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RPC(RES) - 2024 Q3 - Quarterly Report
RPCRPC(US:RES)2024-10-24 17:56

Financial Performance - Total revenues for Q3 2024 were $337.7 million, an increase of 2.2% compared to Q3 2023, driven by higher pressure pumping activity levels [73]. - Income before income taxes for Q3 2024 was $23.5 million, down from $24.9 million in Q3 2023 [73]. - Revenues for the first nine months of 2024 were $1.1 billion, a decrease of 11.7% compared to the same period in 2023, primarily due to lower industry activity levels [87]. - Technical Services segment revenues for the first nine months of 2024 decreased by 11.7%, with operating income dropping to $78.5 million from $199.5 million in the prior year [89]. - Cost of revenues for Q3 2024 increased by 3.5% to $247.5 million, driven by higher activity levels and associated expenses [84]. - The income tax provision was $20.1 million for the nine months ended September 30, 2024, down from $48.8 million in 2023, with an effective tax rate decrease to 20.3% from 24.0% [94]. Capital Expenditures - Capital expenditures for the nine months ended September 30, 2024, totaled $179.5 million, with expectations for 2024 to be between $200 million and $250 million [79]. - Capital expenditures were $179.5 million for the nine months ended September 30, 2024, compared to $148.8 million for the same period in 2023, reflecting an increase of approximately 20.6% [96]. - The company expects capital expenditures to be between $200 million and $250 million in 2024, focusing on maintenance and growth opportunities [100]. Expenses - Selling, general and administrative expenses decreased to $37.7 million in Q3 2024, down from $42.0 million in Q3 2023, primarily due to lower incentive compensation [85]. - Selling, general and administrative expenses decreased to $115.2 million for the nine months ended September 30, 2024, from $127.8 million for the same period in 2023, a reduction of approximately 9.9% [91]. - Depreciation and amortization increased by 23.8% to $97.4 million for the nine months ended September 30, 2024, compared to $78.7 million for the same period in 2023 [91]. - Interest expense rose to $594 thousand for the nine months ended September 30, 2024, compared to $246 thousand for the same period in 2023, while interest income increased to $9.8 million from $6.0 million [93]. Liquidity and Cash Flow - Cash and cash equivalents increased by $53.6 million to $276.9 million as of September 30, 2024, compared to $223.3 million as of December 31, 2023 [95]. - Net cash provided by operating activities decreased by $43.9 million to $255.2 million for the nine months ended September 30, 2024, compared to $299.1 million for the same period in 2023 [95]. - The company has sufficient liquidity from existing cash and cash equivalents to meet requirements for at least the next twelve months [112]. - As of September 30, 2024, the company had no outstanding borrowings under its $100 million revolving credit facility, with $83.5 million available [99]. - As of September 30, 2024, RPC had no outstanding interest-bearing advances on its credit facility, which bears interest at a floating rate [116]. Market Outlook - RPC, Inc. anticipates that international revenues will remain below 10% of consolidated revenues in the foreseeable future [112]. - The company believes that oil prices will stay at or above levels sufficient to motivate customers to maintain drilling and completion activities [112]. - RPC expects that natural gas-directed drilling will increase in the future due to favorable long-term market dynamics [112]. - The company acknowledges potential risks from the volatility of oil and natural gas prices, which could affect drilling activity and demand for services [113]. - RPC recognizes the oversupplied nature of the oilfield services market, which may impact pricing and competition [113]. Shareholder Returns - The company intends to continue paying cash dividends to common stockholders, subject to industry conditions and financial performance [112]. - The company has a stock buyback program to repurchase up to 49,578,125 shares, with 12,768,870 shares remaining available for repurchase as of September 30, 2024 [102]. Operational Metrics - Average domestic rig count for Q3 2024 was 586, a decrease of 9.7% compared to the same period in 2023 [82]. - Average oil price per barrel in Q3 2024 was $76.57, a decrease of 6.8% compared to Q3 2023, while average natural gas price per thousand cubic feet was $2.10, down 18.9% [82]. - The majority of RPC's transactions occur in U.S. currency, minimizing the impact of foreign exchange rate changes on its financial condition [116].