RPC(US:RES)2021-07-28 16:30Financial Data and Key Metrics Changes - In Q2 2021, revenues increased to $188.8 million from $89.3 million in Q2 2020, primarily due to higher activity levels and improved pricing [10] - EBITDA for Q2 2021 was $17.3 million compared to an adjusted EBITDA of negative $17.8 million in the same period of the prior year [11] - Adjusted loss per share improved to near breakeven in Q2 2021 from an adjusted loss per share of $0.10 in Q2 2020 [11] Business Line Data and Key Metrics Changes - Technical services segment revenues increased by 118.7% compared to the same quarter in the prior year, driven by significantly higher activity and pricing improvements [14] - Support services segment revenues increased by 44.1% year-over-year, but the operating loss widened to $2.4 million from $1.9 million in the prior year [15] - Sequentially, revenues increased by 3.4% from $182.6 million in the prior quarter, with cost of revenues as a percentage of revenues decreasing from 80.1% to 77.2% [16][12] Market Data and Key Metrics Changes - The company noted increased demand for services and a full calendar for most of Q3, indicating a positive market outlook [8] - Customer activity was impacted in June due to job delays and heavy rains in the Permian, but July showed signs of improvement [8] Company Strategy and Development Direction - The company is optimistic about achieving net pricing improvements as market conditions tighten and activity increases [22] - The focus remains on ESG-friendly equipment, which is in high demand, and the company expects to see pricing power in this area first [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the third quarter's performance, with indications of increased drilling and completion plans from customers [22] - The company remains cautious but hopeful about pricing improvements by the end of the year [27] Other Important Information - Capital expenditures for Q2 2021 were $14.1 million, with an estimated full-year capital expenditure of approximately $65 million [20] - The company ended Q2 2021 with a cash balance of $121 million and remains debt-free [23] Q&A Session Summary Question: Is third quarter top line book up double-digits? - Management indicated that it is very much a possibility [25] Question: What was the Cares Act benefit for Q2 margins? - The overall benefit was just under $4 million, with about $3.4 million in technical services [26] Question: Will net pricing improvement be seen by the end of this year? - Management is hopeful for pricing improvement as the market tightens [27] Question: Can you break down the revenue within technical services? - Pressure pumping accounts for 38.2% of consolidated revenues, followed by through tubing solutions at 31.2% [31] Question: What is the margin profile with the deployment of an additional fleet? - The additional fleet will enhance the bottom line, but margin percent is harder to predict [32] Question: What are the concerns regarding labor and COVID? - The company has a plan in place to manage labor and COVID-related issues, which has been effective so far [41][44] Question: What operational delays impacted pressure pumping in Q2? - Delays were due to heavy rain and job pushes, leading to lower utilization [50] Question: How is pricing for different assets within pressure pumping? - ESG-friendly equipment can achieve decent utilization at current pricing, but premium pricing is not yet available [62]