Ranger Energy Services(RNGR) - 2025 Q2 - Quarterly Results

Financial & Operational Highlights Ranger reported increased revenue and net income, strong sequential Adjusted EBITDA growth, robust free cash flow, and introduced the Ranger ECHO electrified rig Q2 2025 Key Financial Metrics | Metric | Q2 2025 (USD) | Q2 2024 (USD) | Q1 2025 (USD) | Change (YoY) (%) | Change (QoQ) (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | $140.6 million | $138.1 million | $135.2 million | +2% | +4% | | Net Income | $7.3 million | $4.7 million | $0.6 million | +55% | +1117% | | Diluted EPS | $0.32 | $0.21 | $0.03 | +52% | +967% | | Adjusted EBITDA | $20.6 million | $21.0 million | $15.5 million | -2% | +33% | | Free Cash Flow | $14.4 million | $6.8 million | N/A | +112% | N/A | - Announced a technological step forward with the next-generation electrified workover rig, Ranger ECHO, designed to enhance operating efficiency and safety[4] - The company utilized $3.3 million to repurchase 278,100 shares during the quarter, ending with $48.9 million in available cash and $120.1 million in total liquidity[4] Management Commentary Management highlighted resilience, record rig hours, Wireline segment rebound, and the new ECHO e-rig launch, while focusing on cost control and strategic investments - The company demonstrated resiliency and consistent financial performance despite macroeconomic headwinds and lower crude prices, attributed to its strong presence in the Permian and relationships with blue-chip operators[3][5] - The High Specification Rigs business achieved record rig hours, and the Wireline segment revenue rebounded 28% quarter-over-quarter, returning to positive EBITDA contribution[6][7] - Announced the launch of the next-generation hybrid e-rig, the ECHO rig, which features battery-powered operations and regenerative braking. Contracts for the first two rigs have been secured with premier customers[7] - Management anticipates continued stability in Q3 but notes that Q4 is unpredictable. The company remains focused on cost control, balance sheet strength, shareholder returns via buybacks, and pursuing accretive M&A[8][9] Capital Returns and Governance Ranger continued its capital return program, repurchasing shares totaling $3.3 million in H1 2025 and $38.1 million since 2023, and declared a $0.06 per share quarterly dividend Share Repurchase Program Activity | Period | Shares Repurchased (Units) | Total Value (USD) | Average Price (USD) | | :--- | :--- | :--- | :--- | | YTD (as of June 30, 2025) | 278,100 | $3.3 million | $12.01 | | Since Inception (2023) | 3,603,900 | $38.1 million | N/A | - The Board of Directors declared a quarterly cash dividend of $0.06 per share, payable on August 22, 2025, to stockholders of record on August 8, 2025[10] Detailed Financial Performance This section details Q2 2025 segment results, highlighting record rig hours for High Specification Rigs, revenue growth in Processing Solutions, and Wireline Services' rebound to profitability - Overall Q2 2025 revenue increased to $140.6 million, up from $138.1 million YoY and $135.2 million QoQ, driven by gains in Wireline and Ancillary services[11] - Adjusted EBITDA increased by $5.8 million quarter-over-quarter to $20.6 million, primarily due to improved revenues and margins across all segments, especially Wireline[13] High Specification Rigs High Specification Rigs revenue grew 4% YoY to $86.3 million, driven by record 117,000 rig hours, with Adjusted EBITDA at $17.6 million High Specification Rigs Performance (Q2 2025) | Metric | Q2 2025 | Q2 2024 | Q1 2025 | | :--- | :--- | :--- | :--- | | Revenue | $86.3 million | $82.7 million | $87.5 million | | Rig Hours | 117,000 hours | 113,100 hours | 115,700 hours | | Hourly Rig Rate | $738/hour | $732/hour | $756/hour | | Operating Income | $12.0 million | $11.8 million | $12.0 million | | Adjusted EBITDA | $17.6 million | $18.7 million | $17.4 million | Processing Solutions and Ancillary Services Processing Solutions and Ancillary Services revenue increased to $32.2 million (4% YoY, 6% QoQ), driven by Coil Tubing and Torrent, with Adjusted EBITDA at $6.6 million Processing & Ancillary Services Performance (Q2 2025) | Metric | Q2 2025 (USD) | Q2 2024 (USD) | Q1 2025 (USD) | | :--- | :--- | :--- | :--- | | Revenue | $32.2 million | $30.9 million | $30.5 million | | Operating Income | $4.5 million | $5.2 million | $3.3 million | | Adjusted EBITDA | $6.6 million | $7.3 million | $5.6 million | Wireline Services Wireline Services revenue rebounded 28% QoQ to $22.1 million, achieving positive Adjusted EBITDA of $1.6 million, driven by a 79% QoQ increase in completed stage counts Wireline Services Performance (Q2 2025) | Metric | Q2 2025 | Q2 2024 | Q1 2025 | | :--- | :--- | :--- | :--- | | Revenue | $22.1 million | $24.5 million | $17.2 million | | Completed Stages | 2,500 stages | 1,700 stages | 1,400 stages | | Operating Loss | ($1.2 million) | ($2.6 million) | ($5.8 million) | | Adjusted EBITDA | $1.6 million | $0.4 million | ($2.3 million) | Balance Sheet and Cash Flow As of June 30, 2025, Ranger maintained strong liquidity of $120.1 million with no borrowings, generating $31.3 million in cash from operations and $17.8 million in free cash flow year-to-date - Total liquidity stood at $120.1 million as of June 30, 2025, comprised of $48.9 million in cash and $71.2 million of capacity on its revolving credit facility. The company had no borrowings under its loan facility[21] Cash Flow and Capital Expenditures (YTD 2025 vs YTD 2024) | Metric | YTD 2025 (USD) | YTD 2024 (USD) | | :--- | :--- | :--- | | Cash from Operating Activities | $31.3 million | $34.1 million | | Capital Expenditures | $13.5 million | $21.8 million | | Free Cash Flow | $17.8 million | $12.3 million | Appendix: Financial Statements This appendix provides detailed unaudited financial statements for June 30, 2025, including Consolidated Statements of Operations, Balance Sheets, Cash Flows, and GAAP to non-GAAP reconciliations Unaudited Condensed Consolidated Statements of Operations This section presents the company's revenues, expenses, and net income for the three and six months ended June 30, 2025, compared to the same periods in 2024 - The full unaudited condensed consolidated statements of operations are provided for detailed financial review[30] Unaudited Condensed Consolidated Balance Sheets This section details the company's assets, liabilities, and stockholders' equity as of June 30, 2025, compared to December 31, 2024 - The full unaudited condensed consolidated balance sheets are provided, showing total assets of $381.7 million as of June 30, 2025[32] Unaudited Condensed Consolidated Statement of Cash Flows This section outlines cash inflows and outflows from operating, investing, and financing activities for the six months ended June 30, 2025 and 2024 - The full unaudited condensed consolidated statement of cash flows is provided for detailed analysis of cash movements[33] Supplemental Non-GAAP Financial Measures This section provides reconciliations of non-GAAP financial measures, including Adjusted EBITDA and Free Cash Flow, to their most directly comparable U.S. GAAP measures - This section includes detailed reconciliations of Net Income to Adjusted EBITDA by business segment and Net Cash Provided by Operating Activities to Free Cash Flow[38][39][41]