Oilfield service provider RPC misses Q2 revenue estimates on weaker activity

Overview

• RPC Q2 revenue rises 26% sequentially, misses analyst expectations, per LSEG data

• Adjusted EPS for Q2 misses consensus, impacted by pressure pumping challenges

• Co acquired Pintail, boosting wireline revenues and expanding customer base

Outlook

• RPC sees oilfield services market challenged by lower commodity prices

• Co says it will focus on full cycle returns

Result Drivers

• PINTAIL ACQUISITION - Acquisition of Pintail Completions added $98.9 mln to Q2 revenue, boosting wireline revenues

• PRESSURE PUMPING CHALLENGES - Weaker activity, pricing pressure, and weather impacts led to revenue decline in pressure pumping service line

• DIVERSIFIED RESILIENCE - Co's diversified service lines and customer base provided resilience amid lower commodity prices and macro uncertainties

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the oil related services and equipment peer group is "buy."

• Wall Street's median 12-month price target for RPC Inc is $5.50, about 9.1% above its July 23 closing price of $5.00

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nPnbHYhGYa