RPC, Inc. Reports $1.415 Billion Revenue for Fiscal Year 2024, 12.5% Decline

RPC, Inc. reported a total revenue of $1.415 billion for the fiscal year ending December 31, 2024, marking a 12.5% decline from $1.617 billion in 2023. The decrease in revenue was primarily attributed to lower industry activity levels and increased price competition, particularly in the pressure pumping segment, which saw a 24% drop in revenue. Operating profit also fell significantly, down 60.2% to $97.5 million, while net income decreased to $91.4 million, or $0.43 per share, compared to $195.1 million, or $0.90 per share, in the previous year.

In terms of operational developments, RPC's Technical Services segment generated $1.326 billion in revenue, accounting for 93.7% of total revenues, while Support Services contributed $89 million. The company experienced a notable increase in cementing revenues, which rose due to the full-year impact of the acquisition of Spinnaker Oilwell Services in July 2023. This acquisition expanded RPC's cementing capabilities in the Permian and Mid-Continent basins. The company ended 2024 with 2,597 employees, reflecting a stable workforce despite the challenging market conditions.

RPC's financial performance was influenced by a 12.8% decrease in the average U.S. rig count, which averaged 600 in 2024, down from 688 in 2023. The company also reported a decrease in well completions, which fell by approximately 9% year-over-year. The average price of oil remained relatively stable at $76.60 per barrel, while natural gas prices dropped significantly to $2.19 per thousand cubic feet, a 13.8% decrease from the previous year. These market conditions have led to increased competition and a general oversupply of oilfield services capacity, particularly in pressure pumping.

Looking ahead, RPC anticipates capital expenditures between $150 million and $200 million in 2025, primarily directed towards maintaining existing equipment and exploring selected growth opportunities. The company plans to continue upgrading its equipment to meet industry trends towards lower emissions and more efficient dual-fuel assets. RPC's management remains optimistic about the long-term demand for oil and natural gas, believing that current prices are sufficient to sustain drilling and completion activities. However, they acknowledge the ongoing volatility in the oil and gas markets and the potential impact of geopolitical events on future operations.