RPC Inc. RES has enhanced its presence in the Permian Basin with the acquisition of Pintail Completions, a leading wireline service provider, in a deal valued at approximately $245 million. The move underscores RPC’s commitment to expanding its oilfield services portfolio with high-margin, cash-generating assets.
Pintail, headquartered in Midland, TX, is a well-established name in wireline completions, operating more than 30 active fleets with both conventional and electric wireline units. The acquisition aligns with RPC’s strategy of focusing on service lines that deliver strong profitability and efficient cash conversion. With a robust client base comprising Tier 1 exploration and production (E&P) companies in the Midland and Delaware basins, Pintail is expected to enhance RPC’s standing in the most prolific oil-producing region in the U.S. land market.
For RPC, the deal is not just about geographic expansion — it is about operational synergy. Pintail’s cutting-edge equipment, reputation for service excellence, and commitment to safety and efficiency make it a valuable addition. In 2024, Pintail generated approximately $409 million in revenues, bearing a testament to its strong market position. RPC expects the acquisition to be accretive to its 2025 earnings per share and free cash flow, reinforcing the financial appeal of the transaction.
Ben M. Palmer, president and CEO of RPC, highlighted the acquisition as a milestone in the company's strategic growth. He noted that Pintail Completions, known for its leadership in wireline perforation services, strengthens RPC’s existing offerings and enhances its position in the sector. The transaction adds a well-established brand with strong margins and solid cash flow generation to RPC’s portfolio.
For Pintail, joining forces with RPC represents an opportunity for continued growth while maintaining operational independence. Matt Houston, Pintail's co-founder and president, expressed enthusiasm about continuing the company’s journey with RPC while maintaining its independent operations. He highlighted that RPC’s platform supports Pintail in preserving its operating model and customer-focused approach, which has been instrumental in serving clients and stakeholders effectively. He also emphasized that RPC’s strategy fosters a strong environment where entrepreneurs and operators can continue to succeed.
The $245 million acquisition was structured with $170 million in cash, $25 million in restricted RPC stock, and a $50 million three-year note issued to one of the sellers. The agreement includes customary post-closing adjustments related to Pintail’s working capital and other financial considerations.
With this acquisition, RPC cements its position as a diversified oilfield service leader, leveraging Pintail’s capabilities to drive growth and enhance its operational footprint in the Permian Basin.
RPC currently carries a Zack Rank #4 (Sell).
Investors interested in the energy sector may look at some better-ranked stocks like Archrock Inc. AROC, Kinder Morgan, Inc. KMI and W&T Offshore, Inc. WTI. While Archrock presently sports a Zacks Rank #1 (Strong Buy), Kinder Morgan and W&T Offshore carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.
Kinder Morgan is a leading North American midstream player with a stable and resilient business model, largely driven by take-or-pay contracts, which ensure consistent earnings and facilitate reliable capital returns to shareholders. The company operates one of the largest natural gas pipeline networks, positioning it to benefit from the projected increase in U.S. natural gas demand by 2030.
W&T Offshore leverages its strong Gulf of Mexico assets, which offer low decline rates and significant untapped reserves. The company recently expanded its portfolio with six shallow-water field acquisitions, adding substantial proven and probable reserves. Focused on high-return organic projects, WTI has maintained positive cash flows for 27 consecutive quarters.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
W&T Offshore, Inc. (WTI) : Free Stock Analysis Report
Kinder Morgan, Inc. (KMI) : Free Stock Analysis Report
RPC, Inc. (RES) : Free Stock Analysis Report
Archrock, Inc. (AROC) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.