Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 16, 2024 | Jun. 30, 2023 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity File Number | 1-8726 | ||
Entity Registrant Name | RPC, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 58-1550825 | ||
Entity Address, Address Line One | 2801 BUFORD HIGHWAY NE, SUITE 300 | ||
Entity Address, City or Town | ATLANTA | ||
Entity Address, State or Province | GA | ||
Entity Address, Postal Zip Code | 30329 | ||
City Area Code | 404 | ||
Local Phone Number | 321-2140 | ||
Title of 12(b) Security | COMMON STOCK, $0.10 PAR VALUE | ||
Trading Symbol | RES | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 216,408,974 | ||
Entity Common Stock, Shares Outstanding | 215,445,398 | ||
Auditor Name | GRANT THORNTON LLP | ||
Auditor Location | Atlanta, Georgia | ||
Auditor Firm ID | 248 | ||
Entity Central Index Key | 0000742278 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 223,310 | $ 126,424 |
Accounts receivable, net of allowance for credit losses of $7,109 in 2023 and $7,078 in 2022 | 324,915 | 416,568 |
Inventories | 110,904 | 97,107 |
Income taxes receivable | 52,269 | 42,403 |
Prepaid expenses | 12,907 | 17,753 |
Other current assets | 2,768 | 3,086 |
Total current assets | 727,073 | 703,341 |
Property, plant and equipment, less accumulated depreciation of $810,933 in 2023 and $775,334 in 2022 | 435,139 | 333,093 |
Operating lease right-of-use assets | 24,537 | 28,864 |
Finance lease right-of-use assets | 1,036 | |
Goodwill | 50,824 | 32,150 |
Other intangibles, net | 12,825 | 1,084 |
Other assets | 35,411 | 30,481 |
Total assets | 1,286,845 | 1,129,013 |
LIABILITIES | ||
Accounts payable | 85,036 | 115,213 |
Accrued payroll and related expenses | 30,956 | 33,161 |
Accrued insurance expenses | 5,340 | 3,232 |
Accrued state, local and other taxes | 4,461 | 4,296 |
Income taxes payable | 275 | 499 |
Unearned revenue | 15,743 | |
Pension liabilities | 9,610 | |
Current portion of operating lease liabilities | 7,367 | 10,728 |
Current portion of finance lease liabilities and finance obligations | 375 | |
Accrued expenses and other liabilities | 2,304 | 1,864 |
Total current liabilities | 151,857 | 178,603 |
Long-term accrued insurance expenses | 10,202 | 7,149 |
Long-term retirement plan liabilities | 23,724 | 23,106 |
Deferred income taxes | 51,290 | 37,473 |
Long-term operating lease liabilities | 18,600 | 19,517 |
Long-term finance lease liabilities | 819 | |
Other long-term liabilities | 7,840 | 5,430 |
Total liabilities | 264,332 | 271,278 |
Commitments and contingencies (Note 16) | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock, $0.10 par value, 1,000,000 shares authorized, none issued | ||
Common stock, $0.10 par value, 349,000,000 shares authorized, 215,026,458 and 216,609,191 shares issued and outstanding in 2023 and 2022, respectively | 21,502 | 21,661 |
Capital in excess of par value | 0 | 0 |
Retained earnings | 1,003,380 | 856,013 |
Accumulated other comprehensive loss | (2,369) | (19,939) |
Total stockholders' equity | 1,022,513 | 857,735 |
Total liabilities and stockholders' equity | $ 1,286,845 | $ 1,129,013 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
CONSOLIDATED BALANCE SHEETS | ||
Allowance for credit losses | $ 7,109 | $ 7,078 |
Accumulated depreciation | $ 810,933 | $ 775,334 |
Preferred stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized (in shares) | 349,000,000 | 349,000,000 |
Common stock, shares issued (in shares) | 215,026,458 | 216,609,191 |
Common stock, shares outstanding (in shares) | 215,026,458 | 216,609,191 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CONSOLIDATED STATEMENTS OF OPERATIONS | |||
Revenues | $ 1,617,474 | $ 1,601,762 | $ 864,929 |
Cost of revenues (exclusive of depreciation and amortization shown separately below) | 1,089,519 | 1,088,115 | 663,262 |
Selling, general and administrative expenses | 165,940 | 148,573 | 123,572 |
Pension settlement charges | 18,286 | 2,921 | |
Depreciation and amortization | 108,123 | 83,017 | 72,686 |
Gain on disposition of assets, net | (9,344) | (8,804) | (10,882) |
Operating income | 244,950 | 287,940 | 16,291 |
Interest expense | (341) | (614) | (1,929) |
Interest income | 8,599 | 1,171 | 59 |
Other income, net | 3,035 | 1,135 | 2,027 |
Income before income taxes | 256,243 | 289,632 | 16,448 |
Income tax provision | 61,130 | 71,269 | 9,231 |
Net income | $ 195,113 | $ 218,363 | $ 7,217 |
Earnings per share | |||
Basic (in dollars per share) | $ 0.90 | $ 1.01 | $ 0.03 |
Diluted (in dollars per share) | 0.90 | 1.01 | $ 0.03 |
Dividends paid per share (in dollars per share) | $ 0.16 | $ 0.04 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||
Net income | $ 195,113 | $ 218,363 | $ 7,217 |
Other comprehensive income: | |||
Pension settlement and adjustment, net of tax | 17,307 | 764 | (2,890) |
Foreign currency translation | 263 | 5 | (112) |
Comprehensive income | $ 212,683 | $ 219,132 | $ 4,215 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total |
Balance at Dec. 31, 2020 | $ 21,495 | $ 627,778 | $ (17,706) | $ 631,567 | |
Balance (in shares) at Dec. 31, 2020 | 214,951,000 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Stock issued for stock incentive plans, net | $ 82 | $ 6,494 | 6,576 | ||
Stock issued for stock incentive plans, net (in shares) | 819,000 | ||||
Stock purchased and retired | $ (14) | (6,494) | 5,941 | (567) | |
Stock purchased and retired (in shares) | (141,000) | ||||
Net income | 7,217 | 7,217 | |||
Pension adjustment, net of taxes | (2,890) | (2,890) | |||
Foreign currency translation | (112) | (112) | |||
Balance at Dec. 31, 2021 | $ 21,563 | 640,936 | (20,708) | 641,791 | |
Balance (in shares) at Dec. 31, 2021 | 215,629,000 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Stock issued for stock incentive plans, net | $ 114 | 6,261 | 6,375 | ||
Stock issued for stock incentive plans, net (in shares) | 1,139,000 | ||||
Stock purchased and retired | $ (16) | (6,261) | 5,359 | (918) | |
Stock purchased and retired (in shares) | (159,000) | ||||
Net income | 218,363 | 218,363 | |||
Pension settlement and adjustment, net of tax | 764 | 764 | |||
Foreign currency translation | 5 | 5 | |||
Dividends | (8,645) | (8,645) | |||
Balance at Dec. 31, 2022 | $ 21,661 | 856,013 | (19,939) | $ 857,735 | |
Balance (in shares) at Dec. 31, 2022 | 216,609,000 | 216,609,191 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Stock issued for stock incentive plans, net | $ 114 | 7,767 | $ 7,881 | ||
Stock issued for stock incentive plans, net (in shares) | 1,143,000 | ||||
Stock purchased and retired | $ (273) | $ (7,767) | (13,184) | (21,224) | |
Stock purchased and retired (in shares) | (2,726,000) | ||||
Net income | 195,113 | 195,113 | |||
Pension settlement and adjustment, net of tax | 17,307 | 17,307 | |||
Foreign currency translation | 263 | 263 | |||
Dividends | (34,562) | (34,562) | |||
Balance at Dec. 31, 2023 | $ 21,502 | $ 1,003,380 | $ (2,369) | $ 1,022,513 | |
Balance (in shares) at Dec. 31, 2023 | 215,026,000 | 215,026,458 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
OPERATING ACTIVITIES | |||
Net income | $ 195,113 | $ 218,363 | $ 7,217 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 108,123 | 83,017 | 72,686 |
Stock-based compensation expense | 7,881 | 6,375 | 6,576 |
Gain on disposition of assets, net | (9,344) | (8,804) | (10,882) |
Deferred income tax provision | 8,647 | 19,496 | 4,888 |
Pension settlement charges | 18,286 | 2,921 | |
Other non-cash adjustments | 126 | 647 | (180) |
(Increase) decrease in assets: | |||
Accounts receivable | 104,574 | (157,894) | (91,082) |
Income taxes receivable | (9,866) | 16,101 | 24,439 |
Inventories | (12,341) | (18,413) | 3,951 |
Prepaid expenses | 5,233 | (7,980) | (650) |
Other current assets | 311 | 406 | 90 |
Other non-current assets | (1,285) | 9,306 | (1,170) |
Increase (decrease) in liabilities: | |||
Accounts payable | (34,519) | 35,759 | 32,900 |
Income taxes payable | (224) | (157) | (459) |
Unearned Revenue | 15,743 | ||
Accrued payroll and related expenses | (2,223) | 17,864 | (3,080) |
Pension liabilities | (5,419) | ||
Accrued insurance expenses | 2,108 | (6,897) | 4,640 |
Accrued state, local and other taxes | 165 | 2,391 | (883) |
Other accrued expenses | (5,732) | (3,703) | (4,061) |
Pension and retirement plan liabilities | 618 | (4,589) | (1,065) |
Long-term accrued insurance expenses | 3,053 | (4,621) | (52) |
Other long-term liabilities | 5,735 | 1,698 | 3,896 |
Net cash provided by operating activities | 394,763 | 201,286 | 47,719 |
INVESTING ACTIVITIES | |||
Capital expenditures | (181,005) | (139,552) | (67,645) |
Proceeds from sale of assets | 18,091 | 15,837 | 20,014 |
Purchase of business | (78,798) | ||
Net cash used for investing activities | (241,712) | (123,715) | (47,631) |
FINANCING ACTIVITIES | |||
Payment of dividends | (34,562) | (8,645) | |
Cash paid for common stock purchased and retired | (21,088) | (918) | (567) |
Cash paid for finance lease and finance obligations | (515) | (24,017) | (1,584) |
Net cash used for financing activities | (56,165) | (33,580) | (2,151) |
Net increase (decrease) in cash and cash equivalents | 96,886 | 43,991 | (2,063) |
Cash and cash equivalents at beginning of period | 126,424 | 82,433 | 84,496 |
Cash and cash equivalents at end of period | 223,310 | 126,424 | 82,433 |
Supplemental cash flows disclosure: | |||
Income tax payments, net | 62,226 | 35,809 | (20,903) |
Interest paid | 166 | 170 | 166 |
Supplemental disclosure of noncash investing activities: | |||
Capital expenditures included in accounts payable | $ 9,036 | $ 9,334 | $ 4,282 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
RECENT ACCOUNTING STANDARDS | |
Significant Accounting Policies | Note 1: Significant Accounting Policies Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of RPC, Inc. and its wholly-owned subsidiaries (RPC or the Company). All significant intercompany accounts and transactions have been eliminated. Certain prior year amounts have been reclassified to conform to the presentation in the current year. Common Stock RPC is authorized to issue 349,000,000 shares of common stock, $0.10 par value. Holders of common stock are entitled to receive dividends when, as, and if declared by the Board of Directors out of legally available funds. Each share of common stock is entitled to one vote on all matters submitted to a vote of stockholders. Holders of common stock do not have cumulative voting rights. In the event of any liquidation, dissolution or winding up of the Company, holders of common stock are entitled to ratable distribution of the remaining assets available for distribution to stockholders. Preferred Stock RPC is authorized to issue up to 1,000,000 shares of preferred stock, $0.10 par value. As of December 31, 2023, there were no shares of preferred stock issued. The Board of Directors is authorized, subject to any limitations prescribed by law, to provide for the issuance of preferred stock as a class without series or, if so determined from time to time, in one or more series, and by filing a certificate pursuant to the applicable laws of the state of Delaware and to fix the designations, powers, preferences and rights, exchangeability for shares of any other class or classes of stock. Any preferred stock to be issued could rank prior to the common stock with respect to dividend rights and rights on liquidation. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates are used in the determination of the credit loss allowance, income taxes, goodwill and other impairment assessments, accrued insurance expenses and acquisition of business. Revenues RPC recognizes revenues from contracts with its customers based on the amount of consideration it receives in exchange for the services provided. See note of the consolidated financial statements titled Revenues for additional information. Concentration of Credit Risk Substantially all of the Company’s customers are engaged in the oil and gas industry. This concentration of customers may impact overall exposure to credit risk, either positively or negatively, in that customers may be similarly affected by changes in economic and industry conditions. There were no customers in 2023 that accounted for 10% or more of revenues. RPC provided oilfield services to several hundred customers during each of the past three years. One of our customers, a private exploration and production company, accounted for approximately 11% of the Company’s revenues in 2022. There were no other customers in 2022 and no customers in 2021 exceeding 10% of revenues. In addition, there was one customer that accounted for approximately 10% of accounts receivable as of December 31, 2023. There were no other customers as of December 31, 2023, and no customers as of December 31, 2022, that accounted for 10% or more of accounts receivable. Cash and Cash Equivalents Highly liquid investments with original maturities of three months or less when acquired are considered to be cash equivalents. The Company maintains its cash in bank accounts which, at times, may exceed federally insured limits. RPC maintains cash equivalents and investments in one or more large financial institutions, and RPC’s policy restricts investment in any securities rated less than investment grade by national rating services. Investments Investments classified as available-for-sale securities are stated at their fair values, with all gains and losses included in other income. The Company recorded gains on its available-for-sale securities of $18 thousand in 2023, $107 thousand in 2022, and $65 thousand in 2021. The Securities that are held in the non-qualified Supplemental Executive Retirement Plan (SERP) are classified as trading. See note titled Employee Benefit Plans for further information regarding the SERP. The change in fair value of trading securities is presented as compensation cost in selling, general and administrative expenses on the consolidated statements of operations. Management determines the appropriate classification of investments at the time of purchase and re-evaluates such designations as of each balance sheet date. Accounts Receivable The majority of the Company’s accounts receivable is due principally from major and independent oil and natural gas exploration and production companies. Credit is extended based on evaluation of a customer’s financial condition and, generally, collateral is not required. Accounts receivable are considered past due after 60 days Credit Loss Allowance for Accounts Receivable Accounts receivable are carried at the amounts due from customers, reduced by an allowance for estimated amounts that may not be collectible in the future. The estimated credit loss allowance is based on an evaluation of industry trends, financial condition of customers, historical write-off experience, current economic conditions, and in the case of international customers, judgments about the economic and political environment of the related country and region. Accounts receivable balances are written off when determined to be uncollectible and recoveries of amounts previously written off are recorded when collected. Inventories Inventories, which consist principally of (i) raw materials and supplies that are consumed providing services to the Company’s customers, (ii) spare parts for equipment used in providing these services and (iii) components and attachments for manufactured equipment used in providing services, are recorded at the lower of cost or net realizable value. Cost is determined using the first-in, first-out (FIFO) method or the weighted average cost method. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The Company regularly reviews inventory quantities on hand and records a write-down for excess or obsolete inventory based primarily on its estimated forecast of product demand, market conditions, production requirements and technological developments. Property, Plant and Equipment Property, plant and equipment, including software costs, are reported at cost less accumulated depreciation and amortization, which is provided on a straight-line basis over the estimated useful lives of the assets. Annual depreciation and amortization expenses are computed using the following useful lives: operating equipment, 3 to 20 years; buildings and leasehold improvements, 15 to 39 years or the life of the lease; furniture and fixtures, 5 to 7 years; software, 5 years; and vehicles, 3 to 5 years. The cost of assets retired or otherwise disposed of and the related accumulated depreciation and amortization are eliminated from the accounts in the year of disposal with the resulting gain or loss credited or charged to income from operations. Expenditures for additions, major renewals, and betterments are capitalized. Expenditures for restoring an identifiable asset to working condition or for maintaining the asset in good working order constitute repairs and maintenance and are expensed as incurred. RPC records impairment losses on long-lived assets used in operations when events and circumstances indicate that the assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amount of those assets. The Company periodically reviews the values assigned to long-lived assets, such as property, plant and equipment, to determine if any impairments should be recognized. There was no impairment recorded during 2023, 2022 or 2021. Goodwill Goodwill represents the excess of the purchase price over the fair value of net assets of businesses acquired. The following is a summary of the changes in Goodwill by reporting unit: (in thousands) Technical Services Support Services Total Beginning balance at December 31, 2022 $ 30,992 $ 1,158 $ 32,150 Business acquisition (see note titled Business Acquisition) 18,674 — 18,674 Ending balance at December 31, 2023 $ 49,666 $ 1,158 $ 50,824 Goodwill is reviewed annually, or more frequently, if events occur or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount, for impairment. In both 2022 and 2023 , due to improved industry conditions, its reporting units’ performance and public market indications of value, the Company elected to perform a qualitative assessment of its goodwill and concluded that it is more likely than not that fair value of each of its reporting units is more than the carrying amounts, including goodwill. Based on these assessments the Company concluded that the fair value of its reporting units exceeded their carrying amounts and therefore no impairment of goodwill occurred during the years ended December 31, 2023, and 2022. Advertising Advertising expenses are charged to expense during the period in which they are incurred. Advertising expenses totaled $2.4 million in 2023, $2.0 million in 2022, and $1.1 million in 2021. Insurance Expenses RPC self-insures, up to certain policy-specified limits, certain risks related to general liability, workers’ compensation, vehicle and equipment liability, and employee health insurance plan costs. The estimated cost of claims under these self-insurance programs is estimated and accrued as the claims are incurred (although actual settlement of the claims may not be made until future periods) and may subsequently be revised based on developments relating to such claims. The portion of these estimated outstanding claims expected to be paid more than one year in the future is classified as long-term accrued insurance expenses. Income Taxes Deferred tax liabilities and assets are determined based on the difference between the financial and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The Company establishes a valuation allowance against the carrying value of deferred tax assets when the Company determines that it is more likely than not that the asset will not be realized through future taxable income. Defined Benefit Pension Plan The Company’s multiemployer Retirement Income Plan (Plan), a trusteed defined benefit pension plan provided monthly benefits to its participants based on the various provisions contained therein. The Company initiated actions to terminate the Plan in 2021 and it was fully terminated in 2023. See note titled Employee Benefit Plans for details on the termination and related settlement losses. Share Repurchases The Company records the cost of share repurchases in stockholders’ equity as a reduction to common stock to the extent of par value of the shares acquired and the remainder is allocated to capital in excess of par value and retained earnings if capital in excess of par value is depleted. The Company tracks capital in excess of par value on a cumulative basis for each reporting period and discloses the excess over capital in excess of par value as part of stock purchased and retired in the consolidated statements of stockholders’ equity. Earnings per Share Basic and diluted earnings per share are computed by dividing net income by the weighted average number of shares outstanding during the respective periods. In addition, the Company has periodically issued share-based payment awards that contain non-forfeitable rights to dividends and are therefore considered participating securities. See note titled Employee Benefit Plans for further information on restricted stock granted to employees. Restricted shares of common stock (participating securities) outstanding and a reconciliation of weighted average shares outstanding is as follows: (in thousands) 2023 2022 2021 Net income available for stockholders $ 195,113 $ 218,363 $ 7,217 Less: Adjustments for earnings attributable to participating securities (3,099) (3,197) (89) Net income used in calculating earnings per share $ 192,014 $ 215,166 $ 7,128 Weighted average shares outstanding (including participating securities) 216,472 216,518 215,646 Adjustment for participating securities (3,545) (3,187) (2,656) Shares used in calculating basic and diluted earnings per share 212,927 213,331 212,990 Fair Value of Financial Instruments The Company’s financial instruments consist primarily of cash and cash equivalents, accounts receivable, investments, accounts payable, and debt. The carrying value of cash and cash equivalents, accounts receivable and accounts payable approximate their fair value due to the short-term nature of such instruments. The Company’s investments are classified as available-for-sale securities with the exception of investments held in the non-qualified SERP which are classified as trading securities. All of these securities are carried at fair value in the accompanying consolidated balance sheets. See note titled Fair Value Disclosures for additional information. Stock-Based Compensation Stock-based compensation expense is recognized for all share-based payment awards, net of estimated forfeitures. Thus, compensation cost is amortized for those shares expected to vest on a straight-line basis over the requisite service period of the award. See note titled Employee Benefit Plans for additional information. Leases The Company determines at contract inception if an arrangement is a lease or contains a lease based on whether the Company obtains the right to control the use of specifically identifiable property, plant and equipment for a period of time in exchange for consideration. The Company’s lease population consists primarily of real estate including its corporate headquarters, office space and warehouses, in addition to vehicles, storage containers and office equipment. The Company’s population of month-to-month real estate leases have been classified as short-term leases. The Company has elected not to separate non-lease components from lease components for its leases. Variable lease payments relate primarily to taxes and insurance on real estate contracts and are recognized as expense when incurred. Recent Accounting Pronouncements The Financial Accounting Standards Board issued the following applicable Accounting Standards Updates (ASU): Recently Adopted Accounting Standards: ● ACCOUNTING STANDARDS UPDATE (ASU) No. 2021-08: Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers: The amendments in this ASU address diversity in practice related to the accounting for revenue contracts with customers acquired in a business combination, by adopting guidance requiring an acquirer to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. At the acquisition date, an acquirer would recognize and measure the acquired contract assets and contract liabilities in the same manner that they were recognized and measured in the acquiree's financial statements before the acquisition. The Company adopted these provisions in the second quarter of 2023 prospectively for future acquisitions. For the acquisition completed effective in the third quarter of 2023, the Company has recognized the contract assets and contract liabilities in the same manner as the acquiree. See note titled Business Acquisition for additional information. The adoption did not have a material impact on the Company’s consolidated financial statements . Recently Issued Accounting Standards Not Yet Adopted: ● ASU No. 2023-07: Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures: The amendments in this ASU require an entity to disclose the title and position of the Chief Operating Decision Maker (CODM) and the significant segment expenses that are regularly provided to the CODM and included within each reported measure of segment profit or loss. These amendments are effective for annual disclosures beginning in 2024 and interim disclosures beginning in the first quarter of 2025, with early adoption permitted. These amendments are effective retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the impact of adopting these provisions on its consolidated financial statements. ● ASU No. 2023-09: Income Taxes (Topic 740): Improvements to Income Tax Disclosures: The amendments in this ASU require an entity to include consistent categories and greater disaggregation of information in the rate reconciliation and income taxes paid, disaggregated by jurisdiction. These amendments are effective for annual disclosures beginning in 2025, with early adoption permitted for annual financial statements that have not yet been issued. The Company is currently evaluating the impact of adopting these provisions on its consolidated financial statements . |
Business Acquisition
Business Acquisition | 12 Months Ended |
Dec. 31, 2023 | |
BUSINESS ACQUISITIONS | |
Business Acquisition | Note 2: Business Acquisition Effective July 1, 2023 (Effective Date), the Company completed its acquisition of all of the outstanding equity interests in Spinnaker Oilwell Services, LLC (Spinnaker), pursuant to a Merger Agreement (Merger Agreement) with Catapult Energy Services Group, LLC, as the representative of the Sellers. Spinnaker, headquartered in Oklahoma City, Oklahoma, is a leading provider of oilfield cementing services in the Permian and Mid-Continent basins. Spinnaker operates two facilities located in El Reno, Oklahoma and Hobbs, New Mexico and maintains 18 full-service cementing spreads. This acquisition significantly expanded RPC's cementing business from its presence in South Texas to basins in which it currently provides other services. Spinnaker is included in our Technical Services Segment. The purchase price was $79.3 million for 100% of Spinnaker’s equity, and consisted of approximately $76.8 million in cash, a $2.0 million pay-off of finance obligations together with an assumption of $518 thousand of finance obligations. The Merger Agreement included a post-closing adjustment window for an agreed-upon level of Spinnaker’s working capital, as well as other usual and customary items, which is reflected in the purchase price allocation below and was finalized during the fourth quarter of 2023. Acquisition-related transaction costs of $767 thousand were recorded during the year ended December 31, 2023, and included in Selling, general and administrative expenses in the Consolidated Statements of Operations. The acquisition was funded with cash on hand. The acquisition was accounted for as a business combination with the assets acquired and liabilities assumed measured at their fair values as of the acquisition date, primarily using Level 3 inputs. The acquisition consideration allocation below is the final fair value. The excess of the acquisition consideration over the estimated fair values of the acquired assets and assumed liabilities has been assigned to goodwill which is primarily attributable to expected revenue synergies. During the fourth quarter, we finalized the valuation of the acquired assets and closed the measurement period. Fair Value (in thousands) as of July 1, 2023 Accounts receivable $ 12,836 Inventories 1,373 Prepaid and other current assets 384 Accounts payable (4,499) Property, plant and equipment 37,374 Operating lease right-of-use assets 46 Current portion of operating lease liabilities (31) Long-term operating lease liabilities (15) Finance lease right-of-use assets 1,165 Current portion of finance lease liabilities (247) Long-term finance lease liabilities (944) Goodwill 18,674 Other intangibles 13,200 Total consideration 79,316 Less: Assumption of finance obligations (518) Total cash consideration $ 78,798 The fair value of receivables acquired approximates the gross contractual value. The contractual amount not expected to be collected is immaterial. The fair value of acquired inventory was based on the lower of cost and net realizable value, with cost determined using the weighted-average cost method. Property, plant and equipment is comprised of buildings and leasehold improvements, machinery and equipment, vehicles, land, and information technology. The estimated fair value was determined using the cost and market approaches. The Company assumed the following leases and obligations as of the Effective Date - a finance lease for certain land and facilities with a remaining lease term of approximately 4.5 years; three spreads under failed sale and lease back arrangements with varying expiration dates; and an operating lease for an office space with a remaining lease term of approximately 1.5 years. There were no favorable or unfavorable market terms for the leases. Details regarding the lease costs and remaining lease obligations on the existing leases related to Spinnaker have been included in the footnote titled Leases. The obligations related to failed sale and leaseback arrangements are being reported as part of current portion of finance lease liabilities and finance obligations. Acquired intangible assets include customer relationships, trade names and trademarks. Intangible assets were valued using the multi-period excess earnings and relief-from-royalty methods, both forms of the income approach which considers a forecast of future cash flows generated from the use of each asset. The following table shows the fair values assigned to identifiable intangible assets: Weighted-Average (in thousands) Fair Value Amortization Period (Years) Customer Relationships $ 10,000 10 Trade Names and Trademarks 3,200 10 Total Amortizable Intangible Assets $ 13,200 Revenues and net income of Spinnaker included in the Company's Consolidated Statement of Operations from the acquisition date are as follows: (in thousands) Six months ended December 31, 2023 Revenues $ 44,830 Net income 4,727 Spinnaker’s duration of contracts is typically a day or less and their contract assets and liabilities are measured similar to RPC’s other businesses. The supplemental pro forma financial information has been prepared using the acquisition method of accounting and is based on the historical financial information of Spinnaker and RPC. This proforma financial information does not necessarily represent what the combined company’s revenues or results of operations would have been had the acquisition been completed on January 1, 2022, nor do they intend to be a projection of future operating results of the combined company. It also does not reflect any operating efficiencies or potential cost savings that might be achieved from synergies of combining Spinnaker and RPC. The following table provides unaudited supplemental pro forma financial information as if the acquisition had occurred on January 1, 2022. (in thousands) 2023 2022 Revenues $ 1,669,231 $ 1,689,559 Net income 204,222 234,284 |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2023 | |
REVENUES | |
Revenues | Note 3: Revenues Accounting Policy RPC’s contract revenues are generated principally from providing oilfield services. These services are based on mutually agreed upon pricing with the customer prior to the services being delivered and given the nature of the services, do not include the right of return. Pricing for these services is a function of rates based on the nature of the specific job, with consideration for the extent of equipment, labor, and consumables needed for the job. RPC typically satisfies its performance obligations over time as the services are performed. RPC records revenues based on the transaction price agreed upon with its customers. Sales tax charged to customers is presented on a net basis within the consolidated statements of operations and therefore excluded from revenues. Nature of services RPC provides a broad range of specialized oilfield services to independent and major oil and gas companies engaged in the exploration, production and development of oil gas properties throughout the United States and in selected international markets. RPC manages its business as either (1) services offered on the well site with equipment and personnel (Technical Services) or (2) services and tools offered off the well site (Support Services). For more detailed information about operating segments, see note titled Business Segment and Entity wide Disclosures. RPC contracts with its customers to provide the following services by reportable segment: Technical Services ● Includes pressure pumping, downhole tools services, coiled tubing, cementing, nitrogen, snubbing and other oilfield related services including wireline, well control, fishing and pump down services. Support Services ● Rental tools – RPC rents tools to its customers for use with onshore and offshore oil and gas well drilling, completion and workover activities. ● Other support services include oilfield pipe inspection services, management and storage; well control training; and consulting. Our contracts with customers are generally short-term in nature and generally consist of a single performance obligation – the provision of oilfield services. Payment terms RPC’s contracts with customers state the final terms of the sales, including the description, quantity, and price of each service to be delivered. The Company’s contracts are generally short-term in nature and in most situations, RPC provides services ahead of payment - i.e., RPC has fulfilled the performance obligation prior to submitting a customer invoice. RPC invoices the customer upon completion of the specified services and collection generally occurs between 30 to 60 days after invoicing. As the Company enters into contracts with its customers, it generally expects there to be no significant timing difference between the date the services are provided to the customer (satisfaction of the performance obligation) and the date cash consideration is received. Accordingly, there is no financing component to our arrangements with customers. Significant judgments RPC believes the output method is a reasonable measure of progress for the satisfaction of our performance obligations, which are satisfied over time, as it provides a faithful depiction of (1) our performance toward complete satisfaction of the performance obligation under the contract and (2) the value transferred to the customer of the services performed under the contract. RPC has elected the right to invoice practical expedient for recognizing revenue related to its performance obligations. Disaggregation of revenues See note titled Business Segment and Entity Wide Disclosures for disaggregation of revenue by operating segment and services offered in each of them and by geographic regions. Timing of revenue recognition for each of the periods presented is shown below: (in thousands) 2023 2022 2021 Oilfield services transferred at a point in time $ — $ — $ — Oilfield services transferred over time 1,617,474 1,601,762 864,929 Total revenues $ 1,617,474 $ 1,601,762 $ 864,929 Contract balances Contract assets representing the Company’s rights to consideration for work completed but not billed are included in Accounts receivable, net on the consolidated balance sheets are shown below: December 31, December 31, (in thousands) 2023 2022 Unbilled trade receivables $ 59,831 $ 103,498 Substantially all of the unbilled trade receivables as of December 31, 2023, and December 31, 2022, were invoiced during the following quarter. Unearned revenue Contract liabilities represent the payments received in advance of satisfying the Company’s performance obligation and are recognized over time as the service is performed. For the year ended December 31, 2023, such amounts were $15.7 million and are recorded as Unearned revenue on the Consolidated Balance Sheets. There was |
Depreciation and Amortization
Depreciation and Amortization | 12 Months Ended |
Dec. 31, 2023 | |
DEPRECIATION AND AMORTIZATION | |
Depreciation and Amortization | Note 4: Depreciation and Amortization Depreciation and amortization disclosed in the Consolidated Statements of Operations related to the following components: (in thousands) 2023 2022 2021 Cost of revenues $ 97,685 $ 74,294 $ 63,068 Selling, general and administrative expenses 10,438 8,723 9,618 Total $ 108,123 $ 83,017 $ 72,686 |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2023 | |
Accounts Receivable. | |
Accounts Receivable | Note 5: Accounts Receivable Accounts receivable, net consists of the following: December 31, 2023 2022 (in thousands) Trade receivables: Billed $ 271,515 $ 315,332 Unbilled 59,831 103,498 Other receivables 678 4,816 Total 332,024 423,646 Less: allowance for credit losses (7,109) (7,078) Accounts receivable, net $ 324,915 $ 416,568 Trade receivables relate to revenues generated from equipment and services, for which credit is extended based on our evaluation of the customer’s credit worthiness. Unbilled receivables represent revenues earned but not billed to the customer until future dates, usually within one month. Other receivables consists primarily of net amounts receivable from an agent that operates internationally, as well as amounts due from the favorable resolution of state tax audits and rebates due from suppliers. |
Current Expected Credit Losses
Current Expected Credit Losses | 12 Months Ended |
Dec. 31, 2023 | |
CURRENT EXPECTED CREDIT LOSSES | |
Current Expected Credit Losses | Note 6: Current Expected Credit Losses The Company utilizes an expected credit loss model for valuing its accounts receivable, a financial asset measured at amortized cost. The Company is exposed to credit losses primarily from providing oilfield services. The Company’s expected credit loss allowance for accounts receivable is based on historical collection experience, current and future economic and market conditions and a review of the current status of customers’ account receivable balances. Due to the short-term nature of such receivables, the estimated amount of accounts receivable that may not be collected is based on aging of the accounts receivable balances and the financial condition of customers. Additionally, specific allowance amounts are established to record the appropriate provision for customers that have a higher probability of default. The Company’s monitoring activities include timely account reconciliation, dispute resolution, payment confirmation, consideration of customers’ financial condition and macroeconomic conditions. Balances are written off when determined to be uncollectible and recoveries of amounts previously written off are recorded when collected. The following table provides a roll-forward of the allowance for credit losses that is deducted from the amortized cost basis of accounts receivable to present the net amount expected to be collected: Years Ended December 31, 2023 2022 (in thousands) Beginning balance $ 7,078 $ 6,765 Provision for current expected credit losses 2,656 2,029 Write-offs (2,737) (1,752) Recoveries collected (net of expenses) 112 36 Ending balance $ 7,109 $ 7,078 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2023 | |
INVENTORIES | |
Inventories | Note 7: Inventories Inventories consist of (i) raw materials and supplies that are consumed providing services to the Company’s customers, (ii) spare parts for equipment used in providing these services and (iii) components and attachments for manufactured equipment used in providing services. In the table below, spare parts and components are included as part of raw materials and supplies; tools that are assembled using components are reported as finished goods. Inventories are recorded at the lower of cost or net realizable value. Cost is determined using either the first-in, first-out, or the weighted average cost method. December 31, 2023 2022 (in thousands) Raw materials and supplies $ 109,872 $ 95,384 Finished goods 1,032 1,723 Total inventory $ 110,904 $ 97,107 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment | |
Property, Plant and Equipment | Note 8: Property, Plant and Equipment Property, plant and equipment are presented at cost net of accumulated depreciation and consist of the following: December 31, 2023 2022 (in thousands) Land $ 18,165 $ 17,287 Buildings and leasehold improvements 129,513 120,506 Operating equipment 784,826 683,027 Computer software 19,535 22,194 Furniture and fixtures 5,298 5,480 Vehicles 288,735 259,933 Gross property, plant and equipment 1,246,072 1,108,427 Less: accumulated depreciation (810,933) (775,334) Net property, plant and equipment $ 435,139 $ 333,093 Depreciation expense was $108.1 million in 2023, $83.0 million in 2022, and $72.7 million in 2021. The Company had accounts payable for purchases of property and equipment of $9.0 million as of December 31, 2023, and $9.3 million as of December 31, 2022. The Company transferred inventory to property, plant and equipment totaling $10.9 million in 2023 and $9.9 million in 2022. |
Other Intangibles, net
Other Intangibles, net | 12 Months Ended |
Dec. 31, 2023 | |
OTHER INTANGIBLES, NET | |
Other Intangibles, net | Note 9: Other Intangibles, net Intangible assets are amortized over their legal or estimated useful life. The following table provides a summary of the gross carrying value and accumulated amortization by each major intangible class: 2023 2022 (in thousands) Gross Carrying Amount Accumulated Amortization Gross Accumulated Amortization Finite-lived Intangibles: Customer relationships $ 10,000 $ (500) $ — $ — Trade names and trademarks 3,519 (479) 319 (294) Software licenses 2,202 (1,917) 2,202 (1,143) Patents and technology 300 (300) 300 (300) $ 16,021 $ (3,196) $ 2,821 $ (1,737) During 2023, the Company acquired intangible assets; see note titled Business Acquisition for additional details related to the intangible assets acquired. Amortization expense for each of the periods presented was as follows: Years ended December 31, 2023 2022 2021 (in thousands) Amortization of finite-lived intangible assets $ 1,459 $ 796 $ 27 Estimated future amortization expense based on balances as of December 31, 2023, is as follows: $1.7 million for 2024 2024 2028 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2023 | |
INCOME TAXES | |
INCOME TAXES | Note 10: Income Taxes The following table lists the components of the provision for income taxes: Years ended December 31, 2023 2022 2021 (in thousands) Current provision (benefit): Federal $ 45,146 $ 47,744 $ 4,946 State 6,502 3,164 (1,387) Foreign 835 865 784 Deferred provision: Federal 7,116 14,026 2,287 State 1,531 5,470 2,601 Total income tax provision $ 61,130 $ 71,269 $ 9,231 Reconciliation between the federal statutory rate and RPC’s effective tax rate is as follows: Years ended December 31, 2023 2022 2021 Federal statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 2.1 1.9 2.9 Foreign taxes, net of federal benefit 0.3 0.3 5.1 Tax credits (0.3) (0.1) (3.5) Change in contingencies 0.1 — 8.6 Non-deductible expenses 0.8 0.7 (2.8) Adjustments related to CARES Act — — 3.2 Change in estimated deferred rate — 0.4 10.2 Adjustments related to vesting of restricted stock (0.1) 0.2 7.1 Other — 0.2 4.3 Effective tax rate 23.9 % 24.6 % 56.1 % Significant components of the Company’s deferred tax assets and liabilities are as follows: December 31, 2023 2022 (in thousands) Deferred tax assets: Self-insurance $ 4,303 $ 3,051 Long-term retirement plan 5,101 5,237 State net operating loss carryforwards 1,520 1,960 Allowance for credit losses 1,634 1,757 Stock-based compensation 1,414 2,531 Inventory reserve 3,330 3,290 Lease liability 5,777 6,701 Capitalized research and development 3,066 1,041 Valuation allowance (1,591) (990) All others, net 3,126 2,386 Gross deferred tax assets 27,680 26,964 Deferred tax liabilities: Depreciation (66,784) (51,494) Right of use asset (5,461) (6,397) Goodwill amortization (6,725) (6,546) Gross deferred tax liabilities (78,970) (64,437) Net deferred tax liabilities $ (51,290) $ (37,473) The Company's current intention is to permanently reinvest funds held in our foreign subsidiaries outside of the U.S., with the possible exception of repatriation of funds that have been previously subject to U.S. federal and state taxation or when it would be tax effective through the utilization of foreign tax credits or would otherwise create no additional U.S. tax cost. Total net income tax payments (refunds) were $62.2 million in 2023, $35.8 million in 2022, and $(20.9) million in 2021. As of December 31, 2023, the Company has net operating loss carryforwards recorded related to state income taxes of $31.0 million (gross) that will expire between 2024 and 2042. The Company’s policy is to record interest and penalties related to income tax matters as income tax expense. Accrued interest and penalties were immaterial as of December 31, 2023, and 2022. During 2023, the Company recognized an increase in its liability for unrecognized tax benefits related primarily to current year positions and disclosed as part of other long-term liabilities on the consolidated balance sheet. This liability, if released, would affect our effective rate. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: (in thousands) 2023 2022 Balance at January 1 $ 1,917 $ 1,737 Additions (reductions) based on tax positions related to the current year 337 197 Additions (reductions) for tax positions of prior years (86) (17) Balance at December 31 $ 2,168 $ 1,917 It is reasonably possible that the amount of the unrecognized benefits with respect to the Company’s unrecognized tax positions will increase or decrease in the next 12 months. These changes may be the result of, among other things, expiration of the statute of limitation, or conclusions of examinations or reviews. However, quantification of an estimated range cannot be made at this time. The Company and its subsidiaries are subject to U.S. federal and state income tax in multiple jurisdictions. In many cases, the uncertain tax positions are related to tax years that remain open and subject to examination by the relevant taxing authorities. In general, the Company’s 2020 through 2022 tax years remain open to examination. Additional years may be open to the extent attributes are being carried forward to an open year. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2023 | |
NOTES PAYABLE TO BANKS | |
NOTES PAYABLE TO BANKS | Note 11: Long-Term Debt The Company has a revolving Credit Agreement with Bank of America and four other lenders which provides for a line of credit of up to $100 million, including a $35 million letter of credit sub-facility, and a $35 million swingline sub-facility. The facility contains customary terms and conditions, including restrictions on indebtedness, dividend payments, business combinations and other related items. The revolving credit facility includes a full and unconditional guarantee by the Company's 100% owned domestic subsidiaries whose assets equal substantially all of the consolidated assets of the Company and its subsidiaries. Certain of the Company’s minor subsidiaries are not guarantors. The Credit Agreement’s maturity date is June 22, 2027. The Company executed Amendment No. 6 to its Credit Agreement (the Amendment). This Amendment (1) extends the termination date for revolving loans from July 26, 2023 to June 22, 2027, (2) replaces LIBOR with the Term Secured Overnight Financing Rate (Term SOFR) as an interest rate option in connection with revolving loan borrowings and reduces the applicable rate margins by approximately 25.0 basis points at each pricing level, (3) introduces a 1.00% per annum floor for Base Rate borrowings, and (4) permits the issuance of letters of credit in currencies other than U.S. dollars. Under the Credit Agreement, when RPC’s trailing four quarter adjusted EBITDA (as calculated under the Credit Agreement) is equal to or greater than $50 million: (i) the consolidated leverage ratio cannot exceed 2.50:1.00 and (ii) the debt service coverage ratio must be equal to or greater than 2.00:1.00; otherwise, the minimum tangible net worth must be greater than or equal to $400 million. As of both December 31, 2023, and December 31, 2022, the Company was in compliance with these covenants. Revolving loans under the amended revolving credit facility bear interest at one of the following two rates at the Company’s election: ● Term SOFR; plus, a margin ranging from 1.25% to 2.25% , based on a quarterly consolidated leverage ratio calculation, and an additional SOFR Adjustment ranging from 10 to 30 basis points depending upon maturity length; or ● the Base Rate, which is a fluctuating rate per annum equal to the highest of (a) the Federal Funds Rate plus 0.50% , (b) Bank of America’s publicly announced “prime rate,” and (c) the Term SOFR plus 1.00% , or (d) 1.00% ; in each case plus a margin that ranges from 0.25% to 1.25% based on a quarterly consolidated leverage ratio calculation. In addition, the Company pays an annual fee ranging from 0.20% to 0.30%, based on a quarterly consolidated leverage ratio calculation, on the unused portion of the credit facility. The Company has incurred total loan origination fees and other debt related costs associated with this revolving credit facility. These costs are being amortized to interest expense over the remaining term of the loan, and the remaining net balance of approximately $330 thousand as of December 31, 2023, is classified in non-current other assets. The remaining net balance of these costs was $257 thousand as of December 31, 2022. As of December 31, 2023, RPC had no outstanding borrowings under the revolving credit facility, and letters of credit outstanding relating to self-insurance programs and contract bids totaled $16.6 million; therefore, a total of $83.4 million of the facility was available. Interest incurred, which includes facility fees on the unused portion of the revolving credit facility and the amortization of loan cost, and interest paid on the credit facility were as follows for the periods indicated: Years Ended December 31, 2023 2022 2021 (in thousands) Interest incurred $ 242 $ 246 $ 257 Interest paid $ 166 $ 170 $ 166 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2023 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | Note 12: Accumulated Other Comprehensive Loss Accumulated other comprehensive loss consists of the following (in thousands): Foreign Pension Currency Adjustment Translation Total Balance at December 31, 2021 $ (18,071) $ (2,637) $ (20,708) Change during 2022: Before-tax amount (2,934) 5 (2,929) Tax benefit 671 — 671 Pension settlement loss, net of taxes 2,249 — 2,249 Reclassification adjustment, net of taxes: Amortization of net loss (1) 778 — 778 Total activity in 2022 764 5 769 Balance at December 31, 2022 (17,307) (2,632) (19,939) Change during 2023: Before-tax amount 3,964 263 4,227 Tax benefit (911) — (911) Pension settlement loss, net of taxes 14,080 — 14,080 Reclassification adjustment, net of taxes: Amortization of net loss (1) 174 — 174 Total activity in 2023 17,307 263 17,570 Balance at December 31, 2023 $ — $ (2,369) $ (2,369) (1) Reported as selling, general and administrative expenses. |
Cash Paid for Common Stock Purc
Cash Paid for Common Stock Purchased and Retired | 12 Months Ended |
Dec. 31, 2023 | |
CASH PAID FOR COMMON STOCK PURCHASED AND RETIRED | |
Cash Paid for Common Stock Purchased and Retired | Note 13: Cash Paid for Common Stock Purchased and Retired The Company has a stock buyback program to repurchase up to 49,578,125 shares in the open market, including an additional 8,000,000 shares authorized for repurchase by the Board of Directors in the second quarter of 2023. As of December 31, 2023, 13,779,128 shares remained available to be repurchased. The program does not have a preset expiration date. Repurchases of shares of the Company’s common stock may be made from time to time in the open market, by block purchases, in privately negotiated transactions or in such other manner as determined by the Company. The timing of the repurchases and the actual amount repurchased will depend on a variety of factors, including the market price of the Company's shares, general market and economic conditions, and other factors. The stock repurchase program does not obligate the Company to acquire any particular amount of common stock, and it may be suspended or discontinued at any time. Shares purchased for withholding taxes represent taxes due upon vesting of time-lapse restricted shares granted to employees. Total share repurchases for 2023 and 2022 year to date are detailed below: Year ended Year ended December 31, 2023 December 31, 2022 No. of shares Avg. price Total cost No. of shares Avg. price Total cost Shares purchased for withholding taxes 256,623 $ 9.24 $ 2,369,988 158,649 $ 5.78 $ 917,645 Open market purchases 2,469,056 7.58 18,717,662 — — — Total 2,725,679 $ 7.74 $ 21,087,650 158,649 $ 5.78 $ 917,645 |
Fair Value Disclosures
Fair Value Disclosures | 12 Months Ended |
Dec. 31, 2023 | |
FAIR VALUE DISCLOSURES | |
FAIR VALUE DISCLOSURES | Note 14: Fair Value Disclosures The various inputs used to measure assets at fair value establish a hierarchy that distinguishes between assumptions based on market data (observable inputs) and the Company’s assumptions (unobservable inputs). The hierarchy consists of three broad levels as follows: 1. Level 1 – Quoted market prices in active markets for identical assets or liabilities. 2. Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. 3. Level 3 – Unobservable inputs developed using the Company’s estimates and assumptions, which reflect those that market participants would use. The following table summarizes the valuation of financial instruments measured at fair value on a recurring basis on the balance sheet as of December 31, 2023, and 2022: Fair Value Measurements at December 31, 2023 with: Quoted prices in Significant active markets other Significant for identical observable unobservable (in thousands) Total assets inputs inputs (Level 1) (Level 2) (Level 3) Assets: Equity securities $ 4 $ 4 $ — $ — Investments measured at net asset value $ 26,772 Fair Value Measurements at December 31, 2022 with: Quoted prices in Significant active markets other Significant for identical observable unobservable (in thousands) Total assets inputs inputs (Level 1) (Level 2) (Level 3) Assets: Equity securities $ 305 $ 305 $ — $ — Investments measured at net asset value $ 24,175 The Company determines the fair value of marketable securities classified as available-for-sale through quoted market prices. The total fair value is the final closing price, as defined by the exchange in which the asset is actively traded, on the last trading day of the period, multiplied by the number of units held without consideration of transaction costs. Marketable securities classified as trading are comprised of the SERP assets, as described in the note titled Employee Benefit Plans, and are recorded primarily at their net cash surrender values, calculated using their net asset values, which approximates fair value, as provided by the issuing insurance company. The expected holding period for these assets measured at net asset value is unknown. Significant observable inputs, in addition to quoted market prices, were used to value the trading securities. The Company’s policy is to recognize transfers between levels at the beginning of quarterly reporting periods. For the year ended December 31, 2023, there were no significant transfers in or out of levels 1, 2 or 3. Under the Company’s revolving credit facility, there was no balance outstanding at December 31, 2023 or 2022. Borrowings, if any, under our revolving credit facility bear variable interest rates as described in the note titled Long Term Debt and are classified as a level 2, based on quotes from the lender. The Company is subject to interest rate risk on the variable component of the interest rate. The carrying amounts of other financial instruments reported in the balance sheet for current assets and current liabilities approximate their fair values because of the short maturity of these instruments. The Company currently does not use the fair value option to measure any of its existing financial instruments and has not determined whether or not it will elect this option for financial instruments it may acquire in the future. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
COMMITMENTS AND CONTINGENCIES | |
Commitments and Contingencies | Note 15: Commitments and Contingencies Income Taxes - Sales and Use Taxes - Loss Contingencies The Company has received a state tax notification of audit results related to sales and use tax and, with its outside legal counsel, has evaluated the perceived merits of this tax assessment. The Company believes the likelihood of a material loss related to this contingency is remote and cannot be reasonably estimated at this time. Therefore, no loss has been recorded and the Company currently does not believe the resolution of this claim will have a material impact on its consolidated financial position, results of operations or cash flows. Litigation - |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
EMPLOYEE BENEFIT PLANS | |
EMPLOYEE BENEFIT PLANS | Note 16: Employee Benefit Plans Defined Benefit Pension Plan The Company initiated actions to terminate the Plan in 2021 and it was fully terminated in 2023. As part of termination, the Company settled its participant liabilities in one of the following ways – (i) through a lump-sum settlement at the election of the participants; or (ii) transfer to a commercial annuity provider or a government agency. The Company funded this transfer through the liquidation of investments in the Plan assets and an additional cash contribution of million. The Company recognized a pre-tax, non-cash settlement charge of The following table sets forth the funded status of the Plan and the amounts recognized in RPC’s consolidated balance sheets: December 31, 2023 2022 (in thousands) Accumulated benefit obligation at end of year $ — $ 29,651 Change in projected benefit obligation: Benefit obligation at beginning of year $ 29,651 $ 41,038 Service cost — — Interest cost 22 972 Actuarial (gain) loss (3,715) (5,258) Benefits paid (836) (3,248) Settlement (25,122) (3,853) Projected benefit obligation at end of year $ — $ 29,651 Change in Plan assets: Fair value of Plan assets at beginning of year $ 20,041 $ 35,339 Actual return on Plan assets 249 (8,197) Employer contribution 5,454 — Benefits paid (836) (3,248) Transfer of assets 524 — Refund related to Plan trust dissolution (310) — Settlement (25,122) (3,853) Fair value of Plan assets at end of year $ — $ 20,041 Funded status at end of year $ — $ (9,610) The Company used a December 31 measurement date for this qualified Plan. As of December 31, 2022, the underfunded status of the Plan was disclosed in the current liabilities section on the Consolidated Balance Sheets. December 31, 2023 2022 (in thousands) Amounts (pre-tax) recognized in accumulated other comprehensive income (loss) consist of: Net loss $ — $ 22,476 Prior service cost (credit) — — Net transition obligation (asset) — — $ — $ 22,476 The components of net periodic cost of the Retirement Income Plan are summarized as follows: December 31, 2023 2022 2021 (in thousands) Interest cost $ 22 $ 972 $ 988 Expected return on Plan assets — — (1,509) Amortization of net losses 226 1,010 808 Settlement loss 18,286 2,921 — Net periodic benefit cost $ 18,534 $ 4,903 $ 287 The pre-tax amounts recognized in accumulated other comprehensive (loss) income for the years ended December 31, 2023, 2022 and 2021 are summarized as follows: December 31, 2023 2022 2021 (in thousands) Net (loss) gain $ (3,964) $ 2,939 $ 4,169 Amortization of net loss (226) (1,010) (808) Settlement loss (18,286) (2,921) — Amount recognized in accumulated other comprehensive (loss) income $ (22,476) $ (992) $ 3,361 The weighted average assumptions as of December 31 used to determine the projected benefit obligation and net benefit cost were as follows: December 31, 2023 2022 2021 Projected Benefit Obligation Discount rate (1) (1) (1) Rate of compensation increase N/A N/A N/A Net Benefit Cost: Discount rate N/A 4.86 % 2.50 % Expected return on Plan assets N/A 0.0 % 4.00 % Rate of compensation increase N/A N/A N/A (1) As of December 31, 2023, there was no liability in the plan and therefore, a discount rate does not apply. Projected benefit obligation as of December 31, 2022, and 2021 reflects proposed termination of the Plan and is calculated based on various assumptions in accordance with the Plan agreement. There were no assets in the Plan as of December 31, 2023. The Plan’s weighted average asset allocation as of December 31, 2022, by asset category was as follows: Percentage of Plan Assets December 31, 2022 Asset Category Cash and cash equivalents 3.7 % Fixed income securities 96.3 % Total 100.0 % The following tables present our Plan assets using the fair value hierarchy as of December 31, 2022. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. See note titled Fair Value Disclosures for a brief description of the three levels under the fair value hierarchy. Fair Value Hierarchy as of December 31, 2022: Investments (in thousands) Total Level 1 Level 2 Cash and Cash Equivalents (1) $ 740 $ 740 $ — Fixed Income Securities (2) 19,301 — 19,301 Total Assets in the Fair Value Hierarchy $ 20,041 $ 740 $ 19,301 Investments measured at Net Asset Value — Investments at Fair Value $ 20,041 (1) Cash and cash equivalents, which are used to pay benefits and Plan administrative expenses, are held in money market funds. (2) Fixed income securities are primarily valued using a market approach with inputs that include broker quotes, benchmark yields, base spreads and reported trades. Subsequent to December 31, 2022 these securities were liquidated to fund the annuity purchases. Supplemental Executive Retirement Plan (SERP) The Company permits selected highly compensated employees to defer a portion of their compensation to the SERP. The liabilities related to these deferrals are recognized as Long-term retirement plan liabilities in the Consolidated Balance Sheets. The SERP assets are invested primarily in company-owned life insurance (COLI) policies as a funding source to satisfy the obligations of the SERP. The assets are subject to claims by creditors, and the Company can designate them for another purpose at any time. Investments in COLI policies consisted of variable life insurance policies totaling $49.3 million as of December 31, 2023, and $45.4 million as of December 31, 2022. In the COLI policies, the Company is able to allocate the investment of the assets across a set of choices provided by the insurance underwriters, including fixed income securities and equity funds. The COLI policies are recorded at their net cash surrender values, which approximates fair value, as provided by the issuing insurance company, whose Standard & Poor’s credit rating was A+. The Company classifies the SERP assets as trading securities as described in note 1. The fair value of these assets totaled $26.8 million as of December 31, 2023, and $24.2 million as of December 31, 2022. The SERP assets are reported in other assets on the balance sheet. The changes in the fair value of these assets, and normal insurance expenses are recorded in the consolidated statement of operations as compensation cost within selling, general and administrative expenses. Trading gains (losses) related to the SERP assets totaled $2.6 million in 2023, $(4.4 million) in 2022, and $2.6 million in 2021. The SERP liability includes participant deferrals net of distributions and is recorded on the balance sheet in long-term pension liabilities with any change in the fair value of the liabilities recorded as compensation cost within selling, general and administrative expenses in the consolidated statements of operations. Trading gains (losses) related to the SERP liability totaled $2.8 million in 2023, $(4.1 million) in 2022, and $3.1 million in 2021. 401(k) Plan RPC sponsors a defined contribution 401(k) Plan that is available to substantially all full-time employees with more than three months of service. This Plan allows employees to make tax-deferred contributions from one to 25 percent of their annual compensation, not exceeding the permissible contribution imposed by the Internal Revenue Code. Effective January 1, 2019, the Company began making 100 percent matching contributions for each dollar $(1.00) of a participant’s contribution to the 401(k) Plan for the first three percent of his or her annual compensation and fifty cents $(0.50) for each dollar $(1.00) of a participant’s contribution to the 401(k) Plan for the next three Stock Incentive Plans The Company has issued stock options and restricted stock to employees under stock incentive plans that were approved by stockholders. In April 2014, the Company reserved 8,000,000 shares of common stock under the 2014 Stock Incentive plan with a term of 10 years expiring in April 2024. This plan allows for a wide variety of stock-based awards such as stock options and restricted stock. In recent years, we have awarded time-based restricted stock in lieu of granting stock options. We have not issued any stock options since 2003 and have no immediate plans to issue additional stock options. As of December 31, 2023, 911,997 shares were available for grant under the 2014 plan. As of December 31, 2022, 2,046,199 shares were available for grant. The Company recognizes compensation expense for the unvested portion of awards outstanding over the remainder of the service period. The compensation cost recorded for these awards is based on their fair value at the grant date less the cost of estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods to reflect actual forfeitures. Pre-tax stock-based employee compensation expense included as part of selling, general and administrative expense was $7.9 million in 2023 $(6.1 million after tax), $6.4 million in 2022 $(4.9 million after tax) and $6.6 million in 2021 $(5.1 million after tax). Restricted Stock The Company has granted certain employees and directors time lapse restricted stock which vests after a stipulated number of years from the grant date in the case of employees and vests immediately for non-employee directors, depending on the terms of the issue. The time-lapse restricted shares granted to employees in 2024 will vest ratably over a period of three years; the shares granted to employees in 2023 vest ratably over a period of four years; the shares granted to employees in 2022 vest ratably over a period of five years. Prior to 2022, the time-lapse restricted shares vested one -fifth per year beginning on the second anniversary of the grant date. Grantees receive dividends declared and retain voting rights for the granted shares. The agreement under which the restricted stock is issued provides that shares awarded may not be sold or otherwise transferred until restrictions established under the stock plans have lapsed. Upon termination of employment from RPC, with the exception of death (fully vests) or disability (partially vests based on pre-approved formula), shares with restrictions are forfeited in accordance with the plan. The following is a summary of the changes in non-vested restricted shares for the year ended December 31, 2023: Weighted Average Shares Grant-Date Fair Value Non-vested shares at January 1, 2023 3,248,728 $ 6.87 Granted 1,235,728 9.50 Vested (859,485) 8.63 Forfeited (92,786) 7.74 Non-vested shares at December 31, 2023 3,532,185 $ 7.35 The following is a summary of the changes in non-vested restricted shares for the year ended December 31, 2022: Weighted Average Shares Grant-Date Fair Value Non-vested shares at January 1, 2022 2,619,691 $ 7.89 Granted 1,254,276 6.72 Vested (510,084) 11.86 Forfeited (115,155) 6.29 Non-vested shares at December 31, 2022 3,248,728 $ 6.87 The fair value of restricted share awards is based on the market price of the Company’s stock on the date of the grant and is amortized to compensation expense, net of estimated forfeitures, on a straight-line basis over the requisite service period. The weighted average grant date fair value per share of these restricted stock awards was $9.50 for 2023, $6.72 for 2022 and $3.87 for 2021. The total fair value of shares vested was $7.8 million during 2023, $2.9 million during 2022 and $1.8 million during 2021. The consolidated statements of cash flows reflect discrete income tax adjustments that resulted in $222,000 of beneficial impact in 2023 and $640,000 of detrimental impact in 2022 realized from tax compensation deductions and classified within operating activities as part of net income. Other Information As of December 31, 2023, total unrecognized compensation cost related to non-vested restricted shares was $13.8 million which is expected to be recognized over a weighted-average period of 2.8 years. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions | |
Related Party Transactions | Note 17: Related Party Transactions Marine Products Corporation In conjunction with RPC’s spin-off of its powerboat manufacturing business, RPC and Marine Products Corporation (Marine Products) entered into various agreements that define the companies’ relationship. Per the terms of their Transition Support Services agreement, which may be terminated by either party, RPC provides certain administrative services, including financial reporting and income tax administration, acquisition assistance, etc., to Marine Products. Charges from the Company (or from corporations that are subsidiaries of the Company) for such services were Other The Company periodically purchases, in the ordinary course of business, products or services from suppliers that are owned by officers or significant stockholders of or affiliated with certain directors of RPC. The total amounts paid to these affiliated parties were $1.8 million in 2023, $1.8 million in 2022 and $1.3 million in 2021. All of the related party transactions have been approved by the Nominating and Corporate Governance Committee. RPC received certain administrative services from Rollins, Inc. (a company that has a significant shareholder group that includes Gary W. Rollins, Pamela R. Rollins, Amy Rollins Kreisler and Timothy C. Rollins, each of whom is a director of the Company). That significant shareholder group had a controlling interest in Rollins, Inc. prior to June 2023. The service agreements between Rollins, Inc. and the Company provided for the provision of services on a cost reimbursement basis; the agreement was terminated in November 2023. The services covered by these agreements included administration services for certain employee benefit programs and other administrative services. Charges to the Company (or to corporations which are subsidiaries of the Company) for such services and rent totaled $3 thousand in 2023, $71 thousand in 2022 and $108 thousand in 2021. A group that includes Gary W. Rollins, Pamela R. Rollins, Amy Rollins Kreisler and Timothy C. Rollins, each of whom is a director of the Company, and certain companies under their control, controls in excess of 50% of the Company’s voting power. RPC and Marine Products own 50% each |
Business Segment and Entity Wid
Business Segment and Entity Wide Disclosures | 12 Months Ended |
Dec. 31, 2023 | |
BUSINESS SEGMENT INFORMATION | |
Business Segment and Entity Wide Disclosures | Note 18: Business Segment and Entity Wide Disclosures RPC’s reportable segments are the same as its operating segments. RPC manages its business under Technical Services and Support Services. Technical Services is comprised of service lines that generate revenue based on equipment, personnel or materials at the well site and are closely aligned with completion and production activities of the customers. Support Services is comprised of service lines which generate revenue from services and equipment offered off the well site and are closely aligned with the customers’ drilling activities. Selected overhead including centralized support services and regulatory compliance are classified as Corporate. Technical Services consists primarily of pressure pumping, downhole tools, coiled tubing, cementing, snubbing, nitrogen, well control, wireline and fishing. The services offered under Technical Services are high capital and personnel intensive businesses. The Company considers all of these services to be closely integrated oil and gas well servicing businesses and makes resource allocation and performance assessment decisions based on this operating segment as a whole across these various services. Support Services consist primarily of drill pipe and related tools, pipe handling, pipe inspection and storage services, and oilfield training services. The demand for these services tends to be influenced primarily by customer drilling-related activity levels. The Company’s Chief Operating Decision Maker (CODM) assesses performance and makes resource allocation decisions regarding, among others, staffing, growth and maintenance capital expenditures and key initiatives based on the operating segments outlined above. Segment Revenues: RPC’s operating segment revenues by major service lines are shown in the following table: (in thousands) 2023 2022 2021 Technical Services: Pressure Pumping $ 771,542 $ 846,939 $ 369,028 Downhole Tools 397,341 374,081 247,019 Coiled Tubing 152,484 140,889 88,946 Cementing 64,481 21,178 10,111 Nitrogen 47,306 39,596 38,773 Snubbing 26,345 28,028 15,408 All other 56,638 65,652 45,761 Total Technical Services $ 1,516,137 $ 1,516,363 $ 815,046 Support Services: Rental Tools $ 73,301 $ 62,780 $ 32,167 All other 28,036 22,619 17,716 Total Support Services $ 101,337 $ 85,399 $ 49,883 Total revenues $ 1,617,474 $ 1,601,762 $ 864,929 The accounting policies of the reportable segments are the same as those described in the note titled Significant Accounting Policies. RPC evaluates the performance of its segments based on revenues, operating profits and return on invested capital. Gains or losses on disposition of assets are reviewed by the CODM on a consolidated basis, and accordingly the Company does not report gains or losses at the segment level. Inter-segment revenues are generally recorded in segment operating results at prices that management believes approximate prices for arm’s length transactions and are not material to operating results. Summarized financial information concerning RPC’s reportable segments for the years ended December 31, 2023, 2022 and 2021 are shown in the following table: Gain on Pension Technical Support disposition of Settlement (in thousands) Services Services Corporate assets, net charges Total 2023 Revenues $ 1,516,137 $ 101,337 $ — $ — $ — $ 1,617,474 Operating income (loss) 245,904 26,461 (18,473) 9,344 (18,286) 244,950 Capital expenditures 160,799 15,634 4,572 — — 181,005 Depreciation and amortization 97,773 10,293 57 — — 108,123 Identifiable assets 867,550 81,754 337,541 — — 1,286,845 2022 Revenues $ 1,516,363 $ 85,399 $ — $ — $ — $ 1,601,762 Operating income (loss) 281,622 18,095 (17,660) 8,804 (2,921) 287,940 Capital expenditures 126,327 12,320 905 — — 139,552 Depreciation and amortization 73,016 9,840 161 — — 83,017 Identifiable assets 823,434 80,104 225,475 — — 1,129,013 2021 Revenues $ 815,046 $ 49,883 $ — $ — $ — $ 864,929 Operating income (loss) 24,434 (5,725) (13,300) 10,882 — 16,291 Capital expenditures 59,316 7,012 1,317 — — 67,645 Depreciation and amortization 62,667 9,752 267 — — 72,686 Identifiable assets 580,406 69,345 214,614 — — 864,365 The following summarizes revenues for the United States and separately for all international locations combined for the years ended December 31, 2023, 2022 and 2021. The revenues are presented based on the location of the use of the equipment or services. Assets related to international operations are less than 10% of RPC’s consolidated assets, and therefore are not presented. (in thousands) 2023 2022 2021 United States revenues $ 1,588,774 $ 1,569,160 $ 833,686 International revenues 28,700 32,602 31,243 Total revenues $ 1,617,474 $ 1,601,762 $ 864,929 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases. | |
Leases | Note 19: Leases During the year ended December 31, 2023, the Company assumed certain leases as part of its acquisition of Spinnaker. The disclosures below include the information related to the leases after the acquisition. See note tilted Business Acquisition for further information related to those leases. Lease Position: The table below represents the assets and liabilities related to operating leases recorded on the balance sheet: December 31, 2023 2022 (in thousands) Assets: Operating lease right-of-use assets $ 24,537 $ 28,864 Finance lease right-of-use assets 1,036 — Total lease assets $ 25,573 $ 28,864 Liabilities: Current portion of operating leases $ 7,367 $ 10,728 Current portion of finance lease liabilities and finance obligations 375 — Long-term finance lease liabilities 819 — Long-term operating lease liabilities 18,600 19,517 Total lease liabilities $ 27,161 $ 19,517 Lease costs: The components of finance lease are included in depreciation and amortization and interest expense; operating lease expense are included in costs of goods sold, and selling, general and administrative expenses in the consolidated statements of operations as disclosed below. Year ended December 31, 2023 2022 2021 (in thousands) Finance lease cost Amortization of leased assets $ 129 $ 3,390 $ 1,452 Interest on lease liabilities 13 283 116 Total finance lease cost $ 142 $ 3,673 $ 1,568 Interest on finance obligation $ 35 $ — $ — Operating lease cost $ 15,096 $ 9,615 $ 7,580 Short-term lease cost 1,862 9,192 3,626 Variable lease cost 774 647 772 Sublease income (1,400) (1,021) (831) Total operating lease cost $ 16,332 $ 18,433 $ 11,147 Total lease cost $ 16,509 $ 22,106 $ 12,715 Other Information: As of December 31, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities – operating leases (in thousands) $ 12,475 $ 8,742 Cash paid for amounts included in the measurement of lease liabilities – finance lease and finance obligations (in thousands) $ 515 $ — ROU assets obtained in exchange for operating lease liabilities (in thousands) $ 8,151 $ 12,882 Weighted average remaining lease term – finance lease (years) 4.00 — Weighted average remaining lease term – operating leases (years) 5.06 5.14 Weighted average remaining term – finance obligations (months) 8.00 — Weighted average discount rate – finance lease 2.3 % — % Weighted average discount rate – operating leases 4.42 % 3.93 % Weighted average discount rate – finance obligations 8.40 % — % Lease Commitments: Maturity of lease liabilities and finance obligations: As of December 31, 2023 (in thousands) 2024 $ 9,197 2025 5,856 2026 4,957 2027 3,863 2028 2,291 Thereafter 4,487 Total lease payments 30,651 Less: Amounts representing interest (3,490) Present value of lease liabilities $ 27,161 |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Event | |
Subsequent Event | Note 20. Subsequent Event On January 23, 2024, the Board of Directors declared a . |
SCHEDULE II -VALUATION AND QUAL
SCHEDULE II -VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2023 | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS For the years ended December 31, 2023, 2022 and 2021 Balance at Charged to Balance Beginning Costs and Net (Deductions) at End of (in thousands) of Period Expenses Recoveries Period Year ended December 31, 2023 Credit loss allowance for accounts receivable $ 7,078 $ 2,656 $ (2,625) (1) $ 7,109 Deferred tax asset valuation allowance $ 990 $ 601 $ — (2) $ 1,591 Reserve for obsolete or slow-moving inventory $ 15,374 $ 3,063 $ (2,512) (3) $ 15,925 Year ended December 31, 2022 Credit loss allowance for accounts receivable $ 6,765 $ 2,029 $ (1,716) (1) $ 7,078 Deferred tax asset valuation allowance $ 865 $ — $ 125 (2) $ 990 Reserve for obsolete or slow-moving inventory $ 13,236 $ 4,080 $ (1,942) (3) $ 15,374 Year ended December 31, 2021 Credit loss allowance for accounts receivable $ 4,815 $ 4,019 $ (2,069) (1) $ 6,765 Deferred tax asset valuation allowance $ 490 $ — $ 375 (2) $ 865 Reserve for obsolete or slow-moving inventory $ 13,829 $ 5,016 $ (5,609) (3) $ 13,236 (1) Net (deductions) recoveries in the credit loss allowance principally reflect the write-off of previously reserved accounts net of recoveries. (2) The valuation allowance for deferred tax assets is increased or decreased each year to reflect the state and foreign net operating losses and capital losses that management believes will not be utilized before they expire. (3) Net (deductions) recoveries in the reserve for obsolete or slow-moving inventory principally reflect the write-off and/ or disposal of previously reserved inventory . |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
RECENT ACCOUNTING STANDARDS | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of RPC, Inc. and its wholly-owned subsidiaries (RPC or the Company). All significant intercompany accounts and transactions have been eliminated. Certain prior year amounts have been reclassified to conform to the presentation in the current year. |
Common Stock | Common Stock RPC is authorized to issue 349,000,000 shares of common stock, $0.10 par value. Holders of common stock are entitled to receive dividends when, as, and if declared by the Board of Directors out of legally available funds. Each share of common stock is entitled to one vote on all matters submitted to a vote of stockholders. Holders of common stock do not have cumulative voting rights. In the event of any liquidation, dissolution or winding up of the Company, holders of common stock are entitled to ratable distribution of the remaining assets available for distribution to stockholders. |
Preferred Stock | Preferred Stock RPC is authorized to issue up to 1,000,000 shares of preferred stock, $0.10 par value. As of December 31, 2023, there were no shares of preferred stock issued. The Board of Directors is authorized, subject to any limitations prescribed by law, to provide for the issuance of preferred stock as a class without series or, if so determined from time to time, in one or more series, and by filing a certificate pursuant to the applicable laws of the state of Delaware and to fix the designations, powers, preferences and rights, exchangeability for shares of any other class or classes of stock. Any preferred stock to be issued could rank prior to the common stock with respect to dividend rights and rights on liquidation. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates are used in the determination of the credit loss allowance, income taxes, goodwill and other impairment assessments, accrued insurance expenses and acquisition of business. |
Revenues | Revenues RPC recognizes revenues from contracts with its customers based on the amount of consideration it receives in exchange for the services provided. See note of the consolidated financial statements titled Revenues for additional information. |
Concentration of Credit Risk | Concentration of Credit Risk Substantially all of the Company’s customers are engaged in the oil and gas industry. This concentration of customers may impact overall exposure to credit risk, either positively or negatively, in that customers may be similarly affected by changes in economic and industry conditions. There were no customers in 2023 that accounted for 10% or more of revenues. RPC provided oilfield services to several hundred customers during each of the past three years. One of our customers, a private exploration and production company, accounted for approximately 11% of the Company’s revenues in 2022. There were no other customers in 2022 and no customers in 2021 exceeding 10% of revenues. In addition, there was one customer that accounted for approximately 10% of accounts receivable as of December 31, 2023. There were no other customers as of December 31, 2023, and no customers as of December 31, 2022, that accounted for 10% or more of accounts receivable. |
Cash and Cash Equivalents | Cash and Cash Equivalents Highly liquid investments with original maturities of three months or less when acquired are considered to be cash equivalents. The Company maintains its cash in bank accounts which, at times, may exceed federally insured limits. RPC maintains cash equivalents and investments in one or more large financial institutions, and RPC’s policy restricts investment in any securities rated less than investment grade by national rating services. |
Investments | Investments Investments classified as available-for-sale securities are stated at their fair values, with all gains and losses included in other income. The Company recorded gains on its available-for-sale securities of $18 thousand in 2023, $107 thousand in 2022, and $65 thousand in 2021. The Securities that are held in the non-qualified Supplemental Executive Retirement Plan (SERP) are classified as trading. See note titled Employee Benefit Plans for further information regarding the SERP. The change in fair value of trading securities is presented as compensation cost in selling, general and administrative expenses on the consolidated statements of operations. Management determines the appropriate classification of investments at the time of purchase and re-evaluates such designations as of each balance sheet date. |
Accounts Receivable | Accounts Receivable The majority of the Company’s accounts receivable is due principally from major and independent oil and natural gas exploration and production companies. Credit is extended based on evaluation of a customer’s financial condition and, generally, collateral is not required. Accounts receivable are considered past due after 60 days |
Credit Loss Allowance for Accounts Receivable | Credit Loss Allowance for Accounts Receivable Accounts receivable are carried at the amounts due from customers, reduced by an allowance for estimated amounts that may not be collectible in the future. The estimated credit loss allowance is based on an evaluation of industry trends, financial condition of customers, historical write-off experience, current economic conditions, and in the case of international customers, judgments about the economic and political environment of the related country and region. Accounts receivable balances are written off when determined to be uncollectible and recoveries of amounts previously written off are recorded when collected. |
Inventories | Inventories Inventories, which consist principally of (i) raw materials and supplies that are consumed providing services to the Company’s customers, (ii) spare parts for equipment used in providing these services and (iii) components and attachments for manufactured equipment used in providing services, are recorded at the lower of cost or net realizable value. Cost is determined using the first-in, first-out (FIFO) method or the weighted average cost method. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The Company regularly reviews inventory quantities on hand and records a write-down for excess or obsolete inventory based primarily on its estimated forecast of product demand, market conditions, production requirements and technological developments. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment, including software costs, are reported at cost less accumulated depreciation and amortization, which is provided on a straight-line basis over the estimated useful lives of the assets. Annual depreciation and amortization expenses are computed using the following useful lives: operating equipment, 3 to 20 years; buildings and leasehold improvements, 15 to 39 years or the life of the lease; furniture and fixtures, 5 to 7 years; software, 5 years; and vehicles, 3 to 5 years. The cost of assets retired or otherwise disposed of and the related accumulated depreciation and amortization are eliminated from the accounts in the year of disposal with the resulting gain or loss credited or charged to income from operations. Expenditures for additions, major renewals, and betterments are capitalized. Expenditures for restoring an identifiable asset to working condition or for maintaining the asset in good working order constitute repairs and maintenance and are expensed as incurred. RPC records impairment losses on long-lived assets used in operations when events and circumstances indicate that the assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amount of those assets. The Company periodically reviews the values assigned to long-lived assets, such as property, plant and equipment, to determine if any impairments should be recognized. There was no impairment recorded during 2023, 2022 or 2021. |
Goodwill | Goodwill Goodwill represents the excess of the purchase price over the fair value of net assets of businesses acquired. The following is a summary of the changes in Goodwill by reporting unit: (in thousands) Technical Services Support Services Total Beginning balance at December 31, 2022 $ 30,992 $ 1,158 $ 32,150 Business acquisition (see note titled Business Acquisition) 18,674 — 18,674 Ending balance at December 31, 2023 $ 49,666 $ 1,158 $ 50,824 Goodwill is reviewed annually, or more frequently, if events occur or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount, for impairment. In both 2022 and 2023 , due to improved industry conditions, its reporting units’ performance and public market indications of value, the Company elected to perform a qualitative assessment of its goodwill and concluded that it is more likely than not that fair value of each of its reporting units is more than the carrying amounts, including goodwill. Based on these assessments the Company concluded that the fair value of its reporting units exceeded their carrying amounts and therefore no impairment of goodwill occurred during the years ended December 31, 2023, and 2022. |
Advertising | Advertising Advertising expenses are charged to expense during the period in which they are incurred. Advertising expenses totaled $2.4 million in 2023, $2.0 million in 2022, and $1.1 million in 2021. |
Insurance Expenses | Insurance Expenses RPC self-insures, up to certain policy-specified limits, certain risks related to general liability, workers’ compensation, vehicle and equipment liability, and employee health insurance plan costs. The estimated cost of claims under these self-insurance programs is estimated and accrued as the claims are incurred (although actual settlement of the claims may not be made until future periods) and may subsequently be revised based on developments relating to such claims. The portion of these estimated outstanding claims expected to be paid more than one year in the future is classified as long-term accrued insurance expenses. |
Income Taxes | Income Taxes Deferred tax liabilities and assets are determined based on the difference between the financial and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The Company establishes a valuation allowance against the carrying value of deferred tax assets when the Company determines that it is more likely than not that the asset will not be realized through future taxable income. |
Defined Benefit Pension Plan | Defined Benefit Pension Plan The Company’s multiemployer Retirement Income Plan (Plan), a trusteed defined benefit pension plan provided monthly benefits to its participants based on the various provisions contained therein. The Company initiated actions to terminate the Plan in 2021 and it was fully terminated in 2023. See note titled Employee Benefit Plans for details on the termination and related settlement losses. |
Share Repurchases | Share Repurchases The Company records the cost of share repurchases in stockholders’ equity as a reduction to common stock to the extent of par value of the shares acquired and the remainder is allocated to capital in excess of par value and retained earnings if capital in excess of par value is depleted. The Company tracks capital in excess of par value on a cumulative basis for each reporting period and discloses the excess over capital in excess of par value as part of stock purchased and retired in the consolidated statements of stockholders’ equity. |
Earnings per Share | Earnings per Share Basic and diluted earnings per share are computed by dividing net income by the weighted average number of shares outstanding during the respective periods. In addition, the Company has periodically issued share-based payment awards that contain non-forfeitable rights to dividends and are therefore considered participating securities. See note titled Employee Benefit Plans for further information on restricted stock granted to employees. Restricted shares of common stock (participating securities) outstanding and a reconciliation of weighted average shares outstanding is as follows: (in thousands) 2023 2022 2021 Net income available for stockholders $ 195,113 $ 218,363 $ 7,217 Less: Adjustments for earnings attributable to participating securities (3,099) (3,197) (89) Net income used in calculating earnings per share $ 192,014 $ 215,166 $ 7,128 Weighted average shares outstanding (including participating securities) 216,472 216,518 215,646 Adjustment for participating securities (3,545) (3,187) (2,656) Shares used in calculating basic and diluted earnings per share 212,927 213,331 212,990 |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s financial instruments consist primarily of cash and cash equivalents, accounts receivable, investments, accounts payable, and debt. The carrying value of cash and cash equivalents, accounts receivable and accounts payable approximate their fair value due to the short-term nature of such instruments. The Company’s investments are classified as available-for-sale securities with the exception of investments held in the non-qualified SERP which are classified as trading securities. All of these securities are carried at fair value in the accompanying consolidated balance sheets. See note titled Fair Value Disclosures for additional information. |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense is recognized for all share-based payment awards, net of estimated forfeitures. Thus, compensation cost is amortized for those shares expected to vest on a straight-line basis over the requisite service period of the award. See note titled Employee Benefit Plans for additional information. |
Leases | Leases The Company determines at contract inception if an arrangement is a lease or contains a lease based on whether the Company obtains the right to control the use of specifically identifiable property, plant and equipment for a period of time in exchange for consideration. The Company’s lease population consists primarily of real estate including its corporate headquarters, office space and warehouses, in addition to vehicles, storage containers and office equipment. The Company’s population of month-to-month real estate leases have been classified as short-term leases. The Company has elected not to separate non-lease components from lease components for its leases. Variable lease payments relate primarily to taxes and insurance on real estate contracts and are recognized as expense when incurred. |
Recently Adopted Accounting Standards | Recent Accounting Pronouncements The Financial Accounting Standards Board issued the following applicable Accounting Standards Updates (ASU): Recently Adopted Accounting Standards: ● ACCOUNTING STANDARDS UPDATE (ASU) No. 2021-08: Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers: The amendments in this ASU address diversity in practice related to the accounting for revenue contracts with customers acquired in a business combination, by adopting guidance requiring an acquirer to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. At the acquisition date, an acquirer would recognize and measure the acquired contract assets and contract liabilities in the same manner that they were recognized and measured in the acquiree's financial statements before the acquisition. The Company adopted these provisions in the second quarter of 2023 prospectively for future acquisitions. For the acquisition completed effective in the third quarter of 2023, the Company has recognized the contract assets and contract liabilities in the same manner as the acquiree. See note titled Business Acquisition for additional information. The adoption did not have a material impact on the Company’s consolidated financial statements . Recently Issued Accounting Standards Not Yet Adopted: ● ASU No. 2023-07: Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures: The amendments in this ASU require an entity to disclose the title and position of the Chief Operating Decision Maker (CODM) and the significant segment expenses that are regularly provided to the CODM and included within each reported measure of segment profit or loss. These amendments are effective for annual disclosures beginning in 2024 and interim disclosures beginning in the first quarter of 2025, with early adoption permitted. These amendments are effective retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the impact of adopting these provisions on its consolidated financial statements. ● ASU No. 2023-09: Income Taxes (Topic 740): Improvements to Income Tax Disclosures: The amendments in this ASU require an entity to include consistent categories and greater disaggregation of information in the rate reconciliation and income taxes paid, disaggregated by jurisdiction. These amendments are effective for annual disclosures beginning in 2025, with early adoption permitted for annual financial statements that have not yet been issued. The Company is currently evaluating the impact of adopting these provisions on its consolidated financial statements . |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
RECENT ACCOUNTING STANDARDS | |
Schedule of carrying amount of goodwill by reportable segment | (in thousands) Technical Services Support Services Total Beginning balance at December 31, 2022 $ 30,992 $ 1,158 $ 32,150 Business acquisition (see note titled Business Acquisition) 18,674 — 18,674 Ending balance at December 31, 2023 $ 49,666 $ 1,158 $ 50,824 |
Schedule of reconciliation of weighted average shares outstanding | (in thousands) 2023 2022 2021 Net income available for stockholders $ 195,113 $ 218,363 $ 7,217 Less: Adjustments for earnings attributable to participating securities (3,099) (3,197) (89) Net income used in calculating earnings per share $ 192,014 $ 215,166 $ 7,128 Weighted average shares outstanding (including participating securities) 216,472 216,518 215,646 Adjustment for participating securities (3,545) (3,187) (2,656) Shares used in calculating basic and diluted earnings per share 212,927 213,331 212,990 |
Business Acquisition (Tables)
Business Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
BUSINESS ACQUISITIONS | |
Schedule of assets acquired and liabilities assumed measured at their fair values as of the acquisition date | Fair Value (in thousands) as of July 1, 2023 Accounts receivable $ 12,836 Inventories 1,373 Prepaid and other current assets 384 Accounts payable (4,499) Property, plant and equipment 37,374 Operating lease right-of-use assets 46 Current portion of operating lease liabilities (31) Long-term operating lease liabilities (15) Finance lease right-of-use assets 1,165 Current portion of finance lease liabilities (247) Long-term finance lease liabilities (944) Goodwill 18,674 Other intangibles 13,200 Total consideration 79,316 Less: Assumption of finance obligations (518) Total cash consideration $ 78,798 |
Schedule of preliminary fair values assigned to identifiable intangible asset | Weighted-Average (in thousands) Fair Value Amortization Period (Years) Customer Relationships $ 10,000 10 Trade Names and Trademarks 3,200 10 Total Amortizable Intangible Assets $ 13,200 |
Schedule of pro forma financial information | (in thousands) Six months ended December 31, 2023 Revenues $ 44,830 Net income 4,727 (in thousands) 2023 2022 Revenues $ 1,669,231 $ 1,689,559 Net income 204,222 234,284 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
REVENUES | |
Schedule of disaggregation of revenues | (in thousands) 2023 2022 2021 Oilfield services transferred at a point in time $ — $ — $ — Oilfield services transferred over time 1,617,474 1,601,762 864,929 Total revenues $ 1,617,474 $ 1,601,762 $ 864,929 |
Schedule of contract assets included in accounts receivable | December 31, December 31, (in thousands) 2023 2022 Unbilled trade receivables $ 59,831 $ 103,498 |
Depreciation and Amortization (
Depreciation and Amortization (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
DEPRECIATION AND AMORTIZATION | |
Schedule of depreciation and amortization | (in thousands) 2023 2022 2021 Cost of revenues $ 97,685 $ 74,294 $ 63,068 Selling, general and administrative expenses 10,438 8,723 9,618 Total $ 108,123 $ 83,017 $ 72,686 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounts Receivable. | |
Schedule of components of accounts receivables | December 31, 2023 2022 (in thousands) Trade receivables: Billed $ 271,515 $ 315,332 Unbilled 59,831 103,498 Other receivables 678 4,816 Total 332,024 423,646 Less: allowance for credit losses (7,109) (7,078) Accounts receivable, net $ 324,915 $ 416,568 |
Current Expected Credit Losses
Current Expected Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
CURRENT EXPECTED CREDIT LOSSES | |
Schedule of roll-forward of the allowance for credit losses that is deducted from the amortized cost basis of accounts receivable to present the net amount expected to be collected | Years Ended December 31, 2023 2022 (in thousands) Beginning balance $ 7,078 $ 6,765 Provision for current expected credit losses 2,656 2,029 Write-offs (2,737) (1,752) Recoveries collected (net of expenses) 112 36 Ending balance $ 7,109 $ 7,078 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
INVENTORIES | |
Schedule of inventory | December 31, 2023 2022 (in thousands) Raw materials and supplies $ 109,872 $ 95,384 Finished goods 1,032 1,723 Total inventory $ 110,904 $ 97,107 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment | |
Schedule of property, plant and equipment | December 31, 2023 2022 (in thousands) Land $ 18,165 $ 17,287 Buildings and leasehold improvements 129,513 120,506 Operating equipment 784,826 683,027 Computer software 19,535 22,194 Furniture and fixtures 5,298 5,480 Vehicles 288,735 259,933 Gross property, plant and equipment 1,246,072 1,108,427 Less: accumulated depreciation (810,933) (775,334) Net property, plant and equipment $ 435,139 $ 333,093 |
Other Intangibles, net (Tables)
Other Intangibles, net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
OTHER INTANGIBLES, NET | |
Summary of gross carrying value and accumulated amortization by each major intangible class | 2023 2022 (in thousands) Gross Carrying Amount Accumulated Amortization Gross Accumulated Amortization Finite-lived Intangibles: Customer relationships $ 10,000 $ (500) $ — $ — Trade names and trademarks 3,519 (479) 319 (294) Software licenses 2,202 (1,917) 2,202 (1,143) Patents and technology 300 (300) 300 (300) $ 16,021 $ (3,196) $ 2,821 $ (1,737) |
Summary of amortization expense | Years ended December 31, 2023 2022 2021 (in thousands) Amortization of finite-lived intangible assets $ 1,459 $ 796 $ 27 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
INCOME TAXES | |
Schedule of components of provision (benefit) for income taxes | Years ended December 31, 2023 2022 2021 (in thousands) Current provision (benefit): Federal $ 45,146 $ 47,744 $ 4,946 State 6,502 3,164 (1,387) Foreign 835 865 784 Deferred provision: Federal 7,116 14,026 2,287 State 1,531 5,470 2,601 Total income tax provision $ 61,130 $ 71,269 $ 9,231 |
Schedule of reconciliation between the federal statutory rate and effective tax rate | Years ended December 31, 2023 2022 2021 Federal statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 2.1 1.9 2.9 Foreign taxes, net of federal benefit 0.3 0.3 5.1 Tax credits (0.3) (0.1) (3.5) Change in contingencies 0.1 — 8.6 Non-deductible expenses 0.8 0.7 (2.8) Adjustments related to CARES Act — — 3.2 Change in estimated deferred rate — 0.4 10.2 Adjustments related to vesting of restricted stock (0.1) 0.2 7.1 Other — 0.2 4.3 Effective tax rate 23.9 % 24.6 % 56.1 % |
Schedule of deferred tax assets and liabilities | December 31, 2023 2022 (in thousands) Deferred tax assets: Self-insurance $ 4,303 $ 3,051 Long-term retirement plan 5,101 5,237 State net operating loss carryforwards 1,520 1,960 Allowance for credit losses 1,634 1,757 Stock-based compensation 1,414 2,531 Inventory reserve 3,330 3,290 Lease liability 5,777 6,701 Capitalized research and development 3,066 1,041 Valuation allowance (1,591) (990) All others, net 3,126 2,386 Gross deferred tax assets 27,680 26,964 Deferred tax liabilities: Depreciation (66,784) (51,494) Right of use asset (5,461) (6,397) Goodwill amortization (6,725) (6,546) Gross deferred tax liabilities (78,970) (64,437) Net deferred tax liabilities $ (51,290) $ (37,473) |
Schedule of reconciliation of unrecognized tax benefits | (in thousands) 2023 2022 Balance at January 1 $ 1,917 $ 1,737 Additions (reductions) based on tax positions related to the current year 337 197 Additions (reductions) for tax positions of prior years (86) (17) Balance at December 31 $ 2,168 $ 1,917 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
NOTES PAYABLE TO BANKS | |
Schedule of interest incurred and paid on the credit facility, interest capitalized related to facilities and equipment under construction, and the related weighted average interest rates on long term debt | Years Ended December 31, 2023 2022 2021 (in thousands) Interest incurred $ 242 $ 246 $ 257 Interest paid $ 166 $ 170 $ 166 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | |
Schedule of accumulated other comprehensive loss | Foreign Pension Currency Adjustment Translation Total Balance at December 31, 2021 $ (18,071) $ (2,637) $ (20,708) Change during 2022: Before-tax amount (2,934) 5 (2,929) Tax benefit 671 — 671 Pension settlement loss, net of taxes 2,249 — 2,249 Reclassification adjustment, net of taxes: Amortization of net loss (1) 778 — 778 Total activity in 2022 764 5 769 Balance at December 31, 2022 (17,307) (2,632) (19,939) Change during 2023: Before-tax amount 3,964 263 4,227 Tax benefit (911) — (911) Pension settlement loss, net of taxes 14,080 — 14,080 Reclassification adjustment, net of taxes: Amortization of net loss (1) 174 — 174 Total activity in 2023 17,307 263 17,570 Balance at December 31, 2023 $ — $ (2,369) $ (2,369) (1) Reported as selling, general and administrative expenses. |
Cash Paid for Common Stock Pu_2
Cash Paid for Common Stock Purchased and Retired (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
CASH PAID FOR COMMON STOCK PURCHASED AND RETIRED | |
Schedule of total share repurchases | Year ended Year ended December 31, 2023 December 31, 2022 No. of shares Avg. price Total cost No. of shares Avg. price Total cost Shares purchased for withholding taxes 256,623 $ 9.24 $ 2,369,988 158,649 $ 5.78 $ 917,645 Open market purchases 2,469,056 7.58 18,717,662 — — — Total 2,725,679 $ 7.74 $ 21,087,650 158,649 $ 5.78 $ 917,645 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
FAIR VALUE DISCLOSURES | |
Schedule of valuation of financial instruments measured at fair value on a recurring basis | Fair Value Measurements at December 31, 2023 with: Quoted prices in Significant active markets other Significant for identical observable unobservable (in thousands) Total assets inputs inputs (Level 1) (Level 2) (Level 3) Assets: Equity securities $ 4 $ 4 $ — $ — Investments measured at net asset value $ 26,772 Fair Value Measurements at December 31, 2022 with: Quoted prices in Significant active markets other Significant for identical observable unobservable (in thousands) Total assets inputs inputs (Level 1) (Level 2) (Level 3) Assets: Equity securities $ 305 $ 305 $ — $ — Investments measured at net asset value $ 24,175 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
EMPLOYEE BENEFIT PLANS | |
Schedule of funded status of retirement income plan | December 31, 2023 2022 (in thousands) Accumulated benefit obligation at end of year $ — $ 29,651 Change in projected benefit obligation: Benefit obligation at beginning of year $ 29,651 $ 41,038 Service cost — — Interest cost 22 972 Actuarial (gain) loss (3,715) (5,258) Benefits paid (836) (3,248) Settlement (25,122) (3,853) Projected benefit obligation at end of year $ — $ 29,651 Change in Plan assets: Fair value of Plan assets at beginning of year $ 20,041 $ 35,339 Actual return on Plan assets 249 (8,197) Employer contribution 5,454 — Benefits paid (836) (3,248) Transfer of assets 524 — Refund related to Plan trust dissolution (310) — Settlement (25,122) (3,853) Fair value of Plan assets at end of year $ — $ 20,041 Funded status at end of year $ — $ (9,610) |
Schedule of amounts recognized in the current liabilities section on the balance sheets | December 31, 2023 2022 (in thousands) Amounts (pre-tax) recognized in accumulated other comprehensive income (loss) consist of: Net loss $ — $ 22,476 Prior service cost (credit) — — Net transition obligation (asset) — — $ — $ 22,476 |
Schedule of net periodic benefit cost | December 31, 2023 2022 2021 (in thousands) Interest cost $ 22 $ 972 $ 988 Expected return on Plan assets — — (1,509) Amortization of net losses 226 1,010 808 Settlement loss 18,286 2,921 — Net periodic benefit cost $ 18,534 $ 4,903 $ 287 |
Schedule of amounts recognized in other comprehensive loss | December 31, 2023 2022 2021 (in thousands) Net (loss) gain $ (3,964) $ 2,939 $ 4,169 Amortization of net loss (226) (1,010) (808) Settlement loss (18,286) (2,921) — Amount recognized in accumulated other comprehensive (loss) income $ (22,476) $ (992) $ 3,361 |
Schedule of weighted average assumptions | December 31, 2023 2022 2021 Projected Benefit Obligation Discount rate (1) (1) (1) Rate of compensation increase N/A N/A N/A Net Benefit Cost: Discount rate N/A 4.86 % 2.50 % Expected return on Plan assets N/A 0.0 % 4.00 % Rate of compensation increase N/A N/A N/A (1) As of December 31, 2023, there was no liability in the plan and therefore, a discount rate does not apply. Projected benefit obligation as of December 31, 2022, and 2021 reflects proposed termination of the Plan and is calculated based on various assumptions in accordance with the Plan agreement. |
Schedule of weighted average asset allocation of plan assets | Percentage of Plan Assets December 31, 2022 Asset Category Cash and cash equivalents 3.7 % Fixed income securities 96.3 % Total 100.0 % |
Schedule of Fair Value Hierarchy | Fair Value Hierarchy as of December 31, 2022: Investments (in thousands) Total Level 1 Level 2 Cash and Cash Equivalents (1) $ 740 $ 740 $ — Fixed Income Securities (2) 19,301 — 19,301 Total Assets in the Fair Value Hierarchy $ 20,041 $ 740 $ 19,301 Investments measured at Net Asset Value — Investments at Fair Value $ 20,041 (1) Cash and cash equivalents, which are used to pay benefits and Plan administrative expenses, are held in money market funds. (2) Fixed income securities are primarily valued using a market approach with inputs that include broker quotes, benchmark yields, base spreads and reported trades. Subsequent to December 31, 2022 these securities were liquidated to fund the annuity purchases. |
Schedule of summary of the changes in non-vested restricted shares | The following is a summary of the changes in non-vested restricted shares for the year ended December 31, 2023: Weighted Average Shares Grant-Date Fair Value Non-vested shares at January 1, 2023 3,248,728 $ 6.87 Granted 1,235,728 9.50 Vested (859,485) 8.63 Forfeited (92,786) 7.74 Non-vested shares at December 31, 2023 3,532,185 $ 7.35 The following is a summary of the changes in non-vested restricted shares for the year ended December 31, 2022: Weighted Average Shares Grant-Date Fair Value Non-vested shares at January 1, 2022 2,619,691 $ 7.89 Granted 1,254,276 6.72 Vested (510,084) 11.86 Forfeited (115,155) 6.29 Non-vested shares at December 31, 2022 3,248,728 $ 6.87 |
Business Segment and Entity W_2
Business Segment and Entity Wide Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
BUSINESS SEGMENT INFORMATION | |
Schedule of operating segment revenues by major service lines | (in thousands) 2023 2022 2021 Technical Services: Pressure Pumping $ 771,542 $ 846,939 $ 369,028 Downhole Tools 397,341 374,081 247,019 Coiled Tubing 152,484 140,889 88,946 Cementing 64,481 21,178 10,111 Nitrogen 47,306 39,596 38,773 Snubbing 26,345 28,028 15,408 All other 56,638 65,652 45,761 Total Technical Services $ 1,516,137 $ 1,516,363 $ 815,046 Support Services: Rental Tools $ 73,301 $ 62,780 $ 32,167 All other 28,036 22,619 17,716 Total Support Services $ 101,337 $ 85,399 $ 49,883 Total revenues $ 1,617,474 $ 1,601,762 $ 864,929 |
Schedule of segment reporting information by segment | Gain on Pension Technical Support disposition of Settlement (in thousands) Services Services Corporate assets, net charges Total 2023 Revenues $ 1,516,137 $ 101,337 $ — $ — $ — $ 1,617,474 Operating income (loss) 245,904 26,461 (18,473) 9,344 (18,286) 244,950 Capital expenditures 160,799 15,634 4,572 — — 181,005 Depreciation and amortization 97,773 10,293 57 — — 108,123 Identifiable assets 867,550 81,754 337,541 — — 1,286,845 2022 Revenues $ 1,516,363 $ 85,399 $ — $ — $ — $ 1,601,762 Operating income (loss) 281,622 18,095 (17,660) 8,804 (2,921) 287,940 Capital expenditures 126,327 12,320 905 — — 139,552 Depreciation and amortization 73,016 9,840 161 — — 83,017 Identifiable assets 823,434 80,104 225,475 — — 1,129,013 2021 Revenues $ 815,046 $ 49,883 $ — $ — $ — $ 864,929 Operating income (loss) 24,434 (5,725) (13,300) 10,882 — 16,291 Capital expenditures 59,316 7,012 1,317 — — 67,645 Depreciation and amortization 62,667 9,752 267 — — 72,686 Identifiable assets 580,406 69,345 214,614 — — 864,365 |
Schedule of revenue by geographical location | (in thousands) 2023 2022 2021 United States revenues $ 1,588,774 $ 1,569,160 $ 833,686 International revenues 28,700 32,602 31,243 Total revenues $ 1,617,474 $ 1,601,762 $ 864,929 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases. | |
Schedule of assets and liabilities related to operating leases | December 31, 2023 2022 (in thousands) Assets: Operating lease right-of-use assets $ 24,537 $ 28,864 Finance lease right-of-use assets 1,036 — Total lease assets $ 25,573 $ 28,864 Liabilities: Current portion of operating leases $ 7,367 $ 10,728 Current portion of finance lease liabilities and finance obligations 375 — Long-term finance lease liabilities 819 — Long-term operating lease liabilities 18,600 19,517 Total lease liabilities $ 27,161 $ 19,517 |
Schedule of lease cost | Year ended December 31, 2023 2022 2021 (in thousands) Finance lease cost Amortization of leased assets $ 129 $ 3,390 $ 1,452 Interest on lease liabilities 13 283 116 Total finance lease cost $ 142 $ 3,673 $ 1,568 Interest on finance obligation $ 35 $ — $ — Operating lease cost $ 15,096 $ 9,615 $ 7,580 Short-term lease cost 1,862 9,192 3,626 Variable lease cost 774 647 772 Sublease income (1,400) (1,021) (831) Total operating lease cost $ 16,332 $ 18,433 $ 11,147 Total lease cost $ 16,509 $ 22,106 $ 12,715 |
Schedule of other information of leases | Year ended December 31, 2023 2022 2021 (in thousands) Finance lease cost Amortization of leased assets $ 129 $ 3,390 $ 1,452 Interest on lease liabilities 13 283 116 Total finance lease cost $ 142 $ 3,673 $ 1,568 Interest on finance obligation $ 35 $ — $ — Operating lease cost $ 15,096 $ 9,615 $ 7,580 Short-term lease cost 1,862 9,192 3,626 Variable lease cost 774 647 772 Sublease income (1,400) (1,021) (831) Total operating lease cost $ 16,332 $ 18,433 $ 11,147 Total lease cost $ 16,509 $ 22,106 $ 12,715 Other Information: As of December 31, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities – operating leases (in thousands) $ 12,475 $ 8,742 Cash paid for amounts included in the measurement of lease liabilities – finance lease and finance obligations (in thousands) $ 515 $ — ROU assets obtained in exchange for operating lease liabilities (in thousands) $ 8,151 $ 12,882 Weighted average remaining lease term – finance lease (years) 4.00 — Weighted average remaining lease term – operating leases (years) 5.06 5.14 Weighted average remaining term – finance obligations (months) 8.00 — Weighted average discount rate – finance lease 2.3 % — % Weighted average discount rate – operating leases 4.42 % 3.93 % Weighted average discount rate – finance obligations 8.40 % — % |
Schedule of maturity of lease liabilities and finance obligations | As of December 31, 2023 (in thousands) 2024 $ 9,197 2025 5,856 2026 4,957 2027 3,863 2028 2,291 Thereafter 4,487 Total lease payments 30,651 Less: Amounts representing interest (3,490) Present value of lease liabilities $ 27,161 |
Significant Accounting Polici_4
Significant Accounting Policies - Common Stock (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
RECENT ACCOUNTING STANDARDS | ||
Common stock, shares authorized (in shares) | 349,000,000 | 349,000,000 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Votes per share owned | one |
Significant Accounting Polici_5
Significant Accounting Policies - Preferred Stock (Details) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
RECENT ACCOUNTING STANDARDS | ||
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Significant Accounting Polici_6
Significant Accounting Policies - Dividends (Details) - Subsequent Event. | Jan. 23, 2024 $ / shares |
Dividends | |
Dividends payable, date to be payable | Mar. 11, 2024 |
Cash dividend payable (in dollars per share) | $ 0.04 |
Dividend payable, date declared | Feb. 09, 2024 |
Significant Accounting Polici_7
Significant Accounting Policies - Concentration of Credit Risk (Details) - customer | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Major Customer | Customer concentration risk | Revenues | |||
Concentration of Credit Risk | |||
Customers (in customers) | 1 | ||
Concentration risk (in percent) | 11% | ||
Major Customer | Customer concentration risk | Accounts receivable | |||
Concentration of Credit Risk | |||
Customers (in customers) | 1 | ||
Concentration risk (in percent) | 10% | ||
Customer | Revenues | |||
Concentration of Credit Risk | |||
Customers (in customers) | 0 | ||
Customer | Customer concentration risk | Revenues | |||
Concentration of Credit Risk | |||
Customers (in customers) | 0 | 0 | |
Concentration risk (in percent) | 10% | 10% | |
Customer | Customer concentration risk | Accounts receivable | |||
Concentration of Credit Risk | |||
Customers (in customers) | 0 | 0 | |
Concentration risk (in percent) | 10% |
Significant Accounting Polici_8
Significant Accounting Policies - Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
RECENT ACCOUNTING STANDARDS | |||
Gain on available for sale security | $ 18 | $ 107 | $ 65 |
Significant Accounting Polici_9
Significant Accounting Policies - Accounts Receivable (Details) | Dec. 31, 2023 |
RECENT ACCOUNTING STANDARDS | |
Number of days threshold | 60 days |
Significant Accounting Polic_10
Significant Accounting Policies - Property, Plant and Equipment (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Property, Plant and Equipment | |
Long lived asset impairments | $ 0 |
Operating equipment | Minimum | |
Property, Plant and Equipment | |
Useful lives (in years) | 3 years |
Operating equipment | Maximum | |
Property, Plant and Equipment | |
Useful lives (in years) | 20 years |
Buildings and leasehold improvements | Minimum | |
Property, Plant and Equipment | |
Useful lives (in years) | 15 years |
Buildings and leasehold improvements | Maximum | |
Property, Plant and Equipment | |
Useful lives (in years) | 39 years |
Furniture and fixtures | Minimum | |
Property, Plant and Equipment | |
Useful lives (in years) | 5 years |
Furniture and fixtures | Maximum | |
Property, Plant and Equipment | |
Useful lives (in years) | 7 years |
Computer software | |
Property, Plant and Equipment | |
Useful lives (in years) | 5 years |
Vehicles | Minimum | |
Property, Plant and Equipment | |
Useful lives (in years) | 3 years |
Vehicles | Maximum | |
Property, Plant and Equipment | |
Useful lives (in years) | 5 years |
Significant Accounting Polic_11
Significant Accounting Policies - Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Jul. 01, 2023 | |
Segment information: | |||
Goodwill | $ 50,824 | $ 32,150 | |
Goodwill impairment | 0 | 0 | |
Spinnaker | |||
Segment information: | |||
Goodwill | 18,674 | $ 18,674 | |
Technical Services | |||
Segment information: | |||
Goodwill | 49,666 | 30,992 | |
Technical Services | Spinnaker | |||
Segment information: | |||
Goodwill | 18,674 | ||
Support Services | |||
Segment information: | |||
Goodwill | $ 1,158 | $ 1,158 |
Significant Accounting Polic_12
Significant Accounting Policies - Advertising (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
RECENT ACCOUNTING STANDARDS | |||
Advertising expense | $ 2.4 | $ 2 | $ 1.1 |
Significant Accounting Polic_13
Significant Accounting Policies - Earnings per share (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
RECENT ACCOUNTING STANDARDS | |||
Net income available for stockholders | $ 195,113 | $ 218,363 | $ 7,217 |
Less: Adjustments for losses attributable to participating securities | (3,099) | (3,197) | (89) |
Net income used in calculating earnings per share | $ 192,014 | $ 215,166 | $ 7,128 |
Weighted average shares outstanding (including participating securities) | 216,472 | 216,518 | 215,646 |
Adjustment for participating securities | (3,545) | (3,187) | (2,656) |
Shares used in calculating basic earnings per share | 212,927 | 213,331 | 212,990 |
Business Acquisition - Narrativ
Business Acquisition - Narrative (Details) - Spinnaker $ in Thousands | Jul. 01, 2023 USD ($) item facility | Dec. 31, 2023 USD ($) |
BUSINESS ACQUISITIONS | ||
Number of facilities located | facility | 2 | |
Number of full service cementing spreads | item | 18 | |
Purchase price | $ 79,316 | |
Percent of equity acquired | 100% | |
Cash | $ 76,800 | |
Payoff | 2,000 | |
Assumption of finance obligations | $ 518 | |
Acquisition-related transaction costs | $ 767 |
Business Acquisition - Estimate
Business Acquisition - Estimated fair values of the acquired assets and assumed liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 01, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
BUSINESS ACQUISITIONS | |||
Goodwill | $ 50,824 | $ 32,150 | |
Total cash consideration | 78,798 | ||
Spinnaker | |||
BUSINESS ACQUISITIONS | |||
Accounts receivable | $ 12,836 | ||
Inventories | 1,373 | ||
Prepaid and other current assets | 384 | ||
Accounts payable | (4,499) | ||
Property, plant and equipment | 37,374 | ||
Operating lease right-of-use assets | 46 | ||
Current portion of operating lease liabilities | (31) | ||
Long-term operating lease liabilities | (15) | ||
Finance lease right-of-use assets | 1,165 | ||
Current portion of finance lease liabilities | (247) | ||
Long-term finance lease liabilities | (944) | ||
Goodwill | 18,674 | $ 18,674 | |
Other intangibles | 13,200 | ||
Total consideration | 79,316 | ||
Less: Assumption of finance obligations | (518) | ||
Total cash consideration | $ 78,798 |
Business Acquisition - Leases (
Business Acquisition - Leases (Details) - Spinnaker | Jul. 01, 2023 |
BUSINESS ACQUISITIONS | |
Remaining term of finance lease | 4 years 6 months |
Remaining term of operating lease | 1 year 6 months |
Business Acquisition - Fair val
Business Acquisition - Fair values assigned to identifiable intangible assets (Details) $ in Thousands | Jul. 01, 2023 USD ($) |
Fair values assigned to identifiable intangible assets | |
Fair Value | $ 13,200 |
Customer relationships | |
Fair values assigned to identifiable intangible assets | |
Fair Value | $ 10,000 |
Weighted-Average Amortization Period (Years) | 10 years |
Trade Names and Trademarks | |
Fair values assigned to identifiable intangible assets | |
Fair Value | $ 3,200 |
Weighted-Average Amortization Period (Years) | 10 years |
Business Acquisition - Revenues
Business Acquisition - Revenues and Net income from the acquisition date (Details) $ in Thousands | 6 Months Ended |
Dec. 31, 2023 USD ($) | |
BUSINESS ACQUISITIONS | |
Revenues | $ 44,830 |
Net income | $ 4,727 |
Business Acquisition - Unaudite
Business Acquisition - Unaudited supplemental pro forma financial information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
BUSINESS ACQUISITIONS | ||
Revenues | $ 1,669,231 | $ 1,689,559 |
Net income | $ 204,222 | $ 234,284 |
Revenues - Payment Terms (Detai
Revenues - Payment Terms (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Minimum | |
REVENUES | |
Revenue satisfaction period | 30 days |
Maximum | |
REVENUES | |
Revenue satisfaction period | 60 days |
Revenues - Disaggregation of re
Revenues - Disaggregation of revenues (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of revenue: | |||
Total revenues | $ 1,617,474 | $ 1,601,762 | $ 864,929 |
Oilfield services transferred at a point in time | |||
Disaggregation of revenue: | |||
Total revenues | 0 | 0 | 0 |
Oilfield services transferred over time | |||
Disaggregation of revenue: | |||
Total revenues | $ 1,617,474 | $ 1,601,762 | $ 864,929 |
Revenues - Contract balances (D
Revenues - Contract balances (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Disaggregation of revenue: | ||
Unearned Revenue | $ 15,743 | |
Accounts receivable | ||
Disaggregation of revenue: | ||
Unbilled trade receivables | 59,831 | $ 103,498 |
Unearned Revenue | $ 15,700 | $ 0 |
Depreciation and Amortization_2
Depreciation and Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Total | $ 108,123 | $ 83,017 | $ 72,686 |
Cost of revenues | |||
Total | 97,685 | 74,294 | 63,068 |
Selling, general and administrative expenses | |||
Total | $ 10,438 | $ 8,723 | $ 9,618 |
Accounts Receivable - Accounts
Accounts Receivable - Accounts receivable, net (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Accounts Receivable. | ||
Billed | $ 271,515 | $ 315,332 |
Unbilled | 59,831 | 103,498 |
Other receivables | 678 | 4,816 |
Total | 332,024 | 423,646 |
Less: allowance for credit losses | (7,109) | (7,078) |
Accounts receivable, net | $ 324,915 | $ 416,568 |
Current Expected Credit Losse_2
Current Expected Credit Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Allowance for doubtful accounts rollforward | ||
Beginning balance | $ 7,078 | $ 6,765 |
Provision for current expected credit losses | 2,656 | 2,029 |
Write-offs | (2,737) | (1,752) |
Recoveries collected (net of expenses) | 112 | 36 |
Ending balance | $ 7,109 | $ 7,078 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
INVENTORIES | ||
Raw materials and supplies | $ 109,872 | $ 95,384 |
Finished goods | 1,032 | 1,723 |
Total inventory | $ 110,904 | $ 97,107 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment | ||
Gross property, plant and equipment | $ 1,246,072 | $ 1,108,427 |
Less: accumulated depreciation | (810,933) | (775,334) |
Net property, plant and equipment | 435,139 | 333,093 |
Land | ||
Property, Plant and Equipment | ||
Gross property, plant and equipment | 18,165 | 17,287 |
Buildings and leasehold improvements | ||
Property, Plant and Equipment | ||
Gross property, plant and equipment | 129,513 | 120,506 |
Operating equipment | ||
Property, Plant and Equipment | ||
Gross property, plant and equipment | 784,826 | 683,027 |
Computer software | ||
Property, Plant and Equipment | ||
Gross property, plant and equipment | 19,535 | 22,194 |
Furniture and fixtures | ||
Property, Plant and Equipment | ||
Gross property, plant and equipment | 5,298 | 5,480 |
Vehicles | ||
Property, Plant and Equipment | ||
Gross property, plant and equipment | $ 288,735 | $ 259,933 |
Property, Plant and Equipment -
Property, Plant and Equipment - Depreciation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment | |||
Depreciation | $ 108,100 | $ 83,000 | $ 72,700 |
Accounts payable | 85,036 | 115,213 | |
Inventory to property, plant and equipment transfer amount | 10,900 | 9,900 | |
Property and Equipment | |||
Property, Plant and Equipment | |||
Accounts payable | $ 9,000 | $ 9,300 |
Other Intangibles, net (Details
Other Intangibles, net (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
OTHER INTANGIBLES, NET | ||
Gross Carrying Amount | $ 16,021 | $ 2,821 |
Accumulated Amortization | (3,196) | (1,737) |
Customer relationships | ||
OTHER INTANGIBLES, NET | ||
Gross Carrying Amount | 10,000 | |
Accumulated Amortization | (500) | |
Trade Names and Trademarks | ||
OTHER INTANGIBLES, NET | ||
Gross Carrying Amount | 3,519 | 319 |
Accumulated Amortization | (479) | (294) |
Software licenses | ||
OTHER INTANGIBLES, NET | ||
Gross Carrying Amount | 2,202 | 2,202 |
Accumulated Amortization | (1,917) | (1,143) |
Patents and technology | ||
OTHER INTANGIBLES, NET | ||
Gross Carrying Amount | 300 | 300 |
Accumulated Amortization | $ (300) | $ (300) |
Other Intangibles, net - Amorti
Other Intangibles, net - Amortization expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
OTHER INTANGIBLES, NET | |||
Amortization of finite-lived intangible assets | $ 1,459 | $ 796 | $ 27 |
Other Intangibles, net - Estima
Other Intangibles, net - Estimated amortization expenses (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Estimated amortization expenses | |
2024 | $ 1.7 |
2025 | 1.3 |
2026 | 1.3 |
2027 | 1.3 |
2028 | $ 1.3 |
Income Taxes - Summary of compo
Income Taxes - Summary of components of provision (benefit) for income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current provision (benefit): | |||
Federal | $ 45,146 | $ 47,744 | $ 4,946 |
State | 6,502 | 3,164 | (1,387) |
Foreign | 835 | 865 | 784 |
Deferred provision: | |||
Federal | 7,116 | 14,026 | 2,287 |
State | 1,531 | 5,470 | 2,601 |
Total income tax provision | $ 61,130 | $ 71,269 | $ 9,231 |
Income Taxes - Summary of recon
Income Taxes - Summary of reconciliation between federal statutory rate and effective tax rate (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
INCOME TAXES | |||
Federal statutory rate | 21% | 21% | 21% |
State income taxes, net of federal benefit | 2.10% | 1.90% | 2.90% |
Foreign taxes, net of federal benefit | 0.30% | 0.30% | 5.10% |
Tax credits | (0.30%) | (0.10%) | (3.50%) |
Change in contingencies | 0.10% | 8.60% | |
Non-deductible expenses | 0.80% | 0.70% | (2.80%) |
Adjustments related to CARES Act | 3.20% | ||
Change in estimated deferred rate | 0.40% | 10.20% | |
Adjustments related to vesting of restricted stock | (0.10%) | 0.20% | 7.10% |
Other | 0.20% | 4.30% | |
Effective tax rate | 23.90% | 24.60% | 56.10% |
Income Taxes - Summary of signi
Income Taxes - Summary of significant components of deferred tax assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Self-insurance | $ 4,303 | $ 3,051 |
Long-term retirement plan | 5,101 | 5,237 |
State net operating loss carryforwards | 1,520 | 1,960 |
Allowance for credit losses | 1,634 | 1,757 |
Stock-based compensation | 1,414 | 2,531 |
Inventory reserve | 3,330 | 3,290 |
Lease liability | 5,777 | 6,701 |
Capitalized Research and Development | 3,066 | 1,041 |
Valuation allowance | (1,591) | (990) |
All others, net | 3,126 | 2,386 |
Gross deferred tax assets | 27,680 | 26,964 |
Deferred tax liabilities: | ||
Depreciation | (66,784) | (51,494) |
Right of use asset | (5,461) | (6,397) |
Goodwill amortization | (6,725) | (6,546) |
Gross deferred tax liabilities | (78,970) | (64,437) |
Net deferred tax liabilities | $ (51,290) | $ (37,473) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income tax carry forwards | |||
Income tax payments (refunds) | $ 62,226 | $ 35,809 | $ (20,903) |
State and Local Jurisdiction | |||
Income tax carry forwards | |||
Net operating loss carryforwards | $ 31,000 |
Income Taxes - Unrecognized (De
Income Taxes - Unrecognized (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Unrecognized Tax Benefits | ||
Balance at January 1 | $ 1,917 | $ 1,737 |
Additions (reductions) based on tax positions related to the current year | 337 | 197 |
Additions (reductions) for tax positions of prior years | (86) | (17) |
Balance at December 31 | $ 2,168 | $ 1,917 |
Long-Term Debt - Credit Facilit
Long-Term Debt - Credit Facility (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) Lender | Dec. 31, 2022 USD ($) | |
Revolving credit facility | ||
Number of additional credit lenders | Lender | 4 | |
SOFR | Minimum | ||
Revolving credit facility | ||
Additional increase (decrease) in basis points | 0.10% | |
SOFR | Maximum | ||
Revolving credit facility | ||
Additional increase (decrease) in basis points | 0.30% | |
Amendment | ||
Revolving credit facility | ||
Minimum EBITDA | $ 50,000 | |
Maximum consolidated leverage ratio | 2.50 | |
Minimum debt service coverage ratio | 2 | |
Revolving credit facility | ||
Revolving credit facility | ||
Maximum borrowing capacity | $ 100,000 | |
Unamortized origination and other costs | 330 | $ 257 |
Outstanding debt | 0 | $ 0 |
Available credit facility | $ 83,400 | |
Revolving credit facility | Minimum | ||
Revolving credit facility | ||
Annual fee (as a percent) | 0.20% | |
Revolving credit facility | Maximum | ||
Revolving credit facility | ||
Annual fee (as a percent) | 0.30% | |
Revolving credit facility | Base Rate | Federal Funds Rate | ||
Revolving credit facility | ||
Basis points added | 0.50% | |
Revolving credit facility | Amendment | SOFR | ||
Revolving credit facility | ||
Margin rate | 0.25% | |
Revolving credit facility | Amendment | Eurodollar Rate | SOFR | Minimum | ||
Revolving credit facility | ||
Basis points added | 1.25% | |
Revolving credit facility | Amendment | Eurodollar Rate | SOFR | Maximum | ||
Revolving credit facility | ||
Basis points added | 2.25% | |
Revolving credit facility | Amendment | Base Rate | ||
Revolving credit facility | ||
Floor interest rate | 1% | |
Revolving credit facility | Amendment | Base Rate | Minimum | ||
Revolving credit facility | ||
Basis points added | 0.25% | |
Revolving credit facility | Amendment | Base Rate | Maximum | ||
Revolving credit facility | ||
Basis points added | 1.25% | |
Revolving credit facility | Amendment | Base Rate | SOFR | ||
Revolving credit facility | ||
Basis points added | 1% | |
Revolving credit facility | Amendment | Base Rate | SOFR | Maximum | ||
Revolving credit facility | ||
Basis points added | 1% | |
Revolving credit facility | Letter of credit | ||
Revolving credit facility | ||
Maximum borrowing capacity | $ 35,000 | |
Outstanding debt | 16,600 | |
Revolving credit facility | Letter of credit | Amendment | ||
Revolving credit facility | ||
Maximum borrowing capacity | 400,000 | |
Revolving credit facility | Swingline | ||
Revolving credit facility | ||
Maximum borrowing capacity | $ 35,000 |
Long-Term Debt - Interest incur
Long-Term Debt - Interest incurred (Details) - Revolving credit facility - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revolving credit facility | |||
Interest incurred | $ 242 | $ 246 | $ 257 |
Interest paid | $ 166 | $ 170 | $ 166 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
AOCI rollforward | ||
Balance | $ (19,939) | $ (20,708) |
Change during the period: | ||
Before-tax amount | 4,227 | (2,929) |
Tax benefit | (911) | 671 |
Pension settlement loss, net of taxes | 14,080 | 2,249 |
Reclassification adjustment, net of taxes: | ||
Amortization of net loss | 174 | 778 |
Total activity for the period | 17,570 | 769 |
Balance | (2,369) | (19,939) |
Pension Adjustment | ||
AOCI rollforward | ||
Balance | (17,307) | (18,071) |
Change during the period: | ||
Before-tax amount | 3,964 | (2,934) |
Tax benefit | (911) | 671 |
Pension settlement loss, net of taxes | 14,080 | 2,249 |
Reclassification adjustment, net of taxes: | ||
Amortization of net loss | 174 | 778 |
Total activity for the period | 17,307 | 764 |
Balance | (17,307) | |
Foreign Currency Translation | ||
AOCI rollforward | ||
Balance | (2,632) | (2,637) |
Change during the period: | ||
Before-tax amount | 263 | 5 |
Reclassification adjustment, net of taxes: | ||
Total activity for the period | 263 | 5 |
Balance | $ (2,369) | $ (2,632) |
Cash Paid for Common Stock Pu_3
Cash Paid for Common Stock Purchased and Retired (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2023 | |
CASH PAID FOR COMMON STOCK PURCHASED AND RETIRED | |||
No. of shares | 2,725,679 | 158,649 | |
Avg. price | $ 7.74 | $ 5.78 | |
Total cost | $ 21,087,650 | $ 917,645 | |
Stock buyback program | |||
CASH PAID FOR COMMON STOCK PURCHASED AND RETIRED | |||
Stock repurchase program | 49,578,125 | ||
Remaining stock repurchase program | 13,779,128 | ||
Stock buyback program | Board of Directors | |||
CASH PAID FOR COMMON STOCK PURCHASED AND RETIRED | |||
Stock repurchase program | 8,000,000 | ||
Shares purchased for withholding taxes | |||
CASH PAID FOR COMMON STOCK PURCHASED AND RETIRED | |||
No. of shares | 256,623 | 158,649 | |
Avg. price | $ 9.24 | $ 5.78 | |
Total cost | $ 2,369,988 | $ 917,645 | |
Open market purchases | |||
CASH PAID FOR COMMON STOCK PURCHASED AND RETIRED | |||
No. of shares | 2,469,056 | ||
Avg. price | $ 7.58 | ||
Total cost | $ 18,717,662 |
Fair Value Disclosures - Financ
Fair Value Disclosures - Financial instruments measured at fair value on recurring basis (Details) - Fair value on a recurring basis - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets: | ||
Equity securities | $ 4 | $ 305 |
Investments measured at net asset value | 26,772 | 24,175 |
Level 1 | ||
Assets: | ||
Equity securities | 4 | 305 |
Level 2 | ||
Assets: | ||
Equity securities | 0 | 0 |
Level 3 | ||
Assets: | ||
Equity securities | $ 0 | $ 0 |
Fair Value Disclosures - Additi
Fair Value Disclosures - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Revolving credit facility | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Letters of credit outstanding amount | $ 0 | $ 0 |
Employee Benefit Plans - Funded
Employee Benefit Plans - Funded status of Retirement Income Plan and amounts recognized in consolidated balance sheets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Contribution by employer for retirement income plan | $ 5,400,000 | ||
Settlement loss | (18,286,000) | $ (2,921,000) | |
Accumulated benefit obligation at end of year | 29,651,000 | ||
Change in projected benefit obligation: | |||
Projected benefit obligation at end of year | 0 | ||
Change in Plan assets: | |||
Employer contribution | 5,400,000 | ||
Fair value of Plan assets at end of year | 0 | ||
Retirement Income Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contribution by employer for retirement income plan | 5,454,000 | ||
Settlement loss | (18,286,000) | (2,921,000) | |
Change in projected benefit obligation: | |||
Benefit obligation at beginning of year | 29,651,000 | 41,038,000 | |
Service cost | 0 | 0 | |
Interest cost | 22,000 | 972,000 | $ 988,000 |
Actuarial (gain) loss | (3,715,000) | (5,258,000) | |
Benefits paid | (836,000) | (3,248,000) | |
Transfer of assets | 524,000 | ||
Refund related to Plan trust dissolution | (310,000) | ||
Settlement | (25,122,000) | (3,853,000) | |
Projected benefit obligation at end of year | 29,651,000 | 41,038,000 | |
Change in Plan assets: | |||
Fair value of Plan assets at beginning of year | 20,041,000 | 35,339,000 | |
Actual return on Plan assets | 249,000 | (8,197,000) | |
Employer contribution | 5,454,000 | ||
Benefits paid | (836,000) | (3,248,000) | |
Settlement | (25,122,000) | (3,853,000) | |
Fair value of Plan assets at end of year | 20,041,000 | $ 35,339,000 | |
Funded status at end of year | (9,610,000) | ||
AMOUNTS (PRE-TAX) RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) CONSIST OF: | |||
Net loss | 0 | 22,476,000 | |
Prior service cost (credit) | 0 | 0 | |
Net transition obligation (asset) | 0 | 0 | |
Before-tax amount | $ 0 | $ 22,476,000 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of net periodic benefit cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
PENSION AND RETIREMENT PLANS LIABILITIES | |||
Settlement loss | $ 18,286 | $ 2,921 | |
Retirement Income Plan | |||
PENSION AND RETIREMENT PLANS LIABILITIES | |||
Interest cost | 22 | 972 | $ 988 |
Expected return on Plan assets | (1,509) | ||
Amortization of net losses | 226 | 1,010 | 808 |
Settlement loss | 18,286 | 2,921 | |
Net periodic benefit cost | 18,534 | 4,903 | 287 |
Decreases (increases) in amount recognized in AOCI | $ (22,476) | $ (992) | $ 3,361 |
Employee Benefit Plans - Pre-ta
Employee Benefit Plans - Pre-tax amounts recognized in comprehensive loss (Details) - Retirement Income Plan - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | |||
Net loss (gain) | $ (3,964) | $ 2,939 | $ 4,169 |
Amortization of net loss | (226) | (1,010) | (808) |
Settlement Loss | (18,286) | (2,921) | |
Amount recognized in accumulated other comprehensive (loss) income | $ 22,476 | $ 992 | $ (3,361) |
Employee Benefit Plans - Weight
Employee Benefit Plans - Weighted average assumptions used to determine projected benefit obligation and net benefit cost (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2023 | |
Net Benefit Cost: | |||
Defined Benefit Plan | $ 0 | ||
Fair value of plan assets | $ 0 | ||
Retirement Income Plan | |||
Projected Benefit Obligation: | |||
Rate of compensation increase | 0% | 0% | |
Net Benefit Cost: | |||
Discount rate | 4.86% | 2.50% | |
Expected return on plan assets | 0% | 4% | |
Rate of compensation increase | 0% | 0% | |
Defined Benefit Plan | $ 29,651,000 | $ 41,038,000 | |
Fair value of plan assets | $ 20,041,000 | $ 35,339,000 |
Employee Benefit Plans - Plan w
Employee Benefit Plans - Plan weighted average asset allocation by asset category along with target allocation for 2022 (Details) | Dec. 31, 2022 |
Defined Benefit Plan Disclosure [Line Items] | |
Percentage of Plan Assets | 100% |
Cash and cash equivalents | |
Defined Benefit Plan Disclosure [Line Items] | |
Percentage of Plan Assets | 3.70% |
Fixed income securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Percentage of Plan Assets | 96.30% |
Employee Benefit Plans - Plan a
Employee Benefit Plans - Plan assets using fair value hierarchy (Details) - Retirement Income Plan $ in Thousands | Dec. 31, 2022 USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
Investments measured at Net Asset Value | $ 0 |
Investments at Fair Value | 20,041 |
Cash and cash equivalents | |
Defined Benefit Plan Disclosure [Line Items] | |
Total Assets in the Fair Value Hierarchy | 740 |
Fixed income securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Total Assets in the Fair Value Hierarchy | 19,301 |
Investment | |
Defined Benefit Plan Disclosure [Line Items] | |
Total Assets in the Fair Value Hierarchy | 20,041 |
Level 1 | Cash and cash equivalents | |
Defined Benefit Plan Disclosure [Line Items] | |
Total Assets in the Fair Value Hierarchy | 740 |
Level 1 | Fixed income securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Total Assets in the Fair Value Hierarchy | 0 |
Level 1 | Investment | |
Defined Benefit Plan Disclosure [Line Items] | |
Total Assets in the Fair Value Hierarchy | 740 |
Level 2 | Cash and cash equivalents | |
Defined Benefit Plan Disclosure [Line Items] | |
Total Assets in the Fair Value Hierarchy | 0 |
Level 2 | Fixed income securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Total Assets in the Fair Value Hierarchy | 19,301 |
Level 2 | Investment | |
Defined Benefit Plan Disclosure [Line Items] | |
Total Assets in the Fair Value Hierarchy | $ 19,301 |
Employee Benefit Plans - SERP (
Employee Benefit Plans - SERP (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
PENSION AND RETIREMENT PLANS LIABILITIES | |||
Fair value of plan assets | $ 0 | ||
Non-qualified Supplemental Retirement Plan ("SERP") | |||
PENSION AND RETIREMENT PLANS LIABILITIES | |||
Variable life insurance policies investment amount | 49,300,000 | $ 45,400,000 | |
Fair value of plan assets | 26,800,000 | 24,200,000 | |
Trading gains (losses), net | 2,600,000 | (4,400,000) | $ 2,600,000 |
Trading gains (losses), net | $ 2,800,000 | (4,100,000) | 3,100,000 |
Retirement Income Plan | |||
PENSION AND RETIREMENT PLANS LIABILITIES | |||
Fair value of plan assets | $ 20,041,000 | $ 35,339,000 |
Employee Benefit Plans - 401(k)
Employee Benefit Plans - 401(k) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
EMPLOYEE BENEFIT PLANS | |||
Minimum percentage of annual contribution per employee | 1% | ||
Maximum percentage of annual contribution per employee | 25% | ||
Percentage of employer matching contributions for first 3% of annual compensations | 100% | ||
Percentage of employer matching contribution for next 3% of annual compensation | 50% | ||
Annual compensation | $ 1 | ||
Threshold limit percentage of employee compensation | 3% | ||
Minimum number of service years for employees to be fully vested | 2 years | ||
Employer contribution | $ 11,300,000 | $ 9,800,000 | $ 6,900,000 |
Employee Benefit Plans - Stock
Employee Benefit Plans - Stock Incentive Plans (Details) - Stock Incentive Plans - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Stock incentive plans | |||
Common stock reserved for future issuance | 8,000,000 | ||
Period of stock options and restricted stock issued | 10 years | ||
Number of shares available for grant | 911,997 | 2,046,199 | |
Pre-tax stock-based employee compensation expense | $ 7.9 | $ 6.4 | $ 6.6 |
After tax stock-based employee compensation expense | $ 6.1 | $ 4.9 | $ 5.1 |
Employee Benefit Plans - Stoc_2
Employee Benefit Plans - Stock Options, Restricted Stock and Other Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Stock incentive plans | |||
Tax adjustment | $ (222,000) | $ 640,000 | |
Restricted Shares | |||
Stock incentive plans | |||
Weighted average grant date fair value (in dollars per share) | $ 9.50 | $ 6.72 | $ 3.87 |
Total fair value of shares vested | $ 7,800,000 | $ 2,900,000 | $ 1,800,000 |
Unrecognized compensation cost related to non-vested restricted shares | $ 13,800,000 | ||
Period for recognition of compensation cost related to non-vested restricted shares | 2 years 9 months 18 days | ||
Time Lapse Restricted Shares 2024 | |||
Stock incentive plans | |||
Vesting period | 3 years | ||
Time Lapse Restricted Shares 2023 | |||
Stock incentive plans | |||
Vesting period | 4 years | ||
Time Lapse Restricted Shares 2022 | |||
Stock incentive plans | |||
Vesting period | 5 years | ||
Time Lapse Restricted Shares Prior to 2022 | |||
Stock incentive plans | |||
Stock based compensation award, vesting percentage | 20% |
Employee Benefit Plans - Change
Employee Benefit Plans - Changes in non-vested restricted shares (Details) - Restricted Shares - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Shares | |||
Non-vested shares at Beginning | 3,248,728 | 2,619,691 | |
Granted | 1,235,728 | 1,254,276 | |
Vested | (859,485) | (510,084) | |
Forfeited | (92,786) | (115,155) | |
Non-vested shares at Ending | 3,532,185 | 3,248,728 | 2,619,691 |
Weighted Average Grant-Date Fair Value | |||
Non-vested shares at Beginning | $ 6.87 | $ 7.89 | |
Granted | 9.50 | 6.72 | $ 3.87 |
Vested | 8.63 | 11.86 | |
Forfeited | 7.74 | 6.29 | |
Non-vested shares at Ending | $ 7.35 | $ 6.87 | $ 7.89 |
Related Party Transactions - Ma
Related Party Transactions - Marine (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Related party transactions: | |||
Payment of amounts owed | $ (5,419) | ||
Marine Products | Transition Support Services agreement | |||
Related party transactions: | |||
Related party charges | 1,000 | $ 922 | $ 867 |
Receivables due | 120 | $ 26 | |
Amount owed for using assets in the Plan to settle participant liabilities | 524 | ||
Payment of amounts owed | $ 482 |
Related Party Transactions - Ot
Related Party Transactions - Other (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2015 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Related party transactions: | ||||
Rent and allocable fixed cost for corporate aircraft | $ 1,800,000 | $ 1,600,000 | ||
Rollins, Inc. | ||||
Related party transactions: | ||||
Related party purchases | $ 3,000 | 71,000 | $ 108,000 | |
Chief Executive Officer | Corporate Aircraft | ||||
Related party transactions: | ||||
Ownership percentage | 50% | |||
255 RC, LLC | ||||
Related party transactions: | ||||
Rent and allocable fixed cost for corporate aircraft | $ 200,000 | 200,000 | 200,000 | |
Undistributed earnings | 639,000 | |||
255 RC, LLC | Corporate Aircraft | ||||
Related party transactions: | ||||
Ownership percentage | 50% | |||
Marine Products | Corporate Aircraft | ||||
Related party transactions: | ||||
Ownership percentage | 50% | |||
255 RC, LLC and Marine Products | ||||
Related party transactions: | ||||
Investment in joint venture | $ 2,554,000 | |||
Lease agreement term (in years) | 5 years | |||
Other | ||||
Related party transactions: | ||||
Related party purchases | $ 1,800,000 | $ 1,800,000 | $ 1,300,000 |
Business Segment and Entity W_3
Business Segment and Entity Wide Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment information: | |||
Total revenues | $ 1,617,474 | $ 1,601,762 | $ 864,929 |
Operating Segments | |||
Segment information: | |||
Total revenues | 1,617,474 | 1,601,762 | 864,929 |
Technical Services | |||
Segment information: | |||
Total revenues | 1,516,137 | 1,516,363 | 815,046 |
Technical Services | Pressure Pumping | |||
Segment information: | |||
Total revenues | 771,542 | 846,939 | 369,028 |
Technical Services | Downhole Tools | |||
Segment information: | |||
Total revenues | 397,341 | 374,081 | 247,019 |
Technical Services | Coiled Tubing | |||
Segment information: | |||
Total revenues | 152,484 | 140,889 | 88,946 |
Technical Services | Cementing | |||
Segment information: | |||
Total revenues | 64,481 | 21,178 | 10,111 |
Technical Services | Nitrogen | |||
Segment information: | |||
Total revenues | 47,306 | 39,596 | 38,773 |
Technical Services | Snubbing | |||
Segment information: | |||
Total revenues | 26,345 | 28,028 | 15,408 |
Technical Services | All other | |||
Segment information: | |||
Total revenues | 56,638 | 65,652 | 45,761 |
Technical Services | Operating Segments | |||
Segment information: | |||
Total revenues | 1,516,137 | 1,516,363 | 815,046 |
Support Services | |||
Segment information: | |||
Total revenues | 101,337 | 85,399 | 49,883 |
Support Services | Rental Tools | |||
Segment information: | |||
Total revenues | 73,301 | 62,780 | 32,167 |
Support Services | All other | |||
Segment information: | |||
Total revenues | 28,036 | 22,619 | 17,716 |
Support Services | Operating Segments | |||
Segment information: | |||
Total revenues | $ 101,337 | $ 85,399 | $ 49,883 |
Business Segment and Entity W_4
Business Segment and Entity Wide Disclosures - Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues: | |||
Revenues | $ 1,617,474 | $ 1,601,762 | $ 864,929 |
Operating income: | |||
Operating income (loss) | 244,950 | 287,940 | 16,291 |
Capital expenditures | 181,005 | 139,552 | 67,645 |
Depreciation and amortization | 108,123 | 83,017 | 72,686 |
Identifiable assets | 1,286,845 | 1,129,013 | 864,365 |
Pension Settlement, Impairment and other charges | |||
Operating income: | |||
Operating income (loss) | (18,286) | (2,921) | |
Technical Services | |||
Revenues: | |||
Revenues | 1,516,137 | 1,516,363 | 815,046 |
Support Services | |||
Revenues: | |||
Revenues | 101,337 | 85,399 | 49,883 |
Corporate | |||
Operating income: | |||
Operating income (loss) | (18,473) | (17,660) | (13,300) |
Capital expenditures | 4,572 | 905 | 1,317 |
Depreciation and amortization | 57 | 161 | 267 |
Identifiable assets | 337,541 | 225,475 | 214,614 |
Segment reconciling item | |||
Operating income: | |||
Operating income (loss) | 9,344 | 8,804 | 10,882 |
Operating Segments | |||
Revenues: | |||
Revenues | 1,617,474 | 1,601,762 | 864,929 |
Operating Segments | Technical Services | |||
Revenues: | |||
Revenues | 1,516,137 | 1,516,363 | 815,046 |
Operating income: | |||
Operating income (loss) | 245,904 | 281,622 | 24,434 |
Capital expenditures | 160,799 | 126,327 | 59,316 |
Depreciation and amortization | 97,773 | 73,016 | 62,667 |
Identifiable assets | 867,550 | 823,434 | 580,406 |
Operating Segments | Support Services | |||
Revenues: | |||
Revenues | 101,337 | 85,399 | 49,883 |
Operating income: | |||
Operating income (loss) | 26,461 | 18,095 | (5,725) |
Capital expenditures | 15,634 | 12,320 | 7,012 |
Depreciation and amortization | 10,293 | 9,840 | 9,752 |
Identifiable assets | $ 81,754 | $ 80,104 | $ 69,345 |
Business Segment and Entity W_5
Business Segment and Entity Wide Disclosures - Geographic (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment information: | |||
Total revenues | $ 1,617,474 | $ 1,601,762 | $ 864,929 |
Operating Segments | |||
Segment information: | |||
Total revenues | 1,617,474 | 1,601,762 | 864,929 |
United States | |||
Segment information: | |||
Total revenues | 1,588,774 | 1,569,160 | 833,686 |
International | |||
Segment information: | |||
Total revenues | $ 28,700 | $ 32,602 | $ 31,243 |
Leases - Assets and liabilities
Leases - Assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets: | ||
Operating lease right-of-use assets | $ 24,537 | $ 28,864 |
Finance lease right-of-use assets | 1,036 | |
Total lease assets | 25,573 | 28,864 |
Liabilities | ||
Current portion of operating leases | 7,367 | 10,728 |
Current portion of finance lease liabilities and finance obligations | 375 | |
Long-term finance lease liabilities | 819 | |
Long-term operating lease liabilities | 18,600 | 19,517 |
Total lease liabilities | $ 27,161 | $ 19,517 |
Leases - Components of lease ex
Leases - Components of lease expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finance lease cost | |||
Amortization of leased assets | $ 129 | $ 3,390 | $ 1,452 |
Interest on lease liabilities | 13 | 283 | 116 |
Total finance lease cost | 142 | 3,673 | 1,568 |
Interest on finance obligation | 35 | ||
Operating lease cost | 15,096 | 9,615 | 7,580 |
Short-term lease cost | 1,862 | 9,192 | 3,626 |
Variable lease cost | 774 | 647 | 772 |
Sublease income | (1,400) | (1,021) | (831) |
Total operating lease cost | 16,332 | 18,433 | 11,147 |
Total lease cost | $ 16,509 | $ 22,106 | $ 12,715 |
Leases - Other information (Det
Leases - Other information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases. | ||
Cash paid for amounts included in the measurement of lease liabilities - operating leases (in thousands) | $ 12,475 | $ 8,742 |
Cash paid for amounts included in the measurement of lease liabilities - finance lease and finance obligations (in thousands) | 515 | |
ROU assets obtained in exchange for operating lease liabilities (in thousands) | $ 8,151 | $ 12,882 |
Weighted average remaining lease term - finance lease (years) | 4 years | 0 months |
Weighted average remaining lease term - operating leases (years) | 5 years 21 days | 5 years 1 month 20 days |
Weighted average remaining term - finance obligations (months) | 8 months | |
Weighted average discount rate - finance lease | 2.30% | |
Weighted average discount rate - operating leases | 4.42% | 3.93% |
Weighted average discount rate - finance obligations | 8.40% |
Leases - Future minimum lease p
Leases - Future minimum lease payments (Details) - ASU No. 2018-02, Leases (Topic 842) $ in Thousands | Dec. 31, 2023 USD ($) |
Lessee, Operating Lease, Liability, Payment, Due, Rolling Maturity | |
2024 | $ 9,197 |
2025 | 5,856 |
2026 | 4,957 |
2027 | 3,863 |
2028 | 2,291 |
Thereafter | 4,487 |
Total lease payments | 30,651 |
Less: Amounts representing interest | (3,490) |
Total operating lease liabilities | $ 27,161 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event | Jan. 23, 2024 $ / shares |
SUBSEQUENT EVENTS | |
Cash dividend payable (in dollars per share) | $ 0.04 |
Dividends payable, date to be payable | Mar. 11, 2024 |
Dividend payable, date declared | Feb. 09, 2024 |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Credit loss allowance for accounts receivable | |||
Movement in Valuation Allowances and Reserves | |||
Balance at Beginning of Period | $ 7,078 | $ 6,765 | $ 4,815 |
Charged to Costs and Expenses | 2,656 | 2,029 | 4,019 |
Net (Deductions) Recoveries | (2,625) | (1,716) | (2,069) |
Balance at End of Period | 7,109 | 7,078 | 6,765 |
Deferred tax asset valuation allowance | |||
Movement in Valuation Allowances and Reserves | |||
Balance at Beginning of Period | 990 | 865 | 490 |
Charged to Costs and Expenses | 601 | ||
Net (Deductions) Recoveries | 125 | 375 | |
Balance at End of Period | 1,591 | 990 | 865 |
Reserve for obsolete or slow moving inventory | |||
Movement in Valuation Allowances and Reserves | |||
Balance at Beginning of Period | 15,374 | 13,236 | 13,829 |
Charged to Costs and Expenses | 3,063 | 4,080 | 5,016 |
Net (Deductions) Recoveries | (2,512) | (1,942) | (5,609) |
Balance at End of Period | $ 15,925 | $ 15,374 | $ 13,236 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ 195,113 | $ 218,363 | $ 7,217 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |