RPC (RES) risk factors, FY2025 10-K

Risks Related to our Business

1. 01Demand for our equipment and services is affected by the volatility of oil and natural gas prices
2. 02Reliance upon a large customer may adversely affect our revenues and operating results56% rewritten
3. 03Our concentration of customers in one industry and periodic downturns may impact our overall exposure to credit risk and cause us to experience increased credit loss allowance for accounts receivable
4. 04Our business depends on capital spending by our customers, many of whom rely on outside financing to fund their operations25% rewritten
5. 05RPC’s success will depend on its key personnel, and the loss of any key personnel may affect its revenues
6. 06We may be unable to compete in the highly competitive oil and gas industry in the future
7. 07We may be unable to identify or complete acquisitions, and the completion of significant acquisitions involves integration and other risks
8. 08Our operations are affected by adverse weather conditions
9. 09Our ability to attract and retain skilled workers may impact growth potential and profitability
10. 10Some of our equipment and several types of materials used in providing our services are available from a limited number of suppliers
11. 11We have used outside financing in prior years to accomplish our growth strategy, and outside financing may become unavailable or may be unfavorable to us21% rewritten
12. 12Our international operations could have a material adverse effect on our business
13. 13Increasing expectations from governments, customers, investors and other stakeholders regarding our environmental, social and governance (ESG) practices may affect our business, may create additional costs for us, or expose us to related risks
14. 14Our business has potential liability for litigation, personal injury and property damage claims assessments
15. 15Our operations may be adversely affected if we are unable to comply with regulations and environmental laws
16. 16Compliance with federal and state regulations relating to pressure pumping services, including hydraulic fracturing, could increase our operating costs, cause operational delays, and could reduce or eliminate the demand for our pressure pumping services

Risks Related to our Capital and Ownership Structure

1. 17Our management and directors have a substantial ownership interest, and public stockholders may have no effective voice in the management of the Company
2. 18The Controlling Group could take actions that could negatively impact our results of operations, financial condition or stock price
3. 19Our management and directors have a substantial ownership interest, and the availability of the Company’s common stock to the investing public may be limited
4. 20Provisions in RPC's Certificate of Incorporation and Bylaws may inhibit a takeover of RPC

Risks Related to Digital Operations, Cybersecurity and Business Disruption

1. 21Our operations rely on digital systems and processes that are subject to cyberattacks or other threats that could have a material adverse effect on our business, consolidated results of operations and consolidated financial condition

Risks Related to Artificial Intelligence

1. 22Increased usage of Artificial Intelligence (AI) and machine learning technologies could expose us to operational, safety, cybersecurity, legal and reputational risks and could adversely affect our ability to compete, our operating results and our cash flowsNew
2. 23We are implementing a new Enterprise Resource Planning system (ERP), and challenges with the implementation of the system may impact our business and operations36% rewritten
3. 24Our common stock price has been volatile