RPC Q2 2023 Earnings Call Transcript

Quartr
Provided by Quartr
July 26, 2023

There are 9 speakers on the call.

Operator

Morning and thank you for joining us for RPC, Inc. 2nd Quarter 2023 Financial Earnings Conference Call. Today's call will be hosted by Ben Palmer, President and CEO and Mike Schmidt, Chief Financial Officer. Also hosting is Jim Landers, Vice President of Corporate Services. At this time, all participants are in listen only mode.

Operator

Following the presentation, we will conduct a question and answer session. Instructions will be provided at that time for you to queue up for questions. I would like to advise everyone that this conference call is being recorded. Jim will get us started by reading the forward looking disclaimer.

Speaker 1

Thank you, and good morning. Before we begin our call today, I want to remind you that in order to talk about our company, we're going to mention a few things that are not historical facts. Some of the statements that we've made on this call could be forward looking in nature and reflect a number of known and unknown risks.

Speaker 2

I would like to refer you

Speaker 1

to our press release issued today along with our 2022 10 ks and other public filings that outline those risks, all of which can be found on RPC's website at rpc.net. In today's earnings release and This call, we'll be referring to several non GAAP measures of operating performance. These non GAAP measures are adjusted net income, Adjusted diluted earnings per share, adjusted operating profit, EBITDA and adjusted EBITDA. We're using these non GAAP measures today because they allow us to compare performance consistently over various periods. In addition, RPC is required to use EBITDA to report compliance with financial covenants under our revolving credit facility.

Speaker 1

Our press release from this morning and our website contain reconciliations of these non GAAP measures to operating income, Net income and diluted earnings per share, which are the most directly comparable GAAP measures. Please Review these disclosures if you're interested in seeing how they are calculated. If you've not received our press release for any reason, Please visit our website at rpc.net for a copy. I will now turn the call over to our President and CEO, Ben Palmer. Thanks, Jim,

Speaker 2

and thank you for joining our call this morning. As we announced several weeks ago, RPC acquired Spinnaker, Leading provider of oilfield cementing services in the Permian and Mid Continent Basins. As we began the integration of Spinnaker into our operations, we Finneker runs a great business, yet they can benefit from some of our buying power as well as operating synergies we can provide. Turning to a discussion of RPC's 2nd quarter, business began much like the Q1 finished, but ended with a very challenging June. Since a large percentage of our hydraulic fracturing is spot or partially dedicated work, we were impacted by some customers deferring planned activity later in the year.

Speaker 2

This resulted in lower utilization during June and has carried forward into the 1st part of the third quarter. However, we have already seen signs of improvement on our frac calendar later in the year. While our other business lines Have seen some recent pockets of weakness predominantly in gassy basins. They too are expecting activity to improve. Our participation in the entire suite of completion services provides us with a diversity in both number of customers and customer profile that balances the more heavily concentrated exposure of our fracturing business.

Speaker 2

I would like to point out that RPC has initiated a digital transformation designed to improve the company's operating and cost efficiencies. This extensive and multiyear undertaking aims to change the way we manage maintenance, Personnel and equipment as well as our back office functions. We expect this effort will greatly improve our Our CFO, Mike Smith will discuss the quarter's financial results, After which, I will provide some closing comments.

Speaker 3

Thanks, Vince.

Speaker 4

I'll start with the 2nd quarter 2023 sequential financial overview. 2nd quarter revenues decreased to $415,900,000 from $476,700,000 in the prior quarter. The decrease in revenues was largely driven by pressure pumping customers postponing or curtailing their drilling and completion activities, as Ben mentioned. This was combined with weaker activity levels in the natural gas directed basins impacting many of RPC's other service lines. Cost of revenues during the Q2 also decreased to $265,800,000 from $305,300,000 in Prior quarter.

Speaker 4

As a percentage of revenues, cost of revenues in the 2nd quarter was 63.9%, which was relatively the same as the 64% in the prior quarter. Selling, general and administrative expenses increased to $43,600,000 in the 2nd quarter compared to $42,200,000 in the 1st quarter. This increase included cost of a settlement of a vendor dispute and costs associated with the Spinnaker acquisition, partially offset by a reduction in payroll tax related costs. In connection with the termination of our pension plan, RPC recorded a non cash pension settlement charge of $911,000 in the 2nd quarter compared to a $17,400,000 charge in the prior quarter. We do not anticipate any remaining significant charges in the future quarters associated with the pension plan termination.

Speaker 4

Operating profit during the 2nd quarter decreased by 9.1% to $82,400,000 from $90,700,000 in the prior quarter. Adjusted operating Profit was $83,300,000 in the 2nd quarter, a 22.9% decrease compared to $108,000,000 in the prior quarter. Adjusted EBITDA also decreased by 17.2 percent to $110,100,000 $132,900,000 in the prior quarter. Our Technical Services segment revenues decreased by 13.7% to $390,000,000 This segment generated $77,000,000 of operating profit compared to $103,500,000 in the prior Support services revenues increased by 4.7% during the Q2. Operating profit was $7,900,000 compared to $6,600,000 in the prior quarter.

Speaker 4

Now I'll discuss our current quarter results compared to the same quarter in the prior year. Results increased to $415,900,000 from $375,500,000 Adjusted operating profit increased to $83,300,000 from an operating profit of $60,400,000 Adjusted EBITDA increased to $110,100,000 from EBITDA of $80,600,000 These increases were driven by higher customer activity levels and improved pricing, resulting in our adjusted diluted earnings per share improving to $0.30 compared to $0.22 in the same quarter last year. Our Technical Services segment revenues increased 9.5 percent to $390,000,000 Our Support Services segment revenues increased 28.7 percent to $25,800,000 And segment operating profit increased to $7,900,000 from $3,300,000 Now I'll discuss our capital expenditures and horizontal pressure pumping fleet count. Capital expenditures were $39,200,000 in the 2nd quarter. This includes new Tier 4 dual fuel equipment that was placed in the service during Well, a similar amount of older equipment was sent out for refurbishment.

Speaker 4

We currently estimate full year 2023 capital expenditures be between $200,000,000 $250,000,000 excluding the purchase of Spinnaker. In the latter part of the second quarter, We implemented cost reductions, including a small scale layoff and other cost control measures. This layoff is not expected to significantly impact our ability to respond to customer needs and we remain staffed to operate 10 horizontal frac fleets. During this period of reduced activity, we intend to closely monitor and manage our cost structure. I'll now turn it back over to Ben for some closing remarks.

Speaker 2

Thanks, Mike. Although we've encountered a near term air pocket, we are optimistic We are already observing encouraging indications from both our frac calendar and our sales teams and other service lines, Both point towards a resurgence of activity as the year progresses. This morning, we announced a regular quarterly cash dividend of $0.04 per share as we continue to maintain a conservative capitalization and shareholder friendly capital return practices. During the second We did not repurchase any RPC stock because of our self imposed trading blackout pending the closing of the Spinnaker transaction. We financed this acquisition with cash, which has been building on our balance sheet for several quarters.

Speaker 2

Notwithstanding the acquisition of Spinnaker, we will continue to Our capital allocation alternatives, including share repurchases, dividends, capital expenditures and acquisitions as methods to maximize our returns on invested capital as well as reward our shareholders for their investment in RPC. Thanks for joining us this morning. And at this time, we are happy to address any questions.

Operator

Thank you. We'll go first to John Daniel at Daniel Energy Partners.

Speaker 5

Hey, good morning guys. Thank you for including me. I'll just start with the

Speaker 2

activity if Possible.

Speaker 5

Can you say how many fleets you're running today? And then where based off the calendar, how many fleets you would Expect to be running back half of the year?

Speaker 2

Well, John, this is Ben. Relative to the back half of the year, again, we're staffed, are fully staffed for we have not reduced we were able to staff all of our equipment as we have in the last couple of quarters and we Expect to require that later in the year. In the current I don't want to provide specific guidance, but certainly But in terms of where we are right now, we have had a number of customers that have Deferred some of their completion activities till later in the year for various reasons. We've had some Impact by some acquisitions where some of our customers have reassessing their plans and again pushing their activity later in the year. So we feel we do feel good about the frac calendar later in the year.

Speaker 2

We've had a lot of discussions and feel that there are Reasons for the delays, but commitments from our customers that they are going to resume their activity.

Speaker 5

Fair enough. And on this next I'm sure you probably will avoid the granularity, which is fine. But broadly speaking, as you talk to people out in the field, you hear of some fairly significant spot market Pricing pressures. And my question is just how broad based are those across the various service lines? And if concessions have been made, how quickly can you recover those concessions?

Speaker 5

Just your thoughts.

Speaker 2

Let me respond and then I'll let my other 2 teammates here elaborate. The concessions within fracturing has been more significant than the other service lines. There are some service lines who have given little to no concessions, some have given minor concessions, but as I indicated, fracturing has been More significantly impacted here in the short term. And in terms of regaining that, that's very hard to say with oil prices Remaining firm and maybe strengthening, perhaps we'll have a similar The strengthening that we had in the early part of 'twenty two, early part of 'twenty two to mid 'twenty two and I'm hopeful, but we're not counting on it, but hope that maybe it will firm back up reasonably quickly as we move into 'twenty four.

Speaker 5

Okay. Thank you. And then if I could squeeze one final one in. Yes, go

Speaker 6

ahead, John.

Speaker 1

Hey, John, this is Jim. Anytime there's an air pocket or any weakness, there are always going to be bad actors, who are going to price Very aggressively. We've seen a little bit of that very recently. But for us, our bias is more towards Being idle, then reducing pricing.

Speaker 7

Okay.

Speaker 5

Fair enough. And then the last one for me and I'll turn it over. With the Spinnaker acquisition, when you start reporting the revenues, is it going to be your number 2 or number 3 or number 4 Segment, can you just throw that out there for us?

Speaker 2

Yes, we'll give that in a second. It will be 4.

Speaker 5

Okay. On a pro form

Speaker 2

a basis.

Speaker 5

All right. Thank you. I'll turn it over.

Speaker 3

Sure.

Operator

We'll take our next question from Stephen Gengaro at Stifel.

Speaker 3

Thanks. Good morning. Good morning, Steve. Maybe a start just to follow-up on John's question. Can you give us the segment breakdown and then maybe slot Spinnaker in there in some manner?

Speaker 1

Sure, Steven. Thank you for the question. So I'm going to start with actual second quarter. So what I'm about to describe is the percentage of revenue that our top service lines comprised as a percentage of total consolidated RPC revenue. Yes, actual.

Speaker 1

So number 1 was pressure pumping at 50.5 percent of revenue. Number 2 was Downhole Tools, which was our 3 Tubing Solutions service line. That was 24.4 percent of revenue. Number 3 is coiled tubing at 9.2 percent of revenue. Number 4 is Rental Tools, which is in our Support Service segment, but it was 4.4% of consolidated RPC revenue.

Speaker 1

Number 5 is nitrogen, 3.1 percent of revenue. Number 6 is snubbing at 1.8% of revenue. And number 7 is cementing at 1.4 percent of revenue. Now that does not include Spinnaker because we did not own it during the Q2. If we had owned Spinnaker during the Q2, cementing would have been our number 4 service line At 7.4 percent of consolidated revenues.

Speaker 3

Great. That's great color. Thank you. When we think about the business and I think, Jim, you might have just mentioned there's been some bad actors In a downturn, we've seen, at least on the pressure pumping side, a lot of consolidation, a lot of equipment in the hands of the biggest players. It feels like others have indicated that behavior has been generally better than prior cycles.

Speaker 3

Are you not seeing that? Are you talking about maybe some smaller product lines? Where there's been some bad actors? I'm just trying to Triangulate the commentary.

Speaker 1

No, we would agree my comment related to just some anecdotes Small private pressure pumpers pricing very aggressively over the past month or so. Not I think we share the opinion everybody else has that market structure is improving in pressure pumping and the larger companies are maintaining discipline. Again, as we are, again, we'd rather idle fleets during this time than take pricing concessions. We do believe this air pocket is just that and is temporary, and we'd rather bring back fleets at Current pricing and then take concessions and try to fight that back.

Speaker 3

Great. Thank you. And then just one final On the margin front, the decrementals in the quarter, I think, were around 40% For company wide, I think that's right, maybe a touch higher for I think that's about right. How do we think about like I knew there were some headwinds in the quarter from some costs, but how do we think about the margin profile And the decrementals going forward, should they be more normal versus historical levels? Should they be outsized short term?

Speaker 3

How do we think about that?

Speaker 2

Well, these are all Very reasonable questions. I would say too, this has come upon us pretty suddenly. As I said, it was kind of mid to late June when a lot of this began to unfold, so exactly where it's all going to lay out, we don't know. But again, Referring back to the comments about we do have specific customer discussions and are quite comfortable that we're going to have better activity And the latter half, 3rd quarter could be difficult. We're still working on as we always do, but working Filling out the white space and preparing for the more busy Q4.

Speaker 2

So the decrementals were pretty large. We tend to when we schedule out, we did have some we referred to some of our SG and A costs, that settlement of that vendor's dispute. We didn't schedule that out. That was not an insignificant amount. Even though SG and A was relatively flat on a Sequential basis, it would have been down if not for that cost and the cost of the Spinnaker acquisition, but we didn't schedule that out For EBITDA purposes, that's just more useful the way we do things.

Speaker 2

But so I think that we don't expect that headwind something like That in the Q3 and if that's not there, certainly the decrementals would not be as significant. I'm not answering the question directly, But anytime you enjoy nice incrementals when you have a nice revenue bounce and You're impacted by large decrementals when you have a revenue decline. So it'll be a challenge, But we're looking forward to getting through this little air pocket and on to a little more stable times.

Speaker 3

Thanks. I understand there's a lot of moving pieces, but thanks for the color.

Speaker 2

Yes. Thank you, Steve. Thanks.

Operator

We'll take our next question from Don Crist at Johnson Rice.

Speaker 6

Good morning, gentlemen. I just wanted to ask A quick question about modeling the Spinnaker acquisition. And I'll give you 2 options as to how you want to give it to us. But Obviously, cementing was 1.4 percent of revenue in the second quarter. Either how many Fleets you had running cementing fleets you had running in the second quarter or kind of what the revenue impact would be Per fleet of the 18 that you're adding from Spinnaker, just where we can model properly for Spinnaker Coming in, in the Q2.

Speaker 4

Yes. Yes. This is Mike. We had 4 running In the quarter? And so that will increase pretty significantly after spinnaker is in the next quarter.

Speaker 2

And our existing cementing business Performed reasonably comparable. I think the larger Spinnaker, we disclosed that they have at 18 Spreads at the time of the purchase, they created a little bit more leverage given their size, but the results And revenue was not dissimilar per spread. Yes.

Speaker 6

Okay. And I'm assuming that the majority of those Teens are running today? Yes. Okay. That's all I had.

Speaker 6

Thank you.

Speaker 2

Thanks. Yes, I might point out with respect to many of you probably know the cementing business, we've not yet seen any impact There to any significant degree, cementing tends to not be a it tends to be a little less volatile than fracking. So That's another benefit of having that little growth opportunity that we see them remaining Pretty strong for the next several months.

Operator

We'll go next to Don Dasher at Pinnacle.

Speaker 7

Hi, good morning. Just following up on the Spinnaker deal, just working through the math, it looks like that business is Perhaps a $90,000,000 to $100,000,000 a year business, is that fair?

Speaker 2

That's a good guess.

Speaker 7

Okay, fair enough.

Speaker 2

Good calculation.

Speaker 7

Okay, good. And what's the margin profile of that on an EBIT basis? I realize there's cyclicality involved, but kind of on a go forward basis, what would a reasonable EBIT margin be for that?

Speaker 2

Well, EBITDA or even let me talk EBITDA margin. It is as we've talked about, it's a Great business. We do they were appropriately staffed. I don't want to say thinly But they were appropriately staffed, so we really don't have any opportunities to take any costs out. We think we can bring some operational efficiencies, some Leverage some of our procurement trucking that kind of activity that we think can provide some level of incremental benefit.

Speaker 2

But I would say that the EBITDA margins for this particular cementing business and our existing business had Margins that are similar to what we were experiencing overall within technical services, Say in the Q2, it's pretty good. And we like the fact that So the CapEx requirements are quite a bit lower from a maintenance CapEx perspective. Certainly, if we grow it, it will require some CapEx, nothing like fracturing, but from a maintenance CapEx perspective, it has a very nice free cash flow profile.

Speaker 7

Okay, great. That's helpful. What were the EBITDA margins for Technical Services in the 2nd quarter?

Speaker 1

Give us a second here, John.

Speaker 7

Yes, that's fine.

Speaker 2

25% to 30% and probably upper end of that range.

Speaker 7

Okay, great. And finally, who was the seller of Spinnaker?

Speaker 2

Catapult was the direct owner. They are not familiar exactly with all the structure, but Natural Gas Partners was the ultimate parent, if you will. I don't know if that's the right way to describe it or not, the catapult. Both entities were great to work with. They did a great job creating that company established in 2014.

Speaker 2

They've grown it nicely, especially over the last 3 years or so. We're lucky to have them, glad to have.

Speaker 7

Okay, great. Was it an auction process?

Speaker 2

No. It was. Yes, it was.

Speaker 7

It was an auction process. Okay, great. Very good. I appreciate the help.

Speaker 4

Thank you. Thanks, John.

Operator

We'll go next to John Daniel at Daniel Energy Partners.

Speaker 5

You guys are very gracious for putting me back in. Thank you.

Speaker 3

Absolutely, John.

Speaker 5

Well, it's early in the morning, so it gives me something to do. Hey, on the CapEx budget, it looks like you brought it down to $200,000,000 to $250,000,000 from the original guidance, I think, of $250,000,000 to $300,000,000 which would make sense. I fully understand you haven't done your 20 24 budget, yes, but based off what you see today and your expectations, would you envision a spend in 2024 being higher or lower or the same as the current guidance

Speaker 1

Don, we're looking at each other here trying to think that one out.

Speaker 5

And I know it can change like 10 times from now, but I'm just curious.

Speaker 1

Yes, probably similar because as you know, we're on the schedule of refurbishing Frac fleets and that should continue in 2024. So that's a chunk

Speaker 2

of capital. We have a roadmap for our pressure pumping fleet depending upon the level of Usage of it, right, when we expect the pumps to wear completely out or be require the refurbishment. The swing factor for next year, I think Jim's response is it should be similar. I think on overall basis that's probably true. The swing factor is going to be if we were to take delivery of a new fleet in 2024.

Speaker 2

And As we sit here right now and think about what we hope is going to happen later this year and expect into 2024, I would suspect that probably the upper end of the current range may be more appropriate. I think we probably will acquire a new fleet sometime in 2024.

Speaker 5

Got it. And then the last one for me is when you think about the frac market, which is where the most pronounced spot pricing pressures are. And if you look at the competitive landscape, most of the small people that are bringing the prices down are the 2 to 3 fleet type companies, I suspect, some of whom were created with legacy equipment, used equipment during coming out of the downturn. It would seem the viability of some of those businesses is going to get called into question because my gut would say that spot pricing doesn't recover quickly. So you got a bit of a Knife fight for several quarters here, which then raises the opportunity set for consolidation.

Speaker 5

Is that something you would You envision seeing happening and would you be willing to participate in that?

Speaker 2

There's certainly a lot of discussion about consolidation in terms of buying up some of the smaller players that we've obviously had Excuse me, lots of opportunities for that over the years. The question always becomes the condition of the equipment and that's something that We kind of have heartburn over.

Speaker 1

Sure.

Speaker 2

I thought more consolidation would be helpful. Obviously, we know we've got the one big one that was announced a month or 2 ago,

Speaker 5

and

Speaker 2

I think will help, right, that even the Announcement and then beginning to work together to put the 2 companies together, I think that should be a net beneficial for the frac industry. So we would certainly encourage it. And whether we participate, that's hard to know. But Looking for opportunities and looking for ways to position ourselves such that we can benefit from it. Let me just mention from a pricing perspective that As we were coming out of the downturn in 2020 2021, we were very disciplined about trying to understand how we were pricing our jobs And the type of contribution we were receiving from those jobs before we committed to staff new fleets and began to market new fleets, right.

Speaker 2

So we didn't want to go from we didn't want to just put the staff fleets out there and do whatever we had to do to get them working. We tried to be very disciplined about the About the fleets coming back and that worked very well for us. We have implemented a very similar Discipline going the other way, right? If we are not able to generate a minimum level of Return, obviously, we have to make judgments about what we think the level of activity is going to be in the future. And right now, we think it's going to be sufficient For us to maintain our current staffing level, but if we see based on the pricing opportunities, if the pricing opportunities are Too low.

Speaker 2

We do not have a problem stacking some fleets. At this point, we have not done that. We're not working our fleets at any whatever price, right? We are remaining disciplined, but we will back fleets if we foresee There's not enough opportunity to keep those fleets busy at a certain level of pricing.

Speaker 5

So we're

Speaker 2

going to remain During that process, it looks like we did the upside.

Speaker 5

Yes. That's the benefit of having no debt and enough cash. Some people don't have that. Okay, guys. Thank you.

Speaker 2

Thank you, John. Thanks, John.

Operator

We'll take our next question from Derek Podhaeser at Barclays.

Speaker 8

Hey, I was wondering if you can give us some examples that give you confidence that activity will recover as the year progresses. Is it just conversations with your customers? Or are you seeing fleets or rigs actually being committed on the calendar?

Speaker 2

Good question. It's more firm than that. We've had Specific conversations with customers, given us reasons why they delayed and what their plans are to start back up. Certainly, we were we've had the conversations about that, right? Nobody's customer is not going to tell you 3 months out Hey, 3 months out from now, I'm not going to work.

Speaker 2

I have work scheduled and I'm going to tell you in advance, they're not going to do that. So we've had conversations. We're comfortable things could change. If oil prices don't remain firm, they will reassess their plans. But at this point, if they remain firm, We're comfortable that things will recover nicely for us.

Speaker 8

Got it. That's helpful color. So for your mix of fleets between diesel and dual fuel, how has that changed heading into 2024? So by the end of the year, I know you're referring. So by the end of 2024 versus the start of 2023.

Speaker 8

I'd assume your fleet has increased towards that next gen dual fuel away from diesel. And with this mix shift lend itself to put more of your fleet on the dedicated market versus spot as we move into 2024?

Speaker 2

Good question. We are on a spectrum of increasing our DTV and Tier 4 fleet, it has not changed significantly at this point. It is

Speaker 1

a little bit

Speaker 2

more ESG friendly than it was at the beginning of the year. We're going to continue that process in accordance with our roadmap. We're not going to get ahead of ourselves, right? We're looking at our returns. We're looking at the age and condition of the equipment.

Speaker 2

We don't want to race to get there. We'll get there when the economics tell us to get there. Our experience with many of our customers are that the fuel substitution Is somewhat important, not as important as many people talk about, at least for our customers. At this point, we think that will change. We think it will become more in demand.

Speaker 2

We Like our customer mix, we actually the way we analyze our market, we actually think we have we call it partially dedicated People who are running 4 to 5 or more rigs, they're maybe not running 10 or 15 or 20, but they have a reasonable amount of activity. And I think that group is a little Less impressed with or less influenced by the fuel substitution. So We have some pretty fuel efficient equipment that they tend to like. They like the efficiency as much as they like The ESG benefits. So I think that has served us well and we'll continue to serve that market, But we will continue along that pathway that we will have more ESG friendly equipment as we approach mid-twenty 24 and the end of twenty 24.

Speaker 8

Got it. Okay. That's helpful. And then just lastly, I know you mentioned that you expect to acquire a new fleet in 2024. Would you would that be a New build Tier 4 DGB or would that be your entry into e frac?

Speaker 2

Good question. This is Ben. I would expect next year at this point it would be another DGB, e frac for us. We're certainly Evaluating that market, staying close to that market, but as I said to our customers, the fuel substitution is not of great importance to them. And I would say the e fleets are even less important.

Speaker 2

So it's something we will eventually get into Once we're convinced that there's proven technology and that we have Sufficient customer demand for it, we'll make that commitment. But at this point, we're still in a wait and see mode.

Speaker 8

Great. Appreciate all the color. I'll turn it back.

Speaker 4

Thank you. Thanks, Derek.

Operator

And we have no further questions at this time. I would like to turn the conference back over to Jim Landers.

Speaker 1

Thank you. And thanks to everybody who called in to listen and thanks for the questions. We enjoyed the conversation. Hope everybody has a good day and we'll see you soon.

Operator

This concludes today's conference call. I would like to remind everyone that there will be a replay on www.rpc.net within 2 hours following the completion of this call. Thank you for your participation. You may now disconnect.

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Key Takeaways

  • During Q2 revenues declined sequentially to $415.9 million, driven by spot hydraulic fracturing customers deferring June work and weaker gas-basin activity, though management expects fracturing utilization to rebound later in the year.
  • RPC completed the acquisition of Spinnaker, a leading Permian and Mid-Continent cementing services provider, and is integrating the business to capture buying-power and operating synergies; cementing would represent 7.4 percent of pro forma revenues.
  • The company launched a multiyear digital transformation initiative to overhaul maintenance, personnel deployment, equipment management and back-office processes in order to boost operating and cost efficiencies.
  • On a year-over-year basis, Q2 revenues and adjusted EBITDA rose to 415.9 million and 110.1 million respectively, lifting adjusted EPS to 0.30 from 0.22 thanks to higher activity and improved pricing.
  • RPC trimmed full-year Capital Expenditure guidance to 200–250 million excluding Spinnaker, implemented targeted cost reductions while maintaining staffing for ten frac fleets, declared a 0.04 per share dividend, and retains flexibility for share repurchases and further acquisitions.
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Earnings Conference Call
RPC Q2 2023
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