Conference Call Participants John Daniel - Daniel Energy Operator Good morning, and thank you for joining us for RPC, Inc.'s First Quarter 2022 Financial Earnings Conference Call. Today's call will be hosted by Rick Hubbell, President and CEO; and Ben Palmer, Chief Financial Officer. A ...

[PART I](index=3&type=section&id=PART%20I) [Item 1. Business](index=5&type=section&id=Item%201.%20Business) RPC, Inc. is a holding company providing specialized oilfield services and equipment primarily to oil and gas companies in the U.S. and select international markets, with performance tied to commodity prices and drilling activity - RPC, Inc. operates as a holding company for several oilfield services companies, including Cudd Energy Services and Patterson Services, organized into Technical and Support Services segments[9](index=9&type=chunk)[10](index=10&type=chunk) - In 2021, an estimated **65% of revenues** were related to oil-directed activities, while **35%** were related to natural gas[11](index=11&type=chunk) - International revenues accounted for **4% of consolidated revenues** in 2021, a decrease from 6% in 2020, primarily due to lower activity in Algeria and Saudi Arabia[44](index=44&type=chunk) - The company's primary growth strategy is to generate long-term returns through effective capital management, focusing on organic growth, strategic investments, and selective acquisitions[46](index=46&type=chunk)[47](index=47&type=chunk) [Business Segments](index=5&type=section&id=Business%20Segments) RPC's operations are divided into Technical Services and Support Services, with Technical Services, particularly Pressure Pumping and Downhole Tools, being the primary revenue driver in 2021 Revenue Contribution by Key Service Lines (2019-2021) | Service Line | 2021 Revenue % | 2020 Revenue % | 2019 Revenue % | | :--- | :--- | :--- | :--- | | Pressure Pumping | 43% | 37% | 42% | | Downhole Tools | 29% | 34% | 34% | | Coiled Tubing | 10% | 9% | 7% | | Nitrogen | 4% | 5% | 4% | | Rental Tools (Support) | 4% | 4% | 4% | - Technical Services include capital and personnel-intensive services performed directly at the customer's well, such as pressure pumping, downhole tools, and coiled tubing[12](index=12&type=chunk) - Support Services primarily involve equipment rentals (like drill pipe) and consulting services offered off the well site, with demand driven by customer drilling activity levels[13](index=13&type=chunk) [Industry](index=11&type=section&id=Industry) The U.S. oil and gas industry, RPC's primary market, is highly volatile and has shifted towards unconventional wells, which comprise over 80% of U.S. drilling and require more of RPC's specialized services - The U.S. domestic rig count rose by approximately **138%** between August 2020 and early Q1 2022, recovering from a historic low[37](index=37&type=chunk) - U.S. well completions, a key activity driver for RPC, increased by **32.8%** in 2021 to **9,810 wells**, compared to 7,387 in 2020[38](index=38&type=chunk) - Unconventional wells, which require more of RPC's services like pressure pumping and coiled tubing, have comprised over **80% of U.S. domestic drilling** since 2016, a trend RPC views as a permanent positive driver[43](index=43&type=chunk) [Competition](index=15&type=section&id=Competition) RPC operates in a highly competitive oilfield services industry, competing on factors like equipment availability, service quality, safety reputation, technical proficiency, and price against a range of providers - The oilfield services industry is highly competitive, with principal competitive factors being product availability, service quality, safety, technical skill, and price[53](index=53&type=chunk) - Competitors range from dominant global players like Halliburton, Baker Hughes, and Schlumberger to more similarly sized peers such as Liberty Oilfield Services and Patterson-UTI Energy[54](index=54&type=chunk) [Human Capital](index=15&type=section&id=Human%20Capital) RPC's employee count increased to 2,250 in 2021, reflecting business cyclicality, with the company focusing on talent management through diversity, development, compensation, and safety programs Employee Headcount | Year End | Employees | | :--- | :--- | | 2021 | 2,250 | | 2020 | 2,005 | - Key human capital objectives include fostering diversity, employee development, providing competitive compensation and benefits, and ensuring workplace safety[55](index=55&type=chunk) - The company is investing in technology to reduce the number of employees on a job location and minimize their exposure to safety hazards[62](index=62&type=chunk) [Item 1A. Risk Factors](index=19&type=section&id=Item%201A.%20Risk%20Factors) RPC faces significant risks primarily related to the volatility of oil and natural gas prices, competition, labor shortages, and the controlling ownership structure - Demand for services is highly dependent on volatile oil and natural gas prices, which affect customers' capital investment decisions[72](index=72&type=chunk) - The company operates in a highly competitive industry, and its ability to compete depends on service quality, availability, safety, and price[80](index=80&type=chunk) - A controlling group, including the Chairman of the Board, holds over **50% of the company's voting power**, effectively controlling operations and limiting the voice of public stockholders[96](index=96&type=chunk)[97](index=97&type=chunk) - The business is exposed to risk from potential shortages of skilled labor, which could impair growth and profitability[83](index=83&type=chunk) - The COVID-19 pandemic previously caused unprecedented disruption and could continue to negatively impact financial results if conditions worsen[89](index=89&type=chunk) [Item 2. Properties](index=28&type=section&id=Item%202.%20Properties) RPC owns or leases approximately 65 offices and operating facilities, with its corporate headquarters in Atlanta, Georgia, being leased and major operational hubs located across key oil and gas regions - The company owns and leases approximately **65 facilities**, with its principal executive offices in Atlanta, Georgia being leased[106](index=106&type=chunk) - Major owned operational hubs are located in Texas, Louisiana, Oklahoma, Wyoming, and Utah[107](index=107&type=chunk) - Key leased facilities for operations, sales, and administration are in Midland and The Woodlands, Texas[108](index=108&type=chunk) [Item 3. Legal Proceedings](index=28&type=section&id=Item%203.%20Legal%20Proceedings) RPC is involved in various routine legal proceedings, such as commercial and personal injury claims, which management believes will not materially adversely affect its financial condition - The company is party to routine legal proceedings, primarily involving commercial claims, workers' compensation, and personal injury[108](index=108&type=chunk) - Management believes the outcome of pending lawsuits and claims, even if adverse, would not materially impact the company's financial condition[108](index=108&type=chunk) [PART II](index=30&type=section&id=PART%20II) [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=30&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) RPC's common stock trades on the NYSE under RES, with 216,586,626 shares outstanding as of February 18, 2022, and 8,248,184 shares remaining for repurchase under its program - RPC's common stock is listed on the NYSE under the symbol RES, with **216,586,626 shares outstanding** as of February 18, 2022[115](index=115&type=chunk) - No shares were repurchased during the fourth quarter of 2021. As of December 31, 2021, **8,248,184 shares** were available for repurchase under the existing program[117](index=117&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2021, RPC's financial performance improved significantly with revenues increasing 44.6% to $864.9 million and a return to profitability, driven by higher customer activity and stronger commodity prices [Outlook](index=34&type=section&id=Outlook) RPC's outlook is favorable, supported by a significant recovery in commodity prices and customer activity, with well completions rising 33% in 2021 and anticipated increased drilling - Well completions, a more meaningful indicator for RPC than rig count, increased by approximately **33%** in 2021 compared to 2020[138](index=138&type=chunk) - The company believes recent price increases in oil, natural gas, and natural gas liquids have encouraged customers to increase drilling and completion activities[139](index=139&type=chunk) - RPC believes the competitive market for its services will improve in the near term due to realized efficiency gains, the exit of some competitors, and increased customer activity[141](index=141&type=chunk) [Results of Operations](index=37&type=section&id=Results%20of%20Operations) For the year ended December 31, 2021, RPC's revenues increased 44.6% to $864.9 million, resulting in an operating income of $16.3 million and net income of $7.2 million, a significant turnaround from the prior year's loss Consolidated Financial Highlights (2019-2021) | Metric (in thousands, except per share) | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | **Consolidated Revenues** | **$864,929** | **$598,302** | **$1,222,409** | | Technical Services Revenues | $815,046 | $556,488 | $1,145,554 | | Support Services Revenues | $49,883 | $41,814 | $76,855 | | **Consolidated Operating Income (Loss)** | **$16,291** | **$(309,635)** | **$(114,288)** | | **Net Income (Loss)** | **$7,217** | **$(212,192)** | **$(87,111)** | | **Diluted Earnings (Loss) Per Share** | **$0.03** | **$(1.00)** | **$(0.41)** | - Revenues in 2021 increased by **$266.6 million (44.6%)** compared to 2020, primarily due to higher activity levels and improved pricing as the market recovered from COVID-19 shutdowns[145](index=145&type=chunk) - Cost of revenues as a percentage of revenues decreased from **80.4% in 2020 to 76.7% in 2021** due to better leverage of direct costs and improved pricing[146](index=146&type=chunk) - The significant improvement in net income for 2021 was driven by higher profitability and the absence of the large impairment charges (**$217.5 million**) recorded in 2020[150](index=150&type=chunk)[154](index=154&type=chunk) [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) RPC maintained a strong liquidity position with $82.4 million in cash at year-end 2021, no outstanding debt, and projected capital expenditures of $120 million for 2022 Cash and Cash Flow Summary (in thousands) | Metric | 2021 | 2020 | | :--- | :--- | :--- | | Cash and cash equivalents (end of period) | $82,433 | $84,496 | | Net cash provided by operating activities | $47,719 | $77,958 | | Net cash used for investing activities | $(47,631) | $(42,659) | | Net cash used for financing activities | $(2,151) | $(826) | - The company's financial condition remains strong, with sufficient liquidity from cash on hand to meet requirements for at least the next twelve months without needing its credit facility[159](index=159&type=chunk)[161](index=161&type=chunk) - Capital expenditures are expected to increase to approximately **$120 million in 2022**, up from $67.6 million in 2021, for maintenance and selective growth[163](index=163&type=chunk) - As of December 31, 2021, there were no outstanding borrowings under the **$100 million revolving credit facility**, with **$83.7 million available**[162](index=162&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=50&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) The consolidated financial statements for 2021 show total assets increased to $864.4 million, total liabilities rose to $222.6 million, and the company achieved a net income of $7.2 million [Consolidated Balance Sheets](index=50&type=section&id=Consolidated%20Balance%20Sheets) As of December 31, 2021, RPC's total assets increased to $864.4 million, primarily due to higher accounts receivable, while total liabilities rose to $222.6 million Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 31, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | Cash and cash equivalents | $82,433 | $84,496 | | Accounts receivable, net | $258,635 | $161,771 | | Total current assets | $492,010 | $428,359 | | Property, plant and equipment, net | $254,408 | $264,411 | | **Total assets** | **$864,365** | **$790,505** | | Total current liabilities | $130,849 | $79,565 | | **Total liabilities** | **$222,574** | **$158,938** | | **Total stockholders' equity** | **$641,791** | **$631,567** | [Consolidated Statements of Operations](index=51&type=section&id=Consolidated%20Statements%20of%20Operations) For 2021, RPC reported revenues of $864.9 million, a 44.6% increase, achieving an operating income of $16.3 million and a net income of $7.2 million, reversing the prior year's loss Consolidated Statement of Operations Summary (in thousands) | Account | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | Revenues | $864,929 | $598,302 | $1,222,409 | | Cost of revenues | $663,262 | $480,739 | $919,595 | | Operating income (loss) | $16,291 | $(309,635) | $(114,288) | | Income (loss) before income taxes | $16,448 | $(309,431) | $(113,101) | | **Net income (loss)** | **$7,217** | **$(212,192)** | **$(87,111)** | | **Diluted earnings (loss) per share** | **$0.03** | **$(1.00)** | **$(0.41)** | [Consolidated Statements of Cash Flows](index=54&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) In 2021, RPC generated $47.7 million in cash from operating activities, used $47.6 million for investing, and saw cash and cash equivalents decrease slightly to $82.4 million at year-end Consolidated Statement of Cash Flows Summary (in thousands) | Account | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $47,719 | $77,958 | $209,141 | | Net cash used for investing activities | $(47,631) | $(42,659) | $(235,788) | | Net cash used for financing activities | $(2,151) | $(826) | $(39,592) | | Net (decrease) increase in cash | $(2,063) | $34,473 | $(66,239) | | **Cash and cash equivalents at end of period** | **$82,433** | **$84,496** | **$50,023** | [Note 15: Business Segment and Entity Wide Disclosures](index=88&type=section&id=Note%2015%3A%20Business%20Segment%20and%20Entity%20Wide%20Disclosures) In 2021, Technical Services generated $815.0 million in revenue with a $24.4 million operating profit, while the United States accounted for 96.4% of total revenues Segment Revenues and Operating Profit (Loss) - 2021 (in thousands) | Segment | Revenues | Operating Profit (Loss) | | :--- | :--- | :--- | | Technical Services | $815,046 | $24,434 | | Support Services | $49,883 | $(5,725) | | Corporate | — | $(13,300) | Revenues by Major Service Line - 2021 (in thousands) | Service Line | Revenues | | :--- | :--- | | Pressure Pumping | $369,028 | | Downhole Tools | $247,019 | | Coiled Tubing | $88,946 | Revenues by Geography (in thousands) | Region | 2021 | 2020 | | :--- | :--- | :--- | | United States | $833,686 | $562,390 | | International | $31,243 | $35,912 | | **Total** | **$864,929** | **$598,302** | [Item 9A. Controls and Procedures](index=96&type=section&id=Item%209A.%20Controls%20and%20Procedures) As of December 31, 2021, RPC's management concluded that disclosure controls and internal control over financial reporting were effective, a conclusion affirmed by an unqualified audit opinion - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of December 31, 2021[360](index=360&type=chunk) - The independent registered public accounting firm, Grant Thornton LLP, audited the effectiveness of internal control over financial reporting and issued an unqualified opinion[361](index=361&type=chunk) [PART III](index=97&type=section&id=PART%20III) [Items 10-14 (Directors, Executive Compensation, Security Ownership, etc.)](index=97&type=section&id=Items%2010-14%20%28Directors%2C%20Executive%20Compensation%2C%20Security%20Ownership%2C%20etc.%29) Information for Items 10 through 14, covering directors, executive compensation, and security ownership, is incorporated by reference from the company's 2022 Proxy Statement - Detailed information regarding directors, executive compensation, stock ownership, and related party transactions is incorporated by reference from the 2022 Proxy Statement[366](index=366&type=chunk)[371](index=371&type=chunk)[372](index=372&type=chunk) [PART IV](index=98&type=section&id=PART%20IV) [Item 15. Exhibits and Financial Statement Schedules](index=98&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all consolidated financial statements, schedules, and exhibits filed as part of the Form 10-K report, including corporate documents and SEC-required certifications - This section contains the index of all financial statements, schedules, and exhibits filed with the 10-K report[380](index=380&type=chunk)

Financial Data and Key Metrics Changes - For Q4 2021, revenues increased to $268.3 million from $148.6 million in Q4 2020, reflecting higher customer activity and improved pricing [10] - Operating profit for Q4 was $20.1 million compared to an adjusted operating loss of $11.3 million in the same quarter of the prior year [10] - EBITDA for Q4 was $39.4 million compared to adjusted EBITDA of $7.8 million in Q4 2020 [11] - Diluted earnings per share for Q4 were $0.06 compared to an adjusted loss per share of $0.03 in the same quarter of the prior year [11] - Cost of revenues was $200.6 million or 74.8% of revenues, down from 79.3% in Q4 2020 [12] Business Line Data and Key Metrics Changes - Technical Services segment revenues for Q4 were $254.4 million, an 83.1% increase from $139 million in Q4 2020, with an operating profit of $20.5 million compared to an operating loss of $11.3 million [14] - Support Services segment revenues for Q4 were $13.8 million, a 43% increase from $9.7 million in Q4 2020, with an operating loss of $373,000 compared to a loss of $2.6 million in the prior year [15] Market Data and Key Metrics Changes - The average U.S. domestic rig count and oil prices both increased over 80% compared to Q4 2020, contributing to improved industry conditions [7] Company Strategy and Development Direction - The company plans to reactivate idle pressure pumping equipment as market pricing and customer demand improve, with a focus on upgrading equipment fleets [22] - Approximately two-thirds of the active horizontal pressure pumping fleet is ESG friendly, indicating a commitment to sustainability [22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the operating environment and financial results, expecting continued improvements in 2022 despite potential supply chain and personnel challenges [28][59] - The company is focused on generating sufficient cash flow and may consider reinitiating dividends or stock buybacks in the future [70] Other Important Information - Capital expenditures for Q4 were $22.7 million, with full-year 2021 capital expenditures totaling $67.6 million; estimated capital expenditures for 2022 are approximately $125 million [20] Q&A Session Summary Question: Can you speak about pressure pumping pricing? - Management noted net pricing improvements and increased revenue to cover rising costs, with expectations for continued pricing traction [26][27] Question: Is any of the 2022 CapEx targeted towards reactivation of additional fleet? - Management indicated that the first half of 2022 would likely maintain a constant fleet count, assessing the activation of additional fleets based on demand [30] Question: What is the breakdown of product lines? - For Q4 2021, pressure pumping accounted for 46.8% of revenues, with other segments like Thru Tubing Solutions at 26.0% and Coiled Tubing at 10.1% [45] Question: Have there been disruptions due to sand delivery issues? - Management confirmed no job delays due to sand delivery disruptions, although there are risks associated with logistics [51] Question: What is the current contract status and pricing environment? - The majority of fleets are on spot work, with a mix of longer-term contracts, and management is pleased with the current pricing mix [67][68]