RPC, Inc. Reports 11.9% Revenue Decline in Q1 2025, Completes Acquisition of Pintail Alternative Energy

RPC, Inc. reported a decline in financial performance for the first quarter of 2025, with total revenues of $332.9 million, down 11.9% from $377.8 million in the same period of 2024. The decrease was primarily attributed to lower pressure pumping activity levels, which remain highly competitive. Operating income also fell to $12.4 million from $32.3 million year-over-year, while net income decreased to $12.0 million, or $0.06 per diluted share, compared to $27.5 million, or $0.13 per diluted share, in the prior year.

The company's balance sheet as of March 31, 2025, showed total assets of $1.35 billion, a decrease from $1.39 billion at the end of 2024. Current liabilities also decreased significantly to $142.3 million from $181.9 million, largely due to a reduction in unearned revenue as the company recognized $44 million in revenue from previously received customer cash prepayments. Cash and cash equivalents remained stable at $326.7 million, reflecting a slight increase from $326.0 million at the end of the previous year.

In terms of strategic developments, RPC completed the acquisition of Pintail Alternative Energy, LLC on April 1, 2025, for a total purchase price of $245 million. This acquisition is expected to enhance RPC's service offerings in the Permian Basin, a key area for oil production in the U.S. The company plans to integrate Pintail into its Technical Services segment, which is anticipated to bolster its operational capabilities in the oilfield services market.

Operationally, RPC's Technical Services segment reported revenues of $311.8 million, down 12.5% from the previous year, primarily due to reduced pricing and activity in pressure pumping services. The Support Services segment saw a smaller decline of 1.9%, with revenues of $21.0 million. The company’s employee headcount remained stable, and it continues to monitor market conditions closely, particularly the impact of oil and natural gas prices on customer activity levels.

Looking ahead, RPC's management expressed cautious optimism regarding future demand for oil and gas services, contingent on stable oil prices and customer capital expenditures. The company expects to maintain its dividend policy, with a quarterly cash dividend of $0.04 per share declared for June 2025. RPC anticipates capital expenditures between $165 million and $215 million for 2025, focusing on maintaining its existing equipment and pursuing growth opportunities.