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RPC, Inc. Reports Second Quarter 2025 Financial Results

RPC, Inc. (NYSE: RES), a prominent company in the oilfield services sector, recently disclosed its financial results for the second quarter of 2025, ending on June 30. The report highlights a significant acquisition and fluctuations in revenue and profits.

Financial Overview

In the second quarter, RPC's total revenues surged by 26% sequentially to reach $420.8 million, largely attributable to the acquisition of Pintail Completions which took effect on April 1, 2025. If Pintail's contributions are excluded, the company saw a 3% decline in revenue. This reflects the volatility the oil and gas sector is facing due to ongoing challenges linked to oil prices and operational interruptions.

On the net income front, the company reported earnings of $10.1 million, translating to a slightly reduced diluted EPS of $0.05. In contrast, the adjusted net income, which factors out certain expenses including acquisition-related costs, soared by 46% sequentially to $17.5 million. This resulted in an adjusted EPS standing at $0.08, indicating the company's capacity to generate steady earnings despite headwinds in the market.

Segment Performance

Notably, the Technical Services segment reported revenues of $396.8 million, reflecting a 27% increase from the previous quarter. This growth was driven primarily by enhanced performance in downhole tools and coiled tubing, along with the new revenues added from Pintail's wireline operations. Meanwhile, the Support Services sector, with revenue growth of 14%, demonstrated the resilience of rental tools against a challenging market landscape.

Conversely, the pressure pumping services fell by 18%, an area RPC identified as particularly challenged due to weather impacts, lower commodity prices, and delays experienced by customers in starting operations. The sequential decline underscores the necessity for companies in the oilfield services industry to adapt quickly to market changes and the dynamic nature of customer demand.

Management Insights

RPC's President and CEO, Ben M. Palmer, acknowledged both the potential gains brought by Pintail and the difficulties posed by the current market conditions. He emphasized the importance of operational efficiencies and cost management strategies, recognizing how these could enhance the company's competitiveness. The decision to maintain a consistent dividend of $0.04 per share, payable on September 10, underlines RPC’s commitment to returning value to its shareholders, despite market volatility.

Market Context

A closer look at industry conditions reveals the U.S. rig count averaged 571 in Q2 2025, reflecting a 2.9% decline from the previous quarter and a 5.3% drop year-on-year. Additionally, the average oil price remained under pressure, averaging $64.74 per barrel, marking a 10% decrease from the prior quarter and over 20% year-on-year.

The broader macroeconomic landscape indicates continued uncertainty which could present lasting challenges for RPC and its peers. Yet, Palmer remains optimistic about the resilience provided through diversification of services and client bases, combined with a strategic focus on efficiency improvements.

Future Outlook

RPC's approach to navigating this volatile environment involves maintaining disciplined operational practices while considering potential future investments resulting from the sustained cash flow generated by its diversified operations.

In summation, RPC, Inc. has demonstrated significant resilience within a challenging oil market, showcasing growth in key segments while maintaining shareholder value through consistent dividend policies. As the company prepares for its upcoming conference call, stakeholders will be keenly watching how RPC plans to tackle the existing challenges, capitalizing on its recent acquisitions to secure future growth.

This overview presents RPC's commitment to transparency and operational excellence amid industry fluctuations, asserting its position as a reliable player in the oilfield services market.