RPC Report 11.7.14

November 7, 2014
RPC, INC.
RES/NYSE
Continuing Coverage: Weathering the Storm
Investment Rating: Market Outperform
PRICE: $ 16.15 S&P 500: 2,031.92 DJIA: 17,573.93 RUSSELL 2000: 1,173.32

 RPC’s stock will rebound while oil prices remain low
 Conservative capital structure prepares RPC for decreases in revenues
and working capital
 RPC’s capital expenditures meet demands for hydraulic fracturing
 Increases in service intensity and percentage of unconventional rigs
will partially offset losses from decreases in oil drilling activity
 RPC is an attractive target in current consolidation market
 Our 12‐month target price is $19.00

Valuation
EPS
P/E
CFPS
P/CFPS
2013 A
$ 0.77
21.0x
$ 1.79
9.0x
2014 E
$ 1.06
15.2x
$ 2.05
7.9x
2015 E
$ 1.01
15.9x
$ 2.40
6.7x
Market Capitalization Stock Data
Equity Market Cap (MM): $ 3,530.42 52‐Week Range: $14.87 ‐ $25.15
Enterprise Value (MM): $ 3,690.94 12‐Month Stock Performance: ‐5.90%
Shares Outstanding (MM): 218.60 Dividend Yield: 2.60%
Estimated Float (MM): 60.63 Book Value Per Share: $ 4.85
6‐Mo. Avg. Daily Volume: 1,252,980 Beta: 1.24
Company Quick View:
RPC, Inc. keeps cracking with fracking. RPC spun‐off from Rollins, Inc. in
1984 and has grown into an international holdings company with 3,900
employees. Through its subsidiaries, Cudd Energy Services, Thru Tubing
Solutions, Patterson Services, and Bronco Oilfield Services, the Company
provides oil and gas field services and equipment for energy companies
pursuing the exploration, production, and development of oil and natural
gas. The Company differentiates itself through its expertise in hydraulic
fracturing. RPC is headquartered in Atlanta, Georgia and operates
primarily in the U.S., with minor operations in Africa, Canada, China,
Eastern Europe, Latin America, the Middle East, and New Zealand.
Company Website: www.rpc.net
Analysts: Investment Research Manager:
Douglas Taft Hulsey Nikunj Bajaj
Jeremy Goh
Matthew Ryan Solnick
Linda Yuntian Long
The BURKENROAD REPORTS are produced solely as a part of an educational program of Tulane University's
Freeman School of Business. The reports are not investment advice and you should not and may not rely on
them in making any investment decision. You should consult an investment professional and/or conduct your
own primary research regarding any potential investment.
Wall Street's Farm Team
BURKENROADREPORTS

RPC Incorporated (RES) BURKENROAD REPORTS (www.burkenroad.org) November 7, 2014
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Figure 1: 5‐year Stock Price Performance
Source: Yahoo Finance
INVESTMENT SUMMARY
We rate RPC, Inc. as a Market Outperform with a 12‐month price target of $19.00.
RPC provides oil and gas field services and equipment to energy companies pursuing the
exploration, production, and development of oil and natural gas in the U.S. Recent drops in oil
prices to $80 per barrel will decrease rig counts in the U.S. starting in the second half of 2015.
We believe oil prices will remain around $80 per barrel over the next two years based on our
projection that OPEC will continue to accept low prices. The drop in oil prices will begin
decreasing revenue for RPC in the second half of 2015 when contracts expire and new oil
drilling activity decreases. Still, RPC’s earnings over the next three quarters will continue to
grow significantly. This is attributed to the expansion of the Company’s pressure pumping fleet
as well as increasing service intensity and percentage of unconventional rigs. We believe the
recent (27.8%) drop in RPC’s stock price is an overreaction to the recent drop in oil prices. RPC’s
stock is now undervalued due to investor fear in energy. Additionally, we believe RPC is
extremely attractive compared to its peers due to the Company’s conservative capital structure
and ability to effectively allocate capital expenditures to meet customer’s drilling demands.
RPC’s strong liquidity and solvency compared to its peers will protect the Company during the
next two years of low oil prices. RPC’s current liquidity ratio of 3.3x and debt‐to‐equity ratio of
14.3% are much stronger than industry averages of 1.3x and 39.4%, respectively. Also, the
Company has almost $174 million available on its revolving credit facility until January 2019. As
such, RPC’s conservative capital structure positions the Company to perform far better than its
peers while oil prices remain low and the U.S. oil and gas field services industry experiences
decreases in revenue and working capital. Additionally, the Company’s position make it an
extremely attractive acquisition target in a robust consolidation market for the industry.

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Oil and natural gas production is in the process of changing from conventional drilling to
unconventional, horizontal drilling. Pressure pumping, the process of hydraulic fracturing in
unconventional rigs, makes up over 55% of RPC’s revenue. RPC meets the growing demand of
its customers for higher service intensity and more unconventional drilling with its advanced
and growing fleet of pressure pumping equipment. In fact, RPC will spend over $250 million in
the second half of 2014 to expand and maintain its pressure pumping fleet in order to meet
increasing customer demands. However, going forward RPC will decrease its capital
expenditures in preparation for decreases in new oil drilling activity when contracts expire in
the second half of 2015. Although rig counts will decrease in the near future with the drop in oil
prices, service intensity and the percentage of unconventional rigs will continue to rise. These
market trends will cushion RPC’s losses from decreases in new oil drilling activity.
Table 1: Historical Burkenroad Ratings and Prices
Date Rating Price*
11/08/2013 Market Perform $17.45
11/11/2011 Market Outperform $12.82
04/15/2001 Buy $1.34
*Price at time of report date
INVESTMENT THESIS
We established a 12‐month target price of $19.00 and a rating of Market Outperform for
RPC, Inc. Our analysis of RPC’s future performance is driven by several market and internal
conditions: oil prices, service intensity and unconventional rig counts, and RPC’s capital
structure, capital expenditures, and share ownership.
RPC’s stock will rebound while oil prices remain low
The recent drop in oil prices to $80 per barrel will likely persist over the next two years or even
longer. The U.S. move towards oil independence caused OPEC to maintain production quotas in
Saudi Arabia and remain comfortable with oil prices around $80 per barrel. As such, energy
companies have plummeted in the markets, seeing average losses in the industry of 30%. RPC’s
stock price dropped from $22.37 on September 26 to $16.15 on November 7. We believe this
(27.8%) drop is an extreme overreaction to the recent decline in oil prices and RPC’s stock is
currently undervalued.

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RPC’s contracts with its customers will not expire until the second half of 2015. As such, strong
earnings over the next three quarters will increase investor confidence in RPC. The Company’s
extremely conservative capital structure, continued increases in service intensity, and
percentage of unconventional rigs prepare RPC for decreases in new oil drilling activity in the
second half of 2015.
Conservative capital structure prepares RPC for decreases in revenues and working capital
RPC’s conservative capital structure will maintain the Company’s liquidity and solvency during
low oil prices. RPC’s current liquidity ratio of 3.3x and debt‐to‐equity leverage ratio of 14.3% are
much stronger than the industry averages of 1.3x and 39.4%, respectively. Additionally, the
Company has almost $174 million available on its revolving credit facility through January 2019.
RPC’s strong liquidity and solvency will position the Company to outperform its peers while the
U.S. oil and gas field services industry experiences low revenue and working capital during low
oil prices.
RPC’s capital expenditures meet demands for hydraulic fracturing
RPC successfully maintains and grows equipment in connection with changing drilling demands.
Significant increases in unconventional rig counts and service intensity have increased the
demand for oil and gas field service companies, like RPC, specializing in hydraulic fracturing and
unconventional rigs. RPC spent $237.5 million on capital expenditures through the first three
quarters of 2014, and management guidance projects another $137.5 million of capital
expenditures in the final quarter of 2014. Recent capital expenditures have been focused
towards RPC’s pressure pumping fleet, one of the most significant drivers in the Company’s
revenue numbers. The recent increases in property, plant, and equipment (PP&E) will increase
revenues for RPC as equipment is put to work. Increases in service intensity will force RPC to
focus capital expenditures on maintenance of equipment that is working harder. However, we
believe RPC will decrease capital expenditures in preparation for low oil prices and decreases in
oil drilling activity in the near future.
Increases in service intensity and percentage of unconventional rigs will partially offset losses
from decreases in oil drilling activity
RPC’s main source of revenue is pressure pumping. Consequentially, the recent drop in oil
prices will decrease total rig counts and oil drilling activity, and decrease the demand for RPC’s
pressure pumping and other products and services. There will be a significant decrease in rig
counts once contracts expire in mid‐2015. We predict unconventional rig counts in the U.S. will
remain around 1,500 rigs over the next three quarters and then drop to 1,300 rigs by the end of
2015. However, continuous increases in the percentage of unconventional rigs and service
intensity per rig will provide relief for RPC. Recent growth in unconventional rig counts have
significantly increased the demand for RPC’s pressure pumping services and increased recent
revenues. Unconventional rigs increased 12.3% year over year from 459 rigs on July 2, 2004 to
1,490 rigs on July 3, 2014, with an average increase of 7.5% per year over the past decade (see
Figure 2). Also, the amount of service provided per rig has recently increased significantly in an
effort to produce more oil in a shorter time period.

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Increases in service intensity are increasing RPC’s revenue exponentially faster than the
Company’s rising operating expenses. We believe service intensity and percentage of
unconventional rigs will continue to grow and partially offset RPC’s losses when low oil prices
decrease new oil drilling activity.
Figure 2: Percentage of Unconventional Rigs in the U.S.

Source: Baker Hughes Rig Count
RPC is an attractive target in current consolidation market
RPC’s conservative capital structure and advanced pressure pumping service make the
Company extremely attractive to peers interested in increasing market share for hydraulic
fracturing services. The recent drop in oil prices has turned the U.S. oil and gas field services
industry into a perfect environment for mergers and acquisitions. Oil and gas field service
companies’ are currently undervalued due to plummeting stock prices. As such, companies in
the industry may start looking to consolidate with discounted peers in an effort to survive
decreases in oil drilling activity. Consolidation will allow companies to increase market share
and cut overall costs. Additionally, having fewer companies in the industry will decrease
competition and potentially increase pricing for services. In contrast, RPC’s position and
strategy make the Company an unlikely candidate to pursue full acquisitions. However, RPC
may look to strengthen its operations through acquiring discounted equipment or segments
sold off from consolidations.
Management retains controlling interest of RPC through insider share ownership
RPC has an equity structure with a market capitalization of $4.73 billion and 215.2 million
shares outstanding. The Company’s float is 28%, which indicates that insiders in the Company
have well above majority influence in the decisions of the Company. This current insider
ownership position presents an issue for institutional investors who might be seeking a
significant interest in the Company. RPC also has a share repurchasing program that it has
steadily and consistently exercised over the last few years.

6
This program serves a dual function of shrinking the number of outstanding shares available to
the public and, consequently, giving back to its current shareholders while increasing the price
earnings ratio per share. RPC partially uses its retained earnings to give back to its shareholders
through issuing quarterly cash dividends that have been $0.105 per share each of the past two
quarters.
VALUATION
Our team arrived at a 12‐month target price of $19.00 for RPC, Inc. using an average of the
target prices produced from the price to earnings ratio (P/E) method and the enterprise value
to earnings before interest, tax, depreciation and amortization (EV/EBITDA) method (see Figure
3).
P/E Ratio Method
The P/E ratio method produced a target price of $19.48. We decided to use RPC’s current P/E
ratio, 17.655x, rather than a peer average due to extreme variation in the comparable
companies P/E ratios. We multiplied RPC’s current P/E ratio by the sum of forecasted earnings
per share over the next four quarters, $1.10 per share, to arrive at the target price of $19.48.
EV/EBITDA Method
The EV/EBITDA method produced a target price of $18.78. We used an average of RPC’s peer’s
EV/EBITDA to find an appropriate EBITDA multiple to value RPC. Between C&J Energy Services,
Seventy Seven Energy, Inc., Basic Energy Service, Inc., and Patterson‐UTI Energy, Inc. we arrived
at an average EBITDA multiple of 6.085x. We then multiplied the average EBITDA multiple by
the sum of our forecasted EBITDA over the next four quarters, $662,741, and finally divided that
by the forecasted weighted shares outstanding in four quarters to arrive at the target price of
$18.78.
Figure 3: 12‐Month Target Price Valuation

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INDUSTRY ANALYSIS
RPC, Inc. operates in the U.S. oil and gas field services industry. The industry provides a range of
equipment and solutions to customers engaging in the exploration, production, and
development of oil and natural gas. The industry generated 2013 revenue of $112.7 billion from
11,000 companies. Halliburton Company, Schlumberger Limited, and Baker Hughes
Incorporated are the major players in the industry, comprising 32.5% of the market share. The
U.S. oil and gas field services industry is continuously evolving to meet the demands of
exploration and production companies.
Macroeconomic Forces
Oil and natural gas prices are the key drivers for the number of active rigs in the U.S. and,
subsequently, the number of active oil and gas rigs in the U.S. is the key determinant of demand
for oil and gas field services. The most common metric for oil price is NYMEX Light Sweet Crude
Oil (WTI). Oil prices have ranged from $76‐$114 a barrel with a daily average of $97 a barrel
since 2011. However, current oil prices of $80 per barrel are a (11.8%) decrease over the last 12
months and a (2.3%) annual decrease over the past five years. Prior to increases in Saudi
Arabian oil drilling at the end of September, consistent high oil prices were increasing activity
levels and increasing service intensity from oilfield service companies. In fact, the North
American rig count has ranged from 876‐2,026 rigs with an average of 1,663 rigs since 2009. The
current count of 1,929 rigs is a 9.7% increase over the last 12 months and a 3.8% annual
increase over the past five years. Furthermore, the percentage of oil focused rigs increased
from 21% in 2009 to 83% currently. Overall, rig counts remained relatively constant over the
past few years compared to prior periods, but the demand for oil and gas field services per rig
has increased as a result of a substantial increase in activity per rig. However, recent drops in oil
prices will decrease overall rig counts and demand for oilfield services in the coming quarters,
as new demand for oil drilling decreases.
Industry Trends
A recent trend among oil and natural gas companies shifts drilling techniques from conventional
wells (vertical wells) to unconventional wells (horizontal and directional wells). Currently, 80%
of U.S. wells are unconventional and 20% are conventional. Unconventional wells cover a much
larger area in the ground and produce a much better yield of barrels of oil per day (BOPD) than
conventional wells (see Figure 4). Unconventional wells are also significantly more expensive
because they require an extraordinary amount of equipment and services. As a result, oil and
gas field service companies are experiencing increases in demands for services as the
percentage of unconventional wells continues to grow. The strongest players in the U.S. oil and
gas field services industry are companies offering the most reliable and efficient equipment and
solutions for unconventional drilling.

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Figure 4: Unconventional (Horizontal) Well with Multi‐Stage Frac Technology

Source: Google Images
The recent drop in oil prices has turned the U.S. oil and gas field services industry into an
attractive environment for mergers and acquisitions. Oil and gas field service companies’ stock
prices have plummeted, resulting in low P/E ratios and undervalued companies. Oil and gas field
service companies may start looking to acquire or merge with peers with similar operations in
an effort to survive decreases in oil drilling activity. Successful consolidations will allow
companies to increase market share and cut overall costs. Additionally, there will be fewer
companies in the industry and pricing for services will increase. RPC’s conservative capital
structure and advanced pressure pumping service make the Company extremely attractive to
peers interested in increasing market share for hydraulic fracturing services. Also, RPC may
strengthen its services through acquiring discounted equipment or segments sold off from
consolidations.
RPC’s Position
RPC is a specialized company within the U.S. oil and gas field services industry. The major
players, Halliburton, Schlumberger, and Baker Hughes have a combined market cap of $215
billion and provide a range of services on a large scale. The rest of the market is comprised of
smaller companies that provide fewer, specialized services (see Figure 5). With a market
capitalization of just $4.6 billion, RPC focuses on growing previously successful operations, such
as pressure pumping for hydraulic fracturing, coiled tubing, and snubbing.

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Figure 5: 2013 U.S. Oil and Gas Field Services’ Revenues with Market Share
(In Billions)

Source: IBISWorld
Bargaining Power of Suppliers
The suppliers to the U.S. oil and gas field services industry have high bargaining power. This
industry requires highly specialized equipment and raw materials that are not readily available.
Thus, RPC faces limited flexibility in choosing its suppliers. Furthermore, hydraulic fracturing,
RPC’s biggest service, requires a very specific type of equipment and manpower. As a result,
RPC balances its expenditures between acquiring new equipment and maintaining existing
equipment.
RPC’s highest operational expense is service materials, especially proppant. Proppant is a
material used to “prop” fractured rocks open to maintain oil and gas flow. This material is
usually sand and varies in grade and uniformity depending on the quality. RPC has made efforts
to reduce supplier power by acquiring a sand mine in Wisconsin that provides approximately
15% of the proppant RPC’s customers require. Another raw material RPC frequently uses is
guar, a plant grown mainly in India and Pakistan that is commonly used in shampoo, gum, and
other consumer products. The primary function of guar in the U.S. oil and gas field services
industry is to increase the viscosity of hydraulic fracturing fluids. The high demand for sand and
guar has attracted new suppliers, resulting in a slight decrease in supplier’s pricing power. RPC
also establishes long‐term contracts with guar and proppant suppliers to decrease risk of having
insufficient inventories.

10
Bargaining Power of Buyers
RPC is a price‐taker in the industry market. U.S. oil and gas field services industry revenue is
dependent upon the demand from companies engaged in the exploration and production of oil
and natural gas. IBIS World’s reports show that there is low concentration in market share for
the U.S. oil and gas field services industry. Competition among oil and gas field services
companies is high, resulting in a high level of buyer power for oil and gas field services.
Halliburton Corp., Schlumberger Ltd., and Baker Hughes Inc. collectively control approximately
32.5% of the market share. Close to 11,000 other oil and gas field services companies constitute
the rest of the market with little differentiation in services between companies. Therefore, oil
and gas exploration and production companies have a variety of selections and are able to
negotiate for low prices.
Threat of Substitution
The U.S. oil and gas field services industry has a low threat of substitute products. For instance,
RPC provides highly specific services on unconventional wells involving expensive equipment
and highly trained human capital that are not feasible for customers to provide themselves.
Since vertical integration for customers is difficult to manage and finance, service companies
like RPC face very little threat to substitutes.
Competitive Rivalry
Competition among the companies in the U.S. oil and gas field services industry is fierce. The big
players in the industry are able to drive service prices down while smaller companies are price
takers. RPC has experienced an increase in demand for its services but at lower prices. While
hydraulic fracturing comprises 55% of RPC’s revenue, Halliburton offers RapidSuite for multi‐
stage fracture completion, along with other deep water, heavy oil, and mature field services.
Hence, smaller companies like RPC and C&J Energy Service differentiate themselves with
exceptional quality of work and reliable equipment. These companies normally have recurring
contracts with customers and expand into new business relationships on a referral basis.
Barriers to Entry
The threat of new entrants into the U.S. oil and gas field services industry is historically low due
to high barriers to entry. Extremely expensive PP&E and significant expenditures require an
immense amount of capital. Furthermore, the U.S. oil and gas field services industry is highly
competitive and comprised of established companies with strong customer relationships. It is
not economically feasible for most potential entrants to pursue the U.S. oil and gas field
services industry when it is tremendously difficult to gain market share.
However, the recent threat of new entrants into the U.S. oil and gas field services industry has
increased. High growth in drilling activity and the continuous trend towards unconventional
drilling have increased the demand for oil and gas field services. This increase in demand has
attracted new entrants to put forward capital in an attempt to break into the growing market.

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Although barriers to entry have recently decreased, the recent drop in oil prices will significantly
decrease the threat of new entrants in the industry going forward. Decreases in oil drilling
activity and overall rig counts in the near future will decrease the demand for oilfield services.
In turn, the market will shrink and potential entrants will avoid entering the industry.
ABOUT RPC
Two Georgia brothers, O. Wayne Rollins and John W. Rollins, Sr., founded RPC, Inc. (RES/NYSE).
The brothers owned a car dealership, a radio station, pest‐control company, and a citrus‐fruit
growing business. In 1973, Rollins acquired Patterson Services, the leading oil and gas field
equipment rental company in the Gulf South.
In 1984, Rollins, Inc. spun off two new companies, Rollins Communications and RPC, Energy
Services, to improve efficiency and maximize profits. R. Randall Rollins, son of Wayne Rollins,
assumed leadership of RPC Energy Services, which was renamed RPC in 1995. Since then, the
Company has grown into an international holding company with 3,900 employees. Through its
major subsidiaries, Cudd Energy Services, Thru Tubing Solutions, Patterson Services, and Bronco
Oilfield Services, the Company provides specialized oil and gas field services and equipment for
energy companies pursuing the exploration, production, and development of oil and natural
gas. Geographically, the Company primarily operates domestically to serve the needs of its
customers located in Texas, the Gulf of Mexico, Appalachia, and the Rocky Mountains (see
Figure 6). International operations have never generated more than 10% of RPC’s total
revenues and have accounted for less than 5% of revenues since 2010 (see Figure 7).
Figure 6: RPC Domestic Facilities
Source: RPC Investor Relations Presentation

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Figure 7: RPC 2013 Revenue Allocation ‐ Domestic vs. International

Source: RPC 2013 10‐K
Products and Services
RPC’s business model provides specialized oil and gas field services and equipment primarily to
independent and major U.S. oil and gas companies (see Figure 8). The Company offers service
lines to its clients divided into two distinct areas: technical services and support services.
Figure 8: RPC Service Lines

Source: RPC Investor Relations Presentation
Technical Services focuses on maintenance, production, and completion services performed
directly on a customer’s well. These services include
Pressure Pumping (55% of 2013 Revenue)
This is RPC’s largest service line and is used to help facilitate the flow of hydrocarbons from a
formation through the processes of fracturing and acidizing. This service line has received heavy
capital investment and is a primary contributor to RPC’s growth.

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Downhole Tools (16% of Revenue)
RPC’s subsidiary, Thru Tubing Solutions provides downhole motors, fishing tools, and other
specialized tools used for drilling and production operations.
Coiled Tubing (9% of 2013 Revenue)
This service involves injecting flexible steel tubes into wells to facilitate unconventional well
completion.
Snubbing (4% of 2013 Revenue)
Snubbing involves using a “hydraulic work over rig” that allows the operator to repair damaged
well casings and to remove and replace equipment inside the well while maintaining the
necessary pressure.
Nitrogen (4% of 2013 Revenue)
Nitrogen is highly valued as a purging and cleaning implement because it is non‐flammable,
non‐corrosive, and environmentally friendly.
Well Control (<1% of 2013 Revenue)
RPC provides oil and gas emergency services that manage and control potential breakouts.
Support Services provide customers with rental equipment and services that assist in
operations. These include
Rental Tools (4% of Revenue)
RPC rents a broad variety of specialized tools and drilling equipment that customers find
attractive to supplement as opposed to buying their own.
Oilfield Pipe Inspection, management, and storage Services (<2% of Revenue)
RPC offers inspection services, inventory management, and handling services for all customers.
Well Control School (<1% of Revenue)
RPC provides government and industry accredited training programs for those in the U.S. oil and
gas industry.
Energy Personnel International (<1% of Revenue)
The Company provides energy specialists in all divisions of the oil and gas industry on a
consulting basis.

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Corporate Strategy
RPC focuses on three strategic areas: (1) Developing capital and equipment in geographic
markets with high returns, (2) selectively increasing market share, and (3) maintaining an
appropriate blend of short‐term and long‐term revenues.
For the short term, RPC plans to increase its market share through expansion of its pressure
pumping position. This is done through focusing capital expenditures on equipment for
unconventional wells requiring hydraulic fracturing. This approach has allowed the Company to
enjoy favorable market share in the pressure pumping sector.
To bridge the gap between short‐term and long‐term strategy, RPC maintains an appropriate
blend of short and long‐term revenues. The Company does this by monitoring relevant
industries closely, and making necessary changes to adapt to current market conditions.
Maintaining this blend gives investors confidence that the Company’s operations are
sustainable.
As the U.S. oil and gas industry has a high level of uncertainty in the long‐term, RPC monitors
relevant industry benchmarks, oil and gas prices, demand for its products, and the utilization of
equipment and personnel. For example, the Company reduced capital acquisitions in 2013 and
focused on increasing the efficiency of current equipment. RPC is ramping up capital
expenditures for 2014 with a projected budget of $375 million to meet the increasing demands
of its services from increases in service intensity and increases in percentage of unconventional
rigs. Due to the high level of volatility within the industry, the Company also ensures that it has
sufficient liquidity, a conservative capital structure, and monitors discretionary spending closely.
Recent Developments
The exploration and production of oil and natural gas drive the U.S. oil and gas field services
industry. As such, energy commodity prices are the main driver of exploration and production
levels. RPC is affected by three categories: events within the oil industry, events within the
natural gas industry, and internal developments.
Recent Events Within the Oil Industry
Oil prices in the U.S. have ranged from $76‐$114 a barrel with a daily average of $97 a barrel
since 2011. However, current oil prices of $80 per barrel are a (11.8%) decrease over the last 12
months and a (2.3%) annual decrease over the past five years. Prior to increases in Saudi
Arabian oil drilling at the end of September, consistent high oil prices were increasing activity
levels and increasing service intensity from oilfield service companies. In fact, the North
American rig count has ranged from 876‐2,026 rigs with an average of 1,663 rigs since 2009. The
current count of 1,929 rigs is a 9.7% increase over the last 12 months and 3.8% annual increase
over the past five years. Furthermore, the percentage of oil focused rigs increased from 21% in
2009 to 83% currently.

15
Overall, rig counts remained relatively constant over the past few years compared to prior
periods, but the demand for oil and gas field services per rig has increased as a result of
substantial increases in activity per rig. We believe the recent drops in oil prices will decrease
overall rig counts and demand for U.S. oilfield services in the coming quarters as contract
expires and new demand for oil drilling decreases.
Recent Events Within the Natural Gas Industry
Since 2011, natural gas prices have ranged from $2‐$6 per thousand cubic feet with a daily
average of $4 per thousand cubic feet, with prices rising in 2013 and 2014 after multiple years
of decline. Current natural gas prices around $4 per thousand cubic feet are a 13.2% increase
over the last 12 months, but a (3.5%) annual decrease over the past five years. Despite the rise
in natural gas prices, natural gas drilling activity is at its lowest level since 1993. Increases in
natural gas prices show slight improvements in activity levels, but activity is still facing strong
headwinds from recent low natural gas prices compared to oil.
Internal Developments
RPC focused 2013 capital spending on maintaining and updating existing equipment. There has
been a higher demand for oil and gas field services due to an increase in service intensity.
Notably, the Company believes its pricing will improve from the increase in demand of its
services. The Company has also expanded its fleet of pressure pumping equipment in the
second half of 2014 and projects $375 million in total capital expenditures for the year. The new
pressure pumping equipment will begin operations in early 2015.
RPC has historically generated the majority of its revenue from natural gas drilling activities.
However, the Company has experienced significant increases in its percentage of revenue
generated from oil drilling activities since 2010 (see Figure 9). Unattractive natural gas prices
and high oil prices have influenced exploration and production companies to focus operations
on oil drilling. The recent drop in oil prices may shift some focus back to natural gas drilling in
the near future. In turn, RPC will experience a larger percentage of revenues generated from
natural gas drilling activities.
Figure 9: RPC Revenue Allocation ‐ Oil Drilling vs. Natural Gas Drilling

Source: RPC 10‐Ks

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PEER ANALYSIS
The U.S. oil and gas field services industry is highly competitive, with three companies, Baker
Hughes, Inc., Halliburton Company, and Schlumberger Limited covering 32.5% of the industry’s
market share. However, these companies are much larger than RPC, Inc. As such, smaller, more
focused oil and gas field service companies represent better comparables than these services
giants.
Based on recommendations from RPC’s management and our own analysis, we chose the
following four companies for comparison (see Table 2): Basic Energy Services, Inc., C&J Energy
Services, Inc., Patterson‐UTI Energy, Inc., and Seventy Seven Energy, Inc.
Table 2: RPC Comparable’s Key Ratios
Revenue Mkt Cap P/E ROIC (%) Debt/Equity
RPC, Inc. $2.192B $4.724B 23.14 9.5 0.14x
Patterson $2.940B $4.668B 38.73 2.0 0.24x
C&J $1.390B $1.641B 30.55 5.1 0.40x
Seventy Seven $2.097B $1.205B N/A (1.1) 5.48x
Basic $1.398B $0.884B 271.13 0.3 2.18x
Source: S&P Capital IQ ‐ LTM as of September 30, 2014
Patterson‐UTI Energy, Inc. (NASDAQ/PTEN)
Patterson‐UTI Energy, Inc., headquartered in Snyder, Texas, provides pressure pumping and
onshore contract drilling services to oil and natural gas producers in the U.S. and western
Canada. The pressure pumping segment delivers well stimulation through hydraulic and
nitrogen fracturing predominantly in Texas and the Appalachian Basin. The onshore contract
drilling segment provides drilling rigs and crews to oil and gas field operators. Patterson‐UTI
controls over 275 land‐based drilling rigs in North America.
C&J Energy Services, Inc. (NYSE/CJES)
C&J Energy Services, Inc., headquartered in Houston, Texas, provides oil and gas field services in
the U.S. The company operates through its subsidiaries to provide services categorized into
three segments: stimulation and well intervention services, wireline services, and equipment
manufacturing. C&J Energy Services’ biggest segment is stimulation & well intervention services,
which accounts for about 69% of total revenue. Hydraulic fracturing accounts for about 80% of
revenue within the segment. Other significant services provided by C&J include constructing
and maintaining equipment used by themselves and other companies.

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Seventy Seven Energy, Inc. (NYSE/SSE)
Seventy Seven Energy, Inc. (SSE) is an Oklahoma‐based oil and gas field service company.
Formerly known as Chesapeake Oilfield Operating, L.L.C, SSE was part of Chesapeake Energy
Corporation (NYSE/CHK) until it was spun off in 2014. The company specializes in hydraulic
fracturing, drilling, equipment rentals, and water transference for well completion for
unconventional oil rigs.
Basic Energy Services, Inc. (NYSE/BAS)
Basic Energy Services, headquartered in Fort Worth, Texas, is an oil and gas field services
company that provides site services to U.S. oil and natural gas production companies. Basic
provides services to over 2,000 oil and gas companies in 13 states. The company divides its wide
variety of services into four different business segments: completion and remedial services (40%
of revenues), fluid services (27%), well servicing (29%), and contract drilling (4%). The
completion and remedial segment is the primary generator of Basic’s revenue and includes
specialized pumping services similar to RPC’s pressure pumping, thru tubing, coiled tubing units,
snubbing units, and fishing tools. Basic Energy Services operates in the same geographic regions
as RPC, including the Permian Basin where it competes for the same type of drilling contracts.
MANAGEMENT PERFORMANCE AND BACKGROUND
RPC, Inc.’s management team consists of nine directors. Since RPC is a “Controlled
Corporation” (giving the Board full control of operations), it is worth noting some of the
Company’s major board members.
Five of RPC’s key employees include R. Randall Rollins, Chairman, who started at Rollins, Inc. in
1949, and has been the Company’s Chairman of the Board since the spin‐off in 1984; Richard A.
Hubbell, Chief Executive Officer and President of RPC; Linda H. Graham, Vice‐President and
Secretary of RPC since 1987; and Ben M. Palmer, Vice President, Chief Financial Officer, and
Treasurer since 1996. Rollins, Hubbell, and Graham are also elected members of the RPC Board
of Directors.
RPC’s Board of Directors has an average age of 77, with Richard A. Hubbell (69) as the youngest
member. The advanced age of the Board of Directors could potentially be an issue for
prospective investors, especially since RPC does not have a succession plan made available to
the public despite its emphasis on promoting from within.
Management Performance
RPC’s operations require the Company to hold large amounts of assets. Hence, return on assets
is a strong benchmark to evaluate management performance (see Table 3). Since 2011, RPC
has exceeded its peers regarding the efficient allocation of the Company’s assets.

18
Table 3: Return on Assets (ROA)
Period RPC, Inc.
Patterson‐UTI
Energy, Inc.
C&J Energy
Service, Inc.
Seventy‐
Seven Energy,
Inc.
Basic Energy
Services, Inc.
2011 22.1% 7.6% 30.1% 1.7% 3.1%
2012 20.1% 6.6% 18.0% 3.3% 1.2%
2013 12.1% 4.0% 5.9% (1.0%) (2.3%)
9/30/14 (LTM) 12.7% 2.4% 3.5% (0.9%) 0.2%
Source: S&P Capital IQ
R. Randall Rollins
Chairman of the Board of Directors (82)
R. Randall Rollins has managed RPC since the spin off from Rollins, Inc. in 1984. Mr. Rollins
served RPC as Chief Executive Officer from 1984 to 2003 and is currently Chairman of the
Board, a position he has held since 1984. In addition to his roles at RPC, Mr. Rollins is the
Chairman of the Board for Marine Products Corporation and Rollins, Inc. Mr. Rollins is also a
Director of Dover Downs Gaming & Entertainment and Dover Motorsports, Inc. He has over 30
years of experience in the U.S. oil and gas field services industry.
Richard A. Hubbell
President and Chief Executive Officer (69)
Richard A. Hubbell has served as President of RPC since 1987 and the Chief Executive Officer
(CEO) since 2003. Mr. Hubbell has also served as a Director for RPC since 1987. Prior to
becoming CEO, Mr. Hubbell served as Chief Operating Officer at RPC from 1987 to 2003. In
addition to his roles at RPC, Mr. Hubbell is a Director and the President and Chief Executive
Officer at Marine Products Corporation. He has over 27 years of experience in the U.S. oil and
gas field services industry.
Ben M. Palmer
Chief Financial Officer (54)
Ben M. Palmer has served as Chief Financial Officer, Treasurer, Vice President, and Principal
Accounting Officer of RPC since 1996. Mr. Palmer also serves as the Treasurer of RPC’s
subsidiary, Cudd Energy Services. In addition to his roles at RPC, Mr. Palmer is the Chief
Financial Officer, Treasurer, Vice President, and Principal Accounting Officer at Marine Products
Corporation. He has over 18 years of experience in the U.S. oil and gas field services industry.

19
Linda H. Graham
Vice President and Corporate Secretary (77)
Linda H. Graham has served as Vice President and the Corporate Secretary at RPC since 1987.
Ms. Graham also served as a Director at RPC since 2001. In addition to her roles at RPC, Ms.
Graham is a Director, Vice President and the Secretary at Marine Products Corporation. She has
over 27 years of experience in the U.S. oil and gas field services industry.
Board of Directors
RPC’s Board of Directors consists of nine members: R. Randall Rollins, Linda H. Graham, Richard
A. Hubbell, James A. Lane, Jr., Gary W. Rollins, Henry B. Tippie, James B. Williams, Bill J.
Dismuke, and Larry L. Prince.
R. Randall Rollins serves as the Chairman of the Board. Linda Graham, Richard Hubbell, and
Gary Rollins are inside directors, which means they have management positions within the
Company. The rest of the directors are either outside or independent directors.
RPC’s Board of Directors has a relatively large degree of freedom in decision making. This is
largely due to the Board’s controlling interest, >50%, of the Company’s stock. This means that
the Company is a “Controlled Corporation” giving the Board full control of operations. Another
benefit of having controlling interest is the decreased risk of a third party takeover of the
Company.
Management Incentives
RPC has two main incentives for management: the 2014 Stock Incentive Plan and executive
compensation, both cash based and equity based, is determined by a compensation
committee.
RPC’s Board of Directors adopted the 2014 Stock Incentive Plan on January 28, 2014,
contingent on approval by the Company’s shareholders. This plan replaces the 2004 Employee
Stock Incentive Plan, and lasts for ten years. Under this plan, directors, officers, and other key
employees of RPC and its subsidiary companies, receive stock options if they are involved in the
growth and/or profitability of the Company. Although there is no limit to the number of award
recipients, there is a limit of eight million shares that can be distributed through this plan.
RPC’s compensation committee is responsible for the determination and administration of
executive compensation. The committee is composed of three independent directors who are
not under the payroll of the Company. As such, this committee ensures that compensation
towards management is based on performance of the Company.

20
SHAREHOLDER ANALYSIS
RPC, Inc.’s equity structure, as at September 30, 2014, is comprised of 215.2 million shares
outstanding with a free float of 60.26 million shares. The outstanding common stock is
distributed among various investor types including investment managers, brokerage firms, and
strategic entities composed of two corporations and nine individuals. An important aspect to
note is the limited number of shares available for purchase in the open market due to high
internal holdings. The Rollins Family Trust holds the largest stake in the Company at
approximately 68.8 percent. This figure, in combination with ownership of a select few inside
officers and directors, totals around 71.04% (see Table 4). As indicated by the low float ratio,
the Company’s equity structure has a high internal ownership in order to obtain the status of a
“Controlled Corporation.” This allows the Board of Directors to effectively control the
operations of the Company, including the election of the board of directors. The high internal
concentration of Company ownership also mitigates the risk of possible third party takeovers.
In 1993, RPC initiated a share buyback program that authorized the repurchasing of 26.57
million shares over an unspecified amount of time. On June 5, 2013, the program was
supplemented by an additional authorization of another five million shares able for repurchase.
As of September 30, 2014, 4.1 million shares remain available for repurchase. RPC has
consistently purchased its shares from the market over the last few years and has announced
share repurchases in both the first and third quarters of 2014 in the amounts of 399,611 and
209,485 shares, respectively. This consistent exercising of the buyback program reflects RPC’s
priorities of maintaining internal control as well as increasing the value of each share by
limiting available shares in the open market.
Table 4: Top Ten Investors (2014)
Investor Name % O/S
R. Randall Rollins 66.40
Gabelli Funds, LLC 4.37
Gary W. Rollins 2.35
The Vanguard Group, Inc. 1.97
BlackRock, Inc. 1.48
Milennium Management LLC 1.34
Richard A. Hubbell 1.19
Henry B. Tippie 1.10
Citadel Investment Group, LLC 0.84
TIAA‐CREF 0..76
Source: S&P Capital IQ September 30, 2014

21
RISK ANALYSIS AND INVESTMENT CAVEATS
RPC, Inc. faces both unique risks that are specific to the Company and common risks that are
associated with the U.S. oil and gas field services industry as a whole. These risk caveats can be
segmented into three different categories: operational risks, regulatory risks, and financial
risks. Operational risks generally involve broader environmental and economic concepts that
could apply to the entire industry. Many of these risks involve the variability in demand for
types of services that RPC provides. Regulatory risks deal with the potential consequences that
RPC could face as a result of government regulations dealing with hydraulic fracturing and
designated economic development zones. Finally, financial risks are related to the Company’s
unique debt and equity structures.
Operational Risks
Demand Changes Price Volatility
RPC is an oil and gas field services company, and is consequently highly dependent on the
volatility of oil and natural gas prices. When prices decline, companies involved in the
exploration and production of these resources cut spending, negatively impacting the demand
for RPC’s services. The change in prices does not always have immediate consequences due to
the nature and extent of the services. Customers that are involved in the exploration are able
to react faster by curtailing capital investments, but companies that are involved in production
of oil and natural gas have a lag time due to legal obligations to the services. Consistently low
prices for these resources may hurt RPC’s financial condition in the future.
Competition
The U.S. oil and gas field services industry is highly competitive because companies tend to
operate in concentrated areas with vast oil reserves. RPC provides its services in aggressive
markets, competing against large and small oil services companies that price according to
constant fluctuation in consumer activity. Consequently, RPC’s revenues and earnings are
variable depending on changing prices set by competition based on demand, general economic
conditions, and regulations. In order to maintain a competitive position relative to its peers,
the Company strives to deliver the highest quality of service to customers through consistent
maintenance and ensuring the safety of all parties involved.
Weather and Catastrophe Risks
RPC’s operations are directly impacted by adverse weather conditions. The Company is
frequently subjected to significant weather events that could have an effect on performance
and demand, particularly in the short run. For instance, RPC has many sites located in areas
such as the Gulf Coast and in the Gulf of Mexico that are susceptible to hurricanes and other
storms during certain periods in the year. These weather catastrophes could impede the
progress of certain activities, decrease the short term needs for services, and may even impact
the prices of oil and gas. Rain, snow, and ice are also potential issues that may cause conditions
that are not suitable for transportation of equipment and workers.

22
Inability to Identify/Complete Acquisitions
Acquisitions have been an important component of RPC’s business strategy in the past.
However, there are uncertainties associated with finding and acquiring favorable companies.
For example, RPC may not be able to identify targets for acquisition that would prove beneficial
in the near future. In the case that a strong opportunity arises, RPC might not be able to
finance the acquisition by itself and will either need to take on debt or issue more equity that
would cause dilution to the stockholders. Another potential issue is the risk that a newly
acquired company may not integrate well.
Raw Material Availability
RPC’s operations rely heavily on raw material being available at the site. The essential raw
materials that RPC needs are sand, used as proppant, and guar, a vital ingredient for fluid that
is used during hydraulic fracturing. To be used as proppant, the sand has to be unique, with
suitable characteristics. As such, RPC purchases and ships its sand from Wisconsin. Due to the
aging rail system, RPC has to monitor the transportation process very closely, as receiving too
much sand at once will cause the Company to incur immense storage costs, while shortages
will put a halt to the Company’s operations. RPC purchases guar imported from India. This raw
material is also a vital ingredient in many other products, like toothpaste, shampoo, and ice
cream. As such, there is a very high demand for this raw material. Hence, the Company has to
pay a premium to ensure a continuous supply of guar.
Regulatory Risk
RPC has to abide by strict regulations placed on its day‐to‐day operations. These regulations
come mostly from governing bodies on the federal and state level and can affect RPC directly
or indirectly by affecting customer demand for the Company’s services.
For instance, RPC is greatly affected by regulations placed on its main revenue generator,
pressure pumping. The regulations placed on hydraulic fracturing come from both federal and
state regulatory agencies. Currently, regulations focus on ensuring that water supply in areas
where hydraulic fracturing activities are performed do not become contaminated. The Clean
Water Act, Safe Drinking Water Act, and Resource Conservation and Recovery Act are examples
of regulations that protect the water supply. RPC’s main area of operations for its pressure
pumping segment is in the Permian Basin, Texas, under its subsidiary, Cudd Energy Services. In
Texas, the state regulations force companies involved in hydraulic fracturing to disclose the
chemicals and additives used in the fracing fluids.
Currently, many federal and state regulatory agencies, like the U.S. Environmental Protection
Agency, are conducting research to judge the feasibility and necessity of adding regulations
impacting hydraulic fracturing.

23
Financial Risks
Liquidity Risk
Liquidity measures how easily assets can be converted into cash. The current liquidity ratio
measures a company’s ability to quickly pay off current liabilities with liquid assets by dividing
current assets by current liabilities. RPC’s current liquidity ratio more than two and a half times
the industry average (see Table 5). A high level of liquidity puts RPC at a low financial risk
because the Company three times more current assets than current liabilities.
Table 5: RPC Liquidity and Solvency
RPC, Inc. Industry Average
Current Liquidity Ratio 3.3x 1.3x
Leverage Ratio 14.3% 39.4%
Source: S&P Capital IQ September 30, 2014
Solvency Risk
RPC’s leverage is driven by the Company’s level of debt. RPC currently has a $350 million
revolving credit facility with an expiration date of January 17, 2019. This means RPC can borrow
up to $350 million over the life of the revolving credit facility. As of September 30, 2014 RPC
had outstanding borrowings of $152 million with $78 million of the balance borrowed in the
first two quarters of 2014.
The leverage ratio measures a company’s capital structure by comparing debt‐to‐equity. RPC’s
current leverage ratio on September 30, 2014 is three times less than the U.S. oil and gas field
services industry average. RPC achieved this low ratio because the Company maintains an
extremely conservative capital structure compared to its peers. A conservative capital structure
mitigates RPC’s financial risk because the Company does not use debt to finance its operations.
RPC’s leverage ratio at year‐end 2013 was 5.5% and rose to 12.9% at June 30, 2014. This
significant increase is attributed to the $78 million debt borrowed through the revolving credit
facility in the first two quarters of 2014. RPC’s leverage ratio is still conservative compared to
the industry average, but RPC will face increased financial risk from its leverage if the Company
continues to borrow debt.
Interest Rate on Debt Risk
RPC’s $152 million outstanding balance on the revolving credit facility bears interest on a
floating rate. If the interest rate on the outstanding balance changed one percent, interest
costs would consequentially change $1.5 million. Although small compared to other risks, the
interest rate risk creates financial risk for RPC.

24
FINANCIAL PERFORMANCE AND PROJECTIONS
Our estimate of RPC, Inc.’s future financial performance is based on historical and projected
trends within the U.S. oil and gas field services industry and, more specifically, within RPC. We
used historical data from Bloomberg, S&P Capital IQ, Thomson One, Yahoo Finance, RPC SEC
filings, and Baker Hughes rig count reports, as well as management guidance and analyst and
economist predictions to make assumptions and projections on RPC’s future financial
condition. Our valuations of RPC resulted in a rating of Market Outperform and a target price of
$19.00.
Revenue Drivers
Our analyst team created a regression model to project RPC’s revenue out to the first quarter
of 2016. We then used a long‐term growth rate of 3% to forecast revenues out to 2023. We
tested over ten descriptive variables and found that property, plant, and equipment (PPE),
drops in oil prices, increases in service intensity, and unconventional rig counts are the most
significant factors affecting RPC’s revenue.
Drop in Oil Prices
Drops in oil prices significantly hurt RPC’s revenue, but this affect is not immediate. Exploration
and production companies finish out contracts with oil and gas field service companies and
continue drilling for oil during low prices. RPC will begin seeing large decreases in revenue
when its current contracts expire in the second half of 2015. We forecast that oil prices will
remain low through 2016. Consequently, RPC will operate under fewer contracts and
experience decreases in revenue from low oil prices in the near future.
Increases in Service Intensity
Recent increases in service intensity have significantly increased RPC’s revenues. Improved
hydraulic fracturing technology has increased the amount of oil and natural gas wells can
produce. Sequentially, unconventional rigs are continuously increasing the amount of stages
per well. These recent changes have significantly increased demand for oil and gas field
services specializing in hydraulic fracturing, such as RPC. Service intensity per rig will continue
rise, even while oil prices remain low and total oil drilling decreases. Increases in revenue from
continued increases in service intensity will cushion RPC’s losses from fewer new contracts in
the second half of 2015.
Unconventional Rig Counts
RPC’s revenues are highly dependent on the number of unconventional rigs. Changes in
unconventional rig counts directly affect RPC’s revenue for the following quarter.
Unconventional rig counts have increased 7.5% per year over the past decade and the
percentage of total rigs that are unconventional have increased from 35% in 2004 to over 80%
in 2014. Unconventional rigs require the specialized services and equipment that RPC provides
from its pressure pumping and other product lines.

25
We forecast that the percentage of unconventional rigs will continue to rise during low oil
prices. However unconventional rig counts will begin decreasing when contracts expire in the
second half of 2015. We project unconventional rig counts will remain constant around 1,500
rigs over the next three quarters and then will decrease to around 1,300 rigs by the first
quarter of 2016. Therefore, unconventional rig counts will have no effect on RPC’s revenues for
the next four quarters, then RPC’s revenues will begin to decrease starting in the fourth quarter
of 2015 due to the one quarter lag.
Property, Plant, and Equipment (PP&E)
RPC’s amount of property, plant and equipment is directly correlated with the Company’s
revenues. RPC allocates capital expenditures to adjust PP&E to meet its customer’s drilling
demands. In 2014, RPC significantly increased PP&E to match market increases in service
intensity and unconventional rig counts. We forecast RPC decreasing capital expenditures in
the near future to keep PP&E constant as low oil prices will decrease the demand for RPC’s
services when contracts expire in the second half of 2015. Keeping PP&E relatively constant in
the near future will have no effect on RPC’s revenues.
Forecast Assumptions
Conservative Capital Structure
One of RPC’s most important strategies is maintaining its conservative capital structure. RPC’s
current liquidity ratio and leverage ratio are almost three times stronger than the industry
average. We forecast that RPC will increase its debt borrowings as little as possible to maintain
its liquidity and solvency. Our minimal forecasted debt borrowings are used for capital
expenditures towards PP&E and maintaining quarterly dividends.
Quarterly Dividends
RPC consistently pays out quarterly dividends to shareholders, with a bonus payment in every
fourth quarter. Based on historical averages, we forecast that RPC will continue to pay
dividends of 50% of net income per share in the first three quarters and 200% of net income
per share in the fourth quarter. The only deviations in our forecasts for dividends occurred
when RPC lacked sufficient cash and adding debt would jeopardize the Company’s conservative
capital structure. In these instances, we forecasted that RPC would slightly decrease its
quarterly dividends.
SITE VISIT
Our analyst team including Douglas Taft Hulsey, Jeremy Goh, Matthew Ryan Solnick, Yuntian
Linda Long, and Nikunj Bajaj flew to Midland, Texas, on September 19, 2014 to meet with
management at the new offices of the Company’s largest subsidiary, Cudd Energy Services. We
were greeted by Jim Landers, Vice President of Corporate Finance at RPC, Inc., Sharon Lennon,
Manager of Investor Relations and Corporate Communication at RPC, as well as Joe Lee,
Regional Technical Manager of Cudd Energy Services ‐ West Texas, and Giles Kemp, Business
Unit Manager at Cudd Energy Services.

26
Mr. Landers started off the visit with a review of the history, operational strategies, and
financial strategies of RPC. Mr. Landers stressed that the Company continues to maintain a
conservative capital structure in an effort to be prepared for unexpected market
developments. He also highlighted the Company’s emphasis on return on invested capital and
continuous dividend payout.
After a short break, Mr. Lee spoke about Cudd Energy Services’ operations in the Permian
Basin, and provided a brief description of the Permian Basin itself. He explained some technical
aspects of Cudd’s operations such as hydraulic fracturing (commonly known as fracing) and the
benefits of the process to the oil and gas industry. Finally, Mr. Lee ended his presentation by
discussing how the industry is making an effort to conserve water by converting recycled water
into frac fluid.
Mr. Lee also gave our analyst team a tour of Cudd Energy Services’ operations office. Mr. Lee
and his team of geologists walked us through the steps of creating frac fluid from drinking
water, actual water samples, and recycled water. This was an extensive process involving many
different types of chemicals. We then explored the shop floor where we were introduced to
the various types of equipment used for hydraulic fracturing.
The visit helped our team of analysts understand the concept of hydraulic fracturing, the
operations of RPC and its biggest subsidiary, Cudd Energy Services. Our team of analysts has a
much clearer picture of the U.S. oil and gas field services industry and we will be able to more
accurately compare RPC to its peers.

27
INDEPENDENT OUTSIDE RESEARCH
The majority of our research on RPC, Inc. was done online, through databases such as
Bloomberg, Baker Hughes, IBISWorld, Yahoo Finance, Thomson One, and S&P Capital IQ. We
collected and analyzed key data and information to give us a comprehensive understanding of
RPC’s operations and how the Company compares to its peers.
To gain outside professional insight into RPC and current market conditions our team reached
out to a Burkenroad alumni currently working as an associate focused on researching U.S. oil
and gas field service companies at Evercore ISI. We learned that RPC is seen as a tortoise in a
fast growth industry. Analysts also view RPC as relatively undifferentiated compared to its
peers. However, RPC is known for having superior financial stability in its industry, which may
help the Company as many people are very uncertain on future oil prices and drilling activity.
Our conversation reinstated our beliefs that RPC may not be the hottest company in the U.S. oil
and gas field services industry, but it is one of the best positioned companies in times of oil
price uncertainty.

28
ANOTHER WAY TO LOOK AT IT
ALTMAN Z‐SCORE
The Altman Z‐score, designed by Edward Altman, was published in 1968 and is still widely used
today to estimate a company’s risk of bankruptcy. After a Z‐score is calculated, the company
under analysis will fall into one of three zones: distress (Z‐score below 1.8), grey (Z‐score
between 1.8 and 2.99), and safe (Z‐score above 2.99) For our purposes, we use five key
financial ratios to calculate the Z‐score: (1) working capital/total assets, (2) retained
earnings/total assets, (3) EBITDA/total assets, (4) market value of equity/total liabilities, and (5)
net sales/total assets.
For 2013, RPC, Inc. has a Z‐score of 8.91. This places the Company deep in the “safe” zone, with
little risk of bankruptcy. RPC has been in the “safe” zone since 2006 (see Table 6). This is largely
due to RPC’s conservative capital structure, and reluctance to take out loans.
Table 6: RPC’s Z‐scores
Year Ended 2006 2007 2008 2009 2010 2011 2012 2013
Z‐score 14.12 6.15 5.27 7.65 10.11 7.79 7.06 8.91
Zone Safe Safe Safe Safe Safe Safe Safe Safe

29
PETER LYNCH EARNINGS MULTIPLE VALUATION
In his best‐selling book, One Up On Wall Street, Peter Lynch reveals a useful and highly effective
tool for measuring the value of stocks based on the earnings per share of the company and a
fixed multiple.
This method uses a theoretical price by constructing an “earnings line” by multiplying the
earnings per share (EPS) by a price‐earnings multiple of 15 and then transposing the lines onto
one graph known as the “Peter Lynch Chart.” If the stock price trades below the line, then the
Peter Lynch graphing method supports buying the stock because it is undervalued. Conversely,
if the stock trades above the line then the method recommends selling the stock because it is
overvalued.
RPC, Inc. is interesting in that its price is very close to the theoretical price determined by
Peter’s method. Currently, the price is trading barely above the line so Peter’s method would
technically prescribe selling the stock (see Figure 10).
Figure 10: Peter Lynch Chart
Source: Bloomberg November 7, 2014

30
WWBD?What Would Ben (Graham) Do?

Benjamin Graham was a professional investor, known by many as “the father of value
investing” and Warren Buffet’s mentor. Graham’s method of value investing made him one
of the most successful investors in the world. Many investors still incorporate his method of
minimizing risks into their own investment strategy today. Graham’s method analyzes a
company’s stock based on ten criteria, eight of which are used in this report.
Based on our analysis of RPC, Inc., the Company meets four out of the eight selected criteria.
This puts RPC in the category where Ben Graham would “consider the possibility” of buying
stock in RPC. The criteria that RPC meets are: (1) The dividend yield is more than half the
yield on a 10‐year Treasury bond, (2) Total debt is less than its Book Value of equity, (3)
Current Ratio (Current Assets divided by Current Liabilities) of two or more, and (4) An
earnings growth of more than 7% over the past five years.
The criteria that RPC does not meet are: (1) Earnings to price yield of two times more than
the yield on the 10 year Treasury bond, (2) Price/Earnings ratio less than half of the stock’s
highest in five years, (3) A stock price that is less than one and a half times Book Value of
equity, and (4) Stability in growth of earnings.
From the mixed results of Ben Graham’s analysis, RPC is shown to be a stock that is neither
undervalued nor overvalued (see Figure 11). However, the fluctuation in earnings growth
makes predicting RPC’s future performance very difficult.
Figure 11: Ben Graham Analysis

31
Earnings per share (ttm) 0.65$ Price: 16.15$
Earnings to Price Yield 4.01%
10 Year Treasury (2X) 4.64%
P/E ratio as of 12/31/09 (101.2)
P/E ratio as of 12/31/10 27.1
P/E ratio as of 12/31/11 13.6
P/E ratio as of 12/31/12 9.6
P/E ratio as of 12/31/13 23.2
Current P/E Ratio 24.9
Dividends per share (ttm) $0.73 Price: 16.15$
Dividend Yield 4.49%
1/2 Yield on 10 Year Treasury 1.16%
Stock Price 16.15$
Book Value per share as of 9/30/14 4.93$
150% of book Value per share as of 9/30/14 7.39$
Interest‐bearing debt as of 9/30/14 152,000$
Book value as of 9/30/14 1,060,945$
Current assets as of 9/30/14 785,056$
Current liabilities as of 9/30/14 241,476$
Current ratio as of 9/30/14 3.3
EPS for year ended 12/31/13 0.77$
EPS for year ended 12/31/09 (0.10)$
EPS for year ended 12/31/13 0.77$ ‐39%
EPS for year ended 12/31/12 1.27$ ‐6%
EPS for year ended 12/31/11 1.35$ 102%
EPS for year ended 12/31/10 0.67$ 750%
EPS for year ended 12/31/09 (0.10)$
Stock price data as of November 7, 2014
Yes
Hurdle # 8: Stability in Growth of Earnings
No
Hurdle # 5: Total Debt less than Book Value
Yes
Hurdle # 6: Current Ratio of Two or More
Yes
Hurdle # 7: Earnings Growth of 7% or Higher over past 5 years
No
Hurdle # 3: A Dividend Yield of 1/2 the Yield on 10 Year Treasury
Yes
Hurdle # 4: A Stock Price less than 1.5 BV
No
RPC INC. (RES)
Ben Graham Analysis
Hurdle # 1: An Earnings to Price Yield of 2X the Yield on 10 Year Treasury
No
Hurdle # 2: A P/E Ratio Down to 1/2 of the Stocks Highest in 5 Yrs

RPC Incorporated (RES) BURKENROAD REPORTS (www.burkenroad.org)November 7, 2014
32
RPCINC.(RES)
AnnualandQuarterlyIncomeStatements
Inthousands
Fortheperiodended
Revenue
Costofservicesrenderedandgoodssold
Selling,generalandadministrativeexpenses
Depreciationandamortization
(Gain)lossondispositionorassets
Operatingincome
Interest(expense)income
Otherincome,net
Incomebeforetaxes
Incometaxprovision
2011A
1,809,807$
992,704
151,286
179,905
3,831
482,081
(3,435)
169
478,815
182,434
2012A
1,945,023$
1,105,886
175,749
214,899
6,099
442,390
(1,946)
2,175
442,619
168,183
2013A31‐MarA30‐JunA30‐SepA31‐DecE2014E31‐MarE30‐JunE30‐SepE31‐DecE2015E
1,861,489$501,692$582,831$620,684$635,345$2,340,552$635,696$636,959$592,909$561,824$2,427,388$
1,178,412330,015374,275398,306409,7971,512,393410,024410,839382,426362,3771,565,665
185,16548,70847,60350,81457,181204,30657,21357,32653,36250,564218,465
213,12855,50556,51757,21963,607232,84866,74268,99971,57274,172281,484
9,3712,2321,4057,68411,3210
275,41365,232103,031106,661104,760379,684101,71899,79585,54974,712361,774
(1,403)(333)(43)(452)(650)(1,478)(767)(767)(767)(767)(3,068)
2,26080831(454)457
276,27064,979103,819105,755104,110378,663100,95199,02884,78273,945358,706
109,37525,59140,53640,87040,603147,60039,37138,62133,06528,838139,895
2015E2014E
Netincome
Earningspershare:
296,381$274,436$166,895$39,388$63,283$64,885$63,507$231,063$61,580$60,407$51,717$45,106$218,810$
Basic(netincome)1.39$1.28$0.77$0.18$0.29$0.30$0.30$1.07$0.29$0.28$0.24$0.21$1.02$
Diluted(netincome)
Weightedaverageshares:
Basic
Diluted
1.35$
213,153
220,250
1.27$
210,707
216,796
0.77$0.18$0.29$0.30$0.29$1.06$0.28$0.28$0.24$0.21$1.01$
215,504215,175215,224215,202215,139215,139215,015214,895214,777214,661214,661
216,733216,214216,238216,334216,201216,201216,077215,957215,839215,723215,723
Dividendpershare
SELECTEDCOMMON‐SIZEAMOUNTS
0.21$
54.85%
8.36%
0.76$
56.86%
9.04%
0.70$0.11$0.11$0.11$0.21$0.53$0.14$0.14$0.12$0.42$0.82$
63.30%65.78%64.22%64.17%64.50%64.62%64.50%64.50%64.50%64.50%64.50%
9.95%9.71%8.17%8.19%9.00%8.73%9.00%9.00%9.00%9.00%9.00%
Operatingincome
Incomebeforetaxes
Netincome
YEARTOYEARCHANGE
Revenue
Operatingincome
9.94%
26.64%
26.46%
16.38%
65.1%
63.8%
24.2%
34.9%
101.8%
11.05%
22.74%
22.76%
14.11%
7.5%
11.4%
16.2%
19.5%
‐8.2%
11.45%11.06%9.70%9.22%10.01%9.95%10.50%10.83%12.07%13.20%11.60%
14.80%13.00%17.68%17.18%16.49%16.22%16.00%15.67%14.43%13.30%14.90%
14.84%12.95%17.81%17.04%16.39%16.18%15.88%15.55%14.30%13.16%14.78%
8.97%7.85%10.86%10.45%10.00%9.87%9.69%9.48%8.72%8.03%9.01%
‐4.3%17.8%27.4%26.4%30.5%25.7%26.7%9.3%‐4.5%‐11.6%3.7%
6.6%23.0%30.1%31.1%28.5%28.3%24.2%9.8%‐4.0%‐11.6%3.5%
5.4%8.4%0.0%7.9%25.6%10.3%17.5%20.4%5.0%‐11.6%6.9%
‐0.8%5.1%7.1%7.5%17.1%9.3%20.2%22.1%25.1%16.6%20.9%
‐37.7%14.0%51.8%24.3%62.4%37.9%55.9%‐3.1%‐19.8%‐28.7%‐4.7%
Incomebeforetaxes
Netincome
SegmentInformation
Revenues
Technicalservices
Supportservices
101.6%
102.0%
1,663,793$
146,014$
‐7.6%
‐7.4%
1,794,015$
151,008$
‐37.6%13.1%55.5%21.8%59.7%37.1%55.4%‐4.6%‐19.8%‐29.0%‐5.3%
‐39.2%12.3%56.6%20.7%68.7%38.4%56.3%‐4.5%‐20.3%‐29.0%‐5.3%
1,729,732$466,970$544,392$576,908$590,871$2,179,141$591,198$592,372$551,405$522,496$2,257,471$
131,757$34,722$38,439$43,776$44,474$161,411$44,499$44,587$41,504$39,328$169,917$
Yeartoyearchanges
Technicalservices
Supportservices
69.80%
25.28%
7.83%
3.42%
‐3.58%18.52%28.39%25.92%30.28%25.98%26.60%8.81%‐4.42%‐11.57%3.59%
‐12.75%9.15%14.62%32.84%32.93%22.51%28.16%15.99%‐5.19%‐11.57%5.27%
Operatingprofits
Technicalservices
Supportservices
Corporate
Gains/losses
Totaloperatingprofits
451,259
51,672
(17,019)
(3,831)
482,081$
420,231
45,912
(17,654)
(6,099)
442,390$
276,24664,89699,717102,849118,174385,636118,240118,474110,281104,499451,494
26,2237,4578,99814,73511,11942,30911,12511,14710,3769,83242,479
(17,685)(4,889)(4,279)(3,239)(3,239)(15,646)(3,239)(3,239)(3,239)(3,239)(12,956)
(9,371)(2,232)(1,405)(7,684)(7,684)(19,005)(7,684)(7,684)(7,684)(7,684)(30,736)
275,413$65,232$103,031$106,661$118,370$393,294$118,441$118,698$109,734$103,408$450,281$
Operatingprofit%
Technicalservices
Supportservices
27.12%
35.39%
23.42%
30.40%
15.97%13.90%18.32%17.83%20.00%17.70%20.00%20.00%20.00%20.00%20.00%
19.90%21.48%23.41%33.66%25.00%26.21%25.00%25.00%25.00%25.00%25.00%

33
RPCINC.(RES)
AnnualandQuarterlyBalanceSheets
Inthousands
Asof
Assets
Cashandcashequivalents
31‐Dec‐11A
7,393$
31‐Dec‐12A
14,163$
31‐Dec‐13A31‐MarA30‐JunA30‐SepA31‐DecE31‐Dec‐14E31‐MarE30‐JunE30‐SepE31‐DecE31‐Dec‐15E
8,700$44,293$22,164$8,522$5,067$5,067$6,267$11,081$66,449$24,702$24,702$
2014E2015E
Accountsreceivable,net
Inventories
Deferredincometaxes
Federalincometaxesreceivable
Prepaidexpensesandothercurrentassets
Totalcurrentassets
Equipmentandproperty,net
461,272
100,438
7,183
10,805
39,464
626,555
675,360
387,530
140,867
5,777
4,234
15,256
567,827
756,326
437,132467,978565,940591,585607,721607,721621,570615,960567,130537,397537,397
126,604135,727138,836153,948146,993146,993150,342148,985137,175129,983129,983
14,18512,50211,62410,8518,1518,1517,9008,0317,9908,0258,025
5,7202,09916,87411,08111,08111,08111,08111,08111,08111,08111,081
12,58410,22912,7899,06912,58412,58410,22912,7899,06912,58412,584
604,925672,828768,227785,056791,597791,597807,389807,928798,893723,772723,772
726,307707,774708,598775,714849,634849,634853,090865,501884,653893,842893,842
Intangibles,net
Otherassets
24,093
12,203
24,093
18,917
31,86132,15032,15032,15032,15032,15032,15032,15032,15032,15032,150
20,76721,54321,88623,11323,11323,11323,11323,11323,11323,11323,113
Totalassets
Currentliabilities:
Accountspayable
Accruedpayrollandrelatedexpenses
Accruedinsuranceexpenses
Federalincometaxespayable
Accruedstate,localandothertaxes
1,338,211$
122,987$
33,680
5,744
5,066
10,705
1,367,163$
109,846$
32,053
6,152
6,428
7,326
1,383,860$1,434,295$1,530,861$1,616,033$1,696,494$1,696,494$1,715,741$1,728,691$1,738,809$1,672,877$1,672,877$
119,170$141,398$150,894$182,123$162,450$162,450$166,193$164,693$151,655$143,718$143,718$
36,63830,43937,68641,44644,19644,19645,21444,80641,25939,10039,100
6,0726,3746,6245,5268,3618,3618,5548,4777,8067,3977,397
6,593535558558558558558558558558
5,0026,5058,41110,60910,60910,60910,60910,60910,60910,60910,609
Otheraccruedexpenses
Totalcurrentliabilities
1,284
179,466
2,706
164,511
1,1701,2301,3101,2141,9111,9111,9551,9381,7841,6911,691
168,052192,539205,460241,476228,086228,086233,084231,081213,672203,073203,073
Long‐termaccruedinsuranceexpenses9,00010,40010,22511,18311,41210,08213,61713,61713,49213,36713,24213,11813,118
Long‐termpensionliability
Deferredincometaxes
Notespayabletobanks
Otherlong‐termliabilities
Totalliabilities
Commonstock
Capitalinexcessofparvalue
Earningsretained
24,445
155,928
203,300
3,480
575,619
14,746
760,492
26,543
155,007
107,000
4,470
467,931
22,014
891,464
21,96622,22922,86722,78622,78622,78622,78622,78622,78622,78622,786
153,176141,330127,459114,459102,729102,729103,319105,200108,998110,902110,902
53,30080,800131,400152,000237,000237,000222,000207,000207,000197,000197,000
8,4397,90210,61814,28514,28514,28514,28514,28514,28514,28514,285
415,158455,983509,216555,088618,503618,503608,966593,719579,983561,164561,164
21,89921,88421,88321,86021,86021,86021,86021,86021,86021,86021,860
2,3982,3984,7967,1949,59211,99011,990
956,918966,9661,009,7111,049,6361,064,2841,064,2841,090,6701,116,4701,137,9241,088,4141,088,414
Accumulatedothercomprehensiveincome(loss)
Totalliabilitiesandequity
(12,646)
1,338,211$
(14,246)
1,367,163$
(10,115)(10,538)(9,949)(10,551)(10,551)(10,551)(10,551)(10,551)(10,551)(10,551)(10,551)
1,383,860$1,434,295$1,530,861$1,616,033$1,696,494$1,696,494$1,715,741$1,728,691$1,738,809$1,672,877$1,672,877$
SELECTEDCOMMON‐SIZEAMOUNTS(%ofrevenues)
Accountsreceivable,net
Inventories
Accountspayable
Accruedstate,localandothertaxes
25.49%
5.55%
2.18%
37.32%
6.80%
1.86%
0.32%
0.59%
19.92%
7.24%
0.78%
38.89%
5.65%
1.65%
0.32%
0.38%
23.48%93.28%97.10%95.31%95.65%25.96%97.78%96.70%95.65%95.65%22.14%
6.80%27.05%23.82%24.80%23.14%6.28%23.65%23.39%23.14%23.14%5.35%
0.68%2.04%2.19%1.46%1.98%0.54%1.61%2.01%1.53%2.24%0.52%
39.02%141.08%121.58%124.98%133.73%36.30%134.20%135.88%149.21%159.10%36.82%
6.40%28.18%25.89%29.34%25.57%6.94%26.14%25.86%25.58%25.58%5.92%
1.97%6.07%6.47%6.68%6.96%1.89%7.11%7.03%6.96%6.96%1.61%
0.33%1.27%1.14%0.89%1.32%0.36%1.35%1.33%1.32%1.32%0.30%
0.27%1.30%1.44%1.71%1.67%0.45%1.67%1.67%1.79%1.89%0.44%
Long‐termaccruedinsuranceexpenses
SELECTEDCOMMON‐SIZEAMOUNTS(%oftotalassets)
Totalcurrentassets
0.07%
0.50%
46.82%
50.47%
0.14%
0.53%
41.53%
55.32%
0.06%0.25%0.22%0.20%0.30%0.08%0.31%0.30%0.30%0.30%0.07%
0.55%2.23%1.96%1.62%2.14%0.58%2.12%2.10%2.23%2.33%0.54%
43.71%46.91%50.18%48.58%46.66%46.66%47.06%46.74%45.94%43.27%43.27%
52.48%49.35%46.29%48.00%50.08%50.08%49.72%50.07%50.88%53.43%53.43%
Intangibles,net
Otherassets
1.80%
0.91%
1.76%
1.38%
2.30%2.24%2.10%1.99%1.90%1.90%1.87%1.86%1.85%1.92%1.92%
1.50%1.50%1.43%1.43%1.36%1.36%1.35%1.34%1.33%1.38%1.38%
Totalcurrentliabilities13.41%12.03%12.14%13.42%13.42%14.94%13.44%13.44%13.59%13.37%12.29%12.14%12.14%
Long‐termaccruedinsuranceexpenses0.67%0.76%0.74%0.78%0.75%0.62%0.80%0.80%0.79%0.77%0.76%0.78%0.78%
Deferredincometaxes
Totalliabilities
Commonstock
Capitalinexcessofparvalue
Earningsretained
11.65%
43.01%
1.10%
0.00%
56.83%
11.34%
34.23%
1.61%
0.00%
65.21%
11.07%9.85%8.33%7.08%6.06%6.06%6.02%6.09%6.27%6.63%6.63%
30.00%31.79%33.26%34.35%36.46%36.46%35.49%34.34%33.36%33.54%33.54%
1.58%1.53%1.43%1.35%1.29%1.29%1.27%1.26%1.26%1.31%1.31%
0.00%0.00%0.00%0.00%0.14%0.14%0.28%0.42%0.55%0.72%0.72%
69.15%67.42%65.96%64.95%62.73%62.73%63.57%64.58%65.44%65.06%65.06%

34
RPCINC.(RES)
AnnualandQuarterlyStatementsofCashFlows
Inthousands
Fortheperiodended
Cashflowfromoperations:
Netincome
Noncashcharges(credits)toearnings:
Depreciationandamortizationandothernon‐cashcharges
Stock‐basedcompensation
(Gain)lossonsaleofequipmentandproperty
2011A
296,381$
179,787
8,075
3,831
2012A
274,436$
214,153
7,860
6,099
166,895$39,388$63,283$64,885$63,507$231,063$61,580$60,407$51,717$45,106$218,810$
215,81256,28057,02858,07463,607234,98966,74268,99971,57274,172281,484
8,1772,3202,3972,3982,3989,5132,3982,3982,3982,3989,592
9,3712,2321,4057,68411,321
2014E2015E
Deferredincometaxprovision(benefit)
Excesstaxbenefitsfromshare‐basedpayments
77,074
(3,371)
4,821
(2,724)
(13,060)(10,192)(13,063)(12,253)(9,030)(44,538)8421,7493,8401,8698,300
(3,178)(4,455)3938(4,378)
(Increase)decreaseinassets:
Accountsreceivable
Inventories
Federalincometaxesreceivable
Othercurrentassets
Increase(decrease)inliabilities:
Accountspayable
Federalincometaxespayable
Pensionliabilities
Accruedstate,localandotherexpenses
Othernoncurrentliabilities
Othernon‐currentassets
(167,312)
9,817
(36,511)
(2,783)
(30,524)
30,102
4,917
9,799
1,249
1,114
2,078
958
1,032
294
73,809
(40,354)
9,295
(2,284)
26,189
(4,929)
(4,277)
(1,627)
(589)
1,808
2,260
1,412
990
(6,415)
(49,959)(31,043)(97,819)(25,825)(16,136)(170,823)(13,849)5,61048,83029,73370,324
14,078(9,421)(2,840)(15,485)6,955(20,791)(3,350)1,35711,8117,19217,010
1,6928,076(14,814)5,755(983)
1,5195062,543445(3,515)(21)2,355(2,560)3,720(3,515)
1,1141,692(5,034)3,162(180)
14,06219,50813,72319,939(19,673)33,4973,743(1,500)(13,038)(7,937)(18,732)
(6,428)6,593(6,058)23558
4,585(6,181)7,2293,7932,7507,5911,018(408)(3,547)(2,159)(5,096)
3,183396771511,218
(80)302250(1,098)6,3715,82568(202)(796)(533)(1,464)
(2,324)1,5031,9062,1985,607
(1,548)6079(101)69773544(18)(153)(93)(220)
3,5944212,9452,3375,703
(1,881)(117)(350)(1,234)(1,701)
Netcashprovidedbycontinuingoperations
Cashflowsfrominvestingactivities:
Capitalexpenditures
386,007
(416,400)
559,933
(328,936)
365,62477,86813,620114,78697,930304,204121,591135,832176,354146,231580,008
(201,681)(40,295)(72,509)(124,669)(137,527)(375,000)(70,197)(81,410)(90,724)(83,361)(325,692)
Proceedsfromsaleofequipmentandproperty24,76319,30911,0712,8629,0963,02214,980
Netcashusedininvestingactivities
Cashflowsfromfinancingactivities:
Paymentofdividends
Debtissuecosts
Taxeffect
(391,637)
(47,327)
(415)
3,371
(315,838)
(114,069)
2,724
(207,654)(37,433)(63,413)(121,647)(137,527)(360,020)(70,197)(81,410)(90,724)(83,361)(325,692)
(87,789)(22,986)(22,897)(22,939)(44,455)(113,277)(30,790)(30,204)(25,858)(90,212)(177,065)
(667)(667)‐
3,1784,455(39)(38)4,378‐
(Repayments)borrowingsofdebt
Cashpaidforcommonstockpurchasedandretired
Proceedsreceiveduponexerciseofstockoptions
Netcashprovidedby(usedin)financingactivities
Netincrease(decrease)incash
Cash,atbeginningofperiod
Cash,atendofperiod
82,050
(34,419)
728
3,988
(1,642)
9,035
7,393
(96,300)
(30,224)
544
(237,325)
6,770
7,393
14,163
(53,700)27,50050,60020,60085,000183,700(15,000)(15,000)(10,000)(40,000)
(25,122)(13,144)(4,404)(4,404)(21,952)(4,404)(4,404)(4,404)(4,404)(17,616)
(163,433)(4,842)27,664(6,781)36,14152,182(50,194)(49,608)(30,262)(104,616)(234,681)
(5,463)35,593(22,129)(13,642)(3,455)(3,633)1,2004,81455,368(41,746)19,635
14,1638,70044,29322,1648,5228,7005,0676,26711,08166,4495,067
8,70044,29322,1648,5225,0675,0676,26711,08166,44924,70224,702
Supplementalcashflowdisclosures:
Operatingcashflowpershare
excludingworkingcapitalchanges
Operatingcashflowpershare
2.57$
1.75$
2.34$
2.58$
1.79$0.42$0.51$0.56$0.56$2.05$0.61$0.62$0.60$0.57$2.40$
1.69$0.36$0.06$0.53$0.45$1.41$0.56$0.63$0.82$0.68$2.69$

35
RPCINC.(RES)
Ratios
ProductivityRatios
Receivablesturnover
2011A
4.60
2012A
4.58
4.511.111.131.071.064.481.031.031.001.024.24
2015E2014E
Inventoryturnover12.219.178.812.522.732.722.7211.062.762.752.672.7111.31
Workingcapitalturnover5.264.574.431.091.121.121.154.681.121.111.021.024.48
Netfixedassetturnover3.222.722.510.700.820.840.782.970.750.740.680.632.78
Grossfixedassetturnover1.411.251.070.280.310.320.311.190.290.280.260.231.06
Totalassetturnover1.631.441.350.360.390.390.381.520.370.370.340.331.44
#ofdaysSalesinA/R93738684888888958888888881
#ofdaysCostofSalesinInventory37463937343633353333333330
#ofdaysCash‐basedexpensesinA/Pandaccruedexpenses58484847475147514747484844
Liquiditymeasures
Currentratio3.493.453.603.493.743.253.473.473.463.503.743.563.56
Quickratio2.612.442.652.662.862.492.692.692.692.712.972.772.77
Cashratio2.612.442.652.662.862.492.692.692.692.712.972.772.77
Workingcapital447,089403,316436,873480,289562,767543,580563,511563,511574,305576,847585,221520,698520,698
FinancialRisk(Leverage)Ratios
Totaldebt/equityratio0.750.520.430.470.500.520.570.570.550.520.500.500.50
Debt/equityratio(excludingdeferredtaxes)0.550.350.270.320.370.420.480.480.460.430.410.410.41
TotalLTdebt/equityratio0.520.340.260.270.300.300.360.360.340.320.320.320.32
LTdebt/equity(excludingdeferredtaxes)0.320.170.100.120.170.190.270.270.250.230.220.220.22
Totaldebtratio0.430.340.300.320.330.340.360.360.350.340.330.340.34
Debtratio(excudingdeferredtaxes)0.350.260.210.240.270.290.320.320.310.300.290.290.29
Profitability/ValuationMeasures
Grossprofitmargin45.15%43.14%36.70%34.22%35.78%35.83%35.50%35.38%35.50%35.50%35.50%35.50%35.50%
Operatingprofitmargin26.64%22.74%14.80%13.00%17.68%17.18%16.49%16.22%16.00%15.67%14.43%13.30%14.90%
Returnonassets26.71%20.29%12.13%2.80%4.27%4.12%3.83%15.00%3.61%3.51%2.98%2.64%12.99%
Returnonequity45.64%33.03%17.87%4.05%6.33%6.23%5.94%22.58%5.64%5.39%4.51%3.97%19.99%
Earningsbeforeinterestandtaxesmargin26.64%22.74%14.80%13.00%17.68%17.18%16.49%16.22%16.00%15.67%14.43%13.30%14.90%
EBITDAmargin36.57%33.76%26.39%24.22%27.46%26.54%26.50%26.26%26.50%26.50%26.50%26.50%26.50%
EBITDA/Assets59.64%48.54%35.71%8.62%10.80%10.47%10.17%39.91%9.87%9.80%9.06%8.73%38.18%

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BURKENROAD REPORTS RATING SYSTEM
MARKET OUTPERFORM: This rating indicates that we believe forces are in place that would enable this
company's stock to produce returns in excess of the stock market averages over the next 12 months.
MARKET PERFORM: This rating indicates that we believe the investment returns from this company's
stock will be in line with those produced by the stock market averages over the next 12 months.
MARKET UNDERPERFORM: This rating indicates that while this investment may have positive attributes,
we believe an investment in this company will produce subpar returns over the next 12 months.

BURKENROAD REPORTS CALCULATIONS
 CPFS is calculated using operating cash flows excluding working capital changes.
 All amounts are as of the date of the report as reported by Bloomberg or Yahoo Finance unless
otherwise noted. Betas are collected from Bloomberg.
 Enterprise value is based on the equity market cap as of the report date, adjusted for long‐
term debt, cash, & short‐term investments reported on the most recent quarterly report date.
 12‐month Stock Performance is calculated using an ending price as of the report date.
The stock performance includes the 12‐month dividend yield.

2014‐2015 COVERAGE UNIVERSE
Amerisafe Inc. (AMSF)
Bristow Group Inc. (BRS)
The First Bancshares (FBMS)
CalIon Petroleum Company (CPE)
Cal‐Maine Foods Inc. (CALM)
Carbo Ceramics Inc. (CRR)
Cash America International Inc. (CSH)
Conn's Inc. (CONN)
Crown Crafts Inc. (CRWS)
Cyberonics Incorporated (CYBX)
Denbury Resources Inc. (DNR)
EastGroup Properties Inc. (EGP)
Era Group Inc. (ERA)
Evolution Petroleum Corp. (EPM)
Globalstar (GSAT)
Gulf Island Fabrication Inc. (GIFI)
Hibbett Sports (HIBB)
Hornbeck Offshore Services Inc. (HOS)
IBERIABANK Corp. (IBKC)
ION Geophysical Corp. (IO)
Key Energy Services (KEG)
Marine Products Corp. (MPX)
MidSouth Bancorp Inc. (MSL)
Newpark Resources Inc. (NR)
PetroQuest Energy Inc. (PQ)
Popeyes Louisiana Kitchen (PLKI)
Pool Corporation (POOL)
Powell Industries Inc. (POWL)
Rollins Incorporated (ROL)
RPC Incorporated (RES)
Ruth’s Hospitality Group Inc. (RUTH)
Sanderson Farms Inc. (SAFM)
SEACOR Holdings Inc. (CKH)
Sharps Compliance Inc. (SMED)
Stone Energy Corp. (SGY)
Sunoco LP (SUN)
Superior Energy Services Inc. (SPN)
Team Incorporated (TISI)
Vaalco Energy Inc. (EGY)
Willbros Group Inc. (WG)

PETER RICCHIUTI
Director of Research
Founder of Burkenroad
Reports
Peter.Ricchiuti@tulane.edu

ANTHONY WOOD
Senior Director of Accounting
Awood11@tulane.edu

JERRY DICOLO
DAVID DOWTY
ELLIOTT EDWARDS
Associate Directors of Research

BURKENROAD REPORTS
Tulane University
New Orleans, LA 70118‐5669
(504) 862‐8489
(504) 865‐5430 Fax

RPC Report 11.7.14

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