## RPC, Inc. Reports Third Quarter 2024 Financial Results: Revenue Down But Company Remains Debt-Free
RPC, Inc. (RES), a leading diversified oilfield services company, announced its unaudited results for the third quarter ended September 30, 2024. The company’s revenues decreased by 7% sequentially to $337.7 million, primarily driven by lower utilization and pricing in the pressure pumping segment. Despite the challenging market conditions, RPC remains committed to its financial stability and future growth.
Key Highlights:
*
Revenue Decrease:
Revenues declined 7% sequentially, with the largest impact coming from the pressure pumping service line, which saw a 12% drop. Other service lines, including coiled tubing, cementing, downhole tools, and rental tools, showed more stability with a combined 4% decrease.*
Net Income Decline:
Net income was $18.8 million, down 42% sequentially, and diluted Earnings Per Share (EPS) was $0.09. The net income margin decreased 330 basis points sequentially to 5.6%.*
Strong Financial Position:
RPC remains debt-free, ending the quarter with $277 million in cash. The company paid $8.6 million in dividends during the quarter, demonstrating its commitment to shareholder returns.*
Focus on Growth:
RPC is focused on expanding its innovative new products and services in coiled tubing and downhole tools, aiming to capitalize on attractive opportunities in these areas. The company also remains actively looking for high-quality acquisitions to further strengthen its portfolio.Management Commentary:
Ben M. Palmer, RPC’s President and Chief Executive Officer, acknowledged the challenging market conditions. He stated, “The third quarter saw sequentially lower revenues and profits in a challenging oilfield services market. Oil prices and rig count were each sequentially lower in the quarter, adding headwinds to an already competitive marketplace.” Palmer also highlighted the company’s resilience and focus on cost management, “We will continue to take measured cost actions to preserve margins until industry conditions improve.”
Looking Ahead:
RPC is confident in its ability to navigate the current market challenges. The company remains financially strong, with a focus on innovation, expansion, and strategic acquisitions. With a strong balance sheet and a commitment to shareholder value, RPC is well-positioned to capitalize on future opportunities in the oilfield services sector.
About RPC:
RPC is a leading provider of specialized oilfield services and equipment, primarily serving independent and major oilfield companies engaged in exploration, production, and development of oil and gas properties across the United States and selected international markets. The company’s services include pressure pumping, coiled tubing, cementing, downhole tools, and rental tools. RPC is committed to providing safe, reliable, and efficient solutions to its clients while prioritizing sustainability and environmental responsibility.
