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]

Financial Data and Key Metrics Changes - Revenue for Q3 2024 was $153 million, an 11% increase from Q2 and a 7% decrease year-over-year due to Wireline completion activity declines [33] - Net income for the quarter was $8.7 million, resulting in earnings per share of $0.39, an 86% improvement from the prior quarter [34] - Adjusted EBITDA for the quarter was $25.1 million, a 20% increase from $21 million in Q2 and a 5% increase over the prior year period [36] - Gross margin was 16.5%, nearly matching the prior peak level [37] Business Line Data and Key Metrics Changes - High Specification Rigs achieved record revenues of $86.7 million, a 5% increase from the previous quarter and a 9% increase year-over-year [37] - Ancillary Services generated revenues of $36 million, a 17% increase from Q2 and a 13% increase year-over-year [38] - Coiled tubing revenue increased by 33% quarter-over-quarter and adjusted EBITDA increased by 52% [39] - Wireline services saw revenue grow 24% from Q2, reaching $30.3 million, although year-over-year it was down 43% due to Wireline completion activity declines [41] Market Data and Key Metrics Changes - The drilling rig count has declined, and completion activity has decreased, contributing to challenging market conditions since early 2023 [7] - Despite these conditions, the company’s financial performance has been more resilient than the broader Oilfield Services (OFS) complex [7] Company Strategy and Development Direction - The company is focused on maintaining a strong balance sheet to provide flexibility for future opportunities and consolidation in a fragmented industry [21] - The strategy includes returning over 80% of free cash flow to shareholders through dividends and share repurchases [23] - The company aims to continue growing its market share by partnering with high-quality customers and investing in quality assets and personnel [11][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving year-over-year growth in 2025, driven by strong customer demand across multiple service lines [51] - The company believes it has likely found the bottom in Wireline services and anticipates improvement moving into spring [51] - Management highlighted that consolidation in the industry has been a net benefit, allowing for more potential work [50] Other Important Information - The company has returned over $40 million to shareholders through share repurchases and dividends over the past year [46] - The company maintains a net debt zero position, providing liquidity of $86.1 million at the end of the quarter [42] Q&A Session Summary Question: Industry consolidation and growth strategy - Management highlighted that consolidation has been beneficial, allowing for partnerships with the best customers and increased potential work [50] Question: Confidence in growth for 2025 - Management indicated confidence in growth across all service lines, with strong customer conversations supporting this outlook [51] Question: Margin improvement areas and acquisition opportunities - Management discussed ongoing efforts to improve margins through operational efficiencies and mentioned that M&A could provide further benefits [54][55] Question: Allocation of growth CapEx for 2025 - Management indicated that growth CapEx would likely focus on well service rigs and additional equipment to meet customer demand [57]

Financial Performance - Revenue for Q3 2024 was $153.0 million, an 11% increase from $138.1 million in Q2 2024, but a 7% decrease from $164.4 million in Q3 2023[2] - Net income for Q3 2024 was $8.7 million, or $0.39 per fully diluted share, an 85% increase from $4.7 million in Q2 2024, but a decrease from $9.4 million in Q3 2023[2] - Adjusted EBITDA for Q3 2024 was $25.1 million, a 20% increase from $21.0 million in Q2 2024 and a 5% increase from $24.0 million in Q3 2023[2] - Operating income for the three months ended September 30, 2024, was $12.9 million, down from $11.7 million in the same period of 2023, reflecting a decrease of 10.3%[30] - Net income for the three months ended September 30, 2024, was $8.7 million, compared to $9.4 million for the same period in 2023, representing a decline of 7.4%[30] - Basic earnings per share for the three months ended September 30, 2024, was $0.39, down from $0.38 in the same period of 2023[30] - Net income for the nine months ended September 30, 2024, was $12.6 million, a decrease of 41.5% compared to $21.7 million in the same period of 2023[32] Segment Performance - High Specification Rigs segment revenue was $86.7 million in Q3 2024, an increase of $4.0 million from Q2 2024 and $7.5 million from Q3 2023[12] - Wireline Services segment revenue was $30.3 million in Q3 2024, a 24% increase from $24.5 million in Q2 2024, but a 43% decrease from $53.2 million in Q3 2023[14] - Processing Solutions and Ancillary Services segment revenue was $36.0 million in Q3 2024, a 17% increase from $30.9 million in Q2 2024 and a 13% increase from $32.0 million in Q3 2023[17] - Net income for the High Specification Rigs segment was $33.4 million, while the total net income was $12.6 million, compared to a loss of $27.6 million in the previous period[39] - Adjusted EBITDA for the High Specification Rigs segment was $51.5 million, with a total adjusted EBITDA of $57.0 million, reflecting a significant increase from the previous period[39] Cash Flow and Capital Management - Free Cash Flow for Q3 2024 was $10.8 million, with year-to-date Free Cash Flow of $23.1 million[2] - The company maintained zero net debt and returned over 81% of Free Cash Flow to shareholders year-to-date through dividends and share buybacks[6] - Year-to-date capital expenditures were $28.7 million, with approximately $10 million allocated toward growth capital expenditures for modern equipment and technology updates[20] - The company paid dividends of $3.4 million to Class A Common Stock shareholders, an increase from $1.2 million in the same period of 2023[32] - Free Cash Flow for the three months ended September 30, 2024, was $10.8 million, compared to a negative $2.8 million in the same period last year[42] - Free Cash Flow conversion as a percentage of EBITDA was 43% for the latest quarter, compared to a negative 12% in the previous year[42] Balance Sheet and Assets - Total current assets as of September 30, 2024, were $132.7 million, a slight decrease from $135.4 million as of December 31, 2023[31] - Total liabilities as of September 30, 2024, were $106.3 million, compared to $106.2 million as of December 31, 2023, indicating a marginal increase[31] - Retained earnings increased to $37.5 million as of September 30, 2024, up from $28.4 million as of December 31, 2023[31] - Cash and cash equivalents as of September 30, 2024, were $14.8 million, a decrease from $15.7 million as of December 31, 2023[31] - The company’s total assets as of September 30, 2024, were $373.9 million, slightly down from $378.0 million as of December 31, 2023[31] Expenses and Other Financial Metrics - The company reported a total cost of services of $122.0 million for the three months ended September 30, 2024, down from $134.8 million in the same period of 2023, a decrease of 9.9%[30] - The company incurred depreciation and amortization expenses of $33.3 million for the nine months ended September 30, 2024, up from $29.3 million in 2023[32] - The company reported a depreciation and amortization expense of $33.3 million, with $16.9 million attributed to High Specification Rigs[39] - Interest expense for the total was $2.1 million, with no interest expense reported for the High Specification Rigs segment[39] - The total income tax expense was $5.0 million, with no tax expense reported for the High Specification Rigs segment[39] - The company reported a gain on disposal of property and equipment amounting to a loss of $1.7 million[39]

Core Viewpoint - Ranger Energy (RNGR) shows a significantly improving earnings outlook, making it a solid investment choice as analysts continue to raise their earnings estimates for the company [1][2]. Current-Quarter Estimate Revisions - The expected earnings for the current quarter are $0.28 per share, reflecting a year-over-year decrease of 26.32% - Over the past 30 days, the Zacks Consensus Estimate for Ranger Energy has increased by 100%, with one estimate moving higher and no negative revisions [4]. Current-Year Estimate Revisions - For the full year, the expected earnings are $0.77 per share, indicating a year-over-year decline of 18.95% - The consensus estimate has seen a significant increase of 140.63% over the past month, with one estimate moving higher and no negative revisions [5]. Favorable Zacks Rank - The positive estimate revisions have led Ranger Energy to achieve a Zacks Rank 2 (Buy), indicating strong potential for outperformance compared to the S&P 500 - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have historically outperformed the market [6]. Bottom Line - Strong estimate revisions have resulted in a 5.7% increase in Ranger Energy's stock price over the past four weeks, suggesting further upside potential and making it a candidate for portfolio addition [7].

Core Viewpoint - Ranger Energy Services (RNGR) is identified as a strong value stock, currently holding a Zacks Rank of 2 (Buy) and a Value grade of A, indicating its potential for investment [2]. Valuation Metrics - RNGR has a Price-to-Book (P/B) ratio of 1, which is favorable compared to the industry average P/B of 2.24. Over the past year, RNGR's P/B has fluctuated between 0.81 and 1.29, with a median of 0.92 [3]. - The Price-to-Sales (P/S) ratio for RNGR is 0.46, significantly lower than the industry's average P/S of 0.92, suggesting that RNGR is undervalued based on sales performance [4]. - RNGR's Price-to-Cash Flow (P/CF) ratio stands at 4.50, which is also lower than the industry average P/CF of 7.76. The P/CF for RNGR has ranged from 3.51 to 5.05 over the past year, with a median of 4.13 [5]. Investment Outlook - The combination of the aforementioned valuation metrics indicates that Ranger Energy Services is likely undervalued, and its strong earnings outlook positions it as one of the market's strongest value stocks [6].

Revenue Performance - Revenue for Q2 2024 decreased by $25.1 million, or 15%, to $138.1 million from $163.2 million in Q2 2023[86] - High Specification Rigs revenue increased by $5.1 million, or 7%, to $82.7 million, driven by improved pricing and a 6% increase in average revenue per rig hour to $732[86] - Wireline Services revenue decreased by $30.0 million, or 55%, to $24.5 million, primarily due to a 77% decrease in completed stage counts to 1,700[87] - Total revenue for the six months ended June 30, 2024 decreased by $45.7 million, or 14%, to $275.0 million from $320.7 million for the same period in 2023[99] - High Specification Rig revenue for the six months ended June 30, 2024 increased by $7.3 million, or 5%, to $162.4 million, with an average revenue per rig hour increase of 5% to $725[99] - Wireline Services revenue for the six months ended June 30, 2024 decreased by $47.1 million, or 45%, to $57.3 million, attributed to a 63% decrease in completed stage counts[100] - Processing Solutions and Ancillary Services revenue for the six months ended June 30, 2024 decreased by $5.9 million, or 10%, to $55.3 million, primarily due to declines in coil tubing and snubbing services[101] Income and Expenses - Operating income for Q2 2024 was $7.3 million, down from $11.4 million in Q2 2023, reflecting a decrease of $4.1 million[86] - The company reported a net income of $4.7 million for Q2 2024, down from $6.1 million in Q2 2023[86] - Net income for the six months ended June 30, 2024 decreased by $8.4 million, or 68%, to $3.9 million from $12.3 million for the same period in 2023, primarily driven by reduced activity in Wireline Services and Processing Solutions segments[110] - General and administrative expenses decreased by $0.4 million, or 5%, to $6.9 million, attributed to reduced employee costs[93] - Total operating expenses for the six months ended June 30, 2024 decreased by $31.9 million, or 11%, to $268.2 million from $300.1 million for the same period in 2023[99] - Interest expense, net for the six months ended June 30, 2024 decreased by $0.7 million, or 33%, to $1.4 million from $2.1 million for the same period in 2023[108] - Income tax expense for the six months ended June 30, 2024 decreased by $2.3 million, or 61%, to $1.5 million from $3.8 million for the same period in 2023[109] - General and administrative expenses for the six months ended June 30, 2024 decreased by $2.1 million, or 13%, to $13.6 million from $15.7 million[106] Adjusted EBITDA - Adjusted EBITDA for the three months ended June 30, 2024, decreased by $0.9 million to $21.0 million from $21.9 million for the same period in 2023[117] - High Specification Rigs Adjusted EBITDA increased by $3.1 million to $18.7 million for the three months ended June 30, 2024, driven by a revenue increase of $5.1 million[117] - Wireline Services Adjusted EBITDA decreased by $5.3 million to $0.4 million due to a revenue decline of $30.0 million[118] - Processing Solutions and Ancillary Services Adjusted EBITDA increased by $1.7 million to $7.3 million, attributed to a decrease in cost of services of $1.8 million[119] - For the six months ended June 30, 2024, net income was $19.6 million, compared to $23.4 million for the same period in 2023[122] - Adjusted EBITDA for the six months ended June 30, 2024, was $32.3 million, compared to $33.0 million for the same period in 2023[122] - High Specification Rigs Adjusted EBITDA decreased by $0.7 million to $32.3 million, primarily due to reduced operating levels and elevated labor costs[124] - Wireline Services Adjusted EBITDA decreased by $9.3 million to $0.6 million, primarily due to significant decreases in operating activity within the completions service line[125] - Processing Solutions and Ancillary Services Adjusted EBITDA decreased by $0.8 million to $9.8 million, primarily due to decreased coil tubing revenue[126] Cash Flow and Liquidity - Net cash provided by operating activities decreased by $6.8 million to $34.1 million for the six months ended June 30, 2024 compared to $40.9 million for the same period in 2023[130] - Net cash used in investing activities increased by $12.1 million to $20.3 million for the six months ended June 30, 2024 compared to $8.2 million for the same period in 2023[132] - Total liquidity as of June 30, 2024 was $72.2 million, consisting of $8.7 million in cash and $63.5 million available under the Wells Fargo Revolving Credit Facility[128] - The Company had a Fixed Charge Coverage Ratio of 0.8 as of June 30, 2024, below the required minimum of 1.0[136] Shareholder Actions - The Company announced a share repurchase program authorizing the purchase of up to $85.0 million of Class A Common Stock[143] - The Company paid dividend distributions totaling $1.1 million to stockholders on April 5, 2024, and May 31, 2024[145] Market Outlook - The company anticipates stable demand for services due to OPEC+ production cuts and projected oil demand increases of 2.25 million barrels per day in 2024[75] - The company expects varied short to medium-term activity levels due to consolidation in the energy industry, but long-term prospects remain favorable[75] - OPEC+ expects oil demand to rise by approximately 2.25 million barrels per day in 2024 and by 1.85 million barrels per day in 2025[148] Risk Factors - Commodity price fluctuations are highly uncertain and could materially impact earnings, cash flows, and financial condition[150] - Geopolitical events, particularly regarding Russia and China, are expected to impact the macroeconomic backdrop of the industry[149] - Recent events in the Middle East have contributed to further uncertainty and risk to global stability[149] - The company does not currently intend to hedge its indirect exposure to commodity price risk[153] Trade Receivables - The top three trade receivable balances represented approximately 19%, 13%, and 8% of consolidated net accounts receivable as of June 30, 2024[152] - The top three trade receivable balances in the High Specification Rig segment represented 25%, 18%, and 13% of total net accounts receivable[152] - The majority of trade receivables have payment terms of 30 days or less, indicating a short credit cycle[152] - A hypothetical 1.0% increase or decrease in the weighted average interest rate would increase or decrease interest expense by less than $0.1 million per year[151] - The company has no borrowings under the Wells Fargo Revolving Credit Facility as of June 30, 2024[151]

Processing Solutions & Ancillary Services Segment Highlights $5.1 $10.5 $6.6 $5.0 $5.6 $6.5 $5.3 $2.5 $7.3 18.1% 28.6% 19.8% 16.8% 17.8% 20.5% 16.9% 10.2% 23.6% ▪ Increased revenue in Q2 by 27% over Q1 and nearly tripled adjusted EBITDA to $7.2 million ▪ Rentals performance has continued to be resilient through market challenges over the past year • Exposure to operators across major basins allows for strategic deployment in response to changes in activity $85.1 $69.9 $69.1 $66.5 2Q23 3Q23 4Q23 1Q24 TTM Ret ...

Financial Data and Key Metrics Changes - Total company revenue for Q2 2024 was $138.1 million, a slight increase from Q1 2024 but down 15% year-over-year [25][14] - Adjusted EBITDA was $21 million, nearly double the $10.9 million from Q1 2024, with a consolidated EBITDA margin of 15.1%, the highest in nearly two years [28][15] - Net income rebounded to $4.7 million or $0.21 per share from a net loss of $800,000 in Q1 2024 [26] Business Line Data and Key Metrics Changes - High Specification Rig revenue reached a record $82.7 million, a 4% increase from Q1 2024 and a 7% increase year-over-year [29] - Ancillary Services segment revenue was $30.9 million, a 27% increase over Q1 2024, while remaining flat year-over-year [31] - Wireline Services segment revenue was $24.5 million, down 25% from Q1 2024 and down 55% year-over-year, with stage counts down 77% [32] Market Data and Key Metrics Changes - The US onshore rig count declined by over 20% over the past 12 months, impacting overall market conditions [3] - Despite market challenges, several service lines showed year-over-year improvement, particularly in P&A and gas processing [3] Company Strategy and Development Direction - The company is focused on maximizing cash flow conversion, growing through acquisition, maintaining a strong balance sheet, and returning capital to shareholders through dividends and share repurchases [37] - Ranger is strategically pivoting towards production-focused wireline work, which has shown encouraging growth [33][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's earnings potential and highlighted the importance of strong customer relationships in navigating market challenges [13][11] - The third quarter is expected to show modest growth compared to Q2 2024, driven by seasonal activity and continued demand from large customers [49][36] Other Important Information - The company has repurchased nearly 1.4 million shares in 2024, totaling approximately 14% of outstanding shares as of June 30 [5][43] - Cash from operating activities for the year-to-date was $34.1 million, with capital expenditures front-loaded [40] Q&A Session Summary Question: Customer behavior and market share - Management noted that consolidation trends are helping Ranger gain market share, with increased demand from large customers continuing into Q3 [49] Question: Wireline segment reorganization and margin recovery - Management discussed restructuring efforts, including headcount reductions and reorienting assets towards production, with hopes of margins rebounding to historical levels [50][51] Question: M&A opportunities and market valuations - Management is exploring M&A opportunities but remains focused on existing service lines for consolidation, while noting that bid/ask spreads are narrowing [53][54] Question: Long-term contracts and vendor consolidation - Management confirmed ongoing discussions for long-term contracts and noted that larger customers are looking to reduce their vendor lists, creating opportunities for Ranger [61]