Research Desk Line-up: Andeavor Logistics Post Earnings Coverage

LONDON, UK / ACCESSWIRE / November 17, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on RPC, Inc. (NYSE: RES), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=RES, following the Company's announcement of its third quarter fiscal 2017 operating results on October 25, 2017. The oil and gas services Company's earnings met market estimates. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Oil & Gas Equipment & Services industry. Pro-TD has currently selected Andeavor Logistics LP (NYSE: ANDX) for due-diligence and potential coverage as the Company reported on November 08, 2017, its financial results for Q3 2017. Register for a free membership today, and be among the early birds that get access to our report on Andeavor Logistics when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on RES; also brushing on ANDX. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=RES

http://protraderdaily.com/optin/?symbol=ANDX

Earnings Reviewed

For the quarter ended September 30, 2017, RPC's revenues soared 167.8% to $471.0 million compared to $175.9 million in Q3 2016. The revenue growth was attributed to higher activity levels and pricing for the Company's services, higher service intensity, and continued activation of previously idled revenue-producing equipment. The Company's revenue numbers fell short of analysts' estimates of $474.6 million.

During Q3 2017, RPC's cost of revenues increased to $294.8 million, or 62.6% of revenues, from $146.6 million, or 83.4% of revenues, during Q3 2016, due to higher activity levels and service intensity. As a percentage of revenues, cost of revenues decreased due to improved pricing for the Company's services, as well as leverage of higher revenues over direct employment costs.

For Q3 2017, RPC's selling, general, and administrative expenses (SG&A) totaled $39.7 million compared to $34.9 million in Q3 2016. SG&A increased due to higher compensation costs, as well as other expenses consistent with higher activity levels. As a percentage of revenues, SG&A decreased to 8.4% in the reported quarter versus 19.8% in the year-earlier same quarter, due to the leverage of higher revenues over primarily fixed expenses. RPC's depreciation and amortization decreased to $39.6 million compared to $52.0 million in Q3 2016, due to lower capital expenditure over the last two years.

During Q3 2017, RPC's operating profit totaled $97.4 million compared to an operating loss of $56.4 million in Q3 2016. The Company's earnings before interest, taxes, depreciation, and amortization (EBITDA) were $137.5 million for the reported quarter compared to a loss of $4.4 million in the prior year's corresponding quarter.

For Q3 2017, RPC's net income totaled $57.3 million, or $0.26 diluted earnings per share (EPS), compared to net loss of $38.9 million, or $0.18 loss per share, in Q3 2016. The Company's earnings, adjusted for pre-tax expenses, were $0.28 per share, and were in-line with Wall Street's expectations of $0.28 per share.

Segment Operating Performance

RPC manages two operating segments, namely: (i) Technical Services, and (ii) Support Services.

During Q3 2017, RPC's Technical Services segment's revenues soared 179.0% to $455.72 million on a y-o-y basis, driven by improved pricing, higher activity levels, and a larger active fleet of revenue-producing equipment versus the prior year's comparable quarter, particularly within the Company's pressure pumping service line, which is the largest service line within the Technical Services segment. In the reported quarter, the segment recorded an operating profit of $104.35 million compared to an operating loss of $48.63 million in the prior year's same quarter.

As of the end of Q3 2017, RPC's pressure pumping fleet remained unchanged at 925,000 hydraulic horsepower, of which approximately 95% is manned and available to work compared to 80% at the end of the prior year's corresponding quarter.

For Q3 2017, RPC's Support Services segment's revenues jumped 21.7% to $15.28 million, primarily due to improved activity levels in the rental tool service line, which is the largest service line within this segment. In the reported quarter, the Support Services segment reported operating losses of $2.06 million versus operating losses of $5.54 million in the year-earlier comparable quarter.

Cash Matters

RPC finished Q3 2017 with $136.9 million in cash with no outstanding debt. The Company's capital expenditure was $44.4 million during the reported quarter, directed toward both maintenance of the Company's equipment and initial payments on new revenue-producing equipment.

During Q3 2017, the Company returned capital to its shareholders by repurchasing 726,889 of RPC's common shares on the open market, bringing the total number of shares repurchased to 1.07 million during the first nine months of 2017.

Outlook

RPC expects capital expenditure to be approximately $150 million for the full year 2017, a portion of which will be directed towards the purchase of 127,000 hydraulic horsepower, with delivery expected during H1 2018.

Stock Performance

On Thursday, November 16, 2017, the stock closed the trading session at $22.88, marginally up 0.09% from its previous closing price of $22.86. A total volume of 1.30 million shares have exchanged hands. RPC, Inc.'s stock price surged 23.28% in the last three months, 14.54% in the past six months, and 29.11% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have rallied 15.81%. The stock is trading at a PE ratio of 59.58 and has a dividend yield of 1.22%. At Thursday's closing price, the stock's net capitalization stands at $5.06 billion.

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