RPC Inc (RES) Reports In-Line Q1 EPS, Revenues Beat

RPC Inc (NYSE: RES) reported Q1 EPS of ($0.04), in-line with the analyst estimate of ($0.04). Revenue for the quarter came in at $182.6 million versus the consensus estimate of $157.61 million.

Management Commentary

"First quarter revenues increased compared to the prior quarter in all of our major service lines as oil prices increased and customers initiated their annual drilling and completion plans," stated Richard A. Hubbell, RPC's President and Chief Executive Officer. "Equipment and crew utilization increased as we continued to improve efficiencies and streamlined operations. Job mix in several service lines contributed to our sequential revenue growth as well. These activity improvements were partially offset by the extreme winter weather in February in many of our markets, particularly the Permian Basin. This event hurt profitability because of weather-related expenses and inefficiencies arising from a two-week long operational disruption.

"As we begin the second quarter, we believe near-term industry activity will be similar to the first quarter, adjusted for the weather impact. Although drilling and completion activities have improved, supported by higher oil prices and customer spending, the oilfield services industry is still faced with overcapacity. We believe pricing for our services will continue to be intensely competitive, and financial returns do not presently support significant growth capital expenditures. Our first quarter capital expenditures of $11.8 million reflect this conservative outlook, and we are pleased that our cash balance at the end of the quarter was $85.4 million, slightly higher than year-end 2020," concluded Hubbell.

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

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