RPC posts $41.9M Q3 2026 loss as revenue rises
A $74.5 million non-cash Pintail impairment coincided with a $41.9 million quarterly net loss, while adjusted EBITDA rose 8% sequentially.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
RPC, Inc. (RES) reported third-quarter 2026 results and declared a regular quarterly cash dividend. Revenue was $467.7 million, up $6.9 million sequentially; RPC recorded a $41.9 million net loss, compared with $12.1 million net income in the second quarter. Results included $74.5 million in non-cash impairment charges related to Pintail. The company said persistent pricing weakness, lower activity and cost pressure led it to conclude Pintail’s asset group was not fully recoverable. Adjusted net income was $22.8 million, versus $17.8 million, and adjusted EBITDA was $71.5 million, up 8% sequentially from $66.0 million.
Cash and cash equivalents were $177.1 million as of September 30, 2026, down $32.9 million year to date. RPC had no outstanding borrowings under its $100 million revolving credit facility during the quarter. Year-to-date net cash provided by operating activities was $115.7 million and free cash flow was $5.0 million. The board declared a $0.04-per-share dividend, payable December 10, 2026, to common stockholders of record November 10, 2026.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointAdjusted EBITDA increased 8% to $71.5 million sequentially.
Negative
- Moderate pointThird-quarter net loss was $41.9 million, versus $12.1 million net income in the second quarter.
Filing Explained
RPC identifies a continuing Pintail valuation uncertainty: continued pricing weakness, lower activity or cost pressure could require further impairment charges.
8-K Event Classification
Key Figures
Key Terms
Adjusted EBITDA financial
Free cash flow financial
Non-GAAP financial measure financial
Impairment charges financial
Earnings Snapshot
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were RES's third-quarter 2026 financial results?
What dividend did RPC (RES) declare?
What assets were included in RPC's third-quarter impairment?
How much cash flow did RES report year to date?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
(Exact name of registrant as specified in its charter)
(State or Other Jurisdiction | (Commission File Number) | (IRS Employer |
(Address of principal executive office) (zip code)
Registrant's telephone number, including area code: (
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
|
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
|
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
|
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | | Trading Symbol(s) | | Name of each exchange on which registered |
|
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On October 29, 2026, RPC, Inc. issued a press release titled “RPC, Inc. Reports Third Quarter 2026 Financial Results and Declares Regular Quarterly Cash Dividend,” announcing the financial results for the third quarter ended September 30, 2026.
Item 9.01. Financial Statements and Exhibits.
| 99.1 | | Press Release dated October 29, 2026 |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
-2-
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, RPC, Inc. has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| RPC, Inc. |
|
|
Date: October 29, 2026 | /s/ Michael L. Schmit |
| Michael L. Schmit |
| Vice President and Chief Financial Officer |
-3-
Page 1
Third Quarter 2026 Earnings Release
Exhibit 99.1
RPC, Inc. Reports Third Quarter 2026 Financial Results
And Declares Regular Quarterly Cash Dividend
ATLANTA, October 29, 2026 - 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, 2026.
Non-GAAP and adjusted measures may include Adjusted operating income, Adjusted net income, Adjusted net income margin, Adjusted earnings per share (diluted), EBITDA and Adjusted EBITDA, Adjusted EBITDA margin, and Free cash flow which are reconciled to the most directly comparable GAAP measures in the appendices of this earnings release.
Sequential comparisons are to 2Q:26. 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 2026 Highlights
| ● | Revenues increased 1% sequentially to $467.7 million. |
| ● | Net loss, including non-cash impairment charges, was $41.9 million, compared to Net income of $12.1 million in the prior quarter, and Loss per share was $0.20; Net loss margin was 9.0% compared with Net income margin of 2.6% in 2Q:26. |
| ● | The Net loss in the third quarter included non-cash impairment charges of $74.5 million related to Pintail, our wireline business. Impairment charges reflect Pintail’s persistent pricing weakness as well as lower activity and cost pressure. See discussion below and Appendices A through C. |
| ● | Adjusted net income was $22.8 million, compared to $17.8 million in the prior quarter, and Adjusted diluted earnings per share (EPS) was $0.10; Adjusted net income margin was 4.9%. See Appendices B and C for additional details. |
| ● | Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) was $71.5 million, compared to $66.0 million in the prior quarter; Adjusted EBITDA margin was 15.3% compared with Adjusted EBITDA margin of 14.3% in 2Q:26. See Appendix C for additional details. |
| ● | The Board of Directors declared a regular quarterly cash dividend of $0.04 per share, payable on December 10, 2026, to common stockholders of record at the close of business on November 10, 2026. |
Management Commentary
“During the quarter, Revenues improved, reflecting continued strength across several of our service lines. Within our Technical Services segment Cudd Pressure Controls’ Coiled Tubing, Nitrogen, and Snubbing revenues each grew double digits, partially offset by lower Pintail Wireline revenues. Our Support Services segment revenues grew 3% sequentially led by Patterson Rental Tools, which increased 7%. Our results benefited from improved profitability across much of our portfolio, demonstrating the value of RPC’s diversified service offerings.”
“While the oilfield services market remains very competitive, drilling and completion activity has improved during the year resulting in higher customer activity levels in several of our service lines. Current oil prices are supporting a more favorable operating environment. At the same time, inflationary pressures across several expense categories, particularly labor, trucking and fuel, continue to create cost pressures.”
Page 2
Third Quarter 2026 Earnings Release
“The breadth of our service offerings, strong balance sheet and disciplined capital allocation strategy continue to position RPC to respond to changing customer activity levels while pursuing opportunities that enhance long-term shareholder returns,” stated Ben M. Palmer, RPC’s President and Chief Executive Officer.
Selected Industry Data (Source: Baker Hughes Company, U.S. Energy Information Administration)
| | 3Q:26 | | 2Q:26 | | Change | | % Change | | 3Q:25 | | Change | | % Change |
| |||||
Average U.S. Rig Count |
| | 589 |
| | 554 |
| | 35 |
| 6.3 | % | | 540 |
| | 49 |
| 9.1 | % |
Average Oil Price ($/barrel) | | $ | 86.07 | | $ | 96.54 | | $ | (10.47) |
| (10.8) | % | $ | 65.85 | | $ | 20.22 |
| 30.7 | % |
Average Natural Gas Price ($/Mcf) | | $ | 2.88 | | $ | 2.94 | | $ | (0.06) |
| (2.0) | % | $ | 3.04 | | $ | (0.16) |
| (5.3) | % |
3Q:26 Consolidated Financial Results (sequential comparisons to previous quarter)
Revenues were $467.7 million, up $6.9 million compared to the previous quarter. Within the Technical Services segment, revenues increased $6.1 million sequentially, with increases in Coiled Tubing, Nitrogen and Snubbing partially offset by a decrease in Wireline revenues. Support Services segment revenues were up 3% primarily due to an increase in Rental Tools.
Cost of revenues, which excludes depreciation and amortization of $37.0 million, increased to $349.8 million, up from $345.7 million, primarily reflecting the increase in revenues.
Selling, general and administrative expenses were $50.8 million, essentially unchanged compared with $51.5 million in the prior quarter.
Impairment charges were $74.5 million, all of which were non-cash, reflecting the excess of the carrying amount of Pintail’s asset group over its estimated fair value. Pintail’s persistent pricing weakness, lower activity and cost pressure led management to conclude that the carrying amount of the Pintail asset group was not fully recoverable. Of the total impairment charges, $58.3 million related to Pintail’s Other intangible assets, net with the remaining $16.2 million related to Property, plant and equipment.
Acquisition related employment costs were approximately $7.3 million during 3Q:26, unchanged from 2Q:26, and represent non-cash accounting adjustments for costs related to the Pintail acquisition that are contingent upon continued employment.
Depreciation and amortization were $42.7 million during 3Q:26, slightly down from the previous quarter.
Interest income totaled $1.5 million, a decrease of 2% compared to the prior quarter. The decrease was due to a lower average cash balance reflecting a $20.0 million principal payment on a note payable made in 2Q:26.
Interest expense totaled $533 thousand, a decrease of 21% compared to the prior quarter, primarily due to the principal reduction of a note payable.
Income tax benefit was $10.0 million, compared to tax provision of $4.5 million in the prior quarter. The effective benefit rate was 19.2% on a pretax loss of $51.9 million, primarily reflecting the impact of unfavorable permanent differences on the quarter’s pretax loss. In addition, the effective rate includes the impact of impairment charges recorded in the third quarter.
Net loss and Loss per share totaled $41.9 million and $0.20, respectively, compared with net income of $12.1 million and diluted earnings per share of $0.05, respectively, in 2Q:26. Net loss margin was 9.0% in 3Q:26 compared to net income margin of 2.6% in 2Q:26. See Appendix C for additional details.
Adjusted net income and Adjusted diluted EPS were $22.8 million and $0.10, respectively, versus $17.8 million and $0.08, respectively, in 2Q:26. Adjusted net income margin increased to 4.9% compared to 3.9% in 2Q:26. See Appendix B for additional details.
Page 3
Third Quarter 2026 Earnings Release
Adjusted EBITDA was $71.5 million, an 8% increase from $66.0 million in 2Q:26. Adjusted EBITDA margin increased 100 basis points sequentially to 15.3%. See Appendix C for additional details.
Balance Sheet, Cash Flow and Capital Allocation
Cash and cash equivalents decreased $32.9 million year-to-date to $177.1 million at the end of the third quarter, primarily due to working capital needs associated with increased activity and a $20.0 million principal payment on a note payable. The Company had no outstanding borrowings under its $100 million revolving credit facility during the quarter.
Net cash provided by operating activities and Free cash flow were $115.7 million and $5.0 million, respectively, year-to-date through 3Q:26. Working capital was a significant use of cash primarily due to higher accounts receivable resulting from increased customer activity and timing of collections, and strategic inventory purchases including key components in short supply. See Appendix D for additional details.
Payment of dividends totaled $26.6 million year-to-date. Additionally, the Board of Directors declared a regular quarterly cash dividend of $0.04 per share, payable on December 10, 2026, to common stockholders of record at the close of business on November 10, 2026.
Share repurchases totaled $3.5 million year-to-date, related to tax withholdings 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.
| - | Revenues were $444.2 million, up 1% |
| - | Operating income was $28.9 million, up 5% |
| - | Results were driven primarily by higher activity in Coiled Tubing and Nitrogen |
| - | These results exclude the impairment charges of $74.5 million, all of which relate to this segment |
Support Services provides equipment for customer use or services to assist customer operations, including Rental Tools, pipe inspection services and storage.
| - | Revenues were $23.5 million, up 3% |
| - | Operating income was $3.6 million, up 56% |
| - | Results were driven by higher activity in Rental Tools and the fixed-cost nature of this service line |
Page 4
Third Quarter 2026 Earnings Release
| | Three months ended | | Nine months ended | |||||||||||
| | September 30, | | June 30, | | September 30, | | September 30, | | September 30, | |||||
(In thousands) (Unaudited) | | 2026 | | 2026 | | 2025 | | 2026 | | 2025 | |||||
| | | | | | |
| | |
| | | | | |
Revenues: |
| | | | | | | | | | | |
| | |
Technical Services | | $ | 444,234 | | $ | 438,115 | | $ | 422,206 | | $ | 1,316,631 | | $ | 1,130,804 |
Support Services | |
| 23,501 | |
| 22,754 | |
| 24,897 | |
| 66,728 | |
| 69,985 |
Total revenues | | $ | 467,735 | | $ | 460,869 | | $ | 447,103 | | $ | 1,383,359 | | $ | 1,200,789 |
Operating income (loss): | |
| | |
| | |
| | |
| | |
| |
Technical Services | | $ | 28,865 | | $ | 27,562 | | $ | 24,448 | | $ | 72,405 | | $ | 59,574 |
Support Services | |
| 3,568 | |
| 2,290 | |
| 4,604 | |
| 6,259 | |
| 11,904 |
Corporate expenses | |
| (7,921) | |
| (9,206) | |
| (5,348) | |
| (25,397) | |
| (17,023) |
Impairment charges | | | (74,464) | | | — | | | — | | | (74,464) | | | — |
Acquisition related employment costs | |
| (7,292) | |
| (7,291) | |
| (6,467) | |
| (21,875) | |
| (13,021) |
Gain on disposition of assets, net | |
| 3,471 | |
| 1,416 | |
| 3,563 | |
| 6,690 | |
| 7,288 |
Total operating (loss) income | | $ | (53,773) | | $ | 14,771 | | $ | 20,800 | | $ | (36,382) | | $ | 48,722 |
Interest expense | |
| (533) | |
| (671) | |
| (949) | |
| (2,034) | |
| (2,087) |
Interest income | |
| 1,509 | |
| 1,546 | |
| 1,748 | |
| 4,825 | |
| 6,761 |
Other income, net | |
| 886 | |
| 929 | |
| 968 | |
| 2,564 | |
| 3,005 |
(Loss) income before income taxes | | $ | (51,911) | | $ | 16,575 | | $ | 22,567 | | $ | (31,027) | | $ | 56,401 |
Conference Call Information
RPC, Inc. will hold a conference call today, October 29, 2026, 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 (833) 461-5787, or +1 (585) 542-9983 for international callers, and using conference ID number 969-648-725. 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 approximately 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. Forward-looking statements generally relate to future events or performance and often can be identified by the use of words such as “may,” “will,” “should,” “could,” “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “project,” “target,” “potential,” “continue,” or similar expressions. In particular, forward-looking statements in this press release include, without limitation, the Company’s statements regarding (i) continued strength across our service lines, (ii) any implied or express statements regarding improvements in customer activity levels in several of our service lines, and positive impact on the operating environment from current oil prices, (iii) any implied or express statements regarding the continuation of cost pressures across several expense categories, particularly labor, trucking and fuel, (iv) the value of RPC’s diversified service offering, (v) that the breadth of our service offerings, strong balance sheet and disciplined capital allocation strategy continue to position RPC to respond to changing customer activity levels while pursuing opportunities that enhance long-term shareholder returns, and (vi) our intent to pay a dividend in the fourth quarter. These forward-looking statements are based on the Company’s current expectations and assumptions and are subject to a number of risks and uncertainties, many of which are beyond the Company’s control, that could cause actual results to differ materially from those expressed or implied by the forward-looking statements. These risks and uncertainties include, among others,
Page 5
Third Quarter 2026 Earnings Release
changes in the price of oil and natural gas and the overall performance of the U.S. and global economies; levels of capital spending by our customers and the resulting demand for our services; the impact of tariffs and other trade actions, which may increase our cost of materials and affect our profitability; business interruptions due to adverse weather conditions or other natural or man-made disasters; changes in the competitive environment of our industry; political instability and geopolitical events in petroleum-producing regions of the world, including actions by the United States or other governments, such as the recent actions by the United States in Iran and Venezuela, and any related sanctions or disruptions of key transportation routes such as the Strait of Hormuz; actions of OPEC and other oil producing nations; our customers’ drilling and production activities; the possibility that our ongoing integration of Pintail and/or its operating performance may not match our previous projections, including the possibility of continued pricing weakness, lower activity levels and cost pressure requiring further impairments with respect to Pintail, and our ability to identify, consummate and successfully integrate acquisitions and/or other strategic investments or transactions. The ability to pay dividends may be impacted by many factors including our liquidity and the possibility of unanticipated needs for cash, as well as potential alternative uses for available cash. Additional factors that could cause actual results to differ materially from management’s projections, forecasts, estimates and expectations are described under “Risk Factors,” “Forward-Looking Statements” and elsewhere in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, and in other reports and filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date of this press release, and readers are cautioned not to place undue reliance on such statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements after the date of this press release, whether as a result of new information, future events or otherwise, except as required by applicable law.
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
Page 6
Third Quarter 2026 Earnings Release
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, | | September 30, | | September 30, | |||||
| | 2026 | | 2026 | | 2025 | | 2026 | | 2025 | |||||
(Unaudited) | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
REVENUES | | $ | 467,735 | | $ | 460,869 | | $ | 447,103 | | $ | 1,383,359 | | $ | 1,200,789 |
COSTS AND EXPENSES: | |
| | | | | | | | | | | | | |
Cost of revenues (exclusive of depreciation and amortization shown separately below) | |
| 349,752 | | | 345,718 | | | 334,673 | | | 1,051,055 | | | 896,314 |
Selling, general and administrative expenses | |
| 50,813 | | | 51,523 | | | 44,628 | | | 150,543 | | | 127,952 |
Impairment charges | | | 74,464 | | | — | | | — | | | 74,464 | | | — |
Acquisition related employment costs | |
| 7,292 | | | 7,291 | | | 6,467 | | | 21,875 | | | 13,021 |
Depreciation and amortization | |
| 42,658 | | | 42,982 | | | 44,098 | | | 128,494 | | | 122,068 |
Gain on disposition of assets, net | |
| (3,471) | | | (1,416) | | | (3,563) | | | (6,690) | | | (7,288) |
Operating (loss) income | |
| (53,773) | | | 14,771 | | | 20,800 | | | (36,382) | | | 48,722 |
Interest expense | |
| (533) | | | (671) | | | (949) | | | (2,034) | | | (2,087) |
Interest income | |
| 1,509 | | | 1,546 | | | 1,748 | | | 4,825 | | | 6,761 |
Other income, net | |
| 886 | | | 929 | | | 968 | | | 2,564 | | | 3,005 |
(Loss) income before income taxes | |
| (51,911) | | | 16,575 | | | 22,567 | | | (31,027) | | | 56,401 |
Income tax (benefit) provision | |
| (9,982) | | | 4,500 | | | 9,604 | | | (2,028) | | | 21,260 |
NET (LOSS) INCOME | | $ | (41,929) | | $ | 12,075 | | $ | 12,963 | | $ | (28,999) | | $ | 35,141 |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
(LOSS) EARNINGS PER SHARE | |
| | |
| | |
| | |
| | |
| |
Basic | | $ | (0.20) | | $ | 0.05 | | $ | 0.06 | | $ | (0.14) | | $ | 0.16 |
Diluted | | $ | (0.20) | | $ | 0.05 | | $ | 0.06 | | $ | (0.14) | | $ | 0.16 |
| | | | | | | | | | | | | | | |
WEIGHTED AVERAGE SHARES OUTSTANDING | |
| | |
| | |
| | |
| | |
| |
Basic | |
| 215,000 | |
| 221,659 | |
| 220,575 | |
| 214,125 | |
| 218,959 |
Diluted | |
| 215,000 | |
| 221,659 | |
| 220,575 | |
| 214,125 | |
| 218,959 |
Page 7
Third Quarter 2026 Earnings Release
RPC INCORPORATED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
| | (In thousands) | ||||
| | September 30, | | December 31, | ||
| | 2026 | | 2025 | ||
| | | (Unaudited) | | | |
ASSETS |
| | | | | |
Cash and cash equivalents | | $ | 177,110 | | $ | 209,974 |
Accounts receivable, net | |
| 387,094 | |
| 327,668 |
Inventories | |
| 140,502 | |
| 119,004 |
Income taxes receivable | |
| 572 | |
| 6,302 |
Prepaid expenses | |
| 12,652 | |
| 18,307 |
Other current assets | |
| 23,231 | |
| 23,215 |
Total current assets | |
| 741,161 | |
| 704,470 |
Property, plant and equipment, net | |
| 473,607 | |
| 531,556 |
Operating lease right-of-use assets | |
| 19,259 | |
| 24,094 |
Finance lease right-of-use assets | |
| 1,493 | |
| 1,934 |
Goodwill | |
| 81,249 | |
| 83,422 |
Other intangibles, net | |
| 61,011 | |
| 97,499 |
Other assets | |
| 14,225 | |
| 25,410 |
Total assets | | $ | 1,392,005 | | $ | 1,468,385 |
| | | | | | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |
| | |
| |
LIABILITIES | | | | | | |
Accounts payable | | $ | 135,972 | | $ | 119,757 |
Accrued payroll and related expenses | |
| 34,987 | |
| 38,636 |
Accrued insurance expenses | |
| 8,269 | |
| 7,194 |
Accrued state, local and other taxes | |
| 7,062 | |
| 3,543 |
Income taxes payable | |
| 2,517 | |
| 787 |
Unearned revenue | | | — | | | 13,233 |
Current portion of operating lease liabilities | |
| 5,685 | |
| 7,606 |
Current portion of finance lease liabilities | | | 917 | | | 977 |
Current portion of notes payable | | | 10,000 | | | 20,000 |
Accrued expenses and other liabilities | |
| 5,414 | |
| 5,419 |
Total current liabilities | |
| 210,823 | |
| 217,152 |
Accrued insurance expenses | |
| 17,866 | |
| 15,570 |
Notes payable | | | 20,000 | | | 30,000 |
Operating lease liabilities | |
| 14,495 | |
| 17,762 |
Finance lease liabilities | |
| 645 | |
| 1,041 |
Other long-term liabilities | |
| 5,367 | |
| 10,814 |
Deferred income taxes | |
| 55,870 | |
| 76,875 |
Total liabilities | |
| 325,066 | |
| 369,214 |
| | | | | | |
STOCKHOLDERS' EQUITY | | | | | | |
Common stock | |
| 22,157 | |
| 22,057 |
Capital in excess of par value | |
| — | |
| — |
Retained earnings | |
| 1,047,606 | |
| 1,079,664 |
Accumulated other comprehensive loss | |
| (2,824) | |
| (2,550) |
Total stockholders' equity | |
| 1,066,939 | |
| 1,099,171 |
Total liabilities and stockholders' equity | | $ | 1,392,005 | | $ | 1,468,385 |
Page 8
Third Quarter 2026 Earnings Release
RPC INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
| | | | | | |
| | (In thousands) | ||||
Nine months ended September 30, | | 2026 | | 2025 | ||
| | | (Unaudited) | | | (Unaudited) |
OPERATING ACTIVITIES | | | | | | |
Net (loss) income | | $ | (28,999) | | $ | 35,141 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: |
| | |
| | |
Depreciation and amortization |
| | 128,494 |
| | 122,068 |
Impairment charges | | | 74,464 | | | — |
Acquisition related employment costs |
| | 21,875 |
| | 13,021 |
Working capital | | | (67,963) | | | (43,696) |
Other operating activities |
| | (12,139) |
| | 12,934 |
Net cash provided by operating activities |
| | 115,732 |
| | 139,468 |
| | | | | | |
INVESTING ACTIVITIES |
| | |
| | |
Capital expenditures |
| | (110,727) |
| | (117,780) |
Proceeds from sale of assets |
| | 12,951 |
| | 15,931 |
Purchase of business, net of cash and debt assumed |
| | — |
| | (165,656) |
Net cash used for investing activities |
| | (97,776) |
| | (267,505) |
| | | | | | |
FINANCING ACTIVITIES |
| | |
| | |
Payment of dividends |
| | (26,594) |
| | (26,300) |
Repayment of debt |
| | (20,000) |
| | (4,502) |
Cash paid for common stock purchased and retired |
| | (3,454) |
| | (2,868) |
Cash paid for finance lease | | | (772) | | | (806) |
Net cash used for financing activities |
| | (50,820) |
| | (34,476) |
| | | | | | |
Net decrease in cash and cash equivalents |
| | (32,864) |
| | (162,513) |
Cash and cash equivalents at beginning of period |
| | 209,974 |
| | 325,975 |
Cash and cash equivalents at end of period | | $ | 177,110 | | $ | 163,462 |
Non-GAAP Measures
RPC, Inc. may use the non-GAAP financial measures of EBITDA, 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, without regard to impairment charges, acquisition related employment costs and changes in estimated useful lives for purchases of wireline cables, and in the case of Adjusted EBITDA and Adjusted EBITDA margin, 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.
Page 9
Third Quarter 2026 Earnings Release
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, | | September 30, | | September 30, |
| |||||
(In thousands) | | 2026 | | 2026 | | 2025 | | 2026 | | 2025 |
| |||||
Reconciliation of Operating (Loss) Income to Adjusted Operating Income | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Operating (loss) income | | $ | (53,773) | | $ | 14,771 | | $ | 20,800 | | $ | (36,382) | | $ | 48,722 | |
Wireline cable expenses | | | — | | | — | | | (2,040) | (1) | | — | | | (4,818) | (1) |
Acquisition related employment costs | |
| 7,292 | |
| 7,291 | |
| 6,467 | |
| 21,875 | |
| 13,021 | |
Impairment charges | | | 74,464 | | | — | | | — | | | 74,464 | | | — | |
Adjusted operating income | | $ | 27,983 | | $ | 22,062 | | $ | 25,227 | | $ | 59,957 | | $ | 56,925 | |
(1) Beginning in the fourth quarter of 2025, wireline cables, previously capitalized and depreciated over 18 months, began being expensed due to a change in their estimated useful lives.
Appendix B
(Unaudited) | | Three months ended | | Nine months ended |
| |||||||||||
| | September 30, | | June 30, | | September 30, | | September 30, | | September 30, | | |||||
(In thousands) | | 2026 | | 2026 | | 2025 | | 2026 | | 2025 |
| |||||
Reconciliation of Net (Loss) Income to Adjusted Net Income |
| | |
| | |
| | |
| | |
| | | |
| | | | | | | | | | | | | | | | |
Net (loss) income | | $ | (41,929) | | $ | 12,075 | | $ | 12,963 | | $ | (28,999) | | $ | 35,141 | |
Adjustments: | | | | | | | | | | | | | | | | |
Wireline cable expenses, before taxes | | | — | | | — | | | (2,040) | (1) | | — | | | (4,818) | (1) |
Tax effect of wireline cable expenses | | | — | | | — | | | 479 | | | — | | | 1,132 | |
Acquisition related employment costs, before taxes | |
| 7,292 | |
| 7,291 | |
| 6,467 | |
| 21,875 | |
| 13,021 | |
Tax effect of Acquisition related employment costs | |
| 86 | |
| (1,565) | |
| (1,051) | |
| (2,530) | |
| (249) | |
Impairment charges | | | 74,464 | | | — | | | — | | | 74,464 | | | — | |
Tax effect of Impairment charges | | | (17,127) | | | — | | | — | | | (17,127) | | | — | |
Total adjustments, net of tax | |
| 64,715 | |
| 5,726 | |
| 3,855 | |
| 76,682 | |
| 9,086 | |
Adjusted net income | | $ | 22,786 | | $ | 17,801 | | $ | 16,818 | | $ | 47,683 | | $ | 44,227 | |
(1) Beginning in the fourth quarter of 2025, wireline cables, previously capitalized and depreciated over 18 months, began being expensed due to a change in their estimated useful lives.
Page 10
Third Quarter 2026 Earnings Release
(Unaudited) | | Three months ended | | Nine months ended | | |||||||||||
| | September 30, | | June 30, | | September 30, | | September 30, | | September 30, | | |||||
| | 2026 | | 2026 | | 2025 | | 2026 | | 2025 | | |||||
Reconciliation of Diluted (Loss) Earnings Per Share to Adjusted Diluted Earnings Per Share | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Diluted (loss) earnings per share | | $ | (0.20) | | $ | 0.05 | | $ | 0.06 | | $ | (0.14) | | $ | 0.16 | |
Adjustments: | |
| | |
| | |
| | |
| | |
| | |
Wireline cable expenses, before taxes | | | — | | | — | | | (0.01) | (1) | | — | | | (0.02) | (1) |
Tax effect of wireline cable expenses | | | — | | | — | | | — | | | — | | | 0.01 | |
Acquisition related employment costs, before taxes | | | 0.03 | | | 0.03 | | | 0.03 | | | 0.10 | | | 0.06 | |
Tax effect of Acquisition related employment costs | | | — | | | (0.01) | | | — | | | (0.01) | | | — | |
Impairment charges | | | 0.34 | | | — | | | — | | | 0.34 | | | — | |
Tax effect of Impairment charges | | | (0.08) | | | — | | | — | | | (0.08) | | | — | |
Rounding | | | 0.01 | | | 0.01 | | | — | | | 0.01 | | | (0.01) | |
Total adjustments, net of tax | | | 0.30 | |
| 0.03 | |
| 0.02 | |
| 0.36 | |
| 0.04 | |
Adjusted diluted earnings per share | | $ | 0.10 | | $ | 0.08 | | $ | 0.08 | | $ | 0.22 | | $ | 0.20 | |
| | | | | | | | | | | | | | | | |
Weighted average shares outstanding (in thousands) | |
| 221,628 | (2) |
| 221,659 | |
| 220,575 | |
| 221,540 | (2) |
| 218,959 | |
(1) Beginning in the fourth quarter of 2025, wireline cables, previously capitalized and depreciated over 18 months, began being expensed due to a change in their estimated useful lives.
(2) For purposes of calculating adjusted diluted earnings per share, participating securities have been included because adjusted net income was positive. These securities were excluded from GAAP diluted loss per share because their inclusion would have been antidilutive.
Page 11
Third Quarter 2026 Earnings Release
Appendix C
(Unaudited) | | Three months ended | | Nine months ended |
| |||||||||||
| | September 30, | | June 30, | | September 30, | | September 30, | | September 30, | | |||||
(In thousands) | | 2026 | | 2026 | | 2025 | | 2026 | | 2025 |
| |||||
Reconciliation of Net (Loss) Income to EBITDA and Adjusted EBITDA, and Net (Loss) Income Margin to Adjusted Net Income Margin and Adjusted EBITDA Margin |
| | |
| | |
| | |
| | |
| | | |
Net (loss) income | | $ | (41,929) | | $ | 12,075 | | $ | 12,963 | | $ | (28,999) | | $ | 35,141 | |
Adjustments: | | | | | | | | | | | | | | | | |
Income tax (benefit) provision | |
| (9,982) | |
| 4,500 | |
| 9,604 | |
| (2,028) | |
| 21,260 | |
Interest expense | |
| 533 | |
| 671 | |
| 949 | |
| 2,034 | |
| 2,087 | |
Depreciation and amortization | |
| 42,658 | |
| 42,982 | |
| 44,098 | |
| 128,494 | |
| 122,068 | |
Interest income | |
| (1,509) | |
| (1,546) | |
| (1,748) | |
| (4,825) | |
| (6,761) | |
EBITDA | | $ | (10,229) | | $ | 58,682 | | $ | 65,866 | | $ | 94,676 | | $ | 173,795 | |
| |
| | |
| | |
| | |
| | |
| | |
Wireline cable expenses | | | — | | | — | | | (4,531) | (2) | | — | | | (9,251) | (2) |
Impairment charges | | | 74,464 | | | — | | | — | | | 74,464 | | | — | |
Acquisition related employment costs | |
| 7,292 | |
| 7,291 | |
| 6,467 | |
| 21,875 | |
| 13,021 | |
Adjusted EBITDA | | $ | 71,527 | | $ | 65,973 | | $ | 67,802 | | $ | 191,015 | | $ | 177,565 | |
| | | | | | | | | | | | | | | | |
Revenues | | $ | 467,735 | | $ | 460,869 | | $ | 447,103 | | $ | 1,383,359 | | $ | 1,200,789 | |
| | | | | | | | | | | | | | | | |
Net (loss) income margin(1) | | | (9.0%) | | | 2.6% | | | 2.9% | | | (2.1%) | | | 2.9% | |
| | | | | | | | | | | | | | | | |
Adjusted net income margin(1) | | | 4.9% | | | 3.9% | | | 3.8% | | | 3.4% | | | 3.7% | |
| | | | | | | | | | | | | | | | |
Adjusted EBITDA margin(1) | | | 15.3% | | | 14.3% | | | 15.2% | | | 13.8% | | | 14.8% | |
(1) Net (loss) income margin is calculated as Net (loss) 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.
(2) Beginning in the fourth quarter of 2025, wireline cables, previously capitalized and depreciated over 18 months, began being expensed due to a change in their estimated useful lives.
Appendix D
(Unaudited) | | | Nine months ended September 30, | ||||
(In thousands) | | | 2026 | | 2025 | ||
Reconciliation of Cash Provided by Operating Activities to Free Cash Flow |
|
| | |
| | |
Net cash provided by operating activities | | | $ | 115,732 | | $ | 139,468 |
Capital expenditures | | | | (110,727) | | | (117,780) |
Free cash flow | | | $ | 5,005 | | $ | 21,688 |