Ranger Energy Services(US:RNGR)2025-11-10 22:06Revenue Performance - Revenue for Q3 2025 decreased by $24.1 million, or 16%, to $128.9 million compared to $153.0 million in Q3 2024[105] - High Specification Rigs revenue decreased by $5.8 million, or 7%, to $80.9 million, with average revenue per rig hour decreasing 2% to $727[105] - Wireline Services revenue fell by $13.1 million, or 43%, to $17.2 million, driven by a 28% decrease in completed stage counts to 1,800[106] - Processing Solutions and Ancillary Services revenue decreased by $5.2 million, or 14%, to $30.8 million, with notable declines in coil tubing and snubbing services[107] - Revenue for the nine months ended September 30, 2025, decreased by $23.3 million, or 5%, to $404.7 million from $428.0 million for the same period in 2024[118] - High Specification Rig revenue increased by $5.6 million, or 2%, to $254.7 million for the nine months ended September 30, 2025, driven by a 1% increase in average revenue per rig hour[118] - Wireline Services revenue decreased by $31.1 million, or 36%, to $56.5 million for the nine months ended September 30, 2025, attributed to a 25% decrease in completed stage counts[119] Cost of Services - Total cost of services decreased by $12.9 million, or 11%, to $109.1 million, with cost of services as a percentage of revenue at 85%[109] - High Specification Rigs cost of services decreased by $2.0 million, or 3%, to $65.2 million, with costs as a percentage of revenue increasing to 81%[109] - Wireline Services cost of services decreased by $9.0 million, or 33%, to $18.6 million, with costs as a percentage of revenue rising to 108%[110] - Processing Solutions and Ancillary Services cost of services decreased by $1.9 million, or 7%, to $25.3 million, with costs as a percentage of revenue increasing to 82%[111] - Cost of services for the nine months ended September 30, 2025, decreased by $16.5 million, or 5%, to $339.5 million from $356.0 million for the same period in 2024[122] Net Income and Expenses - Net income for the three months ended September 30, 2025, decreased by $7.5 million, or 86%, to $1.2 million from $8.7 million for the same period in 2024, primarily due to reduced operating income in the Wireline segment[115] - Net income for the nine months ended September 30, 2025, decreased by $3.5 million, or 28%, to $9.1 million from $12.6 million for the same period in 2024, primarily due to reduced operating income in the Wireline segment[128] - General and administrative expenses decreased by $0.5 million, or 7%, to $6.6 million for the three months ended September 30, 2025, compared to $7.1 million for the same period in 2024[112] - Net interest expense decreased by $1.1 million, or 52%, to $1.0 million for the nine months ended September 30, 2025, due to higher interest income recognized on non-recurring items[126] - Income tax expense for the nine months ended September 30, 2025, decreased by $1.0 million, or 20%, to $4.0 million from $5.0 million for the same period in 2024[127] EBITDA Metrics - Adjusted EBITDA for the three months ended September 30, 2025, decreased by $8.3 million to $16.8 million from $25.1 million for the same period in 2024[134] - High Specification Rigs Adjusted EBITDA for the three months ended September 30, 2025, decreased by $3.5 million to $15.7 million, driven by a revenue decline of $5.8 million[134] - Wireline Services Adjusted EBITDA for the three months ended September 30, 2025, decreased by $2.3 million to $0.4 million, due to a revenue decline of $13.1 million[135] - Processing Solutions and Ancillary Services Adjusted EBITDA for the three months ended September 30, 2025, decreased by $3.3 million to $5.5 million, attributed to a revenue decline of $5.2 million[136] - Nine months Adjusted EBITDA for 2025 was $50.7 million, compared to $51.5 million for the same period in 2024[139] - Adjusted EBITDA for the nine months ended September 30, 2025, decreased by $4.1 million to $52.9 million from $57.0 million for the same period in 2024[140] Liquidity and Capital Management - Total liquidity as of September 30, 2025, was $116.7 million, consisting of $45.2 million in cash and $71.5 million available under the Wells Fargo Revolving Credit Facility[144] - Net cash provided by operating activities decreased by $6.9 million to $44.9 million for the nine months ended September 30, 2025[145] - Net cash used in investing activities decreased by $9.7 million to $17.5 million, largely due to decreases in fixed asset additions[147] - The company repurchased 945,600 shares of Class A Common Stock for a total of $11.6 million during the nine months ended September 30, 2025[156] - The quarterly dividend was increased to $0.06 per share in 2025, with total dividend distributions of $4.1 million for the nine months ended September 30, 2025[157] - The company had a working capital increase to $87.5 million as of September 30, 2025, compared to $78.7 million as of December 31, 2024[150] - As of September 30, 2025, the Company had no borrowings under the Wells Fargo Revolving Credit Facility, resulting in a potential interest expense change of less than $0.1 million per year for a 1.0% interest rate fluctuation[163] Trade Receivables - The top three trade receivable balances represented approximately 33%, 20%, and 7% of consolidated net accounts receivable as of September 30, 2025[164] - In the High Specification Rig segment, the top three trade receivable balances accounted for 44%, 20%, and 9% of total net accounts receivable[164] - In the Wireline Services segment, the top three trade receivable balances represented 29%, 16%, and 9% of total net accounts receivable[164] - In the Processing Solutions and Ancillary Services segment, the top three trade receivable balances accounted for 22%, 21%, and 16% of total net accounts receivable[164] Market Outlook - The Energy Information Administration forecasts crude prices to fall to approximately $62 per barrel in Q4 2025 and further to $52 per barrel in 2026[92] - OPEC+ is expected to increase production by 137,000 barrels per day starting November 2025, contributing to downward price pressure[92] - The Company does not currently hedge its indirect exposure to commodity price risk, which may affect demand for services due to fluctuations in oil and natural gas prices[165]