RPC, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenues increased 1% sequentially to $467.7 million.
• Net loss was $41.9 million ($0.20 per share), compared to net income of $12.1 million ($0.05 per share) in the prior quarter; net loss margin was 9.0% versus 2.6% in 2Q:26.
• Adjusted net income was $22.8 million ($0.10 diluted EPS), up from $17.8 million ($0.08 diluted EPS) in 2Q:26; adjusted net income margin was 4.9% versus 3.9%.
• Adjusted EBITDA was $71.5 million, up 8% from $66.0 million in 2Q:26; adjusted EBITDA margin was 15.3% versus 14.3%.
• Cost of revenues (excluding depreciation and amortization) increased to $349.8 million from $345.7 million.
• Selling, general and administrative expenses were $50.8 million, essentially unchanged from $51.5 million in the prior quarter.
• Impairment charges totaled $74.5 million (non-cash), related to the Pintail wireline business.
• Net cash provided by operating activities was $115.7 million year-to-date; free cash flow was $5.0 million year-to-date.
• Cash and cash equivalents decreased $32.9 million year-to-date to $177.1 million.

Guidance and Future Outlook:

• Management stated that drilling and completion activity has improved during the year, resulting in higher customer activity levels in several service lines.
• Current oil prices are supporting a more favorable operating environment.
• Inflationary pressures across labor, trucking, and fuel continue to create cost pressures.
• The company intends to pay a dividend in the fourth quarter.
• Management expressed confidence that the breadth of service offerings, strong balance sheet, and disciplined capital allocation strategy position RPC to respond to changing customer activity levels.

Business Segments and Product Lines:

• Technical Services: Revenues were $444.2 million (up 1% sequentially); operating income was $28.9 million (up 5%). Results driven by double-digit growth in Coiled Tubing, Nitrogen, and Snubbing revenues, partially offset by lower Wireline revenues.
• Support Services: Revenues were $23.5 million (up 3% sequentially); operating income was $3.6 million (up 56%). Growth led by Patterson Rental Tools, which increased 7%, driven by higher activity and the fixed-cost nature of the service line.
• The $74.5 million impairment charge is entirely related to the Technical Services segment (Pintail).

Market and Competitive Landscape:

• Average U.S. Rig Count was 589 in 3Q:26, up 6.3% sequentially and 9.1% year-over-year.
• Average Oil Price was $86.07/barrel in 3Q:26, down 10.8% sequentially but up 30.7% year-over-year.
• Average Natural Gas Price was $2.88/Mcf in 3Q:26, down 2.0% sequentially and 5.3% year-over-year.
• The oilfield services market remains very competitive.

Risks and Challenges:

• Pintail wireline business faces persistent pricing weakness, lower activity, and cost pressure, leading to the $74.5 million impairment charge.
• Ongoing integration of Pintail and its operating performance may not match previous projections.
• Inflationary pressures on labor, trucking, and fuel costs.
• Potential for further impairments regarding Pintail if pricing weakness or activity levels continue.
• Risks include changes in oil and gas prices, customer capital spending levels, tariffs, adverse weather, geopolitical events, and actions by OPEC.

Management Commentary and Tone:

• Ben M. Palmer, President and CEO, stated that results demonstrated the value of RPC's diversified service offerings and improved profitability across much of the portfolio.
• Management highlighted the strength of the balance sheet and disciplined capital allocation strategy.
• The tone reflects confidence in the company's ability to respond to changing activity levels while pursuing opportunities to enhance long-term shareholder returns.

Other Key Points:

• The Board of Directors declared a regular quarterly cash dividend of $0.04 per share, payable on December 10, 2026, to stockholders of record on November 10, 2026.
• Payment of dividends totaled $26.6 million year-to-date.
• Share repurchases totaled $3.5 million year-to-date, related to tax withholdings for restricted stock vesting.
• The company made a $20.0 million principal payment on a note payable in 2Q:26, reducing interest expense by 21% in 3Q:26.
• There were no outstanding borrowings under the $100 million revolving credit facility during the quarter.
• Working capital was a significant use of cash year-to-date due to higher accounts receivable and strategic inventory purchases for key components in short supply.
• Acquisition related employment costs were $7.3 million, representing non-cash accounting adjustments contingent upon continued employment following the Pintail acquisition.