Saturday, August 1, 2015

Seeking Alpha: RPC Hoping That The Worst Is Soon To Be Past

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.

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RPC Hoping That The Worst Is Soon To Be Past

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