RPC, Inc. Reports 15.6% Revenue Growth but Declines in Net Income in Q2 2025

RPC, Inc. reported its financial results for the second quarter of 2025, revealing a revenue increase of 15.6% to $420.8 million compared to $364.2 million in the same period last year. However, net income fell significantly to $10.1 million, or $0.05 per diluted share, down from $32.4 million, or $0.15 per diluted share, in the prior year. The decline in profitability was attributed to increased costs associated with the recent acquisition of Pintail Alternative Energy, which contributed $98.9 million in revenue but also incurred substantial acquisition-related employment costs of $6.6 million.

The company’s operating income for the quarter was $15.5 million, a decrease from $35.5 million in the previous year, reflecting challenges in the pressure pumping market, including pricing pressures and operational delays. Total costs of revenues rose by 21.1% to $317.7 million, driven primarily by the costs associated with Pintail. Selling, general, and administrative expenses also increased to $40.8 million, up from $37.4 million, largely due to acquisition-related expenses.

In terms of operational metrics, RPC's cash and cash equivalents decreased to $162.1 million as of June 30, 2025, down from $326.0 million at the end of 2024. The company reported net cash provided by operating activities of $92.9 million for the first half of 2025, a significant drop from $184.5 million in the same period of 2024. The decline was primarily due to unfavorable changes in working capital and lower net income. Additionally, RPC's employee headcount increased to 220,617 shares outstanding, reflecting the impact of the Pintail acquisition.

RPC's acquisition of Pintail, completed on April 1, 2025, is expected to enhance its service offerings in the Permian Basin, a key oil-producing region. The acquisition involved a total purchase price of approximately $193.7 million, including $170 million in cash and $25 million in common stock. The company anticipates that the integration of Pintail will provide synergies and strengthen its market position, although it acknowledges the competitive pressures in the oilfield services sector.

Looking ahead, RPC remains cautious about the impact of fluctuating oil prices on customer activity levels. The company expects capital expenditures for 2025 to range between $165 million and $215 million, primarily for maintenance and technology upgrades. RPC plans to continue monitoring market conditions and customer demand, with a focus on maintaining liquidity and operational efficiency in a challenging economic environment.