Good morning, and thank you for joining us for RPC Inc's fourth quarter 2025 earnings conference call. Today's call will be hosted by Ben Palmer, President and CEO, and Mike Schmidt, Chief Financial Officer. At this time, all participants are in a listen-only mode. Following the presentation, we will conduct a question and answer session. Instructions will be provided at that time for you to queue up for questions.

I would like to advise everyone that this conference call is being recorded I will now turn the call over to mr. Schmidt thank you and good morning before we begin I want to remind you that some of the statements that will be made on this call could be forward-looking a number of known refer to our press along with our 10 WWW non-gap measures of various periods our press release and reconciliational gap measures I'll now I'll turn the call over to our president and his team.

Thanks Mike and thank you for joining our call this morning. Today we'll talk about fourth quarter results reflect us. October and November working system with third pressure pumping represented 70% of total revenues and saw a 4% sequential decrease. So we did see revenues increase within technical service in the Northeast region. The new motorist's technology allows us to expand into new markets and develop its unplugged technology.

It's an innovative product in its life cycle, adoption is... ...then the number one on your telephone keypad. Then your first question comes from the line of Don Crist with Johnson Rice. Please go ahead.

Good morning, guys. Hopefully you all are doing well. We're outside of pressure pumping in the other business lines that y'all operate in, and a lot of that equipment starts to move overseas to the Middle East and other places for unconventional type development. Are you seeing that other business lines, you know, through tubing and coil and wire lines start to normalize or some of your competitors go away and have a little bit less competition there as that equipment moves overseas?

Maybe a little bit of that. I don't know that it's a tremendous amount yet. Certainly every little bit can help. There have been competitors and obviously reorganizing or.

Last question for me, you know, obviously you've been very prudent with the balance sheet over the years and selectively done M&A, but, you know, you've got a pretty large cash hoard right now. Any indication that we could see some stock buybacks, or are you going to just keep that for M&A in the near term?

We're always about in the various uses of our capital, buybacks are certainly one of those choices. thanks thank you your next question comes from the line of John Daniel with Daniel energy partners please go ahead hey guys thanks for you you mentioned

that the is there anything can you hear me okay a little bit difficult yeah cut out how about now my question is you know with the fleet that was idled in October he said October at least the fourth quarter is there is there anything today which would suggest that you think that fleet comes back this year and is with the reactivation is it function of price or would it be a function of if you had you know a sufficient amount of work

even at current price just how do you think about that uh good question i mean we do have some the

second question uh goes is about m a obviously you guys have the the balance sheet to prosecute deals should you wish to when you think of step back and think about just the market you've got some Some of your peers that are chasing power, others will be more focused on international. It would seem that the universe of realistic buyers of traditional land equipment is kind of diminishing. I don't know if that's – I think that's a reasonably fair statement. Would you agree with that, and does it argue you take – be very careful – I mean, just take your time. There's no rush to do deals if there's limited buyers. Just if you could kind of bloviate on that.

I think that's a good way to set it up yeah the entire market but yes I don't think there's a whole lot of competition out there well thank you for

including me today thank you yes sir again if you would like to ask a question press star one and your next question comes from the line of Derek Podheiser with Piper Sandler please go ahead hey good morning guys maybe we could just start with some additional insight morning just some additional insight and maybe some history into the updated wireline accounting treatment maybe just just why now and not when the deal occurred last year I think you mentioned a change in work type with the wireline just trying to understand better you know really what happened that caused this change yeah that was very helpful I appreciate the color and yeah it did remind me of the fluid and issue years ago. I guess maybe a question on through tubing solutions. You talked about international regions and your footprint there. Maybe just can you expand on that maybe to educate us on the location and the type of technology you're deploying there and how you really see that business growing over the next couple years?

Got it.

Is there any renewed focus as far as the Middle East and the build out of unconventionals and through to being you know being being a potential you know growth trajectory for you maybe reigniting just giving the unconventional build out of middle east or is that not the correct read through uh it's possible uh you know we kind of several years ago kind of changed our business model uh there so so we we have less of a quote-unquote physical presence for me yes okay that's helpful and then uh maybe just the third question uh a quick uh state of the union on the current spot market and pressure pumping you know how's the competition and it's always though it's always been oversupplied but you know you stack the fleet and i'm sure some of your competitors have stacked fleet i'm not sure if any of the smaller mom-and-pop privates have have gone away just just given where pricing and activity has gone to obviously we have accelerating attrition as well so maybe could you help us further understand the state of the market today do you see competition reducing any sort of you know secular fundamental improvement that we could potentially see in the spot market as we work through the year not seeing anything dramatic yet just all right

great appreciate the color i'll turn it back thank you appreciate it your next question comes from the line of chuck minervino with susquehanna please go ahead hi good morning I was just wondering if you could talk a little bit about that 2026 CapEx.

It sounds like you had some deferred spend from 2025, but then also I guess the wireline cable now comes out of the CapEx. Maybe they were offsetting each other, but if they are, you still got to have CapEx up in 2026. So, we're just curious if you can kind of touch on that a little bit and if there's maybe room for that to come down if you're looking to generate a little bit more free cash flow during the year?

Well, I think we put out there.

Got it. And then just one other, you know, in support services, I know not a huge piece of the overall revenue pie, but the rental tool revenue down pretty sharply, it sounds like late in the year. I know there's always seasonality late in the year. Was that particularly kind of sharper than you've seen historically? and it was just kind of curious if there was any reason for it or any more color you could provide.

Yeah, it is. It was more key. That business, you know, a nice little business.

Thank you very much.

No further questions at this time. I will now turn the call back over to Ben Palmer for closing remarks.

Thank you very much, operator. We appreciate everybody calling in and listening and look forward to it.

Today's call will be available for replay on www.rpc.net within two hours following the completion of the call. Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.