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Ranger Energy Services: Resilient Business Model And Shareholder Returns
Seeking Alpha· 2025-08-07 06:53
Core Viewpoint - The market is misjudging Ranger Energy Services by categorizing it with drilling-dependent peers despite its unique position in the oil sector [1] Company Analysis - Ranger Energy Services (NYSE: RNGR) is not solely reliant on drilling activities, distinguishing it from other companies in the sector [1] Market Context - There is a notable decline in U.S. rig counts and a sluggish macro environment for oil, which is affecting perceptions of companies in the industry [1]
Ranger Energy Services(RNGR) - 2025 Q2 - Quarterly Report
2025-07-29 20:53
PART I – FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited financial statements present Q2 2025 revenue and net income, with six-month cash flow and balance sheet highlights [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows **$381.7 million** in total assets and **$276.9 million** in stockholders' equity as of June 30, 2025 Condensed Consolidated Balance Sheet (Unaudited) | | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $151.6 million | $141.6 million | | **Total assets** | $381.7 million | $382.0 million | | **Total current liabilities** | $61.3 million | $62.9 million | | **Total liabilities** | $104.8 million | $108.2 million | | **Total stockholders' equity** | $276.9 million | $273.8 million | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 revenue increased to **$140.6 million** with net income of **$7.3 million**, and six-month net income more than doubled year-over-year Financial Performance Summary (in millions, except per share data) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | $140.6 | $138.1 | $275.8 | $275.0 | | **Operating Income** | $8.6 | $7.3 | $9.6 | $6.8 | | **Net Income** | $7.3 | $4.7 | $7.9 | $3.9 | | **Diluted EPS** | $0.32 | $0.21 | $0.35 | $0.17 | [Condensed Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity increased to **$276.9 million** driven by net income, partially offset by share repurchases and dividends - For the six months ended June 30, 2025, the company repurchased **$3.3 million** of Class A Common Stock and paid **$2.8 million** in dividends[15](index=15&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Six-month cash flow shows **$31.3 million** from operations, with **$11.6 million** used in investing and **$11.7 million** in financing activities Six Months Ended June 30, 2025 Cash Flow Summary (in millions) | Cash Flow Category | Amount | | :--- | :--- | | Net cash provided by operating activities | $31.3 | | Net cash used in investing activities | $(11.6) | | Net cash used in financing activities | $(11.7) | | **Increase in cash and cash equivalents** | **$8.0** | | **Cash and cash equivalents, End of Period** | **$48.9** | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail segment operations, debt facilities with no borrowings, an **$85 million** share repurchase program, and significant customer concentration - The company operates in three reportable segments: High Specification Rigs, Wireline Services, and Processing Solutions and Ancillary Services[19](index=19&type=chunk)[23](index=23&type=chunk) - As of June 30, 2025, the company had no borrowings under its **$75.0 million** Wells Fargo Revolving Credit Facility, with **$71.2 million** available[45](index=45&type=chunk) - The company has an **$85.0 million** share repurchase program, with **$47.1 million** remaining as of June 30, 2025. It also increased its quarterly dividend to **$0.06 per share** in 2025[56](index=56&type=chunk)[57](index=57&type=chunk)[58](index=58&type=chunk) - For the six months ended June 30, 2025, four customers accounted for approximately **28%**, **13%**, **11%**, and **10%** of consolidated revenues, indicating significant customer concentration[59](index=59&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses consistent performance, Q2 2025 revenue growth, strong liquidity, and capital return programs, despite Wireline segment weakness [Business Outlook](index=22&type=section&id=Business%20Outlook) The business outlook highlights consistent performance, Wireline segment weakness, benefits from E&P consolidation, and monitoring of crude oil prices - The Wireline segment continues to face weakness in demand due to declining completions activity and increased competition[83](index=83&type=chunk) - The company has so far benefited from E&P operator consolidation and expects favorable preference from larger organizations over the long term[84](index=84&type=chunk) - Management is monitoring potential activity reductions if crude pricing falls below **$60 per barrel**, but notes the business is supported by its production-oriented service lines[86](index=86&type=chunk) [Results of Operations](index=24&type=section&id=Results%20of%20Operations) Q2 2025 revenue increased **2%** to **$140.6 million**, with net income up **55%**, and six-month Adjusted EBITDA growing to **$36.1 million** Q2 2025 vs Q2 2024 Performance (in millions) | Metric | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | $140.6 | $138.1 | $2.5 | 2% | | **Operating Income** | $8.6 | $7.3 | $1.3 | 18% | | **Net Income** | $7.3 | $4.7 | $2.6 | 55% | Six Months 2025 vs Six Months 2024 Performance (in millions) | Metric | H1 2025 | H1 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | $275.8 | $275.0 | $0.8 | 0% | | **Operating Income** | $9.6 | $6.8 | $2.8 | 41% | | **Net Income** | $7.9 | $3.9 | $4.0 | 103% | Adjusted EBITDA by Segment - Six Months Ended June 30 (in millions) | Segment | 2025 | 2024 | | :--- | :--- | :--- | | High Specification Rigs | $35.0 | $32.3 | | Wireline Services | $(0.7) | $0.6 | | Processing Solutions and Ancillary Services | $12.2 | $9.8 | | **Total Adjusted EBITDA** | **$36.1** | **$31.9** | [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) Total liquidity reached **$120.1 million** as of June 30, 2025, supported by **$31.3 million** cash from operations and a capital returns program - Total liquidity was **$120.1 million** as of June 30, 2025, consisting of **$48.9 million** in cash and **$71.2 million** in borrowing availability[137](index=137&type=chunk) Cash Flow Summary - Six Months Ended June 30 (in millions) | | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $31.3 | $34.1 | | Net cash used in investing activities | $(11.6) | $(20.3) | | Net cash used in financing activities | $(11.7) | $(20.8) | - The company's capital returns program includes an **$85.0 million** share repurchase authorization (**$47.1 million** remaining) and a quarterly dividend of **$0.06 per share**[149](index=149&type=chunk)[150](index=150&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risks](index=34&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risks) The company faces market risks from commodity price volatility and significant customer credit concentration, with minimal interest rate exposure - The company's business is indirectly exposed to oil and natural gas price volatility, which impacts customer activity levels[158](index=158&type=chunk) - Interest rate risk is currently low, as the company had no outstanding borrowings under its variable-rate Wells Fargo Revolving Credit Facility as of June 30, 2025[156](index=156&type=chunk) - The company faces significant credit risk, with its top three customers accounting for **52%** of consolidated net accounts receivable as of June 30, 2025[157](index=157&type=chunk) [Item 4. Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[161](index=161&type=chunk) - No changes were identified during the quarter ended June 30, 2025, that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[162](index=162&type=chunk) PART II – OTHER INFORMATION [Item 1. Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently subject to any material litigation, and existing legal matters are not expected to have a material adverse effect - The company is not currently subject to any material litigation, and the outcome of any existing matters is not expected to have a material adverse effect on its financial condition[163](index=163&type=chunk) [Item 1A. Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported since the Annual Report on Form 10-K, to which stakeholders are referred - Factors that could materially affect the business are described under 'Risk Factors' in the company's Annual Report[164](index=164&type=chunk) [Item 2. Unregistered Sales of Securities and Use of Proceeds](index=36&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **278,100** shares for **$3.3 million** in Q2 2025, with **$47.1 million** remaining under its **$85.0 million** repurchase program Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Shares Repurchased | Average Price Paid Per Share | | :--- | :--- | :--- | | April 2025 | — | $— | | May 2025 | 20,600 | $11.62 | | June 2025 | 257,500 | $12.04 | | **Total** | **278,100** | **$12.01** | - The company's total share repurchase program authorization is **$85.0 million**, with **$47.1 million** remaining available as of June 30, 2025[165](index=165&type=chunk)[167](index=167&type=chunk) [Item 5. Other Information](index=37&type=section&id=Item%205.%20Other%20Information) No directors or executive officers adopted or terminated Rule 10b5-1 trading arrangements during the second quarter of 2025 - No directors or executive officers adopted or terminated a Rule 10b5-1 trading arrangement during the second quarter of 2025[168](index=168&type=chunk) [Item 6. Exhibits](index=38&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Quarterly Report, including CEO and CFO certifications and iXBRL data files - The exhibits filed with the Form 10-Q include certifications from the CEO and CFO as required by the Sarbanes-Oxley Act of 2002[171](index=171&type=chunk)
Ranger Energy Services(RNGR) - 2025 Q2 - Earnings Call Transcript
2025-07-29 15:00
Financial Data and Key Metrics Changes - For Q2 2025, the company reported revenue of $140.6 million, reflecting a 4% sequential increase from Q1 and a 2% year-over-year improvement [16][5] - Adjusted EBITDA for the quarter was $20.6 million, a sequential increase of 33% from Q1, but 2% lower than the prior year due to service line mix and margin pressure [16][17] - Consolidated margins were 14.7%, showing significant improvement from Q1 and consistent with the previous year [17] Business Line Data and Key Metrics Changes - The High Specification Rig segment generated $86.3 million in revenue and $17.6 million in adjusted EBITDA, with margins over 20% [6][18] - Ancillary services reported revenue of $32.2 million and adjusted EBITDA of $6.6 million, with margins of 20.5% [18] - Wireline services achieved positive adjusted EBITDA of $1.6 million on $22.1 million of revenue, marking a significant turnaround [7][19] Market Data and Key Metrics Changes - The company experienced higher asset turnover as customers adjusted their well programs due to market conditions, but demand in core service lines remained strong [5] - Rig hours improved, indicating strong demand and utilization of the fleet, despite a 2% decline in pricing quarter-over-quarter [18][44] Company Strategy and Development Direction - The company is focused on disciplined capital allocation, maximizing free cash flow, and prioritizing shareholder returns [12][13] - The launch of the ECO rig, a hybrid double electric workover rig, is a key innovation aimed at reducing emissions and improving operational efficiency [8][9] - The company aims to pursue accretive M&A and organic growth opportunities while maintaining balance sheet strength [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for Q3 performance while remaining cautious about Q4 due to potential winter weather impacts [20][21] - The company anticipates continued stability in core segments, with a focus on delivering high-quality service and targeted innovation [21][22] Other Important Information - Free cash flow year-to-date totaled $17.8 million, up 45% from the prior year, with a cash balance of $48.9 million and total liquidity of $120.1 million [19] - The company repurchased 278,000 shares for $3.3 million and plans to continue share repurchases as the current share price is seen as a compelling investment [20][66] Q&A Session Summary Question: Regarding the new Echo rig contract and its payback - Management indicated that the Echo rigs are expected to have similar or potentially better return profiles compared to traditional rigs, with customers sharing incremental costs through down payments and increased rates [28][30] Question: On wireline services and market conditions - Improvements in wireline services are attributed to internal cost management and seasonal activity increases, rather than solely market consolidation effects [31][32] Question: Uncertainty in Q4 and potential for gas basins - Management expressed hope for increased activity in gas basins but noted that it would depend on customer budgets and production profiles [34][35] Question: Scaling the Echo rig and customer demand - The scaling of Echo rigs will be driven by customer demand, with potential for significant future deployment based on current interest [40][41] Question: Capital spending and cash allocation - The company plans to maintain disciplined capital spending while considering share repurchases and potential M&A opportunities, ensuring sufficient cash for various strategic paths [62][68]
Ranger Energy Services(RNGR) - 2025 Q2 - Earnings Call Presentation
2025-07-29 14:00
Financial Performance - Revenue increased to $140.6 million in Q2 2025, up from $138.1 million in Q2 2024 and $135.2 million in Q1 2025[8, 10] - Net income rose to $7.3 million in Q2 2025, compared to $4.7 million in Q2 2024 and $0.6 million in Q1 2025[10] - Adjusted EBITDA for Q2 2025 was $20.6 million, with an Adjusted EBITDA Margin of 14.7%[10, 12] - Free Cash Flow generation was $14.4 million in Q2 2025[6, 10] Segment Highlights - High-Specification Rigs segment revenue was $86.3 million in Q2 2025[15] - Processing Solutions & Ancillary Services segment revenue increased to $32.2 million in Q2 2025[20] - Wireline Services segment revenue rebounded to $22.1 million in Q2 2025[25] Capital Returns - The company repurchased 278,100 shares in Q2 2025 for $3.3 million at an average price of $12.01 per share[6] - $4.6 million of Free Cash Flow was returned to shareholders through dividends and repurchases in Q2 2025[6] - Since the program inception, a total of 3,603,900 shares have been repurchased, representing 16% of the company's outstanding shares[6] Liquidity - The company ended Q2 2025 with $120.1 million of liquidity, including $48.9 million of cash on hand[13]
Ranger Energy Services(RNGR) - 2025 Q2 - Quarterly Results
2025-07-28 21:08
[Financial & Operational Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) Ranger reported increased revenue and net income, strong sequential Adjusted EBITDA growth, robust free cash flow, and introduced the Ranger ECHO electrified rig Q2 2025 Key Financial Metrics | Metric | Q2 2025 (USD) | Q2 2024 (USD) | Q1 2025 (USD) | Change (YoY) (%) | Change (QoQ) (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $140.6 million | $138.1 million | $135.2 million | +2% | +4% | | **Net Income** | $7.3 million | $4.7 million | $0.6 million | +55% | +1117% | | **Diluted EPS** | $0.32 | $0.21 | $0.03 | +52% | +967% | | **Adjusted EBITDA** | $20.6 million | $21.0 million | $15.5 million | -2% | +33% | | **Free Cash Flow** | $14.4 million | $6.8 million | N/A | +112% | N/A | - Announced a technological step forward with the next-generation electrified workover rig, Ranger ECHO, designed to enhance operating efficiency and safety[4](index=4&type=chunk) - The company utilized **$3.3 million** to repurchase **278,100 shares** during the quarter, ending with **$48.9 million** in available cash and **$120.1 million** in total liquidity[4](index=4&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Comments) Management highlighted resilience, record rig hours, Wireline segment rebound, and the new ECHO e-rig launch, while focusing on cost control and strategic investments - The company demonstrated resiliency and consistent financial performance despite macroeconomic headwinds and lower crude prices, attributed to its strong presence in the Permian and relationships with blue-chip operators[3](index=3&type=chunk)[5](index=5&type=chunk) - The High Specification Rigs business achieved record rig hours, and the Wireline segment revenue rebounded **28%** quarter-over-quarter, returning to positive EBITDA contribution[6](index=6&type=chunk)[7](index=7&type=chunk) - Announced the launch of the next-generation hybrid e-rig, the ECHO rig, which features battery-powered operations and regenerative braking. Contracts for the first two rigs have been secured with premier customers[7](index=7&type=chunk) - Management anticipates continued stability in Q3 but notes that Q4 is unpredictable. The company remains focused on cost control, balance sheet strength, shareholder returns via buybacks, and pursuing accretive M&A[8](index=8&type=chunk)[9](index=9&type=chunk) [Capital Returns and Governance](index=3&type=section&id=CAPITAL%20RETURNS%20AND%20GOVERNANCE%20UPDATE) Ranger continued its capital return program, repurchasing shares totaling $3.3 million in H1 2025 and $38.1 million since 2023, and declared a $0.06 per share quarterly dividend Share Repurchase Program Activity | Period | Shares Repurchased (Units) | Total Value (USD) | Average Price (USD) | | :--- | :--- | :--- | :--- | | **YTD (as of June 30, 2025)** | 278,100 | $3.3 million | $12.01 | | **Since Inception (2023)** | 3,603,900 | $38.1 million | N/A | - The Board of Directors declared a quarterly cash dividend of **$0.06** per share, payable on August 22, 2025, to stockholders of record on August 8, 2025[10](index=10&type=chunk) [Detailed Financial Performance](index=4&type=section&id=BUSINESS%20SEGMENT%20FINANCIAL%20RESULTS) This section details Q2 2025 segment results, highlighting record rig hours for High Specification Rigs, revenue growth in Processing Solutions, and Wireline Services' rebound to profitability - Overall Q2 2025 revenue increased to **$140.6 million**, up from **$138.1 million** YoY and **$135.2 million** QoQ, driven by gains in Wireline and Ancillary services[11](index=11&type=chunk) - Adjusted EBITDA increased by **$5.8 million** quarter-over-quarter to **$20.6 million**, primarily due to improved revenues and margins across all segments, especially Wireline[13](index=13&type=chunk) [High Specification Rigs](index=4&type=section&id=High%20Specification%20Rigs) High Specification Rigs revenue grew 4% YoY to $86.3 million, driven by record 117,000 rig hours, with Adjusted EBITDA at $17.6 million High Specification Rigs Performance (Q2 2025) | Metric | Q2 2025 | Q2 2024 | Q1 2025 | | :--- | :--- | :--- | :--- | | **Revenue** | $86.3 million | $82.7 million | $87.5 million | | **Rig Hours** | 117,000 hours | 113,100 hours | 115,700 hours | | **Hourly Rig Rate** | $738/hour | $732/hour | $756/hour | | **Operating Income** | $12.0 million | $11.8 million | $12.0 million | | **Adjusted EBITDA** | $17.6 million | $18.7 million | $17.4 million | [Processing Solutions and Ancillary Services](index=4&type=section&id=Processing%20Solutions%20and%20Ancillary%20Services) Processing Solutions and Ancillary Services revenue increased to $32.2 million (4% YoY, 6% QoQ), driven by Coil Tubing and Torrent, with Adjusted EBITDA at $6.6 million Processing & Ancillary Services Performance (Q2 2025) | Metric | Q2 2025 (USD) | Q2 2024 (USD) | Q1 2025 (USD) | | :--- | :--- | :--- | :--- | | **Revenue** | $32.2 million | $30.9 million | $30.5 million | | **Operating Income** | $4.5 million | $5.2 million | $3.3 million | | **Adjusted EBITDA** | $6.6 million | $7.3 million | $5.6 million | [Wireline Services](index=4&type=section&id=Wireline%20Services) Wireline Services revenue rebounded 28% QoQ to $22.1 million, achieving positive Adjusted EBITDA of $1.6 million, driven by a 79% QoQ increase in completed stage counts Wireline Services Performance (Q2 2025) | Metric | Q2 2025 | Q2 2024 | Q1 2025 | | :--- | :--- | :--- | :--- | | **Revenue** | $22.1 million | $24.5 million | $17.2 million | | **Completed Stages** | 2,500 stages | 1,700 stages | 1,400 stages | | **Operating Loss** | ($1.2 million) | ($2.6 million) | ($5.8 million) | | **Adjusted EBITDA** | $1.6 million | $0.4 million | ($2.3 million) | [Balance Sheet and Cash Flow](index=6&type=section&id=BALANCE%20SHEET%2C%20CASH%20FLOW%20AND%20LIQUIDITY) As of June 30, 2025, Ranger maintained strong liquidity of $120.1 million with no borrowings, generating $31.3 million in cash from operations and $17.8 million in free cash flow year-to-date - Total liquidity stood at **$120.1 million** as of June 30, 2025, comprised of **$48.9 million** in cash and **$71.2 million** of capacity on its revolving credit facility. The company had no borrowings under its loan facility[21](index=21&type=chunk) Cash Flow and Capital Expenditures (YTD 2025 vs YTD 2024) | Metric | YTD 2025 (USD) | YTD 2024 (USD) | | :--- | :--- | :--- | | **Cash from Operating Activities** | $31.3 million | $34.1 million | | **Capital Expenditures** | $13.5 million | $21.8 million | | **Free Cash Flow** | $17.8 million | $12.3 million | [Appendix: Financial Statements](index=9&type=section&id=Appendix%3A%20Financial%20Statements) This appendix provides detailed unaudited financial statements for June 30, 2025, including Consolidated Statements of Operations, Balance Sheets, Cash Flows, and GAAP to non-GAAP reconciliations [Unaudited Condensed Consolidated Statements of Operations](index=9&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) This section presents the company's revenues, expenses, and net income for the three and six months ended June 30, 2025, compared to the same periods in 2024 - The full unaudited condensed consolidated statements of operations are provided for detailed financial review[30](index=30&type=chunk) [Unaudited Condensed Consolidated Balance Sheets](index=10&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) This section details the company's assets, liabilities, and stockholders' equity as of June 30, 2025, compared to December 31, 2024 - The full unaudited condensed consolidated balance sheets are provided, showing total assets of **$381.7 million** as of June 30, 2025[32](index=32&type=chunk) [Unaudited Condensed Consolidated Statement of Cash Flows](index=11&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CASH%20FLOWS) This section outlines cash inflows and outflows from operating, investing, and financing activities for the six months ended June 30, 2025 and 2024 - The full unaudited condensed consolidated statement of cash flows is provided for detailed analysis of cash movements[33](index=33&type=chunk) [Supplemental Non-GAAP Financial Measures](index=12&type=section&id=SUPPLEMENTAL%20NON-GAAP%20FINANCIAL%20MEASURES) This section provides reconciliations of non-GAAP financial measures, including Adjusted EBITDA and Free Cash Flow, to their most directly comparable U.S. GAAP measures - This section includes detailed reconciliations of Net Income to Adjusted EBITDA by business segment and Net Cash Provided by Operating Activities to Free Cash Flow[38](index=38&type=chunk)[39](index=39&type=chunk)[41](index=41&type=chunk)
Ranger Energy Services(RNGR) - 2025 Q1 - Quarterly Report
2025-04-30 20:22
PART I – FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Net income improved to **$0.6 million** from a **$0.8 million** loss, with total revenue slightly decreasing to **$135.2 million** [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets were **$376.5 million**, a slight decrease from year-end 2024, with **$272.6 million** in equity Condensed Consolidated Balance Sheet Highlights (in millions) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $40.3 | $40.9 | | Total current assets | $143.5 | $144.2 | | Property and equipment, net | $220.8 | $225.1 | | **Total assets** | **$376.5** | **$380.5** | | **Liabilities & Equity** | | | | Total current liabilities | $62.3 | $65.5 | | Total liabilities | $103.9 | $106.7 | | Total stockholders' equity | $272.6 | $273.8 | | **Total liabilities and stockholders' equity** | **$376.5** | **$380.5** | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Total revenue slightly decreased to **$135.2 million**, while net income improved to **$0.6 million** from a **$0.8 million** loss Q1 2025 vs Q1 2024 Statement of Operations (in millions, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Revenue | $135.2 | $136.9 | | Total Cost of Services | $115.4 | $120.8 | | Operating Income (Loss) | $1.0 | $(0.5) | | Net Income (Loss) | $0.6 | $(0.8) | | Diluted EPS | $0.03 | $(0.03) | - Revenue from High Specification Rigs and Processing Solutions grew, but was offset by a significant decline in Wireline Services revenue[15](index=15&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow was **$10.6 million**, with net cash decreasing by **$0.6 million** due to investing and financing activities Q1 2025 vs Q1 2024 Cash Flows (in millions) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $10.6 | $12.0 | | Net cash used in investing activities | $(6.1) | $(5.7) | | Net cash used in financing activities | $(5.1) | $(10.9) | | **Net change in cash** | **$(0.6)** | **$(4.6)** | - The decrease in cash used in financing activities compared to Q1 2024 is mainly because there were no share repurchases in Q1 2025, whereas Q1 2024 included **$8.5 million** in repurchases[19](index=19&type=chunk)[17](index=17&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail business segments, accounting policies, debt, equity, and segment performance, highlighting customer concentration - The company operates in three reportable segments: High Specification Rigs, Wireline Services, and Processing Solutions and Ancillary Services[21](index=21&type=chunk)[25](index=25&type=chunk) - In Q1 2025, four customers accounted for approximately **29%**, **11%**, **13%**, and **11%** of consolidated revenues, indicating significant customer concentration[59](index=59&type=chunk) - The company has an **$85.0 million** share repurchase program, with **$50.2 million** remaining available as of March 31, 2025, and no shares were repurchased in Q1 2025[56](index=56&type=chunk)[57](index=57&type=chunk) - The quarterly dividend was increased to **$0.06 per share** in 2025, with **$1.3 million** paid to shareholders in Q1 2025[58](index=58&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Improved net income driven by strong rig and processing segments, offsetting wireline weakness, with **$104.4 million** liquidity [Business Outlook](index=21&type=section&id=Business%20Outlook) Wireline faces weak demand, but the company expects long-term benefits from E&P consolidation and monitors crude prices - The Wireline segment continues to face weakness due to declining completions activity and increased competition[80](index=80&type=chunk) - The company expects to benefit from ongoing consolidation among E&P operators, anticipating favorable preference from larger, more stable organizations[81](index=81&type=chunk) - Management is monitoring geopolitical events and OPEC+ production levels, noting that crude prices below **$60 per barrel** could trigger activity reductions[81](index=81&type=chunk)[82](index=82&type=chunk) [Results of Operations](index=22&type=section&id=Results%20of%20Operations) Total revenue decreased **1%** to **$135.2 million**, with rig and processing growth offset by a **48%** wireline decline Revenue by Segment - Q1 2025 vs Q1 2024 (in millions) | Segment | Q1 2025 | Q1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | High specification rigs | $87.5 | $79.7 | +10% | | Wireline services | $17.2 | $32.8 | -48% | | Processing solutions and ancillary services | $30.5 | $24.4 | +25% | | **Total revenue** | **$135.2** | **$136.9** | **-1%** | - The decline in Wireline Services revenue was primarily due to a **64%** decrease in completed stage counts, reflecting a strategic decision to pursue only work with appropriate margins[94](index=94&type=chunk) - The company's net income increased to **$0.6 million** from a loss of **$0.8 million**, driven by improved performance in the High Specification Rigs and Ancillary Services segments[104](index=104&type=chunk) [Adjusted EBITDA Analysis](index=26&type=section&id=Adjusted%20EBITDA%20Analysis) Consolidated Adjusted EBITDA increased to **$15.5 million**, driven by rig and processing growth, despite wireline loss Adjusted EBITDA by Segment - Q1 2025 vs Q1 2024 (in millions) | Segment | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | High Specification Rigs | $17.4 | $13.6 | | Wireline Services | $(2.3) | $0.2 | | Processing Solutions and Ancillary Services | $5.6 | $2.5 | | Other | $(5.2) | $(5.4) | | **Total Adjusted EBITDA** | **$15.5** | **$10.9** | [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) Total liquidity was **$104.4 million**, with no outstanding borrowings, sufficient for future capital and debt needs - Total liquidity was **$104.4 million** as of March 31, 2025, consisting of **$40.3 million** cash and **$64.1 million** available under the revolving credit facility[114](index=114&type=chunk) - The company had no outstanding borrowings under its Wells Fargo Revolving Credit Facility as of March 31, 2025[124](index=124&type=chunk) - Working capital increased to **$81.2 million** as of March 31, 2025, from **$78.7 million** at the end of 2024[120](index=120&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risks](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risks) The company faces market risks from geopolitical events, interest rates, customer concentration, and commodity price volatility - The company is monitoring geopolitical events, such as conflicts in the Middle East and Ukraine, and their potential impact on commodity prices and global markets[130](index=130&type=chunk)[131](index=131&type=chunk) - As of March 31, 2025, the top three trade receivable balances represented approximately **30%**, **19%**, and **9%** of consolidated net accounts receivable, highlighting significant credit risk concentration[134](index=134&type=chunk) - The company's services are indirectly exposed to fluctuations in oil and natural gas prices, which can impact the activity levels of its E&P customers[135](index=135&type=chunk) [Item 4. Controls and Procedures](index=29&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of March 31, 2025, with no material changes in internal controls - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[138](index=138&type=chunk) - No changes occurred in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, these controls[139](index=139&type=chunk) PART II – OTHER INFORMATION [Item 1. Legal Proceedings](index=30&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently subject to any material legal proceedings, maintaining prudent insurance coverage - The company is not currently a party to any material legal proceedings, and management does not expect existing matters to have a material adverse effect on its financial position[140](index=140&type=chunk) [Item 1A. Risk Factors](index=30&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors previously disclosed in the company's Annual Report on Form 10-K - The company refers to the 'Risk Factors' section in its Annual Report for a description of factors that could materially affect its business, financial condition, and operating results[141](index=141&type=chunk) [Item 2. Unregistered Sales of Securities and Use of Proceeds](index=30&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Securities%20and%20Use%20of%20Proceeds) The company has an **$85.0 million** share repurchase program, with no shares repurchased in Q1 2025 - The Board of Directors has authorized a total share repurchase program of **$85.0 million**[142](index=142&type=chunk) - No shares of Class A Common Stock were repurchased on the open market during the first quarter of 2025[144](index=144&type=chunk) [Item 5. Other Information](index=31&type=section&id=Item%205.%20Other%20Information) No directors or executive officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements - No directors or executive officers adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter ended March 31, 2025[145](index=145&type=chunk) [Item 6. Exhibits](index=32&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed, including equity award agreements and CEO/CFO certifications - The report includes exhibits such as forms for Restricted Stock Unit and Performance Stock Unit agreements, as well as CEO and CFO certifications[148](index=148&type=chunk)
Ranger Energy Services(RNGR) - 2025 Q1 - Earnings Call Transcript
2025-04-30 15:02
Financial Data and Key Metrics Changes - Revenue for the first quarter of 2025 was $135.2 million, a decrease from $143.1 million in the fourth quarter of 2024 and slightly down from $136.9 million in the first quarter of 2024 [19][20] - Adjusted EBITDA increased by 42% year over year to $15.5 million, with a margin of 11.4%, showing significant improvement compared to the same period last year [6][20] - Free cash flow for the quarter was $3.4 million, or $0.15 per share [20] Business Line Data and Key Metrics Changes - High Specification Rigs reported revenue of $87.5 million, with adjusted EBITDA of $17.4 million, an increase of 28% from the first quarter of 2024 [21] - Ancillary services segment revenue was $30.5 million, up 25% from the first quarter of 2024, while the Wireline segment revenue decreased by 24% quarter over quarter and 48% year over year, reporting an EBITDA loss of $2.3 million [22][21] Market Data and Key Metrics Changes - The company experienced a 25% increase in revenue year over year, despite challenges from severe winter weather impacting operations [11] - The High Specification Rig segment recorded its fifth consecutive quarter of revenue growth, driven by consistent rig hours and a higher blended rate [9] Company Strategy and Development Direction - The company aims to maximize free cash flow, prioritize shareholder returns, defend the balance sheet, and grow through disciplined accretive M&A [14] - Strategic investments in Q1 were made to enhance service offerings, with a focus on maintaining a strong balance sheet and capital allocation flexibility [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience amid market volatility, emphasizing a production-oriented focus and a strong balance sheet [5][10] - Despite some customers planning for reduced activity due to lower commodity prices, there have not been material reductions in well services production [10] Other Important Information - As of March 31, the company had zero long-term debt, $104.4 million in liquidity, and $40 million in cash [17][22] - The company announced a 20% increase in dividends to $0.06 per share, reaffirming its commitment to capital returns [16] Q&A Session Summary Question: Differentiation between workover projects and new drills - Management indicated that about 80% of revenues are associated with production focus, which aligns with OpEx budgets, making the company more resilient through cycles [27][28] Question: Wireline segment performance and margin recovery - Management acknowledged challenges in the Wireline segment due to severe weather but expressed optimism for a return to positive margins in the upcoming quarters [30][31] Question: Balance sheet management and M&A potential - Management highlighted the importance of balance sheet strength to weather market uncertainty and indicated ongoing interest in M&A opportunities as market conditions evolve [32][34] Question: Impact of rising costs and tariffs on the coil business - Management noted that while there is recognition of rising costs, passing through surcharges to customers remains balanced and dependent on broader macro conditions [42][43] Question: Market pressure on smaller competitors - Management confirmed that smaller players are under pressure, leading to potential opportunities for consolidation as the market evolves [46][47]
Ranger Energy Services(RNGR) - 2025 Q1 - Earnings Call Transcript
2025-04-30 14:00
Financial Data and Key Metrics Changes - Revenue for the first quarter was $135.2 million, down from $143.1 million in the fourth quarter, and slightly down from $136.9 million in the first quarter of 2024 [18] - Adjusted EBITDA increased by 42% year over year to $15.5 million, with a margin of 11.4%, a significant improvement over the same period last year [5][19] - Free cash flow during the quarter was $3.4 million or $0.15 per share [19] Business Line Data and Key Metrics Changes - High Specification Rigs reported revenue of $87.5 million, with adjusted EBITDA of $17.4 million, an increase of 28% from the first quarter of 2024 [20] - Ancillary services segment revenue was $30.5 million, up 25% from the first quarter of 2024, while adjusted EBITDA for this segment was $5.6 million, up $3.1 million from the prior year [20][21] - Wireline revenue decreased by 24% quarter over quarter and 48% year over year, reporting an EBITDA loss of $2.3 million due to severe weather impacts [21] Market Data and Key Metrics Changes - The company has maintained strong relationships with major operators in the Lower 48, which has allowed for market share gains despite broader market challenges [12][13] - The company has not seen material reductions in well services production, although some customers are making contingency plans for reduced activity [9] Company Strategy and Development Direction - The company aims to maximize free cash flow, prioritize shareholder returns, defend the balance sheet, and grow through disciplined M&A [13] - Capital expenditures in Q1 were directed towards enhancing service offerings, with a focus on maintaining capital allocation flexibility [14] - The company announced a 20% increase in dividends to $0.06 per share, reaffirming its commitment to capital returns [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience through market volatility, emphasizing a production-oriented focus and a strong balance sheet [4][5] - The macroeconomic environment is currently uncertain, but the company has experienced limited impact so far [12] - Management believes that the company is well-positioned to take advantage of opportunities during market downturns [33] Other Important Information - As of March 31, the company had zero long-term debt, $104.4 million in liquidity, and $40 million in cash [15][22] - The company is evaluating strategic growth opportunities, although the bid-ask spread remains an obstacle [15] Q&A Session Summary Question: Differentiation between workover projects and new drills - Management indicated that about 80% of revenues are associated with production focus, which aligns with OpEx budgets, making the company more resilient through cycles [25][26] Question: Wireline segment performance and margin recovery - Management acknowledged challenges in the wireline segment due to severe weather but expects to move into positive territory in the second quarter [28][29] Question: Balance sheet management and M&A potential - Management highlighted the importance of balance sheet strength for weathering market challenges and indicated ongoing interest in M&A opportunities as market conditions evolve [30][33] Question: Impact of rising costs and tariffs on the coil business - Management noted that while there is recognition of rising costs, passing those through to customers may be limited at this time [41] Question: Market pressure on smaller competitors - Management confirmed that smaller players are under pressure, leading to potential opportunities for consolidation as the market evolves [45][46]
Ranger Energy Services(RNGR) - 2025 Q1 - Earnings Call Presentation
2025-04-30 01:29
Financial Performance - Revenue for Q1 2025 was $135.2 million[13], a decrease compared to $143.1 million in Q4 2024 and $136.9 million in Q1 2024[13] - Adjusted EBITDA for Q1 2025 was $15.5 million with an 11.4% margin[13], down from $21.9 million and 15.3% in Q4 2024, but higher than $10.9 million and 8.0% in Q1 2024[13] - Free Cash Flow for Q1 2025 was $3.4 million[6], significantly lower than the $27.3 million in Q4 2024 and $5.5 million in Q1 2024[13] - Net income for Q1 2025 was $0.6 million, compared to $5.8 million in Q4 2024 and a loss of $(0.8) million in Q1 2024[13] Segment Highlights - High-Specification Rigs revenue reached $87.5 million in Q1 2025[16], a 10% increase year-over-year[21], with Adjusted EBITDA of $17.4 million and a 19.9% margin[19] - Processing Solutions & Ancillary Services revenue was $30.5 million in Q1 2025[23], with Adjusted EBITDA of $5.6 million and an 18.4% margin[24] - Wireline Services revenue was $17.2 million in Q1 2025[30], with an Adjusted EBITDA loss of $(2.3) million and a -13.4% margin[31], impacted by weather conditions[32] Capital Allocation - $1.3 million of Free Cash Flow was returned to shareholders in Q1 2025[6], representing 45% of Free Cash Flow returned since the program's inception in Q3 2023[6] - A total of 3,325,800 shares have been repurchased since the program's inception at an average price of $10.37 per share, representing 15% of outstanding shares[6] Liquidity - The company maintains a strong balance sheet with $104.4 million of liquidity, including $40.3 million of cash on hand at the end of Q1 2025[14]
Ranger Energy Services(RNGR) - 2025 Q1 - Quarterly Results
2025-04-29 20:12
EXHIBIT 99.1 Ranger Energy Services, Inc. Announces Q1 2025 Results HOUSTON, TX--(April 29, 2025) - Ranger Energy Services, Inc. (NYSE: RNGR) ("Ranger" or the "Company") announced today its results for the first quarter ended March 31, 2025. First Quarter 2025 Highlights Management Comments Stuart Bodden, Ranger's Chief Executive Officer, commented, "This quarter reflects the continued strength of our core High Specification Rigs business and the growth trend we have seen in this segment over the past coupl ...