RPC, Inc. (NYSE:RES) Q3 2024 Earnings Conference Call October 24, 2024 9:00 AM ET

Company Participants

Michael Schmit - VP, CFO, Treasurer & Corporate Secretary
Ben Palmer - Director, President & CEO

Conference Call Participants

Donald Crist - Johnson Rice
John Daniel - Daniel Energy Partners
Stephen Gengaro - Stifel

Operator

Good morning, and thank you for joining us for RPC, Inc.'s Third Quarter 2024 Conference Call. Today's call will be hosted by Ben Palmer, President and CEO; and Mike Schmit, Chief Financial Officer. At this time, all participants are in listen-only mode. following the presentation, we will conduct a question-and-answer session, instructions will be provided at that time for you to queue up for questions. I would like to advise everyone that this conference call is being recorded.

I will now turn the call over to Mr. Schmit.

Michael Schmit

Thank you, and good morning. Before we begin, I want to remind you that some of the statements that will be made on this call could be forward-looking in nature and reflect a number of known and unknown risks. Please refer to our press release issued today, along with our 2023 10-K and other public filings that outline all those risks, all of which can be found on RPC's website at www.rpc.net.

In today's earnings release and conference call, we'll be referring to several non-GAAP measures of operating performance and liquidity. We believe these non-GAAP measures allow us to be -- to compare performance consistently over various periods. Today's press release and our website contain reconciliations of these non-GAAP measures to the most directly comparable GAAP measures.

I'll now turn the call over to our President and CEO, Ben Palmer.

Ben Palmer

Thanks, Mike, and thank you for joining our call. This morning, we reported third quarter results that reflect the continuing challenges of the OFS market. It remains highly competitive with limited near-term visibility heading into the winter season as customers face budget exhaustion and limited incentive to increase activity amidst current oil prices.

Consistent with recent performance, our pressure pumping business is facing relatively more headwinds than our other service lines. The spot and semi-dedicated market has ample supply of horsepower capacity seeking to be deployed, with pricing remaining under pressure as many of our peers seem motivated to maintain utilization.

Our other service lines in aggregate were more resilient, posting a modest sequential revenue decline, indicative of the more diversified customer base, which includes larger Tier 1 customers spread across more basins. To illustrate this contrast, our pressure pumping revenues were down 12%, while all of our other businesses in total were down just 4%.