RES — RPC, Inc.

Summary of RPC, Inc. Q2 2026 Earnings Call

1. Key Financial Results and Metrics

• Revenues: Increased 1% sequentially to $461 million.
  • Technical Services: 95% of total revenues, up 1%.
  • Support Services: 5% of revenues, up 11%.
• Adjusted Diluted EPS: $0.08 per share, with adjustments totaling $0.03 per share.
• Adjusted EBITDA: Rose to $66 million, up from $53.5 million, with an EBITDA margin of 14.3%.
• SG&A Expenses: Increased to $52 million from $48 million, primarily due to incentive compensation and higher bad debt expense.
• Free Cash Flow: $4 million after $71 million in CapEx.
• Cash Position: Approximately $180 million in cash, no borrowings on a $100 million revolving credit facility.

2. Strategic Updates and Business Highlights

• CEO Succession: Ben Palmer announced his retirement by the end of 2026, with a search for his successor underway.
• Technical Services Growth:
  • ThruTubing Solutions' downhole tools revenues increased 10% sequentially, driven by new product introductions and strong regional performance.
  • Cudd Pressure Control revenues rose 8%, with notable growth in coiled tubing and snubbing services.
• Product Innovations: Introduction of new sizes for the MetalMax power section and successful trials of UnPlug technology.
• Investment Strategy: Increased capital expenditure guidance to $170-$190 million for targeted growth investments.

3. Forward Guidance and Outlook

• Market Conditions: The company remains cautious about broader industry improvements but is optimistic about its differentiated technologies and strong balance sheet.
• Activity Levels: No significant changes expected in near-term activity; however, there is potential for improved E&P budgets in 2027 due to favorable oil prices.
• Operational Focus: Continued emphasis on cash flow generation and full-cycle returns while remaining disciplined in capital allocation.

4. Bad News, Challenges, or Points of Concern

• Wireline Market: Pintail wireline revenues fell 16% sequentially due to reduced customer activity and aggressive competitor pricing.
• Pressure Pumping: A slight revenue decrease of 1% attributed to lower pump hours, despite improved pricing.
• Competitive Pressures: The company faces a highly competitive environment, particularly in wireline services, impacting pricing discipline and market share.
• Geopolitical Risks: Ongoing volatility from geopolitical events creates uncertainty for customer investment decisions, leading to cautious operator behavior.

5. Notable Q&A Insights

• Coiled Tubing Units: Ben Palmer indicated that upgrades to coiled tubing units are focused on specific basins (South Texas, Mid-Con, Permian) but are mobile based on customer relationships.
• Fracturing Fleet: Palmer noted no plans for incremental horsepower deployments, emphasizing prudent upgrades to existing equipment rather than aggressive expansion.
• Market Discipline: The company is committed to maintaining discipline in pricing and capital allocation, focusing on generating decent returns without overextending operational capabilities.

This summary encapsulates the key points from RPC, Inc.'s Q2 2026 earnings call, highlighting both the company's achievements and the challenges it faces in a competitive market.