PR Newswire
ATLANTA, Jan. 25, 2024
ATLANTA, Jan. 25, 2024 /PRNewswire/ -- RPC, Inc. (NYSE: RES) ("RPC" or "the Company"), a leading diversified oilfield services company, announced its unaudited results for the fourth quarter and full year ended December 31, 2023.
* Non-GAAP and adjusted measures, including 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 comparable GAAP measures in the appendices of this earnings release.
* Sequential comparisons are versus 3Q:23. 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.
Fourth Quarter 2023 Highlights
Full Year 2023 Highlights
Management Commentary
"We closed out 2023 with a strong sequential improvement in fourth quarter financial results," stated Ben M. Palmer, RPC's President and Chief Executive Officer. "As anticipated, the fourth quarter began with a solid increase in pressure pumping activity. However, as oil prices fell toward the end of the year, customer demand followed suit and we experienced a more significant holiday season slowdown than originally expected. Looking forward, we have a new Tier 4 dual-fuel fleet on order and anticipate placing it in service by the end of the second quarter of 2024, replacing a Tier 2 diesel fleet as we upgrade our asset base without adding to pressure pumping industry capacity.
"We have over $220 million in cash on the balance sheet, are highly liquid, debt-free, and capable of navigating an uncertain environment. This solid financial position also supports targeted organic investments, as well as continued capital returns to our shareholders through both dividends and opportunistic share buybacks. With the Spinnaker integration essentially complete, we are actively assessing additional acquisition opportunities to bolster selected service lines, increase our scale, and enhance our growth outlook," concluded Palmer.
Selected Industry Data (Source: Baker Hughes, Inc., U.S. Energy Information Administration) | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
| | 4Q:23 | | 3Q:23 | | Change | | % Change | | 4Q:22 | | Change | | % Change | | |||||
U.S. rig count (avg) | | | 622 | | | 649 | | | (27) | | (4.2) | % | | 776 | | | (154) | | (19.8) | % |
Oil price ($/barrel) | | $ | 78.52 | | $ | 82.17 | | $ | (3.65) | | (4.4) | % | $ | 82.67 | | $ | (4.15) | | (5.0) | % |
Natural gas ($/Mcf) | | $ | 2.74 | | $ | 2.59 | | $ | 0.15 | | 5.8 | % | $ | 5.55 | | $ | (2.81) | | (50.6) | % |
4Q:23 Consolidated Financial Results (Sequential Comparisons versus 3Q:23)
Revenues were $394.5 million, up 19%. Revenues increased primarily due to a significant rebound in pressure pumping activity compared to 3Q:23. However, growth was constrained by lower-than-expected activity during the December holiday season, which may have been influenced by declining oil prices throughout the quarter.
Cost of revenues, which excludes depreciation and amortization, was $279.4 million, up from $239.1 million. These costs increased as a function of revenue growth during the quarter.
Selling, general and administrative expenses were $38.1 million, down from $42.0 million. The decrease in expenses is due in part to a reduction in incentive compensation and other cost control measures.
Gain on disposition of assets was $1.6 million, reflecting asset sales through the Company's normal course of operations.
Interest income totaled $2.6 million, reflecting higher cash balances.
Income tax provision was $12.3 million, or 23.4% of income before income taxes.
Net income and diluted EPS were $40.3 million and $0.19, respectively, up from $18.3 million and $0.08, respectively, in 3Q:23. Net income margin increased 470 basis points sequentially to 10.2%.
Adjusted EBITDA (adjusted earnings before interest, taxes, depreciation, and amortization) was $79.5 million, up from $51.9 million; adjusted EBITDA margin increased 440 basis points sequentially to 20.1%.
Non-GAAP adjustments: there were no adjustments to GAAP performance measures in 4Q:23, other than those necessary to calculate EBITDA. However, in the first and second quarters of 2023, the Company reported pension settlement charges totaling $18.3 million, or $0.07 of diluted EPS, which were excluded when calculating adjusted financial measures (see Appendices A, B and C).
Balance Sheet, Cash Flow and Capital Allocation
Cash and cash equivalents were $223.3 million at the end of 2023, with no outstanding borrowings under the Company's $100 million revolving credit facility.
Net cash provided by operating activities and free cash flow were $394.8 million and $213.8 million, respectively, for the full year 2023.
Payment of dividends totaled $34.6 million in 2023. The Board of Directors declared a regular quarterly cash dividend of $0.04 per share, payable March 11, 2024, to common stockholders of record at the close of business on February 9, 2024.
Share repurchases totaled $21.1 million in 2023. Buybacks under the Company's share repurchase program totaled $8.6 million during 4Q:23 (1,200,000 shares) and $18.7 million (2,469,056 shares) for the full year.
Segment Operations: Sequential Comparisons (versus 3Q:23)
Technical Services performs value-added completion, production and maintenance services directly to a customer's well. These services include pressure pumping, downhole tools and services, coiled tubing, cementing, and other offerings.
Support Services provides equipment for customer use or services to assist customer operations, including rental of tubulars and related tools, pipe inspection and storage services, and oilfield training services.
| | | | | | | | | | | | | | | |
| | Three Months Ended | | Year Ended | |||||||||||
| | December 31, | | September 30, | | December 31, | | December 31, | |||||||
(In thousands) | | 2023 | | 2023 | | 2022 | | 2023 | | 2022 | |||||
| | (Unaudited) | | (Unaudited) | | (Unaudited) | | (Unaudited) | | | | ||||
Revenues: | | | | | | | | | | | | | | | |
Technical Services | | $ | 371,059 | | $ | 303,069 | | $ | 458,135 Werbung Mehr Nachrichten zur RPC Aktie kostenlos abonnieren
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