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BUSINESS SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2024
BUSINESS SEGMENT INFORMATION  
BUSINESS SEGMENT INFORMATION

8.    BUSINESS SEGMENT INFORMATION

RPC’s reportable segments are the same as its operating segments. RPC manages its business under Technical Services and Support Services. Technical Services is comprised of service lines that generate revenue based on equipment, personnel or materials at the well site and are closely aligned with completion and production activities of our customers. Support Services is comprised of service lines which generate revenue from services and tools offered off the well site and are more closely aligned with the customers’ drilling activities. Selected overhead including certain centralized support services and regulatory compliance are classified as Corporate.

Technical Services consists primarily of pressure pumping, downhole tools, coiled tubing, cementing, snubbing, nitrogen, well control, wireline, fishing and water management. The services offered under Technical Services are high capital and personnel intensive businesses. The Company considers all of these services to be closely integrated oil and gas well servicing businesses and makes resource allocation and performance assessment decisions based on this operating segment as a whole across these various services.

Support Services consist primarily of drill pipe and related tools, pipe handling, pipe inspection and storage services, and oilfield training services. The demand for these services tends to be influenced primarily by customer drilling-related activity levels.

The Company’s Chief Operating Decision Maker (CODM) assesses performance and makes resource allocation decisions regarding, among others, staffing, growth and maintenance capital expenditures and key initiatives based on the operating segments outlined above.

Segment Revenues:

RPC’s operating segment revenues by major service lines are shown in the following table:

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Three months ended

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Six months ended

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June 30, 

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June 30, 

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(in thousands)

    

2024

    

2023

    

2024

    

2023

​

Technical Services:

​

​

  

​

​

  

​

​

  

​

​

  

​

Pressure Pumping

​

$

147,156

​

$

209,820

​

$

323,412

​

$

474,621

​

Downhole Tools

 

​

100,670

 

​

101,589

​

​

194,464

 

​

208,993

​

Coiled Tubing

 

​

38,984

 

​

38,355

​

​

72,152

 

​

78,421

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Cementing

​

​

28,038

​

​

6,019

​

​

55,789

​

​

12,264

​

Nitrogen

 

​

8,346

 

​

12,719

​

​

17,896

 

​

24,816

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Snubbing

 

​

5,278

 

​

7,672

​

​

10,134

 

​

14,763

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All other

 

​

13,012

 

​

13,844

​

​

24,031

 

​

28,131

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Total Technical Services

​

​

341,484

​

​

390,018

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​

697,878

​

​

842,009

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​

​

​

​

​

​

​

​

​

​

​

​

​

Support Services:

​

 

  

​

 

  

​

 

  

​

 

  

​

Rental Tools

​

​

17,422

​

​

18,334

​

​

33,396

​

​

36,010

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All other

​

​

5,247

​

​

7,506

​

 

10,712

​

 

14,507

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Total Support Services

​

​

22,669

​

​

25,840

​

​

44,108

​

​

50,517

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​

​

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​

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​

Total revenues

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$

364,153

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$

415,858

​

$

741,986

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$

892,526

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The following summarizes revenues for the United States and separately for all international locations combined for the three and six months ended June 30, 2024, and 2023. The revenues are presented based on the location of the use of the equipment or services. Assets related to international operations are less than 10% of RPC’s consolidated assets, and therefore are not presented.

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Three months ended

    

Six months ended

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June 30, 

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June 30, 

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(in thousands)

    

2024

    

2023

    

2024

    

2023

​

United States revenues

​

$

353,478

​

$

409,431

​

$

721,416

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$

878,818

​

International revenues

 

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10,675

 

​

6,427

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​

20,570

 

​

13,708

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Total revenues

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$

364,153

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$

415,858

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$

741,986

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$

892,526

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The accounting policies of the reportable segments are the same as those referenced in Note 1 to these consolidated financial statements. RPC evaluates the performance of its segments based on revenues, operating profits and return on invested capital. Gains or losses on disposition of assets are reviewed by the CODM on a consolidated basis, and accordingly the Company does not report gains or losses at the segment level. Inter-segment revenues are generally recorded in segment operating results at prices that management believes approximate prices for arm’s length transactions and are not material to operating results.

Summarized financial information with respect RPC’s reportable segments for the three and six months ended June 30, 2024, and 2023 are shown in the following table:

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Three months ended

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Six months ended

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June 30, 

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June 30, 

(in thousands)

    

2024

    

2023

    

2024

    

2023

Revenues:

 

​

  

 

​

  

 

​

  

 

​

  

Technical Services

​

$

341,484

​

$

390,018

​

$

697,878

​

$

842,009

Support Services

​

 

22,669

​

 

25,840

​

 

44,108

​

 

50,517

Total revenues

​

$

364,153

​

$

415,858

​

$

741,986

​

$

892,526

Operating income:

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Technical Services

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$

30,198

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$

77,017

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$

62,154

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$

180,550

Support Services

​

 

4,379

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7,920

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7,978

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14,564

Corporate expenses

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(2,447)

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(4,672)

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(6,867)

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(9,753)

Pension settlement charges

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​

—

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(911)

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—

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(18,286)

Gain on disposition of assets, net

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3,338

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3,015

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4,552

​

 

5,951

Total operating income

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35,468

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​

82,369

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​

67,817

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​

173,026

Interest expense

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(99)

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(73)

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(333)

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(145)

Interest income

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3,343

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2,698

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6,308

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4,553

Other income, net

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732

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631

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1,499

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1,392

Income before income taxes

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$

39,444

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$

85,625

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$

75,291

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$

178,826

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As of and for the six months ended

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Technical

​

Support

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​

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​

​

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June 30, 2024

    

Services

    

Services

    

Corporate

    

Total

(in thousands)

 

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Depreciation and amortization

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$

56,522

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$

5,777

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$

38

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$

62,337

Capital expenditures

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115,217

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10,920

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1,662

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127,799

Identifiable assets

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914,418

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81,375

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329,453

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1,325,246

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As of and for the six months ended

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Technical

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Support

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June 30, 2023

    

Services

    

Services

    

Corporate

    

Total

(in thousands)

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Depreciation and amortization

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$

45,580

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$

4,723

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$

25

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$

50,328

Capital expenditures

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97,317

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5,285

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1,886

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104,488

Identifiable assets

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853,837

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​

87,972

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​

286,379

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​

1,228,188

​