BUSINESS SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2021

BUSINESS SEGMENT INFORMATION

BUSINESS SEGMENT INFORMATION

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)	2021		2020		2021		2020
Technical Services:
Pressure Pumping	$	72,179	$	23,717	$	147,079	$	120,481
Downhole Tools		58,853		35,151		115,230		121,059
Coiled Tubing		20,399		8,973		35,167		25,212
Nitrogen		8,039		5,621		19,199		15,553
Snubbing		3,105		1,093		6,937		3,397
All other		13,544		5,977		25,148		22,530
Total Technical Services	$	176,119	$	80,532	$	348,760	$	308,232
Support Services:
Rental Tools	$	8,549	$	5,069	$	14,581	$	15,475
All other		4,089		3,699		8,026		9,370
Total Support Services	$	12,638	$	8,768	$	22,607	$	24,845
Total revenues	$	188,757	$	89,300	$	371,367	$	333,077

The following summarizes revenues for the United States and separately for all international locations combined for the three and six months ended June 30, 2021 and 2020. 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)	2021		2020		2021		2020
United States revenues	$	181,530	$	82,506	$	354,459	$	310,500
International revenues		7,227		6,794		16,908		22,577
Total revenues	$	188,757	$	89,300	$	371,367	$	333,077

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, 2021 and 2020 are shown in the following table:

	Three months ended				Six months ended
	June 30,				June 30,
(in thousands)	2021		2020		2021		2020
Revenues:
Technical Services	$	176,119	$	80,532	$	348,760	$	308,232
Support Services		12,638		8,768		22,607		24,845
Total revenues	$	188,757	$	89,300	$	371,367	$	333,077
Operating income (loss):
Technical Services	$	1,428	$	(34,100)	$	(4,334)	$	(46,307)
Support Services		(2,402)		(1,846)		(5,298)		(299)
Corporate Expenses		(3,357)		(3,139)		(6,680)		(6,469)
Impairment and Other Charges (1)		—		(1,639)		—		(207,175)
Gain on disposition of assets, net		3,111		3,194		4,571		4,013
Total operating loss	$	(1,220)	$	(37,530)	$	(11,741)	$	(256,237)
Interest expense		(103)		(71)		(483)		(184)
Interest income		14		68		32		402
Other income (expense), net		616		(1,481)		1,123		(1,789)
Loss before income taxes	$	(693)	$	(39,014)	$	(11,069)	$	(257,808)

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

As of and for the six months ended	Technical		Support
June 30, 2021	Services		Services		Corporate		Total
(in thousands)
Depreciation and amortization	$	31,189	$	4,344	$	136	$	35,669
Capital expenditures		21,295		4,347		233		25,875
Identifiable assets	$	485,058	$	73,815	$	231,333	$	790,206

As of and for the six months ended	Technical		Support
June 30, 2020	Services		Services		Corporate		Total
(in thousands)
Depreciation and amortization	$	54,615	$	4,111	$	140	$	58,866
Capital expenditures		31,296		7,027		336		38,659
Identifiable assets	$	474,670	$	62,867	$	245,331	$	782,868