RPC(US:RES)2021-04-28 16:45Financial Data and Key Metrics Changes - For Q1 2021, revenues decreased to $182.6 million from $243.8 million in Q1 2020, a decline of $61.2 million [9] - Operating loss for Q1 2021 was $10.5 million compared to an adjusted operating loss of $13.2 million in Q1 2020 [9] - EBITDA for Q1 2021 was $7.8 million, down from adjusted EBITDA of $25.8 million in the same period last year [9] - Loss per share was $0.05 in Q1 2021, compared to an adjusted loss per share of $0.04 in Q1 2020 [9] Business Line Data and Key Metrics Changes - Technical Services segment revenues decreased by 24.2% compared to the same quarter last year, with an operating loss of $5.8 million [12] - Support Services segment revenues decreased by 38% year-over-year, resulting in an operating loss of $2.9 million compared to a profit of $1.5 million in the prior year [12] - Sequentially, Technical Services revenues increased by 24.2% to $172.6 million due to increased activity levels [15] Market Data and Key Metrics Changes - The company noted a modest recovery in hydrocarbon demand and a reduction in oil inventory to near its five-year average, positively impacting the outlook for oil and gas prices [7] - The first quarter was negatively impacted by severe cold weather, which reduced EBITDA by approximately $5 million [7] Company Strategy and Development Direction - The company remains committed to capital discipline and will not add incremental capacity until economic returns justify the investment [19] - RPC is adapting operations to reduce emissions and is upgrading fleets to dual fuel capability, with two-thirds of deployed capacity becoming ESG friendly [19] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the start of 2021, with activity levels and pricing tracking expectations [19] - The company emphasized the importance of pricing discipline to achieve profitable revenue growth rather than growth for growth's sake [27] Other Important Information - Capital expenditures for Q1 2021 were $11.8 million, with an estimated full-year capital expenditure of approximately $55 million [17] - RPC ended Q1 2021 with a cash balance of $85.4 million and remains debt-free [20] Q&A Session Summary Question: Revenue breakdown for different segments and pricing trajectory - Management provided a revenue breakdown: Pressure pumping at 41.0%, through tubing solutions at 30.9%, coiling tubing at 8.1%, nitrogen at 6.1%, and rental tool services at 3.3% [23] - Pricing remains competitive, with some cost increases passed along, but net pricing improvement is still awaited [24] Question: Normalization of incremental stone fell - Management believes incrementals will normalize back to historical levels without significant noise expected in upcoming quarters [26] Question: Pricing discipline and revenue growth - Management emphasized the need for pricing discipline to generate normal incrementals and focus on profitable revenue growth [27]