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RPC Q1: Pressure Pumping Oversupply, Erratic Activity; IDs Things That May Help

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RPC Inc. reported its Q1 2019 results. Below are the highlights from its report and conference call.

Erratic Activity Levels; Pressure Pumping Market Oversupplied

Just like Schlumberger, Halliburton and the other service execs, RPC President & CEO Richard A. Hubbell acknowledged the quarter was plagued by "inconsistent customer activity levels [and] seasonal weakness."

• Hubbell commented: "Our activity levels declined compared with the prior quarter because of seasonal weakness and inconsistent customer activity levels. We believe the pressure pumping market continues to be oversupplied because of increasing efficiency achieved by completion services providers. Activity levels in our service lines, other than pressure pumping, were in line with sequential changes in the rig count and completion activities in the U.S. domestic oilfield."

Higher Oil Prices, Improved Permian Takeaway Should Help

Hubbell did say that he believes the higher commodity prices we've seen lately as well as the improvement in Permian takeaway capacity should help stabilize the market in the near-term:

• He commented: "Moderately higher oil prices and the resolution of Permian Basin takeaway capacity concerns should provide positive catalysts for near-term market opportunities. With continued focus on increasing our operating efficiencies and providing quality services, we can improve the value we provide to our customers."