RPC (NYSE:RES) Announces Earnings Results

RPC (NYSE:RES) posted its quarterly earnings results on Thursday. The oil and gas company reported $0.08 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.04 by $0.04, Zacks reports. RPC had a return on equity of 4.82% and a net margin of 1.20%.The firm’s quarterly revenue was up 9.5% compared to the same quarter last year. During the same period last year, the company posted $0.08 EPS.

Here are the key takeaways from RPC’s conference call:

• Second-quarter results improved sequentially: Revenue rose 1% to $461 million, while adjusted EBITDA increased to $66 million from $53.5 million and adjusted EBITDA margin expanded 250 basis points to 14.3%, supported by better job mix, modest pricing gains and operating leverage.
• RPC’s differentiated technology businesses showed momentum, with ThruTubing Solutions revenue up 10% and Cudd Pressure Control revenue up 8%; MetalMax, UnPlug and longer-lateral applications are expanding the addressable market for downhole tools.
• The company is accelerating targeted coiled-tubing investments, expecting three 2 7/8-inch-capable units by year-end, while maintaining a strong liquidity position with approximately $180 million of cash, only $30 million of notes payable and no revolver borrowings.
• Industry activity remains subdued and management does not expect a significant near-term improvement; wireline revenue fell 16% sequentially amid customer activity reductions and aggressive competitor pricing, while pressure pumping revenue declined 1% and no fleets are planned for reactivation at current market levels.
• CEO Ben Palmer plans to retire and leave the board by the end of 2026, with a successor search expected to conclude before year-end; Palmer will remain in an advisory role to support the transition.

RPC Stock Performance

RES traded up $0.24 on Thursday, hitting $5.37. 871,034 shares of the company traded hands, compared to its average volume of 2,133,640. The company has a 50 day moving average of $6.27 and a 200-day moving average of $6.48. RPC has a 12-month low of $4.18 and a 12-month high of $8.16. The company has a quick ratio of 2.61, a current ratio of 3.13 and a debt-to-equity ratio of 0.03. The stock has a market capitalization of $1.19 billion, a PE ratio of 59.72 and a beta of 0.64.

Institutional Trading of RPC

Several hedge funds and other institutional investors have recently made changes to their positions in RES. Dimensional Fund Advisors LP lifted its position in RPC by 1.9% in the fourth quarter. Dimensional Fund Advisors LP now owns 11,660,219 shares of the oil and gas company’s stock valued at $63,432,000 after purchasing an additional 213,956 shares during the period. State Street Corp boosted its stake in shares of RPC by 6.1% in the fourth quarter. State Street Corp now owns 4,049,407 shares of the oil and gas company’s stock valued at $22,029,000 after buying an additional 233,646 shares in the last quarter. IES Holdings Inc. acquired a new position in RPC during the fourth quarter worth $14,144,000. Van ECK Associates Corp raised its position in RPC by 13.0% in the fourth quarter. Van ECK Associates Corp now owns 2,508,890 shares of the oil and gas company’s stock worth $13,648,000 after acquiring an additional 288,917 shares in the last quarter. Finally, Goldman Sachs Group Inc. lifted its holdings in RPC by 103.2% in the fourth quarter. Goldman Sachs Group Inc. now owns 1,882,657 shares of the oil and gas company’s stock valued at $10,242,000 after acquiring an additional 956,370 shares during the period. Hedge funds and other institutional investors own 41.06% of the company’s stock.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on RES shares. Susquehanna dropped their price target on shares of RPC from $7.50 to $6.00 and set a “neutral” rating on the stock in a research note on Wednesday, July 8th. Weiss Ratings restated a “hold (c)” rating on shares of RPC in a report on Friday, July 10th. Three investment analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of “Reduce” and a consensus price target of $5.33.

About RPC

RPC, Inc (NYSE: RES) provides essential equipment and services to companies engaged in the exploration, production and maintenance of oil and natural gas wells. The firm operates as an equity interest holding company, partnering with a network of independent service businesses to deliver a comprehensive suite of offerings for well completion and production operations.

Through its affiliated service companies, RPC offers pressure pumping and fracturing services, coiled tubing and nitrogen pumping, downhole tools and telemetry solutions, well intervention and workover services, along with rental tools and supply-chain logistics.