I didn't see a reason to be in a rush to buy RPC (NYSE:RES) back in February
and the slightly negative move in the shares since then doesn't really
have me regretting that viewpoint. Investors certainly could have done
worse in the oil services space (C & J Energy Services (NYSE:CJES), Basic Energy (NYSE:BAS), and Superior (NYSE:SPN)
have all fared worse) and not too many names have done all that much
better during this awful stretch, but this is still a tough market for
bulls.
I continue to believe that RPC is an uncommonly well-run
company in the space and a prime beneficiary of a recovery in rig counts
and increased well completions … whenever that takes place. To that
end, I like RPC for its strong leverage to a U.S. onshore recovery and
the limited downside created by its strong balance sheet and very strong
service reputations. Names like Basic Energy, Key Energy (NYSE:KEG), Superior, and even Weatherford (NYSE:WFT)
offer more upside punch to a sharper turnaround, but with RPC it really
doesn't seem that investors need to worry about survivability,
accountability, or operational performance.
Continue here:
RPC Hoping That The Worst Is Soon To Be Past
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