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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.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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