RPC Posts Q3 Loss on $74.5 Million Pintail Impairment

RPC Inc. reported a third-quarter 2026 GAAP net loss after recording a $74.5 million non-cash impairment tied to its Pintail wireline business, where persistent pricing weakness, lower activity and cost pressure outweighed stronger results across several other service lines.

Revenue increased 1% from the second quarter to $467.7 million. The oilfield services company posted a net loss of $41.9 million, or $0.20 per share, compared with net income of $12.1 million in the prior quarter. Its GAAP net loss margin was 9.0%, versus a 2.6% net income margin in the second quarter.

Excluding impairment charges and other adjustments, profitability improved sequentially. Adjusted net income rose to $22.8 million from $17.8 million, while adjusted diluted earnings were $0.10 per share and the adjusted net income margin was 4.9%. Adjusted EBITDA increased to $71.5 million from $66.0 million, with the adjusted EBITDA margin expanding to 15.3% from 14.3%.

Diversified services offset wireline weakness

RPC said its Technical Services segment benefited from double-digit revenue growth at Cudd Pressure Control’s coiled tubing, nitrogen and snubbing operations. Those gains were partly offset by lower revenue at Pintail, the wireline business acquired in April 2025.

Support Services revenue increased 3% sequentially, led by a 7% increase at Patterson Rental Tools. Management said improved profitability across much of the portfolio demonstrated the value of RPC’s diversified service offering.

The company has been shifting its business mix toward less capital-intensive service lines with broader customer and geographic exposure. Based on pro forma 2025 revenue, pressure pumping accounted for 28% of the portfolio, wireline 25%, downhole tools 23%, coiled tubing 9%, cementing 6% and other services 8%. More than half of revenue was generated in the Permian Basin.

Pressure pumping remains RPC’s most capital-intensive and volatile operation. The company said excess industry capacity has intensified price competition, and it has chosen to idle equipment rather than deploy assets on projects offering inadequate returns. RPC operates the equivalent of 11 horizontal fleets, including three Tier 4 dual-fuel fleets, and plans to continue replacing legacy Tier 2 diesel equipment without adding capacity. It is also considering partnerships, joint ventures or outsourcing arrangements to offer electric fleets.

Operating priorities and capital allocation

Management said drilling and completion activity had improved during the year, supporting higher customer activity in several service lines. Current oil prices were contributing to a more favorable operating environment, according to the presentation, although labor, trucking and fuel inflation continued to pressure costs.

RPC’s strategic priorities include improving margins, increasing operational scale, expanding higher-return service lines and strengthening its customer mix. The company is evaluating staffing relative to expected activity, locations with weak financial performance, potential sales of non-core real estate and possible divestitures of small non-core service lines.

It also intends to pursue acquisitions that can broaden its basin exposure, rebalance its service portfolio or add scale. RPC identified cementing, coiled tubing, downhole tools and selected other services as areas with potential acquisition opportunities, while maintaining a conservative approach to leverage and liquidity.

The board declared a regular quarterly cash dividend of $0.04 per share, payable Dec. 10, 2026, to shareholders of record at the close of business on Nov. 10. RPC said its capital-allocation framework balances organic investment and acquisitions with dividends and opportunistic share repurchases.

Risks remain centered on pricing and costs

The Pintail impairment highlights continuing uncertainty in wireline, including the possibility that pricing, activity and operating performance may not meet the company’s projections and could require additional impairments. Other disclosed risks include changes in oil and natural-gas prices, customer capital spending, tariffs, competitive pressure, adverse weather, geopolitical disruptions and further increases in labor, transportation and fuel costs.