RPC Posts Pintail Impairment After Revenue Recovers

The Tip Desk · November 10, 2026 · 3 min read

Adjusted net income was $22.8 million, or $0.10 a share, as the company recorded $74.5 million of non-cash Pintail charges.

RPC, Inc. (RES), a diversified oilfield services company, reported a $41.9 million net loss, or $0.20 a share, for the third quarter ended September 30, 2026, after recording $74.5 million of non-cash impairment charges tied to Pintail, its wireline business.

The charges reflected the excess of Pintail’s carrying amount over its estimated fair value. The company said Pintail’s persistent pricing weakness, lower activity and cost pressure led management to conclude the asset group’s carrying amount was not fully recoverable. Of the total, $58.3 million related to other intangible assets and $16.2 million to property, plant and equipment.

Revenue was $467.7 million, up 1% sequentially after a 1% sequential increase to $460.9 million in the second quarter. Technical Services, which accounted for the bulk of the business, generated $444.2 million in revenue and $28.9 million of operating income, up 5%. The company said those results excluded the impairment charges, all of which related to that segment, and were driven primarily by higher activity in coiled tubing and nitrogen.

Within Technical Services, Cudd Pressure Controls’ coiled tubing, nitrogen and snubbing revenues each grew double digits, partially offset by lower Pintail wireline revenues. Support Services revenue was $23.5 million, up 3%, with operating income of $3.6 million, up 56%. The company attributed the segment’s results to higher activity in rental tools and the fixed-cost nature of that service line.

Adjusted net income was $22.8 million, or $0.10 a share, compared with $17.8 million, or $0.08 a share, in the second quarter. Adjusted net income margin was 4.9%. Adjusted EBITDA was $71.5 million, an 8% increase from $66.0 million, and the adjusted EBITDA margin rose 100 basis points sequentially to 15.3%. Adjusted operating income was $27.98 million.

Cost of revenues, excluding depreciation and amortization of $37.0 million, increased to $349.8 million from $345.7 million, primarily reflecting the increase in revenues. Selling, general and administrative expenses were $50.8 million. Acquisition-related employment costs were about $7.3 million, unchanged from the prior quarter, and represented non-cash accounting adjustments tied to the Pintail acquisition that are contingent on continued employment. Depreciation and amortization were $42.7 million.

Interest expense totaled $533 thousand, down 21%, primarily due to a $20.0 million principal payment on a note payable made in the second quarter. Interest income was $1.5 million. The company recorded a $10.0 million income tax benefit on a pretax loss of $51.9 million. The effective benefit rate was 19.2%, which the company said primarily reflected unfavorable permanent differences and the impact of the third-quarter impairment charges.

Cash and cash equivalents decreased $32.9 million year-to-date to $177.1 million at quarter-end, primarily due to working capital needs associated with increased activity and the note payable payment. The company had no outstanding borrowings under its $100 million revolving credit facility during the quarter. Net cash provided by operating activities was $115.7 million year-to-date through the third quarter, and free cash flow was $5.0 million. Working capital was a significant use of cash, the company said, primarily due to higher accounts receivable from increased customer activity and timing of collections, and strategic inventory purchases including key components in short supply.

Dividend payments totaled $26.6 million year-to-date. The board declared a regular quarterly cash dividend of $0.04 a share, payable December 10, 2026, to holders of record November 10.

President and Chief Executive Officer Ben M. Palmer said the breadth of service offerings, balance sheet and capital allocation strategy continue to position RPC to respond to changing customer activity. The company said drilling and completion activity has improved during the year, raising customer activity in several service lines, while inflationary pressures in labor, trucking and fuel continue to create cost pressure.