RPC INC Leases Disclosure
Note 20: Leases
The Company recognizes operating and finance leases with a duration greater than 12 months on the Consolidated Balance Sheet with a Right-Of-Use (ROU) asset and liability at the present value of lease payments over the term. Leases that include rental escalation clauses or renewal options are factored into the determination of lease payments when appropriate. There are no residual value guarantees on the existing leases. The Company estimates its incremental borrowing rate at lease commencement to determine the present value of lease payments, since most of the Company’s leases do not provide an implicit rate of return. ROU assets exclude lessor incentives received.
The Company subleases certain real estate to third parties. Our sublease portfolio consists solely of operating leases. As of December 31, 2025, the Company had no operating or finance leases that had not yet commenced. During the year ended December 31, 2025, the Company assumed certain leases as part of its acquisition of Pintail. The disclosures below include information related to the leases after the acquisition. See note to the consolidated financial statements titled “Acquisition” for further information related to those leases.
Lease Position:
The table below represents the assets and liabilities related to operating leases recorded on the Consolidated Balance Sheet:
December 31, | | 2025 | | 2024 | ||
(in thousands) | ||||||
Assets: |
|
|
|
| | |
Operating lease right-of-use assets | $ | 24,094 | $ | 27,465 | ||
Finance lease right-of-use assets | 1,934 | 4,400 | ||||
Total lease assets | $ | 26,028 | $ | 31,865 | ||
Liabilities: | ||||||
Current portion of operating leases | $ | 7,606 | $ | 7,108 | ||
Current portion of finance lease liabilities and finance obligations | 977 | 3,522 | ||||
Long-term finance lease liabilities | 1,041 | 559 | ||||
Long-term operating lease liabilities | 17,762 | 21,724 | ||||
Total lease liabilities | $ | 27,386 | $ | 32,913 | ||
Lease costs:
The components of finance lease are included in depreciation and amortization and interest expense; operating lease expenses are included in costs of goods sold, and selling, general and administrative expenses in the Consolidated Statements of Operations as disclosed below.
Year Ended December 31, | | 2025 | 2024 | 2023 | |||||
(in thousands) | |||||||||
Finance lease cost | |||||||||
Amortization of leased assets | $ | 952 | $ | 265 | $ | 129 | |||
Interest on lease liabilities | 282 | 174 | 48 | ||||||
Total finance lease cost | $ | 1,234 | $ | 439 | $ | 177 | |||
Operating lease cost | $ | 12,732 | $ | 17,206 | $ | 15,096 | |||
Short-term lease cost | 2,287 |
| 2,289 |
| 1,862 | ||||
Variable lease cost | 1,102 |
| 855 |
| 774 | ||||
Sublease income | (1,917) |
| (1,943) |
| (1,400) | ||||
Total operating lease cost | $ | 14,204 | $ | 18,407 | $ | 16,332 | |||
Total lease cost | $ | 15,438 | $ | 18,846 | $ | 16,509 | |||
Other Information:
As of December 31, | 2025 | 2024 | |||||
Cash paid for amounts included in the measurement of lease liabilities – operating leases (in thousands) | $ | 7,754 | $ | 12,230 | |||
Cash paid for amounts included in the measurement of lease liabilities – finance lease and finance obligations (in thousands) | $ | 1,143 | $ | 799 | |||
ROU assets obtained in exchange for operating lease liabilities (in thousands) | $ | 3,678 | $ | 15,094 | |||
ROU assets obtained in exchange for finance lease liabilities (in thousands) | $ | 887 | $ | 3,622 | |||
Weighted average remaining lease term – finance lease (years) | 2.28 | 3.00 | |||||
Weighted average remaining lease term – operating leases (years) | 5.45 | 5.96 | |||||
Weighted average discount rate – finance lease | 4.39 | % | 2.30 | % | |||
Weighted average discount rate – operating leases | 4.56 | % | 4.57 | % | |||
Lease Commitments:
Maturity of lease liabilities and finance obligations:
As of December 31, | | 2025 | ||||
(in thousands) | Operating | Finance | ||||
2026 |
| $ | 8,878 |
| $ | 1,428 |
2027 |
| 8,299 |
| 735 | ||
2028 |
| 5,573 |
| 475 | ||
2029 |
| 3,634 |
| 71 | ||
2030 |
| 2,505 |
| 44 | ||
Thereafter |
| 8,139 |
| — | ||
Total lease payments |
| 37,028 |
| 2,753 | ||
Less: Amounts representing interest |
| (11,660) |
| (735) | ||
Present value of lease liabilities | $ | 25,368 | $ | 2,018 | ||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 27, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 28, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.