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RPC Inc (RES)
NYSE:RES
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RPC
(NYSE:RES)
Rating:71Outperform
Price Target:
$5.00
▲(6.84% Upside)
Positive Factors
Acquisition Impact
The company just completed an acquisition, which further shifts their revenue exposure away from frac and improves their customer profile.
Financial Stability
The company carries no long-term debt and still has cash for future acquisitions.
Revenue Growth
The Pintail Acquisition is estimated to contribute $100mm in revenue and ~$20mm in EBITDA per quarter.
Negative Factors
Growth Limitations
Upside appears limited given potential U.S. activity reductions.
Market Activity
The stock has been down significantly due to the drop in U.S. activity and rate concession in pressure pumping.
Stock Performance
RES is down ~28% YTD and ~44% over the past twelve months given the drop in U.S. activity and rate concession in pressure pumping.
RPC (RES) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.03B
Dividend Yield3.42%
Average Volume (3M)1.98M
Price to Earnings (P/E)19.1
Beta (1Y)0.82
Revenue Growth-2.74%
EPS Growth-54.52%
CountryUS
Employees2,597
SectorEnergy
Sector Strength56
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.08
Shares Outstanding220,616,880
10 Day Avg. Volume1,673,246
30 Day Avg. Volume1,984,444
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.90
Enterprise Value/Revenue0.65
Enterprise Value/Gross Profit3.11
Enterprise Value/Ebitda4.18
Forecast
1Y Price Target
$4.75Price Target Upside1.50% Upside
Rating ConsensusHold
Number of Analyst Covering4
RPC Business Overview & Revenue Model
Company DescriptionRPC (RES) is a leading provider of support services and solutions to the energy and industrial sectors, specializing in a wide range of services including drilling, completions, and production support. The company operates across various regions, delivering innovative technologies and services that enhance operational efficiency and safety for its clients. RPC (RES) is known for its commitment to sustainability and its focus on developing environmentally friendly practices in the energy sector.
How the Company Makes MoneyRPC (RES) generates revenue through multiple streams, primarily from service contracts in the energy sector, including oil and gas drilling services, completions, and production support. The company charges clients for the provision of equipment, technical expertise, and labor. Additionally, RPC (RES) leverages partnerships with major energy companies to secure long-term contracts, which provide a stable revenue base. The company also invests in research and development to innovate and enhance its service offerings, allowing it to command higher prices and improve margins. Further, RPC (RES) may explore opportunities in emerging markets or sectors, diversifying its revenue sources and reducing dependency on traditional energy markets.
RPC Earnings Call Summary
Earnings Call Date:Jul 24, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Neutral
The earnings call presents a mixed outlook with significant contributions from the Pintail acquisition and growth in non-pressure pumping service lines. However, challenges in the pressure pumping segment, pricing pressures, and macroeconomic uncertainties pose significant concerns. The sentiment is balanced with both positive achievements and notable challenges.Q2-2025 Updates
Positive Updates
Pintail Acquisition Boosts Revenue
The Pintail acquisition contributed approximately $99 million in the second quarter, representing 23% of total revenues, and played a significant role in the 26% increase in overall revenues.
Growth in Non-Pressure Pumping Service Lines
Non-pressure pumping service lines represented 74% of total revenues with downhole tools up 6% sequentially, coiled tubing up 12%, and rental tools increasing 17% versus the prior quarter.
Strong Cash Position
RPC ended the quarter with $162 million in cash, no outstanding debt on the $100 million revolving credit facility, and expects continued strong free cash flow in the second half of the year.
Adjusted EBITDA Improvement
Adjusted EBITDA reached $65.6 million, up from $48.9 million in the prior quarter, with a margin increase of 90 basis points to 15.6%.
Negative Updates
Pressure Pumping Challenges
Pressure pumping faced a challenging environment with more than a 200% increase in third-party nonproductive time, lower industry activity, customer calendar delays, and weather impacts.
Pricing Pressure in Wireline Services
The wireline market faced intensified pricing pressure, leading to expectations of slightly lower EBITDA margins despite strong customer relationships and position in the Permian Basin.
High Effective Tax Rate
The second quarter's effective tax rate was 41.3%, significantly higher due to acquisition-related employment costs from the Pintail acquisition, affecting pretax income and tax treatment.
Cautious Outlook on Pressure Pumping and Overall Market Activity
The company remains cautious about the second half of the year due to competitive markets, reduction in rig activity, and uncertain economic conditions impacting the oil industry.
Company Guidance
During the second quarter of 2025, RPC Inc. reported a significant 26% increase in revenues to $421 million, driven largely by the full-quarter impact of the Pintail acquisition, which contributed approximately $99 million or 23% of total revenues. Non-pressure pumping service lines accounted for 74% of total revenues, with notable growth in downhole tools (up 6% sequentially), coiled tubing (up 12%), and rental tools (up 17%). Despite these gains, pressure pumping faced challenges due to lower industry activity and increased nonproductive time, comprising 25.9% of total revenues. The company is testing 100% natural gas pressure pumping units to explore alternative technologies. Adjusted EBITDA improved to $65.6 million, with a margin increase of 90 basis points to 15.6%, while adjusted diluted EPS was $0.08. Operating cash flow stood at $92.9 million, with free cash flow at $17.6 million after capital expenditures of $75.3 million. Looking ahead, RPC plans capital spending of $165 million to $215 million for 2025, primarily for maintenance, opportunistic asset purchases, and IT system upgrades.RPC Financial Statement Overview
Summary
RPC demonstrates strong financial health with stable revenue and profitability metrics, a robust balance sheet, and solid operating cash flows. The company shows resilience despite challenges in revenue growth and free cash flow, maintaining a low leverage and strong equity position. Potential risks include pressure on EBIT margins and reduced free cash flow.Income Statement
RPC's income statement shows a solid performance with a gross profit margin of 20.83% and a net profit margin of 3.77% for TTM (Trailing-Twelve-Months). Revenue growth has slowed recently, but stability in EBITDA margin at 15.49% indicates strong operational efficiency. However, the decline in EBIT margin from the previous year suggests some pressure on profitability.75
Positive
Balance Sheet
The balance sheet is strong with a low debt-to-equity ratio of 0.05 and a healthy equity ratio of 74.54% for TTM, indicating financial stability. The return on equity (ROE) is moderate at 4.92%, suggesting efficient use of shareholder capital. There is a strong cash position, which enhances liquidity.80
Positive
Cash Flow
RPC's cash flow statement reflects a robust operating cash flow, with an operating cash flow to net income ratio of 4.80 for TTM. However, the free cash flow decreased by approximately 30.18% compared to the previous year, indicating higher capital expenditures which could impact future liquidity.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.43B | 1.41B | 1.62B | 1.60B | 864.93M | 598.30M |
| Gross Profit | 297.06M | 245.78M | 419.83M | 430.63M | 128.98M | 22.03M |
| EBITDA | 220.82M | 244.65M | 364.71M | 373.26M | 91.06M | -213.53M |
| Net Income | 53.74M | 91.44M | 195.11M | 218.36M | 7.22M | -212.19M |
Balance Sheet | ||||||
| Total Assets | 1.46B | 1.39B | 1.29B | 1.13B | 864.37M | 790.50M |
| Cash, Cash Equivalents and Short-Term Investments | 162.11M | 325.98M | 223.31M | 126.42M | 82.43M | 84.50M |
| Total Debt | 51.06M | 32.91M | 27.16M | 30.25M | 46.30M | 30.28M |
| Total Liabilities | 373.38M | 308.20M | 264.33M | 271.28M | 222.57M | 158.94M |
| Stockholders Equity | 1.09B | 1.08B | 1.02B | 857.74M | 641.79M | 631.57M |
Cash Flow | ||||||
| Free Cash Flow | 90.39M | 129.46M | 213.76M | 61.73M | -19.93M | 12.89M |
| Operating Cash Flow | 257.84M | 349.39M | 394.76M | 201.29M | 47.72M | 77.96M |
| Investing Cash Flow | -314.12M | -201.55M | -241.71M | -123.72M | -47.63M | -42.66M |
| Financing Cash Flow | -43.13M | -45.17M | -56.16M | -33.58M | -2.15M | -826.00K |
RPC Technical Analysis
Positive
4.68
Price Trends
4.74
Negative
4.72
Negative
5.28
Negative
Market Momentum
-0.02
Negative
53.04
Neutral
79.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RES, the sentiment is Positive. The current price of 4.68 is above the 20-day moving average (MA) of 4.52, below the 50-day MA of 4.74, and below the 200-day MA of 5.28, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 53.04 is Neutral, neither overbought nor oversold. The STOCH value of 79.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RES.
RPC Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.41B | 20.42 | 4.78% | ― | 2.67% | ― | |
72 Outperform | $1.15B | 5.76 | 15.64% | ― | 82.86% | ― | |
71 Outperform | $1.03B | 19.05 | 4.92% | 3.42% | -2.74% | -54.52% | |
65 Neutral | $15.26B | 7.31 | 3.02% | 5.32% | 4.27% | -62.52% | |
64 Neutral | $1.28B | 41.18 | 5.66% | ― | -9.81% | -124.43% | |
64 Neutral | $928.95M | 19.91 | 3.27% | ― | -8.19% | ― | |
59 Neutral | $999.23M | 25.58 | 4.18% | 3.38% | -2.46% | -44.11% |
* Energy Sector Average
Performance Comparison
RES
RPC
4.68
-1.53
-24.64%
INVX
Innovex International
16.64
0.18
1.09%
HLX
Helix Energy
6.44
-5.02
-43.80%
MRC
MRC Global
15.13
2.01
15.32%
XPRO
Expro Group Holdings
12.41
-7.52
-37.73%
WTTR
Select Energy Services
8.29
-2.85
-25.58%
RPC Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
RPC Appoints Gary Kolstad as Independent Director
Positive
Jul 14, 2025
On July 14, 2025, RPC, Inc. appointed Gary Kolstad as an Independent Director to its Board of Directors. Kolstad, with a background in petroleum engineering and extensive experience in oilfield services, is expected to bring valuable insights to the board. His appointment is part of RPC’s strategy to strengthen its leadership team, potentially enhancing its industry positioning and operations.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.