Rpc (RES) Q1 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool Fri, May 8, 2026 at 11:42 PM GMT+7 14 min read RES Image source: The Motley Fool. President and Chief Executive Officer — Ben Palmer Vice President and Chief Financial Officer — Michael Schmit Ben Palmer: Thank you, Mike, and thank you for joining our call this morning. Today, we ll talk about our first quarter results and provide you with a few operational highlights. First quarter results reflect a sequential revenue increase across the majority of our service lines despite the winter storms early in the quarter. Demand strengthened as the quarter progressed. Within Technical Services, Thru Tubing Solutions downhole tools revenues increased 11% sequentially. We saw broad-based strength with most geographic regions growing double digits. Thru Tubing Solutions is a market leader in downhole completion tools with a portfolio of products supported by proprietary technologies. We have introduced a number of new products in recent years that have helped expand our market leadership position. Thru Tubing Solutions continues the rollout of its new metal-on-metal power section, Metal Max. Adoption is accelerating with growth across both geographic markets and motor size offerings as inventory availability expands. Metal Max s performance and design characteristics are enabling entry into new markets and applications previously served by traditional power section components. Over the past 6 months, Metal Max has strategically displaced conventional power sections, but still only represents 15% of our power section utilization. We continue to see meaningful opportunities for further displacement as customers increasingly recognize the product s performance and value. Thru Tubing Solutions on-plug technology, which replaces traditional bridge plugs is picking up momentum with several operators opting to utilize the technology as their primary stage isolation method. We are also seeing success with our new surface vibratory technology, particularly in longer laterals. Overall, our downhole tools business is benefiting from longer laterals and the need for technologies to deal with the related completion challenges. Also within Technical Services, Cudd Pressure Control s revenues were down 7% sequentially, led by weakness in the Rockies region and tough comparables in well control as the fourth quarter had multiple large well control events. This was partially offset by nitrogen, which was up 13% and snubbing, which was up 8% as equipment was well utilized during the quarter. Cudd Pressure Control s snubbing business is expected to receive and begin testing the big bore snubbing unit later this month. This unit was specifically designed for cavern gas storage work and was built to support a long-term customer with its storage well maintenance schedule. This work is regulatory driven and is part of our effort to continue diversifying into other markets. Coiled tubing our largest service line within Cudd Pressure Control was down 7% sequentially. Coiled tubing faced tough comparables in the Rockies and Northeast regions. Our new 2 7/8-inch unit continues to be well utilized. And we are upgrading an existing unit to handle the larger 2 7/8-inch tubing. Pintail Completions, the largest wireline provider in the Permian Basin generated revenues that were relatively flat sequentially. Given our leading market position, we expect Pintail s business to trend closely with large Permian operator activity. Cudd Energy Services pressure pumping business saw a 20% sequential revenue increase due to job mix, primarily from operators, and we provided materials and supplies, along with fuel during the quarter. We have no plans to reactivate fleets at current pricing levels, but we are cautiously optimistic based on higher oil prices and less calendar white space. However, natural gas takeaway capacity, particularly in the New Mexico, could limit improvement in customer activity. Overall, we see recent geopolitical developments as incrementally positive as pricing pressures appear to be subsiding and current activity is being supported by higher commodity prices. However, we believe operators are cautious and concerned about the duration of higher crude prices and the perception of capital budget increases in the equity market. As such, we have only seen modest responses by customers since the Middle East events began. Our focus remains on full cycle returns, but our balance sheet affords us the optionality of leaning into certain markets where we see additional upside. We will continue to evaluate these opportunities with our focus being on cash flow generation and maximizing value over the long term. And with that, Mike will now discuss the quarter s financial results. Michael Schmit: Thanks, Ben. Our first quarter financial results, with sequential comparisons to the fourth quarter of 2025 are as follows: Revenues increased 7% to $455 million compared to Q4 25. Breaking down our ope

Rpc (RES) Q1 2026 Earnings Call Transcript

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Rpc (RES) Q1 2026 Earnings Call Transcript

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