RPC Inc. (RES, Financial) filed Quarterly Report for the period ended 2010-09-30.
Rpc Inc. has a market cap of $2.26 billion; its shares were traded at around $23.09 with a P/E ratio of 76.4 and P/S ratio of 3.8. The dividend yield of Rpc Inc. stocks is 1%. Rpc Inc. had an annual average earning growth of 21.7% over the past 10 years. GuruFocus rated Rpc Inc. the business predictability rank of 3.5-star.RES is in the portfolios of Mario Gabelli of GAMCO Investors, Chuck Royce of Royce& Associates, Steven Cohen of SAC Capital Advisors.
Drilling activity in the U.S. domestic oilfields, as measured by the rotary drilling rig count, had been gradually increasing since about 2003 when rig count was just over 800 through the latter half of 2008 when the U.S. rig count peaked at 2,031 during the third quarter. The global recession that began in the fourth quarter of 2007 precipitated the steepest annualized decline in U.S. domestic oilfield history. From the third quarter of 2008 to the second quarter of 2009, the U.S. domestic rig count dropped almost 57 percent, reaching a trough of 876 in September 2009. Since September 2009, the rig count has increased by 72 percent to 1,671 early in the fourth quarter of 2010. The third quarter average U.S. domestic rig count of 1,618 represented 59 percent of global oilfield activity, and the outlook for U.S. domestic oilfield activity remains positive for the remainder of 2010. International rig count activity outside of North America reached a trough in the fourth quarter of 2009 and has increased by 14 percent to 1,120 by the end of the third quarter of 2010. The price of oil fell by 77 percent from $147 per barrel in the third quarter of 2008 to $34 early in 2009. Since that time, the price of oil has increased by over 144 percent to approximately $83 per barrel in the fourth quarter of 2010. The price of natural gas fell by 85 percent from approximately $13 per Mcf in the second quarter of 2008 to slightly below $2 per Mcf in the third quarter of 2009. Since that time, the price of natural gas has increased to approximately $3.50 per Mcf early in the fourth quarter of 2010 but remains below levels traditionally believed to support growth in natural gas drilling activities.
(Gain)loss on disposition of assets, net. (Gain) loss on disposition of assets, net was $(905) thousand for the three months ended September 30, 2010 compared to $492 thousand for the three months ended September 30, 2009. The (gain) loss on disposition of assets, net includes gains or losses related to various property and equipment dispositions or sales to customers of lost or damaged rental equipment.
Interest expense and interest income. Interest expense was $707 thousand for the three months ended September 30, 2010 compared to $533 thousand for the quarter ended September 30, 2009. The increase in 2010 is due to a higher average interest rate on our revolving credit facility, net of interest capitalized on equipment and facilities under construction. Interest income was $14 thousand for the three months ended September 30, 2010 and $41 thousand for the three months ended September 30, 2009.
Interest expense and interest income. Interest expense was $1.8 million for the nine months ended September 30, 2010 compared to $1.7 million for the same period in the prior year. The increase in 2010 is due to a higher average interest rate on our revolving line of credit, net of interest capitalized on equipment and facilities under construction. Interest income was $46 thousand for the nine months ended September 30, 2010 and $126 thousand for the nine months ended September 30, 2009.
The Company s financial condition as of September 30, 2010 remains strong. We believe the liquidity provided by our existing cash and cash equivalents, our overall strong capitalization, cash expected to be generated from operations and proceeds from a refinanced and expanded credit facility will provide sufficient capital to meet our requirements for at least the next twelve months. The Company has a $350 million revolving credit facility (the “Revolving Credit Agreement”) that matures in August 2015. The Revolving Credit Agreement contains customary terms and conditions, including certain financial covenants including covenants restricting RPC s ability to incur liens or merge or consolidate with another entity. Our outstanding borrowings were $108.3 million at September 30, 2010 and approximately $17.6 million of the credit facility supports outstanding letters of credit relating to self-insurance programs or contract bids. A total of $224.1 million was available under our facility as of September 30, 2010. Additional information regarding our Revolving Credit Agreement is included in Note 10 to our Consolidated Financial Statements included in this report.
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Rpc Inc. has a market cap of $2.26 billion; its shares were traded at around $23.09 with a P/E ratio of 76.4 and P/S ratio of 3.8. The dividend yield of Rpc Inc. stocks is 1%. Rpc Inc. had an annual average earning growth of 21.7% over the past 10 years. GuruFocus rated Rpc Inc. the business predictability rank of 3.5-star.RES is in the portfolios of Mario Gabelli of GAMCO Investors, Chuck Royce of Royce& Associates, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:
Income before income taxes increased to $74.1 million for the three months ended September 30, 2010 compared to a loss of $14.8 million in the same period of 2009 primarily because of higher revenues. The effective tax rate for the three months ended September 30, 2010 was 37.6 percent compared to 29.8 percent in the same period of the prior year. Diluted earnings per share increased to $0.47 ($0.32 adjusted for the three-for-two stock split) for the three months ended September 30, 2010 compared to diluted loss per share of $0.11 ($0.07 adjusted for the three-for-two stock split) in the same period of 2009. Cash flows from operating activities were $92.6 million for the three months ended September 30, 2010 compared to $144.7 million in the same period of 2009 due to increased working capital requirements consistent with higher revenues and business activity levels, compared to decreasing requirements in the prior period. The notes payable to banks increased slightly to $108.3 million as of September 30, 2010 compared to $101.9 million as of September 30, 2009.Drilling activity in the U.S. domestic oilfields, as measured by the rotary drilling rig count, had been gradually increasing since about 2003 when rig count was just over 800 through the latter half of 2008 when the U.S. rig count peaked at 2,031 during the third quarter. The global recession that began in the fourth quarter of 2007 precipitated the steepest annualized decline in U.S. domestic oilfield history. From the third quarter of 2008 to the second quarter of 2009, the U.S. domestic rig count dropped almost 57 percent, reaching a trough of 876 in September 2009. Since September 2009, the rig count has increased by 72 percent to 1,671 early in the fourth quarter of 2010. The third quarter average U.S. domestic rig count of 1,618 represented 59 percent of global oilfield activity, and the outlook for U.S. domestic oilfield activity remains positive for the remainder of 2010. International rig count activity outside of North America reached a trough in the fourth quarter of 2009 and has increased by 14 percent to 1,120 by the end of the third quarter of 2010. The price of oil fell by 77 percent from $147 per barrel in the third quarter of 2008 to $34 early in 2009. Since that time, the price of oil has increased by over 144 percent to approximately $83 per barrel in the fourth quarter of 2010. The price of natural gas fell by 85 percent from approximately $13 per Mcf in the second quarter of 2008 to slightly below $2 per Mcf in the third quarter of 2009. Since that time, the price of natural gas has increased to approximately $3.50 per Mcf early in the fourth quarter of 2010 but remains below levels traditionally believed to support growth in natural gas drilling activities.
(Gain)loss on disposition of assets, net. (Gain) loss on disposition of assets, net was $(905) thousand for the three months ended September 30, 2010 compared to $492 thousand for the three months ended September 30, 2009. The (gain) loss on disposition of assets, net includes gains or losses related to various property and equipment dispositions or sales to customers of lost or damaged rental equipment.
Interest expense and interest income. Interest expense was $707 thousand for the three months ended September 30, 2010 compared to $533 thousand for the quarter ended September 30, 2009. The increase in 2010 is due to a higher average interest rate on our revolving credit facility, net of interest capitalized on equipment and facilities under construction. Interest income was $14 thousand for the three months ended September 30, 2010 and $41 thousand for the three months ended September 30, 2009.
Interest expense and interest income. Interest expense was $1.8 million for the nine months ended September 30, 2010 compared to $1.7 million for the same period in the prior year. The increase in 2010 is due to a higher average interest rate on our revolving line of credit, net of interest capitalized on equipment and facilities under construction. Interest income was $46 thousand for the nine months ended September 30, 2010 and $126 thousand for the nine months ended September 30, 2009.
The Company s financial condition as of September 30, 2010 remains strong. We believe the liquidity provided by our existing cash and cash equivalents, our overall strong capitalization, cash expected to be generated from operations and proceeds from a refinanced and expanded credit facility will provide sufficient capital to meet our requirements for at least the next twelve months. The Company has a $350 million revolving credit facility (the “Revolving Credit Agreement”) that matures in August 2015. The Revolving Credit Agreement contains customary terms and conditions, including certain financial covenants including covenants restricting RPC s ability to incur liens or merge or consolidate with another entity. Our outstanding borrowings were $108.3 million at September 30, 2010 and approximately $17.6 million of the credit facility supports outstanding letters of credit relating to self-insurance programs or contract bids. A total of $224.1 million was available under our facility as of September 30, 2010. Additional information regarding our Revolving Credit Agreement is included in Note 10 to our Consolidated Financial Statements included in this report.
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