RPC (NYSE:RES) Q4 2025 Earnings call February 03, 2026 09:00 AM ET Company ParticipantsBen Palmer - President and CEOJohn Daniel - Founder and Managing PartnerMike Schmidt - CFOConference Call ParticipantsCharles Minervino - Equity Research AnalystDerek Podhaizer - Senior Equity Research AnalystDon Crist - Equity Research AnalystOperatorGood morning, and thank you for joining us for RPC Inc.'s fourth quarter 2025 earnings conference call. Today's call will be hosted by Ben Palmer, President and CEO, and Mik ...

Financial Data and Key Metrics Changes - Revenues decreased by 5% to $426 million compared to Q3 2025 [9] - Adjusted diluted EPS was $0.04 in the fourth quarter, with adjustments totaling $0.06 related to wireline cables and acquisition-related costs [11] - Adjusted EBITDA was $55.1 million, down from $67.8 million, with an adjusted EBITDA margin decreasing by 230 basis points to 12.9% [12] Business Line Data and Key Metrics Changes - Technical services, representing 95% of total revenues, decreased by 4% [9] - Pressure pumping revenues accounted for 27.6%, wireline for 24.1%, downhole tools for 22.4%, coiled tubing for 9.7%, cementing for 5.9%, and rental tools for 3.4% [9] - Cudd Pressure Control revenues increased by 1% sequentially, with snubbing up 13% [6] Market Data and Key Metrics Changes - The Western MidCon region was flat sequentially, while weakness was noted in the International and Rocky Mountain regions [4] - Growth was observed in the Southeast and Northeast regions [3] Company Strategy and Development Direction - The company aims to leverage its strong balance sheet and maximize long-term shareholder returns while focusing on less capital-intensive service lines [8] - There is a strategic focus on organic growth, investment in new technologies, and M&A within existing markets [14] Management's Comments on Operating Environment and Future Outlook - The management noted that 2025 was challenging, with year-end oil prices at their lowest since COVID, but recent improvements in oil and gas prices are encouraging [14] - The company is cautious about the impact of weather on early 2026 operations, particularly in the Permian and MidCon regions [21] Other Important Information - The decision to expense wireline cables instead of capitalizing them was made due to changes in work type and increased activity [10][51] - Capital expenditures for 2026 are expected to be in the range of $150 million to $180 million, with adjustments based on activity levels [13] Q&A Session Summary Question: Impact of weather on Q1 performance - Management acknowledged the uncertainty due to weather impacts but noted that the situation is not insignificant [21] Question: Competitors moving equipment overseas - Management indicated that some competitors are reorganizing, which may reduce competition in certain service lines [24] Question: Potential for stock buybacks - Management stated that buybacks are one of the options being evaluated, but no immediate changes are expected [25] Question: Reactivation of idled fleet - Management emphasized the need for better pricing and steady customer activity before reactivating the fleet [39] Question: M&A strategy and market conditions - Management agreed that there is less competition for traditional oilfield services companies and emphasized a patient approach to M&A [42] Question: Updated wireline accounting treatment - Management explained the change was due to evolving business needs and a more accurate reflection of cable usage [51] Question: Growth potential in Thru Tubing Solutions - Management noted a reduced international presence but expressed hope for growth in the Middle East through technology deployment [57] Question: Current state of the pressure pumping market - Management reported no dramatic changes yet but is focused on maintaining discipline in pricing and operations [61]