RPC Inc (RES) Misses Q2 EPS by 1c, Miss on Revenues

RPC Inc (NYSE: RES) reported Q2 EPS of $0.28, $0.01 worse than the analyst estimate of $0.29. Revenue for the quarter came in at $467.9 million versus the consensus estimate of $489.32 million.

"The average U.S. domestic rig count during the second quarter of 2018 was 1,039, a 16.1 percent increase compared to the same period in 2017, and a 7.6 percent increase compared to the first quarter of 2018," stated Richard A. Hubbell, RPC's President and Chief Executive Officer. "The average price of natural gas during the second quarter was $2.85 per Mcf, a 7.5 percent decrease compared to the prior year, and a 9.8 percent decrease compared to the first quarter of 2018. The average price of oil during the second quarter was $68.05 per barrel, a 41.2 percent increase compared to the prior year and an 8.2 percent increase compared to the first quarter of 2018. Compared to the prior quarter and the prior year, RPC's second quarter 2018 revenues increased at a rate comparable to the change in these industry metrics.

"Oilfield activity improved moderately during the second quarter of 2018, as favorable oil prices supported our customers' drilling and completion activities. We are generally pleased with our operational performance during the quarter. However, increasing competition has limited the ability of oilfield service companies to raise prices at the present time. Given the current operating environment, we have no plans at this time to order additional pressure pumping equipment.

\"We are aware of the industry\'s concerns regarding potential Permian Basin takeaway capacity constraints, as oil production may temporarily exceed the region's capacity to transport oil to regional refineries. While we have not yet experienced any reductions in activity in this region, the Permian Basin is our largest market and a reduction in our customers' activities in that region represents a risk to our near-term financial results. We operate in a number of other oilfield basins in the domestic U.S. market, and are prepared to reposition equipment and personnel temporarily to other operating basins should conditions warrant.

"During the second quarter, we continued our commitment to RPC\'s shareholders through our share repurchase program and dividends. Including these uses of cash, as well as $99.2 million of capital expenditures, we finished the second quarter with $94.2 million in cash," concluded Hubbell.

For earnings history and earnings-related data on RPC Inc (RES) click here.

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