Shares of RPC (NYSE: RES) leaped more than 12% by 11:45 a.m. ET on Wednesday. Fueling the oil stock's rise was its second-quarter report and the reinstatement of its quarterly dividend.
RPC reported $375.5 million in revenue in the first quarter, up 31.9% from the prior year. The oil-field service company benefited from higher customer activity levels and pricing. Earnings also soared. The company reported $46.9 million of net income, or $0.22 per share, triple what it posted in last year's first quarter.
RPC expects the good times in the oil-field service market to continue. Because of that, it reactivated a pressure fleet that it started utilizing in the third quarter. It's also beginning to allocate capital to maintain its existing capacity by refurbishing a fleet that it expects will enter service early next year. It also ordered a new pressure pumping fleet that should get delivered in the first half of next year.
Source Fool.com