RPC, Inc. released its unaudited results for the fourth quarter and full year ended December 31, 2024. In the fourth quarter of 2024, revenues decreased 1% sequentially to $335.4 million. Net income was $12.8 million, down 32% sequentially, and diluted earnings per share (EPS) was $0.06, while net income margin decreased 180 basis points to 3.8%. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was $46.1 million, down 17% sequentially, and adjusted EBITDA margin decreased 270 basis points to 13.7%.
For the full year 2024, revenues decreased 13% versus the prior year to $1.4 billion. Net income was $91.4 million and diluted EPS was $0.43, with a net income margin of 6.5%. Adjusted EBITDA was $233.0 million, and adjusted EBITDA margin was 16.5%. The company remained debt-free, paid $34.4 million in dividends, and repurchased $9.9 million of common stock in 2024.
In terms of industry data, the U.S. rig count averaged 586 in the fourth quarter of 2024, remaining unchanged from the previous quarter. The average oil price decreased by 7.8% to $70.59 per barrel, and the average natural gas price increased by 15.7% to $2.43 per thousand cubic feet, all compared to the previous quarter.
Segment operations showed that technical services revenues were essentially unchanged at $314.6 million, while operating income decreased to $10.6 million, down 35% sequentially. Support services revenues were $20.7 million, down 14%, and operating income was $2.6 million, down 51% sequentially.
Cash and cash equivalents were $326.0 million at the end of 2024, with no outstanding borrowings under the company’s $100 million revolving credit facility. Net cash provided by operating activities and free cash flow were $349.4 million and $129.5 million, respectively, in 2024.
In terms of capital allocation, dividends totaled $34.4 million in 2024, and the board of directors declared a regular quarterly cash dividend of $0.04 per share. Share repurchases totaled $9.9 million in 2024, including $7.5 million of buyback program repurchases.
RPC, Inc. remains optimistic about its new products and services gaining traction and plans to continue investing in innovation across the business, with projected capital spending in the range of $150 million to $200 million in 2025. Acquisitions to expand the business remain a key strategic priority.
The company will hold a conference call to discuss these results on January 30, 2025, at 9:00 a.m. ET. Following these announcements, the company's shares moved -4.1%, and are now trading at a price of $6.16. For the full picture, make sure to review RPC's 8-K report.
