UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-38183 RANGER ENERGY SERVICES, INC. (Exact name of registrant as specified in its charter) Delaware 81-5449572 (State or other jurisdiction of incorporation or org ...

Ranger Energy Services (RNGR) Q1 2025 Earnings Call April 30, 2025 10:00 AM ET Speaker0 Good day, and welcome to the Ranger Energy First Quarter of twenty twenty five Conference Call. All participants will be in a listen only mode for the duration of the call. After today's presentation, there will be an opportunity to ask questions. Also, please be aware that today's call is being recorded. I would now like to turn the call over to Joe Meese, Vice President of Finance. Please go ahead, sir. Speaker1 Thank ...

April 2025 IMPORTANT DISCLOSURES Forward-Looking Statements: Certain statements contained in this press release constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact included in this press release, regarding our strategy, future operations, financial position, estimated revenue and losses, projected costs, prospects, plans ...

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 ...

Group 1 - The article discusses Ranger Energy Services (NYSE: RNGR) and its performance in early 2025, highlighting that despite ongoing completion softness, the company managed to outperform its competitors [1] - The author has over 14 years of experience in stock analysis, with a focus on the energy sector, particularly oilfield equipment services, and industrial supply [1]

Operations and Services - The company operates in multiple active oil and natural gas basins in the U.S., including the Permian Basin and Bakken Shale, providing services through three reportable segments: High Specification Rigs, Wireline Services, and Processing Solutions[20] - As of December 31, 2024, the company has a fleet of 406 well service rigs, with 180 active and marketable rigs, 168 available for reactivation, and 35 classified as assets held for sale[33] - The High Specification Rigs segment includes 329 rigs with a mast height greater than 102 feet or operating horsepower greater than 450, indicating a focus on advanced well servicing capabilities[34] - The Wireline Services segment operates 72 wireline trucks and 29 high-pressure pump trucks, essential for well completion and intervention operations[36] - The company maintains a fleet of approximately 1,100 light-duty trucks and vehicles to support operational activities across all segments as of December 31, 2024[39] - The company’s processing solutions include 30 mechanical refrigeration units and 60 gas coolers, enhancing its capabilities in gas processing operations[38] Market Dynamics - The company’s operations are influenced by the cyclical nature of the oil and gas industry, with demand for services closely tied to E&P companies' capital expenditures, which fluctuate with oil and natural gas prices[42] - Seasonal weather conditions can adversely affect operations, particularly in regions like the Denver-Julesburg Basin and Bakken Shale, leading to reduced service capacity during winter months[43] - The competitive landscape includes both large and small oilfield service providers, with significant competition in various geographic regions across the U.S.[40] Customer Base - In the year ended December 31, 2024, four customers accounted for approximately 22%, 13%, 13%, and 11% of the company's consolidated revenue, while in 2023, two customers accounted for approximately 10% each[46] - The top five revenue-generating customers represented approximately 65% of consolidated revenue in 2024, up from 43% in 2023[46] - The company served approximately 215 distinct customers during 2024, indicating a diverse customer portfolio[46] Workforce and Supply Chain - As of December 31, 2024, the company employed approximately 1,950 full-time employees and utilized independent contractors as needed[48] - The company is not dependent on any single source of supply for materials, ensuring flexibility and continuity in operations[47] Regulatory and Environmental Risks - The company faces potential increased costs and liabilities due to stringent environmental regulations, which could adversely affect its financial condition and operations[52] - Compliance with air pollution control and permitting requirements may lead to increased capital expenditures and operational delays[64] - The company is subject to various environmental laws that could impose substantial liabilities for pollution resulting from its operations[57] - The threat of climate change and related regulatory risks may adversely affect the demand for the company's products and services[66] - The company may face litigation risks related to climate change, which could impact its operations and financial performance[67] - The adoption of stricter regulations on GHG emissions could increase compliance costs and reduce demand for oil and natural gas services[69] - Hydraulic fracturing is regulated by state commissions, with federal oversight from the EPA, which has issued rules affecting wastewater discharge and the use of diesel fuel[71] - Increased regulatory oversight at state and local levels may lead to higher operational costs or suspension of operations for customers, adversely impacting demand for services[72] - Historical environmental compliance costs have not materially affected the company's financial condition, but future costs could be significant due to stricter regulations[74] Financial Risks - The company is exposed to interest rate risk associated with its Wells Fargo Revolving Credit Facility, with a potential interest expense change of less than $0.1 million per year for a 1.0% rate change[271] - As of December 31, 2024, the top three trade receivable balances represented 31%, 20%, and 8% of consolidated accounts receivable, indicating concentration risk[272] - The company does not currently hedge its indirect exposure to commodity price risk, which could affect demand for services if oil and natural gas prices decline significantly[273]

2 Q4 2023 Financial Summary 2024 Highlights Consolidated Adjusted EBITDA(1)($MM) & Adjusted EBITDA Margin $608.5 $636.6 $571.1 2022 2023 2024 Year End 2024 Earnings March 2025 IMPORTANT DISCLOSURES Forward-Looking Statements: Certain statements contained in this press release constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historica ...

Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $143.1 million, down from $153 million in Q3 2024, reflecting typical seasonality [29] - Adjusted EBITDA for Q4 2024 was $21.9 million with a margin of 15.3%, slightly lower than the previous quarter but up 320 basis points from Q4 2023 [30] - Full-year revenue for 2024 was $571.1 million, a 10% decrease from the previous year, primarily due to lower activity levels and wireline completions [30] - Adjusted EBITDA for the full year was $78.9 million, down from $84.4 million in 2023 [30] - Free cash flow for 2024 was $50.4 million, representing 64% of adjusted EBITDA [22] Business Line Data and Key Metrics Changes - High Spec Rigs achieved a quarterly revenue record of $87 million in Q4 2024, with adjusted EBITDA of $19 million, up 21% year-over-year [31] - For the full year, High Spec Rigs generated revenues of $336.1 million and adjusted EBITDA of $70.5 million, increases of 7% and 10% respectively [32] - Ancillary services also had a record year with revenue of $124.8 million and adjusted EBITDA of $26.6 million, increases of 1% and 18% respectively [32] - Wireline revenue in Q4 2024 was $22.6 million, down 26% from the prior quarter, with breakeven margins [33] Market Data and Key Metrics Changes - The US land services market is expected to remain subdued through the first half of 2025, with potential recovery in the latter half [36] - The company anticipates that high-spec rigs and ancillary segments will post modest year-over-year growth in 2025 [38] - Wireline segment conditions are not expected to improve significantly in 2025, with potential slight revenue declines year-over-year [39] Company Strategy and Development Direction - The company focuses on maximizing free cash flow, prioritizing shareholder returns, and pursuing disciplined growth opportunities [21][42] - Strategic investments have been made in the plugging and abandonment (P&A) market, primarily driven by E&P activities [48] - The company aims to consolidate its position in a fragmented industry and is actively seeking accretive acquisition opportunities [26] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding potential rig demand in the latter half of 2025, particularly in the Mid Con and Haynesville markets [50] - The company is experiencing challenges in the wireline segment but is pivoting towards conventional wireline services to stabilize and extract long-term value [20][39] - Management remains committed to enhancing shareholder value through a balanced approach to growth and returns [40] Other Important Information - The company announced a 20% increase in the regular quarterly dividend from $0.05 to $0.06 per share, reflecting confidence in business stability [24] - The company ended 2024 with nearly $41 million in cash and zero long-term debt, providing financial flexibility for future opportunities [25] Q&A Session Summary Question: Investments in P&A market and drivers of increase - Management indicated that investments in the P&A market are mainly driven by E&P activities, with efforts to bid on government-related work as well [48] Question: Potential rig demand from gas companies - Management noted cautious optimism regarding rig demand in the back half of the year, with some strength observed in the Mid Con and Haynesville markets [50] Question: Importance of safety records and training for contracts - Management emphasized that safety records and maintenance schedules are increasingly important for securing contracts with larger companies [51][55]

Financial Performance - Full year 2024 revenue was $571.1 million, with net income of $18.4 million, or $0.81 per fully diluted share[3] - Adjusted EBITDA for full year 2024 was $78.9 million, representing a 13.8% margin, compared to $84.4 million and 13.3% margin in 2023[3] - Fourth quarter 2024 revenue was $143.1 million, a decrease from $153.0 million in the prior quarter and $151.5 million in the prior year[12] - Net income for the year ended December 31, 2024, was $18.4 million, down from $23.8 million in 2023, reflecting a decrease of 22.7%[33] - The total net income for the year ended December 31, 2024, was $18.4 million, a decrease from $23.8 million in 2023, reflecting a decline of 23%[40] Cash Flow and Liquidity - Free Cash Flow for 2024 was $50.4 million, or $2.24 per share, with total liquidity of $112.1 million at year-end[3] - The company returned over 40% of 2024 Free Cash Flow through dividends and share repurchases, exceeding its minimum commitment[3] - The quarterly dividend was increased by 20% to $0.06 per share, reflecting confidence in future cash flow[3] - Cash and cash equivalents increased to $40.9 million as of December 31, 2024, from $15.7 million at the end of 2023, a growth of 160.5%[32] - Net cash provided by operating activities for the year ended December 31, 2024, was $84.5 million, down from $90.8 million in 2023, indicating a decrease of 7%[42] Segment Performance - High-Specification Rigs segment revenue reached $87.0 million in Q4 2024, an increase of $8.0 million year-over-year[15] - Wireline Services segment revenue decreased by 25% quarter-over-quarter to $22.6 million, and by 46% year-over-year[17] - Processing Solutions and Ancillary Services segment revenue was $33.5 million in Q4 2024, up 8% from the prior year[19] - High Specification Rigs revenue was $86.7 million for the three months ended September 30, 2024, up from $79.0 million in the same period of 2023, a 9.8% increase[30] Operating Expenses and Income - Operating income for the three months ended September 30, 2024, was $12.9 million, compared to $8.9 million for the same period in 2023, an increase of 45.0%[30] - Total operating expenses for the three months ended September 30, 2024, were $140.1 million, compared to $134.2 million in the same period of 2023, an increase of 4.4%[30] - The company incurred $1.7 million in severance and reorganization costs for the three months ended December 31, 2024[39] Asset Management - Total assets as of December 31, 2024, were $381.6 million, slightly up from $378.0 million in 2023, indicating a 0.9% increase[32] - Ranger Energy Services reported a decrease in accounts receivable from $85.4 million in 2023 to $68.4 million in 2024, a reduction of 20.0%[32] EBITDA and Margins - Adjusted EBITDA for the three months ended December 31, 2024, was $21.9 million, compared to $18.4 million for the same period in 2023, reflecting a year-over-year increase of 19%[38] - The Adjusted EBITDA margin for the year ended December 31, 2024, was 78.9 million, compared to 84.4 million in 2023, showing a decrease of 6%[42] - The company’s Free Cash Flow conversion rate for the three months ended December 31, 2024, was 125%, compared to 158% in the same period of 2023[42] Depreciation and Interest - Depreciation and amortization expenses for the year ended December 31, 2024, totaled $44.1 million, compared to $39.9 million in 2023, indicating an increase of 10%[40] - The company’s interest expense for the year ended December 31, 2024, was $2.6 million, consistent with the previous year[39]

Revenue Performance - Total revenue for Q3 2024 decreased by $11.4 million, or 7%, to $153.0 million compared to $164.4 million in Q3 2023[79] - Revenue from High Specification Rigs increased by $7.5 million, or 9%, to $86.7 million, driven by a 6% increase in average revenue per rig hour to $741[79] - Wireline Services revenue decreased by $22.9 million, or 43%, to $30.3 million, primarily due to a 63% decrease in completed stage counts to 2,500[79] - Processing Solutions and Ancillary Services revenue increased by $4.0 million, or 13%, to $36.0 million, attributed to growth in rentals, plugging and abandonment, logistics, and coil tubing[79] - High Specification Rigs revenue increased by $14.8 million, or 6%, to $249.1 million for the nine months ended September 30, 2024, with an average revenue per rig hour up 5% to $730[83] - Wireline Services revenue decreased by $70.0 million, or 44%, to $87.6 million for the nine months ended September 30, 2024, driven by a 63% decrease in completed stage counts[83] - Processing Solutions and Ancillary Services revenue decreased by $1.9 million, or 2%, to $91.3 million for the nine months ended September 30, 2024, with a recovery in coil tubing activity noted in Q3 2024[84] - Total revenue for the nine months ended September 30, 2024 decreased by $57.1 million, or 12%, to $428.0 million from $485.1 million in the prior year[83] Income and Expenses - Operating income for Q3 2024 was $12.9 million, an increase of $1.2 million from $11.7 million in Q3 2023[79] - General and administrative expenses for Q3 2024 were $7.1 million, slightly up from $7.0 million in Q3 2023[79] - Net income for Q3 2024 was $8.7 million, a decrease of $0.7 million from $9.4 million in Q3 2023[79] - Net income for the nine months ended September 30, 2024 decreased by $9.1 million, or 42%, to $12.6 million from $21.7 million in the prior year, primarily due to reduced activity in the Wireline Services segment[84] - General and administrative expenses decreased by $2.0 million, or 9%, to $20.7 million for the nine months ended September 30, 2024, attributed to lower personnel costs[84] - Depreciation and amortization increased by $4.0 million, or 14%, to $33.3 million for the nine months ended September 30, 2024, due to increased capital expenditures[84] - Interest expense, net decreased by $0.7 million, or 25%, to $2.1 million for the nine months ended September 30, 2024, resulting from reduced borrowings and refinancing[84] Adjusted EBITDA - Adjusted EBITDA for Q3 2024 increased by $1.1 million to $25.1 million compared to $24.0 million in Q3 2023[91] - High Specification Rigs segment saw Adjusted EBITDA rise by $3.5 million to $19.2 million, driven by a revenue increase of $7.5 million[91] - Wireline Services segment's Adjusted EBITDA decreased by $4.7 million to $2.7 million due to a revenue decline of $22.9 million[91] - Processing Solutions and Ancillary Services Adjusted EBITDA increased by $2.3 million to $8.8 million, supported by a revenue increase of $4.0 million[91] - For the nine months ended September 30, 2024, total Adjusted EBITDA was $51.5 million, with High Specification Rigs contributing $34.0 million[94] - Adjusted EBITDA for the nine months ended September 30, 2024 decreased by $9.0 million to $57.0 million from $66.0 million for the same period in 2023[97] - High Specification Rigs Adjusted EBITDA increased by $2.8 million to $51.5 million, primarily due to increased operating levels during Q3 2024[97] - Wireline Services Adjusted EBITDA decreased by $14.0 million to $3.3 million, attributed to significant decreases in operating activity within the completions service line[97] Liquidity and Capital Management - Total liquidity as of September 30, 2024 was $86.1 million, consisting of $14.8 million in cash and $71.3 million available under the Wells Fargo Revolving Credit Facility[98] - Net cash provided by operating activities decreased by $1.3 million to $51.8 million for the nine months ended September 30, 2024[101] - Net cash used in investing activities increased by $4.2 million to $27.2 million for the nine months ended September 30, 2024[102] - The company repurchased Class A Common Stock, with a total share repurchase program authorization of $85.0 million[112] - The company paid dividend distributions totaling $3.4 million for the nine months ended September 30, 2024, compared to $1.2 million for the same period in 2023[112] - Working capital remained relatively flat at $66.2 million as of September 30, 2024, compared to $66.4 million as of December 31, 2023[105] - The weighted average interest rate for borrowings under the Wells Fargo Revolving Credit Facility was approximately 7.2% for the nine months ended September 30, 2024[108] - As of September 30, 2024, the Company had no borrowings under the Wells Fargo Revolving Credit Facility, indicating minimal interest rate exposure[116] Market Outlook and Risks - The company anticipates stable demand for services due to OPEC+ production cuts and projected oil demand increases of 2.11 million barrels per day in 2024[71] - The company expects favorable long-term preferences from larger organizations due to consolidation in the energy industry[71] - Geopolitical events and the U.S. election cycle are expected to impact the industry, influencing commodity prices and operational conditions[71] - OPEC+ expects oil demand to rise by approximately 2.11 million barrels per day in 2024 and by 1.78 million barrels per day in 2025[115] - Geopolitical events, particularly regarding China and Russia, are expected to impact the macroeconomic backdrop and commodity prices[115] - Fluctuations in oil and natural gas prices could significantly impact the activity levels of E&P customers and, consequently, the demand for the Company's services[118] Credit and Receivables Management - The top three trade receivable balances represented approximately 21%, 11%, and 11% of consolidated net accounts receivable as of September 30, 2024[117] - In the High Specification Rig segment, the top three trade receivable balances accounted for 28%, 15%, and 12% of total net accounts receivable[117] - The top three trade receivable balances in the Wireline Services segment represented 18%, 10%, and 9% of total net accounts receivable[117] - The Company performs credit evaluations and monitors customer payment patterns to mitigate credit risk[117] - The Company does not currently intend to hedge its indirect exposure to commodity price risk, which could affect demand for its services[118] - A hypothetical 1.0% increase or decrease in the weighted average interest rate would change interest expense by less than $0.1 million per year[116]