RPC, Inc. (NYSE: RES) saw its stock fall 2.8% in after-hours trading Tuesday after the company disclosed that President and Chief Executive Officer Ben M. Palmer plans to retire no later than December 31, 2026.
Palmer will relinquish both his CEO duties and his seat on the Board of Directors following a 30-year career with the oilfield services provider. The Board has started a search for a successor, with an expected conclusion of that search before year-end. Until a successor is named or December 31, 2026 arrives - whichever occurs first - Palmer will continue to serve in his current roles and will remain available in an advisory capacity to assist with the transition.
Palmer has been President and CEO since 2022. Prior to assuming the top executive position, he spent more than two decades as Chief Financial Officer and Treasurer, roles he began in 1996. During his time as chief executive, the company said Palmer directed a shift in RPC’s mix toward higher-margin service lines and increased the company’s footprint in the Permian Basin.
Richard A. Hubbell, Executive Chairman of the Board, said Palmer "has been instrumental across every corner of RPC, strengthening our financial foundation, advancing our strategic priorities, and positioning the Company to compete effectively in the dynamic oilfield services sector."
The Board indicated it will retain an independent search firm to help identify RPC’s next chief executive. The search will prioritize candidates who demonstrate operational excellence in oilfield services and who balance growth ambitions with maintaining financial strength.
Patrick J. Gunning, Lead Independent Director, described the move as reflecting "the Board’s careful approach to succession planning" and noted that Palmer’s willingness to assist will "help ensure continuity for our employees, customers, and shareholders every step of the way."
The company’s announcement and the outlined succession process were accompanied by the after-hours share decline. The timetable for the search and the explicit plan for Palmer to remain until a successor is in place or until year-end provide a defined transition framework, with the Board engaging external help to identify candidates focused on operational and financial stewardship.
Key takeaways
- RPC disclosed that CEO Ben M. Palmer will retire by December 31, 2026; shares fell 2.8% in after-hours trading following the announcement.
- The Board has launched a search for a successor and will engage an independent search firm; the search is expected to conclude before year-end.
- Palmer, who has led RPC since 2022 and served as CFO and Treasurer since 1996, will remain in his roles until a successor is appointed or until the end of 2026 and will advise during the handover.
Risks and uncertainties
- Timing and outcome of the CEO search - the Board expects to conclude the search before year-end, but the eventual selection and its fit with RPC’s strategic priorities remain to be determined.
- Leadership transition effects on stakeholder confidence - the announced retirement coincided with a near-term share price decline in after-hours trading, reflecting market sensitivity to executive changes.
- Operational continuity during the transition - while Palmer will remain in an advisory role, execution risk could arise if the successor process or early operational handover encounters friction.
Information provided in this report is limited to the company’s public announcement and the statements from the Board. No additional projections, timelines beyond those stated, or speculative implications have been added.