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RPC Inc. RES reported fourth-quarter 2024 adjusted earnings of 6 cents per share, in line with the Zacks Consensus Estimate. The bottom line declined from the year-ago figure of 19 cents.

Total quarterly revenues were $335.4 million, down from the year-ago quarter’s $394.5 million. The top line, however, beat the Zacks Consensus Estimate of $317 million.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The in-line quarterly earnings were aided by improved pressure pumping activity and lower cost of revenues. The positives were partially offset by lower activity within rental tools and higher selling, general and administrative costs.

RPC, Inc. Price, Consensus and EPS Surprise

RPC, Inc. price-consensus-eps-surprise-chart | RPC, Inc. Quote

Segmental Performance

Operating profit in the Technical Services segment totaled $10.6 million, significantly lower than the year-ago quarter’s $46.4 million. The results were primarily affected by higher direct costs, including insurance-related expenses and increased selling, general and administrative costs (SG&A).

Operating profit in the Support Services segment amounted to $2.6 million, lower than the year-ago level of $5 million. This decline can be attributed to lower activity within rental tools, combined with the high fixed costs inherent in these service lines.

Total operating profit in the quarter was $10.5 million, down from $49.2 million in the year-ago quarter. The average domestic rig count was 586, flat year over year.

The average oil price in the quarter was $70.59 per barrel, down 10.1% year over year. The average price of natural gas was $2.43 per thousand cubic feet, down 11.3% from the figure recorded in the corresponding period of 2023.

Costs & Expenses

In the fourth quarter, the cost of revenues decreased to $250.2 million from $279.4 million in the prior-year period. Selling, general and administrative expenses amounted to $41.2 million, higher than the year-ago quarter’s $38.1 million.

Financials

RPC’s total capital expenditure was $219.9 million.

As of Dec. 31, the company had cash and cash equivalents of $326 million and managed to maintain a debt-free balance sheet.

Outlook

RPC forecasts capital spending to be in the range of $150-$200 million in 2025.

RES’s Zacks Rank and Key Picks

RES currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the energy sector are Sunoco LP SUN, Equinor ASA EQNR and Cheniere Energy, Inc. LNG. Sunoco and Equinor currently sport a Zacks Rank #1 (Strong Buy) each, while Cheniere Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Sunoco LP is one of the largest distributors of motor fuel in the United States. The partnership distributes fuel to independent dealers, commercial customers, convenience stores and distributors. Its current distribution yield is greater than that of the industry's composite stocks, providing unitholders with consistent returns.

Equinor ASA is one of the leading integrated energy companies globally and the second-largest supplier of natural gas in Europe. The company’s expansion in the renewable energy space positions it for long-term growth as more and more countries transition toward cleaner energy solutions to meet their climate goals. Its strategic pivot toward low-carbon energy solutions unlocks new revenue streams in the growing market for clean energy and carbon management solutions.

Cheniere Energy is involved in LNG-related businesses, which include LNG terminals and natural gas marketing. The company has achieved a milestone with the first production from the first LNG train of its Corpus Christi Stage 3 Liquefaction Project. The project, which includes seven midscale LNG trains, aims to expand the production capacity of the Corpus Christi Liquefaction facility. This expansion is expected to enhance Cheniere's position in the rapidly growing global LNG market, enabling it to meet the rising demand for LNG, both in the United States and internationally.

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