RPC (RES) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenues were $364.2 million, down 4% sequentially and 12.4% year-over-year, mainly due to lower pressure pumping activity and competitive pricing, partially offset by the Spinnaker acquisition.

• Net income rose 18% sequentially to $32.4 million, with diluted EPS at $0.15; however, both were down year-over-year.

• Adjusted EBITDA increased 9% sequentially to $68.5 million, with margin up to 18.8%.

• Most service lines delivered growth and margin improvement, but pressure pumping remained challenged.

• Ended Q2 with $261.5 million in cash, no debt, and paid $8.6 million in dividends.

Financial highlights

• Revenues declined 4% sequentially to $364.2 million; net income was $32.4 million, up 18% sequentially but down year-over-year.

• Adjusted EBITDA was $68.5 million, up 9% sequentially, with margin at 18.8%.

• Free cash flow for the first half of 2024 was $56.7 million; operating cash flow was $184.5 million.

• Cash position at quarter end was $261.5 million; no debt under the $100 million revolving credit facility.

• Diluted EPS was $0.15; net income margin was 8.9%, up 160 basis points sequentially.

Outlook and guidance

• Q3 2024 is expected to be similar to Q2, with continued strength in non-pressure pumping lines and ongoing pressure in pressure pumping.

• Full-year 2024 CapEx guidance is $200–$250 million, focused on maintenance and selected growth.

• Management is optimistic about new downhole tools, coiled tubing, and specialized service opportunities.

• No plans to add incremental pressure pumping capacity due to industry oversupply; focus on fleet upgrades.

• International revenues are expected to remain less than 10% of consolidated revenues.