BUSINESS SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2014

BUSINESS SEGMENT INFORMATION

BUSINESS SEGMENT INFORMATION

6.         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 these 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, Australia, Canada, China and Mexico. 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 selected 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
(in thousands)	2014			2013			2014			2013
Revenues:
Technical Services	$	544,392		$	424,030		$	1,011,362		$	818,041
Support Services		38,439			33,536			73,161			65,346
Total revenues	$	582,831		$	457,566		$	1,084,523		$	883,387
Operating profit:
Technical Services	$	99,717		$	66,123		$	164,613		$	124,624
Support Services		8,998			7,081			16,455			13,339
Corporate		(4,279	)		(3,594	)		(9,168	)		(8,494	)
Loss on disposition of assets, net		(1,405	)		(1,757	)		(3,637	)		(4,397	)
Total operating profit	$	103,031		$	67,853		$	168,263		$	125,072
Interest expense		(49	)		(942	)		(386	)		(1,282	)
Interest income		6			60			10			65
Other income (expense), net		831			(191	)		911			364
Income before income taxes	$	103,819		$	66,780		$	168,798		$	124,219

Six months ended June 30, 2014	Technical Services			Support Services			Corporate			Total
(in thousands)
Identifiable assets at June 30, 2014		$	1,284,577		$	161,572		$	84,712		$	1,530,861
Capital expenditures			92,820			19,417			567			112,804
Depreciation and amortization		$	95,839		$	15,863		$	320		$	112,022

Six months ended June 30, 2013	Technical Services			Support Services		Corporate		Total
(in thousands)
Identifiable assets at June 30, 2013		$	1,079,607	$	195,406	$	53,969	$	1,328,982
Capital expenditures			86,217		21,626		647		108,490
Depreciation and amortization		$	89,442	$	15,803	$	343	$	105,588