Rpc, Inc. · NYSE:RES
Rpc — Investor Presentation (November 2022)
18 slides from Rpc's investor presentation, Nov 16, 2022
Slide 1: RPC, Inc. Corporate Overview and Q4 2022 Industry Update
RPC, Inc. Corporate Overview and Q4 2022 Industry Update November 16, 2022
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Certain statements and information included in this discussion 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, ex pecta
Slide 3: Corporate Overview
Corporate Overview • NYSE: RES. Publicly - traded since 1984 • Recent Share Price (10.31.22) $ 11.13 • Market Capitalization $2.4 billion • Dividend Yield (annualized) 0.8 % • Average Daily Volume (trailing 3 months) 1,120,000 • Conservative Capitalization • A proven ability to manage through multip
Slide 4: Recent Financial Results
Recent Financial Results RPC INCORPORATED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per share data) Periods ended, (Unaudited) September 30, 2022 June 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 REVENUES $ 459,601 $ 375,507 $ 225,310 $ 1,119,73
Slide 5: RPC's Focus in the Upstream Sector
RPC’s Focus in the Upstream Sector The majority of RPC’s approximately 15 business lines provide services to customers at the completion stage of a well. One of our services rents equipment to be used primarily during drilling, and several others assist customers at the well site to maintain or enha
Slide 6: Current State of the Domestic Oil and Gas Industry
Current State of the Domestic Oil and Gas Industry • Russia’s invasion of Ukraine has revitalized the U.S. oil and gas industry by causing higher commodity prices and a renewed appreciation for the strategic value of the industry. • However, industry investment and activity growth remains muted: • I
Slide 7: RPC's Domestic Markets
RPC’s Domestic Markets Permian _ idand/ Oeloware| goog” Barnett Woodford a RPC INC. DOMESTIC SERVICES MARKET RPC RPC generates the majority of its revenues in hydrocarbon-producing locations in the United States. The largest of these is the Permian Basin, which is located in west Texas and eastern N
Slide 8: RPC's position in the North American Land Market
RPC’s position in the North American Land Market 57% 16% 5% 6% 3% 4% 9% RPC YTD Revenues by Basin Permian Mid Continent Eagle Ford Marcellus / Utica Haynesville / Fayetteville Bakken / Niobrara Other (Int'l and GOM) 46% 7% 11% 10% 6% 8% 11% YTD U.S. Land Well Completions by Basin Permian Mid Contine
Slide 9: RPC's Evolution Throughout the Oilfield Cycles
RPC’s Evolution Throughout the Oilfield Cycles Pre - 1973 • Patterson Services founded in Houma, LA as a rental tool, mud service, and oilfield trucking company after World War II. • Rollins, Inc. acquired Patterson in 1973. 1970’s – 1984 • Cudd Pressure Control founded in Woodward, OK. • Cudd acqui
Slide 10: RPC's Approach to Managing the Cyclicality of the Oilfield
RPC’s Approach to Managing the Cyclicality of the Oilfield • Conservative financial management • Debt - free balance sheet • Preference for organic growth in existing services rather than acquisitions • Cautious approach to new geographic markets • Working capital management and cost control focus •
Slide 11: RPC Dividend History
RPC Dividend History $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 Annual Per Share Dividends • ≈ $688 million in cash dividends issued during 2001 – 2022 period. • RPC’s dividend history sets it apart from most oilfield services peers. • Reinstated a cash dividend in 3Q 2022. * Dividend was reinstated
Slide 12: RPC's Approach to ESG
RPC’s Approach to ESG Investment Benefits / Highlights Water recycling services • Provided to E&P customers in the Permian Basin Reduces the requirement for fresh or aquifer - sourced water at oilfield job sites. Annually recycles 25 million barrels of produced water for frac operations and treats 2
Slide 13: Pressure Pumping
• 9 active horizontal fleets and 2 active vertical fleets operating during Q3 2022. • Permian Basin, Mid - Continent market presence. • Currently refurbishing a legacy fleet with ESG - friendly upgrades. • Additional legacy fleet could be reactivated 2H 2022. • New replacement fleet ordered for 1H 2
Slide 14: Downhole Tools
• ThruTubing Solutions (TTS) provides services and tools used in unconventional completion operations • Specialization in efficiently executing key services required in multi - stage completions in unconventional wells • Proprietary tools and technology • Strong market share • 22% of consolidated 3
Slide 15: Coiled Tubing
• 17 units of 2 3/8” or greater in diameter for completion applications. Meaningful market share in this category • 12 smaller units for workover • 8% of consolidated third quarter 2022 revenue Coiled Tubing (Shown above: One of RPC’s largest coiled tubing units going to the field for the first time
Slide 16: Other Service Lines
• Nitrogen – 2% of 3 rd quarter revenue. Used in a variety of oilfield applications • Rental Tools – 4% of 3 rd quarter revenue • Well Control – 1% of 3 rd quarter revenue. Worldwide provider of blowout and other well control services • Snubbing / Hydraulic Workover – 2% of 3 rd quarter revenue. Leg
Slide 17: Non-GAAP EBITDA Reconciliation
Non - GAAP EBITDA Reconciliation RPC has used the non - GAAP financial measure of earnings before interest, taxes, depreciation and amortization (EBITDA) in this d iscussion. EBITDA should not be considered in isolation or as a substitute for net income (loss) or other performance measures prepared
Slide 18: Contact Us
Operational Headquarters : The Woodlands, Texas Corporate Headquarters: 2801 Buford Highway NE Suite 300 Atlanta, GA 30329 (404) 321 - 2140 IRDept@RPC.net RPC.net CONTACT US