RPC Inc (NYSE: RES) reported Q4 EPS of ($0.07), $0.04 better than the analyst estimate of ($0.11). Revenue for the quarter came in at $236 million versus the consensus estimate of $237.57 million.

Management Commentary

"The average U.S. domestic rig count during the fourth quarter of 2019 was 820, a 23.6 percent decrease compared to the same period in 2018, and a 10.9 percent decrease compared to the third quarter of 2019," stated Richard A. Hubbell, RPC\'s President and Chief Executive Officer. "The average price of oil during the fourth quarter was $56.74 per barrel, a 4.4 percent decrease compared to the same period in 2018, but a 0.6 percent increase compared to the third quarter of 2019. The average price of natural gas during the fourth quarter was $2.41 per Mcf, a 36.2 percent decrease compared to the same period in 2018, but a 1.3 percent increase compared to the third quarter of 2019.

"During the fourth quarter we continued to execute our downsizing plans we first disclosed in October, including closing facilities, scrapping equipment and reducing headcount. In connection with the preparation of our fourth quarter financial statements, we recorded additional impairment and other charges of $10.6 million in our Technical Services segment related primarily to severance and underutilized assets. We believe these are appropriate measures for RPC given the numerous secular changes in the oil and gas industry. As 2020 begins, we are focused on improving our results by improving utilization and well site execution, as well as effectively managing our costs.

"Our capital expenditures during the fourth quarter of 2019 were $41.4 million, and capital expenditures for the 12 months ended December 31, 2019 were $250.6 million, slightly less than previously forecasted. We finished the fourth quarter with $50.0 million in cash and continue to remain debt free," concluded Hubbell.

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