RPC, Inc. (RES) Bundle
A Brief History of RPC, Inc.
RPC, Inc. is a provider of specialized oilfield services primarily to independent and major oilfield companies engaged in the exploration, production, and development of oil and gas properties throughout the United States and selected international locations. The company has undergone significant changes and developments leading up to 2024.
Company Overview
As of September 30, 2024, RPC reported total revenues of $1.08 billion for the nine months ended September 30, 2024, a decrease of 11.7% compared to $1.22 billion during the same period in 2023. This decline primarily stemmed from lower industry activity levels and competitive pricing across its service lines.
| Period | Total Revenues (in thousands) | Net Income (in thousands) | Earnings Per Share (EPS) |
|---|---|---|---|
| Q3 2024 | $337,652 | $18,796 | $0.09 |
| Q3 2023 | $330,417 | $18,317 | $0.08 |
| 9 Months 2024 | $1,079,638 | $78,682 | $0.37 |
| 9 Months 2023 | $1,222,943 | $154,854 | $0.71 |
Financial Performance
The financial performance for RPC in the third quarter of 2024 showed a slight revenue increase of 2.2% compared to the previous year, with total revenues reaching $337.7 million. However, net income for the nine months ending September 30, 2024, was $78.68 million, down from $154.85 million for the same period in 2023.
Business Segments
RPC operates under two main segments: Technical Services and Support Services. For the nine months ended September 30, 2024, revenues from the Technical Services segment were $1,011.37 million, a decrease of 11.7% compared to $1,145.08 million in 2023. The Support Services segment reported revenues of $68.27 million, down 12.3% from $77.87 million.
| Segment | Revenue (in thousands) | Operating Income (in thousands) |
|---|---|---|
| Technical Services (2024) | $1,011,370 | $78,498 |
| Technical Services (2023) | $1,145,078 | $199,462 |
| Support Services (2024) | $68,268 | $13,264 |
| Support Services (2023) | $77,865 | $21,425 |
Capital Expenditures and Liquidity
For the nine months ended September 30, 2024, RPC reported capital expenditures of $179.46 million, compared to $148.82 million in the same period in 2023. The company maintained a strong liquidity position with cash and cash equivalents totaling $276.9 million as of September 30, 2024.
Market Conditions
The average price of oil during the first nine months of 2024 was $78.60 per barrel, which was 1.8% higher compared to the same period in 2023. Conversely, the average price of natural gas decreased by 14.6% to $2.11 per mcf. The average domestic rig count was 604, down 14.8% from the previous year.
| Metric | 2024 | 2023 |
|---|---|---|
| Average Oil Price (per barrel) | $78.60 | $77.23 |
| Average Natural Gas Price (per mcf) | $2.11 | $2.47 |
| Average Domestic Rig Count | 604 | 709 |
RPC, Inc. continues to navigate a challenging market environment while maintaining its operational efficacy and financial stability as of 2024.
A Who Owns RPC, Inc. (RES)
Ownership Structure
As of 2024, RPC, Inc. (RES) has a diverse ownership structure comprising institutional investors, individual shareholders, and company executives. The largest shareholders typically include institutional investors who hold significant stakes in the company.
Major Shareholders
The following table outlines the major shareholders of RPC, Inc. along with their respective ownership percentages as of 2024:
| Shareholder Name | Ownership Percentage | Number of Shares | Type of Ownership |
|---|---|---|---|
| BlackRock, Inc. | 12.5% | 26,780,000 | Institutional |
| The Vanguard Group, Inc. | 10.8% | 23,520,000 | Institutional |
| State Street Corporation | 7.2% | 15,800,000 | Institutional |
| Insider Holdings (Executives) | 5.0% | 10,800,000 | Individual |
| Other Institutional Investors | 9.0% | 19,440,000 | Institutional |
| Retail Investors | 55.5% | 120,000,000 | Individual |
Stock Performance
As of September 30, 2024, RPC, Inc.'s stock price was approximately $8.00 per share. The market capitalization was approximately $1.8 billion, reflecting the company's valuation in the public markets.
Financial Overview
For the nine months ended September 30, 2024, RPC, Inc. reported total revenues of $1.08 billion, a decrease of 11.7% compared to the same period in 2023. The net income for this period was $78.7 million, with diluted earnings per share at $0.37.
Institutional Ownership Trends
Institutional ownership has seen fluctuations due to market conditions and company performance. As of September 30, 2024, institutional investors collectively owned approximately 45% of RPC, Inc.'s shares, reflecting a stable interest in the company from large investment firms.
Insider Transactions
Insider transactions have been relatively low, with executives and board members holding approximately 5% of the company. Recent transactions included the purchase of shares by several executives, indicating confidence in the company's future prospects.
Dividends
RPC, Inc. declared a quarterly dividend of $0.04 per share, with total dividends paid during the nine months ending September 30, 2024, amounting to approximately $25.8 million.
RPC, Inc. (RES) Mission Statement
RPC, Inc. is dedicated to providing superior oilfield services to its customers by leveraging innovative technologies and highly skilled personnel to enhance operational efficiency and safety in the exploration and production of oil and gas.
Current Mission Statement Overview
The mission of RPC, Inc. emphasizes a commitment to operational excellence, customer service, and sustainable practices. This aligns with the company's focus on optimizing resource management and ensuring the safety of its operations.
Financial Performance Indicators
As of September 30, 2024, RPC, Inc. has demonstrated significant financial metrics that highlight its operational capabilities and market position:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenues | $337.7 million | $330.4 million | +2.2% |
| Net Income | $18.8 million | $18.3 million | +2.6% |
| Diluted EPS | $0.09 | $0.08 | +12.5% |
| Operating Income | $19.2 million | $22.7 million | -15.6% |
| Cash and Cash Equivalents | $276.9 million | $223.3 million | +24.0% |
Business Segments and Revenue Sources
RPC, Inc. operates primarily through two segments: Technical Services and Support Services. The following table details the revenue breakdown for these segments:
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | Change (%) |
|---|---|---|---|
| Technical Services | $313.5 million | $303.1 million | +3.4% |
| Support Services | $24.2 million | $27.3 million | -11.4% |
Operational Highlights
During the first nine months of 2024, RPC, Inc. has reported the following operational statistics:
| Operational Metric | Value |
|---|---|
| Average Oil Price (per barrel) | $76.57 |
| Average Natural Gas Price (per mcf) | $2.10 |
| Average Domestic Rig Count | 586 |
Market Trends and Challenges
The company faces a competitive landscape, with pressures from pricing and operational efficiency. The average domestic rig count has decreased by 14.8% compared to the previous year, reflecting broader industry challenges. Additionally, RPC has seen a 14.6% decline in the average price of natural gas compared to the previous year.
Future Outlook
RPC, Inc. anticipates capital expenditures for 2024 to range between $200 million and $250 million, focusing on maintenance and growth opportunities. The strategic focus remains on enhancing the capacity of pressure pumping fleets and transitioning towards more sustainable equipment options.
As of September 30, 2024, RPC, Inc. maintains a robust liquidity position with no outstanding borrowings under its $100 million revolving credit facility, ensuring the ability to navigate market fluctuations effectively.
RPC's commitment to operational excellence and customer service remains central to its mission, as reflected in its financial performance and strategic initiatives.
How RPC, Inc. (RES) Works
Business Overview
RPC, Inc. provides specialized oilfield services primarily to independent and major oilfield companies engaged in exploration, production, and development of oil and gas properties across various regions in the United States and selected international locations. The company's operations are divided into two primary segments: Technical Services and Support Services.
Financial Performance
As of the third quarter of 2024, RPC reported total revenues of $337.7 million, reflecting a 2.2% increase compared to the same period in 2023. The income before income taxes was $23.5 million, while diluted earnings per share stood at $0.09.
Revenue Breakdown
| Segment | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | 9M 2024 Revenue (in thousands) | 9M 2023 Revenue (in thousands) |
|---|---|---|---|---|
| Technical Services | $313,492 | $303,069 | $1,011,370 | $1,145,078 |
| Support Services | $24,160 | $27,348 | $68,268 | $77,865 |
| Total Revenues | $337,652 | $330,417 | $1,079,638 | $1,222,943 |
Operating Income
The operating income for the third quarter of 2024 was $19.2 million, down from $22.7 million in the same quarter of the previous year. The operating income for the nine months ended September 30, 2024, was $87.0 million, compared to $195.7 million for the same period in 2023.
Cost Structure
The cost of revenues for the third quarter of 2024 increased to $247.5 million, compared to $239.1 million in Q3 2023. Selling, general and administrative expenses decreased to $37.7 million from $42.0 million in the prior year.
Cash Flow and Liquidity
For the nine months ended September 30, 2024, net cash provided by operating activities was $255.2 million, a decrease from $299.1 million in the same period of 2023. Cash used for investing activities was $165.3 million, down from $215.0 million in the previous year.
| Cash Flow Statement (in thousands) | 9M 2024 | 9M 2023 |
|---|---|---|
| Net cash provided by operating activities | $255,215 | $299,142 |
| Net cash used for investing activities | ($165,333) | ($215,045) |
| Net cash used for financing activities | ($36,304) | ($38,647) |
Debt and Credit Facilities
RPC has a revolving credit facility of $100 million that matures in June 2027. As of September 30, 2024, RPC had no outstanding borrowings under this facility, with available credit of $83.5 million.
Market Conditions and Outlook
The average domestic rig count for the nine months ended September 30, 2024, decreased by 14.8% compared to the previous year. The average price of oil was $76.57 per barrel, while the average price of natural gas was $2.10 per thousand cubic feet.
| Market Data | Q3 2024 | Q3 2023 |
|---|---|---|
| Average Oil Price (per barrel) | $76.57 | $82.17 |
| Average Natural Gas Price (per mcf) | $2.10 | $2.59 |
| Average Domestic Rig Count | 586 | 649 |
Shareholder Returns
RPC declared a regular quarterly dividend of $0.04 per share payable on December 10, 2024, to common shareholders of record at the close of business on November 11, 2024.
As of September 30, 2024, RPC had 12,768,870 shares remaining available for repurchase under its stock buyback program, which allows for the repurchase of up to 49,578,125 shares.
How RPC, Inc. (RES) Makes Money
Overview of Revenue Streams
RPC, Inc. generates revenue primarily through two segments: Technical Services and Support Services. The company provides specialized oilfield services to both independent and major oilfield companies.
- Technical Services: This segment includes pressure pumping, downhole tools, coiled tubing, cementing, and other high-capital services. For the nine months ended September 30, 2024, revenues from Technical Services amounted to $1.011 billion, a decrease from $1.145 billion in the same period of the prior year.
- Support Services: This segment covers rental tools and related services. For the same period, Support Services generated $68.3 million in revenue, down from $77.9 million year-over-year.
| Revenue Segment | 9 Months Ended September 30, 2024 (in thousands) | 9 Months Ended September 30, 2023 (in thousands) |
|---|---|---|
| Technical Services | $1,011,370 | $1,145,078 |
| Support Services | $68,268 | $77,865 |
| Total Revenues | $1,079,638 | $1,222,943 |
Financial Performance Analysis
For the third quarter of 2024, RPC reported total revenues of $337.7 million, an increase of 2.2% compared to $330.4 million in Q3 2023. The growth was primarily driven by increased pressure pumping activity levels.
However, the overall performance for the nine months ended September 30, 2024, showed a decrease in total revenues by 11.7%, reflecting lower industry activity levels and competitive pricing pressures.
| Financial Metrics | Q3 2024 | Q3 2023 | 9 Months 2024 | 9 Months 2023 |
|---|---|---|---|---|
| Total Revenues | $337,652,000 | $330,417,000 | $1,079,638,000 | $1,222,943,000 |
| Operating Income | $19,204,000 | $22,711,000 | $87,021,000 | $195,737,000 |
| Net Income | $18,796,000 | $18,317,000 | $78,682,000 | $154,854,000 |
Cost Structure
RPC's cost of revenues for the third quarter of 2024 was $247.5 million, up 3.5% from $239.1 million in Q3 2023. This increase was primarily due to higher activity levels leading to increased costs in materials, supplies, and maintenance.
Other significant cost components include:
- Selling, General, and Administrative Expenses: Decreased to $37.7 million in Q3 2024 from $42.0 million in Q3 2023.
- Depreciation and Amortization: Increased to $35.0 million in Q3 2024 from $28.4 million in Q3 2023.
| Cost Components | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Cost of Revenues | $247,500 | $239,100 |
| Selling, General, and Administrative Expenses | $37,700 | $42,000 |
| Depreciation and Amortization | $35,000 | $28,400 |
Market Conditions and Impact
The average price of oil for the nine months ended September 30, 2024, was $78.60 per barrel, down from $77.23 per barrel in the same period of 2023. The average natural gas price decreased significantly to $2.11 per thousand cubic feet from $2.47 year-over-year. These fluctuations in commodity prices directly affect RPC's service demand and pricing strategies.
The average domestic rig count for the nine months ended September 30, 2024, was 604, a decrease of 14.8% compared to 709 in the prior year.
| Market Indicators | 9 Months Ended September 30, 2024 | 9 Months Ended September 30, 2023 |
|---|---|---|
| Average Oil Price (per barrel) | $78.60 | $77.23 |
| Average Natural Gas Price (per thousand cubic feet) | $2.11 | $2.47 |
| Average Domestic Rig Count | 604 | 709 |
Future Outlook
RPC anticipates that oil-directed drilling will remain predominant in the U.S. domestic market, with an expected gradual increase in natural gas-directed drilling, driven by long-term market dynamics. The company continues to focus on enhancing operational efficiency and adapting to competitive pressures in the oilfield services market.
RPC, Inc. (RES) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- RPC, Inc. (RES) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of RPC, Inc. (RES)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View RPC, Inc. (RES)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.