As previously reported, Guggenheim downgraded RPC, Inc to Neutral from Buy following the Q1 miss. Analyst Michael LaMotte lowered estimates to reflect structurally higher operating and maintenance expenses and a reduction in fleet growth expectations. LaMotte views shares as fairly valued and said if the frac cycle rolls over due to a reduction in demand or supply, his new estimates could prove to be too high.

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."