What guidance did RPC's management provide for the next earnings period?

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What were the key takeaways from RPC's earnings call?

Did RPC beat or miss consensus estimates last quarter?

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What is RPC's latest dividend and current dividend yield?

What does RPC do and what are its main business segments?

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- **Q4 Revenue Decline**: 5% drop to $426M due to industry weakness and weather-related downtime.
- **Thru Tubing Growth**: 9% sequential increase driven by A-10 motor adoption and Metal Max component rollout.
- **Pressure Pumping Strategy**: Idling 6% of fleet to preserve margins; no reactivation until returns improve.
- **Free Cash Flow**: $52.9M in Q4, with 2026 CapEx guidance of $150-180M reflecting cautious capital allocation.
- **Key Risks**: Winter storms caused 2026 Q1 disruption, with uncertain recovery timeline.

**【CEO Summary Section】**
- Q4 2025 revenue declined 5% to $426 million, driven by sequential weakness across most service lines, particularly in December due to winter storms.
- Technical Services (excluding pressure pumping) accounted for 70% of revenue but fell 4% sequentially. Key亮点 include:
  - Thru Tubing Solutions: 9% sequential growth in downhole tools, success of A-10 motor and Metal Max component, and early adoption of UnPlug technology.
  - Cudd Pressure Control: Snubbing business up 13%, with new big bore snubbing unit for cavern gas storage work.
- Pressure Pumping down 6% due to idled fleets and weather-related downtime; no plans to reactivate fleets until returns improve.

**【CFO Financial Commentary】**
- Q4 GAAP net income not disclosed; adjusted EBITDA $55.1 million (12.9% margin), down 19% year-over-year.
- Key changes: Wireline cables now expensed (vs. capitalized), reducing operating cash flow and CapEx by $15 million.
- Free cash flow $52.9 million; 2025 CapEx $148 million, with 2026 guidance of $150-180 million (flexible based on activity).
- Tax rate elevated due to life insurance policy liquidation.

**【Q&A Highlights】**
- **Winter Impact**: Q1 2026 activity disrupted by winter storms, but long-term recovery uncertain.
- **Market Dynamics**: Competitors moving equipment overseas may reduce competition in non-pumping services.
- **Capital Allocation**: Buybacks possible but no immediate plans; M&A focus on strategic, less capital-intensive opportunities.
- **International Growth**: Thru Tubing Solutions exploring Middle East unconventionals with advanced tooling.
- **Pressure Pumping**: Market remains oversupplied; company prioritizing disciplined pricing and selective fleet utilization.
- **CapEx Flexibility**: 2026 spend range reflects cautious approach to equipment investments.
- **Rental Tools**: Q4 decline due to customer delays, expected to normalize in 2026.

RPC, Inc. (RES) Q4 2025 Earnings Call Transcript

- **Revenue Growth**: Sequential revenue increase of 6% to $447.1 million, driven by downhole tools (+5%), coiled tubing, and wireline.
- **Innovative Products**: A10 downhole motor achieves 100+ runs with major operators, unplugged technology reduces bridge plug reliance.
- **Financial Health**: Adjusted EBITDA margin improves to 16.2%, free cash flow $21.7 million after CapEx.
- **Strategic Shifts**: Pressure pumping now 27.9% of revenue, focus on less capital-intensive services.
- **Market Resilience**: Diversified geographic exposure and return-based fleet management.


**【CEO Summary Section】**
- **Revenue Growth and Service Line Performance**: Q3 2025 revenue increased 6% sequentially to $447.1 million, driven by strong performance in downhole tools (+5%), coiled tubing, and wireline. Service lines outside pressure pumping accounted for 72% of revenue, with Thru-Tubing Solutions leading innovation.
- **Product Innovations**: The A10 downhole motor achieved over 100 runs with major operators, offering smaller size, reduced output, and improved efficiency for longer laterals. The unplugged technology reduces reliance on bridge plugs, enhancing operational efficiency.
- **Pressure Pumping Strategy**: Cudd Pressure Control reduced nonproductive time and deployed a new 100% natural gas frac pump for testing. Fleets are managed with a return-based framework, with a cautious approach to capital-intensive investments.
- **Market Positioning**: The company is diversifying into less capital-intensive services (e.g., geoexchange wells) and leveraging geographic exposure across Rocky Mountain and Southeast regions.

**【CFO Financial Commentary】**
- **Financial Metrics**: Adjusted EBITDA rose 60 basis points to 16.2%, driven by cost control and activity growth. Operating cash flow year-to-date was $139.5 million, with free cash flow of $21.7 million after CapEx of $117.8 million.
- **Tax and Dividends**: Effective tax rate was 42.6% due to acquisition-related costs. Dividends totaled $26.3 million year-to-date, with a focus on maintaining liquidity and flexibility for acquisitions.
- **Capital Allocation**: 2025 capital spending guidance is $170-190 million for maintenance, IT upgrades, and strategic purchases. The company plans to liquidate a $50 million seller finance note and expects a one-time tax impact from a terminated SERP.

**【Q&A Highlights】**
- **Q4 Outlook**: Management anticipates cautious activity levels, with potential holiday-related slowdowns but flexibility to adapt to market conditions. The company remains focused on cost management and return-driven decisions.
- **Product Differentiation**: The A10 motor's design enhances reliability and efficiency for operators, translating to market share gains.
- **Strategic Shifts**: Pressure pumping now represents 27.9% of revenue, down from historical levels, reflecting a pivot to higher-margin services.


RPC, Inc. (RES) Q3 2025 Earnings Call Transcript

- **Revenue Growth**: 26% Q2 increase to $421M, driven by Pintail ($99M contribution). Legacy services up 7%.
- **Pressure Pumping Challenges**: 200%+ nonproductive time, operational inefficiencies, and shift to dedicated customers requiring more equipment.
- **New Product Success**: A10 motor used by 50+ customers; UnPlug technology gaining early adopters.
- **Financial Performance**: Adjusted EBITDA $65.6M (15.6% margin), free cash flow $17.6M. Tax rate 41.3% due to acquisition costs.
- **Strategic Moves**: Testing natural gas-powered pressure pumping units; cautious on M&A amid market uncertainty.

**【CEO Summary Section】**
- Q2 2025 revenue increased 26% to $421 million, with Pintail contributing $99 million (23% of total). Excluding Pintail, legacy revenues grew 7%.
- Pressure pumping faced challenges: 200%+ rise in third-party nonproductive time, operational inefficiencies, and a shift to dedicated customers requiring more equipment. Sequential revenue decline in pressure pumping due to lower activity and mix changes.
- Non-pressure pumping services (74% of revenue) showed strength: downhole tools up 6%, coiled tubing up 12%, rental tools up 17%. New A10 motor and UnPlug technology gained traction, with A10 used by over 50 customers.
- Pintail acquisition diversifies portfolio, strengthens wireline presence in Permian, and reduces seasonality risk. Wireline EBITDA margins expected to be slightly lower than prior guidance due to pricing pressure.
- 2025 plans include testing 100% natural gas-powered pressure pumping units, with first deployment in Q3.

**【CFO Financial Commentary】**
- Adjusted EBITDA of $65.6 million (15.6% margin), up 34% vs. Q1. Operating cash flow $92.9 million, free cash flow $17.6 million (impacted by $45 million customer prepayment in Q4 2024).
- Effective tax rate 41.3% (vs. 28.5% in Q1), driven by non-deductible acquisition-related costs. Full-year tax rate expected in mid-30s.
- 2025 capital spending $165-215 million, including IT upgrades and ERP implementation. No additional units for 2-7/8" coiled tubing yet.

**【Q&A Highlights】**
- **M&A Strategy**: Selective, opportunistic approach; focus on scale in existing services and diversification. Waiting for clearer valuations amid market uncertainty.
- **Coiled Tubing Unit**: New 2-7/8" unit performing well, with strong customer interest. No immediate plans for second unit due to cautious CapEx stance.
- **Pressure Pumping Outlook**: Cautious on Q3/Q4 due to rig activity decline, but dedicated customer mix may mitigate seasonality. Less materials/supplies usage could limit revenue growth.
- **Free Cash Flow**: Expect improvement in H2, excluding potential prepayments. Pintail's full-year contribution and lower CapEx drive optimism.
- **Wireline Pricing**: Pintail faces competitive pressure in Permian, but strong customer relationships and operational excellence maintain profitability.

RPC, Inc. (RES) Q2 2025 Earnings Call Transcript

- **Stable Q1 Performance**: $333M revenue, $48.9M EBITDA (14.7% margin) with Wireline and Rental Tools growth.
- **Strategic Acquisition**: Pintail adds $409M revenue, 23% Wireline share, and ~20% EBITDA margin.
- **Disciplined Capital Allocation**: $165-215M 2025 CapEx for maintenance; strong balance sheet ($327M cash) supports M&A.
- **Macro Risks & Resilience**: Oil price volatility ($60s/bbl) and tariffs, but secure dividend and operational flexibility.


**【CEO Summary Section】**
- Q1 2025 revenue was stable at $333 million, with sequential EBITDA growth to $48.9 million (14.7% margin). Pressure Pumping revenues were flat, while Wireline and Rental Tools showed gains.
- Acquired Pintail Completions for $245 million, adding $409 million in 2024 revenue and 23% Wireline share. Pintail's EBITDA margin is expected to remain ~20%.
- Focused on disciplined capital allocation, with $165-215 million 2025 CapEx for maintenance and selective M&A. Permian concentration rises to 60% post-Pintail.
- Highlighted macro risks from tariffs and oil price volatility ($60s/bbl), but maintained strong balance sheet ($327M cash, no debt) and dividend security.

**【CFO Financial Commentary】**
- Q1 GAAP net income: $48.9M EBITDA vs. $46.1M prior quarter. Operating cash flow: $39.9M, free cash flow: $7.6M after $32.3M CapEx.
- Cost of revenues declined 3% ($243.9M) due to lower fuel, materials, and insurance expenses. SG&A up 3% to $42.5M due to IT projects.
- Pintail transaction: $170M cash, $50M seller note (SOFR+200bps), 4.5M shares issued. Annualized Pintail CapEx: $20M, with accretive EPS and cash flow for 2025.

**【Q&A Key Takeaways】**
- **Market Dynamics**: Pressure Pumping faces competitive pricing; Wireline and Rental Tools show relative strength. Pintail's Permian focus aligns with customer retention strategy.
- **Capital Allocation**: Prioritize accretive M&A (e.g., Pintail) and free cash flow generation. 2025 CapEx skewed towards back half if market improves.
- **Strategic Shifts**: Reducing exposure to high-capital, low-margin frac equipment. Reallocating assets to other service lines or overseas sales.
- **Macroeconomic Risks**: Tariffs may delay equipment purchases; oil price uncertainty could slow completions. However, strong balance sheet allows flexibility.


RPC (RES)-24 Apr 25-2025 Q1 Earnings call transcript

- **Q4 Revenue Resilience**: Pressure pumping up 3% sequentially, offsetting declines in other services. New unplug system completes hundreds of stages.
- **Financial Strength**: Full-year free cash flow $129.5 million despite $219.9M CapEx, with $326M cash on hand.
- **Strategic Moves**: Evaluating M&A for high-cash-flow assets; no electric fleet investment planned.
- **Cost Management**: One-time $2.7M insurance cost in Q4, no recurring impact. 2025 CapEx guidance $150-200M.


**【CEO Opening Remarks】**
- **Market Challenges**: The OFS market remains competitive, with seasonal slowdowns impacting Q4 results. Pressure pumping revenue increased 3% sequentially, while other services declined 3%.
- **Product Innovations**: New 3.5-inch downhole motor and unplug system show promise, with the latter completing hundreds of stages in Q4.
- **Strategic Focus**: Bolstering less capital-intensive services and exploring M&A to diversify and reduce volatility.

**【CFO Financial Highlights】**
- **Q4 Revenues**: $335 million, down 1% sequentially. Technical Services (94% of revenue) stable, Support Services (6%) down 14%.
- **Costs**: Higher insurance and healthcare expenses offset by lower maintenance costs. EBITDA of $46.1 million, margin 13.7% (down 270bps).
- **Cash Flow**: Operating cash flow $94.2 million, free cash flow $53.7 million. Full-year free cash flow $129.5 million despite $219.9 million in CapEx.
- **Dividends & Buybacks**: $34 million in dividends and $10 million in stock repurchases in 2024.

**【Q&A Key Takeaways】**
- **Insurance Costs**: One-time $2.7 million increase in Q4 due to deductible resets, not recurring.
- **2025 Outlook**: CapEx guidance $150-200 million, excluding potential Tier 4 DGB fleet investment.
- **M&A Activity**: Actively evaluating accretive acquisitions, though bid-ask spreads remain volatile.
- **Electric Fleets**: No plans for organic electric fleet investment; focus on dual-fuel flexibility.
- **Customer Mix**: Shifting to semi-dedicated contracts to reduce spot market exposure, with multi-month visibility for some fleets.


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