RPC Inc
NYSE:RES
RPC Inc
RPC Inc., founded in 1984 and based in Atlanta, Georgia, operates in the heart of the oilfield services industry, providing a varied range of critical services that enable the efficient extraction of oil and natural gas. The company's primary businesses are Cudd Energy Services and Patterson Services, together forming a robust framework that addresses several aspects of the upstream oil and gas sector. Through these subsidiaries, RPC Inc. offers everything from well control to pressure pumping services. Pressure pumping is particularly vital as it involves hydraulic fracturing, a process that has been integral to unlocking vast shale resources, thus underpinning modern U.S. energy production. This suite of services positions RPC as a key player in enhancing the performance and reliability of oil and gas producers, directly tying the company's fortunes to the cyclical dynamics of the energy markets.
RPC Inc.'s revenue model is closely hinged on the operational activity levels of exploration and production companies. Typically, as oil and gas prices rise, exploration and drilling activity increase, driving demand for RPC’s services. Conversely, downturns can pose challenges, making flexibility and operational efficiency critical to maintaining profitability. The company invests in state-of-the-art equipment and technology to provide high-quality, reliable services while focusing on safety and environmental sustainability, which are increasingly important as regulatory scrutiny intensifies. By leveraging its expertise and strategically aligning with market trends, RPC Inc. aims to sustain its position and support the sustainable extraction of energy resources, playing a crucial role in the energy supply chain.
RPC Inc., founded in 1984 and based in Atlanta, Georgia, operates in the heart of the oilfield services industry, providing a varied range of critical services that enable the efficient extraction of oil and natural gas. The company's primary businesses are Cudd Energy Services and Patterson Services, together forming a robust framework that addresses several aspects of the upstream oil and gas sector. Through these subsidiaries, RPC Inc. offers everything from well control to pressure pumping services. Pressure pumping is particularly vital as it involves hydraulic fracturing, a process that has been integral to unlocking vast shale resources, thus underpinning modern U.S. energy production. This suite of services positions RPC as a key player in enhancing the performance and reliability of oil and gas producers, directly tying the company's fortunes to the cyclical dynamics of the energy markets.
RPC Inc.'s revenue model is closely hinged on the operational activity levels of exploration and production companies. Typically, as oil and gas prices rise, exploration and drilling activity increase, driving demand for RPC’s services. Conversely, downturns can pose challenges, making flexibility and operational efficiency critical to maintaining profitability. The company invests in state-of-the-art equipment and technology to provide high-quality, reliable services while focusing on safety and environmental sustainability, which are increasingly important as regulatory scrutiny intensifies. By leveraging its expertise and strategically aligning with market trends, RPC Inc. aims to sustain its position and support the sustainable extraction of energy resources, playing a crucial role in the energy supply chain.
Revenue Decline: RPC reported fourth quarter revenue of $426 million, down 5% sequentially, reflecting broad-based weakness across most service lines, especially in December.
Profitability Impact: Adjusted EBITDA fell to $55.1 million with margin down 230 basis points to 12.9%, and adjusted diluted EPS was $0.04 for the quarter.
Cost and Cash Flow: Shifted accounting for wireline cables from capitalizing to expensing, increasing cost of revenues but with no impact on free cash flow, which came in at $52.9 million.
CapEx and Outlook: 2025 capital expenditures were $148 million, with $15 million delayed into 2026; 2026 CapEx is expected between $150 million and $180 million.
Challenging Market: Management noted ongoing weak oil and gas prices and weather disruptions, impacting near-term profitability and activity levels.
M&A and Capital Allocation: Large cash balance leaves flexibility for acquisitions or buybacks, but no near-term plans for dramatic change; management stressed patience and selectivity.
Service Line Dynamics: Pressure pumping, wireline, and coiled tubing all saw sequential declines; technical services like Thru Tubing Solutions continue to expand technology offerings but also faced regional weakness.
