NYSE$RES

Rpc Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

RPC's financial performance declined due to reduced drilling and completion activity, particularly in natural gas-directed basins.

RPC reported a decrease in revenues and profits for Q2 2023 compared to the previous quarter, primarily due to job delays, cancellations by pressure pumping customers, and weaker activity in natural gas basins. However, revenues increased compared to the same quarter last year due to improved pricing and higher activity levels.

  • Revenues for Q2 2023 were $415.9 million, a decrease compared to $476.7 million in Q1 2023.
  • Net income for Q2 2023 was $65.0 million, or $0.30 diluted earnings per share, compared to $71.5 million, or $0.33 diluted earnings per share, in Q1 2023.
  • Operating profit for Q2 2023 was $82.4 million compared to $90.7 million in the first quarter.
  • RPC acquired Spinnaker Oilwell Services to expand its cementing business.

Headline financials

Total Revenue

$416M

Previous: $376M+10.7%
EPS (adj)

$0.30

Previous: $0.22+36.4%
Capital Expenditures

-$104M

Previous: -$50.6M-106.6%
Free Cash Flow

-$39.5M

Previous: -$3.64M-984.8%
Net Income

$65M

Previous: $46.9M+38.5%
Operating Income

$82.4M

Previous: $60.4M+36.3%
Gross Profit

$150M

Previous: $115M+31.0%
Cash & Equivalents

$101M

Previous: $78.2M+28.5%
Total Assets

$1.23B

Previous: $965M+27.3%
Stock-Based Comp

$2.32M

Previous: $1.7M+36.6%

Revenue & EPS history

Rpc · Revenue · Quarterly

$416M

Q2 2023+10.7%vs Q2 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Forward guidance

RPC believes the slowdown in drilling and completion activity is temporary and is taking cost-cutting measures.

Tailwinds

  • Acquisition of Spinnaker Oilwell Services will significantly expand cementing business.
  • Integration of Spinnaker is progressing well.
  • Improved pricing for services.
  • Higher customer activity levels.
  • Larger active fleet of revenue-producing equipment.

Headwinds

  • Decline in drilling and completion activity, particularly in natural gas-directed basins.
  • Job delays and cancellations by several pressure pumping customers.
  • Weaker activity levels in most natural gas-directed basins.
  • Prudent cost-cutting measures are being taken to better align cost structure to activity levels.
  • Slowdown in drilling and completion activity.

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 Q2 2023

Historical avgQ2 2023

+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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