RPC, Inc. Q1 FY2026 earnings call

• Spot is incrementally positive but not broad-based currently. • Pressure pumping makes up 31% of the revenue. • Tubing and coil's business has a different exposure to spot compared to pressure pumping. • There are discussions regarding reactivating fleets, but not at the current pricing levels; visibility into pricing, work duration, and volume is required. • The stacked fleets are not staffed, and reactivating them would take time and planning. • Labor could be a challenge as people might leave for other places, which could potentially affect pricing firming. • The business related to the product lines has good margins but had a tough time in the recent quarters and is now seeing some improvement, though not widespread yet.

Pressure pumping constitutes 31% of the overall revenue. Tubing and coil have larger customers, so spot is not as significant a part of their business as it is for pressure pumping. The business related to the mentioned product lines faced challenges in the last couple of quarters but is now showing some improvement, although it is not yet broad-based.

• There is no immediate focus on leaning into reactivating fleets; the first step is to make use of higher prices with the already deployed fleets. • There is hope that 50 new rigs will come online to drive price and activity, but it is still early to be definite about reactivating fleets.

• Uncertainty in reactivating fleets due to the need for visibility into pricing, work duration, and volume. • Labor risk as people may leave for other places, which could impact the ability to firm up pricing.

Q: What is the disconnect between E&P calls and land drillers' activity calls, and about product lines tied to drilling?

A: Pricing hasn't reached a level where it's prompting action yet, so until a fair price is achieved, more activity won't be seen right away. Our business related to the product lines is small, faced challenges in the recent past but is now showing some improvement.

Q: What proportion of inquiries are from public vs private operators?

A: Likely more from privates.