Business Segment and Entity Wide Disclosures

12 Months Ended

Dec. 31, 2022

Business Segment and Entity Wide Disclosures

Business Segment and Entity Wide Disclosures

Note 15: Business Segment and Entity Wide Disclosures

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 equipment offered off the well site and are 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 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:

(in thousands)	2022		2021		2020
Technical Services:
Pressure Pumping	$	846,939	$	369,028	$	221,597
Downhole Tools		374,081		247,019		195,052
Coiled Tubing		140,889		88,946		51,616
Nitrogen		39,596		38,773		30,213
Snubbing		28,028		15,408		8,016
All other		86,830		55,872		49,994
Total Technical Services	$	1,516,363	$	815,046	$	556,488
Support Services:
Rental Tools	$	62,780	$	32,167	$	25,280
All other		22,619		17,716		16,534
Total Support Services	$	85,399	$	49,883	$	41,814
Total revenues	$	1,601,762	$	864,929	$	598,302

The accounting policies of the reportable segments are the same as those described in Note 1. 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 concerning RPC’s reportable segments for the years ended December 31, 2022, 2021 and 2020 are shown in the following table:

							Gain on		Pension Settlement,
	Technical		Support				disposition of		Impairment and
(in thousands)	Services		Services		Corporate		assets, net		other charges			Total
2022
Revenues	$	1,516,363	$	85,399	$	—	$	—	$	—		$	1,601,762
Operating profit (loss)		281,622		18,095		(17,660)		8,804		(2,921)	(1)		287,940
Capital expenditures		126,327		12,320		905		—		—			139,552
Depreciation and amortization		73,016		9,840		161		—		—			83,017
Identifiable assets		823,434		80,104		225,475		—		—			1,129,013
2021
Revenues	$	815,046	$	49,883	$	—	$	—	$	—		$	864,929
Operating profit (loss)		24,434		(5,725)		(13,300)		10,882		—			16,291
Capital expenditures		59,316		7,012		1,317		—		—			67,645
Depreciation and amortization		62,667		9,752		267		—		—			72,686
Identifiable assets		580,406		69,345		214,614		—		—			864,365
2020
Revenues	$	556,488	$	41,814	$	—	$	—	$	—		$	598,302
Operating (loss) profit		(82,525)		(6,714)		(12,426)		9,523		(217,493)	(2)		(309,635)
Capital expenditures		54,327		10,224		514		—		—			65,065
Depreciation and amortization		80,877		14,377		276		—		—			95,530
Identifiable assets		499,764		64,457		226,284		—		—			790,505

(1) Represents $2,921 related to pension settlement loss.

(2) Represents $212,292 related to technical services, $4,660 related to pension settlement loss and the remainder related to corporate expenses.

The following summarizes revenues for the United States and separately for all international locations combined for the years ended December 31, 2022, 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.

(in thousands)	2022		2021		2020
United States revenues	$	1,569,160	$	833,686	$	562,390
International revenues		32,602		31,243		35,912
Total revenues	$	1,601,762	$	864,929	$	598,302