RPC, Inc.

not broad-based yet at this point. So I would say it's incrementally positive, but like I said, it's not really broad-based yet at this point.

Hey, and Don, just to, sorry to interrupt, just to point out too, you know, spot really impact, you're referring to pressure pumping and, you know, that's really only 31% of our overall revenue.

Well, I was just going to say, is that across all kind of product lines, right? Because I would assume that through tubing and coil, which is the fastest kind of return dollars from an operator's perspective, would see some firming as well.

Some, but they have a lot of larger customers. So really, I mean, the spot is not as big a part of their business as it is for pumping.

Okay. And then obviously you stacked a few fleets over the past couple quarters, and I don't know what state those fleets are in, but I would assume that they could be brought back fairly quickly if that call arises. Just any thoughts around, you know, the yards to bring back equipment or upgrade equipment here and the potential cost to bring back a fleet? I would assume that it's, you know, $3 million just for fluid and stuff like that, but any thoughts around the reactivation cost for a fleet?

There hadn't been a lot of discussion about that because, like I said, there really hadn't been broad-based opportunities to really look at that seriously. I mean, at current pricing levels, no, we would not reactivate a fleet. There are some discussions going on that could result in us perhaps looking at that, but we would need some visibility into, obviously, the pricing and the duration of the work and the volume of the work that was going to occur. In terms of time, the fleets that you referred to that we have stacked, those are no longer staffed, so it would take some time and some planning to be able to restaff those And you're right, the pumps that we were to reactivate, they would be, not necessarily all of them would need to have fluid ends replaced, so the cost really depends. But historically, you're right, if you needed to replace a full fleet worth of fluid ends, that's probably a reasonable estimate. But I think it's still, at this moment, it's still a little bit early. It's a good question, reasonable question, but it's a little bit early. We're really not talking about leaning into reactivating fleets, I think the first thing we would try to do is take advantage of higher prices and with the fleets that we already have deployed.

And Don, just point out those fleets are both, you know, are tier two diesel fleets, which aren't, you know, as customers are more focused on, obviously, dual fuel and lower cost. Diesel is pretty expensive right now. So that's the other factor there.

I appreciate the color. If I could sneak in one more on the labor side, are you able to get people today if you tried, or do you think that that would be more difficult given the current environment and people leaving to go to Amazon or other places?

Well, you know, we haven't been hiring a tremendous amount and not trying to increase the staffing, so we don't know for sure. But, you know, that could present a challenge, yes.

Okay.

Which hopefully would play into, again, that would hopefully would play into the ability to, you know, firm up pricing as well, right?

Right, exactly. I'll turn it back. Thanks.

Thank you, Don.

Once again, to ask a question, simply press star 1 on your telephone keypad. Our next question comes from the line of John Daniel with Daniel Energy Partners. Please go ahead.

Hey, guys. So, Mike, I mean, when you listen to a lot of the E&P calls and read their press releases, it's essentially, you know, flattish with a couple of one-offs. I think Don alluded to in terms of incremental rigs. But yet, You listen to the land drillers, they're all kind of calling for higher activity in Q2 and with prospects for more work going out in the back half. I'm just curious, what do you think the disconnect is? And for some of your product lines that might be tied more to the drilling side, are they seeing a similar rise of activities maybe with the land drillers? Just any color on there.

I mean, I think that there's hope that obviously as drilling improves, then that will improve some of our businesses you alluded to. And the pricing still hasn't caught up. I mean, there has been upward momentum, but I think the disconnect is we haven't, and I think other OFS companies, Companies haven't really seen the increase in pricing yet to really push us to start moving. So we still have kind of supply-demand. And so until it actually starts and we start getting a fair price, making it worthwhile, you'll probably see more activity. Hopefully, we read your note this week. Hopefully, that's accurate and we see 50 new. rigs come on, that'll help drive price and activity.

You know, John, our business, our relative's business is a relatively small percentage of our total revenue, and it's a nice business. It has good margins, you know, a lot of high fixed costs. Therefore, you know, increased revenue can really drop to the bottom line. So it had been a little bit, had a little bit of a challenge in the last couple of quarters, but they're seeing some improvement. I don't know that because it's small and, you know, they have particular regions where they're particularly active. They're seeing a little bit of improvement, but again, wouldn't say that we're seeing anything that's broad-based yet.

Fair enough. Well, yeah, I hope the forecast is right. I hate looking too stupid. We hope that too. Yeah, the next question I've got is just, and I don't know if this, this might be too granular and you might not even have the data in front of you, but I'm curious, As your guys, the businesses talk about quoting activity, if you had to hazard a guess, the inquiries that are coming in, what proportion of them would you characterize as being from the public operators versus private? And again, you might not have that handy, but if you do, it'd be interesting to hear.

In terms of inquiries and questions coming in?

Yeah, just people reaching out, asking about availability, equipment, etc.,

Yeah, probably more the privates, I would say.

All right. Thanks for including me, guys. Sure. Thank you, John.

And once again, to ask a question, simply press star 1. With no further questions in queue, I will now hand the call back over to Mr. Ben Palmer for closing remarks.

All right. Well, thank you for joining this morning. We appreciate it, appreciate your interest, and hope you have a great rest of the day. Take care.

And once again, I would like to remind everyone that the replay on today's call will be available at www.rpc.net within two hours following today's completion of the call. This does conclude today's conference call. You may now disconnect.