RPC(US:RES) Prnewswire·2025-04-24 10:45Core Viewpoint - RPC, Inc. reported its first quarter 2025 results, highlighting a stable performance across most service lines and the successful acquisition of Pintail Completions, which is expected to enhance RPC's service offerings in the Permian region [4][6]. Financial Performance - Revenues for Q1 2025 were $332.9 million, a decrease of 1% from Q4 2024, with pressure pumping revenues remaining flat and other service lines combined decreasing by 1% [6][14]. - Net income was $12 million, down 6% sequentially, with diluted EPS at $0.06, reflecting a decrease in net income margin to 3.6% [10][11]. - EBITDA increased by 6% sequentially to $48.9 million, with an EBITDA margin of 14.7%, up 100 basis points from the previous quarter [11][12]. Acquisition Details - The acquisition of Pintail Completions, effective April 1, 2025, is expected to bring significant operational benefits, as Pintail generated over $400 million in revenues in 2024 and is recognized for its strong profitability and customer service [6][12]. Industry Context - The U.S. rig count averaged 588 in Q1 2025, a slight increase of 0.3% from Q4 2024, but down 5.6% year-over-year [5]. - Oil prices averaged $71.93 per barrel, a 1.9% increase from the previous quarter but a 7.1% decrease compared to the same quarter last year [5]. - Natural gas prices saw a significant increase of 70.4% sequentially, averaging $4.14 per Mcf [5]. Cost Management - Cost of revenues decreased by 3% to $243.9 million, contributing to improved operating income, primarily due to reduced fleet and transportation costs [8][10]. - Selling, general and administrative expenses rose to $42.5 million, reflecting increased IT system implementation costs [9][10]. Cash Flow and Capital Allocation - Net cash provided by operating activities was $39.9 million, with free cash flow at $7.6 million for Q1 2025 [13][30]. - The company declared a quarterly cash dividend of $0.04 per share, payable on June 10, 2025 [13].