RPC Q4 Earnings In Line, Revenues Beat on Lower Costs

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].