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

PART I – FINANCIAL INFORMATION Item 1. Financial Statements (Unaudited) The unaudited financial statements present Q2 2025 revenue and net income, with six-month cash flow and balance sheet highlights Condensed Consolidated Balance Sheets The balance sheet shows $381.7 million in total assets and $276.9 million in stockholders' equity as of June 30, 2025 Condensed Consolidated Balance Sheet (Unaudited) | | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total current assets | $151.6 million | $141.6 million | | Total assets | $381.7 million | $382.0 million | | Total current liabilities | $61.3 million | $62.9 million | | Total liabilities | $104.8 million | $108.2 million | | Total stockholders' equity | $276.9 million | $273.8 million | Condensed Consolidated Statements of Operations Q2 2025 revenue increased to $140.6 million with net income of $7.3 million, and six-month net income more than doubled year-over-year Financial Performance Summary (in millions, except per share data) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $140.6 | $138.1 | $275.8 | $275.0 | | Operating Income | $8.6 | $7.3 | $9.6 | $6.8 | | Net Income | $7.3 | $4.7 | $7.9 | $3.9 | | Diluted EPS | $0.32 | $0.21 | $0.35 | $0.17 | Condensed Consolidated Statements of Stockholders' Equity Stockholders' equity increased to $276.9 million driven by net income, partially offset by share repurchases and dividends - For the six months ended June 30, 2025, the company repurchased $3.3 million of Class A Common Stock and paid $2.8 million in dividends[15] Condensed Consolidated Statements of Cash Flows Six-month cash flow shows $31.3 million from operations, with $11.6 million used in investing and $11.7 million in financing activities Six Months Ended June 30, 2025 Cash Flow Summary (in millions) | Cash Flow Category | Amount | | :--- | :--- | | Net cash provided by operating activities | $31.3 | | Net cash used in investing activities | $(11.6) | | Net cash used in financing activities | $(11.7) | | Increase in cash and cash equivalents | $8.0 | | Cash and cash equivalents, End of Period | $48.9 | Notes to Condensed Consolidated Financial Statements Notes detail segment operations, debt facilities with no borrowings, an $85 million share repurchase program, and significant customer concentration - The company operates in three reportable segments: High Specification Rigs, Wireline Services, and Processing Solutions and Ancillary Services[19][23] - As of June 30, 2025, the company had no borrowings under its $75.0 million Wells Fargo Revolving Credit Facility, with $71.2 million available[45] - The company has an $85.0 million share repurchase program, with $47.1 million remaining as of June 30, 2025. It also increased its quarterly dividend to $0.06 per share in 2025[56][57][58] - For the six months ended June 30, 2025, four customers accounted for approximately 28%, 13%, 11%, and 10% of consolidated revenues, indicating significant customer concentration[59] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses consistent performance, Q2 2025 revenue growth, strong liquidity, and capital return programs, despite Wireline segment weakness Business Outlook The business outlook highlights consistent performance, Wireline segment weakness, benefits from E&P consolidation, and monitoring of crude oil prices - The Wireline segment continues to face weakness in demand due to declining completions activity and increased competition[83] - The company has so far benefited from E&P operator consolidation and expects favorable preference from larger organizations over the long term[84] - Management is monitoring potential activity reductions if crude pricing falls below $60 per barrel, but notes the business is supported by its production-oriented service lines[86] Results of Operations Q2 2025 revenue increased 2% to $140.6 million, with net income up 55%, and six-month Adjusted EBITDA growing to $36.1 million Q2 2025 vs Q2 2024 Performance (in millions) | Metric | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $140.6 | $138.1 | $2.5 | 2% | | Operating Income | $8.6 | $7.3 | $1.3 | 18% | | Net Income | $7.3 | $4.7 | $2.6 | 55% | Six Months 2025 vs Six Months 2024 Performance (in millions) | Metric | H1 2025 | H1 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $275.8 | $275.0 | $0.8 | 0% | | Operating Income | $9.6 | $6.8 | $2.8 | 41% | | Net Income | $7.9 | $3.9 | $4.0 | 103% | Adjusted EBITDA by Segment - Six Months Ended June 30 (in millions) | Segment | 2025 | 2024 | | :--- | :--- | :--- | | High Specification Rigs | $35.0 | $32.3 | | Wireline Services | $(0.7) | $0.6 | | Processing Solutions and Ancillary Services | $12.2 | $9.8 | | Total Adjusted EBITDA | $36.1 | $31.9 | Liquidity and Capital Resources Total liquidity reached $120.1 million as of June 30, 2025, supported by $31.3 million cash from operations and a capital returns program - Total liquidity was $120.1 million as of June 30, 2025, consisting of $48.9 million in cash and $71.2 million in borrowing availability[137] Cash Flow Summary - Six Months Ended June 30 (in millions) | | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $31.3 | $34.1 | | Net cash used in investing activities | $(11.6) | $(20.3) | | Net cash used in financing activities | $(11.7) | $(20.8) | - The company's capital returns program includes an $85.0 million share repurchase authorization ($47.1 million remaining) and a quarterly dividend of $0.06 per share[149][150] Item 3. Quantitative and Qualitative Disclosures About Market Risks The company faces market risks from commodity price volatility and significant customer credit concentration, with minimal interest rate exposure - The company's business is indirectly exposed to oil and natural gas price volatility, which impacts customer activity levels[158] - Interest rate risk is currently low, as the company had no outstanding borrowings under its variable-rate Wells Fargo Revolving Credit Facility as of June 30, 2025[156] - The company faces significant credit risk, with its top three customers accounting for 52% of consolidated net accounts receivable as of June 30, 2025[157] Item 4. Controls and Procedures Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[161] - No changes were identified during the quarter ended June 30, 2025, that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[162] PART II – OTHER INFORMATION Item 1. Legal Proceedings The company is not currently subject to any material litigation, and existing legal matters are not expected to have a material adverse effect - The company is not currently subject to any material litigation, and the outcome of any existing matters is not expected to have a material adverse effect on its financial condition[163] Item 1A. Risk Factors No material changes to risk factors were reported since the Annual Report on Form 10-K, to which stakeholders are referred - Factors that could materially affect the business are described under 'Risk Factors' in the company's Annual Report[164] Item 2. Unregistered Sales of Securities and Use of Proceeds The company repurchased 278,100 shares for $3.3 million in Q2 2025, with $47.1 million remaining under its $85.0 million repurchase program Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Shares Repurchased | Average Price Paid Per Share | | :--- | :--- | :--- | | April 2025 | — | $— | | May 2025 | 20,600 | $11.62 | | June 2025 | 257,500 | $12.04 | | Total | 278,100 | $12.01 | - The company's total share repurchase program authorization is $85.0 million, with $47.1 million remaining available as of June 30, 2025[165][167] Item 5. Other Information No directors or executive officers adopted or terminated Rule 10b5-1 trading arrangements during the second quarter of 2025 - No directors or executive officers adopted or terminated a Rule 10b5-1 trading arrangement during the second quarter of 2025[168] Item 6. Exhibits This section lists exhibits filed with the Quarterly Report, including CEO and CFO certifications and iXBRL data files - The exhibits filed with the Form 10-Q include certifications from the CEO and CFO as required by the Sarbanes-Oxley Act of 2002[171]