Ranger Energy Services(RNGR)

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Ranger Energy Services(RNGR) - 2024 Q2 - Quarterly Report
2024-07-30 20:44
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]
Ranger Energy Services(RNGR) - 2024 Q2 - Earnings Call Presentation
2024-07-30 15:10
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 ...
Ranger Energy Services(RNGR) - 2024 Q2 - Earnings Call Transcript
2024-07-30 15:10
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]
Ranger Energy (RNGR) Tops Q2 Earnings and Revenue Estimates
ZACKS· 2024-07-29 23:06
Core Viewpoint - Ranger Energy reported quarterly earnings of $0.21 per share, significantly exceeding the Zacks Consensus Estimate of $0.06 per share, although down from $0.24 per share a year ago [1][4] Financial Performance - The company posted revenues of $138.1 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 0.07%, but down from $163.2 million year-over-year [2] - This quarterly report represents an earnings surprise of 250%, contrasting with a previous loss of $0.03 per share [4] - The current consensus EPS estimate for the upcoming quarter is $0.14 on revenues of $142 million, and for the current fiscal year, it is $0.32 on revenues of $557 million [10] Stock Performance - Ranger Energy shares have increased approximately 12% since the beginning of the year, compared to a 14.5% gain for the S&P 500 [3] - The company has surpassed consensus revenue estimates three times over the last four quarters [2] Earnings Outlook - The earnings outlook for Ranger Energy is currently unfavorable, leading to a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [9] - The sustainability of the stock's immediate price movement will depend on management's commentary during the earnings call [5] Industry Context - The Oil and Gas - Field Services industry, to which Ranger Energy belongs, is currently ranked in the bottom 9% of over 250 Zacks industries, suggesting potential challenges ahead [11]
Ranger Energy Services(RNGR) - 2024 Q2 - Quarterly Results
2024-07-29 20:39
EXHIBIT 99.1 Ranger Energy Services, Inc. Announces Q2 2024 Results HOUSTON, TX--(July 29, 2024) - Ranger Energy Services, Inc. (NYSE: RNGR) ("Ranger" or the "Company") announced today its results for the second quarter ended June 30, 2024. Second Quarter 2024 Highlights "Free Cash Flow" is not presented in accordance with U.S. GAAP and should be considered in addition to, rather than as a substitute for, net income as a measure of our performance or net cash provided by operating activities as a measure of ...
Ranger Energy Services: A Compelling Buy With Insider Buying And Robust Financials
Seeking Alpha· 2024-07-20 08:52
| --- | --- | --- | |-------------------------------------------------------------|-------|-------------| | | | | | ProPetro Holding Corp. | | 1,150.6 | | Select Water Solutions, Inc. Oil States International, Inc. | | 940.2 384.5 | | KLX Energy Services Holdings, Inc. | | 57.6 | | Dril-Quip, Inc. | | 980.7 | | Mammoth Energy Services, Inc. | | 290.1 | | Solaris Oilfield Infrastructure, Inc. | | 210.4 | Despite a challenging Q1 2024, Ranger Energy Services Inc. (NYSE:RNGR) has a solid financial position, an ...
Ranger Energy Services(RNGR) - 2024 Q1 - Earnings Call Transcript
2024-05-07 17:22
Ranger Energy Services, Inc. (NYSE:RNGR) Q1 2024 Results Conference Call May 7, 2024 9:00 AM ET Company Participants Stuart Bodden - CEO Melissa Cougle - CFO Conference Call Participants Don Crist - Johnson Rice John Daniel - Daniel Energy Partners John Fichthorn - Dialectic Capital Operator Thank you, and welcome to Ranger Energy Services First Quarter of 2024 Results Conference Call. Ranger has issued a press release summarizing operating and financial results for the 3 months ended March 31, 2024. This p ...
Ranger Energy Services(RNGR) - 2024 Q1 - Quarterly Report
2024-05-07 10:40
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or (713) 935-8900 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-38183 RANGER ENERGY SERVICES, INC. ...
Ranger Energy Services(RNGR) - 2024 Q1 - Quarterly Results
2024-05-07 10:32
Ranger Energy Services, Inc. Announces Q1 2024 Results HOUSTON, TX--(May 7, 2024) - Ranger Energy Services, Inc. (NYSE: RNGR) ("Ranger" or the "Company") announced today its results for the first quarter ended March 31, 2024. First Quarter 2024 Highlights Management Comments Stuart Bodden, Ranger's Chief Executive Officer, commented, "This quarter's results presented Ranger with a unique set of challenges that adversely impacted multiple service lines. As mentioned in our year-end investor call, 2024 got of ...
Ranger Energy Services(RNGR) - 2023 Q4 - Annual Report
2024-03-05 22:31
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-38183 RANGER ENERGY SERVICES, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organ ...