eastunder
12 years ago
RPC, Inc. Reports Second Quarter 2012 Financial Results
ATLANTA, July 25, 2012 /PRNewswire/ -- RPC, Inc. (RES) today announced its unaudited results for the second quarter ended June 30, 2012. RPC provides a broad range of specialized oilfield services and equipment to independent and major oilfield companies engaged in the exploration, production and development of oil and gas properties throughout the United States and in selected international markets.
For the quarter ended June 30, 2012, revenues increased 12.9 percent to $500,106,000 compared to $443,029,000 in the second quarter last year. Revenues increased compared to the prior year due primarily to a larger fleet of revenue-producing equipment. Operating profit for the quarter was $119,858,000 compared to $119,267,000 in the prior year. Net income for the quarter was $72,260,000 or $0.33 diluted earnings per share, compared to $73,165,000 or $0.33 diluted earnings per share last year. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 5.3 percent to $172,928,000 compared to $164,150,000 in the prior year.(1)
Cost of revenues was $281,279,000, or 56.2 percent of revenues, during the second quarter of 2012, compared to $242,991,000, or 54.8 percent of revenues, in the prior year. Cost of revenues increased due to the variable nature of these expenses. Cost of revenues as a percentage of revenues increased during the quarter due to an increasingly competitive pricing environment and inefficiencies associated with equipment relocation. These increases were partially offset by favorable variances in the costs of materials and supplies used in providing our services due to changes in job mix.
Selling, general and administrative expenses were $43,115,000 in the second quarter of 2012, a 19.9 percent increase compared to $35,956,000 in the prior year. This increase was primarily due to increases in total employment costs due to higher headcount. As a percentage of revenues, these costs increased slightly to 8.6 percent in 2012 compared to 8.1 percent last year. Depreciation and amortization increased by 20.2 percent to $53,950,000 during the quarter compared to $44,893,000 last year due to assets that have been placed in service during the previous 12 months.
Interest expense decreased from $998,000 last year to $650,000 in 2012 due to lower interest rates, partially offset by a higher average balance under RPC's syndicated revolving credit facility during the quarter as compared to the prior year.
For the six months ended June 30, 2012, revenues increased 21.6 percent to $1,002,663,000 compared to $824,790,000 last year. Net income was $153,015,000 or $0.71 earnings per diluted share, compared to $138,689,000 or $0.63 earnings per diluted share last year.
"During the second quarter of 2012, RPC continued its strong operational execution in an increasingly difficult operating environment," stated Richard A. Hubbell, RPC's President and Chief Executive Officer. "We relocated equipment from dry gas basins to several geographic markets where fundamentals are stronger. Also, we prepared our final fleet of pressure pumping equipment that we ordered to work in the third quarter. The average U.S. domestic rig count during the second quarter was 1,970, a 7.4 percent increase compared to the same period in 2011 but a 1.0 percent decrease compared to the first quarter of this year. The average price of natural gas was $2.29 per Mcf, a 47.4 percent decrease compared to the prior year, and a 4.9 percent decrease compared to the first quarter. The average price of oil was $92.92 per barrel, an 8.8 percent decrease compared to the prior year, and a 9.8 percent decrease compared to the first quarter of 2012. We note that the amount of U.S. domestic drilling activity targeted to oil production continues to increase, and represented 69.7 percent of U.S. domestic drilling activity during the second quarter of 2012. RPC's revenues increased at a greater rate than the domestic rig count due to additions to our coiled tubing and pressure pumping fleets, as well as more equipment and higher activity levels in our downhole tools service line. These improvements were partially offset by pricing decreases in most of our service lines across all of our geographic markets. The decline in natural gas drilling activity, coupled with a growing industry fleet of oilfield service equipment has resulted in downward pricing pressure to varying degrees in all of our markets. Also during the second quarter, the results of our downhole tools service line in Canada were impacted by a spring break up that was longer than average, and our operations in the Rocky Mountains and North Dakota were impacted by road conditions which did not allow us to move our equipment efficiently.
"The competitive pricing environment and our relocation of several equipment fleets during the quarter created labor inefficiencies which contributed to our operating margin decline compared to the prior year. However, our focus over the last two years on the procurement of key raw materials used in providing our services benefited our financial results during the quarter.
"At the end of the second quarter, the balance on our syndicated credit facility was $162.0 million, a decline of $18.8 million compared to the end of the first quarter. Our capital expenditures of $82.8 million were lower than the first quarter, and reflect the decision we made in early to mid-2011 to curtail our growth capital expenditures. Our debt to total capitalization ratio at the end of the quarter was 15.9 percent, the lowest it has been during the time that we have utilized a syndicated credit facility," concluded Hubbell.
Summary of Segment Operating Performance
RPC's business segments are Technical Services and Support Services.
Technical Services includes RPC's oilfield service lines that utilize people and equipment to perform value-added completion, production and maintenance services directly to a customer's well. These services are generally directed toward improving the flow of oil and natural gas from producing formations or to address well control issues. The Technical Services segment includes pressure pumping, coiled tubing, hydraulic workover services, nitrogen, downhole tools, surface pressure control equipment, well control, and fishing tool operations.
Support Services includes RPC's oilfield service lines that provide equipment for customer use or services to assist customer operations. The equipment and services offered include rental of drill pipe and related tools, pipe handling, inspection and storage services and oilfield training services.
Technical Services revenues increased 13.5 percent for the quarter compared to the prior year due primarily to an increase in the fleet of revenue-producing equipment, partially offset by lower pricing for our services within this segment. Support Services revenues increased by 6.0 percent during the quarter compared to the prior year due principally to higher activity levels in most of the service lines within this segment, except for the rental tools service line. Operating profit in Technical Services improved primarily due to higher revenues, partially offset by lower pricing and employee utilization inefficiencies within this segment. Operating Profit in Support Services declined due to lower pricing and utilization in our rental tools service line, the largest service line within this segment.
Continued at:
http://finance.yahoo.com/news/rpc-inc-reports-second-quarter-111500843.html
eastunder
12 years ago
RES 2Q earnings: 7-25-12 BMO
RPC, Inc. Announces Date for Second Quarter 2012 Financial Results and Conference Call
Tuesday , July 10, 2012 17:00ET
ATLANTA, July 10, 2012 /PRNewswire/ -- RPC, Inc. (NYSE: RES) announced today that it will release its financial results for the second quarter ended June 30, 2012 on Wednesday, July 25, 2012 before the market opens. In conjunction with its earnings release, the Company will host a conference call to review the Company's financial and operating results on Wednesday, July 25, 2012 at 9:00 a.m. Eastern Time.
Individuals wishing to participate in the conference call should dial (888) 378-4350 or (719) 325-2204 for international callers, and use conference ID# 2143829. For interested individuals unable to join by telephone, the call also will be broadcast and archived for 90 days on the Company's investor Web site at www.rpc.net. Interested parties are encouraged to click on the webcast link 10-15 minutes prior to the start of the conference call.
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 Mexico, mid-continent, southwest, Appalachian and Rocky Mountain regions, and in selected international markets. RPC's investor Web site can be found on the Internet at www.rpc.net.
eastunder
12 years ago
RPC, Inc. Reports First Quarter 2012 Financial Results
- Revenues Increased by 31.6 Percent Compared to the First Quarter of 2011
- Net Income Increased by 23.2 Percent Compared to the First Quarter of 2011
- Diluted EPS Increased to $0.37, Compared to $0.30 in the First Quarter 2011
Press Release: RPC, Inc. –
ATLANTA, April 25, 2012 /PRNewswire/ -- RPC, Inc. (RES) today announced its unaudited results for the first quarter ended March 31, 2012. 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, and in selected international markets.
For the quarter ended March 31, 2012, revenues increased 31.6 percent to $502,557,000 compared to $381,761,000 in the first quarter last year. Revenues increased compared to the prior year due to a larger fleet of revenue-producing equipment, higher activity levels, and a favorable job mix in several service lines. Operating profit for the quarter was $130,857,000 compared to operating profit of $106,326,000 in the prior year. Net income was $80,755,000 or $0.37 diluted earnings per share, compared to net income of $65,524,000 or $0.30 diluted earnings per share last year. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 25.4 percent to $183,347,000 compared to $146,197,000 in the prior year. [1]
Cost of revenues was $273,799,000, or 54.5 percent of revenues, during the first quarter of 2012, compared to $201,252,000, or 52.7 percent of revenues, in the prior year. Cost of revenues increased due to the variable nature of these expenses. Cost of revenues also increased as a percentage of revenues due to higher employment and fuel costs compared to the prior year, as well as the negative impact of lower pricing for many of our services as compared to the prior year.
Selling, general and administrative expenses were $44,927,000 in the first quarter of 2012, a 24.6 percent increase compared to $36,057,000 in the prior year. This increase was primarily due to increases in headcount to support higher business activity levels. As a percentage of revenues, however, these costs decreased to 8.9 percent in 2012 compared to 9.4 percent last year due to the fixed nature of many of these expenses and our ability to leverage these costs over higher revenues. Depreciation and amortization increased to $51,570,000 during the quarter compared to $39,537,000 last year, due to the capital expenditures made during the last year.
Interest expense decreased from $1,079,000 last year to $596,000 in 2012 due to lower interest rates during the quarter under RPC's syndicated revolving credit facility as compared to the prior year, partially offset by a higher average balance on the facility.
"During the first quarter of 2012, RPC benefited from a larger fleet of revenue-producing equipment and high activity levels in the oil-directed domestic basins in which we operate," stated Richard A. Hubbell, RPC's President and Chief Executive Officer. "We placed equipment in service which we ordered during 2011, and continued to improve our management of the logistical issues and procurement of many of the raw materials used in providing our services. These factors combined to allow us to generate both sequential and year-over year improvements in revenues and net income. From an industry perspective, the average domestic rig count during the first quarter was 1,990, a 16.0 percent increase compared to the same period in 2011 but a 1.0 percent decrease compared to the fourth quarter of 2011. The average price of natural gas was $2.41 per Mcf, a 41.9 percent decrease compared to the prior year, and a 25.4 percent decrease compared to the fourth quarter of 2011. In contrast to the price of natural gas, the average price of oil rose during the quarter. The average price of oil during the quarter was $102.99 per barrel, a 9.6 percent increase compared to the prior year, and an 8.9 percent increase compared to the fourth quarter of 2011. The unconventional rig count, which is a more important indicator of the demand for RPC's services, increased by 15.4 percent compared to the prior year, and during the first quarter of 2012 represented 69.8 percent of U.S. domestic drilling activity.
"While we are pleased with our first quarter results, the decline in natural gas drilling activity and natural gas prices continues to impact RPC's overall activity levels and pricing for many of our services. While the overall rig count remains high, activity levels in many of the natural gas-directed shale plays are declining. Our response to this trend includes redeploying equipment and personnel from these areas of lower activity to basins that are more oil-directed. While RPC has operational facilities in most of these areas, and believes we will be able to accomplish this transition smoothly, there is the risk of some operational disruption. We remain concerned about competitive pressures which are likely to continue in the near term, given low natural gas prices.
"During the first quarter of 2012 we invested over $121 million in new equipment and capitalized improvements. Most of these capital expenditures funded purchases of revenue-producing equipment ordered in 2011. In addition, we purchased approximately 2.6 million shares of common stock and made the largest dividend payment in our history. In spite of these uses of cash, the balance on our syndicated credit facility has declined since the end of 2011, and I am pleased to report that we have a ratio of debt to total capitalization of only 18 percent.
"We remain cautious about near-term domestic drilling activity levels due to natural gas prices which are at a 10-year low. We will continue our allocation of resources to domestic basins which show the highest potential in an environment of continued high oil prices. In addition, we will monitor discretionary spending and scrutinize capital expenditures as we manage our company to achieve long-term shareholder value," concluded Hubbell.
Summary of Segment Operating Performance
RPC's business segments are Technical Services and Support Services.
Technical Services includes RPC's oilfield service lines that utilize people and equipment to perform value-added completion, production and maintenance services directly to a customer's well. These services are generally directed toward improving the flow of oil and natural gas from producing formations or to address well control issues. The Technical Services segment includes pressure pumping, coiled tubing, hydraulic workover services, nitrogen, downhole tools, surface pressure control equipment, well control, and fishing tool operations.
Support Services includes RPC's oilfield service lines that provide equipment for customer use or services to assist customer operations. The equipment and services offered include rental of drill pipe and related tools, pipe handling, inspection and storage services and oilfield training services.
Technical Services revenues increased 32.1 percent for the quarter compared to the prior year primarily due to an increase in the fleet of revenue-producing equipment and high activity levels. Support Services revenues increased by 26.8 percent during the quarter compared to the prior year due principally to improved utilization and a favorable job mix in the rental tool service line, which is the largest service line within this segment. Operating profit in both Technical and Support Services improved due to higher revenues.
Financials continued at:
http://finance.yahoo.com/news/rpc-inc-reports-first-quarter-111500300.html
eastunder
12 years ago
RES 1Q earnings 4-25-12 BMO
RPC, Inc. Announces Date for First Quarter 2012 Financial Results and Conference Call
ATLANTA, April 10, 2012 /PRNewswire/ -- RPC, Inc. (NYSE: RES) announced today that it will release its financial results for the first quarter ended March 31, 2012 on Wednesday, April 25, 2012 before the market opens. In conjunction with its earnings release, the Company will host a conference call to review the Company's financial and operating results on Wednesday, April 25, 2012 at 9:00 a.m. Eastern Time.
Individuals wishing to participate in the conference call should dial (877) 440-5787 or (719) 325-2484 for international callers, and use conference ID# 7451001. For interested individuals unable to join by telephone, the call also will be broadcast and archived for 90 days on the Company's investor Web site at www.rpc.net. Interested parties are encouraged to click on the webcast link 10-15 minutes prior to the start of the conference call.
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 Mexico, mid-continent, southwest, Appalachian and Rocky Mountain regions, and in selected international markets. RPC's investor Web site can be found on the Internet at www.rpc.net.
eastunder
12 years ago
RPC, MOCON Have Limited Downside
http://seekingalpha.com/article/466911-rpc-mocon-have-limited-downside?source=yahoo
March 29, 2012 The run up in stock prices over the past few months has reduced the number of stocks available at prices with limited downside risk. Two companies that currently fit this criterion are RPC Inc. (RES) and MOCON (MOCO). RPC inc. is a holding company for several oilfield services companies. MOCON manufactures and provides services in the test, measurement and analytical instrumentation market.
RPC Inc.
RPC Inc., headquartered in Atlanta, Georgia, provides oilfield services and equipment to oil and gas companies engaged in the exploration, production and development of oil and gas properties. The company has been aggregated into two reportable business segments - Technical Services and Support Services. Technical Services segment performs value-added completion, production and maintenance services directly to a customer's well. Support Services that primarily provide equipment for customer use or services to assist customer operations. RPC has historically operated in several countries outside of the United States, although international revenues have never accounted for more than 10 percent of total revenues.
Unconventional drilling activity, which requires more of RPC's services, has grown steadily over the past several years and was 70 percent of total wells drilled during 2011. This in conjunction with an increase in U.S. domestic oilfield activity largely accounts for the increase in revenues from $1,096m in 2010 to $1,809m in 2011. The company estimates that 45 percent of 2011 revenues were related to drilling and production activities for oil, and 55 percent were related to drilling and production activities for natural gas. In the Technical Services segment, pressure pumping services accounted for approximately 55 percent of 2011 revenues. In the Support Services Rental tools accounted for approximately six percent of 2011 revenues. In 2011, only one customer, Chesapeake Energy Corporation at approximately 12 percent of revenues, accounted for more than 10 percent of the company's revenues.
The growth in revenues has resulted in a doubling of net operating profit after taxes from 2010 to 2011. Free cash flow has been negative, and increasingly so for both years. This however is offset by an increase in return on invested capital from ~ 24% in 2010 to ~ 38% in 2011. In order to achieve higher growth rates the company is in effect reinvesting its cash flow and then some. As long as the return on new invested capital is greater than its weighted average cost of capital (~9%), this strategy will result in greater value over the long run. In 2011 negative cash flow was largely driven by increase in equipment purchases. The company believes that this equipment will produce high financial returns in the future.
Since a large percentage of U.S. drilling is directed towards natural gas, the low price of natural gas has negative implications for the company's activities in the near term. This has however been offset by the rising price of oil and increased activity in U.S. domestic shale resources, which produce oil and petroleum liquids. The Company expects consolidated revenues to increase and financial performance to improve in 2012 compared to 2011.
Assuming that return on invested capital (~ $1.2b) will come in at about 30% for 2012 and no change in the weighted average cost of capital (WACC), a worst case valuation for this stock puts its value at around $7. This assumes that in subsequent years, return on invested capital will just match the weighted average cost of capital and thus no value is created. Based on past performance, this is an extremely unlikely scenario. A very conservative valuation that projects the spread between return on invested capital and WACC at 5% and the company continuing to grow its net operating profit after taxes at a rate of 1% from a base value of ~ $350m (beyond 2012) gives the stock a value of ~$9.
The company has returned value to shareholders in the form of regular dividends over the last five years including 2009. A significant portion of the stock's value depends on the management's ability to reinvest capital at a rate of return exceeding its cost. From the most recent 10-K:
RPC's executive officers, directors and their affiliates hold directly or through indirect beneficial ownership, in the aggregate, approximately 71 percent of RPC's outstanding shares of common stock.
Management thus has a strong incentive to create value for its public stockholders.
(Continue - via link - for info on the other company.)
eastunder
12 years ago
1-25-12
RPC, Inc. Announces Stock Split and Increase in Regular Quarterly Cash Dividend
Press Release: RPC, Inc. – Wed, Jan 25, 2012 7:15 AM EST.. .
ATLANTA, Jan. 25, 2012 /PRNewswire/ -- RPC, Inc. (NYSE: RES - News) announced today that its Board of Directors has approved a three-for-two split of the Company's outstanding common shares. The split will be effected by issuing one additional share of common stock for every two shares of common stock held. The additional share of common stock will be distributed on March 9, 2012 to holders of record at the close of business on February 10, 2012. No fractional shares will be issued. Fractional share amounts resulting from the split will be paid to stockholders in cash.
RPC also announced that its Board of Directors declared a 20.0 percent increase in the regular quarterly cash dividend from $0.10 per share to $0.12 per share payable March 9, 2012 to common stockholders of record at the close of business on February 10, 2012. The dividend will be paid on pre-split shares.
"Our Board approved a three-for-two split at its regular quarterly meeting, the sixth in our history," stated Hubbell. "Also, our Board voted to increase our dividend by 20 percent, from $0.10 to $0.12 per share. This dividend will be paid on pre-split shares. These decisions are responses to a record 2011, a strong balance sheet, and our long-term confidence in our business," concluded Hubbell.
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 Mexico, mid-continent, southwest, Appalachian and Rocky Mountain regions, and in selected international markets. RPC's investor Web site can be found at www.rpc.net.
For information about RPC, Inc. or this event, please contact:
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