How does rpc, inc. make money?

rpc, inc. generates $1.6B in annual revenue (annual revenue · their business grew +15.0% last year).

What is RES's XVARY composite score?

rpc, inc. (RES) has an XVARY composite score of 40/100, rated below average. This combines growth, value, risk, and momentum factors.

RES — rpc, inc. stock analysis

Start here if you're new

what it is

RPC sells crews and gear that help oil and gas companies drill, clean, and finish wells.

how it gets paid

Last year Rpc made $1.6B in revenue. Pressure Pumping was the main engine at $0.77B, or 48% of sales.

why it's growing
Revenue grew 15.0% last year. This has been driven by gains across multiple service lines and rpc's diversified service portfolio has helped to offset softness in certain legacy segments.

what just happened

RPC posted $0.04 in EPS and missed the $0.05 estimate by 20%.

At a glance

C++ balance sheet — some cracks in the foundation

30/100 earnings predictability — expect surprises

23.0x trailing p/e — priced about right

2.7% dividend yield — cash in your pocket every quarter

10.0% return on capital — nothing to write home about

xvary composite: 40/100 — below average

What they do

RPC sells crews and gear that help oil and gas companies drill, clean, and finish wells.

RPC is not a one-bet story. Technical Services was 95% of 2024 revenue, while Support Services was 5%. You get a business where 60.5% of the stock sits with officers and directors, so management feels the same 2.8% margin squeeze you do.

energy small-cap oilfield-services pressure-pumping value

How they make money

$1.6B annual revenue · their business grew +15.0% last year

Pressure Pumping

$0.77B

Downhole Tools

$0.40B

Coiled Tubing, Snubbing and Nitrogen

$0.43B

Support Services

$0.08B

The products that matter

pressure pumping and well-completion work

Technical Services

$1.5B · 95% of sales

this is the whole story. at $1.5B of revenue, Technical Services is almost the entire business, so your results rise and fall with activity and pricing in that market.

95% of sales

production-related services and equipment

Oil & Gas Production

$416M · 26% of sales

$416M is meaningful, but it still sits far behind the $1.5B technical-services base. helpful exposure, not a second engine.

secondary exposure

non-us revenue exposure

international markets

$32M · 2% of sales

at $32M, international revenue is too small to change the investment case. if you want a global oilfield-services story, this is not really one.

too small to matter

Key numbers

2.7%

Dividend yield

You get paid 2.7% while waiting. That is $2.70 a year on every $100 you own.

23.0x

Trailing P/E

You pay 23 times trailing earnings for a company with 2.8% operating margin. The price is not cheap.

10.0%

Return on capital

RPC earns 10 cents for every dollar tied up in the business. That is decent, not heroic.

30

Earnings predictability

A score of 30 says the earnings line is not steady. That matters in a cyclical oilfield name.

Financial health

C++

strength

balance sheet grade C++ — below average — limited financial resources
risk rank 4 — safer than 20% of stocks
price stability 15 / 100
long-term debt $30M (2% of capital)
net profit margin 6.5% — keeps 6 cents of every dollar in revenue
return on equity 10% — $0.10 profit for every $1 investors have put in

C++ — below average. watch for debt servicing and cash burn.

Total return vs. market

You invested $10,000 in RES 3 years ago → it's now worth $6,460.

The index would have given you $14,770.

same period. same starting point. RES trailed the market by $8,310.

source: institutional data · total return

What just happened

missed estimates

RPC posted $0.04 in EPS and missed the $0.05 estimate by 20%.

Revenue came in at $405.2M, and operating income was $8.5M. The print was weak enough to matter, even with a still-large revenue base.

$405.2M

revenue

$0.04

eps

26.74%

gross margin

the number that mattered

The $0.04 EPS print missed $0.05 by 20%, which says the quarter was softer than the headline revenue looked.

rpc has shown improving top-line momentum amid a challenging oilfield services backdrop in 2025.
in the september interim, the company reported total revenues of $447.1 million, up around 6% sequentially, while adjusted ebitda expanded to $72.3 million and margins improved modestly.
year-to-date revenues have topped $1.2 billion, up over 11% versus the first nine months of 2024, although cumulative net income has lagged prior year levels.

this has been driven by gains across multiple service lines and rpc's diversified service portfolio has helped to offset softness in certain legacy segments. the company is leveraging its service portfolio and diversified revenue mix to capture further activity as the oilfield services market gradually stabilizes. the integration of pintail and other acquisitions provides scale in less capital-intensive, higher-margin service lines such as wireline perforation and completion support.
this ought to smooth earnings volatility tied to pressure pumping and other cyclical segments.

furthermore, continued adoption of specialized downhole technologies and a focus on operational efficiency could drive incremental ebitda growth, particularly if commodity prices and producer activity pick up. additionally, rpc's ability to pursue generate positive cash flow should help sustain its competitive position. with broader exploration and production (e&p) capital commitments expected to remain disciplined but stable, demand for services emphasizing reliability, rapid deployment, and technical specialization are expected to grow.
we think this should benefit rpc, which has diversified beyond traditional pressure pumping.

if oil markets moderate supply fluctuations and activity recovers in key basins, rpc's service lines may see more consistent demand through 2026 and beyond. these shares are neutrally ranked. although near-term sentiment across the oilfield services space remains soft, the company appears positioned to benefit once drilling activity begins to recover. thus, at the recent quotation, shares of res have worthwhile capital appreciation potential out to 2028-2030.

source: company earnings report, 2026

What could go wrong

the #1 risk is oilfield spending cuts hitting Technical Services.

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oilfield spending cuts in Technical Services

Technical Services produces $1.5B of revenue, or 95% of sales. If customers slow completion work, most of RES slows with them.

This is why a single service line effectively carries the whole investment case.

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med

thin-margin execution

A 3.9% net margin means there is not much room for pricing mistakes, idle equipment, or cost inflation.

When you keep only about 4 cents of each revenue dollar, small operating slippage shows up fast in EPS.

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med

earnings volatility

Earnings predictability is 30 / 100 and full-year EPS was $0.26. This is not a stock where you can assume linear progress.

If the path to the $0.30 FY2026 estimate gets bumpy, the valuation can compress quickly.

∘

med

crowded institutional ownership

Institutional holders control 90.9M shares, and the latest quarter showed 93 buyers against 112 sellers.

When most of the stock already sits with funds, more selling can become its own catalyst.

95% of the $1.6B revenue base sits in Technical Services, while the company-wide net margin is only 3.9%. That is concentration plus thin cushioning in one sentence.

source: institutional data · regulatory filings · risk analysis

Pay attention to

the key metric

whether $1.6B turns into the $2B consensus revenue target

the stock does not need perfection. it does need the activity rebound embedded in that $2B estimate to show up.

trend

earnings follow-through above the $0.26 full-year base

Q4 EPS was $0.06 and the full-year total was $0.26. if quarterly earnings stall, the multiple starts looking expensive again.

risk

Technical Services concentration

$1.5B of $1.6B revenue comes from one operating lane. concentration works great until the lane gets crowded.

next checkpoint

the next earnings print

with predictability at 30 / 100, each report matters more than usual. this stock tends to reprice on new operating data, not storytelling.

Analyst rankings

short-term outlook

average

momentum score 3. in human-speak, analysts do not see a strong edge here over the next year.

safety

below average

stability score 4 — this stock has historically been shakier than most, which fits an oilfield services name.

chart momentum

average

technical score 3 — no breakout signal, no collapse signal, just a stock moving with the tape.

earnings predictability

30 / 100

translation: surprises are normal here. if you own RES, you should expect noisier quarters than you would from a steadier industrial name.

source: institutional data

Institutional activity

93 buyers vs. 112 sellers in 3q2025. total institutional holdings: 90.9M shares.

source: institutional data · 1q2025-3q2025

source: institutional data

Price targets

3-5 year target range

$4 $10

$6 current price

$7 target midpoint · +17% from current · 3-5yr high: $13 (+115% · 23% ann'l return)

source: institutional data · analyst targets

The deep dive

RES

xvary deep dive

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the full analysis is in the works.

what you'll get

dcf valuation model

bull / base / bear scenarios

competitive moat breakdown

quarterly earnings tracker

operating model projections

risk matrix with kill criteria

original price target + conviction

updated with every earnings

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