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Jun 30, 2023
Rpc Q2 2023 Earnings Report
RPC's financial performance declined due to reduced drilling and completion activity, particularly in natural gas-directed basins.
Key Takeaways
RPC reported a decrease in revenues and profits for Q2 2023 compared to the previous quarter, primarily due to job delays, cancellations by pressure pumping customers, and weaker activity in natural gas basins. However, revenues increased compared to the same quarter last year due to improved pricing and higher activity levels.
Revenues for Q2 2023 were $415.9 million, a decrease compared to $476.7 million in Q1 2023.
Net income for Q2 2023 was $65.0 million, or $0.30 diluted earnings per share, compared to $71.5 million, or $0.33 diluted earnings per share, in Q1 2023.
Operating profit for Q2 2023 was $82.4 million compared to $90.7 million in the first quarter.
RPC acquired Spinnaker Oilwell Services to expand its cementing business.
Rpc
Rpc
Forward Guidance
RPC believes the slowdown in drilling and completion activity is temporary and is taking cost-cutting measures.
Positive Outlook
- Acquisition of Spinnaker Oilwell Services will significantly expand cementing business.
- Integration of Spinnaker is progressing well.
- Improved pricing for services.
- Higher customer activity levels.
- Larger active fleet of revenue-producing equipment.
Challenges Ahead
- Decline in drilling and completion activity, particularly in natural gas-directed basins.
- Job delays and cancellations by several pressure pumping customers.
- Weaker activity levels in most natural gas-directed basins.
- Prudent cost-cutting measures are being taken to better align cost structure to activity levels.
- Slowdown in drilling and completion activity.