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RPC (RES) Q4 Earnings Top Estimates on Pressure Pumping
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RPC Inc. (RES - Free Report) reported fourth-quarter adjusted earnings of 19 cents per share, which beat the Zacks Consensus Estimate of 12 cents. However, the bottom line declined from the year-ago quarter’s level of 41 cents.
Total quarterly revenues were $395 million, down from the year-ago quarter’s level of $482 million. The top line, however, beat the Zacks Consensus Estimate of $361 million.
The better-than-expected fourth-quarter results can be attributed to the significantly higher utilization of the pressure pumping fleet. However, a drop in oil price followed by a decline in customer demands offset the positives to some extent.
Operating profit in the Technical Services segment totaled $46.4 million, lower than the year-ago quarter’s level of $110.5 million. Higher contributions from pressure pumping activities partially offset the upside.
Operating profit in the Support Services segment amounted to $5 million, lower than the year-ago quarter’s level of $6.7 million. The decline was attributed to a decrease in the activity level of rental tools and the high fixed costs involved in these service lines.
Total operating profit in the quarter was $49.2 million, down from $112.3 million reported in the year-ago quarter. The average domestic rig count was 622, marking a 19.8% decline from the year-ago quarter’s level. The average oil price in the quarter was $78.52 per barrel, down 5% year over year. The average price of natural gas was $2.74 per thousand cubic feet, down 50.6% from that recorded in the corresponding period of 2022.
Costs and Expenses
In the fourth quarter of 2023, the cost of revenues decreased to $279.4 million from $308.6 million in the prior-year period. Selling, general and administrative expenses amounted to $38.1 million, slightly lower than the year-ago quarter’s figure of $38.2 million.
Financials
RPC’s total capital expenditure for 2023 was $181 million.
As of Dec 31, RPC had cash and cash equivalents of $223.3 million. The company managed to maintain a debt-free balance sheet.
Oceaneering International is a market leading supplier of offshore equipment and technology solutions to the energy industry. The company has projected an increase in free cash flows for 2024. The bright outlook is supported by the growing market demand for its mobile robotic forklifts and underride vehicles.
Repsol is a global multi-energy company, involved in exploration and production activities as well as refining and marketing petroleum products. The company is also actively involved in transitioning toward cleaner and more sustainable energy solutions. Recently, it announced the expansion of its network of renewable fuel refilling stations in Europe, demonstrating its commitment toward a sustainable energy model.
Harbour Energy is a leading independent oil and gas company, primarily involved in upstream operations. Upon completion of the recently announced acquisition of Wintershall Dea asset portfolio, its estimated production will increase to 500,000 barrels of oil equivalent per day. The company has also done well in reducing its debt in the past year.
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RPC (RES) Q4 Earnings Top Estimates on Pressure Pumping
RPC Inc. (RES - Free Report) reported fourth-quarter adjusted earnings of 19 cents per share, which beat the Zacks Consensus Estimate of 12 cents. However, the bottom line declined from the year-ago quarter’s level of 41 cents.
Total quarterly revenues were $395 million, down from the year-ago quarter’s level of $482 million. The top line, however, beat the Zacks Consensus Estimate of $361 million.
The better-than-expected fourth-quarter results can be attributed to the significantly higher utilization of the pressure pumping fleet. However, a drop in oil price followed by a decline in customer demands offset the positives to some extent.
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 $46.4 million, lower than the year-ago quarter’s level of $110.5 million. Higher contributions from pressure pumping activities partially offset the upside.
Operating profit in the Support Services segment amounted to $5 million, lower than the year-ago quarter’s level of $6.7 million. The decline was attributed to a decrease in the activity level of rental tools and the high fixed costs involved in these service lines.
Total operating profit in the quarter was $49.2 million, down from $112.3 million reported in the year-ago quarter. The average domestic rig count was 622, marking a 19.8% decline from the year-ago quarter’s level. The average oil price in the quarter was $78.52 per barrel, down 5% year over year. The average price of natural gas was $2.74 per thousand cubic feet, down 50.6% from that recorded in the corresponding period of 2022.
Costs and Expenses
In the fourth quarter of 2023, the cost of revenues decreased to $279.4 million from $308.6 million in the prior-year period. Selling, general and administrative expenses amounted to $38.1 million, slightly lower than the year-ago quarter’s figure of $38.2 million.
Financials
RPC’s total capital expenditure for 2023 was $181 million.
As of Dec 31, RPC had cash and cash equivalents of $223.3 million. The company managed to maintain a debt-free balance sheet.
Zacks Rank & Stocks to Consider
RPC currently carries a Zack Rank #4 (Sell).
Some better-ranked players in the energy sector are Oceaneering International (OII - Free Report) , Repsol (REPYY - Free Report) and Harbour Energy (HBRIY - Free Report) . While both Oceaneering International and Repsol currently sport a Zacks Rank #1 (Strong Buy), Harbour Energy holds a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
Oceaneering International is a market leading supplier of offshore equipment and technology solutions to the energy industry. The company has projected an increase in free cash flows for 2024. The bright outlook is supported by the growing market demand for its mobile robotic forklifts and underride vehicles.
Repsol is a global multi-energy company, involved in exploration and production activities as well as refining and marketing petroleum products. The company is also actively involved in transitioning toward cleaner and more sustainable energy solutions. Recently, it announced the expansion of its network of renewable fuel refilling stations in Europe, demonstrating its commitment toward a sustainable energy model.
Harbour Energy is a leading independent oil and gas company, primarily involved in upstream operations. Upon completion of the recently announced acquisition of Wintershall Dea asset portfolio, its estimated production will increase to 500,000 barrels of oil equivalent per day. The company has also done well in reducing its debt in the past year.