Ranger Energy Services(RNGR) - 2022 Q3 - Quarterly Report

Revenue Growth - Total revenues for the three months ended September 30, 2022, increased by $95.3 million, or 117%, to $177.0 million from $81.7 million for the same period in 2021[110] - Revenues for the nine months ended September 30, 2022 increased by $284.2 million, or 167%, to $454.2 million from $170.0 million for the same period in 2021[122] - High Specification Rig revenue increased by $49.8 million, or 167%, to $79.7 million, with total rig hours rising by 140% to 123,000[110] - High Specification Rig revenue increased by $140.0 million, or 174%, to $220.6 million, with total rig hours rising by 143% to 355,400[122] - Wireline Services revenue rose by $15.2 million, or 33%, to $60.6 million, despite a 19% decrease in completed stage counts to 9,200[111] - Wireline Services revenue rose by $75.6 million, or 103%, to $148.7 million, driven by a 43% increase in completed stage counts to 24,600[123] - Processing Solutions and Ancillary Services revenue surged by $30.3 million, or 473%, to $36.7 million, with $20.3 million attributable to the Basic Acquisition[112][113] - Processing Solutions and Ancillary Services revenue surged by $68.6 million, or 421%, to $84.9 million, with $44.9 million attributed to the Basic Acquisition[124] Income and Profitability - Operating income for the three months ended September 30, 2022, was $18.0 million, compared to an operating loss of $8.1 million for the same period in 2021[110] - Net income for the three months ended September 30, 2022, was $13.6 million, a significant increase from a net loss of $9.1 million in the prior year[110] - Net income for the three months ended September 30, 2022, was $10.7 million, compared to a net income of $0.7 million for the same period in 2021, representing a significant increase[135] - For the nine months ended September 30, 2022, net income was $24.5 million, a substantial improvement from a net loss of $1.1 million in the same period of 2021[141] - Net income for the nine months ended September 30, 2022, was $3 million, a significant increase from a loss of $17.7 million in the same period of 2021[142] Costs and Expenses - Cost of services (exclusive of depreciation and amortization) increased by $64.1 million, or 87%, to $138.1 million, with cost of services as a percentage of revenue decreasing to 78% from 91%[114] - Total cost of services for the nine months ended September 30, 2022 increased by $223.9 million, or 147%, to $376.1 million, with a cost of services percentage of 83%[126] - General and administrative expenses increased by $15.7 million, or 94%, to $32.4 million, primarily due to corporate employee costs and professional fees related to the Basic Acquisition[129] - Wireline Services cost of services increased by $64.4 million, or 91%, to $134.8 million, largely due to the acquisition of Patriot and PerfX[127] - Processing Solutions and Ancillary Services cost of services rose by $52.3 million, or 382%, to $66.0 million, with significant increases in employee costs and maintenance[128] Adjusted EBITDA - Adjusted EBITDA for High Specification Rigs increased by $12.2 million to $17.0 million, driven by a revenue increase of $49.8 million[136] - Wireline Services Adjusted EBITDA rose by $10.0 million to $11.4 million, primarily due to increased revenues of $15.2 million[137] - Processing Solutions and Ancillary Services Adjusted EBITDA increased by $9.0 million to $10.5 million, supported by revenue growth of $30.3 million[138] - Adjusted EBITDA for High Specification Rigs increased by $32.8 million to $45.3 million, driven by a revenue increase of $140 million[142] - Wireline Services Adjusted EBITDA rose by $11.2 million to $13.9 million, primarily due to a revenue increase of $75.6 million[143] - Processing Solutions and Ancillary Services Adjusted EBITDA increased by $16.3 million to $18.9 million, with revenues up by $68.6 million[144] - Total Adjusted EBITDA for the nine months ended September 30, 2022, was $45.3 million, compared to $12.5 million for the same period in 2021[141] Liquidity and Capital Structure - Total liquidity as of September 30, 2022, was $35.7 million, consisting of $5.2 million in cash and $30.5 million available under the Revolving Credit Facility[146] - Working capital increased to $54 million as of September 30, 2022, compared to $2.5 million as of December 31, 2021, due to higher accounts receivable and contract assets[153] - Net cash provided by operating activities decreased by $4.9 million to $18.5 million for the nine months ended September 30, 2022[149] - Net cash from investing activities increased by $18.4 million to $12.5 million, attributed to significant asset sales[150] - The Company retired $25.3 million in debt and financing liabilities during the nine months ended September 30, 2022[151] - The weighted average interest rate for borrowings under the Revolving Credit Facility was approximately 5.9% for the nine months ended September 30, 2022[158] - As of September 30, 2022, the Company had $24.9 million outstanding under its Revolving Credit Facility with a weighted average interest rate of 5.9%[181] - The aggregate principal balance outstanding under the M&E Term Loan was $11.0 million with a weighted average interest rate of 9.0%[181] Market Conditions and Risks - The ongoing conflict in Ukraine has resulted in higher oil prices, impacting commodity prices and creating uncertainty in the market[99] - The company expects continued global market volatility due to factors such as inflation and the potential for recession, which may affect operational performance[96] - The Company is exposed to risks from heightened inflation and potential recession, impacting its financial condition[180] - The Company does not currently intend to hedge its indirect exposure to commodity price risk, which could affect demand for its services[183] Company Classification - The Company is classified as an "emerging growth company" and will lose this status on December 31, 2022[171] - The Company is also a "smaller reporting company" with a market value of common stock held by non-affiliates of less than $250 million[172] Other Financial Information - The Company reported a loss of $8.6 million in the "Other" category for the three months ended September 30, 2022, compared to a loss of $4.4 million in the same period of 2021[139] - The increase in costs of services across segments was noted, with High Specification Rigs seeing a rise of $37.6 million, Wireline Services by $5.2 million, and Processing Solutions by $21.3 million[136][137][138] - The top three trade receivable balances represented approximately 15%, 11%, and 8% of consolidated net accounts receivable as of September 30, 2022[182] - In the High Specification Rig segment, the top three trade receivable balances represented 20%, 19%, and 14% of total net accounts receivable[182] - The Company has no material off-balance sheet arrangements as of the reporting date[170]