Rpc, Inc. · NYSE:RES
Rpc — Q2 2017 Earnings Presentation
16 slides from Rpc's earnings presentation, Aug 17, 2017
Slide 1: RPC, Inc. 3rd Quarter 2017 Investor Update
RPC, Inc. (NYSE: RES) 3 rd Quarter 2017 Investor Update POSITIVE TRACTION
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 beliefs
Slide 3: Corporate Profile
Corporate Profile NYSE: RES. Publicly-traded since 1984 Recent Share Price (August 11, 2017) $ 19.70 Market Capitalization $4.4 Billion Average Daily Volume (YTD) 1,924,000 Large Insider Ownership • Provider of Oilfield Completion, Workover and Rental Services • Primarily U.S., Land-Based • Conserva
Slide 4: Why RPC?
Why RPC? • Operational focus and Tenured Management • Proven ability to manage through the oilfield cycles and allocate capital appropriately • Strong presence in the Permian Basin • Completion-oriented businesses Together, these factors have generated superior shareholder returns RPC has Maintained
Slide 5: Return on Invested Capital
Return on Invested Capital * RPC Peers ** 50% 40% 30% 20% 10% 0% (10%) 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 * Calculated using cash flow from operations and average invested capital ** BAS, SPN, 2006; BAS, SPN, KEG 2007; BAS, KEG, SPN, CJES, 2008 – 2015. TU
Slide 6: Second Quarter 2017 Financial Highlights
Second Quarter 2017 Financial Highlights Key Financial Results ($ millions) Revenues: $ 398.8 Operating Profit: $ 67.0 Net Income: $ 43.8 EBITDA: $ 110.3 Profitable for the second consecutive quarter since Q1 2015 Q2 2017 Compared to Q1 2017 Revenues increased by 33.8%. EBITDA incrementals of 63.4%.
Slide 7: Responsible Stewardship of Cash
Responsible Stewardship of Cash RPC Summarized Cash Flow 2006 – Q2 2017 ($ 000’s) $0 $500 $1000 $1500 $2000 $2500 $3000 Beginning Cash Operating Cash Flow Other Financing Net Capex Dividends Paid Net Repurchase of Stock Ending Cash Between the Beginning of 2006 and the end of Q3 2015, RPC borrowed a
Slide 8: RPC's Near-Term Strategy
RPC’s Near-Term Strategy Activation of Idle Equipment Recruiting Customer Selection Market Assessment Financial and Operational Flexibility Maintenance and Preventative Maintenance 8
Slide 9: Top Service Lines
Top Service Lines Service Line Revenue as a Percentage of Consolidated Revenues Three Months Ended June 30, 2017 Pressure Pumping Thru Tubing Solutions (Downhole Tools) Coiled Tubing Rental Tools Nitrogen Snubbing Other 63.6% 18.0% 6.5% 6.3% 1.7% 10.6% 2.3% 9
Slide 10: Pressure Pumping
Pressure Pumping Well-maintained, high quality fleet concentrated in service-intensive oilfield basins Fleet assessment process has efficiently refined maintenance procedures Demonstrated ability to operate efficiently and effectively positioned to benefit from increasing activity levels 10
Slide 11: 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 Continuous innovation in specialized comple
Slide 12: Coiled Tubing
Coiled Tubing 49 units used to enter new and existing wells to perform a variety of services. Approximately 26 are > 2” in diameter. Used in completion and workover #4 U.S. competitor with 9% market share 12
Slide 13: Patterson Rental Tools
Patterson Rental Tools Rents a variety of tools and products required during drilling or re-entering a well 1.6% of Q2 2017 revenues 2% market share Currently Leveraged to Liquids- and Oil-Related Plays in Bakken and Eagle Ford with recent entrance into Permian Basin 13
Slide 14: Other Workover Services
Other Workover Services Nitrogen Used in a variety of oilfield applications and several non-oilfield industrial uses 68 nitrogen units, 2.3% of Q2 2017 revenues Snubbing / Hydraulic Workover Allows workover work to be performed on live wells 32 snubbing units, 1.7% of Q2 2017 revenues Well Control W
Slide 15: 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 15
Slide 16: Appendix A
Appendix A RPC has used the non-GAAP financial measure of earnings before interest, taxes, depreciation and amortization (EBITDA) in today's earnings release, and anticipates using EBITDA in today's earnings conference call. EBITDA should not be considered in isolation or as a substitute for operati