Loading...
•
Mar 31, 2024
Rpc Q1 2024 Earnings Report
RPC's financial performance decreased due to weaker oilfield services activity and competitive pressures.
Key Takeaways
RPC Inc. reported a decrease in revenues and net income for Q1 2024 compared to the previous quarter, reflecting a softer oilfield services environment and competitive pricing. The company's financial position remained strong with a debt-free balance sheet and significant cash reserves.
Revenues decreased 4% sequentially to $377.8 million.
Net income was $27.5 million, down 32% sequentially, with diluted EPS at $0.13.
Adjusted EBITDA was $63.1 million, a 21% sequential decrease.
The company remained debt-free, paid $8.6 million in dividends, and repurchased $9.9 million of common stock.
Rpc
Rpc
Rpc Revenue by Segment
Revenue by Segment
Technical Services Revenue
CapyFin.comSupport Services Revenue
CapyFin.com Forward Guidance
RPC anticipates potential activity increases in the second half of 2024 if oil prices remain favorable and expects demand tailwinds from E&P consolidation and asset divestitures. The company plans to deploy a new Tier 4 dual-fuel fleet and continue strategic investments and acquisitions.
Positive Outlook
- Optimistic that if current oil price momentum holds, our customers would steadily increase activity in the second half of 2024.
- Belief that as large E&P consolidation transactions close and non-core assets are potentially divested, development of this acreage could provide demand tailwinds.
- Plans to place a new Tier 4 dual-fuel fleet in service mid-year 2024.
- Commitment to ongoing upgrades to meet customer demand for high-quality equipment.
- Committed to continue long-term strategic investments in the business and evaluating potential acquisitions to increase our scale, strengthen service lines, and grow our customer relationships.
Challenges Ahead
- The price of oil and natural gas and overall performance of the U.S. economy can impact capital spending by our customers and demand for our services.
- Business interruptions due to adverse weather conditions.
- Changes in the competitive environment of our industry.
- Our ability to identify and complete acquisitions.
- Risk factors that could cause such future events not to occur as expected are contained in RPC’s Form 10-K for the year ended December 31, 2023.
Revenue & Expenses
Visualization of income flow from segment revenue to net income