RPC is a Delaware corporation originally organized in 1984 as a holding company
for several oilfield services companies and is headquartered in Atlanta, Georgia.
RPC provides a broad range of specialized oilfield services and equipment primarily
to independent and major oil and gas companies engaged in the exploration, production
and development of oil and gas properties throughout the United States, including
the southwest, mid-continent, Gulf of Mexico, Rocky Mountain and Appalachian
regions, and in selected international markets. RPC acts as a holding company
for the following legal entity groupings: Cudd Energy Services, Thru Tubing
Solutions and Patterson Services. Selected overhead including centralized support
services and regulatory compliance are classified as Corporate. RPC is further
organized into Technical Services and Support Services which are its operating
segments.
RPC manages its business as either services offered on the well site with equipment
and personnel (Technical Services) or services and equipment offered off the
well site (Support Services). The businesses under Technical Services generate
revenues based on equipment, personnel operating the equipment and the materials
utilized to provide the service. They are all managed, analyzed and reported
based on the similarities of the operational characteristics and costs associated
with providing the service. The businesses under Support Services are primarily
able to generate revenues through equipment or services offered off the well
site. During 2017, less than two percent of RPC’s consolidated revenues
were generated from offshore operations in the U.S. Gulf of Mexico. We also
estimate that 70 percent of our 2017 revenues were related to drilling and production
activities for oil, and 30 percent were related to drilling and production activities
for natural gas.
Technical Services include RPC’s oil and gas services that utilize people
and equipment to perform value-added completion, production and maintenance
services directly to a customer’s well. The demand for these services
is generally influenced by customers’ decisions to invest capital toward
initiating production in a new oil or natural gas well, improving production
flows in an existing formation, or to address well control issues. This operating
segment consists primarily of pressure pumping, downhole tools, coiled tubing,
snubbing, nitrogen, well control, wireline and fishing. Customers include major
multi-national and independent oil and gas producers, and selected nationally
owned oil companies. The services offered under Technical Services are high
capital and personnel intensive businesses. The common drivers of operational
and financial success of these services include diligent equipment maintenance,
strong logistical processes, and appropriately trained personnel who function
well in a team environment. 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. The principal markets for this business
segment include the United States, including the southwest, mid-continent, Gulf
of Mexico, Rocky Mountain and Appalachian regions, and selected international
markets.
Support Services include all of the services that provide (i) equipment offered
off the well site without RPC personnel and (ii) services that are provided
in support of customer operations off the well site such as classroom and computer
training, and other consulting services. The primary drivers of operational
success for services and equipment provided off the well site without RPC personnel
are offering safe, high quality and in-demand equipment appropriate for the
well design characteristics. The drivers of operational success for the other
Support Services relate to meeting customer needs off the well site and competitive
marketing of such services. The equipment and services offered include rental
tools, drill pipe and related tools, pipe handling, pipe inspection and storage
services, and oilfield training and consulting services. The demand for these
services tends to be influenced primarily by customer drilling-related activity
levels. The principal markets for this segment include the United States, including
the Gulf of Mexico, mid-continent, Rocky Mountain and Appalachian regions and
project work in selected international locations in the last three years, including
primarily Canada, Latin America and the Middle East. Customers primarily include
domestic operations of independent oil and gas producers and major multi-nationals
and selected nationally owned oil companies.