Is the Current Crude Oil Price Favorable for Ranger Energy's Business?

Core Insights - The current crude pricing environment, with West Texas Intermediate (WTI) crude trading above $60 per barrel, is favorable for Ranger Energy Services Inc. (RNGR) as its business is positively correlated to oil prices [1][6] Group 1: Market Environment - The cost of production in U.S. shale plays is significantly lower due to low breakeven costs, making the current crude pricing environment favorable for exploration and production operations [2] - Increased demand for Ranger Energy's services, which focus on well maintenance, is expected as customers prioritize production-related activities over exploration and drilling [3] Group 2: Competitive Landscape - Other oilfield service providers like Halliburton Company (HAL) and SLB are also positioned to benefit from favorable upstream business operations, as they assist in efficiently setting up oil and gas wells [4] Group 3: Company Performance - RNGR's shares have increased by 9.5% over the past year, contrasting with a 4.4% decline in the industry [5] - The company trades at a trailing 12-month EV/EBITDA of 3.19X, significantly below the industry average of 7.10X, indicating potential undervaluation [6][8] - The Zacks Consensus Estimate for RNGR's 2025 earnings has remained unchanged over the past week, reflecting stability in earnings expectations [10]