3rd Annual Ultimate Energy Conference December 4, 2013 The Hilton New York Clint Walker Executive Vice President and General Manager, Cudd Energy Services Jim Landers Vice President of Corporate Finance, RPC, Inc.
Position within Evolving Oilfield Services Market Primarily U.S., LandBased, Serving Large Independents in the Drilling and Completion Markets Several of RPCs Largest Service Lines serve the Predominantly Unconventional Completion…
Position within Evolving Oilfield Services Market (cont.) Focused on Return on Invested Capital Standard of Measurement for Strategic Decisions Conservative Capital Structure Consistently Lower Leverage than Peer Average Continuity of…
RPCs Evolution Throughout the Oilfield Cycles Pre 1973 1970s 1984 1980s 1990s Patterson Services founded as a Cudd Pressure Control founded. RPC purchased Chaparral Boats in rental tool, mud service, and Cudd acquired by Rollins.…
RPC Domestic Facilities Corporate Bakken Shale CUDD Pressure Control Patterson ThruTubing Solutions Well Control Marcellus Shale Utica Shale Significant Markets for Woodford RPC, Inc. Fayetteville West Texas (Permian)…
Top Service Lines Service Line Revenue as a Percentage of Consolidated Revenues Year to Date September 30, 2013 Pressure Pumping T hru T ubing Solutions 54% (Downhole T ools) 16% Coiled T ubing Rental T ools Snubbing -…
Pressure Pumping Wellmaintained, high quality fleet concentrated in service intensive oilfield basins 8 in US Land Market 4% US Market Share 711,000 hydraulic horsepower 8
RPCs Pressure Pumping Fleet Distribution Mirrors Current New Wells Drilled and Presence in ServiceIntensive Shale Plays 45% 40% 35% RPC Pressure Pumping Distribution * 30% Well Count, Q3 2013 * * 25% 20% 15% 10% 5%…
Pressure Pumping Growth 2000 to Present From inception in early 2000, RPCs Pressure Pumping service line has grown due to: Acquisitions Capital expenditures Increased service intensity of unconventional completions 10
ThruTubing Solutions ThruTubing Solutions (Downhole Tools) is dedicated to the coiled tubing and snubbing industry Specializes in working downhole tools under pressure Significant YTD revenue growth compared to 2011 15% of YTD…
Coiled Tubing 50 units used to enter new and existing wells to perform a variety of services Growing utilization with unconventional plays and largerdiameter coiled tubing strings 7 U.S. competitor with 5% market share 10%…
Patterson Rental Tools Rents a variety of tools and products required during drilling or reentering a well 4% of 2013 YTD RPC revenues 2% market share Currently Leveraged to Liquids and OilRelated Plays in Bakken and Eagle Ford…
Nitrogen Nitrogen is used for a variety of oilfield applications with coiled tubing, hydraulic workover and pressure pumping 78 nitrogen units used for well stimulation and remediation activities, and nonoilfield uses Growth due…
Snubbing Hydraulic Workover 40 snubbing units hydraulic workover rigs used to perform well workovers while maintaining pressure of the well 4% of YTD 2013 RPC revenues 15
Well Control Worldwide provider of blowout and firefighting services, including pre and post event services Provides rig inspections, drilling plan reviews and emergency response plans
INCOME STATEMENT HIGHLIGHTS For the Third Quarter 2013 RPC INCORPORATED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per share data) Periods ended September 30, (Unaudited) Third Quarter Nine Months…
Financial Results Highlights Third Quarter 2013 Financial Results Q3 2013 Compared to Q3 2012 4.0% Revenue increase due to higher activity in largest service lines 16.1% Operating Profit decrease due to higher materials and…
Debt to Total Book Capital 35% 30% Debt as a percentage of total capital 25% 20% 15% 10% 5% 0% 07 07 08 09 10 10 11 12 13 1 4 3 2 1 4 3 2 1 Q Q Q Q Q Q Q Q Q RPC continues to be conservatively capitalized. 19
Historical Dividends RPC, Inc. Dividends Per Share (* Excludes 4th Quarter 2012 Special Dividend of 0.20 per share) Quarterly Dividend ( per share) Dividend Payout Ratio 24% Compounded Dividend Growth Rate over the past 16…
Sources and Uses of Cash Since the end of 2005, RPC has distributed 435 million to its shareholders in the form of dividends and stock repurchases. 21
Contact Us Corporate Headquarters: RPC, Inc. 2801 Buford Highway, Suite 520 Atlanta, GA 30329 Phone: 4043212140 Fax: 4043215483 Email: irdeptrpc.net Investor website: www.rpc.net Above: Operational Headquarters, The…
Appendix A EBITDA Reconciliation (000s) Periods ended September 30, (Unaudited) Third Quarter % Nine Months % BETTER BETTER 2013 2012 (WORSE) 2013 2012 (WORSE) Reconciliation of Net Income to EBITDA Net Income 53,760 66,040 (18.6)…
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