RPC Inc., a provider of hydraulic fracturing services, rose the most in more than eight months after announcing plans to buy back more of its stock.
The shares gained 4.6 percent to $13.10 at the close in New York, the most since Sept. 13.
The provider of pressure pumping that helps drillers unlock oil and gas trapped in shale rock will buy back an additional 5 million shares, Atlanta-based RPC said today in a statement. The buyback program doesn’t have an expiration date, RPC said.
“In this industry, if you’re not adding equipment, you’ve got limited uses of your cash,” Trey Stolz, an analyst at Iberia Capital Partners LLC in New Orleans said today in a phone interview. He rates the shares at outperform, which means investors should buy the stock, and owns none. “Some of these companies feel strongly about the long-term potential and inherent value.”
RPC had 1.2 million shares left to purchase under its buyback program at the end of the first quarter, Jim Landers, vice president of corporate finance, said today in a telephone interview.