BUSINESS SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2022

BUSINESS SEGMENT INFORMATION

BUSINESS SEGMENT INFORMATION

6.    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 certain 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)	2022		2021		2022		2021
Technical Services:
Pressure Pumping	$	194,641	$	72,179	$	314,539	$	147,079
Downhole Tools		89,927		58,853		170,997		115,230
Coiled Tubing		36,315		20,399		63,165		35,167
Nitrogen		10,789		8,039		18,392		19,199
Snubbing		7,025		3,105		13,237		6,937
All other		17,406		13,544		42,122		25,148
Total Technical Services	$	356,103	$	176,119	$	622,452	$	348,760
Support Services:
Rental Tools	$	14,314	$	8,549	$	27,377	$	14,581
All other		5,090		4,089		10,302		8,026
Total Support Services	$	19,404	$	12,638	$	37,679	$	22,607
Total revenues	$	375,507	$	188,757	$	660,131	$	371,367

The following summarizes revenues for the United States and separately for all international locations combined for the three and six months ended June 30, 2022 and 2021. 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)	2022		2021		2022		2021
United States revenues	$	368,824	$	181,530	$	644,169	$	354,459
International revenues		6,683		7,227		15,962		16,908
Total revenues	$	375,507	$	188,757	$	660,131	$	371,367

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, 2022 and 2021 are shown in the following table:

	Three months ended				Six months ended
	June 30,				June 30,
(in thousands)	2022		2021		2022		2021
Revenues:
Technical Services	$	356,103	$	176,119	$	622,452	$	348,760
Support Services		19,404		12,638		37,679		22,607
Total revenues	$	375,507	$	188,757	$	660,131	$	371,367
Operating income (loss):
Technical Services	$	59,827	$	1,429	$	81,638	$	(4,334)
Support Services		3,334		(2,402)		6,114		(5,298)
Corporate Expenses		(4,544)		(3,358)		(9,054)		(6,680)
Gain on disposition of assets, net		1,798		3,111		4,752		4,571
Total operating income (loss)	$	60,415	$	(1,220)	$	83,450	$	(11,741)
Interest expense		(222)		(103)		(400)		(483)
Interest income		128		14		143		32
Other income, net		79		616		583		1,123
Income (loss) before income taxes	$	60,400	$	(693)	$	83,776	$	(11,069)

As of and for the six months ended	Technical		Support
June 30, 2022	Services		Services		Corporate		Total
(in thousands)
Depreciation and amortization	$	34,682	$	4,752	$	126	$	39,560
Capital expenditures		43,418		7,066		94		50,578
Identifiable assets		702,162		76,205		186,712		965,079

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