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]

Financial Performance - The company's consolidated adjusted EBITDA for 2024 was $78.9 million, with an adjusted EBITDA margin of 13.8%[5,6,8] - Full year 2024 revenue was $571.1 million[5,8] - Free cash flow for 2024 was $50.4 million[8,12] - Q4 2024 revenue was $143.1 million, with an adjusted EBITDA of $21.9 million and an adjusted EBITDA margin of 15.3%[14,16] - Q4 2024 free cash flow was $27.3 million[12,16] Segment Highlights - High Specification Rigs business experienced 7% year-over-year growth in core business[9] - High-Specification Rigs segment Q4 2024 Adjusted EBITDA increased 23% over the prior year's quarter[21] - Processing Solutions & Ancillary Services segment achieved a full year 2024 Adjusted EBITDA margin of 21.3%[27] - Wireline Services segment realized 11% year-over-year revenue growth in Production Wireline[32] Shareholder Returns - The company announced a 20% increase to the base dividend[12] - $20 million, representing 40% of the $50.4 million in 2024 Free Cash Flow, was returned to shareholders[12] - The company repurchased 1,520,000 shares during 2024 for $15.5 million at an average price of $10.11 per share[12]

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]