RPC, Inc. Reports Third Quarter 2025 Financial Results And Declares Regular Quarterly Cash Dividend

ATLANTA, Oct. 30, 2025 /PRNewswire/ -- RPC, Inc. (NYSE: RES) ("RPC" or the "Company"), a leading diversified oilfield services company, announced its unaudited results for the third quarter ended September 30, 2025.

Non-GAAP and adjusted measures, including adjusted revenues, adjusted operating income, adjusted net income, adjusted earnings per share (diluted), EBITDA and adjusted EBITDA, adjusted EBITDA margin, and free cash flow are reconciled to the most directly comparable GAAP measures in the appendices of this earnings release.

Sequential comparisons are to 2Q:25. The Company believes quarterly sequential comparisons are most useful in assessing industry trends and RPC's recent financial results. Both sequential and year-over-year comparisons are available in the tables at the end of this earnings release.

Third Quarter 2025 Highlights

Management Commentary

"Sequentially we saw most of our service line revenues improve including pressure pumping, which saw a 14% increase from a soft second quarter. Cudd Pressure Control's coiled tubing business also posted a 19% increase, supported by the deployment of a new large diameter unit. Additionally, Thru-Tubing Solutions' downhole tools business continued to experience strong demand, driven by new product introductions that deliver leading performance for our customers. Patterson Services' rental tools and Pintail's wireline also saw modest increases in the quarter," stated Ben M. Palmer, RPC's President and Chief Executive Officer. "Our diversified offerings, strong brands, and balance sheet provide resiliency, yet the challenging environment continues to require disciplined execution."

"During the quarter we saw signs of stabilization, and even improvement, with August and September results higher than the June lows. However, with oil prices recently dipping below $60 a barrel and expected holiday slow downs and customer budget exhaustion, the oilfield services market is likely to face additional headwinds during the fourth quarter. Given these market conditions, we have and will continue to make incremental cost reductions during the quarter. We will invest in our businesses prudently and focus on full cycle returns."

Selected Industry Data (Source: Baker Hughes, Inc., U.S. Energy Information Administration)

3Q:25

2Q:25

Change

% Change

3Q:24

Change

% Change

U.S. rig count (avg)

540

571

(31)

(5.4)

586

(46)

(7.8)

Oil price ($/barrel)

65.85

64.74

1.11

1.7

76.57

(10.72)

(14.0)

Natural gas ($/Mcf)

3.04

3.20

(0.16)

(5.0)

2.10

0.94

44.8

3Q:25 Consolidated Financial Results (sequential comparisons to previous quarter)

Revenues were $447.1 million, up 6%. Revenues for our three largest service lines grew sequentially during the quarter with pressure pumping increasing 14% followed by downhole tools at 5% and wireline at 1%. Within the Technical Services segment, we saw revenues increase 6% sequentially with the biggest dollar increases generated by pressure pumping followed by coiled tubing, which benefited from the delivery of a new unit. Within the Support Services segment, rental tools generated a 4% sequential revenue increase during the quarter.

Cost of revenues , which excludes depreciation and amortization of $38.4 million, was $334.7 million, up from $317.7 million. These costs increased 5% during the quarter. The increase was primarily due to expenses that vary with increased activity.

Selling, general and administrative expenses were $44.6 million, up from $40.8 million, primarily due to accrual adjustments related to employment incentives and higher other employment related costs; as a percent of revenues, SG&A increased 30 basis points to 10.0%.

Acquisition related employment costs were approximately $6.5 million during 3Q:25 and represent non-cash accounting adjustments related to the Pintail acquisition costs that are contingent upon continued employment. The remaining Acquisition related employment costs, totaling $65.1 million, are expected to be recognized equally over the next 10 quarters.

Interest income totaled $1.7 million, approximating the prior quarter.

Interest expense totaled $949 thousand, approximating the prior quarter and mostly related to the seller note issued in conjunction with the Pintail acquisition.

Income tax provision was $9.6 million, or 42.6% of income before income taxes. The effective tax rate was unusually high primarily due to the non-deductible portion of Acquisition related employment costs and provision to tax return adjustments.

Net income and diluted EPS were $13.0 million and $0.06, respectively, versus $10.1 million and $0.05, respectively, in 2Q:25. Net income margin increased 50 basis points sequentially to 2.9%.

Adjusted net income and adjusted diluted EPS were $18.4 million and $0.09, respectively, versus $17.5 million and $0.08, respectively, in 2Q:25. Adjusted net income margin remained relatively unchanged at 4.1%.

Adjusted EBITDA was $72.3 million, up from $65.6 million, due to the broad-based revenue increases across the majority of our businesses. Adjusted EBITDA margin increased 60 basis points sequentially to 16.2%.

Balance Sheet, Cash Flow and Capital Allocation

Cash and cash equivalents were $163.5 million at the end of the third quarter, with no outstanding borrowings under the Company's $100 million revolving credit facility.

Net cash provided by operating activities and free cash flow was $139.5 million and $21.7 million, respectively, year-to-date through 3Q:25.

Payment of dividends totaled $26.3 million year-to-date through 3Q:25. Additionally, the Board of Directors declared a regular quarterly cash dividend of $0.04 per share, payable on December 10, 2025, to common stockholders of record at the close of business on November 10, 2025.

Share repurchases totaled $2.9 million year-to-date through 3Q:25, all of which related to tax withholding for restricted stock vesting.

Segment Operations (sequential comparisons versus the previous quarter)

Technical Services performs value-added completion, production and maintenance services directly to a customer's well. These services include pressure pumping, downhole tools, wireline, coiled tubing, cementing, and other offerings.

Support Services provides equipment for customer use or services to assist customer operations, including rental tools, pipe inspection services and storage.

Three months ended

Nine months ended

September 30,

June 30,

September 30,

(In thousands)

2025

2024

2025

2024

(Unaudited)

Revenues:

Technical Services

422,206

396,754

313,492

1,130,804

1,011,370

Support Services

24,897

24,055

24,160

69,985

68,268

Total revenues

447,103

420,809

337,652

1,200,789

1,079,638

Operating income:

Technical Services

24,448

21,123

16,344

59,574

78,498

Support Services

4,604

4,639

5,286

11,904

13,264

Corporate expenses

(5,348)

(5,871)

(4,216)

(17,023)

(11,083)

Acquisition related employment costs

(6,467)

(6,554)

—

(13,021)

—

Gain on disposition of assets, net

3,563

2,199

1,790

7,288

6,342

Total operating income

20,800

15,536

19,204

48,722

87,021

Interest expense

(949)

(1,007)

(261)

(2,087)

(594)

Interest income

1,748

1,618

3,523

6,761

9,831

Other income, net

968

1,152

1,005

3,005

2,504

Income before income taxes

22,567

17,299

23,471

56,401

98,762

Conference Call Information

RPC, Inc. will hold a conference call today, October 30, 2025, at 9:00 a.m. ET to discuss the results for the quarter. Interested parties may listen in by accessing a live webcast in the investor relations section of RPC, Inc.'s website at www.rpc.net. The live conference call can also be accessed by calling (888) 440-5966, or (646) 960-0125 for international callers, and using conference ID number 9842359. For those not able to attend the live conference call, a replay will be available in the investor relations section of RPC, Inc.'s website beginning approximately two hours after the call and for a period of 90 days.

About RPC

RPC provides a broad range of specialized oilfield services and equipment primarily to independent and major oilfield companies engaged in the exploration, production and development of oil and gas properties throughout the United States, including the Gulf of America, mid-continent, southwest, Appalachian and Rocky Mountain regions, and in selected international markets. RPC's investor website can be found at www.rpc.net.

Forward Looking Statements

Certain statements and information included in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include statements that look forward in time or express management's beliefs, expectations or hopes. In particular, such statements include, without limitation: our belief that our diversified offerings and strong brands and balance sheet provide resiliency; our statement that, despite our resilience, the challenging environment continues to require disciplined execution; our belief that the oilfield services market is likely to face additional headwinds during the fourth quarter in connection with oil prices recently dipping below $60 a barrel, expected holiday slow downs, and customer budget exhaustion; our statement that we will continue to take incremental cost reductions; our statement that we will invest in our businesses prudently and focus on full cycle returns; our expectation that the remaining Acquisition employment costs will be recognized equally over the next 10 quarters. Risk factors that could cause such future events not to occur as expected include the following: the price of oil and natural gas and overall performance of the U.S. economy, both of which can impact capital spending by our customers and demand for our services; the impact of tariffs, which may increase our cost of materials and impact our profitability, business interruptions due to adverse weather conditions; changes in the competitive environment of our industry; political instability in the petroleum-producing regions of the world; the actions of the OPEC oil cartel; our customers' drilling and production activities; the risk that our assessments, such as regarding the oversupplied nature of oilfield services, will turn out incorrect; and our ability to identify and complete acquisitions and/or other strategic investments or transactions. Additional factors that could cause the actual results to differ materially from management's projections, forecasts, estimates, and expectations are contained in RPC's Form 10-K for the year ended December 31, 2024.

For information about RPC, Inc., please contact:

Joshua Large,

Vice President, Corporate Finance and Investor Relations

(404) 321-2152

jlarge@rpc.net

Michael L. Schmit,

Chief Financial Officer

(404) 321-2140

irdept@rpc.net

RPC INCORPORATED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per share data)

Three months ended

Nine months ended

September 30,

June 30,

September 30,

2025

2024

2025

2024

(Unaudited)

REVENUES

447,103

420,809

337,652

1,200,789

1,079,638

COSTS AND EXPENSES:

Cost of revenues (exclusive of depreciation and amortization shown separately below)

334,673

317,746

247,507

896,314

786,400

Selling, general and administrative expenses

44,628

40,825

37,697

127,952

115,188

Acquisition related employment costs

6,467

6,554

—

13,021

—

Depreciation and amortization

44,098

42,347

35,034

122,068

97,371

Gain on disposition of assets, net

(3,563)

(2,199)

(1,790)

(7,288)

(6,342)

Operating income

20,800

15,536

19,204

48,722

87,021

Interest expense

(949)

(1,007)

(261)

(2,087)

(594)

Interest income

1,748

1,618

3,523

6,761

9,831

Other income, net

968

1,152

1,005

3,005

2,504

Income before income taxes

22,567

17,299

23,471

56,401

98,762

Income tax provision

9,604

7,151

4,675

21,260

20,080

NET INCOME

12,963

10,148

18,796

35,141

78,682

EARNINGS PER SHARE

Basic

0.06

0.05

0.09

0.16

0.37

Diluted

0.06

0.05

0.09

0.16

0.37

WEIGHTED AVERAGE SHARES OUTSTANDING

Basic

220,575

220,610

214,976

218,959

214,940

Diluted

220,575

220,610

214,976

218,959

214,940

RPC INCORPORATED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands)

September 30,

December 31,

2025

2024

(Unaudited)

ASSETS

Cash and cash equivalents

163,462

325,975

Accounts receivable, net

359,901

276,577

Inventories

117,685

107,628

Income taxes receivable

3,376

4,332

Prepaid expenses

12,023

16,136

Retirement plan assets

32,653

—

Other current assets

12,189

2,194

Total current assets

701,289

732,842

Property, plant and equipment, net

560,298

513,516

Operating lease right-of-use assets

24,726

27,465

Finance lease right-of-use assets

5,758

4,400

Goodwill

74,257

50,824

Other intangibles, net

104,501

13,843

Retirement plan assets

—

30,666

Other assets

27,967

12,933

Total assets

1,498,796

1,386,489

LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES

Accounts payable

143,228

84,494

Accrued payroll and related expenses

30,651

25,243

Accrued insurance expenses

9,089

7,942

Accrued state, local and other taxes

7,096

3,234

Income taxes payable

810

446

Unearned revenue

—

45,376

Current portion of operating lease liabilities

7,482

7,108

Current portion of finance lease liabilities

4,222

3,522

Retirement plan liabilities

24,129

—

Current portion of notes payable

20,000

—

Accrued expenses and other liabilities

5,402

4,548

Total current liabilities

252,109

181,913

Accrued insurance expenses

13,816

12,175

Retirement plan liabilities

—

24,539

Note payable

30,000

—

Operating lease liabilities

18,291

21,724

Finance lease liabilities

1,011

559

Other long-term liabilities

10,897

9,099

Deferred income taxes

70,279

58,189

Total liabilities

396,403

308,198

STOCKHOLDERS' EQUITY

Common stock

22,058

21,494

Capital in excess of par value

—

Retained earnings

1,082,989

1,059,625

Accumulated other comprehensive loss

(2,654)

(2,828)

Total stockholders' equity

1,102,393

1,078,291

Total liabilities and stockholders' equity

1,498,796

1,386,489

RPC INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

Nine months ended September 30,

2025

2024

(Unaudited)

OPERATING ACTIVITIES

Net income

35,141

78,682

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

122,068

97,371

Acquisition related employment costs

13,021

—

Working capital

(43,696)

77,081

Other operating activities

12,934

2,081

Net cash provided by operating activities

139,468

255,215

INVESTING ACTIVITIES

Capital expenditures

(117,780)

(179,460)

Proceeds from sale of assets

15,931

14,127

Purchase of business, net of cash and debt assumed

(165,656)

—

Net cash used for investing activities

(267,505)

(165,333)

FINANCING ACTIVITIES

Payment of dividends

(26,300)

(25,784)

Repayment of debt assumed at acquisition

(4,502)

—

Cash paid for common stock purchased and retired

(2,868)

(9,928)

Cash paid for finance lease and finance obligations

(806)

(592)

Net cash used for financing activities

(34,476)

(36,304)

Net (decrease) increase in cash and cash equivalents

(162,513)

53,578

Cash and cash equivalents at beginning of period

325,975

223,310

Cash and cash equivalents at end of period

163,462

276,888

Non-GAAP Measures

RPC, Inc. has used the non-GAAP financial measures of adjusted revenues, adjusted operating income, adjusted net income, adjusted net income margin, adjusted earnings per share, adjusted EBITDA, adjusted EBITDA margin and free cash flow in today's earnings release. These measures should not be considered in isolation or as a substitute for performance or liquidity measures prepared in accordance with GAAP. Management believes that presenting these non-GAAP measures, other than free cash flow, enables investors to compare the operating performance of our core business consistently over various time periods, and in the case of Adjusted EBITDA, without regard to changes in our capital structure. Management believes that free cash flow, which measures our ability to generate additional cash from our business operations, is an important financial measure for use in evaluating RPC's liquidity. Free cash flow should be considered in addition to, rather than as a substitute for, net cash provided by operating activities as a measure of our liquidity. Additionally, RPC's definition of free cash flow is limited, in that it does not represent residual cash flows available for discretionary expenditures, due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations or payments made for business acquisitions. Therefore, management believes it is important to view free cash flow as a measure that provides supplemental information to our Condensed Consolidated Statements of Cash Flows.

A non-GAAP financial measure is a numerical measure of financial performance, financial position, or cash flows that either 1) excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of operations, balance sheet or statement of cash flows, or 2) includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented.

Set forth in the appendices below are reconciliations of these non-GAAP measures with their most directly comparable GAAP measures. These reconciliations also appear on RPC, Inc.'s investor website, which can be found at www.rpc.net.

Appendix A

(Unaudited)

Three months ended

Nine months ended

September 30,

June 30,

September 30,

(In thousands)

2025

2024

2025

2024

Reconciliation of Operating Income to Adjusted Operating Income

Operating income

20,800

15,536

19,204

48,722

87,021

Add: Acquisition related employment costs

6,467

6,554

—

13,021

—

Adjusted operating income

27,267

22,090

19,204

61,743

87,021

Appendix B

(Unaudited)

Three months ended

Nine months ended

September 30,

June 30,

September 30,

(In thousands)

2025

2024

2025

2024

Reconciliation of Net Income to Adjusted Net Income

Net income

12,963

10,148

18,796

35,141

78,682

Adjustments:

Add: Acquisition related employment costs, before taxes

6,467

6,554

—

13,021

—

Add: Tax effect of Acquisition related employment costs

(1,051)

802

—

(249)

—

Total adjustments, net of tax

5,416

7,356

—

12,772

—

Adjusted net income

18,379

17,504

18,796

47,913

78,682

(Unaudited)

Three months ended

Nine months ended

September 30,

June 30,

September 30,

2025

2024

2025

2024

Reconciliation of Diluted Earnings Per Share to Adjusted Diluted Earnings Per Share

Diluted earnings per share

0.06

0.05

0.09

0.16

0.37

Adjustments:

Add: Acquisition related employment costs, before taxes

0.03

—

0.06

—

Add: Tax effect of Acquisition related employment costs

—

Total adjustments, net of tax

0.03

—

0.06

—

Adjusted diluted earnings per share

0.09

0.08

0.09

0.22

0.37

Weighted average shares outstanding (in thousands)

220,575

220,610

214,976

218,959

214,940

Appendix C

(Unaudited)

Three months ended

Nine months ended

September 30,

June 30,

September 30,

(In thousands)

2025

2024

2025

2024

Reconciliation of Net Income to EBITDA and Adjusted EBITDA

Net income

12,963

10,148

18,796

35,141

78,682

Adjustments:

Add: Income tax provision

9,604

7,151

4,675

21,260

20,080

Add: Interest expense

949

1,007

261

2,087

594

Add: Depreciation and amortization

44,098

42,347

35,034

122,068

97,371

Less: Interest income

1,748

1,618

3,523

6,761

9,831

EBITDA

65,866

59,035

55,243

173,795

186,896

Add: Acquisition related employment costs

6,467

6,554

—

13,021

—

Adjusted EBITDA

72,333

65,589

55,243

186,816

186,896

Revenues

447,103

420,809

337,652

1,200,789

1,079,638

Net income margin (1)

2.90 %

2.41 %

5.57 %

2.93 %

7.29 %

Adjusted net income margin (1)

4.11 %

4.16 %

5.57 %

3.99 %

7.29 %

Adjusted EBITDA margin (1)

16.18 %

15.59 %

16.36 %

15.56 %

17.31 %

(1) Net income margin is calculated as Net income divided by Revenues. Adjusted net income margin is calculated as Adjusted net income divided by Revenues. Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by Revenues.

Appendix D

(Unaudited)

Nine months ended September 30,

(In thousands)

2025

2024

Reconciliation of Operating Cash Flow to Free Cash Flow

Net cash provided by operating activities

139,468

255,215

Capital expenditures

(117,780)

(179,460)

Free cash flow

21,688

75,755

SOURCE RPC, Inc.