Ranger Energy Services(RNGR)

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Ranger Energy Services(RNGR) - 2019 Q2 - Quarterly Report
2019-07-26 21:07
PART I – FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The unaudited interim financial statements for H1 2019 show total revenues of $172.6 million, a net income of $5.4 million, and total assets of $317.9 million, supported by $14.2 million in operating cash flow [Unaudited Interim Condensed Consolidated Balance Sheets](index=3&type=section&id=Unaudited%20Interim%20Condensed%20Consolidated%20Balance%20Sheets) This section presents the company's financial position, detailing assets, liabilities, and equity as of June 30, 2019, and December 31, 2018 Consolidated Balance Sheet Highlights (in millions) | Account | June 30, 2019 (in millions) | December 31, 2018 (in millions) | | :--- | :--- | :--- | | **Total current assets** | $73.1 | $61.1 | | Property and equipment, net | $227.7 | $229.8 | | **Total assets** | **$317.9** | **$302.5** | | **Total current liabilities** | $57.9 | $58.9 | | Long-term debt, net | $47.8 | $44.7 | | **Total liabilities** | **$115.8** | **$110.5** | | **Total stockholders' equity** | **$202.1** | **$192.0** | [Unaudited Interim Condensed Consolidated Statements of Operations](index=5&type=section&id=Unaudited%20Interim%20Condensed%20Consolidated%20Statements%20of%20Operations) This section details the company's revenues, expenses, and net income (loss) for the three and six months ended June 30, 2019 and 2018 Consolidated Statements of Operations Highlights (in millions) | Metric | Q2 2019 (in millions) | Q2 2018 (in millions) | Six Months 2019 (in millions) | Six Months 2018 (in millions) | | :--- | :--- | :--- | :--- | :--- | | **Total revenues** | **$84.3** | **$73.1** | **$172.6** | **$135.7** | | Operating income (loss) | $4.0 | $1.0 | $9.2 | $(9.8) | | **Net income (loss)** | **$1.8** | **$(1.2)** | **$5.4** | **$(11.5)** | | Diluted EPS | $0.11 | $(0.08) | $0.32 | $(0.76) | - For the six months ended June 30, 2019, revenue from Completion and other services grew significantly to **$97.9 million** from **$52.9 million** year-over-year, while High specification rigs revenue declined to **$64.8 million** from **$75.9 million**[9](index=9&type=chunk) [Unaudited Interim Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Unaudited%20Interim%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section outlines the company's cash inflows and outflows from operating, investing, and financing activities for the six months ended June 30, 2019 and 2018 Consolidated Statements of Cash Flows Highlights (in millions) | Cash Flow Activity | Six Months Ended June 30, 2019 (in millions) | Six Months Ended June 30, 2018 (in millions) | | :--- | :--- | :--- | | Net cash provided by operating activities | $14.2 | $12.1 | | Net cash used in investing activities | $(15.5) | $(34.5) | | Net cash provided by financing activities | $0.4 | $27.6 | | **Net change in cash** | **$(0.9)** | **$5.2** | - Cash used in investing activities decreased significantly year-over-year, primarily due to a reduction in the purchase of property, plant and equipment, which fell from **$34.1 million** in the first half of 2018 to **$16.0 million** in the first half of 2019[12](index=12&type=chunk) [Notes to Unaudited Interim Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Interim%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the interim condensed consolidated financial statements, including accounting policies and significant transactions - Effective January 1, 2019, the Company adopted the new lease accounting standard (ASU 2016-02), resulting in the recognition of an operating lease right-of-use asset and corresponding liability of **$8.3 million**[24](index=24&type=chunk)[27](index=27&type=chunk) - As of June 30, 2019, total debt stood at **$63.6 million**, composed of the Wells Fargo Credit Facility (**$25.8 million**), Encina Master Financing Agreement (**$32.0 million**), and ESCO Notes Payable (**$5.8 million**)[41](index=41&type=chunk) - For the six months ended June 30, 2019, two customers, EOG Resources and Concho Resources, Inc., accounted for **17%** and **14%** of total revenues, respectively, indicating significant customer concentration[61](index=61&type=chunk) - In June 2019, the Board of Directors approved a share repurchase program, authorizing the purchase of up to **10%** of outstanding Class A Common Stock held by non-affiliates, not to exceed **580,000 shares** or **$5.0 million**. No shares were repurchased during the quarter[60](index=60&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes Q2 2019 revenue growth to Completion and Other Services, offsetting High Specification Rigs decline, leading to improved profitability and sufficient liquidity [Results of Operations](index=27&type=section&id=Results%20of%20Operations) This section analyzes the company's financial performance, focusing on revenue drivers, segment contributions, and profitability metrics for the reported periods Q2 2019 vs Q2 2018 Segment Revenue (in millions) | Segment | Q2 2019 (in millions) | Q2 2018 (in millions) | Change ($ in millions) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | High Specification Rigs | $33.1 | $39.6 | $(6.5) | (16)% | | Completion and Other Services | $46.3 | $29.5 | $16.8 | 57% | | Processing Solutions | $4.9 | $4.0 | $0.9 | 23% | | **Total revenues** | **$84.3** | **$73.1** | **$11.2** | **15%** | - The **57%** revenue increase in Completion and Other Services was primarily driven by the wireline business, which accounted for **$13.6 million (81%)** of the increase, supported by an **86%** increase in the wireline unit count year-over-year[109](index=109&type=chunk) - High Specification Rig utilization decreased, with rig hours falling to **62,200** in Q2 2019 from **76,200** in Q2 2018. This was partially offset by an increase in average revenue per rig hour to **$530** from **$513**[102](index=102&type=chunk) Adjusted EBITDA Reconciliation (in millions) | Metric | Q2 2019 (in millions) | Q2 2018 (in millions) | | :--- | :--- | :--- | | Net income (loss) | $1.8 | $(1.2) | | Adjustments (Interest, Tax, D&A, etc.) | $11.2 | $10.8 | | **Adjusted EBITDA** | **$13.0** | **$9.6** | [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's cash position, credit facilities, working capital, and ability to meet its short-term and long-term financial obligations - As of June 30, 2019, the company had **$1.7 million** in cash and **$14.0 million** available under its **$50.0 million** Credit Facility. Management believes these sources are sufficient to meet liquidity requirements for at least the next 12 months[147](index=147&type=chunk)[156](index=156&type=chunk) - The company is in a dispute regarding **$5.8 million** in ESCO Notes Payable and has stopped payments pending resolution of indemnification claims for breach of contract[155](index=155&type=chunk) - Working capital increased to **$15.2 million** as of June 30, 2019, from **$2.2 million** as of December 31, 2018[153](index=153&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risks](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risks) The company faces market risks from oil and gas industry activity, interest rate fluctuations on variable-rate debt, and customer concentration, with a 1% interest rate change impacting annual expense by $0.6 million - The company is exposed to interest rate risk on its Credit Facility and Financing Agreement. A hypothetical **1.0%** increase or decrease in the weighted average interest rate would change annual interest expense by approximately **$0.6 million**[177](index=177&type=chunk) - Significant credit risk exists due to customer concentration. As of June 30, 2019, the top three trade receivable balances represented approximately **11%**, **11%**, and **8%** of total accounts receivable[178](index=178&type=chunk) - The company's business is indirectly exposed to commodity price risk, as fluctuations in oil and gas prices affect E&P customer activity levels and demand for its services[179](index=179&type=chunk) [Item 4. Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) As of June 30, 2019, the CEO and CFO concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of June 30, 2019[180](index=180&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended June 30, 2019, that materially affected, or are reasonably likely to materially affect, internal controls[181](index=181&type=chunk) PART II – OTHER INFORMATION [Item 1. Legal Proceedings](index=34&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently subject to any material legal proceedings that would significantly impact its financial position or operations - The company is not currently a party to any **material legal proceedings**[183](index=183&type=chunk) [Item 1A. Risk Factors](index=34&type=section&id=Item%201A.%20Risk%20Factors) No new risk factors are disclosed in this report, referring readers to the Annual Report on Form 10-K for a comprehensive description - The report does not add to or substantively change the risk factors previously disclosed in the company's Annual Report[184](index=184&type=chunk) [Item 2. Unregistered Sales of Securities and Use of Proceeds](index=34&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Securities%20and%20Use%20of%20Proceeds) The company settled a $3.0 million liability by issuing 206,897 Class A Common Stock shares and authorized a $5 million share repurchase program, with no repurchases made this quarter - A **$3.0 million** liability was settled through the issuance of **206,897 shares** of Class A Common Stock in a private placement exempt from registration[185](index=185&type=chunk) - In June 2019, a share repurchase program was approved, authorizing the company to buy back up to **580,000 shares** or **$5 million** in aggregate value. No repurchases were made in the three months ended June 30, 2019[186](index=186&type=chunk)[187](index=187&type=chunk) [Item 6. Exhibits](index=35&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Quarterly Report on Form 10-Q, including CEO/CFO certifications and XBRL data files
Ranger Energy Services(RNGR) - 2019 Q1 - Quarterly Report
2019-05-01 21:04
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, 2019 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 ...
Ranger Energy Services(RNGR) - 2018 Q4 - Annual Report
2019-03-06 22:26
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 For the fiscal year ended December 31, 2018 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) Delaware 81‑5449572 (State or other jurisdiction of incorporat ...