NYSE$RES

Rpc Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

RPC's Q4 2023 financial performance reflected a strong sequential improvement, driven by increased pressure pumping activity, but was tempered by a late-year slowdown due to falling oil prices.

RPC, Inc. reported a strong sequential improvement in its fourth-quarter financial results, with revenues increasing by 19% to $394.5 million and net income rising to $40.3 million, or $0.19 per diluted share. The company's performance was driven by higher pressure pumping fleet utilization, though activity slowed during the December holiday season due to declining oil prices. RPC remains debt-free with a solid cash balance.

  • Revenues increased 19% sequentially to $394.5 million.
  • Net income was $40.3 million, with diluted earnings per share (EPS) of $0.19.
  • Adjusted EBITDA was $79.5 million, up 53% sequentially.
  • Company acquired the Spinnaker cementing business effective July 1, expanding RPC’s existing cementing operations and customer relationships.

Headline financials

Total Revenue

$395M

Previous: $482M-18.2%
EPS (adj)

$0.19

Previous: $0.41-53.7%
Adjusted EBITDA margin

20.1%

No prior period
Capital Expenditures

-$32.2M

Previous: $49.3M-165.3%
Net Income

$40.3M

Previous: $87M-53.7%
Operating Income

$49.2M

Previous: $112M-56.2%
Gross Profit

$85.7M

Previous: $151M-43.2%
Stock-Based Comp

$1.85M

Previous: $1.61M+14.7%

Revenue & EPS history

Rpc · Revenue · Quarterly

$395M

Q4 2023-18.2%vs Q4 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Forward guidance

RPC anticipates placing a new Tier 4 dual-fuel fleet in service by the end of the second quarter of 2024. The company expects to continue capital returns to shareholders through dividends and opportunistic share buybacks. RPC is actively assessing additional acquisition opportunities to bolster selected service lines, increase scale, and enhance growth outlook.

Tailwinds

  • New Tier 4 dual-fuel fleet on order and anticipate placing it in service by the end of the second quarter of 2024, replacing a Tier 2 diesel fleet.
  • Over $220 million in cash on the balance sheet, are highly liquid, debt-free, and capable of navigating an uncertain environment.
  • Solid financial position supports targeted organic investments.
  • Continued capital returns to shareholders through both dividends and opportunistic share buybacks.
  • Actively assessing additional acquisition opportunities to bolster selected service lines, increase our scale, and enhance our growth outlook

Headwinds

  • Customer demand followed suit and we experienced a more significant holiday season slowdown than originally expected.
  • The price of oil and natural gas and overall performance of the U.S. economy, both of which can impact capital spending by our customers and demand for our services
  • Business interruptions due to adverse weather conditions.
  • Changes in the competitive environment of our industry.
  • Our ability to identify and complete acquisitions.

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 Q4 2023

Historical avgQ4 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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro