Exhibit 99
[LOGO] RPC
An Oil & Gas Services Company
FOR IMMEDIATE RELEASE
RPC, Inc. Reports 2005 First Quarter Financial Results
o Revenues for the First Quarter Increased 15.4 Percent over Prior
Year
o Diluted EPS for the First Quarter Increased by 76.9 Percent to
$0.23, Compared to $0.13 in the First Quarter of the Prior Year
ATLANTA, April 27, 2005 -- RPC, Inc. (NYSE: RES) announced its unaudited results
for the first quarter ended March 31, 2005. RPC provides a broad range of
specialized oilfield services and equipment primarily to independent and major
oilfield companies engaged in the exploration, production and development of oil
and gas properties throughout the United States and in selected international
markets.
For the quarter ended March 31, 2005, revenues increased 15.4 percent to
$92,330,000 compared to $80,002,000 in the first quarter last year. Operating
profit for the quarter was $14,233,000 compared to $9,233,000 in the prior year.
Net income was $9,927,000, or $0.23 diluted earnings per share, compared to
$5,801,000 or $0.13 diluted earnings per share last year.
Cost of services rendered and goods sold was $50,411,000, or 54.6 percent of
revenues, during the first quarter of 2005, compared to $47,107,000, or 58.9
percent of revenues, in the prior year. The increase in these costs was due to
the variable nature of many of these expenses, including fuel costs, maintenance
and repair expenses, and materials and supplies expenses. As a percentage of
revenues, however, these costs decreased because of improved pricing and higher
equipment and personnel utilization and leveraging fixed costs over higher
revenues. Selling, general and administrative expenses increased by 21.7 percent
in the first quarter of 2005 to $18,406,000 from $15,126,000 in the prior year.
This increase was due primarily to higher salary and wage expenses and increased
incentive compensation consistent with higher activity levels and improved
profitability. These costs also increased due to increased public company
compliance costs. As a percentage of revenues, these costs increased to 19.9
percent in 2005 compared to 18.9 percent last year. Depreciation and
amortization were $9,280,000 during the quarter, 8.7 percent higher than last
year. This increase was due to the higher level of capital expenditures made
during the recent quarters. Other income in the first quarter increased to
$1,896,000 in 2005 compared to $149,000 last year due primarily to proceeds from
a litigation settlement.
"RPC's first quarter results reflect continued high activity levels, improved
pricing, and capacity growth in our strongest service lines," stated Richard A.
Hubbell, RPC's President and Chief Executive Officer. "The average domestic rig
count during the first quarter was 1,283, 14.7 percent higher than the same
period in 2004. The average price of oil increased almost 44 percent and the
average price of natural gas increased by more than 16 percent during the
quarter compared to the prior year, both of which served to drive the higher rig
count. Our domestic revenues grew compared to the prior year, due to increases
in capacity, utilization, and pricing. Our consolidated revenue growth rate was
impacted by a decline in our international revenues. Revenues declined in our
Kuwait operation, although this decline was partially offset by increases from
new business in China. In addition, the strength in our domestic oilfield
revenues compared to the prior year was partially offset by no revenue from our
domestic marine liftboat division and from a non-oilfield business unit, both of
which were sold subsequent to the end of the first quarter of 2004. We continued
to support our strong service lines by making over $13 million in capital
expenditures during the quarter, which enhanced our equipment's operating
condition and increased our capacity."
Page 2
1st Quarter 2005 Press Release
Summary of Segment Operating Performance
RPC's business segments are Technical Services and Support Services.
Technical Services includes RPC's oilfield service lines that utilize people and
equipment to perform value-added completion, production and maintenance services
directly to a customer's well. These services are generally directed toward
improving the flow of oil and natural gas from producing formations or to
address well control issues. The Technical Services include pressure pumping,
snubbing, coiled tubing, nitrogen, wireline, well control, downhole tools,
surface production equipment, casing installation services, and fishing tool
operations.
Support Services includes RPC's oilfield service lines that provide equipment
for customer use or services to assist customer operations. The equipment and
services offered include rental of drill pipe and related tools, pipe handling,
inspection and storage services and oilfield training services.
Both Technical Services and Support Services experienced stronger results due to
the increased drilling rig count and related customer activity. Technical
Services revenues rose 19.0 percent for the quarter compared to the prior year,
driven by higher activity, capacity and pricing in particular in pressure
pumping but also in other service lines in this segment, offset by decreases in
snubbing revenues due to declines in international revenues. Support Services
revenues rose by 22.7 percent during the quarter compared to the prior year.
This increase was driven by increased capacity and utilization in the rental
tool division, which is the largest service line within Support Services. This
increase was partially offset by no revenues from our marine liftboat division,
which was sold during the fourth quarter of 2004. Other revenues declined,
partially due to the sale in April 2004 of a non-oilfield business unit.
Corporate expenses increased primarily due to higher public company compliance
costs.
Three Months Ended March 31,
----------------------------
2005 2004
----------------------------
(in thousands)
Revenues:
Technical services $ 77,958 $ 65,486
Support services 14,355 11,700
Other 17 2,816
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Total revenues $ 92,330 $ 80,002
- ------------------------------------------------ -------- --------
Operating profit (loss):
Technical services $ 14,788 $ 11,150
Support services 2,171 139
Other (165) (211)
Corporate expenses (2,561) (1,845)
- ------------------------------------------------ -------- --------
Total operating profit (loss) $ 14,233 $ 9,233
- ------------------------------------------------ -------- --------
Other income, net 1,896 149
Interest expense, net (92) 25
- ------------------------------------------------ -------- --------
Income (loss) before income taxes $ 16,221 $ 9,357
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Page 3
1st Quarter 2005 Press Release
RPC provides a broad range of specialized oilfield services and equipment
primarily to independent and major oilfield companies engaged in the
exploration, production and development of oil and gas properties throughout the
United States, including the Gulf of Mexico, mid-continent, southwest and Rocky
Mountain regions, and in selected international markets. RPC's investor website
can be found at www.rpc.net.
For information about RPC, Inc., please contact:
BEN M. PALMER
Chief Financial Officer
404.321.2140
irdept@rpc.net
JIM LANDERS
Corporate Finance
404.321.2162
jlanders@rpc.net
Page 4
1st Quarter 2005 Press Release
RPC INCORPORATED AND SUBSIDIARIES
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CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per share data)
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Periods ended March 31, (Unaudited) First Quarter
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% BETTER
2005 2004 (WORSE)
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REVENUES $ 92,330 $ 80,002 15.4%
COSTS AND EXPENSES:
Cost of services rendered and goods sold 50,411 47,107 (7.0)
Selling, general and administrative expenses 18,406 15,126 (21.7)
Depreciation and amortization 9,280 8,536 (8.7)
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Operating profit 14,233 9,233 54.2
Interest (income) expense, net (92) 25 NM
Other income, net 1,896 149 NM
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Income before income taxes 16,221 9,357 73.4
Income tax provision 6,294 3,556 (77.0)
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NET INCOME $ 9,927 $ 5,801 71.1%
====================================================================================================================================
EARNINGS PER SHARE
Basic $ 0.23 $ 0.14 64.3%
=================================================
Diluted $ 0.23 $ 0.13 76.9%
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AVERAGE SHARES OUTSTANDING
Basic 42,614 42,401
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Diluted 44,033 43,071
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Page 5
1st Quarter 2005 Press Release
RPC INCORPORATED AND SUBSIDIARIES
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CONSOLIDATED BALANCE SHEETS
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At March 31, (Unaudited) (In thousands)
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2005 2004
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ASSETS
Cash and cash equivalents $ 22,272 $ 13,229
Accounts receivable, net 79,805 66,338
Inventories 11,565 10,838
Deferred income taxes 5,151 5,250
Income taxes receivable 286 2,074
Prepaid expenses and other current assets 3,462 3,363
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Total current assets 122,541 101,092
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Property, plant and equipment, net 117,941 108,916
Goodwill and other intangibles, net 20,509 15,905
Other assets 3,121 1,870
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Total assets $ 264,112 $ 227,783
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LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $ 23,804 $ 22,038
Accrued payroll and related expenses 7,645 6,227
Accrued insurance expenses 3,844 3,130
Accrued state, local and other taxes 1,581 950
Current portion of long-term debt 2,000 700
Other accrued expenses 5,086 3,793
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Total current liabilities 43,960 36,838
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Accrued insurance expenses 6,294 5,798
Long-term debt -- 4,800
Pension liabilities 10,527 9,220
Deferred income taxes 11,467 13,415
Other long-term liabilities 1,372 1,598
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Total liabilities 73,620 71,669
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Common stock 4,347 4,295
Capital in excess of par value 30,842 25,401
Retained earnings 168,411 133,766
Deferred compensation (6,335) (1,015)
Accumulated other comprehensive loss (6,773) (6,333)
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Total stockholders' equity 190,492 156,114
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Total liabilities and stockholders' equity $ 264,112 $ 227,783
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Page 6
1st Quarter 2005 Press Release
RPC INCORPORATED AND SUBSIDIARIES
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
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Three months ended March 31, (Unaudited) (In thousands)
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2005 2004
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Operating Activities:
Net income $ 9,927 $ 5,801
Depreciation, amortization and
other non-cash charges 9,621 8,555
Other net changes in operating
activities (10,428) (14,026)
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Net cash provided by operating
activities 9,120 330
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Investing Activities:
Capital expenditures (13,318) (8,625)
Other investing activities 947 453
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Net cash used for investing
activities (12,371) (8,172)
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Financing Activities:
Payment of dividends (1,704) (859)
Payments on debt (2,800) (410)
Cash paid for common stock
purchased and retired (73) 0
Proceeds from exercise of
stock options 464 38
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Net cash used for financing
activities (4,113) (1,231)
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Net decrease in cash and
cash equivalents (7,364) (9,073)
Cash and cash equivalents at
beginning of period 29,636 22,302
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Cash and cash equivalents at
end of period $ 22,272 $ 13,229
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