Ranger Energy Services (NYSE:RNGR) FY Conference November 19, 2025 10:55 AM ET Company ParticipantsMelissa Cougle - CFOStuart Bodden - CEOModeratorThe webcast. Sorry.Stuart BoddenAll right. This is going to be a challenge, but okay, we'll try to do it. First of all, thanks for coming. Again, Stuart Bodden, CEO; Melissa Cougle, CFO. We're excited to be here. We announced a transaction last Monday. We're very excited about it. Melissa will go kind of walk through some more details about that. Let me just kind ...

Financial Data and Key Metrics Changes - Ranger reported revenue of $128.9 million for Q3 2025, a decrease of 16% from $153 million in Q3 2024 and down 8% from $140.6 million in Q2 2025 [17][12] - Net income was $1.2 million, or $0.05 per diluted share, compared to $8.7 million, or $0.39 per diluted share in Q3 2024, and $7.3 million, or $0.32 per diluted share in Q2 2025 [17][12] - Adjusted EBITDA for the quarter was $16.8 million, representing a 13% margin [17][12] Business Line Data and Key Metrics Changes - High-spec rig segment generated $80.9 million in revenue, down from $86.7 million in the prior year and $86.3 million in the prior quarter, with adjusted EBITDA of $15.7 million [18][12] - Prospecting Solutions and Ancillary Services delivered $30.8 million in revenue, down from $36 million in the prior year and $32.2 million in the prior quarter, with adjusted EBITDA of $5.5 million [19][12] - Wireline Services reported $17.2 million in revenue, with an operating loss of $4.2 million and adjusted EBITDA of $400,000 [19][12] Market Data and Key Metrics Changes - The company experienced declines in completion-focused areas and in some northern districts due to commodity price pressures leading to activity declines [11][12] - The combination of completion activity declines and reduced plug and abandonment activity due to depressed commodity prices has pressured the ancillary segment [13][12] Company Strategy and Development Direction - The acquisition of American Well Services for approximately $90.5 million is expected to enhance Ranger's position as the largest well servicing provider in the lower 48 and expand its market share in the Permian Basin [4][6] - Ranger anticipates realizing approximately $4 million in annual cost and revenue synergies post-integration [7][16] - The ECHO hybrid electric rig program is positioned as a significant innovation in the workover rig space, with strong customer interest and expected contracts in the coming quarters [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, expecting to generate over $100 million in adjusted EBITDA for the first time in the company's history [14][12] - The company has maintained strong cash flows and has been active in share repurchases, indicating a disciplined capital allocation strategy [22][20] - Management noted that the integration of AWS is already in motion and is expected to be completed efficiently by Q3 2026 [9][24] Other Important Information - Ranger's total liquidity as of September 30, 2025, was $116.7 million, consisting of $71.5 million of capacity on the revolving credit facility and $45.2 million of cash on hand [20][22] - Capital expenditures year-to-date totaled $19.1 million, down from $28.7 million in the prior year period [22] Q&A Session Summary Question: Geographic footprint of AWS - AWS operates exclusively in the Permian Basin [28] Question: Revenue comparison of tubing rentals and inspection - Approximately 55% of AWS's revenue overlaps with Ranger, while 45% consists of unique service lines [29] Question: Status of ECHO rigs - Two ECHO rigs have been delivered, with one expected to begin work on live wells shortly [30] Question: Customer base for American Well Services - AWS has a customer base similar to Ranger's, with some new relationships that could provide growth opportunities [34] Question: Adoption of ECHO rigs - ECHO rigs are currently additive, with expectations that they may eventually replace existing rigs over time [36] Question: Expected number of ECHO rigs built in 2026 - Management indicated an expectation of over 10 ECHO rigs being built in 2026 [38]

Acquisition Highlights - Ranger is acquiring American Well Services (AWS) for approximately $905 million, funded through $605 million in cash and 2 million shares, plus a $5 million earnout[7] - The acquisition is expected to generate ~$4 million in cost synergies, fully realized by 2027[7] - The purchase price represents a multiple of less than 25x AWS's Last Twelve Months (LTM) Q3'25 Adjusted EBITDA[7] Financial Performance & Metrics - AWS's LTM Q3'25 revenue was $186 million with a gross margin of 29%[16] - AWS's LTM Q3'25 Adjusted EBITDA was $43 million, representing a 23% Adjusted EBITDA margin[16] - Ranger's LTM Q3'25 Free Cash Flow was $531 million, with a 71% conversion rate[38] Strategic Benefits - The acquisition strengthens Ranger's position in the Permian Basin, expanding its customer base and service offerings[7, 11] - New service lines from AWS, such as tubing rentals, inspection, chemicals, and mixing plants, provide opportunities for pull-through revenue[7, 11, 22] - The combined company expects to repay borrowings within one year of closing, leveraging cash flows from the pro forma organization[11] - Ranger remains committed to returning a minimum of 25% of cash flows to shareholders[8]

Financial Performance - Revenue increased to $140.6 million in Q2 2025, up from $138.1 million in Q2 2024 and $135.2 million in Q1 2025[8, 10] - Net income rose to $7.3 million in Q2 2025, compared to $4.7 million in Q2 2024 and $0.6 million in Q1 2025[10] - Adjusted EBITDA for Q2 2025 was $20.6 million, with an Adjusted EBITDA Margin of 14.7%[10, 12] - Free Cash Flow generation was $14.4 million in Q2 2025[6, 10] Segment Highlights - High-Specification Rigs segment revenue was $86.3 million in Q2 2025[15] - Processing Solutions & Ancillary Services segment revenue increased to $32.2 million in Q2 2025[20] - Wireline Services segment revenue rebounded to $22.1 million in Q2 2025[25] Capital Returns - The company repurchased 278,100 shares in Q2 2025 for $3.3 million at an average price of $12.01 per share[6] - $4.6 million of Free Cash Flow was returned to shareholders through dividends and repurchases in Q2 2025[6] - Since the program inception, a total of 3,603,900 shares have been repurchased, representing 16% of the company's outstanding shares[6] Liquidity - The company ended Q2 2025 with $120.1 million of liquidity, including $48.9 million of cash on hand[13]