RPC, Inc.

Second-quarter revenues increased 1% sequentially to $461 million. Adjusted diluted EPS was $0.08 per share, with $0.03 of adjustments tied to acquisition-related employment costs. Adjusted EBITDA was $66 million, up from $53.5 million, and adjusted EBITDA margin rose 250 basis points sequentially to 14.3%. Cost of revenues excluding D&A was $346 million, SG&A was $52 million, and D&A was $43 million. Year to date, net cash from operations was $75 million, capex was $71 million, and free cash flow was $4 million. Quarter-end cash was about $180 million, notes payable were $30 million, and there were no borrowings on the $100 million revolver, which was amended and extended through June 2031. For 2026, capex is expected to be $170 million to $190 million, and the quarterly dividend remains $0.04 per share.

Ben Palmer emphasized that RPC is still operating in a subdued industry, but the company is generating sequential growth and margin improvement through execution, better job mix, and technology adoption. He highlighted differentiated offerings in downhole tools, including MetalMax and UnPlug, and pointed to longer, more complex laterals as a structural tailwind for those products. He also framed the company’s stance on capital allocation as disciplined and cautious, with no aggressive push to add fleet capacity.

Mike Schmit said the quarter improved sequentially across profitability metrics, with revenue up 1% to $461 million, adjusted EBITDA up to $66 million, and margin up to 14.3%. He attributed the cost benefits partly to lower materials, supplies, and fuel, while SG&A rose to $52 million because of incentive compensation, higher bad debt expense, and consulting costs. He also noted strong liquidity, with about $180 million of cash, $30 million of notes payable, no revolver borrowings, and a dividend of $0.04 per share; 2026 capex was raised to $170 million-$190 million for targeted growth investments.

In Q&A, John Daniel asked whether the coiled tubing upgrades would stay in specific basins or be deployed more broadly, and management said the current focus is South Texas, the Mid-Con, and the Permian, with no big shifts expected. He also asked about incremental frac horsepower, and Ben Palmer said RPC is not looking to increase fleet count aggressively, instead making selective upgrades and refurbishments to newer or DGB-type equipment. Management stressed that the business can fund these upgrades but will remain prudent rather than pursue expansion for its own sake.