BUSINESS SEGMENT AND ENTITY WIDE DISCLOSURES

3 Months Ended

Mar. 31, 2025

BUSINESS SEGMENT AND ENTITY WIDE DISCLOSURES

BUSINESS SEGMENT AND ENTITY WIDE DISCLOSURES

17.    BUSINESS SEGMENT AND ENTITY WIDE DISCLOSURES

RPC’s reportable segments are the same as its operating segments. RPC manages its business under Technical Services and Support Services. Technical Services is comprised of service lines that generate revenue based on equipment, personnel or materials at the well site and are closely aligned with completion and production activities of our customers. Support Services is comprised of service lines which generate revenue from services and tools offered off the well site and are more closely aligned with the customers’ drilling activities. Selected overhead including certain centralized support services and regulatory compliance are classified as Corporate.

Technical Services consists primarily of pressure pumping, downhole tools, coiled tubing, cementing, snubbing, nitrogen, well control, wireline, fishing and water management. The services offered under Technical Services are high capital and personnel intensive businesses. The Company considers all of these services to be closely integrated oil and gas well servicing businesses and makes resource allocation and performance assessment decisions based on this operating segment as a whole across these various services.

Support Services consist primarily of drill pipe and related tools, pipe handling, pipe inspection and storage services, and oilfield training services. The demand for these services tends to be influenced primarily by customer drilling-related activity levels.

The Company’s Chief Operating Decision Maker (CODM) assesses performance and makes resource allocation decisions regarding, among others, staffing, growth and maintenance capital expenditures and key initiatives based on the operating segments outlined above.

The accounting policies of the reportable segments are the same as those referenced in Note 1 to the consolidated financial statements. Gains or losses on disposition of assets are reviewed on a consolidated basis, and accordingly the Company does not report gains or losses at the segment level. Intersegment revenues are generally recorded in segment operating results at prices that management believes approximate prices for arm’s length transactions and are not material to operating results.

RPC's CODM is its Chief Executive Officer. For each of the reportable segments, the CODM uses operating income to allocate resources (equipment, financial, and human resources).

Significant segment expense by reportable segment for the three months ended March 31, 2025 and 2024 are shown in the following tables:

	Technical		Support
	Services		Services		Total
(in thousands except headcount)
2025
Revenues	$	311,844	$	21,033	$	332,877
Employment costs (1)		77,336		5,253		82,589
Materials and supplies		74,469		840		75,309
Maintenance & repairs		45,461		2,622		48,083
Fleet and transportation		10,151		805		10,956
Other cost of revenues (2)		25,832		1,126		26,958
Cost of revenues (exclusive of depreciation and amortization)	$	233,249	$	10,646	$	243,895
Employment costs (1)		15,052		2,489		17,541
Enterprise shared services (3)		9,859		469		10,328
Other selling, general and administrative expenses (4)		7,418		1,427		8,845
Selling, general and administrative expenses	$	32,329	$	4,385	$	36,714
Segment depreciation and amortization		32,263		3,341		35,604
Segment operating income	$	14,003	$	2,661	$	16,664
Unallocated corporate expenses (5)						5,804
(Gain) on sale of assets						(1,526)
Operating income					$	12,386
	Technical		Support
	Services		Services		Total
(in thousands except headcount)
2024
Revenues	$	356,394	$	21,439	$	377,833
Employment costs (1)		77,152		5,187		82,339
Materials and supplies		94,490		785		95,275
Maintenance & repairs		50,306		2,796		53,102
Fleet and transportation		17,835		792		18,627
Other cost of revenues (2)		26,009		1,257		27,266
Cost of revenues (exclusive of depreciation and amortization)	$	265,792	$	10,817	$	276,609
Employment costs (1)		15,577		2,445		18,022
Enterprise shared services (3)		8,572		413		8,985
Other selling, general and administrative expenses (4)		7,327		1,350		8,677
Selling, general and administrative expenses	$	31,476	$	4,208	$	35,684
Segment depreciation and amortization		27,170		2,815		29,985
Segment operating income	$	31,956	$	3,599	$	35,555
Unallocated corporate expenses (5)						4,420
(Gain) on sale of assets						(1,214)
Operating income					$	32,349

(1) Employment costs include employee payroll, share-based compensation, bonuses and amounts related to benefits for each of the income statement items. Additional employment costs are included within the shared services amount.

(2) Includes expenses related to rent, travel, insurance and other costs.

(3) Includes costs incurred at the enterprise level that are allocated to each reportable segment based on payroll cost, headcount and revenues.

(4) Includes professional fees, utilities, travel & entertainment and other costs.

(5) Unallocated corporate expenses are included in selling general and administrative expenses at the consolidated level.

The table below shows the reconciliation of segment totals to the consolidated level for the three months ended March 31, 2025 and 2024:

	Technical		Support		Segment		Unallocated		Consolidated
	Services		Services		Total		Total		Total
(in thousands)
2025
Selling, general and administrative expenses	$	32,329	$	4,385	$	36,714	$	5,785	$	42,499
Depreciation and amortization		32,263		3,341		35,604		19		35,623
Capital expenditures (1)		22,543		8,401		30,944		1,326		32,270
Total assets (2)	$	862,481	$	86,443	$	948,924	$	396,995	$	1,345,919
2024
Selling, general and administrative expenses	$	31,476	$	4,208	$	35,684	$	4,401	$	40,085
Depreciation and amortization		27,170		2,815		29,985		19		30,004
Capital expenditures (1)		43,869		7,813		51,682		1,096		52,778
Total assets (2)	$	897,462	$	79,763	$	977,225	$	320,008	$	1,297,233

(1) Unallocated total primarily related to corporate capital expenditures.

(2) Unallocated total primarily consists of cash and cash equivalents of $326.7 million and $212.2 million managed at corporate for the months ended March 31, 2025 and 2024, respectively.

The following summarizes revenues for the United States and separately for all international locations combined for the three months ended March 31, 2025, and 2024. The revenues are presented based on the location of the use of the equipment or services. Assets related to international operations are less than 10% of RPC’s consolidated assets, and therefore are not presented.

	Three months ended
	March 31,
	2025		2024
(in thousands)
United States revenues	$	324,879	$	367,938
International revenues		7,998		9,895
Total revenues	$	332,877	$	377,833

Segment Revenues:

RPC’s operating segment revenues by major service lines are shown in the following table:

	Three months ended
	March 31,
	2025		2024
(in thousands)
Technical Services:
Pressure Pumping	$	133,617	$	176,256
Downhole Tools		93,865		93,794
Coiled Tubing		31,930		33,168
Cementing		27,662		27,751
Nitrogen		7,912		9,550
Snubbing		7,336		4,856
All other		9,522		11,019
Total Technical Services		311,844		356,394
Support Services:
Rental Tools		15,402		15,974
All other		5,631		5,465
Total Support Services		21,033		21,439
Total revenues	$	332,877	$	377,833