RPC(US:RES)2022-01-26 17:19Financial Data and Key Metrics Changes - For Q4 2021, revenues increased to $268.3 million from $148.6 million in Q4 2020, reflecting higher customer activity and improved pricing [10] - Operating profit for Q4 was $20.1 million compared to an adjusted operating loss of $11.3 million in the same quarter of the prior year [10] - EBITDA for Q4 was $39.4 million compared to adjusted EBITDA of $7.8 million in Q4 2020 [11] - Diluted earnings per share for Q4 were $0.06 compared to an adjusted loss per share of $0.03 in the same quarter of the prior year [11] - Cost of revenues was $200.6 million or 74.8% of revenues, down from 79.3% in Q4 2020 [12] Business Line Data and Key Metrics Changes - Technical Services segment revenues for Q4 were $254.4 million, an 83.1% increase from $139 million in Q4 2020, with an operating profit of $20.5 million compared to an operating loss of $11.3 million [14] - Support Services segment revenues for Q4 were $13.8 million, a 43% increase from $9.7 million in Q4 2020, with an operating loss of $373,000 compared to a loss of $2.6 million in the prior year [15] Market Data and Key Metrics Changes - The average U.S. domestic rig count and oil prices both increased over 80% compared to Q4 2020, contributing to improved industry conditions [7] Company Strategy and Development Direction - The company plans to reactivate idle pressure pumping equipment as market pricing and customer demand improve, with a focus on upgrading equipment fleets [22] - Approximately two-thirds of the active horizontal pressure pumping fleet is ESG friendly, indicating a commitment to sustainability [22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the operating environment and financial results, expecting continued improvements in 2022 despite potential supply chain and personnel challenges [28][59] - The company is focused on generating sufficient cash flow and may consider reinitiating dividends or stock buybacks in the future [70] Other Important Information - Capital expenditures for Q4 were $22.7 million, with full-year 2021 capital expenditures totaling $67.6 million; estimated capital expenditures for 2022 are approximately $125 million [20] Q&A Session Summary Question: Can you speak about pressure pumping pricing? - Management noted net pricing improvements and increased revenue to cover rising costs, with expectations for continued pricing traction [26][27] Question: Is any of the 2022 CapEx targeted towards reactivation of additional fleet? - Management indicated that the first half of 2022 would likely maintain a constant fleet count, assessing the activation of additional fleets based on demand [30] Question: What is the breakdown of product lines? - For Q4 2021, pressure pumping accounted for 46.8% of revenues, with other segments like Thru Tubing Solutions at 26.0% and Coiled Tubing at 10.1% [45] Question: Have there been disruptions due to sand delivery issues? - Management confirmed no job delays due to sand delivery disruptions, although there are risks associated with logistics [51] Question: What is the current contract status and pricing environment? - The majority of fleets are on spot work, with a mix of longer-term contracts, and management is pleased with the current pricing mix [67][68]