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RPC, Inc. Reports First Quarter 2025 Financial Results

On April 24, 2025, RPC, Inc. (NYSE: RES) shared its financial outcomes for the first quarter ending March 31, 2025. The results reflect a 1% drop in revenues, totaling $332.9 million, alongside a slight decrease in net income.

Key Financial Highlights

• - Net Income: RPC reported a net income of $12 million, which signifies a 6% sequential decline from the previous quarter, attributed to an unfavorable tax comparison.
• - Earnings Per Share (EPS): EPS remained constant at $0.06, while the net income margin experienced a minor decline of 20 basis points to 3.6%.
• - EBITDA: The company recorded an EBITDA of $48.9 million, representing a 6% increase sequentially, with the EBITDA margin rising by 100 basis points to 14.7%.

These numbers suggest that while RPC's revenue faced slight pressures, operational efficiency was improved through cost controls and steady performance across most service lines.

Recent Acquisition of Pintail Completions

A significant development this quarter was RPC’s acquisition of Pintail Completions, a leading provider of wireline perforation services, effective April 1, 2025. This strategic acquisition aligns with RPC's ambition to expand its capabilities in the Permian Basin, which is crucial for enhancing service delivery to elite clients in the oilfield sector. Pintail, which had revenues exceeding $400 million in 2024, is recognized for its superior profitability, cash flow, and customer service.

Ben M. Palmer, RPC's President and CEO, commented, "The first quarter was an encouraging start to the year across most of our service lines, particularly with our recent acquisition of Pintail Completions." He emphasized the high-quality scale of Pintail, which could enhance RPC's well completion services significantly.

Challenges Facing the Industry

Despite positive developments, RPC acknowledged that the oilfield services market remains challenging. Pressure pumping revenues remained flat, and competition remains fierce. This has required RPC to be diligent with investments and to scrutinize capital deployment effectively.

"Looking ahead, we are excited about the Pintail acquisition despite the uncertainty in the operational landscape," Palmer stated. He highlighted global economic volatility, fluctuating commodity prices, and shifting policies as critical factors influencing strategic planning.

Future Outlook and Financial Flexibility

RPC ended the quarter with robust cash reserves of $326.7 million, alongside no outstanding borrowings under its credit facility. The company has maintained a disciplined approach to managing costs, thus securing its financial flexibility amid market instabilities.

Additionally, RPC announced a regular quarterly cash dividend of $0.04 per share, set for payment on June 10, 2025, which reflects their commitment to returning value to shareholders.

As RPC continues to navigate through the complexities of the oilfield services market, their ability to generate cash flow, conserve capital, and seek out strategic growth opportunities will be vital for sustaining their competitive edge in the industry.