Rpc (RES) Q1 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Fri, May 8, 2026 astatine 11:42 AM CDT 14 min read

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DATE

Thursday, May 7, 2026 astatine 9:00 a.m. ET

CALL PARTICIPANTS

• President and Chief Executive Officer — Ben Palmer

• Vice President and Chief Financial Officer — Michael Schmit

Full Conference Call Transcript

Ben Palmer: Thank you, Mike, and convey you for joining our telephone this morning. Today, we'll speech astir our archetypal 4th results and supply you with a fewer operational highlights. First 4th results bespeak a sequential gross summation crossed the bulk of our work lines contempt the wintertime storms aboriginal successful the quarter. Demand strengthened arsenic the 4th progressed. Within Technical Services, Thru Tubing Solutions' downhole tools revenues accrued 11% sequentially. We saw broad-based spot with astir geographic regions increasing treble digits. Thru Tubing Solutions is simply a marketplace person successful downhole completion tools with a portfolio of products supported by proprietary technologies. We person introduced a fig of caller products successful caller years that person helped grow our marketplace enactment position.

Thru Tubing Solutions continues the rollout of its caller metal-on-metal powerfulness section, Metal Max. Adoption is accelerating with maturation crossed some geographic markets and centrifugal size offerings arsenic inventory availability expands. Metal Max's show and plan characteristics are enabling introduction into caller markets and applications antecedently served by accepted powerfulness conception components. Over the past 6 months, Metal Max has strategically displaced accepted powerfulness sections, but inactive lone represents 15% of our powerfulness conception utilization. We proceed to spot meaningful opportunities for further displacement arsenic customers progressively admit the product's show and value.

Thru Tubing Solutions' on-plug technology, which replaces accepted span plugs is picking up momentum with respective operators opting to utilize the exertion arsenic their superior signifier isolation method. We are besides seeing occurrence with our caller aboveground vibratory technology, peculiarly successful longer laterals. Overall, our downhole tools concern is benefiting from longer laterals and the request for technologies to woody with the related completion challenges. Also wrong Technical Services, Cudd Pressure Control's revenues were down 7% sequentially, led by weakness successful the Rockies portion and pugnacious comparables successful good power arsenic the 4th fourth had aggregate ample good power events.

This was partially offset by nitrogen, which was up 13% and snubbing, which was up 8% arsenic instrumentality was good utilized during the quarter. Cudd Pressure Control's snubbing concern is expected to person and statesman investigating the large bore snubbing portion aboriginal this month. This portion was specifically designed for cavern state retention enactment and was built to enactment a semipermanent lawsuit with its retention good attraction schedule. This enactment is regulatory driven and is portion of our effort to proceed diversifying into different markets. Coiled tubing our largest work enactment wrong Cudd Pressure Control was down 7% sequentially. Coiled tubing faced pugnacious comparables successful the Rockies and Northeast regions. Our caller 2 7/8-inch portion continues to beryllium good utilized.