RPC(US:RES) Prnewswire·2025-01-30 11:45Core 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]