Ranger Energy Services(US:RNGR)2023-05-05 20:44Revenue Growth - Revenue for the three months ended March 31, 2023 increased by $33.9 million, or 27%, to $157.5 million from $123.6 million for the same period in 2022[86]. - High Specification Rig revenue increased by $12.6 million, or 19%, to $77.5 million, with average revenue per rig hour rising 19% to $689[86]. - Wireline Services revenue rose by $11.3 million, or 29%, to $49.9 million, despite a 14% decrease in completed stage counts to 6,400[87]. - Processing Solutions and Ancillary Services revenue increased by $10.0 million, or 50%, to $30.1 million, driven by coil tubing and equipment rentals[88]. Cost and Expenses - Total cost of services increased by $22.9 million, or 21%, to $130.9 million, with cost of services as a percentage of revenue decreasing from 87% to 83%[89][90]. - General and administrative expenses decreased by $1.8 million, or 18%, to $8.4 million, primarily due to reduced accounting and legal expenses[93]. - Depreciation and amortization decreased by $1.6 million, or 14%, to $10.0 million, attributed to assets disposed of in 2022[94]. - Interest expense decreased by $0.9 million, or 43%, to $1.2 million, due to a reduced principal balance on credit facilities[95]. - Income tax expense increased by $3.4 million, or 213%, to $1.8 million, reflecting increased income over two consecutive quarters[96]. Adjusted EBITDA - Adjusted EBITDA for the three months ended March 31, 2023 increased by $10.5 million to $20.1 million from $9.6 million for the same period in 2022[101]. - High Specification Rigs Adjusted EBITDA rose by $3.3 million to $17.4 million, driven by a revenue increase of $12.6 million, partially offset by a $9.3 million rise in cost of services[101]. - Wireline Services Adjusted EBITDA improved by $6.0 million to $4.2 million from a loss of $1.8 million, due to an increase in revenue of $11.3 million, offset by a $5.3 million rise in cost of services[102]. - Processing Solutions and Ancillary Services Adjusted EBITDA increased by $1.7 million to $5.0 million, supported by a revenue increase of $10.0 million, countered by an $8.3 million rise in cost of services[103]. Liquidity and Cash Flow - Total liquidity as of March 31, 2023 was $68.4 million, comprising $14.4 million in cash and $54.0 million available under the Revolving Credit Facility[105]. - Net cash provided by operating activities was $17.4 million for the three months ended March 31, 2023, a $29.5 million increase from cash used of $12.1 million in the same period of 2022[108]. - Working capital increased to $73.1 million as of March 31, 2023, up from $65.6 million as of December 31, 2022, attributed to a higher cash balance and contract assets[112]. - Net cash used in investing activities was $1.1 million for the three months ended March 31, 2023, a decrease of $6.1 million compared to cash provided of $5.0 million in the same period of 2022[109]. - Net cash used in financing activities was $5.6 million for the three months ended March 31, 2023, a decrease of $15.9 million from cash provided of $10.3 million in the same period of 2022[110]. Debt and Financing - The Company maintained compliance with the covenants of its debt agreements as of March 31, 2023[113]. - The total loan capacity under the Revolving Credit Facility was $55.6 million, with $54.0 million available for borrowings as of March 31, 2023[117]. - The weighted average interest rate for the Revolving Credit Facility was approximately 8.9% for the three months ended March 31, 2023[117]. - The Company had outstanding borrowings of $9.8 million under the M&E Term Loan Facility, with a weighted average interest rate of 12.6% for the three months ended March 31, 2023[118]. - The aggregate principal balance outstanding under the Secured Promissory Note was $5.6 million as of March 31, 2023, bearing interest at a rate of 8.5% per annum[120]. Shareholder Returns - The Board of Directors announced a $35.0 million share repurchase program, aiming to return at least 25% of annual cash flows to investors going forward[122]. Market Outlook - The International Energy Agency projects global oil demand to rise by 1.9 million barrels per day in 2023, with U.S. as the leading source of supply growth[75]. - The International Energy Agency projected global oil demand to rise by 1.9 million barrels per day in 2023, with commodity pricing expected to remain around $80 to $85 per barrel[125]. - The Company does not currently hedge its indirect exposure to commodity price risk, which could impact demand for its services[129]. - The geopolitical events, including the situation in Ukraine, continue to affect commodity prices and may impact the Company's earnings and cash flows[126]. Trade Receivables - The top three trade receivable balances represented approximately 12%, 9%, and 7% of consolidated net accounts receivable as of March 31, 2023[128]. - A hypothetical 1.0% increase or decrease in the weighted average interest rate would affect interest expense by less than $0.2 million per year[127].