RPC Q2 Earnings Lag Estimates, Revenues Increase Y/Y

RPC Inc. RES reported second-quarter 2025 adjusted earnings of 8 cents per share, which missed the Zacks Consensus Estimate of 9 cents. The bottom line declined from the year-ago figure of 15 cents.

Total quarterly revenues were $420.8 million, up from the year-ago quarter’s $364.2 million. The top line beat the Zacks Consensus Estimate of $407 million.

The weak quarterly earnings were primarily due to pressure-pumping weakness, partially offset by the Pintail acquisition.

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 $21 million, lower than the year-ago quarter’s $30.2 million.

Operating profit in the Support Services segment amounted to $4.6 million, higher than the year-ago level of $4.4 million.

Total operating profit in the quarter was $15.5 million, down from $35.5 million in the year-ago quarter. The average domestic rig count was 571, down 5.3% year over year.

The average oil price was $64.74 per barrel, down 20.8% year over year. The average price of natural gas was $3.20 per thousand cubic feet, up 54.6% from the figure recorded in the corresponding period of 2024.

Costs & Expenses

In the second quarter, the cost of revenues increased to $317.7 million from $262.3 million in the prior-year period. Selling, general and administrative expenses amounted to $40.8 million, higher than the year-ago quarter’s $37.4 million.

Financials

RPC’s total capital expenditure was $75.3 million.

As of June 30, the company had cash and cash equivalents of $162.1 million and maintained a debt-free balance sheet.

RES’ Zacks Rank and Key Picks

RES currently carries a Zacks Rank #4 (Sell).

Investors interested in the energy sector may look at some better-ranked stocks like Antero Midstream Corporation AM, Eni S.p.A. E and Enbridge Inc. ENB, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Antero Midstream generates stable cash flow by providing midstream services under long-term contracts with Antero Resources. The company prioritizes debt reduction by effectively utilizing free cash flow after dividends. Antero Midstream’s higher dividend yield compared to its sub-industry peers reflects its commitment to generating shareholder returns.

AM’s earnings beat estimates in one of the trailing four quarters, met once and missed in the other two, delivering an average negative surprise of 5.50%.

Eni’s strategic growth in upstream production, focused portfolio optimization and expansion into renewables highlight its resilience amid changing macroeconomic conditions. Successful ramp-up of exploration projects and efficient asset management reinforce its long-term potential and enhance its position in the global energy market.

E’s earnings missed estimates in three of the trailing four quarters and beat once, delivering an average negative surprise of 11.43%.

Enbridge is a major energy company that owns the longest and most complex oil and gas pipeline system in North America, transporting about 20% of the natural gas used in the United States. The business earns steady fees through long-term contracts, protecting it against big oil price swings or changes in shipment. 

ENB’s earnings beat estimates in two of the trailing four quarters, met once and missed in the other, delivering an average surprise of 0.28%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research