Ranger Energy Services(RNGR) - 2025 Q1 - Quarterly Results

Q1 2025 Results Announcement Ranger Energy Services, Inc. announced its financial results for the first quarter ended March 31, 2025, on April 29, 2025 Company Announcement 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] Executive Summary & Management Commentary 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 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 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] - High Specification Rigs business achieved record revenue with strong operating hours and rates, demonstrating market share gains and resiliency despite weather impacts[6] - Wireline business experienced the largest negative impact from weather, posting EBITDA losses for the quarter, though March results improved to breakeven[8] - The company is positioned as a production services company, differentiating itself in the oilfield services sector[5] - 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] - Ranger is committed to creating long-term shareholder value through potential M&A activity or share repurchases[10] Capital Returns and Governance Update 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] - A cash dividend of $0.06 per share was declared, payable on May 23, 2025[11] - Since inception in 2023 through Q1 2025, the company repurchased a total of 3,325,800 shares for $34.8 million[11] Financial Performance Overview This section details the company's consolidated financial performance and segment-specific results, including revenue, operating income, and Adjusted EBITDA trends Overall Performance Summary 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] - Year-over-year Adjusted EBITDA increase was driven by stronger revenue and margins in High-Specification Rigs and Processing Solutions and Ancillary Services[14] Business Segment Financial Results 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 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] Processing Solutions and Ancillary Services 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] - Quarter-over-quarter revenue decrease was largely due to decreased operational activity in P&A and Coil Tubing service lines[17] Wireline Services 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][12] Financial Position & Cash Flow 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 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] - Investments in capital expenditures are focused on modern technological assets to improve safety, marketability, and margins of the rig fleet[22] Non-GAAP Financial Measures 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 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] - These non-GAAP measures should not be considered more important than or as a substitute for comparable U.S. GAAP measures[34] Adjusted EBITDA 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] - It is considered a useful performance measure for evaluating operating performance compared to peers, independent of financing methods or capital structure[35] 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 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] - It is an important measure for evaluating the ability to generate additional cash from business operations[39] - 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] 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 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 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] - Dial-in and webcast details are provided for participation[23] About Ranger Energy Services, Inc. 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] - Services cover the entire well lifecycle, including completion, production, maintenance, intervention, workover, and abandonment phases[24] Cautionary Statement Concerning Forward-Looking Statements 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] - These statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially[25] - Readers are directed to the company's SEC filings, including the Annual Report on Form 10-K, for detailed risk factors[26] Company Contact 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] Unaudited Condensed Consolidated Financial Statements This section presents the unaudited condensed consolidated statements of operations, balance sheets, and cash flows for the relevant reporting periods Statements of Operations 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 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 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 |