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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2023

Commission File No. 001-08726

RPC, INC.

(Exact name of registrant as specified in its charter)

Delaware

    

58-1550825

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification Number)

2801 Buford Highway, Suite 300, Atlanta, Georgia 30329

(Address of principal executive offices)

(Zip code)

Registrant’s telephone number, including area code -- (404) 321-2140

Securities Registered under Section 12(b) of the Act:

Title of each class:

    

Trading Symbol(s)

    

Name of each exchange on which registered:

Common stock, par value $0.10

RES

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No

Indicate by check mark whether the registrant has submitted electronically, if any, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

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.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

As of July 21, 2023, RPC, Inc. had 216,408,974 shares of common stock outstanding.

RPC, INC. AND SUBSIDIARIES

Table of Contents

    

Page No.

Part I. Financial Information

Item 1.

Financial Statements (Unaudited)

Consolidated Balance Sheets –As of June 30, 2023 and December 31, 2022

3

Consolidated Statements of Operations – For the three and six months ended June 30, 2023 and 2022

4

Consolidated Statements of Comprehensive Income – For the three and six months ended June 30, 2023 and 2022

5

Consolidated Statements of Stockholders’ Equity – For the three and six months ended June 30, 2023 and 2022

6

Consolidated Statements of Cash Flows – For the six months ended June 30, 2023 and 2022

7

Notes to Consolidated Financial Statements

8 – 18

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

19 – 27

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

27

Item 4.

Controls and Procedures

27

Part II. Other Information

Item 1.

Legal Proceedings

28

Item 1A.

Risk Factors

28

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

28

Item 3.

Defaults upon Senior Securities

29

Item 4.

Mine Safety Disclosures

29

Item 5.

Other Information

29

Item 6.

Exhibits

29

Signatures

30

2

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

RPC, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

AS OF JUNE 30, 2023 AND DECEMBER 31, 2022

(In thousands)

June 30, 

December 31, 

    

2023

    

2022

ASSETS

(Unaudited)

(Note 1)

Cash and cash equivalents

$

100,535

$

126,424

Accounts receivable, net of allowance for credit losses of $6,574 in 2023 and $7,078 in 2022

393,609

416,568

Inventories

 

104,194

 

97,107

Income taxes receivable

 

53,148

 

42,403

Prepaid expenses

 

14,427

 

17,753

Purchase of business - advance (Note 16)

78,982

Other current assets

 

3,440

 

3,086

Total current assets

 

748,335

 

703,341

Property, plant and equipment, less accumulated depreciation of $782,144 in 2023 and $775,334 in 2022

387,988

333,093

Operating lease right-of-use assets

27,331

28,864

Goodwill

 

32,150

 

32,150

Other assets

 

32,384

 

31,565

Total assets

$

1,228,188

$

1,129,013

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

  

 

  

LIABILITIES

 

  

 

  

Accounts payable

$

88,006

$

115,213

Accrued payroll and related expenses

 

26,099

 

33,161

Accrued insurance expenses

 

5,165

 

3,232

Accrued state, local and other taxes

 

6,417

 

4,296

Income taxes payable

 

404

 

499

Pension liabilities

9,610

Current portion of operating lease liabilities

9,201

10,728

Other accrued expenses

 

1,807

 

1,864

Total current liabilities

 

137,099

 

178,603

Long-term accrued insurance expenses

 

9,640

 

7,149

Long-term retirement plan liabilities

 

23,526

 

23,106

Deferred income taxes

 

47,028

 

37,473

Long-term operating lease liabilities

19,555

19,517

Other long-term liabilities

 

3,938

 

5,430

Total liabilities

 

240,786

 

271,278

Commitments and contingencies (Note 9)

 

 

STOCKHOLDERS’ EQUITY

 

  

 

  

Preferred stock, $0.10 par value, 1,000,000 shares authorized, none issued

 

 

Common stock, $0.10 par value, 349,000,000 shares authorized, 216,408,974 and 216,609,191 shares issued and outstanding in 2023 and 2022, respectively

 

21,641

 

21,661

Capital in excess of par value

 

 

Retained earnings

 

968,023

 

856,013

Accumulated other comprehensive loss

 

(2,262)

 

(19,939)

Total stockholders’ equity

 

987,402

 

857,735

Total liabilities and stockholders’ equity

$

1,228,188

$

1,129,013

The accompanying notes are an integral part of these consolidated financial statements.

3

RPC, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2023 AND 2022

(In thousands except per share data)

(Unaudited)

Three months ended

Six months ended

June 30, 

June 30, 

    

2023

    

2022

    

2023

    

2022

Revenues

$

415,858

$

375,507

$

892,526

$

660,131

Cost of revenues

 

265,786

 

260,917

 

571,036

 

469,754

 

Selling, general and administrative expenses

 

43,604

 

35,879

 

85,801

 

72,119

 

Pension settlement charges

911

18,286

Depreciation and amortization

 

26,203

 

20,094

 

50,328

 

39,560

 

Gain on disposition of assets, net

 

(3,015)

 

(1,798)

 

(5,951)

 

(4,752)

 

Operating income

 

82,369

 

60,415

 

173,026

 

83,450

 

Interest expense

 

(73)

 

(222)

 

(145)

 

(400)

 

Interest income

 

2,698

 

128

 

4,553

 

143

 

Other income, net

 

631

 

79

 

1,392

 

583

 

Income before income taxes

 

85,625

 

60,400

 

178,826

 

83,776

 

Income tax provision

 

20,612

 

13,461

 

42,289

 

21,758

 

Net income

$

65,013

$

46,939

$

136,537

$

62,018

Earnings per share

 

  

 

 

  

 

  

Basic

$

0.30

$

0.22

$

0.63

$

0.29

Diluted

$

0.30

$

0.22

$

0.63

$

0.29

The accompanying notes are an integral part of these consolidated financial statements.

4

RPC, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2023 AND 2022

(In thousands)

(Unaudited)

Three months ended

Six months ended

June 30, 

June 30, 

    

2023

    

2022

    

2023

    

2022

Net income

$

65,013

$

46,939

$

136,537

$

62,018

Other comprehensive income:

  

  

  

  

Pension adjustment and reclassification adjustment, net of taxes

 

576

 

195

 

17,254

 

390

 

Foreign currency translation

 

439

 

65

 

423

 

181

 

Comprehensive income

$

66,028

$

47,199

$

154,214

$

62,589

The accompanying notes are an integral part of these consolidated financial statements.

5

RPC, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2023 AND 2022

(In thousands)

(Unaudited)

Six months ended June 30, 2023

Accumulated

Capital in 

Other

Common Stock

Excess of

Retained

Comprehensive

    

Shares

    

Amount

    

Par Value

    

Earnings

    

Loss

    

Total

Balance, December 31, 2022

 

216,609

$

21,661

$

$

856,013

$

(19,939)

$

857,735

Stock issued for stock incentive plans, net

 

1,149

 

115

 

1,687

 

 

 

1,802

Stock purchased and retired

 

(1,388)

 

(139)

 

(1,687)

 

(9,523)

 

 

(11,349)

Net income

 

 

 

 

71,524

 

 

71,524

Dividends

 

 

 

 

(8,679)

 

 

(8,679)

Pension adjustment, net of taxes

 

 

 

 

 

16,678

 

16,678

Foreign currency translation

 

 

 

 

 

(16)

 

(16)

Balance, March 31, 2023

216,370

$

21,637

$

$

909,335

$

(3,277)

$

927,695

Stock issued for stock incentive plans, net

40

4

2,312

2,316

Stock purchased and retired

(1)

(2,312)

2,310

(2)

Net income

65,013

65,013

Dividends

(8,635)

(8,635)

Pension adjustment, net of taxes

576

576

Foreign currency translation

439

439

Balance, June 30, 2023

216,409

$

21,641

$

$

968,023

$

(2,262)

$

987,402

Six months ended June 30, 2022

Accumulated

Capital in 

Other

Common Stock

Excess of

Retained

Comprehensive

    

Shares

    

Amount

    

Par Value

    

Earnings

    

Loss

    

Total

Balance, December 31, 2021

 

215,629

$

21,563

$

$

640,936

$

(20,708)

$

641,791

Stock issued for stock incentive plans, net

 

1,037

 

104

 

1,393

 

 

 

1,497

Stock purchased and retired

 

(190)

 

(19)

 

(1,393)

 

502

 

 

(910)

Net income

 

 

 

15,079

 

 

15,079

Pension adjustment, net of taxes

 

 

 

 

 

195

 

195

Foreign currency translation

 

 

 

 

 

116

 

116

Balance, March 31, 2022

216,476

$

21,648

$

$

656,517

$

(20,397)

$

657,768

Stock issued for stock incentive plans, net

186

18

1,677

1,695

Stock purchased and retired

(1,677)

1,677

Net income

46,939

46,939

Pension adjustment, net of taxes

195

195

Foreign currency translation

65

65

Balance, June 30, 2022

 

216,662

$

21,666

$

$

705,133

$

(20,137)

$

706,662

The accompanying notes are an integral part of these consolidated financial statements.

6

RPC, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND 2022

(In thousands)

(Unaudited)

Six months ended June 30, 

    

2023

    

2022

OPERATING ACTIVITIES

  

  

Net income

$

136,537

$

62,018

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Depreciation, amortization and other non-cash charges

 

50,570

 

39,863

 

Stock-based compensation expense

 

4,118

 

3,192

 

Gain on disposition of assets, net

 

(5,951)

 

(4,752)

 

Deferred income tax provision

 

4,401

 

7,788

 

Pension settlement charges

 

18,286

 

-

 

(Increase) decrease in assets:

 

 

 

Accounts receivable

 

23,017

 

(98,745)

 

Income taxes receivable

 

(10,745)

 

13,027

 

Inventories

 

(7,001)

 

(11,172)

 

Prepaid expenses

 

3,327

 

1,054

 

Other current assets

 

(297)

 

540

 

Other non-current assets

 

(833)

 

5,290

 

Increase (decrease) in liabilities:

 

 

 

Accounts payable

 

(30,646)

 

23,824

 

Income taxes payable

 

(95)

 

(128)

 

Accrued payroll and related expenses

 

(7,075)

 

8,881

 

Accrued insurance expenses

 

1,933

 

(4,530)

 

Accrued state, local and other taxes

 

2,121

 

3,077

 

Other accrued expenses

 

(2,938)

 

(2,351)

 

Pension and retirement plans liabilities

 

(5,068)

 

(4,429)

 

Long-term accrued insurance expenses

 

2,491

 

(1,840)

 

Other long-term liabilities

 

1,406

 

2,246

 

Net cash provided by operating activities

 

177,558

 

42,853

 

INVESTING ACTIVITIES

 

  

 

  

 

Capital expenditures

 

(104,488)

 

(50,578)

 

Proceeds from sale of assets

 

8,688

 

7,148

 

Purchase of business - advance (Note 16)

 

(78,982)

 

 

Net cash used for investing activities

 

(174,782)

 

(43,430)

 

FINANCING ACTIVITIES

 

  

 

  

 

Payment of dividends

 

(17,314)

 

 

Cash paid for common stock purchased and retired

 

(11,351)

 

(910)

 

Cash paid for finance lease

(2,713)

Net cash used for financing activities

 

(28,665)

 

(3,623)

 

Net decrease in cash and cash equivalents

 

(25,889)

 

(4,200)

 

Cash and cash equivalents at beginning of period

 

126,424

 

82,433

 

Cash and cash equivalents at end of period

$

100,535

$

78,233

Supplemental cash flows disclosure:

Income tax payments, net

$

48,553

$

872

Interest paid

$

83

$

123

Supplemental disclosure of noncash investing activities:

Capital expenditures included in accounts payable

$

12,769

$

8,248

The accompanying notes are an integral part of these consolidated financial statements.

7

Table of Contents

RPC, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1.    GENERAL

The accompanying unaudited consolidated financial statements include the accounts of RPC, Inc. and its wholly-owned subsidiaries (RPC or the Company) and have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. These consolidated financial statements have been prepared in accordance with Accounting Standards Codification (ASC) Topic 810, “Consolidation” and Rule 3A-02(a) of Regulation S-X. In accordance with ASC Topic 810 and Rule 3A-02 (a) of Regulation S-X, the Company’s policy is to consolidate all subsidiaries and investees where it has voting control.

In the opinion of management, all adjustments (all of which consisted of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2023 are not necessarily indicative of the results to be expected for the year ending December 31, 2023.

The balance sheet at December 31, 2022 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2022.

A group that includes Gary W. Rollins, Pamela R. Rollins, Amy Rollins Kreisler and Timothy C. Rollins, each of whom is a director of the Company, and certain companies under their control, controls in excess of fifty percent of the Company’s voting power.

2. RECENT ACCOUNTING STANDARDS

Recently Adopted Accounting Standards:

ACCOUNTING STANDARDS UPDATE (ASU) No. 2021-08: Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers: The amendments in this ASU address diversity in practice related to the accounting for revenue contracts with customers acquired in a business combination, by adopting guidance requiring an acquirer to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. At the acquisition date, an acquirer would recognize and measure the acquired contract assets and contract liabilities in the same manner that they were recognized and measured in the acquiree's financial statements before the acquisition. The Company adopted these provisions in the second quarter of 2023 prospectively to future business combinations and the adoption did not have a material impact on its consolidated financial statements.

3.    REVENUES

Accounting Policy:

RPC’s contract revenues are generated principally from providing oilfield services. These services are based on mutually agreed upon pricing with the customer prior to the services being delivered and, given the nature of the services, do not include the right of return. Pricing for these services is a function of rates based on the nature of the specific job, with consideration for the extent of equipment, labor, and consumables needed for the job. RPC typically satisfies its performance obligations over time as the services are performed. RPC records revenues based on the transaction price agreed upon with its customers.

Sales tax charged to customers is presented on a net basis within the accompanying Consolidated Statements of Operations and therefore excluded from revenues.

Nature of services:

RPC provides a broad range of specialized oilfield services to independent and major oil and gas companies engaged in the exploration, production and development of oil and gas properties throughout the United States and in selected international

8

Table of Contents

RPC, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

markets. RPC manages its business as either (1) services offered on the well site with equipment and personnel (Technical Services) or (2) services and tools offered off the well site (Support Services). For more detailed information about operating segments, see Note 6.

RPC contracts with its customers to provide the following services by reportable segment:

Technical Services

Includes pressure pumping, downhole tools services, coiled tubing, nitrogen, snubbing and other oilfield related services including wireline, well control, fishing, pump down services and cementing.

Support Services

Rental tools – RPC rents tools to its customers for use with onshore and offshore oil and gas well drilling, completion and workover activities.
Other support services include oilfield pipe inspection services, pipe management and pipe storage, well control training and consulting.

Our contracts with customers are generally short-term in nature and generally consist of a single performance obligation – the provision of oilfield services.

Payment terms:

RPC’s contracts with customers state the final terms of the sales, including the description, quantity, and price of each service to be delivered. The Company’s contracts are generally short-term in nature and in most situations, RPC provides services ahead of payment - i.e., RPC has fulfilled the performance obligation prior to submitting a customer invoice. RPC invoices the customer upon completion of the specified services and collection is generally expected between 30 to 60 days after invoicing. As the Company enters into contracts with its customers, it generally expects there to be no significant timing difference between the date the services are provided to the customer (satisfaction of the performance obligation) and the date cash consideration is received. Accordingly, there is no financing component to our arrangements with customers.

Significant judgments:

RPC believes the output method is a reasonable measure of progress for the satisfaction of our performance obligations, which are satisfied over time, as it provides a faithful depiction of (1) our performance toward complete satisfaction of the performance obligation under the contract and (2) the value transferred to the customer of the services performed under the contract. RPC has elected the right to invoice practical expedient for recognizing revenue related to its performance obligations.

Disaggregation of revenues:

See Note 6 for disaggregation of revenue by operating segment and services offered in each of them and by geographic regions.

Contract balances:

Contract assets representing the Company’s rights to consideration for work completed but not billed are included in accounts receivable, net in the accompanying Consolidated Balance Sheets are shown below:

June 30, 

December 31, 

(in thousands)

    

2023

    

2022

Unbilled trade receivables

$

60,139

$

103,498

Substantially all of the unbilled trade receivables disclosed were or are expected to be invoiced during the following quarter.

9

Table of Contents

RPC, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

4.    EARNINGS PER SHARE

Basic and diluted earnings per share are computed by dividing net income by the weighted average number of shares outstanding during the respective periods. In addition, the Company has periodically issued share-based payment awards that contain non-forfeitable rights to dividends and are therefore considered participating securities. Restricted shares of common stock (participating securities) outstanding and a reconciliation of weighted average shares outstanding is as follows:

Three months ended

Six months ended

June 30

June 30

(in thousands)

    

2023

    

2022

    

2023

    

2022

Net income available for stockholders

$

65,013

$

46,939

$

136,537

$

62,018

Less: Adjustments for earnings attributable to participating securities

(1,056)

(695)

(2,193)

(886)

Net income used in calculating earnings per share

$

63,957

$

46,244

$

134,344

$

61,132

Weighted average shares outstanding (including participating securities)

 

216,398

 

216,565

 

216,762

 

216,403

Adjustment for participating securities

 

(3,584)

 

(3,206)

 

(3,544)

 

(3,090)

Shares used in calculating basic and diluted earnings per share

 

212,814

 

213,359

 

213,218

 

213,313

5.    STOCK-BASED COMPENSATION

In April 2014, the Company reserved 8,000,000 shares of common stock under the 2014 Stock Incentive Plan with a term of 10 years expiring in April 2024. This plan provides for the issuance of various forms of stock incentives, including, among others incentive and non-qualified stock options and restricted shares. As of June 30, 2023, there were 866,487 shares available for grant.

In the first quarter of 2023, the Company issued time-lapse restricted shares to certain employees that will vest ratably over a period of four years. In addition, the Company granted performance share unit awards to its executive officers and certain other employees that vest based on the achievement of pre-established financial performance targets and relative total shareholder return performance. The awards will be issued at different levels based on the performance achieved with a cliff vesting at the end of fiscal year ending 2025. The Company evaluated the portion of the award that are probable to vest and has accrued compensation expense at 100 percent of the target award.

Stock-based employee compensation expense for the three and six months ended June 30, 2023 was as follows:

Three months ended

Six months ended

June 30, 

June 30, 

(in thousands)

    

2023

2022

    

2023

2022

Pre-tax expense

$

2,316

$

1,695

$

4,118

$

3,192

After tax expense

$

1,744

$

1,279

$

3,126

$

2,409

The following is a summary of the changes in non-vested restricted shares for the six months ended June 30, 2023:

Weighted Average 

    

Shares

    

Grant-Date Fair Value

Non-vested shares at January 1, 2023

3,248,728

$

6.87

Granted

 

1,235,728

 

9.50

Vested

 

(858,425)

 

8.60

Forfeited

 

(47,276)

 

8.22

Non-vested shares at June 30, 2023

 

3,578,755

$

7.35

10

Table of Contents

RPC, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The total fair value of shares vested was $7.8 million during the six months ended June 30, 2023 and $2.8 million during the six months ended June 30, 2022. Excess tax benefits or deficits realized from tax compensation deductions in excess of, or lower than, compensation expense are recorded as either a beneficial or detrimental discrete income tax adjustment. This was a favorable adjustment of $165 thousand for the six months ended June 30, 2023 and a detrimental adjustment of $669 thousand for the six months ended June 30, 2022. The table above does not include any of the activity related to performance share unit awards since they are not currently issued or vested.

6.    BUSINESS SEGMENT INFORMATION

RPC’s reportable segments are the same as its operating segments. RPC manages its business under Technical Services and Support Services. Technical Services is comprised of service lines that generate revenue based on equipment, personnel or materials at the well site and are closely aligned with completion and production activities of the customers. Support Services is comprised of service lines which generate revenue from services and tools offered off the well site and are more closely aligned with the customers’ drilling activities. Selected overhead including certain centralized support services and regulatory compliance are classified as Corporate.

Technical Services consists primarily of pressure pumping, downhole tools, coiled tubing, snubbing, nitrogen, well control, wireline and fishing. The services offered under Technical Services are high capital and personnel intensive businesses. The Company considers all of these services to be closely integrated oil and gas well servicing businesses and makes resource allocation and performance assessment decisions based on this operating segment as a whole across these various services.

Support Services consist primarily of drill pipe and related tools, pipe handling, pipe inspection and storage services, and oilfield training and consulting services. The demand for these services tends to be influenced primarily by customer drilling-related activity levels.

The Company’s Chief Operating Decision Maker (“CODM”) assesses performance and makes resource allocation decisions regarding, among others, staffing, growth and maintenance capital expenditures and key initiatives based on the operating segments outlined above.

Segment Revenues:

RPC’s operating segment revenues by major service lines are shown in the following table:

Three months ended

Six months ended

June 30, 

June 30, 

(in thousands)

    

2023

    

2022

    

2023

    

2022

Technical Services:

  

  

  

  

Pressure Pumping

$

209,820

$

194,641

$

474,621

$

314,539

Downhole Tools

 

101,589

 

89,927

208,993

 

170,997

Coiled Tubing

 

38,355

 

36,315

78,421

 

63,165

Nitrogen

 

12,719

 

10,789

24,816

 

18,392

Snubbing

 

7,672

 

7,025

14,763

 

13,237

All other

 

19,863

 

17,406

40,395

 

42,122

Total Technical Services

$

390,018

$

356,103

$

842,009

$

622,452

Support Services:

 

  

 

  

 

  

 

  

Rental Tools

$

18,334

$

14,314

$

36,010

$

27,377

All other

 

7,506

 

5,090

 

14,507

 

10,302

Total Support Services

$

25,840

$

19,404

$

50,517

$

37,679

Total revenues

$

415,858

$

375,507

$

892,526

$

660,131

11

Table of Contents

RPC, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The following summarizes revenues for the United States and separately for all international locations combined for the three and six months ended June 30, 2023 and 2022. The revenues are presented based on the location of the use of the equipment or services. Assets related to international operations are less than 10 percent of RPC’s consolidated assets, and therefore are not presented.

    

Three months ended

    

Six months ended

June 30, 

June 30, 

(in thousands)

    

2023

    

2022

    

2023

    

2022

United States revenues

$

409,431

$

368,824

$

878,818

$

644,169

International revenues

 

6,427

 

6,683

13,708

 

15,962

Total revenues

$

415,858

$

375,507

$

892,526

$

660,131

The accounting policies of the reportable segments are the same as those referenced in Note 1 to these consolidated financial statements. RPC evaluates the performance of its segments based on revenues, operating profits and return on invested capital. Gains or losses on disposition of assets are reviewed by the CODM on a consolidated basis, and accordingly the Company does not report gains or losses at the segment level. Inter-segment revenues are generally recorded in segment operating results at prices that management believes approximate prices for arm’s length transactions and are not material to operating results.

Summarized financial information with respect RPC’s reportable segments for the three and six months ended June 30, 2023, and 2022 are shown in the following table:

Three months ended

Six months ended

June 30, 

June 30, 

(in thousands)

    

2023

    

2022

    

2023

    

2022

Revenues:

 

  

 

  

 

  

 

  

Technical Services

$

390,018

$

356,103

$

842,009

$

622,452

Support Services

 

25,840

 

19,404

 

50,517

 

37,679

Total revenues

$

415,858

$

375,507

$

892,526

$

660,131

Operating income:

 

 

 

 

Technical Services

$

77,017

$

59,827

$

180,550

$

81,638

Support Services

 

7,920

 

3,334

 

14,564

 

6,114

Corporate expenses

 

(4,672)

 

(4,544)