RPC, Inc. Reports First Quarter 2009 Financial Results

ATLANTA, April 29 /PRNewswire-FirstCall/ -- RPC, Inc. (NYSE: RES) today
announced its unaudited results for the first quarter ended March 31, 2009.
RPC provides a broad range of specialized oilfield services and equipment
primarily to independent and major oilfield companies engaged in the
exploration, production and development of oil and gas properties throughout
the United States and in selected international markets.

For the quarter ended March 31, 2009, revenues decreased 10.6 percent to
$176,271,000 compared to $197,227,000 in the first quarter last year.
Revenues decreased compared to the prior year due to lower equipment
utilization and more competitive pricing in most of our service lines.
Operating profit for the quarter declined 67.0 percent to $8,397,000 compared
to $25,441,000 in the prior year. Net income was $4,466,000 or $0.05 diluted
earnings per share, compared to $14,757,000 or $0.15 diluted earnings per
share last year. Earnings before interest, taxes, depreciation and
amortization (EBITDA) declined by 23.1 percent to $40,560,000 compared to
$52,760,000 in the prior year(1).

Cost of revenues was $109,970,000, or 62.4 percent of revenues, during the
first quarter of 2009, compared to $117,670,000, or 59.7 percent of revenues,
in the prior year. The decrease in these costs was due to the variable nature
of several of these expenses, including fuel and materials and supplies. As a
percentage of revenues, cost of revenues increased because of lower pricing
for our services, higher maintenance and repairs expenses and negative
leverage from direct personnel costs. Selling, general and administrative
expenses decreased by 2.5 percent in the first quarter of 2009 to $27,606,000
from $28,317,000 in the prior year. This decrease was due primarily to lower
incentive compensation and the impact of cost control measures. As a
percentage of revenues, however, these costs increased to 15.7 percent in 2009
compared to 14.4 percent last year. Depreciation and amortization increased
to $32,020,000 during the quarter, compared to $27,326,000 last year, due to
capital expenditures made during the last year. Interest expense decreased
from $1,471,000 last year to $594,000 in 2009 due to reduced interest rates
and a lower average balance on RPC's revolving credit facility.

"During the first quarter of 2009 RPC began to experience the dramatic impact
of declining domestic activity and lower commodity prices that began in the
latter part of 2008," stated Richard A. Hubbell, RPC's President and Chief
Executive Officer. "Many of our customers delayed their drilling and
completion activities due to low commodity prices, unfavorable opinions about
the economy, or lack of financing due to the unstable credit markets. The
average domestic rig count during the first quarter was 1,344, a 24.1 percent
decrease compared to the same period in 2008. The price of natural gas
decreased 47.6 percent, and the price of oil decreased 55.5 percent during
this period compared to the prior year. RPC's revenues decreased by less than
these industry benchmarks due to some capacity increases and our presence in
several of the unconventional drilling areas in the domestic market. Although
the rig count declined during the quarter, almost 57 percent of the wells that
were drilled were unconventional. This is a higher percentage than last year,
and is an indication of relatively higher activity in this type of drilling.

"We continue to see indications during the second quarter that the oil and gas
industry is in the midst of a harsh cyclical downturn. We continue to focus
on managing our direct costs, and we have started reducing our overhead as
well. Our capital expenditures were $19.5 million during the quarter, as we
focus on maintaining a conservative balance sheet and investing only in those
projects which have acceptable financial returns in this subdued operating
environment. The balance on our revolving credit facility at the end of the
quarter was $132.5 million, a $42 million decrease compared to the end of
2008. We will continue our cost reduction and capital conservation efforts as
we continue in this cyclical downturn," concluded Hubbell.

Summary of Segment Operating Performance

RPC's business segments are Technical Services and Support Services.

Technical Services includes RPC's oilfield service lines that utilize people
and equipment to perform value-added completion, production and maintenance
services directly to a customer's well. These services are generally directed
toward improving the flow of oil and natural gas from producing formations or
to address well control issues. The Technical Services segment includes
pressure pumping, coiled tubing, hydraulic workover services, nitrogen,
downhole tools, surface pressure control equipment, well control, and fishing
tool operations.

Support Services includes RPC's oilfield service lines that provide equipment
for customer use or services to assist customer operations. The equipment and
services offered include rental of drill pipe and related tools, pipe
handling, inspection and storage services and oilfield training services.

Technical Services revenues declined 10.7 percent for the quarter compared to
the prior year, impacted by competitive pricing and lower equipment
utilization. Support Services revenues decreased by 10.0 percent during the
quarter compared to the prior year because of decreased activity in the rental
tool service line, which is the largest service line within Support Services.
Operating profit decreased in Technical and Support Services segments due to
lower revenues and higher costs and expenses as a percentage of revenues.

Three Months Ended March 31
2009 2008
(in thousands)
Revenues:
Technical services $151,079 169,231
Support services 25,192 27,996
Total revenues $176,271 197,227
Operating Profit:
Technical services $6,149 20,687
Support services 3,706 5,858
Corporate expenses 3,180 2,631
Gain on disposition of assets, net (1,722) (1,527)
Total operating profit $8,397 25,441
Other Income/(Expense), net 143 (7)
Interest Expense 594 1,471
Interest Income 33 22

Income before income taxes $7,979 23,985

RPC, Inc. will hold a conference call today, April 29, 2009 at 9:00 a.m. EDT
to discuss the results of the first quarter. Interested parties may listen in
by accessing a live webcast in the investor relations section of RPC, Inc.'s
Web site at www.rpc.net. The live conference call can also be accessed by
calling (888) 744-3690 or (706) 643-1513 and using the access code #92502165.

A replay of the conference call will be available in the investor relations
section of RPC, Inc.'s Web site (www.rpc.net) beginning approximately two
hours after the call. The rebroadcast will also be available until May 6,
2009 via telephone by calling (800) 642-1687 or (706) 645-9291 and using the
access code #92502165.

RPC provides a broad range of specialized oilfield services and equipment
primarily to independent and major oilfield companies engaged in the
exploration, production and development of oil and gas properties throughout
the United States, including the Gulf of Mexico, mid-continent, southwest and
Rocky Mountain regions, and in selected international markets. RPC's investor
website can be found at www.rpc.net.

Certain statements and information included in this press release constitute
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements include our
statements that we continue to see indications during the second quarter that
the oil and gas industry is in the midst of a harsh cyclical downturn; our
ability to continue to manage our direct costs and reduce overhead; our
ability to maintain a conservative balance sheet and invest only in those
projects which have acceptable financial returns; and our plans to continue
our cost reduction and capital conservation efforts as we continue in this
cyclical downturn. These statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of RPC to be materially different from any future
results, performance or achievements expressed or implied in such
forward-looking statements. Such risks include changes in general global
business and economic conditions; drilling activity and rig count;
unanticipated demands on our liquidity or difficulties in collecting trade
accounts receivable; turmoil in the financial markets and the potential
difficulty to fund our capital needs; the potentially high cost of capital
required to fund our capital needs; the possibility that recent unconventional
exploration and production activities may cease or change in nature so as to
reduce demand for our services; the possibility of further declines in the
price of oil and natural gas, which tend to result in a decrease in drilling
activity and therefore a decline in the demand for our services; the actions
of the OPEC cartel, the ultimate impact of current and potential political
unrest and armed conflict in the oil-producing regions of the world, which
could impact drilling activity; adverse weather conditions in oil or gas
producing regions, including the Gulf of Mexico; competition in the oil and
gas industry; an inability to implement price increases; and risks of
international operations. Additional discussion of factors that could cause
the actual results to differ materially from management's projections,
forecasts, estimates and expectations is contained in RPC's Form 10-K filed
with the Securities and Exchange Commission for the year ended December 31,
2008.

For information about RPC, Inc., please contact:

Ben M. Palmer Jim Landers
Chief Financial Officer Vice President, Corporate Finance
(404) 321-2140 (404) 321-2162
irdept@rpc.net jlanders@rpc.net

RPC INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per share
data)

Periods ended March 31, (Unaudited) First Quarter
% BETTER
2009 2008 (WORSE)
REVENUES $176,271 $197,227 (10.6)%
COSTS AND EXPENSES:
Cost of revenues 109,970 117,670 6.5
Selling, general and administrative
expenses 27,606 28,317 2.5
Depreciation and amortization 32,020 27,326 (17.2)
Gain on disposition of assets, net (1,722) (1,527) 12.8
Operating profit 8,397 25,441 (67.0)
Interest expense (594) (1,471) 59.6
Interest income 33 22 50.0
Other income (expense), net 143 (7) NM
Income before income taxes 7,979 23,985 (66.7)
Income tax provision 3,513 9,228 61.9
NET INCOME $4,466 $14,757 (69.7)%

EARNINGS PER SHARE
Basic $0.05 $0.15 (66.7)%
Diluted $0.05 $0.15 (66.7)%

AVERAGE SHARES OUTSTANDING
Basic 96,178 96,586
Diluted 96,729 98,091

RPC INCORPORATED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
At March 31, (Unaudited) (In thousands)
2009 2008
ASSETS
Cash and cash equivalents $2,312 $11,490
Accounts receivable, net 153,307 173,912
Inventories 56,611 34,418
Deferred income taxes 6,004 4,594
Income taxes receivable 12,279 7,622
Prepaid expenses and other current assets 4,294 5,901
Total current assets 234,807 237,937
Property, plant and equipment, net 461,480 465,957
Goodwill 24,093 24,093
Other assets 7,217 9,372
Total assets $727,597 $737,359

LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $50,633 $80,965
Accrued payroll and related
expenses 12,888 14,460
Accrued insurance expenses 4,764 4,909
Accrued state, local and other taxes 3,196 2,281
Income taxes payable 1,007 4,830
Other accrued expenses 315 513
Total current liabilities 72,803 107,958
Accrued insurance expenses 8,377 8,921
Notes payable to banks 132,500 169,050
Pension liabilities 12,034 5,070
Other long-term liabilities 2,065 1,413
Deferred income taxes 53,706 30,531
Total liabilities 281,485 322,943
Common stock 9,843 9,858
Capital in excess of par value 3,322 12,792
Retained earnings 443,018 394,244
Accumulated other comprehensive loss (10,071) (2,478)
Total stockholders' equity 446,112 414,416
Total liabilities and stockholders' equity $727,597 $737,359

Appendix A

RPC has used the non-GAAP financial measure of earnings before interest,
taxes, depreciation and amortization (EBITDA) in today's earnings release, and
anticipates using EBITDA in today's earnings conference call. EBITDA should
not be considered in isolation or as a substitute for operating income, net
income or other performance measures prepared in accordance with GAAP. RPC
uses EBITDA as a measure of operating performance because it allows us to
compare performance consistently over various periods without regard to
changes in our capital structure. We are also required to use EBITDA to
report compliance with financial covenants under our revolving credit
facility. A non-GAAP financial measure is a numerical measure of financial
performance, financial position, or cash flows that either 1) excludes
amounts, or is subject to adjustments that have the effect of excluding
amounts, that are included in the most directly comparable measure calculated
and presented in accordance with GAAP in the statement of operations, balance
sheet or statement of cash flows, or 2) includes amounts, or is subject to
adjustments that have the effect of including amounts, that are excluded from
the most directly comparable measure so calculated and presented. Set forth
below is a reconciliation of EBITDA with Net Income, the most comparable GAAP
measure. This reconciliation also appears on RPC's investor website, which
can be found on the Internet at www.rpc.net.

Periods ended March 31, (Unaudited) First Quarter
% BETTER
2009 2008 (WORSE)
Reconciliation of Net Income to EBITDA
Net Income $4,466 $14,757 (69.7)%
Add:
Income tax provision 3,513 9,228 61.9
Interest expense 594 1,471 59.6
Depreciation and amortization 32,020 27,326 (17.2)
Less:
Interest income 33 22 50.0
EBITDA $40,560 $52,760 (23.1)%
EBITDA PER SHARE
Basic $0.42 $0.55 (23.6)%
Diluted $0.42 $0.54 (22.2)%

(1) EBITDA is a financial measure which does not conform to generally accepted
accounting principles (GAAP). Additional disclosure regarding this non-GAAP
financial measure is disclosed in Appendix A to this press release.

SOURCE RPC, Inc.

Ben M. Palmer, Chief Financial Officer, +1-404-321-2140, irdept@rpc.net; or
Jim Landers, Vice President, Corporate Finance, +1-404-321-2162,
jlanders@rpc.net, both of RPC, Inc.