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Jun 30, 2024
Rpc Q2 2024 Earnings Report
RPC's second quarter results for 2024 showed increased profitability despite pressure pumping challenges, with revenue decreasing slightly but net income and EPS rising.
Key Takeaways
RPC, Inc. reported revenues of $364.2 million, a slight decrease sequentially. However, net income increased to $32.4 million, with diluted EPS at $0.15. The company highlighted solid demand and margin improvement across most service lines, with pressure pumping remaining competitive.
Revenues decreased 4% sequentially to $364.2 million.
Net income increased 18% sequentially to $32.4 million, with diluted EPS at $0.15.
Adjusted EBITDA rose 9% sequentially to $68.5 million.
The company remained debt-free, holding over $260 million in cash, and paid $8.6 million in dividends.
Rpc
Rpc
Rpc Revenue by Segment
Revenue by Segment
Technical Services Revenue
CapyFin.comSupport Services Revenue
CapyFin.com Forward Guidance
RPC is actively seeking long-term strategic investments, including potential acquisitions, and remains committed to returning cash to stockholders.
Positive Outlook
- Optimistic about the positive impact of newly launched downhole tools products on Company performance.
- Excited about developing opportunities for specialized work leveraging existing coiled tubing technologies.
- Considering future investments and options to further transition asset base toward dual-fuel or electric equipment in high demand.
- Searching for long-term strategic investments.
- Evaluating potential acquisitions and plans to strategically deploy capital to grow the business.
Challenges Ahead
- Pressure pumping remains highly competitive.
- The industry continues to be over-supplied with a declining rig count.
- Efficiency gains are consistently adding pump hour capacity to the industry.
- Price of oil and natural gas and overall performance of the U.S. economy can impact capital spending.
- Risk that assessments, such as regarding the oversupplied nature of oilfield services, will turn out incorrect.
Revenue & Expenses
Visualization of income flow from segment revenue to net income