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RPC , Inc. Reports Third Quarter 2021 Financial Results ATLANTA , Oct. 27 , 2021 / PRNewswire / -- RPC , Inc. ( NYSE : RES ) today announced its unaudited results for the third quarter ended September 30 , 2021. RPC provides a broad range of specialized oilfield services and equipment primarily to independent and major oilfield companies engaged in the exploration , production and development of oil and gas properties throughout the United States and in selected international markets . ( https://mma.prnewswire.com/media/550101/RPC_Inc_Logo.html ) For the quarter ended September 30 , 2021 , RPC generated revenues of $ 225.3 million , an increase of 93.3 percent compared to $ 116.6 million in the third quarter of 2020 due primarily to higher activity levels in all service lines as well as pricing improvements . Operating profit for the third quarter of 2021 was $ 8.0 million compared to an operating loss of $ 31.8 million in the third quarter of the prior year . Net income for the third quarter of 2021 was $ 5.3 million , or $ 0.02 diluted earnings per share , compared to a net loss of $ 16.4 million , or $ 0.08 loss per share in the third quarter of the prior year . The adjusted net loss in the third quarter of 2020 was $ 20.0 million , or $ 0.09 adjusted loss per share.1 Earnings before interest , taxes , depreciation and amortization ( EBITDA ) for the third quarter of 2021 was $ 26.5 million , compared to EBITDA of negative $ 12.3 million in the same period of the prior year.2 Cost of revenues during the third quarter of 2021 was $ 170.6 million , or 75.7 percent of revenues , compared to $ 100.9 million , or 86.5 percent of revenues during the third quarter of 2020. Cost of revenues increased primarily due to increases in expenses consistent with higher activity levels , such as materials and supplies expenses , employment costs and fuel costs . Cost of revenues as a percentage of revenues decreased primarily due to the leverage of higher revenues over direct employment costs . Selling , general and administrative expenses were $ 31.4 million in the third quarter of 2021 compared to $ 32.4 million in the third quarter of 2020. Selling , general and administrative expenses decreased from 27.8 percent of revenues in the third quarter of 2020 to 14.0 percent of revenues in the third quarter of 2021 due to leverage of higher revenues over costs that are relatively fixed during the short term . Depreciation and amortization was $ 18.1 million in the third quarter of 2021 compared to $ 18.7 million in the third quarter of the prior year . Interest expense of $ 1.3 million during the third quarter of 2021 is primarily comprised of interest related to the resolution of a long - term contractual dispute with a vendor . For the nine months ended September 30 , 2021 , revenues increased 32.7 percent to $ 596.7 million compared to $ 449.7 million for the same period last year . Net loss for the nine months ended September 30 , 2021 was $ 5.1 million , or $ 0.02 loss per share , compared to a net loss of $ 201.9 million , or $ 0.95 loss per share in the same period last year . The adjusted net loss for the nine months ended September 30 , 2020 was $ 51.2 million , or $ 0.24 adjusted loss per share . 1 Discussion of Sequential Quarterly Financial Results RPC's revenues for the quarter ended September 30 , 2021 increased by $ 36.6 million , or 19.4 percent , compared to the prior quarter due to activity increases in all of our service lines as well as a slight net pricing increase in several of our larger service lines . Cost of revenues during the third quarter of 2021 increased by $ 24.8 million . As a percentage of revenues , cost of revenues decreased to 75.7 percent in the third quarter of 2021 from 77.2 percent in the second quarter of 2021. Selling , general and administrative expenses increased by $ 2.0 million in the third quarter of 2021 compared to the prior quarter . RPC's operating profit in the third quarter of 2021 was $ 8.0 million , compared to an operating loss of $ 1.2 million in the second quarter of 2021. EBITDA for the third quarter of 2021 was $ 26.5 million compared to EBITDA of $ 17.3 million in the second quarter of 2021.² The average U.S. domestic rig count during the third quarter of 2021 was 500 , a 96.9 percent increase compared to the same period in 2020 , and a 10.4 percent increase compared to the second quarter of 2021. The average price of oil during the third quarter of 2021 was $ 70.53 per barrel , a 72.7 percent increase compared to the same period in 2020 , and a 14.5 percent increase compared to the second quarter of 2021. The average price of natural gas during the third quarter of 2021 was $ 4.39 per Mcf , a 119.5 percent increase compared to the same period in 2020 , and a 47.3 percent increase compared to the second quarter of 2021 . Management Commentary " RPC's third quarter revenues improved as drilling and completions increased and our customers ' optimism regarding higher commodity prices continued to grow , " stated Richard A. Hubbell , RPC's President and Chief Executive Officer . " During the quarter , we also saw signs of net pricing improvements due to an improving operating environment . " Late in the third quarter we placed into service a new Tier IV dual - fuel pressure pumping fleet , which immediately went to work for a high - utilization customer in the Permian Basin . Although pressure pumping remains highly competitive due to the supply of idle equipment , many customers show a preference for ESG friendly equipment with superior performance characteristics . In the coming quarters we will continue to focus on managing increasing costs , supply chain constraints , and customer pricing , " concluded Hubbell . Summary of Segment Operating Performance RPC manages two operating segments - Technical Services and Support Services . Technical Services includes RPC's oilfield service lines that utilize people and equipment to perform value - added completion , production and maintenance services directly to a customer's well . These services are generally directed toward improving the flow of oil and natural gas from producing formations or to address well control issues . The Technical Services segment includes pressure pumping , downhole tools and services , coiled tubing , hydraulic workover services , nitrogen , surface pressure control equipment , well control , and fishing tool operations . Support Services includes RPC's oilfield service lines that provide equipment for customer use or services to assist customer operations . The equipment and services offered include rental of tubulars and related tools , pipe handling , inspection and storage services , and oilfield training services . Technical Services quarterly revenues increased by 93.9 percent compared to the same period of the prior year due to significantly higher activity levels and slightly improved pricing . On a sequential basis , Technical Services revenues increased by 20.3 percent compared to the prior quarter . Technical Services generated an operating profit of $ 8.3 million in the third quarter of 2021 due to higher activity levels and leverage of higher revenues over costs that are relatively fixed during the short term , compared to an operating profit of $ 1.4 million in the second quarter of 2021. Support Services revenues increased by 84.2 percent during the third quarter compared to the same period of the prior year . On a sequential basis , Support Services revenues increased by 6.6 percent compared to the prior quarter due to modest revenue increases in most of the service lines which comprise this segment . ( in thousands ) Three Months Ended Nine Months Ended