RPC Acquires Pintail to Enhance Oilfield Services and Strengthen Market Position
- RPC acquires Pintail Alternative Energy for approximately $245 million, enhancing its oilfield services in the Permian Basin.
- The acquisition is expected to boost RPC's earnings and cash flow, aligning with its focus on high-margin services.
- RPC aims to leverage Pintail's technology and expertise to strengthen its market position and operational efficiencies.
RPC Expands Oilfield Services Portfolio with Pintail Acquisition
RPC, Inc. announces a significant strategic development with its acquisition of Pintail Alternative Energy, L.L.C., a well-regarded provider of wireline services in the Permian Basin. The transaction, valued at approximately $245 million, is part of RPC's commitment to enhancing its service offerings in the oilfield services sector. With Pintail operating over 30 fleets equipped with both conventional and cutting-edge electric wireline units, RPC aims to bolster its capabilities in a highly competitive market. The acquisition is expected to be accretive to RPC's earnings per share and operating cash flow for the fiscal year 2025, thus aligning with the company's focus on high-margin service lines that generate robust free cash flow.
Pintail's proven track record in the industry, highlighted by its reported revenues of approximately $409 million in 2024, positions it as a formidable player in oilfield services. The company has built strong relationships with Tier 1 exploration and production firms, emphasizing service excellence, safety, and low emissions—criteria that align with RPC's operational ethos. RPC's President and CEO, Ben M. Palmer, states that this acquisition is pivotal for RPC's strategic evolution, enhancing its completion service offerings and further diversifying its portfolio. The deal not only strengthens RPC's market position but also reflects a broader trend within the oilfield services industry toward consolidation and specialization in high-demand sectors.
Furthermore, the financial structure of the acquisition underscores RPC's strategic approach. The deal is comprised of $170 million in cash, $25 million in RPC restricted stock, and a $50 million three-year note to one of Pintail's sellers, which includes adjustments based on Pintail's working capital after the closing. This thoughtful financial arrangement allows RPC to integrate Pintail's operations while maintaining liquidity for other strategic initiatives. Matt Houston, co-founder and President of Pintail, expresses enthusiasm about the partnership, noting that joining RPC provides Pintail with the opportunity to preserve its operating model while benefiting from RPC's broader industry support.
In addition to the acquisition, RPC continues to focus on enhancing its service capabilities and operational efficiencies in the oilfield services sector. With the integration of Pintail, RPC is poised to leverage new technologies and service offerings, positioning itself for sustained growth. The company remains committed to its strategic vision of offering high-quality services while addressing environmental concerns within the industry, underscoring its dedication to innovation and corporate responsibility.