Exhibit 99.1
RPC, Inc. Second Quarter 2022 Financial Summary and Corporate Overview July 27, 2022
FORWARD LOOKING STATEMENTS 2 Certain statements and information included in this discussion constitute "forward - looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including all statements that look forward in time or express management’s beliefs, ex pectations or hopes. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of RPC to be materially different from any future results, performance or achievements expressed or implied in such forward - looking statements, including ( i ) our belief that our second quarter financial results improved significantly as commodity prices and strong industry fundamentals encouraged our customers to increase their drilling and completion activities, (ii) our beli ef that these increased activities, coupled with an undersupply of oilfield equipment and crews, allowed us to improve our utilization and pri cing and generate strong financial results, (iii) our belief that as we enter the third quarter, market dynamics remain strong and we exp ect continued demand for our services, (iv) our belief that our favorable view of the intermediate - term operating environment and high equipme nt utilization allows us to allocate capital to maintain the capacity of our pressure pumping fleet to offset anticipated fleet requirements , ( v) our expectation that the refurbishment of an existing fleet will be activated in early 2023 and that a pressure pumping fleet will be deliver ed and paid for in the first half of 2023, and (vi) our confidence in our ability to generate strong cash flows . Such risks include changes in gene ral global business and economic conditions, including the continued economic impact caused by the COVID - 19 pandemic and fluctuations in prices of o il and natural gas; risks associated with collections of our accounts receivable from customers experiencing challenging business co ndi tions; drilling activity and rig count; risks of reduced availability or increased costs of both labor and raw materials used in providing ou r s ervices; the impact on our operations due to changes in regulatory and environmental laws; turmoil in the financial markets and the potential dif fic ulty to fund our capital needs; the actions of OPEC+ and the status of the war in Ukraine, which could impact drilling activity; adverse weath er conditions in oil and gas producing regions; competition in the oil and gas industry; an inability to implement price increases; risks of inter nat ional operations; and reliance upon large customers. Additional discussion of factors that could cause the actual results to differ materially from management’s projections, forecasts, estimates and expectations is contained in RPC's Form 10 - K for the year ended December 31, 2021.
RPC AT A GLANCE 3 • NAM Land – focused oilfield services provider that offers a variety of services to major and independent exploration and production customers • Long - term orientation with a proven ability to manage through numerous oilfield cycles. • Conservative balance sheet 0% 10% 20% 30% Total Debt to Enterprise Value As of 07.25.22 RES Peers * * LBRT, NEX, OIS, PTEN, PUMP
Second Quarter and YTD 2022 Compared to Prior Quarter • Revenues increased 32% • Net Income increased to $46.9 million compared to $15.1 million • EBITDA increased 87% • EPS increased by > 200% Quarterly Dividend • $0.02 quarterly dividend reinstated. First dividend since 2019. 2nd Quarter 2022 Financial Highlights 4 RPC INCORPORATED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per share data) Periods ended, (Unaudited) June 30, 2022 March 31, 2022 June 30, 2021 June 30, 2022 June 30, 2021 REVENUES $ 375,507 $ 284,624 $ 188,757 $ 660,131 $ 371,367 COSTS AND EXPENSES: Cost of revenues 260,917 208,837 145,789 469,754 292,012 SG&A expenses 35,879 36,240 29,403 72,119 59,998 Depreciation and amortization 20,094 19,466 17,896 39,560 35,669 Gain on disp. of assets, net (1,798) (2,954) (3,111) (4,752) (4,571) Operating profit (loss) 60,415 23,035 (1,220) 83,450 (11,741) Interest expense (222) (178) (103) (400) (483) Interest income 128 15 14 143 32 Other income, net 79 504 616 583 1,123 Income (Loss) before income taxes 60,400 23,376 (693) 83,776 (11,069) Income tax provision (benefit) 13,461 8,297 33 21,758 (681) NET INCOME (LOSS) $ 46,939 $ 15,079 $ (726) $ 62,018 $ (10,388) EARNINGS (LOSS) PER SHAR Diluted $ 0.22 $ 0.07 $ 0.00 $ 0.29 $ (0.05) WEIGHTED AVERAGE SHARES OUTSTANDING Diluted 216,565 216,242 213,009 216,403 212,970 EBITDA $ 80,588 $ 43,005 $ 17,292 $ 123,593 $ 25,051 Three Months Ended Six Months Ended
Second Quarter and YTD 2022 Compared to Prior Quarter • Revenues increased 32% • Net Income increased to $46.9 million compared to $15.1 million • EBITDA increased 84% • EPS increased by > 200% Quarterly Dividend • $0.02 quarterly dividend reinstated. First dividend since 2019. 2 nd Quarter 2022 Financial Highlights 4 RPC INCORPORATED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per share data) Periods ended, (Unaudited) June 30, 2022 March 31, 2022 June 30, 2021 June 30, 2022 June 30, 2021 REVENUES $ 375,507 $ 284,624 $ 188,757 $ 660,131 $ 371,367 COSTS AND EXPENSES: Cost of revenues 260,917 208,837 145,789 469,754 292,012 SG&A expenses 35,879 36,240 29,403 72,119 59,998 Depreciation and amortization 20,094 19,466 17,896 39,560 35,669 Gain on disp. of assets, net (1,798) (2,954) (3,111) (4,752) (4,571) Operating profit (loss) 60,415 23,035 (1,220) 83,450 (11,741) Interest expense (222) (178) (103) (400) (483) Interest income 128 15 14 143 32 Other income, net 79 504 616 583 1,123 Income (Loss) before income taxes 60,400 23,376 (693) 83,776 (11,069) Income tax provision (benefit) 13,461 8,297 33 21,758 (681) NET INCOME (LOSS) $ 46,939 $ 15,079 $ (726) $ 62,018 $ (10,388) EARNINGS (LOSS) PER SHARE Diluted $ 0.22 $ 0.07 $ 0.00 $ 0.29 $ (0.05) WEIGHTED AVERAGE SHARES OUTSTANDING Diluted 216,565 216,242 213,009 216,403 212,970 EBITDA $ 80,588 $ 43,005 $ 17,292 $ 123,593 $ 25,051 Six Months Ended Three Months Ended
RPC’S POSITION IN THE NAM LAND MARKET 5 56% 10% 5% 5% 3% 17% RPC YTD Revenues by Basin Permian Mid Con Eagle Ford Marcellus / Utica Haynesville / Fayetteville Other (Int'l and GOM) 46% 11% 10% 19% 6% 8% YTD U.S. Land Well Completions by Basin Permian Eagle Ford Marcellus / Utica Bakken / Niobrara Haynesville / Fayetteville Other • RPC manages a broad portfolio of oilfield services. > 85% of RPC revenues are directed towards unconventional completions • The trends toward longer laterals and more completion stages increases the demand for RPC’s services • Largest presence in the Permian Basin, as well as legacy presences within natural gas - directed basins
• 9 active horizontal fleets and 2 active vertical fleets at end of Q2 2022 • Permian Basin, Mid - Continent market presence • Currently refurbishing a legacy fleet with ESG - friendly upgrades. • Additional legacy fleet could be reactivated 2H 2022. • New replacement fleet ordered for 1H 2023 • 48% of consolidated YTD 2022 revenues PRESSURE PUMPING 6 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 2007 2010 2013 2016 2019 2022 YTD Average Well Lateral Lengths Permian and Mid - Continent Increasingly long horizontal well laterals require more pressure pumping capacity Source: Enverus TM
• ThruTubing Solutions provides services and tools used in unconventional completion operations • Specialization in efficiently executing key services required in multi - stage completions in unconventional wells • Proprietary tools and technology • Strong market share • 26% of consolidated YTD 2022 revenue DOWNHOLE TOOLS 7 Thru Tubing Solutions provides many services and tools that are increasingly important for long - lateral multi - stage completions such as the one depicted below.
• 17 units of 2 3/8” or greater in diameter for completion applications. Meaningful market share in this category • 12 smaller units for workover • 10% of consolidated 2022 YTD revenue COILED TUBING 8
• Nitrogen – 3% of YTD revenue. Used in a variety of oilfield applications • Rental Tools – 4% of YTD revenues • Well Control – 2% of YTD revenue. Worldwide provider of blowout and other well control services • Snubbing / Hydraulic Workover – 2% of YTD revenue. Legacy workover applications as well as increasing use in long - lateral multi - stage completions OTHER SERVICE LINES 9
Non - GAAP EBITDA Reconciliation 10 Periods ended, (Unaudited) June 30, 2022 March 31, 2022 June 30, 2021 June 30, 2022 June 30, 2021 (In thousands) Reconciliation of Net Income (Loss) to EBITDA Net Income (Loss) $ 46,939 $ 15,079 $ (726) $ 62,018 $ (10,388) Add: Income tax provision (benefit) 13,461 8,297 33 21,758 (681) Interest expense 222 178 103 400 483 Depreciation and amortization 20,094 19,466 17,896 39,560 35,669 Less: Interest income 128 15 14 143 32 EBITDA $ 80,588 $ 43,005 $ 17,292 $ 123,593 $ 25,051 Six Months EndedThree Months Ended RPC has used the non - GAAP financial measure of earnings before interest, taxes, depreciation and amortization (EBITDA) in this d iscussion. EBITDA should not be considered in isolation or as a substitute for net income (loss) or other performance measures prepared in acco rda nce with GAAP. RPC uses EBITDA as a measure of operating performance because it allows us to compare performance consistently over various p eri ods without regard to changes in our capital structure or non - recurring items. We are also required to use EBITDA to report compliance with financi al covenants under our revolving credit facility. A non - GAAP financial measure is a numerical measure of financial performance, financial position, or cash flows that either 1) e xcludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure c alc ulated and presented in accordance with GAAP in the statement of operations, balance sheet or statement of cash flows, or 2) includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and pres ent ed. Set forth below is a reconciliation of net income (loss) to EBITDA, the most comparable GAAP measure. This reconciliation also appears on RPC's in vestor website, which can be found on the Internet at rpc.net. The Reconciliation of Net Income (Loss) to EBITDA is shown below:
Operational Headquarters : The Woodlands, Texas Corporate Headquarters: 2801 Buford Highway NE Suite 300 Atlanta, GA 30329 (404) 321 - 2140 IRDept@RPC.net RPC.net CONTACT US 11