NYSE$RES

Rpc Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Announced first quarter 2020 financial results, reflecting lower revenues and operating loss due to decreased activity and pricing.

RPC Inc. reported a decrease in revenues and a significant operating loss for the first quarter of 2020, driven by lower activity levels, pricing pressures, and impairment charges. The company is implementing cost reduction measures to address the downturn.

  • Revenues decreased by 27.2% compared to the first quarter of 2019 due to lower activity levels and pricing.
  • Operating loss was $218.7 million, compared to an operating loss of $2.2 million in the same period of the prior year.
  • Net loss was $160.4 million, or $0.76 loss per share, compared to a net loss of $739 thousand, or $0.00 per share, in the first quarter of 2019.
  • The company ended the quarter with $82.6 million in cash and a debt-free balance sheet and is reducing capital expenditures.

Headline financials

Total Revenue

$244M

Previous: $335M-27.2%
EPS (adj)

-$0.04

Previous: -$0.00-1062.8%
U.S. rig count (avg)

785

No prior period
Oil price ($/barrel)

$47.23

No prior period
Natural gas ($/Mcf)

$1.92

No prior period
Capital Expenditures

-$25M

Previous: -$62.3M+59.8%
Free Cash Flow

-$185M

Previous: -$63M-194.3%
Net Income

-$160M

Previous: -$739K-21608.1%
Operating Income

-$219M

Previous: -$2.16M-10020.6%
Gross Profit

$61.8M

Previous: $82.3M-24.8%
Cash & Equivalents

$82.6M

No prior period
Total Assets

$869M

No prior period
Stock-Based Comp

$2.1M

No prior period

Revenue & EPS history

Rpc · Revenue · Quarterly

$244M

Q1 2020-27.2%vs Q1 2019
Beat estimate in 2 of 16 quarters(13%)
ActualEstimate

Forward guidance

RPC is focused on managing costs and adjusting its operations in response to the downturn in the oilfield services market. The company has reduced its workforce, adjusted compensation, lowered expenses, and decreased capital expenditures to endure the downturn.

Tailwinds

  • Implemented strict procedures to ensure the health and safety of employees, customers, and vendors.
  • Streamlined operations, including a smaller geographic footprint.
  • Made progress in pressure pumping, with efficient operations for several high-utilization customers.
  • Ended the first quarter with $82.6 million in cash and a debt-free balance sheet.
  • Projected 2020 capital expenditures will be approximately $50 million, down from a prior forecast of approximately $80 million.

Headwinds

  • Customers began to cancel current and scheduled drilling and completion activities.
  • The domestic rig count began to decline precipitously.
  • Oilfield operators announced significant capital expenditure reductions.
  • The oilfield is being impacted by both an increase in oil production and a severe decrease in demand.
  • Reduced workforce, instituted compensation adjustments, lowered expense structure, and decreased capital expenditures.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.1%

Avg return

Earnings day

-0.5%

Avg return

5 days after

-1.4%

Avg return

30 days after

52%

34 / 66 earnings

Positive

+21.4%

Q2 2022

Best reaction

-18.3%

Q1 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.4%-4.3%-7.9%
Q4 2025-17.4%-12.8%-7.4%
Q3 2025+11.6%+8.4%+6.4%
Q2 2025-3.9%-5.0%-3.0%
Q1 2025+0.8%+1.0%-8.3%
Q4 2024-3.9%-0.5%-13.1%
Q3 2024-5.1%-7.9%+2.2%
Q2 2024+20.6%+27.7%+12.3%
Q1 2024-10.1%-15.5%-14.4%
Q4 2023+7.4%+10.4%+5.1%
Q3 2023-4.6%-3.5%-14.7%
Q2 2023-7.9%-7.1%-10.0%
Q1 2023-2.2%-0.5%-4.4%
Q4 2022+10.6%+11.9%+2.3%
Q3 2022+4.3%+20.6%-1.0%
Q2 2022+21.4%+19.6%+26.9%
Q1 2022-0.6%-4.5%-13.6%
Q4 2021-0.8%-1.8%+39.5%
Q3 2021-2.1%-5.5%-28.0%
Q2 2021+0.0%-6.6%-8.7%
Q1 2021+0.8%+4.0%-1.8%
Q4 2020+18.9%+27.4%+64.1%
Q3 2020-11.7%-3.8%+28.3%
Q2 2020-1.9%-1.6%+3.5%
Q1 2020+0.3%+2.6%+35.5%
Q4 2019+2.0%-9.2%-25.1%
Q3 2019-8.6%-11.6%-31.0%
Q2 2019-9.9%-15.9%-20.5%
Q1 2019-18.3%-17.5%-37.9%
Q4 2018-4.2%-4.7%-5.3%
Q3 2018-1.9%+1.4%-1.7%
Q2 2018+1.8%+7.4%+3.6%
Q1 2018-5.0%-4.1%-10.1%
Q4 2017-15.0%-19.4%-20.5%
Q3 2017+3.0%+7.0%+4.2%
Q2 2017+2.1%-1.3%-11.0%
Q1 2017+2.1%+2.3%+8.0%
Q4 2016+0.6%-1.3%-10.1%
Q3 2016+0.4%-3.9%+1.7%
Q2 2016-1.5%-3.4%+9.2%
Q1 2016+4.9%
Q4 2015+8.8%
Q3 2015+2.6%
Q2 2015+1.9%
Q1 2015+2.1%
Q4 2014-4.3%
Q3 2014-3.1%
Q2 2014+6.0%
Q1 2014+3.8%
Q4 2013-9.3%
Q3 2013+6.4%
Q2 2013-5.2%
Q1 2013-12.7%
Q4 2012+6.1%
Q3 2012-1.3%
Q2 2012+1.1%
Q1 2011-0.1%
Q1 2012+9.2%
Q4 2009+0.9%
Q4 2011+0.9%
Q3 2011+9.4%
Q3 2010+9.4%
Q4 2010-3.3%
Q2 2010-3.3%
Q2 2011-3.3%
Q1 2010+1.3%

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