ATLANTA (AP) -- Oilfield services firm RPC Inc. said Wednesday that net income was flat in the second quarter as it reshuffled operations to focus on wells that contain more oil than natural gas.
The Atlanta-based company provides a variety of services and equipment for the petroleum industry. Demand for those services declined in the second quarter as companies pulled rigs from natural gas fields in the U.S. due to a plunge in prices. Natural gas slumped to the lowest level in a decade earlier this year.
RPC was forced to compete with other service companies for a smaller pool of projects, keeping a lid on contract fees and other sources of revenue. Meanwhile, costs rose as RPC relocated some of its equipment during the quarter as customers switched to wells that were producing more oil than gas.
RPC reported net income of $72.3 million, or 33 cents per share, in the three months ended June 30. That compares with $73.2 million, or 33 cents per share, a year earlier.
Revenue rose 12.9 percent to $500.1 million from $443 million a year earlier .
The results beat analysts' average estimate for earnings of 31 cents per share on revenue of $496.6 million, according to a FactSet poll.
Its shares rose 53 cents, or 4.3 percent, to $12.74 in afternoon trading.