BUSINESS SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2011

BUSINESS SEGMENT INFORMATION

7.      BUSINESS SEGMENT INFORMATION

RPC’s service lines have been aggregated into two reportable oil and gas services segments, Technical Services and Support Services, because of the similarities between the financial performance and approach to managing the service lines within each of the segments, as well as the economic and business conditions impacting their business activity levels.  Corporate includes selected administrative costs incurred by the Company that are not allocated to business units.  Gains or losses on disposition of assets are reviewed by the Company’s chief decision maker on a consolidated basis, and accordingly the Company does not report gains or losses at the segment level.

Technical Services include RPC’s oil and gas service lines that utilize people and equipment to perform value-added completion, production and maintenance services directly to a customer’s well. These services include pressure pumping services, snubbing, coiled tubing, nitrogen pumping, well control consulting and firefighting, downhole tools, wireline, and fluid pumping services.  These Technical Services are primarily used in the completion, production and maintenance of oil and gas wells. The principal markets for this segment include the United States, including the Gulf of Mexico, the mid-continent, southwest, Rocky Mountain and Appalachian regions, and international locations including primarily Africa, Canada, China, Latin America, the Middle East and New Zealand. Customers include major multi-national and independent oil and gas producers, and selected nationally-owned oil companies.

Support Services include RPC’s oil and gas service lines that primarily provide equipment for customer use or services to assist customer operations. The equipment and services include drill pipe and related tools, pipe handling, inspection and storage services and oilfield training services. The demand for these services tends to be influenced primarily by customer drilling-related activity levels. The principal markets for this segment include the United States, including the Gulf of Mexico and the mid-continent regions, and select international locations. Customers include domestic operations of major multi-national and independent oil and gas producers, and selected nationally-owned oil companies.

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.

Certain information with respect to RPC’s business segments is set forth in the following tables:

	Three Months Ended June 30						Six Months Ended June 30
	2011			2010			2011			2010
	(in thousands)
Revenues:
Technical services	$	406,736		$	225,538		$	756,138		$	416,941
Support services		36,293			27,358			68,652			49,099
Total revenues	$	443,029		$	252,896		$	824,790		$	466,040
Operating Profit:
Technical services	$	109,509		$	46,343		$	209,425		$	71,301
Support services		13,154			6,639			23,089			8,549
Corporate expenses		(3,474	)		(2,426	)		(8,410	)		(5,862	)
Gain on disposition of assets, net		78			1,533			1,489			669
Total operating profit	$	119,267		$	52,089		$	225,593		$	74,657
Other (expense) income, net		(10	)		(288	)		324			115
Interest expense		(998	)		(502	)		(2,077	)		(1,043	)
Interest income		3			9			7			32
Income before income taxes	$	118,262		$	51,308		$	223,847		$	73,761

Six months ended June 30, 2011	Technical Services		Support Services		Corporate		Total
(in thousands)
Identifiable assets at June 30, 2011	$	911,790	$	160,493	$	42,509	$	1,114,792
Capital expenditures		183,762		18,625		1,466		203,763
Depreciation and amortization		70,669		13,667		94		84,430