XML 25 R14.htm IDEA: XBRL DOCUMENT

BUSINESS SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2020

7. 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 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)	2020		2019		2020		2019
Technical Services:
Pressure Pumping	$	23,717	$	170,066	$	120,481	$	317,825
Downhole Tools		35,151		112,763		121,059		222,434
Coiled Tubing		8,973		21,284		25,212		41,462
Nitrogen		5,621		12,219		15,553		23,527
Snubbing		1,093		4,355		3,397		7,818
All other		5,977		17,347		22,530		39,047
Total Technical Services	$	80,532	$	338,034	$	308,232	$	652,113
Support Services:
Rental Tools	$	5,069	$	13,962	$	15,475	$	27,898
All other		3,699		6,520		9,370		13,161
Total Support Services	$	8,768	$	20,482	$	24,845	$	41,059
Total revenues	$	89,300	$	358,516	$	333,077	$	693,172

The following summarizes revenues for the United States and separately for all international locations combined for the three and six months ended June 30, 2020 and 2019. 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)	2020		2019		2020		2019
United States revenues	$	82,506	$	343,688	$	310,500	$	657,656
International revenues		6,794		14,828		22,577		35,516
Total revenues	$	89,300	$	358,516	$	333,077	$	693,172

The accounting policies of the reportable segments are the same as those described 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, 2020 and 2019 are shown in the following table:


	Three months ended				Six months ended
	June 30,				June 30,
(in thousands)	2020		2019		2020		2019
Revenues:
Technical Services	$	80,532	$	338,034	$	308,232	$	652,113
Support Services		8,768		20,482		24,845		41,059
Total revenues	$	89,300	$	358,516	$	333,077	$	693,172
Operating (loss) income:
Technical Services	$	(34,100)	$	6,850	$	(46,307)	$	2,392
Support Services		(1,846)		4,018		(299)		7,155
Corporate Expenses		(3,139)		(3,614)		(6,469)		(7,958)
Impairment and Other Charges ⁽¹⁾		(1,639)		—		(207,175)		—
Gain on disposition of assets, net		3,194		1,133		4,013		4,637
Total operating (loss) income	$	(37,530)	$	8,387	$	(256,237)	$	6,226
Interest expense		(71)		(164)		(184)		(253)
Interest income		68		594		402		1,394
Other (expense) income , net		(1,481)		(53)		(1,789)		392
(Loss) Income before income taxes	$	(39,014)	$	8,764	$	(257,808)	$	7,759

(1)	Represents $541 related to Corporate and the remainder to Technical Services.

As of and for the six months ended

Technical

Support

June 30, 2020

Services

Corporate

Total

(in thousands)

Depreciation and amortization

54,615

⁽¹⁾

4,111

140

58,866

Capital expenditures

31,296

7,027

336

38,659

Identifiable assets

474,670

⁽¹⁾

62,867

245,331

782,868

(1)	Reflects impact of impairment charges recorded during the six months ended June 30, 2020.


As of and for the six months ended	Technical		Support
June 30, 2019	Services		Services		Corporate		Total
(in thousands)
Depreciation and amortization	$	80,370	$	4,856	$	160	$	85,386
Capital expenditures		125,171		6,260		822		132,253
Identifiable assets	$	1,030,073	$	86,928	$	106,966	$	1,223,967