ATLANTA - RPC, Inc. (NYSE: RES) today announced its unaudited results for the fourth quarter and year ended December 31, 2020.
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.
For the quarter ended December 31, 2020, revenues were $148.6 million, a decrease of 37.0 percent compared to $236.0 million in the fourth quarter of 2019. Operating loss for the fourth quarter of 2020 was $21.6 million compared to an operating loss of $27.9 million in the same period of the prior year. Adjusted operating loss for the fourth quarter of 2020 was $11.3 million compared to an adjusted operating loss of $17.3 million in the same period of the prior year.1 Net loss for the fourth quarter of 2020 was $10.2 million, or $0.05 loss per share, compared to a net loss of $23.4 million, or $0.11 loss per share, in the fourth quarter of 2019. Adjusted net loss for the fourth quarter of 2020 was $6.8 million, or $0.03 adjusted loss per share, compared to an adjusted net loss of $13.9 million, or $0.07 adjusted loss per share, in the fourth quarter of 2019.2 Earnings before interest, taxes, depreciation and amortization (EBITDA) for the fourth quarter of 2020 was negative $2.5 million, compared to EBITDA of $12.6 million in the same period of the prior year.3 Adjusted EBITDA for the fourth quarter of 2020 was $7.8 million compared to adjusted EBITDA of $23.2 million in the same period of the prior year.3
For the 12 months ended December 31, 2020, revenues decreased to $598.3 million compared to $1.22 billion last year. Net loss for the 12 months ended December 31, 2020 was $212.2 million, or $1.00 loss per share, compared to a net loss of $87.1 million, or $0.41 loss per share last year. Adjusted net loss for the 12 months ended December 31, 2020 was $58.1 million, or $0.27 loss per share, compared to an adjusted net loss for the 12 months ended December 31, 2019 of $26.5 million, or $0.12 adjusted loss per share. 2
Cost of revenues during the fourth quarter of 2020 was $117.9 million, or 79.3 percent of revenues, compared to $176.9 million, or 75.0 percent of revenues, during the fourth quarter of 2019. Cost of revenues declined primarily due to decreases in expenses consistent with lower activity levels and RPC's cost reduction initiatives. Cost of revenues as a percentage of revenues increased primarily due to lower pricing for our services and labor inefficiencies resulting from lower activity levels in the fourth quarter as compared to the prior year.
Selling, general and administrative expenses were $26.0 million in the fourth quarter of 2020 compared to $36.8 million in the fourth quarter of 2019. These expenses decreased due to lower employment costs, primarily the result of cost reduction initiatives during previous quarters. Depreciation and amortization was $18.0 million in the fourth quarter of 2020 compared to $40.3 million in the fourth quarter of 2019. The depreciation and amortization decline was primarily due to asset impairment charges recorded in previous quarters which decreased RPC's depreciable property, plant and equipment, as well as lower capital expenditures. RPC also recorded impairment and other charges of $10.3 million during the quarter. These charges included a non-cash pension settlement loss of $4.6 million and costs to finalize the disposal of our former sand facility.
Discussion of Sequential Quarterly Financial Results
RPC's revenues for the quarter ended December 31, 2020 increased by $32.0 million compared to the prior quarter, or 27.5 percent, due to activity increases in most of our service lines. Cost of revenues during the fourth quarter of 2020 increased by $17.0 million, or 16.9 percent, due to expenses which increase with higher activity levels such as materials and supplies and employment expenses. As a percentage of revenues, cost of revenues decreased from 86.5 percent in the third quarter of 2020 to 79.3 percent in the fourth quarter due to more efficient labor utilization and the leverage of higher revenues over direct costs, which are relatively fixed during the short term. RPC's operating loss in the fourth quarter of 2020 was $21.6 million, compared with an operating loss of $31.8 million in the third quarter. RPC's adjusted operating loss for the fourth quarter of 2020 was $11.3 million.1 Adjusted EBITDA for the fourth quarter of 2020 was $7.8 million compared to negative adjusted EBITDA of $12.3 million in the third quarter of 2020.3
The average U.S. domestic rig count during the fourth quarter of 2020 was 311, a 62.1 percent decrease compared to the same period in 2019, but a 22.4 percent increase compared to the third quarter of 2020. The average price of oil during the fourth quarter was $42.62 per barrel, a 24.9 percent decrease compared to the same period in 2019, but a 4.4 percent increase compared to the third quarter of 2020. The average price of natural gas during the fourth quarter was $2.50 per Mcf, a 3.7 percent increase compared to the same period in 2019, and a 25.0 percent increase compared to the third quarter of 2020.
Contact:
Ben M. Palmer
Tel: (404) 321-2140
Email: irdept@rpc.net
RPC, INC. 
