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Rpc Q1 2025 Earnings Report
RPC, Inc. reported its unaudited financial results for the first quarter ended March 31, 2025, showing a slight revenue decrease but improved EBITDA margin, and announced the acquisition of Pintail Completions.
Key Takeaways
RPC, Inc. reported a 1% sequential decrease in revenues to $332.9 million for Q1 2025. Net income was $12 million, down 6% sequentially due to an unfavorable tax rate comparison. However, EBITDA increased 6% sequentially to $48.9 million, with EBITDA margin improving by 100 basis points to 14.7%. The company also announced the acquisition of Pintail Completions, a leading wireline perforation service provider, effective April 1, 2025.
Revenues decreased 1% sequentially to $332.9 million, with pressure pumping revenues flat and other service lines slightly down.
Net income was $12 million, a 6% sequential decrease, primarily due to a higher effective tax rate compared to the previous quarter.
EBITDA increased 6% sequentially to $48.9 million, and EBITDA margin improved by 100 basis points to 14.7%, driven by lower operating costs.
RPC acquired Pintail Completions, a Permian-based wireline perforation service provider, effective April 1, 2025, which generated over $400 million in 2024 revenues.
Revenue by Segment
Forward Guidance
RPC is excited about the Pintail acquisition despite operating in a period of high uncertainty due to macro concerns from new administration's tariff actions, volatile commodity prices, and unclear oil supply/demand outlooks. The company remains committed to conservative business management, driving cash flow, and maintaining financial flexibility.
Positive Outlook
- Pintail acquisition brings a scaled and high-quality company with strong Permian operations and a blue-chip customer base.
- New product launches in downhole tools are expected to contribute more meaningfully during 2025.
- Commitment to conservatively managing the business, driving cash flow, and maintaining financial flexibility and a healthy balance sheet.
- Continued efforts to control discretionary costs in response to challenging industry conditions.
- Excitement regarding the Pintail acquisition despite market uncertainties.
Challenges Ahead
- Oilfield services market remains challenged with intense competition to keep assets utilized.
- Pressure pumping revenues were essentially flat, and other service line revenues were slightly down.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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