Slide 1: Corporate Overview
1 Corporate Overview. June 9, 2015
Slide 2: Forward-Looking Statement Disclosure
Forward - Looking Statement Disclosure Certain statements and information included in this presentation constitute "forward - looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including all statements that look forward in time or express management’s bel
Slide 3: Corporate Profile
Corporate Profile NYSE: RES. Publicly - traded since 1984 Recent Share Price (June 5, 2015) $ 14.91 Annual Dividend Yield 1.3% Market Capitalization $ 3.2 billion Average Daily Volume (YTD 2015) 1,706,000 Large Insider Ownership 3
Slide 4: Position within Evolving Oilfield Services Market
Position within Evolving Oilfield Services Market 4 0.0% 10.0% 20.0% 30.0% 40.0% RPC, Inc. Peers * Debt to Total Capitalization - March 31, 2015 * Peers as of March 31, 2015 BAS , CJES, KEG, OIS, PTEN, SPN ▪ U.S., Primarily Land - Based, Serving Large Independents in the Drilling and Completion Mark
Slide 5: Company history and milestones
Inception – 1973 ▪ Patterson Services founded in Louisiana after World War II. Provided oilfield trucking and drilling fluids. Operates today as RPC’s rental tool service line. ▪ Rollins, Inc. (NYSE: ROL) acquired Patterson in 1973. 1970’s – 1984 ▪ Cudd Pressure Control founded and acquired by Rolli
Slide 6: Significant Markets for RPC, Inc.
Bakken Shale Fayetteville Woodford Permian Basin Barnett Eagle Ford Haynesville Marcellus Shale Tuscaloosa Marine Shale Avalon - Bone Spring Corporate CUDD Pressure Control Patterson ThruTubing Solutions Well Control Significant Markets for RPC, Inc. West Texas (Permian) South Texas (Eagle Ford) Okl
Slide 7: Top Service Lines
Top Service Lines 7 Service Line Revenue as a Percentage of Consolidated Revenues 12 Months Ended December 31, 2014 57% 3% 4% 3% 9% 15% 8% Pressure Pumping Thru Tubing Solutions (Downhole Tools) Coiled Tubing Rental Tools Nitrogen Snubbing Other
Slide 8: Pressure Pumping
Pressure Pumping ▪ Well - maintained, high quality fleet concentrated in service - intensive oilfield basins ▪ Demonstrated ability to operate efficiently and effectively positioned to benefit from increasing activity levels ▪ #8 in US Land Market and 4% US Market Share ▪ 920,000 hydraulic horsepowe
Slide 9: RPC's Pressure Pumping Fleet Distribution Mirrors Current U.S. Domestic Rig Count
RPC’s Pressure Pumping Fleet Distribution Mirrors Current U.S. Domestic Rig Count 9 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Permian Eagle Ford Haynesville / East Texas Arkoma / Anadarko / Mississippi Lime Marcellus / Utica Bakken Other * * RPC Pressure Pumping Distribution Rig Count, May 2015 * * Aver
Slide 10: ThruTubing Solutions
ThruTubing Solutions ▪ ThruTubing Solutions ( Downhole tools and motors) provides services used in unconventional completion operations ▪ Specializes in accomplishing multi - stage completions in unconventional wells. ▪ Significant revenue growth during past decade ▪ 15% of 2014 RPC revenues 10
Slide 11: Coiled Tubing
Coiled Tubing ▪ 53 units used to enter new and existing wells to perform a variety of services. Approximately 44 are > 2” in diameter. ▪ Growing utilization with unconventional plays and larger - diameter coiled tubing strings ▪ # 4 U.S. competitor with 8% market share ▪ 9% of 2014 RPC revenues 11
Slide 12: Patterson Rental Tools
Patterson Rental Tools ▪ Rents a variety of tools and products required during drilling or re - entering a well ▪ 4% of 2014 RPC revenues ▪ 2% market share ▪ Currently Leveraged to Liquids - and Oil - Related Plays in Bakken and Eagle Ford with recent entrance into Permian Basin 12
Slide 13: Other Workover Services
Other Workover Services Nitrogen ▪ Used in a variety of oilfield applications and several non - oilfield industrial uses ▪ 81 nitrogen units, 3% of 2014 revenues Snubbing / Hydraulic Workover ▪ Allows workover work to be performed on live wells. ▪ 35 snubbing units, 3% of 2014 revenues Well Control
Slide 14: First Quarter 2015 Financial Highlights
First Quarter 2015 Financial Highlights ($ millions) 14 Revenues : $406.3 Operating Profit: $6.17 Net Income: $7.5 EBITDA : $77.9 Q1 2015 Compared to Q1 2014 ▪ Revenue decreased by 19% due to decreased activity levels and pricing in all of our service lines ▪ Operating Profit and EBITDA decreased du
Slide 15: RPC First Quarter 2015 Update
RPC First Quarter 2015 Update 15 ▪ Rig count decline of 55% from Sep. 2014 through beginning of Jun. 2015 ▪ In contrast to lower activity levels, completion service intensity continues to increase ▪ Pressure Pumping Fleet addition completed during Q2 ▪ Liquid Balance Sheet supports continued operati
Slide 16: Debt to Total Book Capital
Debt to Total Book Capital 16 RPC continues to be conservatively capitalized. 0% 5% 10% 15% 20% 25% 30% 35% Q1 07Q3 07Q1 08Q3 08Q1 09Q3 09Q1 10Q3 10Q1 11Q3 11Q1 12Q3 12Q1 13Q3 13Q1 14Q3 14Q1 15 Debt as a percentage of total capital
Slide 17: Historical Dividends
Historical Dividends 17 Quarterly Dividend ($ per share) June 2001 dividend reduced due to spin - off of powerboat manufacturing subsidiary. • 17% Compounded Dividend Growth Rate over the past 17+ years • Average dividend payout ratio > 40% RPC, Inc. Dividends Per Share through 2Q 2015 (* Excludes 4
Slide 18: Return on Invested Capital
Return on Invested Capital * 18 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 20012002200320042005200620072008200920102011201220132014 RPC Peers ** * Calculated using cash flow from operations and average invested capital ** BAS, SPN, 2006 – 2013. BAS, SPN, KEG 2007 – 2013. BAS, KEG, SPN, CJES, 2008 – 2
Slide 19: Contact Us
Contact Us Operational Headquarters: The Woodlands, Texas (above) Corporate Headquarters: 2801 Buford Highway NE, Suite 520 Atlanta, GA 30329 (404) 321 - 2140 irdept@rpc.net www.rpc.net 19
Slide 20: Appendix A: Reconciliation of Net Income to EBITDA
Appendix A 20 Periods ended, (Unaudited) (in thousands except per share data) March 31, 2015 December 31, 2014 March 31, 2014 Reconciliation of Net Income to EBITDA Net Income $ 7,548 $ 77,637 $ 39,388 Add: Income tax provision 3,726 47,196 25,591 Interest expense 691 589 337 Depreciation and amorti