Core Viewpoint - Ranger Energy Services reported strong earnings per share for Q2 2025, exceeding analyst expectations, while revenue slightly missed estimates but showed year-over-year growth [1][5]. Financial Performance - Earnings per share (EPS) for Q2 2025 was $0.32, surpassing the estimate of $0.24 and up 52.4% from $0.21 in Q2 2024 [2]. - Revenue for the quarter was $140.6 million, just below the expected $141.7 million, but up 1.8% from $138.1 million in the same period last year [2]. - Adjusted EBITDA was $20.6 million, down 1.9% year-over-year [2]. - Free cash flow reached $14.4 million, a significant increase of 111.8% from $6.8 million in Q2 2024 [2]. - Net income was $7.3 million, reflecting a 55.3% increase from $4.7 million in the previous year [2]. Business Overview - Ranger Energy Services operates in the U.S. oilfield services sector, focusing on well servicing, wireline, and processing solutions for onshore oil and natural gas producers [3]. - The company emphasizes a modern fleet designed to support ongoing production needs rather than new well drilling [4]. Segment Performance - The High Specification Rigs segment generated $86.3 million in revenue, up 4.4% from Q2 2024, with 117,000 rig hours recorded [6]. - Wireline Services revenue declined 10% year-over-year but rebounded 28% from the previous quarter, with completed stage counts rising 47% year-over-year [7]. - Processing Solutions and Ancillary Services reported $32.2 million in revenue, up 4% year-over-year, with a 6% sequential growth [8]. Strategic Developments - The company introduced the ECHO e-rig, a hybrid electric well service rig aimed at reducing emissions and energy consumption, with two rigs contracted for service by the end of Q3 [9]. - Free cash flow and stable general and administrative costs contributed to an improved net income margin [10][11]. Future Outlook - Management did not provide formal guidance but expects stability in activity levels through Q3, with potential unpredictability in Q4 due to industry uncertainty [12]. - Key factors to monitor include the recovery in Wireline Services, customer adoption of the ECHO e-rig, and the impact of lower capital expenditures on future growth [13].

[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)

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)

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]

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]

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]

[Q1 2025 Results Announcement](index=1&type=section&id=Q1%202025%20Results%20Announcement) Ranger Energy Services, Inc. announced its financial results for the first quarter ended March 31, 2025, on April 29, 2025 [Company Announcement](index=1&type=section&id=Company%20Announcement) Ranger Energy Services, Inc. announced its financial results for the first quarter ended March 31, 2025, on April 29, 2025 - Ranger Energy Services, Inc. announced its **Q1 2025 results** on April 29, 2025[1](index=1&type=chunk) [Executive Summary & Management Commentary](index=1&type=section&id=Executive%20Summary%20%26%20Management%20Commentary) This section provides an overview of Q1 2025 financial highlights, management's perspective on performance and outlook, and updates on capital allocation strategies [First Quarter 2025 Highlights](index=1&type=section&id=First%20Quarter%202025%20Highlights) The company reported a slight decrease in revenue year-over-year and quarter-over-quarter, but a significant increase in net income and Adjusted EBITDA year-over-year, despite weather challenges. Liquidity remained strong Q1 2025 Key Financial Highlights (in millions) | Metric | Q1 2025 | Q1 2024 | QoQ Change (vs Q4 2024) | YoY Change (vs Q1 2024) | | :----------------------- | :-------- | :-------- | :----------------------- | :---------------------- | | Revenue | $135.2M | $136.9M | -6% (from $143.1M) | -1% | | Net Income | $0.6M | -$0.8M | Decrease (from $5.8M) | Increase | | Diluted EPS | $0.03 | -$0.03 | Decrease (from $0.25) | Increase | | Adjusted EBITDA | $15.5M | $10.9M | -29% (from $21.9M) | +42% | | Adjusted EBITDA Margin | 11.4% | N/A | N/A | N/A | | Free Cash Flow | $3.4M | $5.5M | N/A | Decrease | | Free Cash Flow per share | $0.19 | $0.24 | N/A | Decrease | | Available Cash | $40.3M | N/A | N/A | N/A | | Total Liquidity | $104.4M | N/A | N/A | N/A | [Management Comments](index=1&type=section&id=Management%20Comments) CEO Stuart Bodden highlighted the continued strength of the High Specification Rigs business despite significant weather impacts in Q1 2025. While the Wireline segment faced losses due to weather, the Ancillary segment showed improvement from the prior year. The company maintains a positive outlook for Q2, emphasizing strong customer relationships, a production-focused business model, and a robust balance sheet with zero debt and over $100 million in liquidity - **Q1 2025 performance** was impacted by two polar vortex events and windstorms, leading to a sequentially reduced quarter[3](index=3&type=chunk) - High Specification Rigs business achieved **record revenue** with strong operating hours and rates, demonstrating market share gains and resiliency despite weather impacts[6](index=6&type=chunk) - Wireline business experienced the largest negative impact from weather, posting **EBITDA losses** for the quarter, though March results improved to **breakeven**[8](index=8&type=chunk) - The company is positioned as a production services company, differentiating itself in the oilfield services sector[5](index=5&type=chunk) - Positive outlook for Q2 with stronger activity trajectory, supported by strong relationships with major U.S. onshore producers and a robust balance sheet with **zero debt** and **over $100 million in liquidity**[9](index=9&type=chunk) - Ranger is committed to creating long-term shareholder value through potential M&A activity or share repurchases[10](index=10&type=chunk) [Capital Returns and Governance Update](index=3&type=section&id=CAPITAL%20RETURNS%20AND%20GOVERNANCE%20UPDATE) The company did not repurchase any Class A Common Stock in Q1 2025 but declared a cash dividend of $0.06 per share, maintaining its commitment to consistent capital returns - **No Class A Common Stock repurchases** were made in **Q1 2025**[11](index=11&type=chunk) - A **cash dividend of $0.06 per share** was declared, payable on May 23, 2025[11](index=11&type=chunk) - Since inception in 2023 through Q1 2025, the company repurchased a total of **3,325,800 shares for $34.8 million**[11](index=11&type=chunk) [Financial Performance Overview](index=3&type=section&id=Financial%20Performance%20Overview) This section details the company's consolidated financial performance and segment-specific results, including revenue, operating income, and Adjusted EBITDA trends [Overall Performance Summary](index=3&type=section&id=PERFORMANCE%20SUMMARY) Total revenue for Q1 2025 decreased slightly year-over-year and quarter-over-quarter, primarily due to reduced activity in the wireline segment. Cost of services improved as a percentage of revenue. Net income turned positive year-over-year, and Adjusted EBITDA saw a significant YoY increase, driven by High-Specification Rigs and Processing Solutions, but a QoQ decrease due to Wireline Services losses Q1 2025 Consolidated Financial Performance (in millions) | Metric | Q1 2025 | Q1 2024 | Q4 2024 | YoY Change | QoQ Change | | :-------------------------- | :-------- | :-------- | :-------- | :--------- | :--------- | | Revenue | $135.2M | $136.9M | $143.1M | -1.2% | -5.5% | | Cost of Services | $115.4M | $120.8M | $116.8M | -4.5% | -1.2% | | Cost of Services (% of Rev) | 85% | 88% | 81.6% | -3 ppts | +3.4 ppts | | G&A Expenses | $7.1M | $6.7M | $7.1M | +6.0% | 0% | | Net Income | $0.6M | -$0.8M | $5.8M | Turnaround | -89.7% | | Diluted EPS | $0.03 | -$0.03 | $0.25 | Turnaround | -88.0% | | Adjusted EBITDA | $15.5M | $10.9M | $21.9M | +42.2% | -29.2% | - Quarter-over-quarter revenue decrease was **primarily due to reduced activity in the wireline segment**[12](index=12&type=chunk) - Year-over-year Adjusted EBITDA increase was driven by **stronger revenue and margins in High-Specification Rigs and Processing Solutions and Ancillary Services**[14](index=14&type=chunk) [Business Segment Financial Results](index=4&type=section&id=BUSINESS%20SEGMENT%20FINANCIAL%20RESULTS) This section details the financial performance of Ranger's three primary business segments: High Specification Rigs, Processing Solutions and Ancillary Services, and Wireline Services, highlighting their individual revenue, operating income, and Adjusted EBITDA trends [High Specification Rigs](index=4&type=section&id=High%20Specification%20Rigs) This section presents the financial performance metrics for the High Specification Rigs segment, including revenue, rig hours, and hourly rates High Specification Rigs Segment Performance (in millions) | Metric | Q1 2025 | Q1 2024 | Q4 2024 | YoY Change | QoQ Change | | :------------------ | :-------- | :-------- | :-------- | :--------- | :--------- | | Revenue | $87.5M | $79.7M | $87.0M | +9.8% | +0.6% | | Rig Hours | 115,700 | 111,000 | 115,900 | +4.2% | -0.2% | | Hourly Rig Rates | $756 | $718 | $751 | +5.3% | +0.7% | | Operating Income | $12.0M | $7.8M | $13.3M | +53.8% | -9.8% | | Adjusted EBITDA | $17.4M | $13.6M | $19.0M | +27.9% | -8.4% | - **Hourly rig rates increased** due to the addition of incremental rental equipment and asset mix[15](index=15&type=chunk) [Processing Solutions and Ancillary Services](index=4&type=section&id=Processing%20Solutions%20and%20Ancillary%20Services) This section details the financial performance of the Processing Solutions and Ancillary Services segment, including revenue, operating income, and Adjusted EBITDA Processing Solutions and Ancillary Services Segment Performance (in millions) | Metric | Q1 2025 | Q1 2024 | Q4 2024 | YoY Change | QoQ Change | | :------------------ | :-------- | :-------- | :-------- | :--------- | :--------- | | Revenue | $30.5M | $24.4M | $33.5M | +25.0% | -9.0% | | Operating Income | $3.3M | $0.5M | $6.0M | +560.0% | -45.0% | | Adjusted EBITDA | $5.6M | $2.5M | $8.0M | +124.0% | -30.0% | - Year-over-year revenue increase was largely due to **increased operational activity, especially in rentals**[17](index=17&type=chunk) - Quarter-over-quarter revenue decrease was largely due to **decreased operational activity in P&A and Coil Tubing service lines**[17](index=17&type=chunk) [Wireline Services](index=4&type=section&id=Wireline%20Services) This section outlines the financial performance of the Wireline Services segment, focusing on revenue, completed stage counts, and profitability Wireline Services Segment Performance (in millions) | Metric | Q1 2025 | Q1 2024 | Q4 2024 | YoY Change | QoQ Change | | :------------------ | :-------- | :-------- | :-------- | :--------- | :--------- | | Revenue | $17.2M | $32.8M | $22.6M | -47.5% | -23.9% | | Completed Stage Counts | 1,400 | 3,400 | 1,800 | -58.8% | -22.2% | | Operating Loss | -$5.8M | -$2.9M | -$3.2M | -100.0% | -81.3% | | Adjusted EBITDA Loss | -$2.3M | $0.2M | $0.2M | -1250.0% | -1250.0% | - The **significant decline in Wireline Services was attributed to weather-related pullbacks**[8](index=8&type=chunk)[12](index=12&type=chunk) [Financial Position & Cash Flow](index=5&type=section&id=Financial%20Position%20%26%20Cash%20Flow) This section analyzes the company's balance sheet, cash flow from operating activities, free cash flow, and overall liquidity position [Balance Sheet, Cash Flow and Liquidity](index=5&type=section&id=BALANCE%20SHEET,%20CASH%20FLOW%20AND%20LIQUIDITY) The company maintained a strong liquidity position at $104.4 million as of March 31, 2025, slightly down from the previous quarter. Cash provided by operating activities and Free Cash Flow both decreased year-over-year, primarily due to higher capital expenditures Liquidity and Cash Flow Summary (in millions) | Metric | March 31, 2025 | December 31, 2024 | Q1 2025 (vs Q1 2024) | | :-------------------------------- | :--------------- | :------------------ | :------------------- | | Total Liquidity | $104.4M | $112.1M | N/A | | Revolving Credit Facility Capacity | $64.1M | $71.2M | N/A | | Cash on Hand | $40.3M | $40.9M | N/A | | Cash from Operating Activities | $10.6M | N/A | -$1.4M (from $12.0M) | | Free Cash Flow | $3.4M | N/A | -$2.1M (from $5.5M) | | Capital Expenditures | $7.2M | N/A | +$0.7M (from $6.5M) | - **Decrease in Free Cash Flow was primarily due to additional capital expenditures**[22](index=22&type=chunk) - **Investments in capital expenditures are focused on modern technological assets to improve safety, marketability, and margins of the rig fleet**[22](index=22&type=chunk) [Non-GAAP Financial Measures](index=11&type=section&id=Non-GAAP%20Financial%20Measures) This section defines and reconciles non-GAAP financial measures, including Adjusted EBITDA and Free Cash Flow, providing context for their use in financial analysis [Note Regarding Non‑GAAP Financial Measure](index=11&type=section&id=Note%20Regarding%20Non%E2%80%91GAAP%20Financial%20Measure) The company uses non-GAAP financial measures like Adjusted EBITDA and Free Cash Flow to provide additional insight into financial results, emphasizing they are supplemental to, not substitutes for, U.S. GAAP measures - **Adjusted EBITDA and Free Cash Flow are used as supplemental measures** to understand financial results[34](index=34&type=chunk) - These **non-GAAP measures should not be considered more important than or as a substitute for comparable U.S. GAAP measures**[34](index=34&type=chunk) [Adjusted EBITDA](index=11&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA is defined as net income or loss before net interest expense, income tax, depreciation and amortization, equity-based compensation, acquisition-related, severance and reorganization costs, gain or loss on disposal of property and equipment, and certain other non-cash items. It is considered useful for evaluating operating performance against peers - **Adjusted EBITDA is defined as net income or loss before specific non-operating and non-cash items**[36](index=36&type=chunk) - It is considered a **useful performance measure for evaluating operating performance compared to peers**, independent of financing methods or capital structure[35](index=35&type=chunk) Adjusted EBITDA Reconciliation (Q1 2025) (in millions) | Metric | High Specification Rigs | Wireline Services | Processing Solutions and Ancillary Services | Other | Total | | :------------------------------------ | :---------------------- | :---------------- | :------------------------------------------ | :------ | :------ | | Net income (loss) | $12.0 | -$5.8 | $3.3 | -$8.9 | $0.6 | | Interest expense, net | — | — | — | $0.5 | $0.5 | | Income tax expense | — | — | — | -$0.1 | -$0.1 | | Depreciation and amortization | $5.4 | $2.7 | $2.2 | $0.3 | $10.6 | | **EBITDA** | **$17.4** | **-$3.1** | **$5.5** | **-$8.2** | **$11.6** | | Impairment of assets | — | — | — | $0.4 | $0.4 | | Equity based compensation | — | — | — | $1.5 | $1.5 | | Gain on disposal of property and equipment | — | — | — | $0.7 | $0.7 | | Severance and reorganization costs | — | $0.6 | — | — | $0.6 | | Acquisition related costs | — | $0.2 | $0.1 | $0.1 | $0.4 | | Legal fees and settlements | — | — | — | $0.3 | $0.3 | | **Adjusted EBITDA** | **$17.4** | **-$2.3** | **$5.6** | **-$5.2** | **$15.5** | Adjusted EBITDA Reconciliation (Q4 2024) (in millions) | Metric | High Specification Rigs | Wireline Services | Processing Solutions and Ancillary Services | Other | Total | | :------------------------------------ | :---------------------- | :---------------- | :------------------------------------------ | :------ | :------ | | Net income (loss) | $13.4 | -$3.0 | $5.5 | -$10.1 | $5.8 | | Interest expense, net | — | — | — | $0.5 | $0.5 | | Income tax expense | — | — | — | $2.6 | $2.6 | | Depreciation and amortization | $5.3 | $2.7 | $2.4 | $0.4 | $10.8 | | **EBITDA** | **$18.7** | **-$0.3** | **$7.9** | **-$6.6** | **$19.7** | | Equity based compensation | — | — | — | $1.8 | $1.8 | | Gain on disposal of property and equipment | — | — | — | -$0.5 | -$0.5 | | Severance and reorganization costs | $0.2 | $0.5 | $0.1 | — | $0.8 | | Acquisition related costs | $0.1 | — | — | — | $0.1 | | **Adjusted EBITDA** | **$19.0** | **$0.2** | **$8.0** | **-$5.3** | **$21.9** | Adjusted EBITDA Reconciliation (Q1 2024) (in millions) | Metric | High Specification Rigs | Wireline Services | Processing Solutions and Ancillary Services | Other | Total | | :------------------------------------ | :---------------------- | :---------------- | :------------------------------------------ | :------ | :------ | | Net income (loss) | $7.8 | -$2.9 | $0.5 | -$6.2 | -$0.8 | | Interest expense, net | — | — | — | $0.8 | $0.8 | | Income tax expense | — | — | — | -$0.5 | -$0.5 | | Depreciation and amortization | $5.6 | $3.1 | $2.0 | $0.5 | $11.2 | | **EBITDA** | **$13.4** | **$0.2** | **$2.5** | **-$5.4** | **$10.7** | | Equity based compensation | — | — | — | $1.2 | $1.2 | | Gain on disposal of property and equipment | — | — | — | -$1.3 | -$1.3 | | Acquisition related costs | $0.2 | — | — | $0.1 | $0.3 | | **Adjusted EBITDA** | **$13.6** | **$0.2** | **$2.5** | **-$5.4** | **$10.9** | [Free Cash Flow](index=14&type=section&id=Free%20Cash%20Flow) Free Cash Flow is defined as net cash provided by operating activities before the purchase of property and equipment. It is used to evaluate the company's ability to generate additional cash from operations but does not represent residual cash available for discretionary expenditures - **Free Cash Flow is defined as net cash provided by operating activities before the purchase of property and equipment**[3](index=3&type=chunk) - It is an **important measure for evaluating the ability to generate additional cash from business operations**[39](index=39&type=chunk) - **Free Cash Flow does not deduct payments for debt service, other obligations, or business acquisitions**, and thus is supplemental to the full statement of cash flows[39](index=39&type=chunk) Free Cash Flow Reconciliation (in millions) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net cash provided by operating activities | $10.6M | $12.0M | | Purchase of property and equipment | -$7.2M | -$6.5M | | **Free Cash Flow** | **$3.4M** | **$5.5M** | [Additional Information](index=6&type=section&id=Additional%20Information) This section provides details on the Q1 2025 conference call, company overview, cautionary statements regarding forward-looking information, and investor contact details [Conference Call Details](index=6&type=section&id=Conference%20Call) Ranger Energy Services, Inc. will host a conference call on April 30, 2025, to discuss Q1 2025 results, with details provided for dialing in or accessing the live webcast and replay - **Conference call for Q1 2025 results scheduled for April 30, 2025, at 9:00 a.m. Central Time**[23](index=23&type=chunk) - **Dial-in and webcast details are provided for participation**[23](index=23&type=chunk) [About Ranger Energy Services, Inc.](index=6&type=section&id=About%20Ranger%20Energy%20Services,%20Inc.) Ranger is a leading provider of high specification mobile rig well services, cased hole wireline services, and ancillary services in the U.S. oil and gas industry, supporting the entire well lifecycle - **Ranger is a major provider of high specification mobile rig well services, cased hole wireline services, and ancillary services in the U.S. oil and gas industry**[24](index=24&type=chunk) - **Services cover the entire well lifecycle**, including completion, production, maintenance, intervention, workover, and abandonment phases[24](index=24&type=chunk) [Cautionary Statement Concerning Forward-Looking Statements](index=6&type=section&id=Cautionary%20Statement%20Concerning%20Forward-Looking%20Statements) The press release contains forward-looking statements subject to risks and uncertainties, and actual results may differ materially from expectations. Readers are advised to consult SEC filings for detailed risk factors - **The press release contains forward-looking statements** regarding future operations, financial position, and strategy[25](index=25&type=chunk) - These statements are **subject to risks, uncertainties, and other factors that could cause actual results to differ materially**[25](index=25&type=chunk) - **Readers are directed to the company's SEC filings**, including the Annual Report on Form 10-K, for detailed risk factors[26](index=26&type=chunk) [Company Contact](index=7&type=section&id=Company%20Contact) Contact information for investor relations is provided, with Melissa Cougle as the Chief Financial Officer - **Investor relations contact: Melissa Cougle, CFO, at (713) 935-8900 or InvestorRelations@rangerenergy.com**[28](index=28&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated statements of operations, balance sheets, and cash flows for the relevant reporting periods [Statements of Operations](index=8&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) This section presents the unaudited condensed consolidated statements of operations for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, detailing revenue, operating expenses, and net income (loss) Unaudited Condensed Consolidated Statements of Operations (in millions, except share and per share amounts) | | Three Months Ended Dec 31, 2024 | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :------------------------------------------ | :------------------------------ | :------------------------------ | :------------------------------ | | **Revenue** | | | | | High Specification Rigs | $87.0 | $87.5 | $79.7 | | Wireline Services | $22.6 | $17.2 | $32.8 | | Processing Solutions and Ancillary Services | $33.5 | $30.5 | $24.4 | | **Total revenue** | **$143.1** | **$135.2** | **$136.9** | | **Operating expenses** | | | | | Cost of services | $116.8 | $115.4 | $120.8 | | General and administrative | $7.1 | $7.1 | $6.7 | | Depreciation and amortization | $10.8 | $10.6 | $11.2 | | Impairment of assets | — | $0.4 | — | | Gain on sale of assets | ($0.5) | $0.7 | ($1.3) | | **Total operating expenses** | **$134.2** | **$134.2** | **$137.4** | | **Operating income (loss)** | **$8.9** | **$1.0** | **($0.5)** | | Interest expense, net | $0.5 | $0.5 | $0.8 | | **Income (loss) before income tax** | **$8.4** | **$0.5** | **($1.3)** | | Income tax expense (benefit) | $2.6 | ($0.1) | ($0.5) | | **Net income** | **$5.8** | **$0.6** | **($0.8)** | | **Income (loss) per common share:** | | | | | Basic | $0.26 | $0.03 | ($0.04) | | Diluted | $0.25 | $0.03 | ($0.03) | | **Weighted average common shares outstanding:** | | | | | Basic | 22,250,468 | 22,308,855 | 22,738,286 | | Diluted | 22,920,235 | 23,111,467 | 22,922,284 | [Balance Sheets](index=9&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) This section provides the unaudited condensed consolidated balance sheets as of March 31, 2025, and December 31, 2024, detailing assets, liabilities, and stockholders' equity Unaudited Condensed Consolidated Balance Sheets (in millions, except share and per share amounts) | | March 31, 2025 | December 31, 2024 | | :------------------------------------------ | :--------------- | :------------------ | | **Assets** | | | | Cash and cash equivalents | $40.3 | $40.9 | | Accounts receivable, net | $67.1 | $68.4 | | Contract assets | $19.8 | $16.7 | | Inventory | $5.8 | $5.7 | | Prepaid expenses | $9.7 | $11.4 | | Assets held for sale | $0.8 | $0.8 | | **Total current assets** | **$143.5** | **$143.9** | | Property and equipment, net | $220.8 | $224.3 | | Intangible assets, net | $5.4 | $5.6 | | Operating leases, right-of-use assets | $6.0 | $7.0 | | Other assets | $0.8 | $0.8 | | **Total assets** | **$376.5** | **$381.6** | | **Liabilities and Stockholders' Equity** | | | | Accounts payable | $26.8 | $27.2 | | Accrued expenses | $25.8 | $28.2 | | Other financing liability, current portion | $0.7 | $0.7 | | Long-term debt, current portion | — | — | | Short-term lease liability | $8.7 | $8.7 | | Other current liabilities | $0.3 | $0.4 | | **Total current liabilities** | **$62.3** | **$65.2** | | Long-term lease liability | $13.4 | $14.1 | | Other financing liability | $10.1 | $10.3 | | Deferred tax liability | $18.1 | $18.2 | | **Total liabilities** | **$103.9** | **$107.8** | | **Stockholders' equity** | | | | Class A Common Stock | $0.3 | $0.3 | | Less: Class A Common Stock held in treasury | ($38.6) | ($38.6) | | Additional paid-in capital | $269.5 | $269.9 | | Retained earnings | $41.4 | $42.2 | | **Total controlling stockholders' equity** | **$272.6** | **$273.8** | | **Total liabilities and stockholders' equity** | **$376.5** | **$381.6** | [Statement of Cash Flows](index=10&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CASH%20FLOWS) This section presents the unaudited condensed consolidated statement of cash flows for the three months ended March 31, 2025, and March 31, 2024, outlining cash flows from operating, investing, and financing activities Unaudited Condensed Consolidated Statement of Cash Flows (in millions) | | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :------------------------------------------ | :------------------------------ | :------------------------------ | | **Cash Flows from Operating Activities** | | | | Net income (loss) | $0.6 | ($0.8) | | Depreciation and amortization | $10.6 | $11.2 | | Equity based compensation | $1.6 | $1.3 | | Gain on disposal of property and equipment | $0.7 | ($1.3) | | Impairment of assets | $0.4 | — | | Deferred income tax expense (benefit) | ($0.1) | ($0.5) | | Changes in operating assets and liabilities (net) | ($2.6) | $1.9 | | **Net cash provided by operating activities** | **$10.6** | **$12.0** | | **Cash Flows from Investing Activities** | | | | Purchase of property and equipment | ($7.2) | ($6.5) | | Proceeds from disposal of property and equipment | $1.1 | $0.8 | | **Net cash used in investing activities** | **($6.1)** | **($5.7)** | | **Cash Flows from Financing Activities** | | | | Borrowings under Revolving Credit Facility | $0.1 | $2.1 | | Principal payments on Revolving Credit Facility | ($0.1) | ($2.1) | | Principal payments on financing lease obligations | ($1.7) | ($1.3) | | Dividends paid to Class A Common Stock shareholders | ($1.3) | — | | Shares withheld for equity compensation | ($1.9) | ($0.9) | | Repurchase of Class A Common Stock | — | ($8.5) | | **Net cash used in financing activities** | **($5.1)** | **($10.9)** | | **Increase (decrease) in cash and cash equivalents** | **($0.6)** | **($4.6)** | | Cash and cash equivalents, Beginning of Period | $40.9 | $15.7 | | **Cash and cash equivalents, End of Period** | **$40.3** | **$11.1** |

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 ...