RES - RPC surges as Q2 earnings top estimates; dividend resumes

RPC Inc. ( NYSE: RES ) +10.3% in Wednesday's trading after initially surging as much as 21%, after posting stronger than expected Q2 GAAP earnings as revenues nearly doubled, and saying it is reinstating its quarterly dividend.

Q2 net income swung to a profit of $46.9M, or $0.22/share, from a year-earlier loss of $726K, and revenues spiked 99% Y/Y to $375M, citing higher customer activity levels and pricing improvements.

Q2 EBITDA improved nearly five-fold to $80.6M from $17.3M in the year-ago quarter.

The oil and gas services company also is resuming the payment of quarterly dividends, which were suspended in 2019 because of weakness in the sector.

"Given our favorable view of the intermediate term operating environment and high equipment utilization, we are allocating capital to maintain the capacity of our pressure pumping fleet to offset future fleet retirements," the company said.

RPC ( RES ) shares have gained 45% YTD and 65% during the past year .

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