RES - RPC On A Slow Growth Path; But Valuation Is A Concern

• A Tier 4 dual-fuel pressure pumping fleet addition by the end of Q3 will push RES' topline up in Q4.
• Although the net effect on pricing can be marginally positive, cost hike will keep the pressure on the operating margin.
• Low cash flow is a concern, but a clean balance sheet can position it better than many of the leveraged peers.
• The stock is relatively overvalued at this level.

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