After C&J (CJES) fell over 50% over the past several months, SunTrust blamed the decline on debt concerns. The firm says that the company's covenants are likely to be eased soon, enabling it to survive. SunTrust adds that C&J generated higher Q2 EBITDA than RPC, Inc. (RES), but the latter company's enterprise value is significantly higher than that of C&J. SunTrust reiterates a Buy rating on C&J.

Reports Q1 revenue $377.83M, consensus $390.92M. "Our results reflected a modestly weaker oilfield services activity environment with continued competitive pressures," stated Ben Palmer, RPC's president and CEO. "Our first quarter pressure pumping activity and utilization were below the fourth quarter. Pumping industry capacity remains high, particularly in the Permian, with bidding results and pricing conversations indicating a highly competitive market. We are optimistic that if current oil price momentum holds, our customers would steadily increase activity in the second half of 2024. Looking further out, as large E&P consolidation transactions close and non-core assets are potentially divested, development of this acreage could provide demand tailwinds."