Business Segment and Entity Wide Disclosures

12 Months Ended

Dec. 31, 2023

BUSINESS SEGMENT INFORMATION

Business Segment and Entity Wide Disclosures

Note 18: 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, cementing, 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)	2023		2022		2021
Technical Services:
Pressure Pumping	$	771,542	$	846,939	$	369,028
Downhole Tools		397,341		374,081		247,019
Coiled Tubing		152,484		140,889		88,946
Cementing		64,481		21,178		10,111
Nitrogen		47,306		39,596		38,773
Snubbing		26,345		28,028		15,408
All other		56,638		65,652		45,761
Total Technical Services	$	1,516,137	$	1,516,363	$	815,046
Support Services:
Rental Tools	$	73,301	$	62,780	$	32,167
All other		28,036		22,619		17,716
Total Support Services	$	101,337	$	85,399	$	49,883
Total revenues	$	1,617,474	$	1,601,762	$	864,929

The accounting policies of the reportable segments are the same as those described in the note titled Significant Accounting Policies. 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, 2023, 2022 and 2021 are shown in the following table:

							Gain on		Pension
	Technical		Support				disposition of		Settlement
(in thousands)	Services		Services		Corporate		assets, net		charges		Total
2023
Revenues	$	1,516,137	$	101,337	$	—	$	—	$	—	$	1,617,474
Operating income (loss)		245,904		26,461		(18,473)		9,344		(18,286)		244,950
Capital expenditures		160,799		15,634		4,572		—		—		181,005
Depreciation and amortization		97,773		10,293		57		—		—		108,123
Identifiable assets		867,550		81,754		337,541		—		—		1,286,845
2022
Revenues	$	1,516,363	$	85,399	$	—	$	—	$	—	$	1,601,762
Operating income (loss)		281,622		18,095		(17,660)		8,804		(2,921)		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 income (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

The following summarizes revenues for the United States and separately for all international locations combined for the years ended December 31, 2023, 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% of RPC’s consolidated assets, and therefore are not presented.

(in thousands)	2023		2022		2021
United States revenues	$	1,588,774	$	1,569,160	$	833,686
International revenues		28,700		32,602		31,243
Total revenues	$	1,617,474	$	1,601,762	$	864,929