Core Insights - RPC, Inc. reported a 26% sequential increase in revenues for Q2 2025, totaling $420.8 million, driven by the acquisition of Pintail Completions, despite challenges in the pressure pumping service line [6][10][12] - The oilfield services market is facing challenges due to lower commodity prices and macroeconomic uncertainties, but RPC's diversified service lines and customer base provided some resilience [5][10] Financial Performance - Revenues for pressure pumping, RPC's largest service line, decreased by 18%, while other service lines, excluding Pintail's wireline, saw increases [6][10] - Net income was reported at $10.1 million, down 16% sequentially, with diluted EPS at $0.05, reflecting a net income margin decrease of 120 basis points to 2.4% [10][12] - Adjusted net income increased by 46% sequentially to $17.5 million, with adjusted diluted EPS at $0.08, and an adjusted net income margin increase of 60 basis points to 4.2% [10][13] Cost and Expenses - Cost of revenues increased by 30% to $317.7 million, primarily due to the addition of Pintail, offset by lower pressure pumping activity [7][10] - Selling, general and administrative expenses decreased to $40.8 million, down from $42.5 million, with a reduction in employment costs contributing to a decrease in SG&A as a percentage of revenues [8][10] Acquisition Impact - The acquisition of Pintail Completions, effective April 1, 2025, contributed $98.9 million in revenues, significantly impacting RPC's financial results [10][12] - Acquisition-related employment costs were approximately $6.6 million during Q2 2025, with total expected costs of $78.6 million to be recognized over 12 quarters [9][10] Industry Context - The average U.S. rig count decreased to 571 in Q2 2025, down 2.9% from Q1 2025 and 5.3% year-over-year [5][10] - Oil prices averaged $64.74 per barrel, a decline of 10% sequentially and 20.8% year-over-year, while natural gas prices fell by 22.7% sequentially to $3.20 per Mcf [5][10] Cash Flow and Capital Allocation - Cash and cash equivalents at the end of Q2 2025 were $162.1 million, with net cash provided by operating activities at $92.9 million and free cash flow at $17.6 million year-to-date [14][15] - The company declared a quarterly cash dividend of $0.04 per share, payable on September 10, 2025 [15]

Proposed Merger (Nasdaq: HSON) (Nasdaq: STRR, STRRP) PARTICIPANTS IN THE SOLICITATION Hudson, Star, and their respective directors and certain of their executive officers and employees may be considered participants in the solicitation of proxies from Hudson's stockholders with respect to the proposed merger transaction under the rules of the SEC. Information about the directors and executive officers of Hudson is set forth in its Annual Report on Form 10-K for the year ended December 31, 2024, which was fi ...