RPC reported $375.5 million in revenue in the first quarter, up 31.9% from the prior year. The oil-field service company benefited from higher customer activity levels and pricing. Earnings also soared. The company reported $46.9 million of net income, or $0.22 per share, triple what it posted in last year's first quarter.
RPC expects the good times in the oil-field service market to continue. Because of that, it reactivated a pressure fleet that it started utilizing in the third quarter. It's also beginning to allocate capital to maintain its existing capacity by refurbishing a fleet that it expects will enter service early next year. It also ordered a new pressure pumping fleet that should get delivered in the first half of next year.
The company's improving financial strength is allowing it to make these investments, which should enable it to generate strong cash flow in the coming quarters. Given that view, RPC reinstated a quarterly dividend, declaring its first one since 2019.
Higher oil and gas prices are incentivizing producers to drill more wells. That's providing more work for oil-field service companies like RPC. The company expects these market conditions to continue for the next several quarters, setting it up to keep growing its revenue and cash flow. If that outlook comes to fruition, it could give RPC's stock the fuel to continue rising.