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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.

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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

2. RPC's Q4 2025 Earnings: A Mixed Bag

RPC, Inc.'s fourth quarter 2025 earnings report presented a mixed picture, with revenues declining 5% sequentially to $426 million, driven by a decrease in service lines other than pressure pumping, which accounted for 70% of total revenues. Technical Services revenues were down 4%, while Support Services revenues fell 18%. The effective tax rate was unusually high due to the liquidation of company-owned life insurance policies and acquisition-related employment costs. Adjusted diluted EPS came in at $0.04, missing estimates of $0.07, while adjusted EBITDA was $55.1 million, down from $67.8 million in the previous quarter.

Publication Date: Mar -07

📋 Highlights
  • Revenue Decline: Q4 revenue dropped 5% to $426M from Q3, driven by -18% in Support Services and -4% in Technical Services, excluding pressure pumping which accounted for 30% of total revenue.
  • EBITDA Drop: Adjusted EBITDA fell to $55.1M from $67.8M, impacted by weaker service lines and elevated tax rates from insurance liquidation and acquisition costs.
  • Thru Tubing Solutions Struggles: Downhole tools revenue fell 9% sequentially, but A-10 motor success and Metal Max expansion signal product innovation amid market challenges.
  • Balance Sheet Strength: $210M in cash, $50M in seller finance notes, and no debt on $100M revolver provide flexibility for buybacks or M&A despite cautious 2026 CapEx outlook.
  • Market Positioning: Competitor consolidation and disciplined pricing in pressure pumping position RPC to benefit long-term, alongside strategic focus on gas storage and Middle East opportunities.

Operational Highlights

Despite the revenue decline, some service lines, such as Spinnaker's cementing business and Cudd Pressure Control's snubbing and well control businesses, saw revenue increases. Thru Tubing Solutions, a market leader in downhole completion tools, experienced a 9% sequential decrease in downhole tools revenues, but has seen success with its A-10 downhole motor and is expanding the rollout of its Metal Max power section component. As Ben Palmer, President and CEO, noted, "We're seeing some success with our A-10 downhole motor, and we're expanding the rollout of our Metal Max power section component."

Capital Allocation and M&A

The company is evaluating the use of its capital, including potential stock buybacks, and is focused on leveraging its strong balance sheet to maximize long-term shareholder returns. RPC is not in a rush to do deals and will be patient, considering the limited number of buyers for traditional land equipment. The company is opening up its aperture to look at other parts of the energy sector, including gas storage work.

Valuation and Outlook

With a P/E Ratio of 40.49 and an EV/EBITDA of 5.64, the market appears to be pricing in a moderate growth trajectory. Analysts estimate revenue growth at 4.4% for the next year. Given the current valuation multiples, it's essential to monitor RPC's ability to execute on its growth strategy and maintain its strong balance sheet. The company's ROE of 2.93% and ROIC of 2.52% indicate a relatively low return on equity and invested capital, respectively.

Conclusion on Financial Health

RPC's financial health remains robust, with $210 million in cash, a $50 million seller finance note payable, and no borrowings from its $100 million revolving credit facility. The company's net debt to EBITDA ratio stands at -0.52, indicating a net cash position. The dividend yield of 2.61% and free cash flow yield of 3.92% provide a relatively attractive return for investors.

3. NewsRoom

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Wealth Manager Fully Exits Position in Oilfield Services Company, According to Latest SEC Filing

Apr -07

Source: fool.com

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RPC, Inc. (NYSE:RES) Receives Consensus Rating of “Reduce” from Analysts

Apr -07

Source: defenseworld.net

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RPC, Inc. Investigated by the Portnoy Law Firm

Apr -01

Source: globenewswire.com

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Analysts Set RPC, Inc. (NYSE:RES) PT at $5.25

Mar -16

Source: defenseworld.net

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Citigroup Inc. Buys 215,350 Shares of RPC, Inc. $RES

Mar -09

Source: defenseworld.net

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Head-To-Head Comparison: RPC (NYSE:RES) and Baker Hughes (NASDAQ:BKR)

Mar -09

Source: defenseworld.net

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INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of RPC, Inc. - RES

Mar -03

Source: globenewswire.com

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INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of RPC, Inc. - RES

Feb -26

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

Strength

Weaknesses

Opportunities

Threats

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

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
U.S. Silica Holdings

A-Score: 4.9/10

Value: 8.1

Growth: 6.7

Quality: 5.7

Yield: 0.0

Momentum: 6.0

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
RPC

A-Score: 4.7/10

Value: 6.3

Growth: 5.8

Quality: 5.1

Yield: 4.0

Momentum: 2.5

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
NOW

A-Score: 4.6/10

Value: 7.2

Growth: 5.9

Quality: 6.2

Yield: 0.0

Momentum: 3.5

Volatility: 5.0

1-Year Total Return ->

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Ranger Energy Services

A-Score: 4.6/10

Value: 7.7

Growth: 6.3

Quality: 5.2

Yield: 2.0

Momentum: 1.5

Volatility: 5.0

1-Year Total Return ->

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Profire Energy

A-Score: 4.6/10

Value: 2.6

Growth: 7.1

Quality: 6.9

Yield: 0.0

Momentum: 7.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Select Energy Services

A-Score: 4.5/10

Value: 6.7

Growth: 5.9

Quality: 3.7

Yield: 5.0

Momentum: 1.5

Volatility: 4.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

6.66$

Current Price

6.66$

Potential

-0.00%

Expected Cash-Flows