RPC, Inc. (RES) | Investment Case

1. Company Snapshot

1.a. Company Description

RPC, Inc., through its subsidiaries, provides a range of oilfield services and equipment for the oil and gas companies involved in the exploration, production, and development of oil and gas properties.The company operates through Technical Services and Support Services segments.The Technical Services segment offers pressure pumping, fracturing, acidizing, cementing, downhole tools, coiled tubing, snubbing, nitrogen, well control, wireline, pump down, and fishing services that are used in the completion, production, and maintenance of oil and gas wells.

The Support Services segment provides a range of rental tools for onshore and offshore oil and gas well drilling, completion, and workover activities.This segment also offers oilfield pipe inspection, and pipe management and storage services, as well as well control training and consulting services.The company operates in the United States, Africa, Canada, Argentina, China, Mexico, Eastern Europe, Latin America, the Middle East, and internationally.

RPC, Inc.was founded in 1984 and is headquartered in Atlanta, Georgia.

Show Full description

1.b. Last Insights on RES

The recent 3-month performance of RPC, Inc. was negatively impacted by lower earnings and revenue growth. Despite meeting Q4 earnings estimates, the company's adjusted operating income and adjusted net income declined year-over-year. Additionally, higher selling, general and administrative costs partially offset the benefits of improved pressure pumping activity. Furthermore, the company's acquisition of Pintail Completions, a leading wireline completions services company, was announced in April, but its impact on the company's performance is yet to be seen.

1.c. Company Highlights

Last Price	5.84
Change Percentage	0.86%
Open	5.83
Previous Close	5.79
Market Cap ( Millions)	1288
Volume	1393926
Year High	7.17
Year Low	4.1
M A 50	5.01
M A 200	4.93

FCF Yield	5.85%
Dividend Yield	2.74%
ROE	4.40%
Debt / Equity	4.63%
Net Debt / EBIDTA	-52.06%
Price To Book	1.16
Price Earnings Ratio	26.69
Price To FCF	17.09
Price To sales	0.84
EV / EBITDA	5.44

2. RPC Inc. Beats Earnings Estimates on Strong Revenue Growth

RPC Inc.'s third-quarter 2025 financial results showed a significant improvement in revenue, with a 6% increase to $447.1 million compared to the second quarter. The company's adjusted diluted EPS was $0.09, beating estimates of $0.05. The revenue growth was broad-based across the majority of the company's businesses, with Technical Services, representing 94% of total revenues, up 6% sequentially. The cost of revenues, excluding depreciation and amortization, was $335 million, up from $318 million in the previous quarter, indicating some pressure on margins.

Publication Date: Nov -30

                                    📋 Highlights
                                    Revenue Growth::
                                                Q3 2025 revenue rose 6% sequentially to $447.1 million, driven by 6% growth in Technical Services (94% of total revenue).
Segment Performance::
                                                Non-pressure pumping services (72% of revenue) grew 3% sequentially; Thru-Tubing Solutions' downhole tools saw a 5% sequential increase.
Profitability Metrics::
                                                Adjusted EBITDA increased to $72.3 million (up from $65.6 million), while adjusted diluted EPS was $0.09, reflecting broad operational efficiency.
Capital Allocation::
                                                $21.7 million free cash flow generated after $117.8 million in CapEx, with focus on cost management and balance sheet flexibility amid market uncertainty.
Strategic Shift::
                                                Pressure pumping now accounts for a smaller revenue share; company maintains presence but prioritizes growth in coiled tubing, downhole tools, and wireline services.

                                

Segment Performance

The company's pressure pumping, coiled tubing, and downhole tools businesses saw significant increases in revenue. Thru-Tubing Solutions' downhole tools revenues increased 5% sequentially, while Cudd Pressure Control's business increased revenues 1% during the quarter. The majority of the company's revenue comes from Pintail, the largest wireline provider in the Permian Basin.

Operational Highlights

Despite the revenue improvements, RPC Inc. elected to lay down a fleet in October and reduce staffing accordingly, indicating a cautious approach to the current market conditions. The company's deployed fleets are largely supporting customers that are expected to continue completions activity over the next several months. As Ben Palmer mentioned, "Our deployed fleets are largely supporting customers that we expect will continue completions activity over the next several months."

Valuation and Outlook

RPC Inc.'s current valuation metrics indicate a relatively attractive price. The stock has a P/E Ratio of 24.32, P/S Ratio of 0.76, and EV/EBITDA of 4.91. Analysts estimate revenue growth of 4.4% for the next year. With a Dividend Yield of 3.01% and Free Cash Flow Yield of 6.42%, the stock appears to offer a reasonable income stream. The company's Return on Equity (ROE) is 4.4%, and Return on Invested Capital (ROIC) is 3.15%, indicating a relatively stable return profile.

Management's Strategy

RPC Inc.'s management is focusing on costs, returns, and capital allocation, utilizing the company's balance sheet to take advantage of opportunities. As Ben Palmer stated, "Like we have in prior business cycles, we will manage the business prudently." The company's net debt to EBITDA ratio is -0.52, indicating a healthy balance sheet position.

3. NewsRoom

American Century Companies Inc. Boosts Position in RPC, Inc. $RES

Dec -03

Source: defenseworld.net

Campbell & CO Investment Adviser LLC Acquires Shares of 54,755 RPC, Inc. $RES

Nov -18

Source: defenseworld.net

RPC Q3 Earnings Top Estimates on Pressure Pumping Strength

Nov -10

Source: zacks.com

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

Oct -30

Source: seekingalpha.com

RPC (RES) Q3 Earnings and Revenues Surpass Estimates

Oct -30

Source: zacks.com

RPC, Inc. Reports Third Quarter 2025 Financial Results And Declares Regular Quarterly Cash Dividend

Oct -30

Source: prnewswire.com

Carolina Wealth Advisors Loaded Up on RPC, Inc. (RES) With a 1.26 Million Share Purchase

Oct -20

Source: fool.com

RPC, Inc. Announces Date for Third Quarter 2025 Financial Results and Conference Call

Oct -07

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.00%)

6. Segments

Technical Services

Expected Growth: 5%

RPC Inc.'s Technical Services segment growth is driven by increasing demand for oilfield services, rising oil prices, and growing exploration and production activities. Additionally, the company's expansion into new markets, investments in technology, and strategic acquisitions are contributing to its growth.

Support Services

Expected Growth: 5%

RPC Inc.'s Support Services segment growth is driven by increasing demand for oilfield services, expansion into international markets, and strategic acquisitions. Additionally, the company's focus on technology and innovation, such as its proprietary fleet of pressure pumping units, has enabled it to capitalize on the growing need for efficient and cost-effective oil extraction methods.

7. Detailed Products

Pressure Pumping

RPC, Inc. provides a range of pressure pumping services, including hydraulic fracturing, cementing, and acidizing, to help oil and gas operators optimize well production.

Coiled Tubing

RPC, Inc. offers coiled tubing services, including well intervention, logging, and perforating, to help operators improve wellbore access and optimize production.

Nitto Oilfield Services

RPC, Inc.'s Nitto Oilfield Services provides a range of products and services, including drill pipe, tubing, and casing, to support oil and gas operators in their drilling and production operations.

Thru Tubing Solutions

RPC, Inc.'s Thru Tubing Solutions provides specialized tools and services, including thru-tubing fishing, to help operators recover from wellbore interventions and optimize production.

RPC Drilling Services

RPC, Inc.'s Drilling Services provides a range of drilling services, including directional drilling and measurement-while-drilling, to help operators optimize well construction and production.

8. RPC, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

RPC, Inc. faces moderate threat from substitutes due to the availability of alternative energy sources.

Bargaining Power Of Customers

RPC, Inc. has a diverse customer base, reducing the bargaining power of individual customers.

Bargaining Power Of Suppliers

RPC, Inc. relies on a few key suppliers, giving them moderate bargaining power.

Threat Of New Entrants

The oil and gas industry has high barriers to entry, but new entrants can still disrupt the market.

Intensity Of Rivalry

The oil and gas industry is highly competitive, with many established players competing for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	2.59%
Debt Cost	3.95%
Equity Weight	97.41%
Equity Cost	12.21%
WACC	11.99%
Leverage	2.66%

11. Quality Control: RPC, Inc. passed 6 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Profire Energy

A-Score: 5.6/10

Value: 5.2

Growth: 7.1

Quality: 8.0

Yield: 0.0

Momentum: 9.5

Volatility: 4.0

1-Year Total Return ->

Ranger Energy Services

A-Score: 5.6/10

Value: 7.8

Growth: 6.3

Quality: 5.5

Yield: 2.0

Momentum: 7.5

Volatility: 4.3

1-Year Total Return ->

NOW

A-Score: 5.2/10

Value: 6.4

Growth: 5.9

Quality: 6.1

Yield: 0.0

Momentum: 7.5

Volatility: 5.3

1-Year Total Return ->

Select Energy Services

A-Score: 4.6/10

Value: 6.6

Growth: 5.9

Quality: 4.2

Yield: 3.0

Momentum: 4.0

Volatility: 4.0

1-Year Total Return ->

U.S. Silica Holdings

A-Score: 4.6/10

Value: 8.0

Growth: 6.9

Quality: 5.5

Yield: 0.0

Momentum: 5.0

Volatility: 2.3

1-Year Total Return ->

RPC

A-Score: 4.5/10

Value: 7.0

Growth: 5.8

Quality: 5.1

Yield: 4.0

Momentum: 1.0

Volatility: 4.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

4.79%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

11.99%

RPC, Inc. - US7496601060

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on RES

1.c. Company Highlights

Average Quality

Fairly Valued

Medium Volatility

Earnings Miss

Revenues Miss

Earnings Beats

Weak Momentum

Average Yield

Average Growth

Stable Momentum

Revenues Beats

2. RPC Inc. Beats Earnings Estimates on Strong Revenue Growth

Segment Performance

Operational Highlights

Valuation and Outlook

Management's Strategy

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.00%)

6. Segments

Technical Services

Expected Growth: 5%

Support Services

Expected Growth: 5%

7. Detailed Products

Pressure Pumping

Coiled Tubing

Nitto Oilfield Services

Thru Tubing Solutions

RPC Drilling Services

8. RPC, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: RPC, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

5.84$

Current Price

5.84$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA