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 ...

Financial Performance - Total revenue for Q1 2024 decreased by $20.6 million, or 13%, to $136.9 million from $157.5 million in Q1 2023[90] - High Specification Rigs revenue increased by $2.2 million, or 3%, to $79.7 million, with an average revenue per rig hour rising 4% to $718[90] - Wireline Services revenue decreased by $17.1 million, or 34%, to $32.8 million, attributed to a 47% decrease in completed stage counts to 3,400[91] - Processing Solutions and Ancillary Services revenue fell by $5.7 million, or 19%, to $24.4 million, primarily due to decreased activity in coil tubing and snubbing services[93] - Net loss for the three months ended March 31, 2024, decreased by $7.0 million, or 113%, to a loss of $0.8 million from a profit of $6.2 million in the same period of 2023, primarily due to reduced activity in Wireline Services and Processing Solutions[101] - Adjusted EBITDA decreased by $9.2 million to $10.9 million for the three months ended March 31, 2024, from $20.1 million in the prior year[108] - High Specification Rigs Adjusted EBITDA decreased by $3.8 million to $13.6 million for the three months ended March 31, 2024, from $17.4 million in the same period of 2023, due to increased service costs[108] - Wireline Services Adjusted EBITDA decreased by $4.0 million to $0.2 million for the three months ended March 31, 2024, from $4.2 million in the prior year, due to decreased operating activity[109] Cost Management - Cost of services decreased by $10.1 million, or 8%, to $120.8 million, with cost of services as a percentage of revenue increasing to 88% from 83%[94] - High Specification Rigs cost of services increased by $6.2 million to $66.3 million, with variable expenses notably rising[94] - Wireline Services cost of services decreased by $13.1 million, or 29%, to $32.6 million, but the cost as a percentage of revenue increased to 99%[95] - Processing Solutions and Ancillary Services cost of services decreased by $3.2 million, or 13%, to $21.9 million, with costs as a percentage of revenue rising to 90%[96] - General and administrative expenses decreased by $1.7 million, or 20%, to $6.7 million for the three months ended March 31, 2024, compared to $8.4 million for the same period in 2023, primarily due to reduced employee and legal costs[97] - Depreciation and amortization increased by $1.2 million, or 12%, to $11.2 million for the three months ended March 31, 2024, from $10.0 million in the prior year, driven by capital expenditures[98] - Net interest expense decreased by $0.4 million, or 33%, to $0.8 million for the three months ended March 31, 2024, from $1.2 million in the same period of 2023, due to reduced borrowings[99] - Income tax benefit for the three months ended March 31, 2024, was $0.5 million, a decrease of $2.3 million, or 128%, from a tax expense of $1.8 million in the prior year, attributed to increased net operating loss utilization[100] Liquidity and Capital Structure - Total liquidity as of March 31, 2024, was $66.5 million, consisting of $11.1 million in cash and $55.4 million available under the Wells Fargo Revolving Credit Facility[112] - Net cash provided by operating activities decreased by $5.4 million to $12.0 million for the three months ended March 31, 2024, compared to $17.4 million in the same period of 2023[113] - As of March 31, 2024, the company's working capital decreased to $58.5 million from $66.4 million as of December 31, 2023, primarily due to lower cash and accounts receivable balances[118] - The company has a total loan capacity of $58.6 million under the Wells Fargo Revolving Credit Facility, with $3.2 million in Letters of Credit open, leaving $55.4 million available for borrowings as of March 31, 2024[122] - The weighted average interest rate for borrowings under the Wells Fargo Revolving Credit Facility was approximately 7.2% for the three months ended March 31, 2024[122] Shareholder Returns and Market Outlook - The company announced a share repurchase program authorizing the purchase of up to $85.0 million in Class A Common Stock, with an additional $50.0 million approved on March 4, 2024[130] - The company declared a quarterly cash dividend of $0.05 per share on May 7, 2024, payable on May 31, 2024, to stockholders of record[131] - 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[78] - The company expects short to medium-term activity to vary due to consolidation in the energy industry but anticipates long-term preference from larger organizations[78] - 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, indicating potential market growth[134] Risk and Debt Management - The company recognized a loss of $2.4 million on the retirement of debt associated with the initiation of the Wells Fargo Revolving Credit Facility[125] - The company made principal payments of $0.6 million to the Secured Promissory Note for the three months ended March 31, 2023, and $6.2 million for the five months ended May 31, 2023[128] - The company has no material off-balance sheet arrangements as of the reporting date[133] - The top three trade receivable balances represented approximately 15%, 14%, and 7% of consolidated net accounts receivable as of March 31, 2024, indicating concentration risk[138]

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 ...

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 and Ancillary Services[20][24]. - The fleet consists of 402 high specification well service rigs, which are among the newest in the industry, with higher operating horsepower (450 HP or greater) and taller mast heights (102 feet or higher) than traditional rigs[28][29]. - The wireline services segment includes workovers, well maintenance, and production services, which are critical for sustaining oil and natural gas production[31][32]. - Hydraulic fracturing services are essential for the production of oil and natural gas, stimulating production from dense subsurface rock formations[66]. Customer Base and Revenue - In 2023, two customers accounted for approximately 10% each of the consolidated revenue, while the top five revenue-generating customers represented about 43% of the total revenue[42]. - The company has a diverse customer base, serving approximately 190 distinct customers in 2023, indicating a broad market reach[42]. - The top three trade net receivable balances represented 14%, 13%, and 7% of consolidated accounts receivable as of December 31, 2023[272]. - In the High Specification Rig segment, the top three net trade receivable balances represented 20%, 20%, and 12% of total net accounts receivable[272]. Regulatory Environment - The company operates under stringent environmental regulations, which may impose substantial liabilities for pollution resulting from operations[46]. - Increased compliance costs due to environmental regulations may not be passed on to customers, potentially affecting the company's financial condition[47]. - The company is subject to the federal Occupational Safety and Health Act (OSHA) and comparable state statutes, ensuring worker health and safety[48]. - The company may incur significant costs or liabilities associated with naturally occurring radioactive materials (NORM) in its operations[49]. - The company generates industrial wastes regulated as hazardous materials, which could lead to increased management and disposal costs if reclassified[52]. - The Clean Water Act imposes strict controls on pollutant discharges, with potential civil and criminal penalties for noncompliance[54]. - The Oil Pollution Act of 1990 holds responsible parties liable for oil cleanup costs and damages resulting from spills[55]. - The company’s operations are subject to increasing regulatory scrutiny regarding greenhouse gas emissions, which could adversely affect demand for its services[61]. - The company operates under various state and local environmental review and permitting requirements, which may be more stringent than federal laws[71]. - The company is subject to regulatory oversight by the DOT and various state agencies, which may affect operational costs[73]. - Any regulations that restrict hydraulic fracturing could adversely impact demand for the company's products and services[68]. - The company cannot predict the final scope of regulations that may apply to oil and gas operations on federal lands, which could affect business operations[69]. Financial Position - The company has no outstanding debt under the Wells Fargo Revolving Credit Facility as of December 31, 2023, with a weighted average interest rate of 7.0%[271]. - The market for the company's services is indirectly exposed to fluctuations in oil and natural gas prices, which could affect demand for services[273]. - The company does not currently hedge its indirect exposure to commodity price risk[273]. - Environmental compliance costs have historically not had a material adverse effect on the company's business, but future costs could be substantial[70]. Workforce - As of December 31, 2023, the company employed approximately 2,000 full-time and part-time employees, with additional independent contractors hired as needed[44]. Market Dynamics - The industry is highly cyclical, with demand for services driven by the level of drilling activity and influenced by global oil and natural gas prices[39]. - Seasonal weather conditions can adversely affect operations, particularly in regions like the Denver-Julesburg Basin and Bakken Shale, leading to potential revenue reductions[40]. - The company differentiates itself through technical expertise, equipment capacity, and a strong safety record, aiming to deliver high-quality services and operational efficiency[38].

Ranger Energy Services, Inc. (NYSE:RNGR) Q4 2023 Earnings Conference Call March 5, 2024 11:00 AM ET Company Participants Stuart Bodden – Chief Executive Officer Melissa Cougle – Chief Financial Officer Conference Call Participants Luke Lemoine – Piper Sandler Don Crist – Johnson Rice Derek Podhaizer – Barclays John Daniel – Daniel Energy Partners William Kim – Custodio Asset Management Operator Thank you, and welcome to Ranger Energy Services Fourth Quarter and Full Year 2023 Results Conference Call. Ranger ...

Industry and Market Data: This presentation has been prepared by Ranger and includes market data and other statistical information from third-party sources, including independent industry publications, government publications or other published independent sources. Although Ranger believes these third-party sources are reliable as of their respective dates, Management has not independently verified the accuracy or completeness of this information. Some data are also based on the management estimates and app ...

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 September 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-38183 RANGER ENERGY SERVICES, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) Delaw ...

Financial Data and Key Metrics Changes - The company reported net revenue of $164.4 million for Q3 2023, marking a 1% increase from Q2 2023 and the second highest revenue quarter in its history [57][84] - Year-to-date revenue reached $485.1 million, a 7% increase from the prior year [85] - Net income for Q3 was $9.4 million, significantly up from $6.1 million in Q2 2023, with year-to-date net income at $21.7 million, tripling the $7.5 million reported in the same period of 2022 [85][58] - Adjusted EBITDA for Q3 was $24 million, a 10% increase from Q2, with a year-to-date adjusted EBITDA of $66 million, reflecting a 14% increase from the prior year [86][58] Business Line Data and Key Metrics Changes - The High Specification Rigs business remained stable, with rig hours holding steady and slight pricing improvements despite unexpected white space in the schedule [59] - The North region of the Wireline business improved margins significantly, while the South region faced competition and price destruction, prompting a strategic shift towards production-oriented work [38][39] - The Plugging and Abandoning (P&A) business grew by double digits, indicating a successful focus on this segment [40] Market Data and Key Metrics Changes - The overall US rig count has dropped by more than 15% since the end of the previous year, yet the company has managed to maintain revenue levels through a production-focused business model [110] - The company anticipates that the rig count is close to its bottom and expects increased activity levels in 2024 as budgets reset [42] Company Strategy and Development Direction - The company is focusing on consolidating its service provider base, which is seen as a positive trend for future growth and market share [43][32] - There is a strategic emphasis on high-quality customers and enhancing service reliability, which is expected to lead to better pricing and margins [56][32] - The company is actively pursuing acquisition opportunities while maintaining a disciplined approach to capital expenditures [67] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business model despite current market challenges, highlighting operational efficiency and flexibility [110][92] - The company is optimistic about the future, with early conversations with customers indicating a constructive outlook for 2024 [42][54] - Management noted that the recent consolidation in the E&P sector presents opportunities for high-quality service providers to gain market share [43] Other Important Information - The company initiated a quarterly dividend of $0.05 per share and has repurchased approximately $8.6 million worth of shares year-to-date [87][76] - The company has a liquidity of $70 million and ended the quarter with approximately $10.3 million in debt, indicating strong financial health [69] Q&A Session Summary Question: What are the incremental rig opportunities? - Management indicated that there will be a combination of transitioning rigs from existing customers and some incremental growth as budgets play out [27] Question: Are there any trends in workovers or artificial lift installations? - Management noted that there hasn't been a significant trend but emphasized that continuity of crews is driving efficiency [127] Question: What is the state of the labor market in the industry? - The labor market remains tight but is better than in 2023, with confidence in finding necessary personnel [27][165] Question: How does the company view intrinsic value for share repurchases? - The company has developed a multi-year model to assess intrinsic value and is focused on returning capital to shareholders [153][154] Question: What is the impact of the recent contract signed with a major operator? - The contract spans multiple basins and is expected to provide significant market share, enhancing confidence in the 2024 plan [129][131]

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 June 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-38183 RANGER ENERGY SERVICES, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) Delaware 8 ...

Revenue Growth - Revenue for the three months ended March 31, 2023 increased by $33.9 million, or 27%, to $157.5 million from $123.6 million for the same period in 2022[86]. - High Specification Rig revenue increased by $12.6 million, or 19%, to $77.5 million, with average revenue per rig hour rising 19% to $689[86]. - Wireline Services revenue rose by $11.3 million, or 29%, to $49.9 million, despite a 14% decrease in completed stage counts to 6,400[87]. - Processing Solutions and Ancillary Services revenue increased by $10.0 million, or 50%, to $30.1 million, driven by coil tubing and equipment rentals[88]. Cost and Expenses - Total cost of services increased by $22.9 million, or 21%, to $130.9 million, with cost of services as a percentage of revenue decreasing from 87% to 83%[89][90]. - General and administrative expenses decreased by $1.8 million, or 18%, to $8.4 million, primarily due to reduced accounting and legal expenses[93]. - Depreciation and amortization decreased by $1.6 million, or 14%, to $10.0 million, attributed to assets disposed of in 2022[94]. - Interest expense decreased by $0.9 million, or 43%, to $1.2 million, due to a reduced principal balance on credit facilities[95]. - Income tax expense increased by $3.4 million, or 213%, to $1.8 million, reflecting increased income over two consecutive quarters[96]. Adjusted EBITDA - Adjusted EBITDA for the three months ended March 31, 2023 increased by $10.5 million to $20.1 million from $9.6 million for the same period in 2022[101]. - High Specification Rigs Adjusted EBITDA rose by $3.3 million to $17.4 million, driven by a revenue increase of $12.6 million, partially offset by a $9.3 million rise in cost of services[101]. - Wireline Services Adjusted EBITDA improved by $6.0 million to $4.2 million from a loss of $1.8 million, due to an increase in revenue of $11.3 million, offset by a $5.3 million rise in cost of services[102]. - Processing Solutions and Ancillary Services Adjusted EBITDA increased by $1.7 million to $5.0 million, supported by a revenue increase of $10.0 million, countered by an $8.3 million rise in cost of services[103]. Liquidity and Cash Flow - Total liquidity as of March 31, 2023 was $68.4 million, comprising $14.4 million in cash and $54.0 million available under the Revolving Credit Facility[105]. - Net cash provided by operating activities was $17.4 million for the three months ended March 31, 2023, a $29.5 million increase from cash used of $12.1 million in the same period of 2022[108]. - Working capital increased to $73.1 million as of March 31, 2023, up from $65.6 million as of December 31, 2022, attributed to a higher cash balance and contract assets[112]. - Net cash used in investing activities was $1.1 million for the three months ended March 31, 2023, a decrease of $6.1 million compared to cash provided of $5.0 million in the same period of 2022[109]. - Net cash used in financing activities was $5.6 million for the three months ended March 31, 2023, a decrease of $15.9 million from cash provided of $10.3 million in the same period of 2022[110]. Debt and Financing - The Company maintained compliance with the covenants of its debt agreements as of March 31, 2023[113]. - The total loan capacity under the Revolving Credit Facility was $55.6 million, with $54.0 million available for borrowings as of March 31, 2023[117]. - The weighted average interest rate for the Revolving Credit Facility was approximately 8.9% for the three months ended March 31, 2023[117]. - The Company had outstanding borrowings of $9.8 million under the M&E Term Loan Facility, with a weighted average interest rate of 12.6% for the three months ended March 31, 2023[118]. - The aggregate principal balance outstanding under the Secured Promissory Note was $5.6 million as of March 31, 2023, bearing interest at a rate of 8.5% per annum[120]. Shareholder Returns - The Board of Directors announced a $35.0 million share repurchase program, aiming to return at least 25% of annual cash flows to investors going forward[122]. Market Outlook - The International Energy Agency projects global oil demand to rise by 1.9 million barrels per day in 2023, with U.S. as the leading source of supply growth[75]. - The International Energy Agency projected global oil demand to rise by 1.9 million barrels per day in 2023, with commodity pricing expected to remain around $80 to $85 per barrel[125]. - The Company does not currently hedge its indirect exposure to commodity price risk, which could impact demand for its services[129]. - The geopolitical events, including the situation in Ukraine, continue to affect commodity prices and may impact the Company's earnings and cash flows[126]. Trade Receivables - The top three trade receivable balances represented approximately 12%, 9%, and 7% of consolidated net accounts receivable as of March 31, 2023[128]. - A hypothetical 1.0% increase or decrease in the weighted average interest rate would affect interest expense by less than $0.2 million per year[127].